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Even Jane is moderating...


 

 

It's important for the general well-being of our nation that we work together on the problem of keeping the most number of citizens healthy for the longest amount of time possible in the most efficient way possible. That's easily said. But what can we do about it?  Watch and see what Congress will do; it will surprise you.

"We want to build upon what's best  about our current system, but we have to change a number of things in order to make it work for the future," said Sen. Olympia Snowe to John Harwood.

"I think the right policy will garner votes," she said.

Thank you for your constructive voice, Senator. But many Americans these days, on both ends of the political spectrum, have forsaken their faith in a Congress that can actually produce the "right policy."  Bahhumbug! to you skeptics who are ready to give up on the system because you think it is corrupt beyond repair. Sure, there is lobbying that dilutes the outcomes of proposed legislation.  And yes, vested interests do make money inappropriately off the process. What else is new in the history of the human race?

 

But this health care thing is different. You see, Congress is now under a public microscope, thanks to a citizenry that is fervently engaging in public discourse. If civil people (This means you!?) will get involved with the debate, the mayhem of upstart rabble-rousers will be drowned out by the voice of reason. This is how democracy is supposed to work. Senators and
Congressman will pressed, literally, by the voice of the people, into true responsibility.

 

The favorable difference in outcome in this case--the proposed health care Act of 2009--is that everybody is watching.  We have a situation here where the center can, and will, produce a finished legislative product  that is acceptable to the extremes of both parties. Sure, single-payer went down before this drama even started.  And the public option--well, it is evolving-- but its inspired emphasis on universal coverage is metamorphosing into a form that will pass effectively through this moment in time-- this unique window of opportunity.  Health care reform is an idea whose time has come.

 

Sen. Snowe points out that "some very important pieces" have been assembled, and will serve as a basis upon which the Senate and House can work toward a real plan for public health--a plan that will prove as significant in our national history as Medicare has shown itself to be.

 

Setting up "exchanges" will become the nucleus of our new health care system. "Exchanges" are the new, improved, streamlined public option, because they will ultimately(maybe not immediately) include legislative mechanisms by which competition will thrive (due to price-shopping) and egregious policies (as deniability due to pre-existing conditions) will be weeded out. If our informed citizenry do not drop the ball, here is something our nation can work with to progress toward better public health.

 

But there's a fly in the ointment: Fiscal responsibility must be maintained, or at least attempted. We can't spend money we don't have. Or at least we must pretend to have it (as does the Fed and the Treas.) That's a bigger factor than you think. In the big picture, that's a health issue as well.

And why do we need to balance a move toward universal health care coverage with provisions for fiscal responsibility?  Sean Brodrick of Uncommon Wisdom  writes: "The Ponzi scheme of the U.S. government buying its own debt can't go on forever. Eventually, the U.S. dollar will crumble, and probably U.S.-dollar-denominated debt along with it."

  

So the very real possibility of US Government insolvency and bankruptcy must be weighed in our set (public) options. The deficit may seem invisible to most folks now, but in the long run we'll have to pay that 11-trillion-dollar piper his fees-for-service, probably at some future date, and most likely payable not in dollars but in a new world reserve currency such as SDRs or RNBs.

 

Monetarily and medically, we've got to get this ship of state charted on a viable path.

 

Why, even Paul Krugman softened a little when he saw the content of the "Baucus" plan, although I do not like to call it that because it is destined, as a work in progress, to become the President's de facto plan. Mr. Krugman writes:

 "Senator Baucus's mark is better than many of us expected. If it serves as a basis for negotiation, and the result of those negotiations is a plan that's stronger, not weaker, reformers are going to have to make some hard choices about the degree of disappointment they're willing to live with." Krugman also mentions: "Several European countries, including Switzerland and the Netherlands, have managed to achieve universal coverage with a mainly private insurance system."

 

If our nation is to be delivered from bad health, bankruptcy, incivility and certain demise,  moderation  must become the order of the day. And we do have a compass with which to guide us through this stabilizing maneuver.  A big part of our strategy toward that end is found in our Constitution, whic is, according to Sen. Orrin Hatch, "the oldest written charter of government in use in the world today." It has been proven to be a universal template of incredible utility.  Justice Sotomayor agrees: "For as long as I can remember, I have been inspired by the achievement of our Founding Fathers. They set forth principles that have endured for more than two centuries. Those principles are as meaningful and relevant in each generation as the generation before."   

 

We have a heritage of getting problems worked out. Between the Legislative, the Executive, and the Judicial branches of our democratic/republican government, we can lean on that framework of structured collective responsibility--the  Constitution-- to guide us through these perilous times. We can do it, but we've got to start now. It's not time for anyone to take their ball and go home.

 

This moderation thing has got to be where it's at.  Why, even Jane Fonda moves toward the center these days, as can be seen in her comment about the explosive apartheid situation in our ally nation, Israel: "it can become counterproductive to inflame rather than explain and this means to hear the narratives of both sides..."


Carey Rowland, author Glass half-Full

 

 


9 Comments

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You do realize that the CBO scored the plan with the public option as deficit friendly ... right? It sort of sounds like you are reflecting industry talking points uncritically.

This post is strong on nice-sounding opinion, weak on honest presentation of the facts.

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One other thing, the Netherlands is not a private insurance system as defined by American standards. The government covers 100% of all care related to long term and permanent conditions, mandates prices and provides claim-level auditing and reimbursement that ensures all companies achieve parity. The government pays the majority of the premium for every citizen regardless of individual resources.

Switzerland's system offers a national health insurance (public option) in competition with private insurance and prohibits insurance carriers from making ANY profit on policies offering the compulsory level of benefits. These companies profit exclusively by offering supplementary packages.

It seems neither situation really applies to any proposal on the table.

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Thanks for the corrections. You're right that I'm weak on presentations of the facts. I'm a citizen trying to figure all this out, using the blogosphere as a sounding board to draw out the facts. I do recall reading somewhere about that CBO report, and then a comment that the CBO's projections for revenues are unrealistic. What about that?
I think the public option is a good idea, and I hope it makes it through the final version. But, like the President, I don't want to see some idealized version of "public option" knock any progressive developments in the Senate out of contention.
As far as Netherlands and Switzerland go, thanks for the information. The blend of public/private in those two countries is, I suppose, what Mr. Krugman was referring to when he wrote "mainly private insurance system.
I really think that whatever form our emerging plan takes, it will be a blend of public and private. It has to be in order to get through Congress. And the public option, in its original conception, is just one plan among many in the "exchange" that Sen. Snowe mentioned.

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Thinking about it ... if they pass HR3200 with the exchanges, defining a "essential" benefits package with the public option - the proposed system would be a lot more like Switzerland than the Netherlands. The big difference being that the Swiss eliminate the ability to profit from the compulsory plan (the "essential" plan under the exchange) ... which is huge IMO. If we were to do that and allow profit only on the "premuim" and "enhanced" plans that would be too cool. I wouldn't even mind mandates so much.

The CBO scores the Baucus plan (all 4 of the others have a public option) well on the *deficit* side of things, but there are some major systemic flaws. Over on Empty Wheel, they've been breaking down the components and explain some of the systemic problems (the link is to an index of most articles related to the Baucus plan). The analysis is well-sourced and pretty thorough. Although they come at it from a point of criticism they ground that criticism in hard facts.

In all the versions with a Public Option, it is pretty hobbled. On the House side, the extent/mechanism of hobbling seems to be one major difference between the bills. The way they've done it is essentially a defacto trigger anyhow. The secretary will only expand eligibility for participation if the private market is failing to perform. Triggers prevent the structure from being in place if that determination is made ... delaying the ability to implement and allowing the insurance companies a longer window of profits while the plan is created. That's why Pelosi threatened to basically expand medicare if they force triggers - it's already in place and comes in with huge negotiating power (not allowing the use of medicare negotiating leverage is one way they hobbled the public option).

The biggest problem we have is that while people talk a good game in generalities, there really isn't anything in any of the bills that specifically brings premiums down (in fact, the Baucus bill seems to have some things built in specifically designed to ensure that rising premiums will always be subsidized). While the exchange will set medical loss ratios (the percentage of premium that must be spent on care) most analysis seems to indicate that this alone won't necessarily bring premiums down. With compulsory coverage, that means without the Public Option there is literally no backstop. We are at the whim of whatever loopholes the lobby has managed to slip into a 1000+ page bill - and required by law to pay the premiums no matter how high they go. It is already an industry friendly bill, that generosity was balanced against the limiting factor provided by the public option.

One example, by eliminating the preexisting condition the amount that insurance companies will have to spend to carry will increase significantly. It appears they should be able to roll 100% of that added cost into premiums and actually improve their medical loss ratio slightly. For example, if a $4000 policy provides $2000 worth of health services the ratio would be .5; if health expenditures increase by $1000 based on preexisting conditions they could increase the premium by $1000 and actually improve their ratio ($3000/$5000 = .6). So if the ratios are set roughly based on the current levels (to theoretically "freeze" premiums) we could see a big spike once the preexisting conditions kick in as the insurance companies protect their profits. In the House Education and Labor version - the medical loss ratio would be a minimum of .85 (which is pretty good), other versions of the bill do not specify a minimum and it would become a lobbyist free-for-all.

There is a lot of good stuff in the bill (as Fred below will tell you). But there are very good reasons to insist on the Public Option being included. Under a public option, the ratio still applies but it is not a floor. In other words, if the services can be provided less expensively the savings are passed on to the consumer. This is not the case with a private plan where any savings will unquestionably be passed on to shareholders.

Well now, that was one hell of a spew ... sorry. Kind of getting this together in my own head too. I just read the bills recently and am trying to contextualize it.

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Oh damn, was off base on one point: "Swiss National Insurance" is actually a private company. But I also didn't mention that health care rates are nationally negotiated ... so all insurers pay exactly the same for all medical services.

I kind of think tossing out other countries' health systems is sort of BS in our national debate anyhow because none of them are structured like the proposals on the table. But they are interesting to look at.

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Re: "getting this together in my head," that's what, I hope, all people who care about the health of this nation are doing now in response to these developments... instead of, say, getting mad and giving up. And you said...

"In other words, if the services can be provided less expensively the savings are passed on to the consumer."

That is, in essence, what it's all about. Right?

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Good post, Carey. Other nations cover all their citizens at half the cost, and with better outcomes, so we can certainly do better ourselves. Both the Netherlands and Switzerland are essentially private insurer systems, with the former using public insurance only for long term and disability cases. In essence, under appropriate regulation, an exclusively private system can work quite well. Most other nations, however, employ either an exclusively public system (Spain, Italy), or a combination of private and public insurance, with each occupying a separate niche. France is a prototypical example. The public insurance component covers about 70 percent of costs, but most French citizens purchase supplemental private insurance to avoid excessive out of pocket expenses.

Like you, I'm increasingly confident that what eventually emerges from Congress will find most objective observers responding with a mix of gratitude and disappointment, but the gratitude will predominate.

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It should be noted that Switzerland has the second most expensive health care in the modern world behind the US.

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Fred, re: "most French citizens purchase supplemental private insurance to avoid excessive out of pocket expenses."

That surprises me--that supplemental policies are used to shield one's pocketbook from the out-of-pocket expenses. I think of it the other way around. Any private coverage that I would seek would be shield me, my household, estate, etc from "the big one," the disease or accident that debilitates financially as well as physically.

And this would be the element that I would most like to see in health insurance reform--a governmental assurance to prevent financial demise as a result of accident/injury.

The day-to-day stuff, the copays--that's nickel and dime stuff. I don't (personally) mind bearing that burden. We all have to do our part, right?
The public option for me (and I suppose for most Americans) would mean this: I can, according to the advice of my doctor (health care providers), check into my local hospital knowing that I will receive adequate, efficient care to reasonably solve my health problem without having my life assets go up in medical bill smoke.

Is there some way to set this outcome as a provision of the final plan? Methinks this is what America is really needing.

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Carey Rowland

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