Most Representatives and Senators Are Engaged In Commendable Healthcare Reform Efforts
With exceptions, most of our Senators and Representatives are working diligently to devise a healthcare reform that will meet the needs of Americans, including Americans without current health insurance. To appreciate this, it is important to step back for an appropriate perspective.
During his presidential campaign, Barack Obama touted healthcare reform as his highest priority. The current system was unmanageable - it devastated families, rendered businesses non-competitive in the global marketplace, and was devouring more and more of our GDP every year. Obama proposed to change the current system by instituting a strong public option that would reduce excessive costs through competition, and guarantee coverage for all Americans - coverage they could never lose.
As president, Obama has not changed his view, but his vision encountered a huge obstacle around the time of the election - an impending collapse of the American economy. His first priority, once in office, became the restoration of our economic health. With his urging, Congress passed a $787 billion stimulus package. Along with most economists, the President expected two results from this. The first was that an infusion of money would stimulate job creation over the next two years, slowing and ultimately reversing unemployment, and providing consumers with the wherewithal to re-energize businesses at the heart of our economic growth. This is good. The second would be a major increase in the federal deficit that would last for years. This is bad.
Faced with the unwelcome deficit component of the stimulus, the Congress, much of the public, and many economists have insisted that outside of the stimulus, it would be dangerous to further magnify the deficit in any large measure - in other words, anything else would have to be paid for.
Enter the public option for healthcare reform. Almost all healthcare experts conclude it would greatly reduce the growth of healthcare costs - an urgent necessity. However, the savings would accrue to consumers, while the costs would be charged to the government. Even though the savings would substantially outweigh the costs, they would not appear on the federal balance sheet. Some mechanism was therefore necessary to defray the costs so as not to further inflate the federal deficit.
Legislators have been scrambling to identify cost-saving measures, and many have been proposed. Even in aggregate, however, they would not fully pay a public option bill estimated in the trillion dollar range. This leaves only one other practical option to complete the balance - an increase in taxes.
Our representatives in Congress do not aspire to martyrdom. They understand that tax increases are never popular, even in prosperous times, and all the less in times of economic difficulty. Except when failure to enact increases would be potentially catastrophic for our nation's future, they would not even countenance tax increases during a recession. It is striking, therefore, that an enormous effort is now underway to find tax increases that can be imposed on those who can afford them, and which would suffice to cover the remaining costs of a public option. These include suggestions to tax high end health insurance benefits, to increase income taxes on higher bracket individuals, to impose "sin taxes" on alcohol or sugary drinks, and a variety of other measures.
The final mix is uncertain, but while not courting martyrdom, these Representatives and Senators are displaying a fortitude and moral integrity worthy of their office in their willingness, on this particular issue, to take political risks for the nation's benefit. They do not always deserve this accolade, and some don't deserve it now, but many do. In turn, they deserve our commendation, our support, and among those who can afford it, some of our tax dollars.













Kennedy and Dodd's plan is currently estimated to cost about $600B, not $1Trillion over the 10 year projection.
July 11, 2009 4:08 PM | Reply | Permalink
600 BILLION --Remarkably close to the 630 billion President Obama placed in his 10 year budget outline. Coincidence or has someone been doing their homework?
July 12, 2009 8:46 AM | Reply | Permalink
While the HELP plan envisions a $600 cost it only covers an add'l 21 million of the 50 or so million uncovered. It only works if Medicaid is expanded to cover those earning up to 500% of the poverty level. That'll cost about a trillion. HELP has no control over Medicaid. It is the province of Baucus's Finance Committee. The House version is better.
July 12, 2009 9:58 AM | Reply | Permalink
If Congress does not come through with health care this fall, expect the carnage in the 2010 elections to look like 1994. Voters are highly ticked off--something that escapes the attention of Congress, particularly the Senate. Beware the wrath of voters.
July 11, 2009 4:43 PM | Reply | Permalink
At the risk of incurring some wrath, I hereby award you the Dayly Line of the Day Award for this here TPMCafe site, given to all of you from all of me for this gem:
The final mix is uncertain, but while not courting martyrdom, these Representatives and Senators are displaying a fortitude and moral integrity worthy of their office in their willingness, on this particular issue, to take political risks for the nation's benefit."
You know Sync, or OGD, or Miguel...well more than a few others but I think of the first two, will grab proposed legislation and then parse it. It takes a long time. Sync might show me where MSM has missed the entire point of a piece of legislation, but she does not perform this task in fifteen minutes.
There are so many pages of proposals floating around and, yes, as much as I hate to admit it, there are even repubs involved in trying to repair if not permanently fix a system that DOES NOT WORK.
Good for you. Good Post. Really.
July 11, 2009 6:22 PM | Reply | Permalink
http://www.youtube.com/watch?v=AijRBQf-ato
July 12, 2009 8:51 AM | Reply | Permalink
Great link Jonnie. Really fine rendition, have not heard it before.
I have a feeling you are into irony here, but thank you for this.
July 12, 2009 12:28 PM | Reply | Permalink
It wasn't so much "into irony", I now see it but can't take the credit. It was more of a romantic thought.
July 12, 2009 12:35 PM | Reply | Permalink
thanks Fred for the straight forward calm post. Some numbers, looking at my last pay stub:
income tax = 10.77%
soc sec = 6.22%
medicare = 1.2%
health insurance = 8.2%
so taking the cost of health insurance and adding it to medicare, 8.2% + 1.2% for a system like medicare for everyone,the cost would be 9.4% without a cost increase to me. Though it would not lower my cost personally it would benefit those who have no insurance at all for the same price. Status quo is for me to keep paying the same amount anyway and cover no one but my wife and myself,if we meet conditions, or pay the same price and cover everyone. Given this choice of course I would choose the medicare one. A choice we dont have to worry about because it cant be offered at this time, the reason being we cant kill all the leeches at once without killing the patient.It is a goal to work for though.
July 11, 2009 6:58 PM | Reply | Permalink
Keep in mind DonDi your employer matches that 1.2% you pay for Medicare and probably pays more than the 8.2% you pay for health insurance.
We simply can't afford to keep paying 17.5% of GDP for healthcare and expect our businesses to survive let alone thrive. The good news is if we drive down costs in the healthcare sector it will unleash every other US business sector. Hopefully that means there will be work to be found for those clerks at your doctors office and actuaries from insurance companies who are all going to be out of jobs.
There's a whole of lot of people who are "job locked" by pre-existing conditions. There's a whole lot of businesses that don't hire, don't expand in the good times, because the added cost of each new employee, largely driven by health insurance costs, is a crap shoot they don't dare risk.
American workers are the most productive in the world because we're the most expensive in the world. Not because our relative wages are more than anyone else's but we because cost so much to insure employers must squeeze more hours and get more work out of each of us to cover those costs.
July 12, 2009 10:16 AM | Reply | Permalink
You can't be serious!
Only a tiny minority of Congresspersons is involved in crafting and/or negotiating a "health care" fix. The remainder are hunkered down in foxholes and occasionally sticking their fingers above ground level to see which way the wind is blowing.
And it ain't blowing in the direction of real reform.
More than twice as many recent polling participants judged the issue of the deficit as more important than that of health care. And they're serious about it -- 58% say keeping the deficit down is important "even if takes longer for the economy to recover."
As for the public option almost half worry that their employers would drop health care coverage if a public option were made available. Public support for health care reform is fading fast, and there aren't many Congresspersons out there on the hustings beating the drum or leading a parade in the opposite direction.
July 12, 2009 4:09 AM | Reply | Permalink
Thank you.
July 12, 2009 9:55 AM | Reply | Permalink
Uhhhh ... So?
From that same question in the poll (see pdf here): Although 24% list the federal budget deficit as most important and 11% list health care, it must be noted that "federal taxes" was only listed as 4% in importance, but the key in my take on this issue was the 8% percent of respondents who listed that ALL are equally important to them. See Jonnienohand's comment below.
All the concerns listed in that particular question are all interdependent and important to the future economic well being of the economy and thereby the country as a whole.
In addition to the point about how people feel which is more important, the deficit or health care, the following is cited from that very same WSJ article, citing Obama words:
Now I have to say that at least Obama has the balls to come right out and basically state where he and his team feel the country is headed if we continue the same path that has been taken since the 1950s.
Your mileage may vary ... And I'm sure it does.
~OGD~
July 12, 2009 10:05 AM | Reply | Permalink
Cherry picking one WSJ poll doesn't make your case for me.
July 12, 2009 10:18 AM | Reply | Permalink
That was directed at Ellen.
July 12, 2009 10:20 AM | Reply | Permalink
No problemo ... Mark . . .
I know you were directing that at the "cherry picker."
~OGD~
July 12, 2009 10:26 AM | Reply | Permalink
I thought the case she's making is that Democrats are too busy hiding to SELL healthcare reform. Meanwhile, the Republicans are using the media effectively to kill it.
I assure you my Senator is doing NOTHING. Her position on healthcare is totally obscure and it's so well hidden on her web site that you have to search to find it.
July 12, 2009 10:27 AM | Reply | Permalink
It's not a legislator's job to sell reform. It's our job to sell them on it. I saw Zack Space (OH-18) a blue dog in a formerly red district on Ed Shultz the other night. He's one of the 46 signatories to the weird, self contradicting Blue Dog letter. Economic activity is about dead in Ohio, particularly in his district. They have a major medical center hospital, probably in the county seat, which is as he says one of their few "economic engines". It's one of the few major employers they have left.
Space says he's for a public option but, and it's a big but, everybody knows he's looking at layoffs at that hospital if we get the kind of reform we need. And it's not going to be specialist doctors and administrators who donate Republican losing their jobs, it's going to be their clerks who will be redundant with electronic record keeping, lab techs who won't be needed when all the extra, useless tests are no longer rubber stamped.
It's our job to convince the Zack Spaces in congress that it's a not just a dead end to think their districts can thrive if we all have jobs asking "What's your policy number?" anymore than we can if we're asking "Do you want fries with that?"
If Space ever wants to see productive jobs grow in his district he needs to help get the health insurance monkey off the backs of local businesses. That's what Ohioans need to tell him.
July 12, 2009 10:53 AM | Reply | Permalink
He must be behind the curve then because both public and private medical centers, including the Mayo Clinic, have been laying off health care providers in Minnesota and Iowa over the last few months because people can't afford to go to the doctor. I was in Des Moines last week and there was a front page story on why there are no nursing jobs for new graduates. We've had hundreds of nurses lose jobs in the Twin Cities and those are only the job losses large enough to get major coverage on TV news.
July 12, 2009 11:19 AM | Reply | Permalink
Anecdotal evidence notwithstanding the Bureau of Labor Statistics don't bare that out. There's more nurses employed today than there were 6 months ago. Maybe nursing jobs are growing in places like FL and AZ and shrinking in MN and IA because many many elderly leave the upper midwest and go south to retire.
http://www.bls.gov/iag/tgs/iag623.htm
July 12, 2009 11:52 AM | Reply | Permalink
I'd bet it's more likely the stats are lagging. Anyway, stay tuned as states cut their health services budgets to balance budgets.
July 12, 2009 12:03 PM | Reply | Permalink
Please read them first and then make your argument. They cover up to May 2009.
Yes states are cutting their budgets. Part of any of the bills partially relieves states of those costs.
July 12, 2009 12:15 PM | Reply | Permalink
The deficit and healthcare reform are inextricably linked. The cited poll was conducted June 12-15, so it's relevance to current events is questionable. Healthcare reform efforts remain strong, and although only a minority in Congress are actively crafting legislation, a majority is likely to support reform legislation, including a public option, if proponents continue to make a good case. Now that Obama is back from Europe, and Congressional deliberations are set to begin, I expect we'll see an uptick in the action.
July 12, 2009 11:24 AM | Reply | Permalink
"The deficit and healthcare reform are inextricably linked."
Now, there is a classic example of how Democrats lose arguments. That is a Republican talking point. Notice how the deficit and optional foreign wars are never inextricably linked, only domestic programs designed to help people who are not defense contractors or financial tycoons. As long as we make their arguments for them they win no matter who controls Congress and the White House.
The only kind of change that is going to make a meaningful difference in the lives of Americans is a radical change in national priorities. Until then the Canadians and French get healthcare and Americans get war.
July 12, 2009 11:36 AM | Reply | Permalink
You don't think the deficit and healthcare reform are inextricably linked?
What exactly do think bankrupted GM and Chrysler? American business and our workers can no longer afford to subsidize the health insurance scam artists BB. It's making us all uncompetitive. And talk about losing arguments, how the hell is changing the subject to war a winning argument when we're still in Iraq and Afghanistan?
July 12, 2009 12:11 PM | Reply | Permalink
Long term deficit reduction is is inextricably tied to heathcare reform. Without reform the healthcare industry will crush our economy within a few decades. The longer we wait, the more difficult the task.
July 12, 2009 8:58 AM | Reply | Permalink
Jonnie - sorry, didn't mean to plagiarize you with "inextricably linked", but I think anyone knowledgeable about the issues knows they are. I'm reasonably hopeful we'll get a good bill in the coming weeks.
July 12, 2009 11:27 AM | Reply | Permalink
At the risk of inviting lalo's wrath, I think I got the words from President Obama.
July 12, 2009 12:10 PM | Reply | Permalink
I'm glad some members of Congress are taking a stand on this issue, and it is important to recognize them. However, the announcement that they won't have a bill by the August recess is really, really disappointing.
July 13, 2009 10:46 AM | Reply | Permalink