As I said previously, it is incredibly heartening to see a real debate about universal health insurance percolating here. (Sorry -- I figured I better get the pun out of my system.) It’s even more heartening to see that debate including a serious look at single-payer, an option so much of Washington seems ready to dismiss out-of-hand even though it works pretty darn well in most of the developed world.
Before we continue, though...
...I think it’s worth getting our definitions straight. We all throw around the term “single-payer” as if we all agreed about what it meant. But it comes in different varieties. To some people, any system in which all of the money for health insurance flows through the government (or government subsidiaries) is a single-payer system. By this definition, even something like the Clinton health care plan might have qualified as single-payer; even though people would have been choosing from among a set of private insurance plans, the money would have flowed through the government.
To other people, single-payer means not only financing health benefits through the government but actually administering them through the government – i.e, the way that Canada and France and a bunch of other countries do. (Note that these systems
don’t necessarily have to preclude private insurance as a supplement or alternative.)
Personally, I tend to use this second, more limited definition of single-payer. I tend to call other systems, from the voucher scheme that
Emanuel and Fuchs advocate to something more closely resembling the Clinton plan, “competiton” models (although the term obviously encompasses quite a variety of ideas).
Whoa. Pretty confusing, huh? That brings me to my next point, which again will echo something others have written.
This is a fine debate to be having within the liberal policy community right now; putting out new ideas is a great way to generate discussion and, ultimately, politically momentum. But I think it makes sense for everybody to keep an open mind on both the policy and political questions.
Oh, I love a policy food-fight as much as the next guy. I’ve even been known to instigate them. But talking up this or that idea is one thing; trashing the others as hopeless is quite another. Fans of single-payer should not preemptively dismiss competition models simply because they involve the private insurance industry; competition advocates should not dismiss single-payer just because it seems to them a harder reach politically. Lately the latter has been happening a lot more than the former, particularly in respectable political circles, but it works both ways.
I don’t say this primarily for political reasons, although my feelings about the virtues of universal health care should be pretty obvious by now. I say this because I think it’s pretty foolish on substantive grounds. The fact is, you can make sensible arguments for either single-payer or competition models.
Matt and
Greg have touched upon a few of them already. I’m a bit more inclined to single-payer these days, but I have very mixed feelings. And I think which system you prefer boils down to guesses about how a model taken from overseas will work in this country, what you like and don’t like about Medicare, tough philosophical questions about which kinds of cost control are more fair, and so on. I have my informed opinions on these, as does everybody in this debate, but I’m not 100 percent certain about them.
One other thing: If you want to get a plan passed, I think that settling on the best model is far less important right now than creating an unshakeable political consensus around the idea of universal coverage – something strong enough to withstand the inevitable
interest group onslaught that will greet any serious reform proposal. I don’t think that such a consensus exists right now. (Matthew Holt, who moonlights as a blogger when he’s not being a health care consultant, offers some very good reasons why
here.)
Since I do think the debate over models is worthy, I’ll pose two more questions about policy – one each to Matt and Greg, who’ve done such a nice job posting on this already. (Others welcome to chime in, too...)
Matt, in your post on this you never answered Greg’s point about disruption (perhaps just for space reasons). I think it’s worth considering. Put aside the politics for a second. (And I could make an argument for why competition models might still be an easier sell than single-payer.) Strictly in policy terms, minimizing disruption to existing arrangements has a certain virtue when you’re talking about such a huge portion of the economy, no matter how ludicrously constructed it is. Would you agree or disagree?
Greg, I think one problem competition advocates such as yourself tend to overlook is the extreme difficulty of preventing private insurance companies from gaming the system to cherry-pick the healthiest, cheapest-to-insure customers. (See
Brad Plummer on this point.) The best hope is slap enormous regulations on the private plans, in which case you end up with the 1200 page monstrosity of the Clinton plan, and even then there’s no guarantee that it will work. Doesn’t that cut against the politically viable argument? Might it not outweigh the alleged virtues you cite?
Lastly, to both of you: One of the best ideas I’ve seen – I think it comes from Jacob Hacker – is a back-door, single-payer proposal, where you allow everybody to buy in to Medicare but allow existing arrangements to continue. There’s a messy transition period, but over time the idea is that most people end up in the Medicare system and the employer-system falls away in stages. You get the virtues of single-payer (eventually, anyway) but without the massive jolt up front. Thoughts?
I haven't seen a single persuasive argument against single payer on the merits. What I have seen are political arguments (won't pass, the insurance companies are too powerful), ideological arguments (the private sector is always more efficient than the government), and arguments about the difficulty of transition (will put a lot of people out of work, will bankrupt some insurance companies).
The point is, none of these arguments answer the claim of single payer proponents that this has been demonstrated to be the best way to deliver health care. Indeed, I can't think of a single reason why you would want an insurance company to be sucking up large portions of the health care dollar for administrative costs. (Believe it or not, not only does the left understand this, but conservatives understand this too-- the whole point of Medical Savings Accounts, however flawed the proposal is on the merits, is to direct payments directly from consumers to providers without the inefficiencies and externalities of insurance.)
I have a feeling-- though nobody says this-- that much of the opposition to single payer among many Democrats is much more based on a vague notion that a government takeover of health care seems too "left", too "socialist". This is not the only issue where this plays out-- does anyone doubt that many Democrats gave zero thought to the practicalities and potential problems with the Iraq war before deciding to support it? After all, opposing it looked too "dovish", too "peacenik", too "left".
I think there are a lot of Democrats who like to think of themselves as smart and realistic and the Dennis Kucinich wing of the party as dumb and pie-in-the-sky. Single payer health care comes out of the Kucinich wing, it's a big government policy, therefore it must be a bad idea. Better to do something that relies on "public-private partnership" and "managed competition". It's the "third way".
The truth is, single payer will work if we pass it. We know that because it works in other countries. Sure, it will be hard to pass, and there will be pains in transition, but once we get it going, it will deliver quality medical care efficiently.
In contrast, there's no proof that any of these "managed competition" plans will work. There's no proof that they will cut costs and no proof that they will deliver quality care. So why endorse the unproven over the proven? Is it more important to make it clear that we don't agree with the unreconstructed Left than it is to do the right thing?
June 16, 2005 11:42 AM | Reply | Permalink
First of all, I definitely agree that we need to be building consensus around the notion that the government should make sure everyone has access to healthcare starting now. What do you think that political process looks like?
Second I work in IT in a medical lab, and I've been hearing a lot recently about how serious penetration of IT into healthcare is going to seriously lower costs. Certainly there are huge opportunities for that. If that turns out to be true, it will be in no small measure because of the elimination of a lot of paper-pushing jobs in the medical and insurance industries. So isn't there a "jolt" coming anyway? Is that a setback or an opportunity for universal healthcare?
June 16, 2005 11:50 AM | Reply | Permalink
If the entire premise of the system now from the standpoint of private insurance companies is that there are powerful incentives for them to cherry-pick customers or else get bled to death and go out of business, the responses to that seem to be primarily twofold.
One is that we can try to regulate the hell out of the private insurance companies to try to both cover everyone and get costs under control. Others with more expertise than this Joe Citizen can comment on how likely it is that there are approaches discoverable by very smart human beings which can accomplish this. Going this route does not necessarily make such an approach impossible to explain well enough to members of Congress, the media, and ordinary citizens. But it would seem to make that crucial task more difficult.
The other basic option would be to relegate, through adoption of some form of "single-payer" plan, private insurance companies to the market for covering benefits not covered as part of the basic options offered under the new system.
Re the consensus or lack of consensus on universal coverage as a goal, universal, as in 100% of Americans actually enrolling for health insurance coverage, may not be a practical goal. There are just too many ways for individuals to fall through the cracks. What would count as universal coverage? 98%? 95%? I support the goal of seeking to make coverage easily available to everyone, recognizing some do not even use the health care system for a variety of reasons and that lack of access to health care providers located anywhere near them is one reason why.
I don't see how employment-based plans can get us the crucial benefits of greater job mobility and one less important barrier to entrepreneurship than exists now. If you have as many concerns about the middle class job base in the US over the next few decades as I do, that should count for quite a bit I would think. Most Dems are, like me, committed to universal coverage on basic social justice grounds. But the economic appeal of single-payer seems to me to cut across political ideologies. If it's pretty much a consensus among the sane that as the middle class goes so goes the country (later if not sooner), there ought to be a premium attached to whichever health care approach is most likely to get us good economic growth.
Likewise, from the standpoint of getting costs under control, having most of the system's financing administered by or through the government would seem to provide more direct, less complex, and in these senses more practical ways of getting control over costs than trying to do so by regulating the mishmash in place now. The sheer complexity of the system makes the law of unforseen consequences even more difficult to escape than usual if we try a regulatory route. It seems like one giant shell game, except there are so many shells no single policy expert or groups of experts can even know where they all are.
Your idea at the close of the post about opening up Medicare and transitioning more gradually in that manner sounds attractive from a policy implementation as well as an advocacy standpoint.
But I say again I am just a Joe Citizen who is basing my take on all this from the standpoint of what a common sense, broad public interest standpoint seems to point towards.
June 16, 2005 12:22 PM | Reply | Permalink
Beyond the issue itself, the health care debate also presents you with an opportunity to redeem government.
Make the case that there are some things that are the responsbility of government (providing for the general welfare) and others that work better if left to businesses.
Argue that relieving businesses of the increasingly heavy burden of providing health care insurance frees them to concentrate on their products and services.
Point out how irrational it is that we are often encouraged to pool our resources into mutual funds and private insurance pools but are somehow branded communist or socialist if we try to do the same through the government.
I am a centrist (just slightly left and slightly liberatarian) but I am getting the impression that the centrists of the DLC are giving a little too much credit to their fiscal policies of the 1990's, which were okay, and not giving enough to the unbelievable bull market during the same time. It has made them a little too business friendly which has made them too timid in their proposals.
There is a place in society for both but government, not business, should be at the top of the organizational chart.
I recognize that the health insurance industry is going to fight very hard to keep their place of the action. They have a lot to lose. And I am sure Wall Street and the banks don't want to lose all that cash flowing their way either. But they are the ones who aggravated the problem by failing to address it before.
On the other hand, I am not really looking forward to handing the current government that much money either. They haven't been very prudent with our Social Security, spending it before them even get it. Maybe the compromise needs to be worked out at the investment level. Why overcomplicate peoples lives with vouchers and choices to accomplish something that can be negotiated another way.
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June 16, 2005 12:55 PM | Reply | Permalink
Steve Chapman has a pretty good argument against Canada's single taxpayer system in today's Chicago Tribune.
http://www.chicagotribune.com/news/columnists/chi-0506160113jun16
,1,2419018.column?coll=chi-homepagenews2-utl
June 16, 2005 1:10 PM | Reply | Permalink
When the Bushies were pitching the Iraq War, they sold the endstate, right?
They didn't let themselves get wrapped around the axle describing the messy transition.
June 16, 2005 1:34 PM | Reply | Permalink
I'm more on the incrementalist/voucher side than the single payer side, because I agree with Howard Dean: first you get everybody into the system in the simplest, fastest way possiblele; and then you can have your big, knock-down drag out fights about how best to reform the system.
It's fine to create & propose your ideal single-payer or voucher plans, but you should make clear your highest priority is the uninsured, and not more fundamental, ambitious reforms of the entire health-care system.
The political advantage of vouchers is that it doesn't require a fight to the death with the insurance companies. The political advantage of single-payer is that it doesn't require raising taxes. Which is politically easier depends on whether you think it will be harder to raise taxes or harder to force the insurance companies (and their employees) out of business. I personally think raising taxes will be easier.
More broadly, any political push for health care has to clearly answer the voter's two basic questions without getting too bogged down in detail: 1) What'll it cost? 2) What do we get for it?.
As for what it costs, Brad Plumer has suggested a 100 billion bucks as the cost of universal health care. That comes to about 300 dollars per American citizen, maybe 500-700 dollars per taxpayer.
As for what taxpayers will get for it, I think the best answer is in this report from the Institute of Medicine of the National Academies:
http://www.iom.edu/report.asp?id=17632
"Lack of health insurance causes roughly 18,000 unnecessary deaths every year in the United States"
That means, perhaps, that by insuring the uninsured, we can save 18000 lives a year. That's like preventing six 9/11's a year. And of course, we can also make the case that most voters benefit personally as well, perhaps by having expanded access to preventive care, and also from the peace of mind of having guaranteed access to affordable, quality health care in case they get sick.
Wouldn't it be interesting if the Democrats, on behalf of those 18000 people whose lives are endangered, threatened to filibuster all non-security legislation unless & until the Republicans addressed the issue of health care?
June 16, 2005 1:55 PM | Reply | Permalink
It appears to me that those who are ardent supporters of having employers pay for our health care insurance are those who just don't want to pay more taxes, even if it is for more services. Clearly, if we do go to a single payer system - one where the government is the insurance agency - then taxes have to rise to cover that very large cost. Why is it that no one wants to discuss this? Do we really think that it is now ok to just use deficit financing to pay for our health care?
This whole discussion needs to consider how we pay for health care right up front. Today we pay for it through medical insurance, through medicare taxes, and through direct payments to health care providers. So, when we talk about single payer systems, let us include the fact that we will all pay higher taxes, but save an equal or greater amount in other health care costs. And, when we talk about running the system through insurance companies, let us also discuss how this will impact our monthly health care costs, whether through taxes or through direct payments to insurance companies.
June 16, 2005 2:02 PM | Reply | Permalink
I didn't find that editorial to be particularly impressive. But then, I have lived in Canada, have enjoyed the benefits of their health system, and can make a direct comparison.
June 16, 2005 2:07 PM | Reply | Permalink
I posted a number of comments on Jonathan's earlier post on healthcare reform. I'm not going to rehash all of m arguments from that post, but I would point out a number of things on the politics and policy side.
In terms of politics, the 1993/4 experience proved that people don't care about insuring the uninsured, so Democrats need to back off that argument. A better argument for healthcare reform that covers everyone is that it protects you and your family in the event that you lose your job. It is very important to make the distinction that any change in the way healthcare is organized in the U.S. is intended to increase the personal health security of working Americans and is not a new benefit program for those who don't work (Republicans might say "choose not to work").
On the policy front, it seems to me that there a lot of low-ball estimates for how much a comprehensive healthcare system would actually cost. In the comments thread to this post someone made a claim that sounded like it would cost only $100 billion to provide health insurance to all Americans. There is no way that number can be correct. I could believe that it will cost AT LEAST 100 billion to provide health insurance to the currently uninsured, but that would not also provide coverage to existing Americans.
I also tend to think that those of us on the political Left tend to ignore various other goals of the healthcare system that do not involve individual health. If we are going to try and take costs out of the current healthcare system, then we can not naively look to the manufacturers of medical products and push the reimbursement for existing and new devics and drugs so far down that it is no longer profitable to try and develop new treatments.
One area of oppotunity for cost control that is often ignored is to try and influence the behavior of physicians who tend to make decisions based on making every effort for individual patients and ignoring the society-wide impact of those decisions. One example is providing very expensive cancer therapies that have a low chance of working, but making such a change stick would require an enormous alteration in how doctors work and act.
June 16, 2005 3:15 PM | Reply | Permalink
I agree with sparre that we shouldn't impose such stringent cost controls that innovation by pharmaceutical companies and medical technology companies is stifled. But (1) where's the evidence of this actually happening, anywhere, (2) as long as the rest of the civilized world has cost controls and we don't, we are simply paying a huge subsidy to the rest of the world and allowing them to free ride off our inflated medical prices, and (3), most importantly, what the heck does preserving the role of insurance companies have anything to do with that? Indeed, HMO's impose cost controls now. The only difference is, the savings go to HMO's, rather than being directed towards covering more patients.
The other thing sparre argues is that nobody gives a crap about universal coverage. That may be quite true as a matter of spin, but the fact of the matter is, universal coverage benefits everyone, and not simply because people lose their jobs as sparre mentions. Universal coverage also increases the risk pool and ensures that sick people don't get adversely selected out of insurance. And universal coverage is also a non-negotiable moral principle-- nobody should die or suffer debilitating illness because of a preventable or easily treated medical condition, simply because they don't have the money to pay for care and their employer does not provide health care. Such moral arguments sound too much like "socialism", I know, but the fact is, there is a moral principle at stake here and we ought to stand on that principle.
June 16, 2005 3:28 PM | Reply | Permalink
Anyone who has attempted acquiring private individual insurance coverage as I am now doing knows that the system is broken. God help anyone who has the slightest imperfection in his / her health record. Insurance companies rule the roost and their God is the almighty PRE EXISTING CONDITINS.
June 16, 2005 7:00 PM | Reply | Permalink
On evidence of where price controls are causing stagnant development and innovation there are two major markets where that problem exists.
1) HIV treatments: there is relatively little research for new anti-HIV therapies in comparison to the amount of money spent on new treatments for cancer
2) Antimicrobials: very little money and effort is being spent on new antimicrobial treatments, though that is not due to price controls but rather that many hospitals are interested in imposing usage controls on new antimicrobials to preserve their effectiveness against existing and new drug resistant microbes.
June 18, 2005 9:08 AM | Reply | Permalink