|
<< Showtime to Air "The Reagans" Nov 30 | Main | This is Just Sad >> November 17, 2003Pass the Medicare BillI think the AARP made a strategic mistake in settling for this Medicare bill, but they no doubt decided that holding out for somethig more might lead to nothing at all. Which was the experience of health care activists back in 1994. The Bill: There are some severe problems with the Medicare bill, but the bottom line is that it injects an additional $400 billion into the Medicare system. Yes, there are dangerous privatization pilot projects in the bill, but AARP in their statement on the bill note the serious Medicare competition is delayed until 2010 and is limited to a few areas. That's a political danger, but it means we need to politically mobilize to have the power to fix the problems by then. It's not like conservatives are that happy with the bill; many are already expressing dissent on it. Bush and the GOP are gritting their teeth and supporting the bill for political expediency reasons, but their ideal would be no bill at all, not a $400 billion expansion of health care, and likely escalating demands to make the benefit more generous in coming years. The Politics: Making the perfect the enemy of the good is a loser for Democrats on health care issues. A failed bill on prescription drugs isn't a gain for Democrats-- in fact, passage of this half-assed bill will actually highlight how inadequate GOP proposals are and how much the massive deficit prevented a real benefit for seniors. Democrats should keep criticizing the problems with the bill, but in the end, they should vote for it as an inadequate, but needed benefit for our seniors. Lining up on the opposite side from the AARP would be an idiotic position for progressives. Instead, they should work with AARP and propose a new bill next year to cancel Bush's tax cuts, expand coverage and end the privatization experiments. I'm glad everyone from the AFL-CIO on is criticizing the bad possibilities fo the bill. But my political instincts say pass this sucker, expose its inadequacies, and fight to improve it. Posted by Nathan at November 17, 2003 09:40 PM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsNathan, you are as wrong as you can be. I posted my response to you over at daily kos. Let me add to that that rolling over on this one will give Bush a victory he will trumpet in TV ads to show that he is really a "compassionate conservative." When, in reality, he is just using this to further dismantle the social safety net. And he will use this "victory" as support for his effort to privatize Medicare. Posted by: Paleo at November 18, 2003 06:45 AM Paleo - I was going to post a long answer here, but read your note that you've commented. I'd to read yours before I post mine in case you've already said everything I intend to. I went to Daily Kos. Could not find yours.What thread is your comment under?
Posted by: Gar Lipow at November 18, 2003 10:11 AM Well I'll make two comments regardless: 1) Your conclusions would follow if your premises were not wrong. I don't think this is an inadequate bill; it is on balance a BAD bill. Specifically the privatazation outweighs the benefits of the extra money. In terms of "Oh we can repeal the privatization aspects before they take effect". It is a lot easier to STOP something bad from passing than to REPEAL it. Even without majority control the Democrats have the power of filibuster to stop it. Once passed, even if the demos take control of both houses and the Presidency, a minority of Republicans could prevent repeal with a filibuster. In short if you believe the Democrats will end up with Presidency and at least one house at the same time sometime this decasde, you should not be supporting the passage of this bill. 2) In terms of the AARP - the AARP has a conflict of interest here. Insurance sales are a major source of their revenue. I would not count on them representing their constituents interests 100% on health care issues of any sort. Posted by: Gar Lipow at November 18, 2003 10:18 AM The thread is currently number 36: "Pass the Medicare bill." I agree with both of your points, Gar. Posted by: Paleo at November 18, 2003 10:26 AM The competition part is one thing. However, the bill as I understand it games the system for insurers and big pharmaceutical companies. The bill doesn't allow medicare to setup a formulary and be able to negotiate prices with the drug companies. Medicare (and we as taxpayers) have to pay whatever the pharmaceutical companies want to charge (probably not too shabby for their bottom lines considering that the 70% of seniors who currently have prescription drug coverage are covered by formularies). Insurance companies, state medicaid, Canadian provinces, the VA and federal government employee plans all maintain formularies to negotiate discounted prices with pharmaceutical companies. In fact, the VA is one of the lowest cost buyers of drugs in the world. Forcing Medicare to compete with one-hand tied behind it's back against insurance companies can only lead to one result. Posted by: Manish at November 18, 2003 02:10 PM Manish- As long as Medicare isn't paying for prescription drugs, there will never be serious pressure to force down drug prices. But if they do start paying for it, it will give Dems an irresistable weapon to push through the next round of reforms-- pass a bill, cut prescription prices, and expand benefits, all with no or minimal increases in overall costs. My basic political judgement is that we will be better positioned for the next round after passage than now because of those cost pressures. So in the short-term, we get a benefit for seniors and in the long-run, it builds political pressure for the real reforms we all know are needed. I just don't think that saying no gets us there faster than passing this bill. It's a strategic judgement, but I think I'm right. Posted by: Nathan Newman at November 18, 2003 02:45 PM E.J. Dionne totally destroys the bill:
Most Democrats and many Republican moderates say this is a dangerous illusion. As it stands, Medicare guarantees the real choices most seniors care about -- a choice of doctors and treatment. That's why experiments with HMOs have failed so far. The virtue of Medicare is that it creates a large risk pool. The wealthy and the healthy are in the same boat as the poorer and the sicker. Busting up Medicare's risk pool would almost certainly raise costs to poorer and sicker seniors, as insurance companies make more money insuring healthy people than sick ones. It would take an enormous amount of regulation to prevent this sort of "cherry-picking." Now, what does any of this have to do with a prescription drug benefit? Good question. If this were only about providing a limited prescription drug benefit, Congress could have debated the best ways to cut up the $400 billion it has allocated for this purpose. The amount covers a little more than a fifth of seniors' drug costs. Logically, this limited sum would have been best used to help the poorest seniors who are not now covered by Medicaid, and the sickest -- those whose drug costs are especially high. Instead, Republican negotiators, joined by Democratic Sens. John Breaux and Max Baucus, went behind closed doors and decided to use the public's demand for drug coverage as an opening wedge to change Medicare. The shame of it is that Republicans and Democrats in the Senate had already reached a real compromise. The bipartisan proposal, crafted in cooperation with Sen. Ted Kennedy, was inadequate. Yet it was better than this bill. It passed the Senate overwhelmingly because it left the larger Medicare issues open for real debate later. But House conservatives weren't willing to go that far. They want medical savings accounts, a tax cut for the wealthy in disguise, and they insisted on experiments with privatization. But if privatization is such a good idea, why do the private insurance companies need such big subsidies to enter the Medicare market? The bill includes $12 billion for what Kennedy calls a "slush fund" to subsidize the private insurers. That's not capitalism or competition. It's corporate welfare. "They've created a huge bias in favor of private plans," says Jeanne Lambrew, senior fellow at the Center for American Progress and a professor at George Washington University. "How can you call it choice or competition when private plans have such a large financial advantage?" And a bill that is supposed to expand drug coverage may cause at least 2 million seniors to lose their coverage from their former employers, Lambrew said."
Posted by: Paleo at November 18, 2003 03:50 PM Post a comment
|
Series-
Social Security
Past Series
Current Weblog
January 04, 2005 January 03, 2005 January 02, 2005 January 01, 2005 ... and Why That's a Good Thing - Judge Richard Posner is guest blogging at Leiter Reports and has a post on why morality has to influence politics... MORE... December 31, 2004 December 30, 2004 December 29, 2004 December 28, 2004 December 24, 2004 December 22, 2004 December 21, 2004 December 20, 2004 December 18, 2004 December 17, 2004 December 16, 2004
Referrers to site
|