On Tuesday, a drama will unfold in Washington that will be unlike anything we've seen in the first year of the Obama administration.
I will join dozens of leaders of unions and other public interest organizations and thousands of others to protest the major lobby that is blocking real health care reform in Congress. We will hold a rally and then march to a Washington hotel where America's Health Insurance Plans (AHIP), which represents all the corporate heavies in the health industry, will be plotting their next steps.
The demonstration is being organized by Health Care for America NOW!, a national grassroots campaign for quality, affordable health care. This coalition asked the directors of about 100 groups to risk arrest at the event. I will be joined by Institute for Policy Studies board member Barbara Ehrenreich, AFL-CIO President Richard Trumka, and other allied group leaders.
That dozens of leaders would risk arrest in confronting the corporations that stand squarely in the way of fundamental change represents a new moment for our social movements. There is a growing realization that giant health care, fossil fuel and financial firms will stop at nothing to block fundamental change. In this case, the leaders of the giant health insurance companies have joined with CEOs of the largest pharmaceutical firms to buy the votes in Congress to block fundamental health care reform.
Hence, we must up the ante if we are to create the change this country so desperately needs.
One thing that must change is the executive pay system. Chief executives of the top five health insurance companies raked in a combined total of more than $113 million in 2007 and 2008, according to executive pay experts at my organization, the Institute for Policy Studies. All five of these firms — WellPoint, UnitedHealth Group, Cigna, Aetna, and Humana — are represented on the board of directors of the AHIP lobby group.
The highest-paid health insurance exec was Ronald Williams of Aetna, who made $35.6 million over the past two years. It would take an American worker with average pay more than 1,000 years to make that much.
Soon to be released pay data for 2009 are likely to show continued executive excess, since these firms maintained high profit levels last year, while at the same time ordinary Americans were reeling from rising health care costs and soaring unemployment.
We know now that the out of control executive pay system was a cause of the financial crisis. But it's not just in the high finance world that outrageously high rewards encourage executives to take actions that put the rest of us at risk. The greater the potential reward, the greater the temptation to grab that reward by any means necessary. In the health insurance industry, that has meant denying coverage to people with health problems that might cut too much into the corporate bottom line.
A health crisis for the rest of us just means a bigger paycheck for the executives.
Throughout the economy, executives seeking massive personal rewards behave in ways that are bad for the economy in the long term — reckless investing, shortchanging worker training and slashing R&D, hammering consumers, or, should all else fail, simply cooking the books.
UnitedHealth Group, the nation's largest health insurance company, was nabbed a few years ago for backdating stock options in order to jack up payouts for top executives. The firm had to oust their CEO and pay $895 million to settle a class action lawsuit over the scandal — just one example of the kind of risks executives are willing to take in order to line their own pockets.
And, these firms have reaped enough profits from an increasingly unhealthy America that in addition to outrageous CEO pay, they have plenty left over to block most meaningful change in the “best Congress that money can buy.”
The stakes are undeniably high: Just listen to the stories of people in your own communities who were denied coverage by their insurers. Just as the Biblical David faced down Goliath, one hundred of us are willing to go to jail tomorrow if it will send a clear message to the CEOs of our nation's health insurance plans: They cannot grow rich while the rest of us grow sick and tired.
President Obama's announcement yesterday began the final chapter in the 14-month war over health care reform. The decisive battle will obviously take place on the floor of Congress. But the most symbolically powerful battle may take place next week some miles from the Capitol, at the Ritz Carlton Hotel on the edge of Washington's tony Georgetown neighborhood.
That's where executives from America's health care industry will gather under the banner of AHIP (America's Health Insurance Plans) to plot – and then execute – a last-ditch attempt to defeat health insurance reform.
That's also where, on Tuesday, March 9th, thousands of demonstrators from Health Care for America Now (HCAN) and allied groups will mass to confront the insurance executives – and their attempts to effectively deny quality health care to millions of Americans.
The term “battle” is entirely appropriate. The insurance executives who run America's health insurance companies are, in fact, waging war on the American public. Their goal is the continued domination of the American health care system. They want to be able to continue to raise their rates more than three times faster than wages – and twice as fast as the underlying cost of health care – so they can continue to gorge themselves with record profits. They want to continue to siphon off the healthiest, wealthiest customers and deny access to insurance for anyone with a “pre-existing condition” or illness.
Just like all wars, their war on the American family costs tens of thousands of lives and untold suffering. Each year, the lack of health insurance costs 45,000 lives. In other words, each year we lose 80% as many Americas to insurance industry greed as died in the entire Vietnam War.
What's worse, these insurance executives don't get a first-hand look at the suffering and death that results from their policies, or their attempts to block reform. They manage their war from pristine office towers. They don't have to look into the eyes of a husband whose wife has just died of cancer that could have been cured if it were caught early – but went undetected because for financial reasons she had no insurance and kept putting off a routine check up.
They don't have to face the family who lost their home — and everything else — to bankruptcy because an uninsured medical emergency wiped out the fruits of decades of hard work.
They don't have to explain themselves to the millions of Americas who worry they are just one pink slip away from losing their insurance coverage and know that a spouse's history of cancer or heart disease or diabetes will prevent them from ever getting insurance again.
On next Tuesday, thousands of those Americans will demand to confront those executives in the lovely halls and conference rooms of the Ritz.
Like the mythical mobster Tony Soprano, the kids of these insurance executives think their parents have respectable jobs. In fact, just like Tony Soprano, they traffic in lives and suffering in order to make more and more money for themselves.
Time to rip off the patina of respectability.
Take people like Ed Hanway, the former CIGNA CEO who retired at the end of last year with a $73 million golden parachute – money he earned by denying coverage to people like Nataline Sarkisian. Nataline died in 2007, just before Christmas. She was 17. She died because CIGNA wouldn't pay for Nataline's liver transplant – even though she had health insurance.
The average transplant operation and hospital stay costs about $250,000. Ed Hanway's $73 million golden parachute would have bought 292 liver transplants. Nataline only needed one.
Or people like Wellpoint's CEO Angela Braly – who last year took down almost $10 million in compensation. Wellpoint's Anthem Blue Cross division just announced a 39% premium increase; it says it needs more money to meet its expenses – like Angela's $10 million salary. And by the way, Wellpoint's profits for the fourth quarter of 2009 skyrocketed to $2.7 billion – accomplished by actually providing health insurance to 185,000 fewer policy holders.
Or people like AHIP chief lobbyist, Karen Ignagni, who once worked to promote health care for average people at the AFL-CIO. She took her thirty pieces of silver and switched sides.
These people are coming to Washington to use their enormous economic power to prevent their fellow Americans from having secure, affordable health care. They cannot be allowed to succeed.
In fact, they should be greeted with the same enthusiasm with which we would greet the forces of an invading army. They should be met at National Airport and Union Station with signs declaring they are unwelcome in the nation's capital.
HCAN has sent letters asking the dozen speakers listed on their agenda to cancel their appearances. HCAN has demanded that these academics and consultants stop giving aid and comfort to the enemy – stop giving them the cover of respectability.
These insurance executives are not here to negotiate. They are not here to shape legislation. They are here to stop health care reform dead in its tracks. They will not be “convinced” to allow health care reform to pass the Congress. They must be defeated.
Robert Creamer is a long-time political organizer and strategist, and author of the recent book: “Stand Up Straight: How Progressives Can Win,” available on Amazon.com.
