Health Care and HMO's

Dear Friend:

During the past four years, health care premiums have increased by 60 percent. During this time, approximately 15% of small businesses have cut back on health insurance for their employees. Two weeks ago, a report was issued which stated that, excluding Medicare and Medicaid recipients, over 40% of America’s population did not have health coverage at one time or another during the past year.

And what is Governor Pawlenty’s response to this issue? His centerpiece issue during last year’s legislative session was casinos. The centerpiece issue of the current legislative session is sports stadiums. The Governor has turned a blind eye to the health care issue, just as he has to education, transportation, the environment, and jobs.

Last week, I issued the results of a twelve month study of Blue Cross Blue Shield of Minnesota (BCBSM). This study determined that the insurer had a net worth six times higher than required by statute--the highest ratio in the country. This study noted that BCBSM spent hundreds of millions in exotic expenditures unrelated to policy holder’s health care (the statutory mission of the company), including the establishment of a Utah bank, the construction of a North Dakota hospital (it does not issue policies in either Utah or North Dakota), almost $100 million to a “disease management firm,” and contributions to the Children’s Theater and the Olympics. We also found more than $200 million per year spent on consulting contracts, many of which could not be verified. During this time, the Governor’s insurance regulator turned a blind eye to these activities and approved almost every rate increase sought by BCBSM.

Two weeks ago, it was reported that the board of directors of UnitedHealth Group (UHG), another HMO, gave themselves hundreds of millions of dollars in stock options and gave billions of dollars in stock options to UHG executives. When pension funds like CALPERS (and myself) urged a “No” vote on the reelection of the UHG Board, the Governor again turned a blind eye, stating that he could not vote because he accepted political contributions from the directors.

Over the last two years, we have also issued reports on HealthPartners and Medica, both of which reported that the companies were awash in money, were unrestrained in their spending and were unaccountable to their policyholders.

And, we have been active in the last month in opposing Senate File 1955, sponsored by U.S. Senator Michael Enzi of Wyoming. SF 1955, which may come before the full U.S. Senate for a vote as early as next week, would preempt important state oversight of health insurance rates and benefits. ( Click here to read an article about the bill .)

I hope you will take a moment to e-mail Senators Susan Collins (R - ME), Lincoln Chafee (R - RI ), Linda Murkowski (R - AK ), Robert Byrd (D - WV ), Ken Salazar (D - CO), Tom Carper (R - DE ) Mary Landrieu (D - LA), Thad Cochran (R - MS ), Trent Lott (R - MS ), Tom Coburn (R - OK), and James Inhofe (R - OK ), along with Minnesota Senator Norm Coleman to express concern about Senate File 1955. To contact these members, visit the U.S. Senate online at www.senate.gov. On the Senate homepage, click on Senators in the red menu bar and you will be directed to a web page that provides a listing of each Senate member and their contact information including email and phone numbers.

In order to beat Governor Pawlenty in this election, I need your financial help, and I need it now. It will be a long, exhausting campaign. I ask that you consider making an online contribution today so that we can move this state forward on health care and so many other issues.

Very truly yours,
Mike Hatch

P.S. Contributions of up to $100 per couple or $50 per person is fully refundable by the state if you haven't contributed yet this year. Please make an online contribution today and help take this state back. Donate today!