Arnold - The HMO Tax

The HMO Tax
by Jerry Flanagan
 
Governor Schwarzenegger's budget plan will force 816,000 seniors, disabled Californians and their family members currently enrolled in the state's Medi-Cal program into HMOs. Forget for the moment that we shouldn't be leaving seniors and the disabled in the hands of HMOs; this plan is a budgetary disaster that will cost California more money than it saves.

First of all, the budgeted cost to privatize Medi-Cal -- which serves the state's most vulnerable populations -- is $200 million over the next three years, while the projected 2008-09 "savings" is only $170 million, for a net loss of $30 million.

But that's not the worst of it. Everybody knows, HMOs will stop at nothing to make a profit: they limit access to specialized care, limit which hospitals and physicians a patient can visit, and override physician recommendations. While these limitations are onerous for any patient, such restrictions on the ill and disabled could significantly undermine their health and quality of life. That means less healthy, more expensive patients -- and guess who picks up the tab for them. These public health burdens will cost even more in the long run when Arnold punts patients to the profiteers.

In addition to the extra costs of HMO-izing Medi-Cal, taxpayers will get less bang for their buck. That's because HMOs providing Medi-Cal coverage will be allowed to spend up to 15% of every taxpayer dollar they collect on overhead, administration, advertising, executive salaries and profit. In comparison, overhead costs for the Medi-Cal program are a fraction of the private market.

HMOs have been waiting for years for the governor to hand over this lucrative state contract. That's why they've contributed $396,800 to Arnold. And Arnold has returned the favor by privatizing Medi-Cal and prescribing a new HMO tax -- that's bad medicine for California.

Read more at: http://ArnoldWatch.org

I don't live in Ca, but would love to if I could afford it! Have the people of Ca finally recognized it was a mistake to elect this nut? I have to admit, some of the things he's said during his short time as Gov. sounded good, but he also comes up with some of the dumbest and Shrub like ideas that I've ever heard of!

California's biggest problem: How do we build a ladder tall enough to reach Schwarzenegger's ego? Then maybe we can reach him and ask why the people who do not have lobbyists get the most drastic budget cuts.

Louis D. Mann

Los Angeles

but I can't believe that many people don't read newspapers.

TV gives him a free ride here.

i live here too (definitely did NOT vote for the gropenator!), but have seen the mentality of the folks who voted for him and it's not pretty. :-(

Schwarzenegger is not popular among the politically savy electorate. Liberals swear he's a conservative based on his rhetoric. Conservatives know he's a liberal based on his actions. Only diehard Republican Party loyalists and disperate collection of business interests support Schwarzenegger among the savy set.

So who's in the bottom of Aaaanoold's bag. The rank and file political dummy. They work, they go to the movies and they believe in God. Beyond that they're fed up with the rumors of excess spending, increasing taxes and fees, the flood of illegal immigrants, the perception of poorer and poorer public education and the politcal polarization in Sacramento.

If the Democrats realized that they could wipe out Schwarzenegger in a general election with the help of conservative Republicans by nominating a conservative Democrat to run against the Austrian pretender they would be truly enlightened. But California Democrats won't change because they're entrenched and their core constituants are reinforced by a selfcentered system of generous state spoils to the single issue ideologues that they elect.

Schwarzenegger is also at risk to survive the Republican gubernatorial primary next time around. His big spending, heavy borrowing and his policy to divert local tax resources toward Sacramento has turned off the conservatives in the state, which represent about 15% of the general electorate. Schwarzenegger is at as much risk against a popular conservative in the primary as he is in the general election.

I don't think the Dem's in the state house will go for this.

she's a terrific African-American from the
47th district (I think) So. Cal westside.
If she and fellow Dems have their way, Arnie
won't be getting his way on these proposals.

he DOESN'T get the legislature's approval! he's been gung ho about getting the people to vote for his bullshit....and unfortunately, it's working.

Blue Cross told me recently that I cannot join there HMO because of a pre-existing condition. It's a condition that 30% of the population has. The percentage of people my age who have it is much higher. It is not difficult to control with medication. HMOs may give bad service, but the alternative is insurance so expensive that you might as well not have it. Only the rich can pay for it for long.