The NYT reports there is a critical healthcare reform meeting at the White House today, in which the Administration will confer with key Senators debating whether reform will include a public health insurance option that consumers can freely choose in lieu of private insurance plans.
Digby reminds us that Congressional Progressives have been pushing strongly for a public health insurance option and need our support in arguing against the industry and centrists who seem perfectly willing to sabotage reform by putting off, perhaps forever, any meaningful public option. You can support the progressives’ efforts by calling members of the Congressional Progressive Caucus — the phone numbers are here.
The private insurance companies and Big Pharma have tried to kill the public option. And failing that, they’re arguing that a public option should only be considered at some future date, following a set of "triggers" that would, as Mike Lux predicts, be designed to effectively kill the concept. We’ve seen this before, in the Medicare Part D drug legislation, which allowed a public option for drug provision only if certain unlikely triggering events occurred.
Just to recap where we are on the continuum, the various views are:
0. Don’t allow any public insurance plan option — that’s the private insurance industry’s and Big Pharma’s preferred position, so they’ve been running ads disparaging the public option as akin the (misrepresented) evils of Canada’s single-payer system and railing against some imagined government interference in between you and your doctor. They’re backed strongly by most Republicans, who are closely following Republican strategist Frank Luntz’ deceptive talking points. More on Luntz here, here and here.
1. Allow a public insurance plan option only after some triggering event (e.g., the failure of the industry to meet its cost-reduction goals which it sort-of promised to Obama). That’s industry’s fallback position, and it’s supported by (apparently) Sen. Baucus and other centrists, and is being pushed by Sens. Grassley and Snowe. HuffPo’s Ryan Grim reports that Baucus’ aides recently got hammered at hometown meetings in Montana over his refusing to allow single-payer advocates from participating and for fronting for industry proposals.
2. If a public insurance plan option is allowed, hobble it: limit who can get access to it, how it’s financed, when/how it’s allowed to compete against private insurance plans. There are many possible variations of this, and one was proposed by Sen. Schumer last month. The rhetorical idea is, let’s have "fair competition" so that the private plans won’t be unduly disdvantaged by whatever administration cost advantages a public plan might have. Key limits would be forcing the public plan to survive on premiums with no access to federal funding (except possibly for startup funding?).
3. Allow a public insurance plan option that looks/works like Medicare, but is separate from Medicare; also broaden eligibility for more people to get Medicare directly. Sen. Kennedy’s Health, Education, Labor and Pensions Committee (HELP) has proposed a concept along these lines, and his Committee will have an alternative proposal to the one likely to emerge from Sen. Baucus/Grassley Finance Committee.
4. Make Medicare the public option and open it up to everyone who wants it, but not make it mandatory. (In all public insurance option plans, people could keep whatever they have now, but they could choose the public option if/when they lost their coverage or, in the most open proposals, at any time). Consumers would be free to choose public or private options.
[I should add:] 5. A full single-payer type approach, which has widespread public support. This might replace/restrict or exclude the choice of private options.
There are many possibilities within/between these alternatives, and this week, or next, the Senate will be moving towards some definition.
This isn’t the only major decision point; they still have to decide how to fund whatever they do. For example, the proposal to begin taxing the value of employer-provided benefits, at least for the wealthiest employees or most expensive plans, is on the table, even though Obama opposed McCain’s version of this during the campaign.
And reforms will/must also include other measures to control costs. On that point, this New Yorker article, The Cost Conundrum, by Atul Gawande is well worth reading.
Again, phone numbers for the Congressional Progressive Caucus members are here. Let them know what you think.
More from Sam Stein, quoting Schumer on the deception behind the trigger concept:
Senator Chuck Schumer has insisted that, if anything, "reasonable criteria for triggering a public plan has already been met."
"Premiums are high," the New York Democrat said, "and either one or two insurers dominate the market. As we’ve seen with Medicare part D, a trigger option has so far meant no public option at all."





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Wow, I never saw that coming.
scarecrow, under
could you please list some kind of single payer? it is, after all, the most popular reform with the public.
thanks.
p.s. when i make my calls, i’m saying i want single payer on the table.
Do you regard Medicare as a form of single payer?
Thanks, scarecrow. That’s a very succinct and valuable summary of the major divisions among feasible (for now, at least) possibilities. Like selise, I’m pissed, not at you, that single payer has been so marginalized that it’s off the table and so off the continuum.
A Medicare-like public plan or a Medicare extension — as part of a public option in which it is intended to compete with private insurance — would NOT be single payer, because:
1. The economies of putting everyone, high risk and low, into a single risk pool would be lost, with the public plan serving as a dumping ground for high-risk patients that the private insurers don’t want, and
2. The billing and insurance-liaison infrastructure that eats away resources on the health care provider side would need to remain in place, because providers would, despite broadened availability of Medicare, still need to deal with private insurers, and their bureaucracies, claim denials, and related bullshit.
Whether you think it’s on the table depends on how you define it; it’s off the table for Baucus, but I suspect for some progressives, Medicare is a form of single payer, (and VA, where the providers are employees, is even stronger) but they don’t find it necessary to call it that. It’s annoying, but this is politics, and if we got something like/close to concept 4, that would be a major advance in my view.
Again, I’m urging folks to tell our officials what they think/want; I’m not telling anyone what to say or how to phrase it.
thanks to you too, for as per usual making the point much better than i ever could.
i just listened to an interview with darcy burner on grit tv and am so pissed off with our so-call progressives and our inability to hold them accountable that i can barely type.
wrt to 1, there’s more going on that I didn’t mention. I assume that if Congress says, “we want a public option to compete against private insurance,” then there will be companion rules that say all competitors must serve everyone — no exclusions for prior conditions, and no discrimination between individuals. The Privates said they’d accept these conditions, but only if everyone has to purchase coverage, and there’s not public option. So these other concepts are on the table, and we have to get the right mix.
I use the Medicare concept broadly, to define a system in which most costs are covered by taxes plus minor to no premiums/co-payments. You could define a version that is totally tax-covered, no co-payments, and you never have to choose an insurer, because that’s been reduced to administrative processing behind the scenes. Consumers would receive care and not worry or care about all that. I think you’d define that as a version of single-payer. Yes?
for the age group that is covered, yes medicare is single payer (although one in of need major reform). but a medicare like option in competition with private insurance is most certainly NOT single payer – mainly for the reasons ralphbon lists and also because one of the risks of single payer (see canada) is inadequate funding. with everyone covered by the same plan, the incentives to have it adequately funded are a little more aligned across economic classes.
Hey, can I post my snotty retort here to those who say they don’t want the government to get in the middle of doctor/patient relationships (cuz the insurance co.s already are). My retort is that I guess abortion and women’s reproductive rights are the one big exception to THAT concern.
I don’t know. It seems to roll two current headlines into one tidy package for me. :[
great post, scarecrow. thanks for explaining it so clearly.
i meant your table — i know that most of the deecee dems don’t want to discuss it. just asking that it not be excluded from your list of policy options for us to discuss here.
See update.
(Sorry; miniralphbon is insisting on a game of catch right now. Back to you later.)
(((scarecrow)))
you are the best!
thank you.
OK, I’m going to make a bit of a campaign out of this:
Why don’t we start framing the health care debate thusly:
Health insurance companies are the buggy whip manufacturers of 1910…
Health insurance companies are the street-lamp lighters of 1890…
They no longer serve a useful purpose in society, and we should quit subsidizing them, let them die a natural death…
Anybody?
How about they are like the GMs and Chryslers still insisting on making gas guzzlers when gas prices are sky high?
Tax exempt not for profit health care corporations causing people to go bankrupt. Now someone tell me how these corporation relieve a burden of government in return for their tax exempt status? No single payer option, meanwhile mandated health care is still on the table. Why not use the tax code to control the escalating costs of health care by insurers and providers???? Oh yes no tax status and added layers of cost? Dumb!
Corporate servitude by any other name. You see the vast fortunes sucked out of the economy by oil whores and war racketeers is the liberty we have lost and continue to lose as now “CORPORATIONS” and the powerful people who run them and control our lives and continue to game the system for excessive profit!
A question? What is the percentage of corporations in the health service industry with tax exempt status? And why does Blue Cross Blue Shield have similar tax status as the United Way or a Church or the Boy Scouts???
Oil near $70.00 a barrel! $3.249 fro a gallon of gas by the 4th. Let the systemic rape of America continue, from energy to health care…………….
Any takers???
http://hydrogendiscoveries.wor…..n-project/
gannonguckert and dosido –
or that we have a choice: either make health insurance companies obsolete or continue with a policy that makes manufacturing jobs in this country obsolete (see gm).
right now, with employer based health insurance, we are continuing to put american jobs at a major disadvantage.
this is just insane policy. it’s bad for our health and it’s bad for our economy. the only thing it’s good for is health insurance companies and pols who want campaign contributions from same.
imo we should not be letting our congress and our president get away with this.
People here and elsewhere tend to overlook the fact that public health care in terms of the insurance model (medicaid/medicare) is also managed by private insurers. There’s no way they’re going to oppose that gravy train. The winners are usually the biggest in the business.
With AIG exploding, you’d think this model would be abandoned for good. But no! There are too many sticks-in-the-mud.
Single-payer is the only sensible solution.
It is time to dust-off John Edwards healthcare plan. If you don’t like him, change the name of it to suit yourself. But he had the right plan to get us on the right healthcare track toward single-payer.
I always go straight to the white house site and register my complaint. Then I start calling or writing others.
that’s an excellent point about private insurers in medicare and medicaid. i don’t know the amount of money involved though. do you?
here’s a bit from the discussion on bill moyers a week ago friday:
I just wrote this to Obama:
“Single payer health care is the only way to go. Insurance companies and corporations are not human beings and they are running this country right into the ground. I know it and you know it. Support the citizens and not big business.”
Probably won’t do any good but what the hell.
Here’s some anti-reform talking points sent to me as part of an economic analysis newsletter:
A public option isn’t going to cause thousands of specialists to pack up and move – availability of equipment and providers doesn’t evaporate because the public option insurance is writing the checks. So this scare mongering doesn’t resonate with me at all.
This article at the New Yorker really gets to an important point in the health care debate – the incentives for doctors and hospitals are just wrong.
Well worth reading that article. I come away thinking we should be framing health care as something that markets are intrinsically bad at delivering.
State Farm has been lobbying their customers and more importantly Florida legislators in order to eliminate price caps on premiums. See, State Farm has abandoned Florida homeowners making the state insurance pool (was to be a ‘last resort’ homeowners insurance) the only remaining viable alternative in the state.
Meanwhile, SF has been selling and maintaining all their Florida auto, life, and health insurance business unabated. IMHO, they should have been excluded from conducting any new business in the state.
They call for their policy holders to contact Governor Closet Crist to ask him to sign the Freedom Of Choice Bill. (See. when there is no regulation wrt premium caps all the Insurance companies will come back to the Hurricane State!
This is how insurance companies operate.
I’m with you. I want single payer and I want the damn insurance to actually pay the bills. I don’t believe it will cost me more in taxes than I’m paying right now. Mandatory payroll deduction for everyone, and I’m sure I’ll save money. If not directly, because it will lower the cost for all businesses trying to keep up with skyrocketing health ins. costs.
A person who has private health insurance can still be bankrupted. It will remain thus as long as private insurers maintain most of the leverage.
We’re down to the money issue of the Obama administration. If the private option goes away- he will have accomplished nothing in terms of his own agenda. An economic recovery is necessary for re-election- a comprehensive universal health care plan with a private option is necessary to make his presidency worth having. If ya can’t do this Obama, we made a mistake putting you there.
Don’t forget about HR676 which is the House Version by Conyers with a long list of co-sponsors. It’s a single payer plan.
http://www.hr676.org/7.html
bmaz is upstairs!
Bye Bye American Pie
Here’s a more recent list of co-sponsors for HR676:
http://www.healthcare-now.org/hr-676/
If they want us to buy mandatory health insurance, then they have to lose the prior-history out. Too many people are hurt by that, especially when the insurance companies can go back more than a few years to find a reason to deny coverage.
I just received an email response from Nebraska Senator Ben Nelson (the state next door to me). Nelson is not open to the public option, despite his recent statement to constituents. The email is dated today, 6/2. In case anyone is interested, here’s his response:
“Thank you for contacting me regarding health care reform. I appreciate hearing from you on this critical issue.
As you know, one of the greatest economic concerns our nation faces – across the age spectrum – is access to affordable health care. Statistics show that approximately 47.3 million Americans lacked health coverage in 2006, or 16 percent of the U.S. population. Those who are insured continue to be hit by the spiraling costs of health care premiums, which have increased by about 87 percent since 2000.
The past few years have yielded a variety of proposals designed to tackle this growing problem, many focusing on the broader issue of universal health care and some attempting to address more specific issues within the system, such as prescription drug costs and pre-existing condition restrictions. I believe meaningful health care reform is within reach, and Congress must find a middle ground to improve care by lowering cost and expanding access.
Achieving cost containment and improving efficiency in our health care delivery system is the first order of business and a mission-critical component of reform. Congress took a step forward with the approval of the American Recovery and Reinvestment Act, P.L. 111-5, which made a down payment on advancing health information technology and comparative effectiveness research, giving patients access to improved health records and better evidence about which medical treatments may best serve their needs.
Americans also face difficult and inconsistent health coverage decisions, which prevent the marketplace from delivering the kind of efficiencies and responsiveness consumers require. To remedy this, we must demand that insurers compete on service and empower individuals with transparent information so they can easily compare co-pays, networks, provider quality measures, and access to medical records in order to make informed decisions about the coverage they deserve.
Thank you again for contacting me. Congress needs the input of all Americans to solve such an important issue, and I believe we must come together as a nation and collectively confront this shared challenge.”
Sincerely,
Ben Nelson
U.S. Senator
Thanks so much for the action alert and analysis!
Blessings to all
That could be part of the subsidy to the industry, but I had in mind the intermediaries as described for example in the wiki article on medicare:
If you google medicare private intermediaries, you’ll get some useful results, I think.
I should add that Centers for Medicare and Medicaid Services (CMS), was changed from Health Care Financing Administration (HCFA) by Tommy Thompson in 2001.
Is there some way we can start make loud noises a la Lieberman/Lamont on challenging Baucus, Wyder, Carper and the rest of these health care fascists?
FDL led the fight against Lieberman – the time is now to start the next few rounds.
…thank The Investor’s Business Daily for the data…
***********
That explains the crap analysis of health care in Canada. I wonder from where they got their ‘facts’. From the anatomy part that they sit on?
It might not make you happy, but very simply, America is no a Socialist state and government should govern rather than insure, manufacture or do other private sector things.
At least that’s my understanding of things.
I can’t imagine how it would be justified as Constitutional to mandate insurance purchase. It’s just bizarre to think about.
The same people who say doctors should be free to NOT take Medicare patients might be nuts enough to say a mandate is alright, but those positions are contradictory. Mandating doctors serve someone who won’t pay their full fee is a form of slavery and mandating people buy insurance is just as bad.
I see the public option as a safety net in concept. If the private sector can’t or won’t serve this crucial need of the public, then government steps in — in fine Liberal tradition — to provide service.
Conservatives and even centrist Dems might not care for this, but the onus is on them to explain away the 45million people who aren’t insured and how this can happen when the nation is paying twice what other wealthy countries pay (per capita or per GDP) for health care. It’s not a sustainable situation, so the only question is what to change to.
As a person who has had occasion to draw on the Canadian system because I live there, I can’t say how much stress is removed by knowing that you won’t go bankrupt if you need to get your appendix removed. Yes, you have to wait for elective surgery. But that’s what it is: elective. You have something that can’t wait, like a triple by-pass and it is done in a wink. As to the MRI’s, a lot of the ones in the States are there to drum up business. Canadian hospitals don’t need to do that: they’ve got plenty already. Canada may have its problems, but health dare isn’t one of them.
You have a very underdeveloped understanding of the meaning of insurance, due no doubt to lack of economics education. Your police force is insurance against getting robbed. The tax is your premium. It’s the same for all government services. The only difference from private insurance is that everyone is dumped in the same risk class.
Criminal and thief Rick Scott is dredging up Canadians to smear Canada’s system (and single-payer advocates) with a huge television campaign.
Do you have a take on his ‘testimonials’ that people have to wait for months for urgent surgical treatment?
thank you. much appreciated.