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Privatization

Report Details Private Equity’s Stranglehold On US Healthcare

Private equity's ownership of U.S. healthcare providers is incompatible with the needs and best interests of patients and should be checked with federal legislation, according to a report published Wednesday by the consumer advocacy group Public Citizen. Critics of for-profit care have long decried private equity's focus on maximizing returns through practices including slashing staff, surprising patients with astronomical bills, and eschewing low-margin care upon which vulnerable populations rely. The new report—authored primarily by Public Citizen healthcare policy advocate Eagan Kemp—examines investment firms' impact on more than a dozen healthcare sectors, from reproductive health through end-of-life care.

Hostile Takeover Of Houston School District By Texas Education Agency

The Network for Public Education strongly objects to the takeover of the Houston Independent Public School District (HISD) by the Texas Education Agency (TEA). We believe this is a cynical political move to disenfranchise the residents of Houston by yanking control of the governance of their schools from their elected board and giving governing power to political appointees. Network for Public Education Executive Director Carol Burris states, “This decision is clearly a calculated move to put Houston schools under the Governor’s thumb. In the past few years, the elected Board, Superintendent, educators, and students of HISD have made great strides in school improvement.

How Canadians Are Losing Medicare

Ontario’s Bill 60 has delivered a potential death blow to public Medicare. If it becomes law, the provincial medical system will no longer operate as a public service but as a profit-taking business managed by the private sector. While defenders of public Medicare blame Conservative Premier Doug Ford, British Columbia, Quebec and Saskatchewan are going down the same road. If we hope to reverse this disaster, we need to know how Canadians won Medicare in the first place, and why they are losing it. World War II saw a global upsurge of labor protest. 

Physicians Tell Biden HHS To End Medicare Privatization Pilot

A national physician group this week called for the complete termination of a Medicare privatization scheme that the Biden White House inherited from the Trump administration and later rebranded—while keeping intact its most dangerous components. Now known as the Accountable Care Organization Realizing Equity, Access, and Community Health (ACO REACH) Model, the experiment inserts a for-profit entity between traditional Medicare beneficiaries and healthcare providers. The federal government pays the ACO REACH middlemen to cover patients' care while allowing them to pocket a significant chunk of the fee as profit. The rebranded pilot program, which was launched without congressional approval and is set to run through at least 2026, officially began this month, and progressive healthcare advocates fear the experiment could be allowed to engulf traditional Medicare.

America’s Very Broken Healthcare System

The United States is the only industrialized nation in the world without universal healthcare. Instead, Americans are forced to rely on a mixture of profit and nonprofit private and public healthcare insurers and providers. The United States federal government provides healthcare coverage through Medicare to individuals ages 65 years and older, and to some individuals with disabilities, military veterans, and children through Medicaid and the Children’s Health Insurance Program (CHIP). Around 26 million Americans, about 8% of the population, including just under 2% of children, have no health insurance coverage at all. Low-income families are more likely to be uninsured, with the high cost of health insurance cited as the main factor as to why people remain uninsured in the US. The lack of coverage significantly worsens Americans’ access to health care and many face unaffordable out-of-pocket medical bills if they do seek care.

Mountain Equipment Catastrophe

Dru Oja Jay is joined by Kevin Harding, one of the organizers of a spirited hail-mary attempt to save Mountain Equipment Co-op from being sold off to a US private equity firm. Kevin is a public policy professional who works with cooperatives and community enterprises. In this episode, he shares about how tens of thousands of members mobilized to stop MEC's sale, and came very close to being successful. Dru and Kevin also discuss the situation that led to the co-operative's demise, what could have prevented it, and what became of the effort to save MEC.

AARP And The AFL CIO Are Pushing Medicare Disadvantage

Medicare Disadvantage insurance plans induce seniors by offering advantages that traditional Medicare doesn’t offer – like vision and dental coverage. That’s the upside. The downside is that when you actually get seriously ill, the disadvantage is that when you get sick, you might not get the coverage you were promised. Now, about half of all seniors in the United States are in Medicare Disadvantage. The unions should be fighting against the move to privatize Medicare. Instead of fighting, they are joining with the insurance companies to corporatize Medicare. The big daddy of unions, the AFL-CIO, is itself now partnering with the giant insurance company Anthem to push Medicare Disadvantage plans on its retired union members. The first ad for the campaign read: “Introducing AFL-CIO Medicare Advantage group plans, provided by Anthem. Comprehensive coverage available exclusively to retired union members.”

Privatization Scam Threatens To Replace Traditional Medicare

In 2016, the Trump administration instituted a new little-known federal agency, the Center for Medicare and Medicaid Innovation, which has been moving enrollees, often without their consent, to for-profit middlemen known as Direct Contracting Entities (DCEs). Rather than saving money and supposed greater efficiency, they add to the cost of coverage by taking their own cut of profits. As a redesign of the DCE model, the Centers for Medicare and Medicaid Services (CMS) has allowed an expanded ACO REACH (Accountable Care Organization Realizing Equity, Access, and Community Health) program to start on January 1, 2023, with more than twice the number of DCEs. This is a corporate agenda being promoted and accelerated by CMS, with the ultimate goal to privatize and replace traditional Medicare altogether by 2030, without even a vote in Congress. Despite all those good words in its title — equity, access and community health — the 35-year track record of Medicare Advantage has failed on all of those counts.

Architects Of Medicare Privatization: Congress, Biden And The CMS

It is easy and appropriate to target the private health insurance companies who earn excessive profits from the Medicare Trust Fund through Medicare Advantage plans, especially given the well-documented evidence of overcharging and fraud. But it is essential that we remember that it has been the U.S. Congress and the Executive Office that promoted the privatization of Medicare, to varying degrees, since it was first signed into law by President Johnson in 1965 and enacted the following year. In 2017 The Commonwealth Fund published “The Evolution of Private Plans in Medicare,” which detailed the increasing role in healthcare granted to private companies since 1966 through Acts of Congress and the Office of the President.

Housing Rights Groups Renew Calls For Expropriation Of Private Properties 

Berlin, Germany - A coalition of housing rights activists and groups has condemned the Berlin State’s slow approach in implementing the mandate of the 2021 referendum on the appropriation of properties of large private corporations in the housing and real estate sector. Last week, the Deutsche Wohnen & Co Enteignen (Expropriate Deutsche Wohnen & Co Initiative, DWE), formed by housing rights activists and groups in Berlin, gave an ultimatum to the Social Democratic Party (SPD)-Greens-Die Linke (The Left) coalition to present a roadmap for the socialization of private real estate properties in the city without delay. On September 26 last year, alongside the federal and Berlin State elections, citizens of the city took part in a referendum which saw 59.1% votes in favor of expropriating the property of realtors who owned 3,000 or more residential units.

Labor Leaders Provide Cover For Privatization Of Medicare

Such a statement from the AFL-CIO would suggest that labor is determined to protect Medicare and even support improving and expanding it to all Americans. Additionally, President Biden and Democrats regularly criticize Republican threats to reauthorize and voucherize Medicare. Meanwhile, what’s left out of both the Democrat talking points and the AFL-CIO’s 2022 national resolution on healthcare is any acknowledgment that the real threat to Medicare and healthcare today is the decades-long tax-subsidized privatization supported by both major parties. With major support from organized labor, including AFL-CIO President George Meany at the signing, Medicare was signed into law in 1965. Before Medicare, only 60% of those over 65 had insurance since it was unavailable or unaffordable via private insurance (seniors were charged 3x the rate of younger people).

The Struggle To Keep Water Services In The Public Is Only Just Beginning

Pennsylvania - In early September, the three county commissioners of Bucks County, just north of Philadelphia, voted down a $1.1 billion bid from Aqua Pennsylvania to buy their sewer system. This response to an outpouring of citizen concern about what would have been the largest privatization of a public wastewater system in the country illuminates a larger story — both of the encroachment of privatization and the potential for victories when citizens mobilize around its costs. Aqua had been systematically buying up smaller water systems for years. In New Garden in southeastern Pennsylvania, Bill Ferguson saw his wastewater rates jump nearly 70 percent in the few years after Aqua purchased his township’s sewer system in 2017.

After Platinum Health Took Control, All Hospital Workers Were Fired

The news, under Noble Health letterhead, arrived at 5:05 p.m. on a Friday, with the subject line: “Urgent Notice.” Audrain Community Hospital, Paul Huemann’s workplace of 32 years, was letting workers go. Word travels fast in a small town. Huemann’s wife, Kym, first heard the bad news in the car when a friend who’d gotten the letter, too, texted. “Your termination was not foreseeable,” said the letter, dated Sept. 8 and signed Platinum Health Systems, adding that the firing was permanent “with no recourse” and that the “medical facility will be shuttered.” “I don’t know what my next steps are,” said 52-year-old Huemann, who supervised the laboratory at the Audrain hospital. The future for the Huemanns, hundreds of other workers, and thousands of patients in two small Missouri towns began to unravel long before that afternoon.

Puerto Rico: A Microcosm For The Worst Kind Of Capitalist Ideas

Puerto Rico is in dire need of fuel for generators as they deal with the devastation of Hurricane Fiona. But a ship carrying fuel has been idling offshore, unable to enter a port, because it’s Puerto Rico, where the Jones Act—requiring that all goods be brought in on a US-built ship, owned and crewed by US citizens, and flying the US flag—makes critical goods more expensive, or in this case, out of reach. (The White House has just announced it will temporarily waive the Jones Act.) Investment firms in mainland states can’t act as advisors to the government in the issue of bonds while at the same time marketing those bonds to investors—but they can in Puerto Rico. In Puerto Rico, you can get tax breaks, including zero income tax on capital gains—unless, that is, you were born on the island. Only non–Puerto Ricans qualify. Puerto Ricans themselves are ineligible for Supplemental Security Income, even though they pay payroll taxes.

Modeling The New USPS Delivery Network

This month the Postal Service will begin implementing a massive initiative to change how the mail is delivered. Instead of working out of the back of post offices, letter carriers will be relocated to large, centralized facilities called Sorting & Delivery Centers. These S&DCs will be housed in currently operating processing centers, large post offices, and eventually one of the new multi-functional mega-plants the Postal Service plans to create over the next few years. Spaces are already being prepared in Atlanta, Indianapolis, and Charlotte, where the Postal Service has leased a 620,000 square foot facility almost adjacent to a large Amazon warehouse. The effects on postal employees will be significant, as discussed in this previous post.
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