The case for keeping "single payer health care" off the table
It has been rather surprising just how persistent the American public has been in insisting that some form of public health care plan be considered, despite vigorous opposition to any government administered program from the health insurance and medical/pharma industries. So strong has the push been for a public option that it now seems likely that some form of government administered program will be included to compete with other private health care providers. The American people themselves are seemingly resigned to the fact that single payer is off the table, but there is an intransigence building that says any health care reform without the inclusion of some form of public option is a non-starter.
Why is this push for a public option gaining such wide support at the grassroots level? And how is it sustained in opposition to so many monied forces that are aligned against it? The health care and insurance industries are spending over $1.4 million PER DAY in lobbying efforts, mainly focused upon excluding such government involvement. How is it, then, that a "public option" still remains as a top priority for many of the consumers who seek genuine reform of their health care system.
Having first identified health care reform as a critical issue confronting the U.S., American health care consumers have looked around at other industrialized nations and see single payer systems that are serving all their constituents at less cost per person than our present system. Without even getting into the specific details of how these other programs work, the American health care consumer is able to determine intuitively that there are a number of ways in which a single payer plan can introduce efficiencies that result in real savings over present costs.
To begin with, there is an intuitive sense that a single administration overseeing a universal plan is surely far more efficient than a multitude of private corporations establishing their own bureaucracies to manage their own little corner of the comprehensive system that is required. Duplication of services is understood to be extensive and extremely wasteful, as is the number of people needed to simply keep up with the myriad of different bookkeeping and other paper trails that are created, generally as one whole system of paperwork and policies, etc., per provider.
These same consumers understand that it will take one CEO - a government Administrator, probably at the level of a Cabinet Secretary - to oversee a singular bureaucracy in charge of providing universal health care to all. This CEO will be expected to earn in the neighborhood of $197,000 (Highest rate now paid to any Cabinet Secretary) and will replace an untold number of private executives, each making multiples of this salary. Multiples of $197k? Well, yes. It was recently reported, for example, that Bill McGuire, former CEO of UnitedHealth Group, accumulated total compensation of $1.6 billion during 2005. Quickly doing the math, the consumer reasons that simply removing this one executive from the equation for one year provides enough financial resources to provide lifetime health care coverage for themselves and their extended family, almost without regard for how large that family might be. Eliminating all such highly paid executives could be expected to result in enormous savings without compromising so much as the availability of a single visit to a Doctor.
According to a recent article in The Economist, "The American health-care system, which gobbles up about 16% of the country's economic output, is by far the most expensive in the world." The article goes on to show that the US already spends more PER PERSON for health care than any other industrialized country, and even twice as much as is spent per person in Sweden, Japan, Britain and Italy. Most of these countries have universal health care. Even the casual observer among the health care consumers in this country look at this and see that we are already spending much more than is required for universal health care, yet we somehow fall short in providing coverage for over 42 million Americans. It is not unreasonable for these same consumers to deduce that this present system of insurance providers and Big Pharma and the private health care industry are consuming far more "non-direct health care related" resources than is required.
And herein lies the reason that a "single payer" health care solution had to remain off the table if we were to proceed with any kind of health care reform in this country. After all, if such a proposed solution were to be given serious discussion, much of what the consumer has already determined intuitively would be fleshed out in facts and figures. A full litany of efficiencies to be gained and resources to be reallocated from private industry profits and logistical support to the actual provision of health care would be enumerated, showing the way in which we could achieve universal health care without actually spending more money than is already dedicated to health insurance and health care. And that would be a good thing, right?
Well, yes it would, unless you were one of the insurance companies or Big Pharma or the health care industry that has bled our health care system dry. Alas, the prime thing the consumer realizes intuitively is that the majority of waste and the inefficiencies under which our health care system suffers is related to the parasitical tagalong that is the insurance/health care/Big Pharma industries. And the possibility of the consumers acting upon that realization has the executives in these industries losing sleep.
It is an unfortunate political reality that it is these parasites who own so much of Congress in these days of pay-to-play politics. And so any potential that the door would be open to arrive at a "throw the bums out" solution to health care reform by honestly considering single payer would never have been allowed to gain traction at all as Obama embarked on this process.
On the other hand, successfully eliminating single payer as an option to be considered allowed the monied interests to reason it was safe - nay, potentially highly profitable - to proceed with Obama's "health insurance reform." These health insurance industry providers calculated that they could improve their take from the health care system if they smartly played the reform game. Senator Max Baucus of Montana, Chair of the Finance Committee and one of the biggest benefactors of health care industry campaign contributions, seemed to carry their water quite well for so long as he was able. Stating strong opposition to any public option, Baucus' was instead inclined toward a solution wherein we would eventually subsidize consumers as necessary until we achieved universal health insurance coverage. Executives at the major insurance providers were nearly besides themselves in planning the next Congressional fundraisers, undoubtedly certain that they could double, triple, nay quadruple their budget for campaign contributions at a mere fraction of the profit to be made from the 42 million new customers they stood to realize out of this proposed "reform" package.
But it seems neither Baucus nor the bosses reasoned just how persistent the grass roots would be about gaining some measure of serious reform of our health care system. Baucus has encountered significant pressure from Montana voters who insist that a public option at least be included in any reform proposal. Liberal Democrats are growing more insistent that any proposal must have a public option to gain their support for the measure. And the health insurance/health care/Big Pharma industry lobbyists are discovering that no amount of arm twisting, glad-handing, or promise of campaign contributions is going to allow the public option to be taken off the table. The voters are being heard in large numbers, and the pols are rightly calculating that no amount of campaign cash is going to mollify these constituents; that the voters are drawing a line in the sand that insists some degree of genuine health care reform be enacted with no quarter offered to politics as usual this time around on this issue.
And so we have stumbled upon an inefficient solution to the reform of our health care system, one that preserves much of the inefficiencies we now suffer in relying upon the health insurance/health care/Big Pharma industries. But against great odds, a persistent grassroots effort has made it all but certain that any reform package will include some genuine reform in introducing a public option that establishes the groundwork for moving toward a more sanely efficient single payer system.
Is it perfect? Absolutely not, but then progress in politics is rarely accomplished in one large step. I would certainly have preferred that we simply get it done right all at once and shove the parasites aside in one big move toward a single payer system.
But I understand the political realities that made such a course of action impossible to achieve. And so I will celebrate the little victory gained by the grassroots in achieving a public option, and watch in satisfaction as the parasitic insurance and private health care industries are forced to compete with a more sane and efficient system that will eventually cause them all to give up this game of promising to provide health care while bleeding us all dry instead.
May they rest in pieces. And may the rest of us at last know justice in health care being provided as a right granted to all in this great nation.
















One other factor involved with having single payer off the table at this point is also likely the fact that insurance companies employ large numbers of people. A "flip-the-switch .... here's single payer" solution would inevitably lead to significant job losses before efficiencies in the economy realized from single payer would theoretically create new jobs elsewhere (I'm always skeptical of the concept that less costs = job creation). In a thriving economy, it would be painful; in today's economy it seems almost unthinkable to add that many people to the ranks of the unemployed.
Also, we don't have a robust single payer plan locked down at this point! We shouldn't congratulate ourselves for a victory not yet achieved. We're in the home stretch, that's when lobbyists start the sprint ... will the grassroots match and win? I think we've got a real shot, but am still worried.
July 15, 2009 12:39 PM | Reply | Permalink
I agree, KGB.
The insurance companies' media campaign is laughable. They go on and on about how we shouldn't let some government bureaucrat control our healthcare. They overlook the fact that people are fed up with the insurance companies' bureaucrats.
July 15, 2009 1:12 PM | Reply | Permalink
Crap ... I meant we don't have a Public Option plan locked down yet.
July 15, 2009 2:13 PM | Reply | Permalink
I recently asked the question about unemployment issues related to switching to single payer health care of Healthcare Now and they offered the following prompt response:
We don't believe that transferring to a single-payer system will result in increased unemployment, as you suggest. In fact, we think it will create jobs. According to a study by the California Nurses Association, 2.6 million new jobs could be created
(http://www.calnurses.org/media-center/press-releases/2009/january/first-of-its-kind-study-medicare-for-all-single-payer-reform-would-be-major-stimulus-for-economy-with-2-6-million-new-jobs-317-billion-in-business-revenue-100-billion-in-wages.html).
The bill, HR 676, includes a provision to retrain and put current private health insurance workers first in line for new government jobs created to administer the national health insurance. You can read all about this in the link above, but I hope this helps clarify. Please let me know if you have any more questions. Thanks!
July 15, 2009 2:57 PM | Reply | Permalink
GOOD INFO THANKS SYNCH
July 15, 2009 4:20 PM | Reply | Permalink
If we're looking for efficiencies a lot of those people are by necessity going to have to find productive work, not simply change employers and work for the government.
In the house plan they have very specific provisions for electronic record keeping that both the public and private plans have to adopt. I hope it's the VA system, 85 countries around the world now use it.
July 15, 2009 5:00 PM | Reply | Permalink
"We don't believe".."we think"...
July 15, 2009 5:11 PM | Reply | Permalink
It's also worth noting that there are some pretty large assumptions in the study that Synchronicity linked to. To put it mildly, I'm rather skeptical of the 2.6 million claim myself.
July 15, 2009 6:07 PM | Reply | Permalink
Also, any idea how much of the S&P 500 is health insurance companies? I tried a quick search and got only health care companies, which is broader than I want. What would a single payer system do to those stockholders (just about anyone who owns index funds)?
And if a government option is created, and does what we think it will (which is slowly drive many for-profit companies out of business) do?
Don't get me wrong. I think that the current system is extremely inefficient (the twice as expensive per person than the UK, Italy, etc really are crazy) and has to be done away with. I'm just curious about the shock.
Also note that if a single payer had actually been an option, it would have taken awhile to implement and wouldn't have changed everything all at once. We are just now going, assuming public option's passed, the really slow route.
July 15, 2009 5:16 PM | Reply | Permalink
There is no shock. Since the election healthcare insurance stocks are in the toilet anyway. Wall St. saw the writing on the wall a long time ago. Plus it'll take a few years to phase everything in. Insurance company costs go down along with the public plan cost as provider efficiencies from electronic record keeping and changes in how providers are compensated are phased in too. Health insurance companies may not die. They thrive in the Netherlands for instance in competition with their public plan. They even compete hard for diabetic patients.
July 15, 2009 7:13 PM | Reply | Permalink
Great assessment of where things are today. It should be noted that if the public option does pass, it appears that industry will gain as much or more than it loses through other concessions such as extending patents on pharmalogical agents to 12-15 years, extension of nonreimportation and other goodies being worked out between the power brokers.
July 15, 2009 2:42 PM | Reply | Permalink
And incredibly, all the amendments dictated by the "other side" have absolutely NOTHING to do with reducing health care costs or accomplishing anything that could even remotely be considered as genuine reform.
It is nearly impossible to gain any kind of meaningful policy reforms without first achieving campaign finance reform to kick to the curb the parasitic owners of this government. If anything, this health care reform effort turned health insurance industry giveaway has been so outrageously transparent that the electorate cannot help see that their interests are being sold out to the highest bidder. This highlighting of the pay-to-play politics may well prove to be the greatest thing to come out of these "health insurance reform" discussions. It's way past time everyone understood just how corrupt our present system of government truly is.
July 16, 2009 10:13 AM | Reply | Permalink
July 15, 2009 5:50 PM | Reply | Permalink
It appears, SJ, that we do agree on this issue after all. :) Highly recommended.
I was concerned in our last exchange on health care that you didn't see the incremental progress being made on the issue of health care for all. A robust public option is, indeed, a pretty big increment.
I'm also glad to see this statement.
I think those who rail against Obama's championing of the public option as a milquetoast kowtowing to the for-profit health care industry are being short-sighted in their view. In future debates, I will simply point them to this post for a primer.
You've done a very good job of laying out the political reality that makes the public option the best we can do at this time - and you also tangentially touch on the reasons why it will, in my view, eventually lead to our own single payer system. Thanks for posting this.
July 15, 2009 6:04 PM | Reply | Permalink
"Is it perfect? Absolutely not, but then progress in politics is rarely accomplished in one large step. I would certainly have preferred that we simply get it done right all at once and shove the parasites aside in one big move toward a single payer system."
Ha, your lady told me you were an old pol.
I want the 'foot in the door' and the repubs are SCREAMIN ABOUT THAT GODDAMN FOOT. HA!!!
We will get it.
July 15, 2009 7:12 PM | Reply | Permalink
Single-payer was not taken off the table; it was never on the table to begin with. Obanma made that clear with his post-partisanship compromise pl;oitics. It was further clarified when the committees and panels set up to study UHC excluded reformers.
I personally don't think the loss of redundant middlemen jobs that effectively lower the quality and availability of good health care is of prime importance. We're losing half a million jobs a month, every month, and because of the greedy big banks and our answer is to not only prop them up but make them bigger.
But I do think any major changes need to be phased in, and the public option is a good place to start. I don't disagree with opponents who say that a PO is a back door to eventual single-payer (I hope they're right, but wouldn't rule out language that forbids it down the road). Republicans and Blue Dogs would be pleading for a little public option plan if they had been threatened with single-payer as the only viable option from the beginning.
July 15, 2009 7:27 PM | Reply | Permalink
Amen.
July 15, 2009 7:44 PM | Reply | Permalink
I rec'd the post not because I agree that the public option is 'worth it', 'and all we can get' but because I think the dialogue is important.
I believe we need a single payer system and the profit makers are not going to accept that unless they have to. Most of our politicians don't have the balls to stand up and do what is best for our country in the face of the powerful financial lobbies that have to be confronted.
So, regardless of the interim. I am going to keep working for a single payer healthcare system because I believe it is what is best for our country.
July 15, 2009 8:17 PM | Reply | Permalink
They won't let the CBO analyze single payer, because if that happened the CBO would be forced to say it would cover the most people at the lowest cost. If you had to decide the policy based on what works, it's a no-brainer for single payer.
But we live in a broken country where billions can be found to bail out AIG or bomb Afghanistan, while pennies are pinched for education or health care... and this is why this country is headed for (if not already arriving at) has-been status.
July 15, 2009 9:50 PM | Reply | Permalink
Sigh* Sadly the truth. If you take the profits out of healthcare it would clearly reduce costs and make it more affordable for everyone. And I guess it's hard to let go of a big profit maker like that... Yet if it's the right thing to do... there must be a way.
July 15, 2009 10:05 PM | Reply | Permalink
Well done! Very thoughtful and very illuminating!
This situation is yet another illustration of how far removed from reality and the mainstream Washington and the entire economic, social and political elite of the nation is from the people. The nation is on one track and our elites are on their own. The weirdest thing about all this is that those God Dammned fools think they are in sync with the nation when nothing could be further from the truth.
As for the public option I have no faith whatsoever that Obama and the Democrats, if they emerge with some sort of public option in a bill (if any), that it will be worth even having. By the time the DINO's and their lobbyist BFF's get finished with it, whatever public option comes out is likely to be destined for failure and designed not to work so that later on the insurance parasites and their allies can point to the failed public option and say "see, we told you government run health care wouldn't work!"
People should ignore the ongoing unreal "debate" over health care in Washington and continue to demand some form of single payer as the only way to rid ourselves of the malignancy that is our current healthcare system. Why? Because when all is said and done, some form of single payer is the most cost effective, easiest to implement, and rational path to take and the only one that will result in a healthier America where no one remains sick or dies because they didn't have the money to get the medical care they needed.
Good work Sleepin!
July 15, 2009 11:02 PM | Reply | Permalink
Well argumented!
July 16, 2009 3:43 AM | Reply | Permalink
Has the Congressional Budget Office scored the costs/benefits of a single-payer healthplan (HR-676, HR-1200, S-703, S12)?
July 16, 2009 11:09 AM | Reply | Permalink
The "Public Option" idea will fail, due to adverse selection: the private insurance companies will simply raise the rates for those policies containing older workers and those needing "care." This will allow them to keep all of the healthy, no-care needed members, while moving those that need-care onto the public policy, increasing costs beyond payments for that program.
The Single-Payer plan, however, would not allow for such profitable selection: everyone will be in one, big pool. If some people decide that this is not sufficient, then they can have the option of paying to play with the Private Option (the current insurance companies). In this option, they can freely choose to leave or take a member, charge whatever they feel is necessary, and cover whatever they like, without worrying about who is too expensive to keep alive today.
Call Energy & Commerce Committee Chairman Henry Waxman (202-225-3976) to support Representative Weiner's Single-Payer Amendment that they are discussing today.
Call your Representative and Senators to support the current Single-Payer Bills (HR.706 and SB.703).
If they don't hear from you, they will only see the next insurance lobbyist in their office.
July 16, 2009 1:05 PM | Reply | Permalink