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WaPo hypes insurance industry claims; doesn't bother to assess credibility

October 12, 2009 11:41 am ET by Jamison Foser

The Washington Post's Ceci Connolly "reports" on the insurance industry's assault on health care reform:

After months of collaboration on President Obama's attempt to overhaul the nation's health-care system, the insurance industry plans to strike out against the effort on Monday with a report warning that the typical family premium in 2019 could cost $4,000 more than projected.

...

Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.

...

Though open to dispute, the analysis is certain to raise questions about whether Obama can deliver on his twin promises of extending coverage to millions of uninsured Americans while also curbing skyrocketing health-care costs.

Connolly then quoted from the report, and quoted an insurance industry spokeswoman.  Eventually, near the end of the article, Connolly finally got around to including some disagreements with the study's conclusions.  But she didn't make any attempt to answer for readers a rather basic question: Is the insurance industry study correct?

Nor did she spend any time at all putting PricewaterhouseCoopers' involvement in context.  It seems like they're a neutral, credible source, right?  But as the Washington Post's Ezra Klein explains elsewhere, the firm's track record isn't particularly good:

The report was farmed out to the consultancy PricewaterhouseCoopers, which has something of a history with this sort of thing: In the early-'90s, the tobacco industry commissioned PWC to estimate the economic devastation that would result from a tax on tobacco. The report was later analyzed by the Arthur Andersen Economic Consulting group, which concluded that "the cumulative effect of PW's methods ... is to produce patently unreliable results." It's perhaps no surprise that the patently unreliable results were all in the tobacco industry's favor.

That seems like some useful context that could have helped Connolly's readers, doesn't it?  Klein goes on to point out glaring flaws in the insurance industry study -- flaws that are nowhere to be found in Connolly's article.  Instead, Connolly leads with the alarming conclusion that the "typical family" could pay $4,000 more for health care -- and makes no attempt to assess the validity of that claim.  She doesn't even explain what "typical family" means.  

Could someone explain to me why Connolly's write-up is on the front page of the Washington Post, and Klein's is on a blog on the Post's web page?

UPDATE: TNR's Jonathan Cohn posted at 10:56 last night an assessment of the study that noted it makes a series of "strange assumptions" that calls its conclusions into question.  Like this one, which Cohn quotes directly: "We have estimated the potential impact of the tax on premiums.  Although we expect employers to respond to the tax by restructuring their benefits to avoid it, we demonstrate the impact assuming it is applied."

So the insurance industry study is based on assumptions it believes are false.  That's a pretty damning piece of information, isn't it?  Jonathan Cohn posted it online last night -- but Ceci Connolly couldn't be bothered to include it in her write-up of the insurance industry's attack for today's Washington Post.

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    • Author by IRONY 101 (October 12, 2009 11:48 am ET)
      2  
      Even if the predictions are correct, which I doubt, they do not address how much a typical family's premiums would continue to rise if there is no health care reform. It could be that a family's premiums would rise $5,000 if no health care reform is enacted...yet might rise only $2,000 if heath care reform passes.
      Report Abuse
      • Author by NiceguyEddie (October 12, 2009 12:14 pm ET)
        3  
        You got it! You'd think by now conservatives would have learned that if the status quo wwas going to stay right where is was on it's own, they wouldn't have to work so hard to maintiain it! (Of course they've beena round for thousadns of years and the most they ever learn is what the liberals from two generations ago figured out, and were mocked for by the conservatives of THAT era!)

        I heard this story on NPR this morning as well and had the same thought: WOW. Insurance Companies had negative findings about a bill that would increase regulations on them. Oh, my farkin' guard!

        If the insurance comapnies ever did ANYTHING in good faith, or were good at what they did from the CUSTOMER'S POV, we wouldn't NEED the legislation in the first place. The Right would be right! (For once!)

        ----------------------------------------------------------------------
        But instead they let their greed create a catastrophe, and yeat still have the audacity to say, "Trust us! We can fix it ourselves!" Yeah right... And me and my boys got some 'protection' we'd like to sell YOU!
        Report Abuse
      • Author by DellDolly (October 12, 2009 1:16 pm ET)
           
        This same argument also debunks the oft-cited complaint about the Medicare Trust Fund going 'bankrupt'.

        If insurance premiums hadn't been allowed by state regulators to rise faster than inflation year after year after year, then the health insurance companies wouldn't have the required money to pay claims, and they would be bankrupt too!

        We need to fix the trust fund so that it has enough money to pay for healthcare of the baby boomers who will tax the system more and more over the coming 30 years or so. But that doesn't mean that there's a flaw with Medicare that portends failure for a public option.
        Report Abuse
        • Author by NiceguyEddie (October 12, 2009 3:53 pm ET)
             
          Of course not. But why should these fools bother thinking logically if it contradicts thier propaganda?

          ----------------------------------------------------------------------
          Idiots
          Report Abuse
    • Author by DellDolly (October 12, 2009 11:53 am ET)
      2  
      It is irresponsible journalism to push this report from the insurance industry before sufficient fact-checking has been done.

      But what should we expect from someone who regularly appears on FoxNewsSunday?
      Report Abuse
    • Author by mk3872 (October 12, 2009 12:19 pm ET)
      2  
      Well, hey, at least we know now EXACTLY why the GOP asked for 72 hours to "review" the healthcare bill!

      It gave just enough time for their sugar daddy insurance industry cohorts to push out this bogus report.
      Report Abuse
    • Author by political_left-religious_right (October 12, 2009 2:15 pm ET)
      1  
      I have no problem with your report, Jamison, but could you get someone to fix the "crediblity" in the headline? This isn't NewsMax, after all.
      Report Abuse

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