BILL MOYERS: You wrote a column with the headline, "Obama's false friends of health reform." You use as a prime example a man named Ron Williams, who is at the top of the list of insurance executives in terms of their compensation. We actually saw Ron Williams at President Obama's Town Hall meeting .
RON WILLIAMS: I would commend the president for the commitment he's made to really try to get and keep everyone covered. And I think as a health insurance company we are committed to that.
BILL MOYERS: Who is Ron Williams, and why do you use him as the example of what Wall Street expects and wants from the insurance companies?
WENDELL POTTER: He has, apparently, had a seat at the table of health care discussion. He was recruited by Aetna from WellPoint. Aetna had gone on a buying binge. There's been an enormous amount of consolidation in the health insurance industry over the last several years. Aetna bought a lot of competitors.
It reached 21 million members. And, but what it realized and what investors began to see is that a lot of the businesses that it had bought were not all that profitable. So they were in Aetna was in a pickle. And they saw their stock price starting to plummet. So they brought-- among the things they did was bring Ron Williams in. And Williams, among the first thing he did was order a revamp of the IT system, so that--
BILL MOYERS: The information technology system--
WENDELL POTTER: Exactly, so that the company could determine more about which accounts were not profitable or margining profitable. So with that new system, he was able, and the other executives to identify the accounts that they wanted to get rid of. And over the course of a very few years, they shed eight million members.
BILL MOYERS: Eight million policy holders?
WENDELL POTTER: Eight million people, men, women, and children, yes.
Some of them were shed by intention. Some, I'm sure, probably walked because the-- or left for whatever other reason, but they intentionally had this program to purge these accounts. Eight million fewer people were enrolled in Aetna's plans. Many of them undoubtedly joined the ranks of the uninsured, because their employers had been purged. |
