We are actually paying companies to ship our jobs overseas. Corporations receive tax cuts for outsourcing jobs to other countries. The president wants to eliminate those tax breaks, saving us $210 billion over the next four years. The White House needs to drive that message home tirelessly.
..... Contact: http://Alex.Karoub@gmail.com
WHO IS THAT GUY BARACK OBAMA? HE IS US.We have made historic headway by together pointing our nation in the right directions. After decades, we have America focused on the issues of fundamental importance. Now, each of us acting in concert can together move our country to lead the world to the fruitfulness of moral goodness. I have no doubts about my abilities and the abilities of fellow Americans to work smart and hard to achieve these goals.Barack Obama has the visions, leadership, and integrity for us to correct and redirect our country to once again lead the world for the fruitions of good. Let's closely listen, learn, and move forward based on that which we know deep inside is good and which we can validate with our hearts. I hope that those who had but a few reasons to support Obama, look further into the other issues more deeply. I found the more I explored, studied, and listened to Obama the more I found us in agreement. The couple of issues that I did not have depth of knowledge of, quickly became obvious in need. This was unusual for me since I have always refused to be any kind of a follower, and still am not. I find Obama to be a deep thinker who is articulate and inspirational; and, of most fundamental importance, Obama makes excellent moral sense.Hopefully, our country has learned lessons from the past of mistakenly following leadership blindly, as was done with Nixon and Bush. There are leaders who are simply in it for themselves and will cater to individuals or groups in order to grab for their own benefit. Corrupt and bad leaders hide at all levels. This is especially true in city government as well as county and state government. The corrupt deals of politicians need to be exposed, and those responsible need to be weeded out in the coming local elections. Others need to be investigated by law enforcement and be prosecuted for illegal dealings; for deals they often make for their hidden personal agendas. Let’s look at the bad experiences of the past as bitter medicines, let’s eliminate the need for such bad medicine in the future. Let us use what we know is good to go forward.I believe we have chosen wisely, not by greed and not by misguided retaliatory anger. I believe this time our country has chosen with open eyes, with each of us listening and examining our choice of leadership closely, driven and validated by our hearts.I hope we can continue to make our efforts even more inclusive (in many more ways than I touch on here). Far right republicans will be stubborn to change, but we will need to include them to change if we are to succeed. Sure a few more will leave our country, but that is not the American way. No, we really don't need their false fronts of power, money, insider knowledge, or other trappings that they have taught many to 'respect?'. Let's recruit as many as we can, that's the American way, evolving and changing together as one nation. Try to be understanding as we move forward; by better understanding each as individuals and people with various desires and needs we will find ways to reach out with friendship and have them join our causes of good.Be on the lookout, and root out bad leadership in government and business. Do not be intimidated by those who use the false fronts of power and give a false sense of security in order to lead. Be extra leery of those who say or imply ‘Trust me’; those who give a sense that they somehow omnipotently know better. No longer will Americans be dazzled by phony displays of brilliance or baffled by baloney. There are government aristocrats and business leaders who still believe in the old adage of: “If you can’t dazzle them with brilliance, then baffle em with bullshit”. We can embrace complexity by demanding true, fundamental, and understandable explanations. We can root out falsehoods by not accepting double speak. We as Americans know how to grow ourselves by first believing in ourselves. Don’t be a follower. Don’t be a follower of followers.However, when we find leaders who are good; a leader that thinks, speaks, and acts from their heart; one that is honest, has integrity, and leads by sincere examples; then we need to in a big way, join them, support them, and promote their causes of good. From much research, investigation, and scrutiny, I believe Barack Obama is such a person. I hope we search for and find many more who are similar, who we can add to service at all levels of government. We need to add/replace leaders in business with ones that have honesty, integrity, and show quality in leadership. We need more people in leadership roles who are moral, like Barack Obama.Remember, we are not fighting a battle, we are the artisans and sculptors of the future for ourselves and generations to come. Rarely do societies have opportunities to make such dramatic moves forward as we now have in this opportunity of today. Take pride and practice in being inclusive as we stride forward. In moving forward, create opportunity not only for yourself, but also for all. Hope is a wonderful thing to behold; but without opportunity, hope can become but a dream never achievable. We can, will, and must, create opportunity.In the coming year I hope that we do not lose our spiritedness, but instead continue to build and make headway. I hope we all continue our campaign for change in government and business. We will succeed in moving forward once again, it will take much effort and good oversight on the part of each of us. We will make great strides in the months and years ahead in order to achieve the fruitions of good. Let's keep our enthusiasm progressing through these coming toughest of times. Let us use the light of goodness and love to motivate us with historic momentum.I have chosen Barack Obama because he best represents my deepest beliefs in America. Please take time to read the issues that Barack Obama has published on this website. Also, give your attention to see how he leads us to move our nation forward in the time ahead. Most importantly, be part of America's great future, participate in the greatness that together we will make. Participate!We will each and all flourish, if we think, speak, and act, by using the love in our hearts.
Your reply is welcome. Contact: Alex.Karoub@gmail.com
Decade of the 1970's -
Sergio de Castro, Pinochet's 'Friedman Schooled' economics minister, said he could never have done it without Pinochet's iron fist backing him up. (Referring to the implementation of a brutal policy for 'Wiping the Slate Clean' in order to make way for the new religion of a U.S. sponsored, 'Free Market' ideology. The economists taught their students to look upon the population as a psychiatric patient, requiring 'Shock Treatment' in effort to cleanse it of its 'collective' cancer, simply because it - the population mindset - didn’t fit Friedman's free-market model.)
It was Nixon who would give the Friedman Chicago Boys and their professors something they had long dreamed of: a chance to prove that their capitalist utopia was more than a theory in a basement workshop – a shot at remaking a country from scratch. Democracy had been inhospitable to the Chicago Boys in Chile; dictatorship would prove an easier fit. – Klein
Chile’s coup, when it finally came, would feature three distinct forms of shock, a recipe that would be duplicated in neighboring countries and would reemerge, three decades later, in Iraq. The shock of the coup; financial shock; the other, Ewen Cameron’s shock, drug and sensory deprivation research, codified as torture techniques in the ‘Kubark’ manual and disseminated through extensive CIA training programs for Latin American police and military. – Klein
This is the same Free Market formula Reaganomics and Thatcherism, whole heartedly, imbued itself in. Amongst the Chicago Boy Institution’s professors included such luminaries of destruction as George Shultz, and Donald Rumsfeld; Rumsfeld describing Friedman and his colleagues “a cluster of geniuses.”
In 1985 John McCain visits Pinochet. McCain described the meeting with Pinochet “as friendly and at times warm, but noted that Pinochet does seem obsessed with the threat of communism.” Gee, I wonder who planted that bug into Pinochet’s psyche? Today, the commies have morphed into: Al Kaeda Everywhere, under the ubiquitous and pervasive - Global War on Terror. Gen. Augusto Pinochet Ugarte, the brutal dictator who repressed and reshaped Chile for nearly two decades and became a notorious symbol of human rights abuse and corruption.
In 1985 John McCain visits Pinochet. McCain described the meeting with Pinochet “as friendly and at times warm, but noted that Pinochet does seem obsessed with the threat of communism.” Gee, I wonder who planted that bug into Pinochet’s psyche? Today, the commies have morphed into: Al Kaeda Everywhere, under the ubiquitous and pervasive - Global War on Terror.
Gen. Augusto Pinochet Ugarte, the brutal dictator who repressed and reshaped Chile for nearly two decades and became a notorious symbol of human rights abuse and corruption.
Friedman's, Chicago Boys, during the decade of the 70's, had already proven their greed based markets worked in test beds such as Chile and Argentina, but only through the process of 'Cleaning the Slate' through Shock and Torture, where hundreds of thousands were 'disappeared', along with U.S. - CIA and Corporate complicity.
Friedman himself was forced to admit that his free-market ideology does not fit comfortably within democratically established Societies - which is why the 'CULTURAL SLATE MUST BE ERASED' to make way for the new free-market religion, a medicinal cleansing is required. In Friedman's world - the architect of Reaganomics - Democracy and Free-Markets are a contradiction in terms; diametrically opposed and at odds with each other. Its results: a small elite grow far wealthier while large portions of what had been the working class are discarded from the economy althgether and turned into surplus people.
What should be even more worrisome is that Friedman style, free-market ideology was sold to the Chinese. The Chicago Boys having deemed Democracies as inhospitable to their formula for quenching insatiable greed, China certainly would prove quite the opposite. Just look at the praise it received via the, so called, Olympics. Look where the free-market multi-nationals tend to find attraction and tend to gravitate towards - China and Dubai.
'Operation Iraqi Freedom' should be seen in its true light, for what it really is, a Neoconic cleansing, or 'clearing of the slate' in preparation for Iraqi Friedman!!
See: Negorponte - The Death Squad Ambassador
A lot of folks have criticized, questioning Obama's character for having rubbed shoulders with folks from the same institution from which Freidman launched his bloody counter-revolution against New Deal policies. But what people don't bother to check is that Obama is completely anti-Friedmanism. Having infiltrated the den of vipers, having discovered the enemy’s strategy, Barack of all peoples is the only one poised to expose them, or at least use their own tools against them for the greater good. I can still hear Barack's words, ringing in my ears, calling for transparency. Although Barack may have brushed shoulders with Friedman's school of financial thugs, does not make him one.
Friedman, along with, Nixon’s Secretary of State, Kissinger should be pointed out for what they are: Criminals wanted for murder! In fact, if Kissinger were to set foot in certain areas of South America, he would immediately be arrested as such and he knows it, thereby forcing him to utilize his 'Free Market Miles' frugally.
**STOP** and get a copy of Naomi Klein's "The Shock Doctrine - The Rise of Disaster Capitalism, read and re-read it while we await election day to arrive. Because, what Naomi brings to light within the pages of her expose, is precisely what WE are voting against in this election; decades of ruthless, predatory abuse of power, with greedy Corporatarch bottom-lines that are soaked with innocent blood, everywhere. Now, the chickens are coming home to roost.
Naomi does an excellent job in removing the haystack, exposing the piercing needle hidden within and explains everything.
Video of Naomi Klein speaking at the University of Chicago, invited by anti-Freidman group against erecting monument to Freidman. Naomi says each time Obama criticizes the current failed economic policies, his ratings shoot up.
Naomi Klein: Wall St. Crisis Should Be for Neoliberalism What Fall of Berlin Wall Was for Communism
Have we met our enemy yet? Or, are we still unable to see the forest for the trees?
Proper education and sunlight are the BEST disinfectants!
Peace, Best Wishes and Hope
Obama is clearly leading all the polls, however, if we're gonna bring this election home by a landslide, so that we will not be robbed this election year (as in 2000), then let's talk issues. This will only increase our education and strengthen our ability to welcome all those on the fence.
First Issue to win on-the-fence-moderate (sometimes Republican) voters: Taxes. I make over $50,000, but don't want my taxes to increase. Why should I vote for someone that will raise taxes?
Let's discuss the various answers we can give.
Second Issue to win voters: What's this talk about a "windfall tax" on corporations (specifically oil companies)? Do we not live in a capitalistic country? Why are we penalizing Americans for running a successful enterprise?
Please invite as many people as you can to this blog!
See how the Corporation is directly originated from racial inequality.
http://www.youtube.com/watch?v=Pin8fbdGV9Y&feature=PlayList&p=FA50FBC214A6CE87&index=0
From a positive perspective there are excellent lessons to be learned from the past seven years.
If we allow corporations to be left totally unchecked their greed will rob us blind; and our environment, and lives, will be put in further jeopardy!
If we allow the Military Industrial Complex to influence our foreign policy we will continue to be at war!
If we allow any branch of government, Judicial, Legislative or Executive, to go unchecked we will continue to lose our civil liberties!
If we allow politics to subvert our Justice Department; to exert undue influence on our scientific community; and to muzzle the voice of dissent within the government, we will lose our Democracy!
I had an idea about how we could turn around the corporate greed, the special interests, the pharmaceutical companies and the oil companies to be working in our favor.
It's those tax payer dollars you see that are the strength of America. We not only have to figure out a way to keep greedy hands off of this money but a better way to invest it. Let's set up the American Corporation with us, its citizens as its major share holders. Remember when we had our surplus way back well that surplus could be looked at as a dividend which could then be returned to us for the great job the administrators of the corporation (our Congress men and women) have been doing to maximize revenues and reduces costs. Now part of the mandate of this American Corporation will be to never give unfair advantage to any competing corporations such as the oil companies, pharmaceutical companies, etc. The purpose of this Corporation is for the benefit of the American people. Since we are now in this global economy we need to look at the entire American marketplace as something that has intrinsic value. Therefore while trying to maintain free trade we may only do so if our access to the world marketplace is unfettered. This is a key proponent of our American Corporation, equal access meaning that trade is a two way street. We can no longer offer favored nation status to marketplaces that will not reciprocate. After all we are in business to make money right? The more profits we make the more dividends we can pay in outright cash payments, rebuilding our infrastructure, innovations, research and development and a host of other benefits such as health insurance for all.
Tell me what you think. This is just a first draft of an idea that seems to resonate with so many people.
Well, what does the U.S. debt have to do with foreign policy and economic policy? Debt investment for influence!
Remember that quote in my previous post about the U.S. debt trading from Suze Orman? Well, to refresh:
After your debts have all been paid off, you are to apply the money you were paying all those months toward creating your future.
(Again, as I said before, and keep in mind, since I don't want to incur "the wrath of Suze Orman," Suze Orman has not made any endorsements of any candidates or their policies publicly; and, the following is not to be interpreted as an opion of hers, but I am using the quote as a reference as it does make a good point of what government should be doing with the debt.)
This CBS video indicated that "$.44 of the U.S. debt is being held by foreign investors," and they include, as mentioned in the video:
I've also found other investors from this U.S. Treasury list, which include, but are not limited to:
In this commentary by MSNBC, with this question considering the debt, and it indicates that it's not just foreign investment into the debt:
The Bush administration talks about spending a million here and a billion there adding up to trillions for the war. Since the country is so far in debt, where is all this money they are talking about spending, coming from? I know it is borrowed, but from whom?-- Dick, Howard City, Mich.The money is borrowed from buyers of Treasury securities -- which are basically a big batch of IOUs that are auctioned off every three months. As the auction date approaches, the Treasury figures out how much it will need to pay off old debt and cover the government’s latest round of overspending. When the auction day comes, buyers submit bids in the form of the interest rate they’re willing to accept. You can choose to make a competitive bid (you ask for a specific rate) or a non-competitive bid (you agree to accept the average rate of other winning bids.) When all the bids are in, the Treasury starts at the bottom, taking the lowest bids until it has collected enough money to cover that round of borrowing.The money flows in from all over the place: from individual investors and corporations, pension funds [emphasis added] and governments, both in the U.S. and around the world. Basically, anyone with a large amount of cash looking for a safe place to put it is a good candidate for holding U.S. Treasury debt. So just who are these lenders? As of last June (the latest complete breakdown available), the biggest holder of Treasury debt was the U.S. government itself, with about 52 percent of the total $8.5 trillion in paper that's out there. Most of the government’s holdings are massive savings accounts for programs like Social Security and Medicare. Just as you may prefer to keep your Individual Retirement Account in the safe Treasury bonds, the folks who manage the Social Security Trust Fund are looking for a secure investment, too. That’s leaves a little over $4 trillion in public hands. The biggest chunk (about 25 percent of the $8.5 trillion total) is held by foreign governments. Japan tops the list (with $644 billion), followed by China ($350 billion), United Kingdom ($239 billion) and oil exporting countries ($100 billion).Other big holders of Treasury debt include state and local governments ($467 billion); individual investors, including brokers ($423 billion); public and private pension funds (319 billion); mutual funds ($243 billion); holders of US savings bonds ($206 billion); insurance companies ($166 billion) and banks and credit unions ($117 billion.)Once issued at auction, Treasury securities enjoy a healthy second life when they’re traded in the so-called “secondary market” (aka the “bond market.”) The prices of bonds bought on the open market go up and down as the market reacts to changes in demand and news about the economic outlook like inflation. But no matter what you pay for a bond, if you hold it until it matures, the government has to pay back the full amount that was borrowed when the debt was first auctioned and issued.
The Bush administration talks about spending a million here and a billion there adding up to trillions for the war. Since the country is so far in debt, where is all this money they are talking about spending, coming from? I know it is borrowed, but from whom?-- Dick, Howard City, Mich.
The money is borrowed from buyers of Treasury securities -- which are basically a big batch of IOUs that are auctioned off every three months. As the auction date approaches, the Treasury figures out how much it will need to pay off old debt and cover the government’s latest round of overspending.
When the auction day comes, buyers submit bids in the form of the interest rate they’re willing to accept. You can choose to make a competitive bid (you ask for a specific rate) or a non-competitive bid (you agree to accept the average rate of other winning bids.) When all the bids are in, the Treasury starts at the bottom, taking the lowest bids until it has collected enough money to cover that round of borrowing.
The money flows in from all over the place: from individual investors and corporations, pension funds [emphasis added] and governments, both in the U.S. and around the world. Basically, anyone with a large amount of cash looking for a safe place to put it is a good candidate for holding U.S. Treasury debt.
So just who are these lenders? As of last June (the latest complete breakdown available), the biggest holder of Treasury debt was the U.S. government itself, with about 52 percent of the total $8.5 trillion in paper that's out there. Most of the government’s holdings are massive savings accounts for programs like Social Security and Medicare. Just as you may prefer to keep your Individual Retirement Account in the safe Treasury bonds, the folks who manage the Social Security Trust Fund are looking for a secure investment, too.
That’s leaves a little over $4 trillion in public hands. The biggest chunk (about 25 percent of the $8.5 trillion total) is held by foreign governments. Japan tops the list (with $644 billion), followed by China ($350 billion), United Kingdom ($239 billion) and oil exporting countries ($100 billion).
Other big holders of Treasury debt include state and local governments ($467 billion); individual investors, including brokers ($423 billion); public and private pension funds (319 billion); mutual funds ($243 billion); holders of US savings bonds ($206 billion); insurance companies ($166 billion) and banks and credit unions ($117 billion.)
Once issued at auction, Treasury securities enjoy a healthy second life when they’re traded in the so-called “secondary market” (aka the “bond market.”) The prices of bonds bought on the open market go up and down as the market reacts to changes in demand and news about the economic outlook like inflation. But no matter what you pay for a bond, if you hold it until it matures, the government has to pay back the full amount that was borrowed when the debt was first auctioned and issued.
(Note: The article was published on March 4, 2007, so the article's values are less than what the CBS video mentioned yesterday.)
I also recommend these links from the U.S. Treasury for the most current breakdown on the debt, though it is dated for 12/31/07: abbreviated summary, summary, and repayment schedule. These include the domestic investment in the debt, though the corporate investments into the debt are not detailed, and I couldn't find a list like the one I found for the foreign investments. (We're going to need either an accountant or economist to explain some of this stuff, as I'm not as versed in economics, but that is still quite a bit!)
Apparently, we may be over the debt limit as it is! Ron Paul has quoted, in his writing, How Government Debt Grows:
Today our national debt stands at $8.2 trillion, which represents about $26,000 for every man, woman, and child in America. It's time for American taxpayers to understand that every dollar will have to be repaid. We should have the courage to face our grandchildren knowing that we have done all we can to end the government spending spree. ...Interestingly, the legal debt limit is only $8.18 trillion, a figure that was reached a few weeks ago. This means the Treasury department must ask Congress to raise the debt limit very soon, most likely as part of a larger bill so it can be hidden from the American people. ...(March 14, 2006. Again, his quoted value on the debt is less than the CBS video statement.)
Today our national debt stands at $8.2 trillion, which represents about $26,000 for every man, woman, and child in America. It's time for American taxpayers to understand that every dollar will have to be repaid. We should have the courage to face our grandchildren knowing that we have done all we can to end the government spending spree.
...Interestingly, the legal debt limit is only $8.18 trillion, a figure that was reached a few weeks ago. This means the Treasury department must ask Congress to raise the debt limit very soon, most likely as part of a larger bill so it can be hidden from the American people. ...
(March 14, 2006. Again, his quoted value on the debt is less than the CBS video statement.)
Dennis Kucinich has made a reference concerning the corporate influence, in Dennis on Coporate Power. Now, the article is more general, but the following quotes are relevant to this topic:
The challenge before us today is whether we can maintain a government of the people, by the people and for the people, or whether we will timidly accept the economic, social, and political consequences of a government of the corporations, by the corporations, and for the corporations. ...Enron's considerable financial contributions to the campaign coffers of 71 Senators and 186 House members clearly demonstrate the urgency of creating full public financing of our elections.... Despite the overwhelming influence which corporations have in the life of our nation, I see a new era of corporate accountability. I see a new horizon in America where ethics, sustainability, and sensible priorities guide corporate conduct in cooperation with vigilant, fair-minded, government regulation.We cannot stand by idly while powerful economic engines -- virtually unregulated corporations -- violate workers' rights, human rights, and the environment, sweeping aside antitrust laws, eliminating competition.We need a new relationship between our government and corporate America, an arms-length relationship, so that our elected leaders are capable of independently affirming and safeguarding the public interest. Just as our founders understood the need for separation of church and state, we need to institutionalize the separation of corporations and the state. This begins with government taking the responsibility to establish the conditions under which corporations can do business in the United States, including the establishment of a federal corporate charter that describes and clearly delineates corporate rights and responsibilities. ...
The challenge before us today is whether we can maintain a government of the people, by the people and for the people, or whether we will timidly accept the economic, social, and political consequences of a government of the corporations, by the corporations, and for the corporations.
...
Enron's considerable financial contributions to the campaign coffers of 71 Senators and 186 House members clearly demonstrate the urgency of creating full public financing of our elections.
Despite the overwhelming influence which corporations have in the life of our nation, I see a new era of corporate accountability. I see a new horizon in America where ethics, sustainability, and sensible priorities guide corporate conduct in cooperation with vigilant, fair-minded, government regulation.We cannot stand by idly while powerful economic engines -- virtually unregulated corporations -- violate workers' rights, human rights, and the environment, sweeping aside antitrust laws, eliminating competition.We need a new relationship between our government and corporate America, an arms-length relationship, so that our elected leaders are capable of independently affirming and safeguarding the public interest. Just as our founders understood the need for separation of church and state, we need to institutionalize the separation of corporations and the state. This begins with government taking the responsibility to establish the conditions under which corporations can do business in the United States, including the establishment of a federal corporate charter that describes and clearly delineates corporate rights and responsibilities. ...
What could be some of the effect of the debt investments, especially by foreign countries and coporations by these entities on the current issues concerning NAFTA, foreign policy, immigration policy, and even the Iraq War, etc?
Now, you ask, why am I citing Ron Paul and Dennis Kucinich? A lot of these interest want Obama to play just as politician have always been. Based on my understanding of Barack Obama, like this summary of his life and from articles like this one, which talks about Barack Obama's willingness to work with people (though, in my opinion, he will need to be more careful with those he works with), I think that he really wants to do the right thing, despite the donations he is getting from various sectors (link from this Wall Street Journal article). I also think that Obama has a good starting plan for the economy; however, people like Dennis Kucinich and Ron Paul have an angle concerning the issue that needs to be addressed as well, and we, even as Obama supporters, need to discuss them and be aware of their points-of-view.
The only way Barack Obama can have a fighting chance on bringing change is that we become aware of the scope of the issues that we need to face (not just stuff about pastorial comments, for example), even if it mean we need to take a look at the views of others, even rival candidates, so that we get the best president and the best policies, and maybe, the government will take Suze Orman's advice!
Please, feel free to use this post for discussion with other bloggers, friends, and even supporters of rival candidates. It may have been a "blessing in disguise" that there was so much time between the Mississippi and Pennsylvania primaries, though the media botched it.
"The society's degredation relies/ not on our differences/ but the separation within." Frgt/10, by Linkin Park.
EMK
In looking over the Clinton versus Obama plan for health care, the difference is a bit nuanced and irrelevant when getting it pass corporate control of congress. Who is the one can motivate the citizens to jump all over the congress to expand health care. OK, I am being a bit pessimistic but I do not think we will get universal after four years of whomever. Obama will be just the first step.
Clinton would be better being the attack dog with the corporates on health care. They burned her but good the first time it was tried and she will be there for revenge. She, at the same time, can cultivate experience in defense and foreign affairs. Without a doubt, whoever is at the top of the ticket, the VP will be running for president eigth years. WOW! They will be a great team either way but right now, I say Obama.
George W. Heath, R.N.
Published in WSJ, Wednesday, April 25, 2007
WellPoint Posts 7% Rise in Net, Raises Outlook for 2007
By JOSEE ROSEApril 25, 2007 6:56 a.m.
WellPoint Inc. reported a 7% increase in first-quarter net income and raised its 2007 outlook, but again reported a higher benefit-expense ratio.
WellPoint, one of the nation's largest health insurers, said its benefit-expense ratio, a measure of medical costs as a percentage of premium revenue, was 83.1%, up from 81.3% in the year-earlier period, due to the medical business of the specialty, senior and state-sponsored business segment. WellPoint said the benefit-expense ratio in its senior business increased mostly due to Medicare part D, as expected.
The Indianapolis company's net profit increased to $783.1 million, or $1.26 a share, from $731.8 million, or $1.09 a share, a year earlier. Previously, the company projected first-quarter earnings of $1.25 a share.
Revenue grew 9% to $15.08 billion from $13.84 billion in the year-earlier period. Both earnings-per-share and revenue numbers matched the average estimate of analysts, according to Thomson Financial.
During the quarter, medical enrollment grew by 774,000 members, led by national accounts. As of March 31, WellPoint had 34.9 million members, an increase of 717,000 members from a year earlier. WellPoint said the increase was due to national accounts and state-sponsored business. Growth from the prior year excludes the impact in the change in the company's 50% Puerto Rico joint venture.
For the second quarter, the company continues to expect net income of $1.35 a share, and for 2007, WellPoint raised its earnings guidance to $5.54 a share from $5.53 a share. On average, analysts polled by Thomson Financial expect second-quarter earnings of $1.36 a share and full-year earnings of $5.55 a share.
WellPoint expects year-end medical enrollment of 35.5 million members, representing growth of 1.4 million members, or 4%. The company expects its benefit expense ratio to be about 81.9%.
Last week, rival UnitedHealth Group Inc. reported a 4% rise in first-quarter net profit and an 8.3% rise in revenue. Industrywide, investors expected solid earnings growth and assurance that medical costs aren't taking too big a bite out of revenue from premiums.
Published in WSJ on Saturday, April 21, 2007, page A7.
"We Need Complete Health-Care Competition".
Your "Capital" column on the evolution of thinking in health care ("What's Changed in the Protracted Health-Care Debate," Politics & Economics, April 12) quotes Ronald Williams, chief executive of Aetna Inc., as saying that "every consumer insists on the right to choose a poor-quality physician." Now, aside from this being the sort of arrogant comment we've come to expect from insurance-company executives, Mr. Williams shows a profound lack of understanding of what elements drive choices in physicians.
Aetna and other health-plan marketers attempt to measure quality by examining how closely physicians adhere to certain benchmarks, some of which border on the ridiculous, such as asking five-year-olds at every pediatrics visit whether or not they smoke. Consumers measure quality by talking to family members, friends and referring physicians about their experiences with a prospective treating physician.
Mr. Williams's condescension reveals how he truly regards the simpletons to whom he's trying to sell health insurance. I'm sure his customers see in Mr. Williams a person whose 2006 compensation of $22 million could purchase basic health care for 4,400 families for an entire year. It's worth remembering that Aetna was the company that systematically underpaid health-care claims for years before a lawsuit brought the practice to a halt with Aetna paying a huge monetary settlement.
Consumers have had it with companies such as Aetna and executives such as Mr. Williams interfering with their health-care choices and decisions. Throw it wide open and let doctors and hospitals compete on quality and price without the Aetnas taking their slice off the top.
Benjamin W. BegleyOshkosh, Wis.
Published in WSJ, Friday, April 20, 2007.
UnitedHealth's Net Climbs 4%;Analysts View Results as Mixed
By JOSEE ROSEApril 19, 2007 10:11 a.m.
UnitedHealth Group Inc. ushered in the managed-care earnings season, reporting a 4% rise in first-quarter profit Thursday.
The Minnetonka, Minn., company, one of the nation's largest managed-care providers and considered a bellwether for the industry, said net income rose to $927 million, or 66 cents a share, from $891 million, or 63 cents a share, a year earlier. In January, the company projected first-quarter net income of $980 million to $1 billion. Excluding charges related to stock-option matters, earnings were 74 cents a share.
Revenue at UnitedHealth increased 8.3% to $19.05 billion from $17.58 billion.
UnitedHealth's medical-care ratio, a measure of medical costs as a percentage of premium revenue was 82.7%, up 0.6 percentage points from a year earlier and 2.7 percentage points from the previous quarter, due to substantial growth in the Part D prescription-drug plan and an increase in the risk-based employer-sponsored benefit plan medical-care ratio.
Revenue at the health-care services unit rose to $17.09 billion from $15.8 billion. This includes an 8% increase in health-services revenue and a 16% increase in Ovations revenue. Ovations serves seniors and encompasses Medicare products, including the Part-D prescription-drug benefit program.
Revenue for UnitedHealthcare, the company's biggest health-insurance unit, increased 2%.
J.P. Morgan analyst William Georges said the company's medical-loss ratio of 81.2% in the commercial business was higher than his estimate. On the other hand, he said, the company's consolidated medical-loss ratio was lower than he had expected, as was its administrative-expense ratio.
Membership in the company's AmeriChoice plan rose by 20,000 people in the first quarter and expanded by 100,000 members from a year earlier.
Membership in Medicare Advantage plans fell 100,000, but the company expects improved growth results from this line. On a year-to-year basis, plans increased by 15,000. Ovations Medicare Advantage programs are full-service health plans provided by companies under Medicare, the federal health insurance program for older Americans.
In the beginning of February, UnitedHealth warned of lower-than-expected enrollment in Medicare Advantage plan.
For the second quarter, UnitedHealth expects earnings of 80 cents to 82 cents a share. On average, analysts polled by Thomson Financial expect earnings of 81 cents a share.
For 2007, the company expects earnings of $3.34 to $3.38 a share, including stock-option charges of eight cents a share. Excluding these charges, the company increased its outlook to $3.42 to $3.46 a share, on revenue of about $77 billion. Wall Street projects earnings of $3.42 a share. In February, the company lowered its 2007 revenue forecast to about $78 billion from a previous outlook of about $79 billion.
UnitedHealth spent the last year trying to recover from a stock-options backdating scandal, which resulted in the resignation of Chairman and Chief Executive William McGuire and a restatement of prior profits that cut earnings by a combined $1.55 billion. UnitedHealth is one of the biggest firms caught up in the scandal; more than 200 companies are under investigation for putting erroneous dates on stock options to maximize potential profits.
Published in WSJ Online, Thursday, April 12, 2007
Link Appoints Jeb Bush to BoardAssociated PressApril 12, 2007 1:28 p.m.
DALLAS -- Tenet Healthcare Corp. said Thursday that former Florida Gov. Jeb Bush has been appointed a director by the hospital operator's board.
Mr. Bush, 54 years old and younger brother of President Bush, left office in January after two terms.
In a statement issued by Tenet, Mr. Bush said he was impressed by the Dallas-based company's commitment to improving patient care.
Board member Bob Kerrey, a former U.S. senator from Nebraska, said the Bush appointment "reflects the real strides the company has made in recent years to build a solid foundation for future growth based on integrity and quality."
Tenet is among the largest hospital operators in the country, and Florida is its second-largest market.
The company was the subject of several investigations into Medicare overbilling. For many years, a high percentage of its revenue came from exploiting a loophole in Medicare regulations covering high-cost patients. The company reached a $900 million settlement with the government last year on those charges.
Mr. Bush was elected governor of Florida in 1998 and re-elected four years later.
Mr. Bush will stand for election for a one-year term at Tenet's annual shareholder meeting May 10 in Dallas. The company said it would amend its recently filed proxy statement to add his name to the list of board nominees.
With the conclusion of the first phase of the Campaign for Obama'08 on Saturday, March 31, we will be entering the new phase of Exploration of the Issues.
One important issue is the improvement of Health Care for all Americans, with especial emphasis on Access for All. Under the destructive policies of the Bush administration, access to medical care is now more difficult than ever before. The insurance companies insert themselves between the patient and the physician, then overload the physician with 10 minute visits, and then turn down approval of many necessary medications and procedures.
Clearly, medical insurance companies must be removed, and their profits returned to the care of the patients. Patients can be empowered by vouchers for arranging their own care.
![[Jeb Bush]](http://online.wsj.com/public/resources/images/HC-GJ122_Bush_20061203171237.gif)
