A message Thursday from Health and Human Services chief Kathleen Sebelius is unusual not just for its tough language toward health insurers, but because it exists at all. In a letter to the insurance industry’s lobbying and trade association, Sebelius flatly warns insurers to cut it out with blaming their double-digit price hikes on federal health reform.

I can’t remember seeing any kind of federal response to health premium increases, so a letter Thursday from Health and Human Services chief Kathleen Sebelius (thanks to Igor Volsky at Wonkroom for the tip) is unusual not just for its tough language, but because it exists at all. In a letter to Karen Ignani, president of the insurance industry lobbying and trade association, Sebelius warns insurers to cut it out with blaming their double-digit price hikes on federal health reform:

It has come to my attention that several health insurer carriers are sending letters to their enrolees falsely blaming premium increases for 2011 on the patient protections in the Affordable Care Act. I urge you to inform your members that there will be zero tolerance for this type of misinformation and unjustified rate increases.

Of course, it appears to be no accident that insurance companies are shoving out these increase notices just before the November elections, or that Ignagni herself, the industry’s top lobbyist, is writing the script for her members.  

Even as the health insurance industry is proving the need for regulation of rates, the industry is mounting a full-court press against any regulation.

Unfortunately, Sebelius and the White House don’t have much beyond tough talk in their arsenal. The letter uses the one credible threat at the administration’s disposal: exclusion of insurers that gouge their customers from the new state insurance exchanges in 2014:

We will … keep track of insurers with a record of unjustified rate increases; those plans may be excluded from health insurance Exchanges in 2014. Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections [required by the ACA].

But 2014 is a long way away, and insurance companies are not even commited to the Exchanges, where it will be all too easy to see who provides the best value for the money.

All the more reason for states to get with it in regulating health insurance directly. Insurers aren’t the only cost problem, but it’s outrageous that they are blaming a new round of 18% or 20% premium hikes on the 1% to 2% cost of new patient protections. Of course, it was insurer greed that triggered the new protections from, for instance, arbitrary policy cancellations and exclusion of sick children from coverage.

At least we know the industry is taking Sebelius’ letter seriously because of the speed of its response. Ignagni snapped back with lots of fire and few facts that the insurance industry can’t be blamed for anything. No wonder insurance companies are as popular as used car salesmen. At least the car dealers don’t hold life and death power like the health care dealers and their chief salesperson, Ignagni.

One point in the insurers’ letter deserves a closer look:

Health insurance premiums are increasing because of soaring prices for medical services, the impact of younger and healthier people dropping their insurance during the weak economy, and additional benefits required under the new law.

Yes, lots of people are dropping their insurance because they can no longer afford it. Yet insurers are actually seeing the lowest level of medical inflation in years, and holding  tens of billions of dollars of surplus in corporate reserves that could temporarily quell premium increases. But no, they’d rather throw hundreds of thousands of patients to the wolves so they can enter the new era of health reform with the highest possible rates.

That’s greed at it most naked.

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Posted by Judy Dugan, research director for Consumer Watchdog, a nonpartisan, nonprofit organization dedicated to providing an effective voice for taxpayers and consumers in an era when special interests dominate public discourse, government and politics. Visit us on Facebook and Twitter.

As Robert notes in an update, OC Assemblyman and noted utility lobbyist spanker Mike Duvall resigned his seat effective immediately.

Looking past for a moment the hilariousness of the family values Republican bragging about his multiple mistresses, and the very serious allegations of sex-for-favors with lobbyists, which should be investigated by the Ethics Committee and state prosecutors, there’s a point to be made about the 2/3 requirement here.

Duvall’s resignation reduces the number of lawmakers in the Assembly by one.  Democrats now hold 50 seats, Republicans 28, with Juan Arambula as a Dem-leaning independent.  However, because you need 2/3 voting affirmatively to pass a budget or tax increases, not 1/3 voting negatively to block it, this changes nothing in Sacramento.  Duvall’s seat being empty is pretty much the same as him voting no on everything.  So unless Democrats can capitalize and win the seat (and I highly doubt it in that district), it’s not useful from a voting perspective.  

Just thought you should know, being a Yacht Party member is literally the same as not existing.

UPDATE by Robert: See the Courage Campaign’s press release, calling for the Attorney General to investigate this, in the comments.

This post originally appeared at Speak Out California

Why are Republicans so successful, even though they only have a tiny minority representation in our state government? Read on.  

An invitation was sent for the upcoming California Republican Party Convention, which will be September 25-27 at the Rennaissance Esmeralda Resort & Spa in Indian Wells, outside of Palm Springs.

Nestled at the base of the majestic Santa Rosa Mountains in the exclusive community of Indian Wells, the luxurious Renaissance Esmeralda Resort & Spa is the desert’s finest oasis. Offering unparalleled service and all the amenities of a world-class resort, Esmeralda invites you to indulge your every whim.

[. . .] Spa Esmeralda is designed to nourish your soul. Marble floors, glass corridors and the sounds of a trickling stone fountain greet you. From that moment on, a transformation begins to take place.

Gaze at the alluring desert landscape from the tranquil Spa Garden and soothe away the day’s stress under a therapeutic waterfall spa. This is Spa Esmeralda. This is Paradise.

Featuring,

• Spa with lush garden
• Golf Club House
• Lounge with live entertainment
• Room Service
• 36-Holes of Championship Golf
• 3 swimming pools & Pool Bar
• Fitness Center
• Tennis
• Concierge
• In-room movies
• Complimentary in-room coffee
• Complimentary newspaper
• Restaurants

Nice!  Where do they park their yachts in the desert, though?

I noted on the web page, “Special Thanks to San Manuel Band of Mission Indians for their generous support of the California Republican Party and the fall convention.” Sponsorship is solicited on the following terms:

$100,000 Official Convention Title Sponsorship
For organizations seeking maximum exposure and opportunities to network with Republican candidates for Governor, Congress and State Legislature, this Title Sponsorship opportunity is ideal, providing exclusive benefits. Title sponsorship of the California Republican Party’s fall Convention is limited to one partner with a speaking opportunity during the convention and a customized sponsorship marketing plan tailored to your needs which will include … Private meeting with all top state party leaders during convention.

There are also $50,000, $25,000 and $15,000 opportunities.

I especially was interested in The Workshops At The ’09 CRP Fall Convention, which are put on by various people including:

• David Kralik, Silicon Valley Representative for Newt Gingrich’s American Solutions 
• David Avella, Executive Director of GOPAC
• Philip R Hinderberger: Senior V-P & Govt. Affairs Counsel, NORCAL Mutual Insurance Company
• Larry Greenfield, The Reagan Legacy Foundation
• Mackenzie Eaglen, Research Fellow for National Security Studies, Heritage Foundation

Some background on some of the above:

• If you don’t know, a Senior V-P & Govt. Affairs Counsel is a LOBBYIST.
• The Ronald Reagan Legacy Project was formed in 1997 as a project of Americans for Tax Reform – Grover Norquist’s organization.  According to SourceWatch: “Americans for Tax Reform (ATR) is ostensibly a group that pushes for lower taxes. It has close ties to the Republican Party and has frequently allied itself with the tobacco industry.”
• Heritage Foundation is the premier right-wing, anti-government “think tank” located in Washington, DC.

So this is a luxury event, sponsored by corporations, with workshops from elements of the conservative infrastructure.  These are organizations that are supposed to be non-partisan, are often funded with tax-deductible contributions, exist outside of the party structure, but in this case are closely bound with the party itself.

These third-party groups lay the groundwork for elections by bombarding the public with corporate-funded messaging that is almost always anti-government and anti-tax, advocating the corporations replace government in our national and state decisionmaking.  Grover Norquist is famous for saying he wants to make the government “small enough that it can be drowned in a bathtub” and this is why his organization has demanded that office-seekers sign a pledge to oppose taxes in all forms.  They believe in “defunding” government, so that it cannot effectively regulate corporations. 

After enough of this drumbeat of anti-government propaganda, with no response from people who believe in demcoracy and community, the public doesn’t have much choice but to believe the only voices they hear, and turn against government and the taxes that support democracy.  

This third-party infrastructure is why conservatives have been so effective at strangling government in California.  It is funded by corporations and every Republican has take “the pledge.”  The corporations pump hundreds of thousands of dollars into our elections to put just enough of them over the top to keep the state from functioning. 

What we need is a progressive infrastructure of organizations that reach the public and explain progressive policies, creating acceptance of progressive values and demand for progressive solutions that help everyone, not just a select, wealthy few.

Click through to Speak Out California

The current plan to give $700 billion away to Wall Street – the same ones who got us into this mess – is a sign we need Clean Money public financing of campaigns more than ever.  Finance, insurance, and real estate firms have poured over $5 billion in contributions into politicians’ hands since 1990.  They’ve already been paid back by special interest giveaways many times over, and now they’re asking for over $2,000 from every man, woman, and child in the country.

Clean Money is the Only Way to Stop this Madness From Happening Again and Again!

Urge Governor Schwarzenegger to sign AB 583, the California Fair Elections Act, to start ending special interest dominance of politics by sending him a fax right now:

www.CAclean.org/letters

By providing for Clean Money for Secretary of State candidates, AB 583 would let California show the rest of the nation that there’s a much better way, not to mention making sure that the elected official responsible for the very integrity of our elections doesn’t have to fundraise.

Once you’ve sent your fax, please make a call to the Governor as well.  It’s quick because AB 583 has already gotten so many calls that they had to make it one of only five bills (out of 875!) that have their own automated response option.

CALL 916-445-2841 NOW!

You’ll get an automated system when you call so won’t need to even talk to anybody. Do the following:

> Press 1 for English

> Press 2 to “Voice your opinion on legislation”

> Press 5 “about AB 583, regarding the Political Reform Act”

> Press 1 “to register your support”

The line may be busy at first because so many people are calling.  Keep trying until you get through – you should after a few tries.

The Governor said it best:  Special interests have a stranglehold on Sacramento.  Here’s how it works.  Money comes in.  Favors go out.  The people lose..

Remind the Governor of his chance to change that by sending the fax and making the call:

www.CAclean.org/letters

California Clean Money Campaign

www.CAclean.org  

AB 583, the California Fair Elections Act, is likely to have its floor vote in the State Senate today and definitely by Sunday – two steps from the Governor’s desk!  But the vote is going to be a nail-biter.

Lobbyists and the California Chamber of Commerce are trying to kill the bill because it partially pays for the system by raising registration fees on lobbyists to the same level as they are in Illinois ($350 a year), though they’re really worried about not having as much access to elected officials because the $143 million they spend every six months lobbying won’t mean as much if candidates can get elected with public funds.

Let’s not let them stop Fair Elections!  Please send a free fax to your State Senator and to Senate leaders asking them to vote yes on the bill.  Over a thousand people have faxed already, but the more faxes they get today, the better:

www.CAclean.org/letters

Then call up your Senator and ask them to vote Yes!  The fax tool will show you’re their number.

This is the closest a Clean Money bill has ever made it to getting through both houses of the legislature in California, and AB 583 makes the perfect pilot project by funding Secretary of State races to make sure they never have to take money from the likes of Diebold or other private contributors.  So let’s make it happen!

California Clean Money Campaign

www.CAclean.org  

I think these open threads are working out.  Hope you enjoy them.  Here are a few thoughts.

• This is a week old, but Nick Kristof’s column about Prop. 2 (the farm animal safety measure) is well worth your time.

• It’s still up in the air whether or not we’re going to have Alan Keyes on the California Presidential ballot in November.  There’s a lawsuit between two members of the American Independent Party over who should be their nominee.  It seems to me the very definition of “frivolous,” but as someone who deeply enjoys mocking Alan Keyes I have a dog in this fight, so do the right thing, Sacramento Superior Court!

• The Log Cabin Republicans, who I also like to call “gluttons for punishment,” rolled out their No on 8 campaign last week.  The website is Republicans Against 8.  It’s the libertarian thing to do to get government out of the bedroom, so hopefully they’ll sway some folks.

• This is absolutely revolting and someone needs to go to jail:

For hundreds of homeless people, posing as phony hospital patients provided them a clean bed and cash. For the hospitals that processed them, it meant a full patient-load and a paycheck from the government.

Now some of those allegedly involved in what authorities say was a massive scheme have been charged with billing government programs for millions of dollars in unnecessary health services.

A hospital CEO was arrested Wednesday after federal agents raided three medical centers. City attorney Rocky Delgadillo’s office has also sued the hospitals, saying they used homeless people as “human pawns.”

It’s kind of the flip side of homeless dumping, or who knows, it was run in concert.  Either way, sickening.

• Jerry Lewis is trying to get a bunch of lobbyists to fund his Congressional portrait.  The worst part about this deal is that Jerry Lewis will have a Congressional portrait hanging in our nation’s capital.

Add whatever you wish in the comments.