Politics
Insurers Nervous Over Prospect Of Romney’s Victory
You’d think health insurance CEOs would be chilling the bubbly with Republican Mitt Romney’s improved election prospects, but instead they’re in a quandary.
Although the industry hates parts of President Barack Obama’s health care law, major outfits such as UnitedHealth Group and BlueCross Blue Shield also stand to rake in billions of dollars from new customers who’ll get health insurance under the law. The companies already have invested tens of millions to carry it out.
Were Romney elected, insurers would be in for months of uncertainty as his administration gets used to Washington and tries to make good on his promise repeal Obama’s law. Simultaneously, federal and state bureaucrats and the health care industry would face a rush of legal deadlines for putting into place the major pieces of what Republicans deride as “Obamacare.”
“There are a lot of dollars and a lot of staff time that’s been put into place to make this thing operational,” G. William Hoagland, until recently a Cigna vice president, said of the health care law.
Insurers “are not going to be out there saying, ‘Repeal, repeal, repeal,’” said Hoagland, who oversaw public policy at the health insurance company. “They will probably try to find the particular provisions that cause them heartburn, but not throw the baby out with the bath water.”
Likewise, America’s Health Insurance Plans, the major industry trade group, isn’t talking about what its members are telling the Romney campaign, though informal discussions are under way through intermediaries. Insurers like Romney’s plan to privatize Medicare, and some point out that it looks a lot like Obama’s approach to covering the uninsured.
Robert Laszewski, an industry consultant and blogger, says the tension is becoming unbearable.
“I spend a lot of time in executive offices and board rooms, and they are good Republicans who would like to see Romney win,” said Laszewski. “But they are scared to death about what he’s going to do.”
There is no consensus among Republicans in Congress on how to replace Obama’s law, much less anything like a bipartisan middle ground on health care, a necessity if the House retains its GOP majority and the Senate remains in Democratic hands.
In contrast, Obama’s law is starting to look more and more like a tangible business opportunity. In a little over a year, some 30 million uninsured people will start getting coverage through a mix of subsidized private insurance for middle-class households and expanded Medicaid for low-income people. Many of the new Medicaid recipients would get signed up in commercial managed care companies.
A recent PricewaterhouseCoopers study estimated the new markets would be worth $50 billion to $60 billion in premiums in 2014, and as much as $230 billion annually within seven years.
“I think it’s limited what they’ll be able to accomplish in terms of repeal,” said Coffina. “We have to remember that Romney implemented very similar legislation” as governor of Massachusetts.
If Romney wins he’s more likely to reduce the scope and scale of the law, Coffina added. Possibilities include delaying all or parts of the new coverage, particularly a Medicaid expansion that GOP governors don’t like.
The industry has three items in particular it wants stripped out: cuts to Medicare Advantage private insurance plans; a requirement that insurers spend 80 percent of premiums on medical care or rebate the difference to their customers; and new taxes on insurance companies. But CEOs don’t share the visceral objection that many Republicans have to a bigger government role in health care.
Industry executives “are Republicans in the sense that they’re worried about the bottom line and they want to retain private sector involvement,” said Hoagland, the former Cigna vice president. “But some of their bottom line is now driven by Medicare and Medicaid. So it’s not like they’re red or blue. It’s more like purple.”
Senate has again approved a three-month extension implementation period for capital component of the 2025 Appropriation Act from June 30 to Sept 30.
This followed the adoption of a motion moved by Senate Chief Whip, Mohammed Monguno (APC- Borno) at plenary yesterday.
Monguno, moving the motion, said the extension became necessary given the unutilsed substantial funds released to Ministries, Departments and Agencies (MDAs) for implementation of projects under the 2025 budget.
According to him, delays caused by procurement processes, project implementation challenges and administrative procedures had slowed the execution of several critical government projects.
Monguno said many strategic projects across key sectors of the economy were already at advanced stages of completion and required additional time for execution, certification and payment.
“Failure to extend the implementation period of the 2025 Appropriation Act may result in the abandonment of critical projects, the wastage of already committed public resources and the disruption of ongoing government interventions,” he said.
He argued that some allocations contained in the budget might not be accommodated in subsequent appropriation cycles if the implementation window expired.
This, he said would create funding gaps and ultimately undermine development objectives.
He said that extending the validity period of the budget would improve budget performance, facilitate the efficient utilisation of released funds and support economic growth.
“Granting a further extension of the implementation period is in the national interest and will ensure value for money in public expenditure,” he said.
Chairman, Senate Committee on Appropriations, Sen. Solomon Adeola (APC-Ogun), supporting the motion, explained that the extension was specifically targeted at the capital component of the budget.
According to him, when President Bola Tinubu presented the 2025 budget to the National Assembly, there is an understanding that 30 per cent of the budget implementation will be completed by March 31, while the remaining 70 per cent will be rolled into the 2026 budget.
Adeola said that the implementation timeline was not fully achieved, prompting the National Assembly to earlier extend the budget’s lifespan to June 30.
“While we were passing the 2026 budget, due to the non-implementation of that promise, we were forced to extend the budget to June 30,” he said.
He said although payments had commenced, significant obligations remained outstanding.
“There is a need to extend this budget beyond June 30 to September 30, by then, we are hopeful that the outstanding 30 per cent will have been paid in full, while implementation of the components transferred to the 2026 budget can commence.”
Adeola urged senators to support the extension to ensure proper implementation of projects and prevent disruptions to government programmes.
Sen.Victor Umeh (NDC-Anambra), who seconded the motion cited the need to sustain the execution of projects captured under the 2025 Appropriation Act.
“In view of the need to sustain the continued execution of the projects covered in the 2025 Appropriation Act, as amended, I hereby second the motion,” Umeh said.
Following deliberations, Senate President Akpabio put the proposal to a voice vote and it was overwhelmingly adopted by the lawmakers..
Akpabio in his remarks said the decision was necessary to prevent interruptions in payments and project execution.
“The payment would have stopped halfway if this was not done,” he said.
The Senate President commended the Chairman of the Appropriations Committee and other lawmakers involved in handling the matter.
He directed that the Senate’s resolution be transmitted to the executive for implementation.
“Accordingly, the resolution of the Senate is being communicated to the Executive that the 2025 Appropriation Act has been extended to Sept 30.
The National Assembly had earlier extended the implementation period of the 2025 budget to June 30, following delays in the release and utilisation of capital funds.
Senate, thereafter, adjourned plenary to July 7.
The member representing Sagbama/Ekeremor Federal Constituency of Bayelsa State, Frederick Agbedi, yesterday emerged as the new Minority Leader of the House of Representatives.
Agbedi’s emergence follows the resignation of former Minority Leader, Kingsley Chinda of Rivers State, who recently defected from the Peoples Democratic Party to the ruling All Progressives Congress, creating a vacuum in the leadership structure of the opposition caucus in the Green Chamber.
His nomination was contained in a letter transmitted to the Speaker of the House, Tajudeen Abbas, by the minority caucus during plenary, yesterday.
In the letter, the caucus announced that its members had reached a consensus on the replacement of vacant principal offices allocated to opposition parties in the House.
Abbas, while reading the letter said, “The election of the House of Representatives, Federal Republic of Nigeria, the minority members of the 10th Assembly hereby unanimously nominate the following members by consensus to fill the vacant positions of the minority in the parliament.
“Number one is the Minority Leader, Hon Frederick Agbedi.
“Number two is the position of minority whip, and the person they have endorsed is Hon Mansur Soro (APM, Bauchi).
“The last but not the least is my brother from the North-West, Hon Abdussamad Dasuki (ADC, Sokoko) for the position of Deputy Minority Leader.
“Honourable colleagues, today the body of principal officers is complete, and I want to seize this opportunity on behalf of the whole entire House to congratulate the three people and to wish them all the best in their new positions.”
With the development, Agbedi assumes the responsibility of coordinating opposition lawmakers in the House and articulating the position of minority parties on legislative matters before the chamber.
A ranking lawmaker and one of the longest-serving members of the House, Agbedi has represented Sagbama/Ekeremor Federal Constituency since 2011.
His appointment is expected to strengthen the voice of the opposition caucus at a time when defections and realignments continue to reshape the political landscape ahead of the 2027 general elections.
Also announced was the emergence of Hon Mansur Soro of the Allied Peoples Movement as Minority Whip and Hon Abdussamad Dasuki of the African Democratic Congress as Deputy Minority Leader, completing the minority leadership structure in the 10th House.
Speaking after the announcement, Abbas congratulated the newly appointed principal officers and pledged the cooperation of the House leadership.
“The leadership of the House will work with them assiduously in ensuring that we achieve our legislative agenda objectives of this very important 10th Assembly,” he added.
The emergence of the new minority leadership comes amid recent changes to the House Rules governing the selection of principal officers. The amendments, which introduced fresh eligibility requirements, have generated debate within opposition ranks and influenced the contest for key leadership positions.
Shortly after the announcement, a lawmaker from Imo State who had been nominated for the position of Minority Leader last week, Ikenga Ugochinyere, formally withdrew from the race.
He cited the amended House Rules and the new eligibility criteria for principal officers as the basis for his decision.
The latest appointments are expected to restore stability within the opposition bloc following weeks of uncertainty triggered by Chinda’s defection and the subsequent scramble for leadership positions.
Political observers believe the new leadership team will face the immediate challenge of forging unity among lawmakers drawn from different opposition parties while providing effective legislative scrutiny of the executive and the ruling APC-dominated parliament.
For the PDP, which remains the largest opposition party in the House despite recent defections, Agbedi’s emergence is seen as a strategic move aimed at maintaining cohesion within the minority caucus and strengthening its influence in parliamentary proceedings.
In a letter titled, “An Open Letter to Former President Goodluck Jonathan,” the observer said Dr Jonathan should be careful not to allow himself to be drawn into partisan calculations driven by ambition rather than national interest.
He cautioned the former president against allowing himself to be used by what he described as desperate political interests.
“I believe this is the time to protect the good name and legacy you have built over the years. You should not allow yourself to be used by desperate political elements who may be more interested in their own ambitions than in the future of Nigeria,” the letter read.
The Social Commentator further warned Dr Jonathan to be wary of those advocating for his comeback, claiming many of them were previously opposed to his administration.
“Many of those calling for your return today were your antagonists, those who frustrated your government back then. You should be careful not to become a pawn in a game designed by others or else they will stain your white with their ‘roforofo’,” he said.
He maintained that Dr Jonathan’s legacy remains defined by his decision to concede defeat in 2015, which he described as a landmark moment in Nigeria’s democratic history.
“Your legacy was built through years of public service and your decision to put the country’s peace above personal ambition at a critical moment in Nigeria’s history. That legacy should not be put at risk because of the desperation of a few politicians,” he added.
Mr Adenuga also alleged that some of the promoters of Dr Jonathan’s return have lost credibility in the public space.
“The truth is that some of the people pushing you to contest have already damaged their own reputations. They should not be allowed to stain your legacy with their soiled hands. What they could not achieve on their own should not be pursued through your name and goodwill,” he stressed.
He concluded by urging the former president to remain above political manoeuvring and protect his place in history.
“History has been kind to you. Preserve that honour and remain above the political games of those who want to use your name for their own purposes,” he wrote.
Recall that former President Goodluck Jonathan recently emerged as the presidential candidate of the Kabiru Turaki-led Interim National Working Committee of the Peoples Democratic Party (PDP) following a special convention held in Abuja, where delegates ratified his nomination ahead of the 2027 general elections.
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