LA Times reporters Tom Hamburger and Kim Geiger assess how well health care consumers are faring in the battle against the mega insurers, and the verdict is not good: the insurers are winning.

. . . the insurance industry nevertheless rallied its lobbying and grass-roots resources so successfully in the early stages of the healthcare overhaul deliberations that it is poised to reap a financial windfall.

The half-dozen leading overhaul proposals circulating in Congress would require all citizens to have health insurance, which would guarantee insurers tens of millions of new customers — many of whom would get government subsidies to help pay the companies’ premiums.

"It’s a bonanza," said Robert Laszewski, a health insurance executive for 20 years who now tracks reform legislation as president of the consulting firm Health Policy and Strategy Associates Inc. . . . Laszewski said the industry’s reaction to early negotiations boiled down to a single word: "Hallelujah!" . . .

"The insurers are going to do quite well," said Linda Blumberg, a health policy analyst at the nonpartisan Urban Institute, a Washington think tank. "They are going to have this very stable pool, they’re going to have people getting subsidies to help them buy coverage and . . . they will be paid the full costs of the benefits that they provide — plus their administrative costs."

But the insurers are not done fleecing the public. Baucus’ Gang of Six deliberations have been done entirely behind closed doors, in violation of every principle of open government and accountability. You and I don’t know what they’re giving way, and even other members of Senate Finance have been kept in the dark. But the insurers know, because their lobbyists are on the inside, and they’re working the committee to increase the health care costs consumers must bear:

In May, the Senate Finance Committee discussed requiring that insurers reimburse at least 76% of policyholders’ medical costs under their most affordable plans. Now the committee is considering setting that rate as low as 65%, meaning insurers would be required to cover just about two-thirds of patients’ healthcare bills. According to a committee aide, the change was being considered so that companies could hold down premiums for the policies.

Most group health plans cover 80% to 90% or more of a policyholder’s medical bills, according to a report by the Congressional Research Service. Industry officials urged that the government set the floor lower so insurers could provide flexible, more affordable plans.

"It is vital that individuals, families and small-business owners have the flexibility to choose an affordable coverage option that best meets their needs," said Robert Zirkelbach, spokesman for America’s Health Insurance Plans, the industry’s Washington-based lobbying shop.

Consumer advocates argue that a lower government minimum might quickly become the industry standard, placing a greater financial burden on patients and their families.

"These are a bad deal for consumers," said J. Robert Hunter, a former Texas insurance commissioner who works with the Consumer Federation of America.

And who’s in there helping this along? Why it’s industry-paid insider and White House BFF, Tom Daschle.

In the first half of 2009, the health service and HMO sector spent nearly $35 million lobbying Congress, the White House and federal healthcare offices, according to data from the Center for Responsive Politics.

With more than 900 lobbyists, that sector — whose top spenders are insurance giants UnitedHealth, Blue Cross Blue Shield and Aetna — was poised to spend more than in 2008, a record lobbying year.

UnitedHealth spent the most, $2.5 million in the first half of 2009, and hired some of Washington’s most prominent political players, including Tom Daschle, the former Senate majority leader who served as an informal health policy advisor to Obama.

It’s time to open the doors and windows and let in some sunshine. Shut down the closed meetings and end the insider deals. Publish the proposals coming from lobbyists and reveal all the deals and demand the Senate conduct the public’s business in public.

The corrupt, secretive and unrepresentative Gang of Six process is an affront to American democracy, and the White House endorsement and manipulation of that cabal is a shameful disgrace. Clean up that act, Obama.

Related:
Commonwealth Fund Study, Employer-based Health Premiums increased 119 percent; will double again in decade
Kaiser Health News, Industry may benefit – AHIP lobbying
Kaiser Health News, Gang of Six not in agreement
WSJ, New splits emerge in health-plan talks