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<< MA Court Judicial Activism on Gay Marriage | Main | Max on "MediCrap" >> November 18, 2003Don't Bash AARP- Medicare Already PrivatizedTo repeat, I don't like the Bush Medicare policies, but people shouldn't act like Medicare is some kind of medical socialism. As this description of the program makes clear, it's been a hybrid of public and private operations for a long time. The main government bureaucracy is called the Center for Medicare & Medicaid Services (CMS) and works extensively through private companies: CMS-administered programs provide health insurance to more than 74 million people-- about one fourth of all Americans. It spends more than $360 billion a year for covered services and operates on an annual budget of about $2.2 billion-- two thirds of which is paid to 55 private contractors that process claims, pay providers, and handle appeals.One meme going out there is that AARP is corrupt and wants to make money by supplanting Medicare's bureaucracy. As a 35-million person membership-run cooperative, there are worse things to imagine than AARP supplanting many of the private contractors currently involved in Medicare. I doubt that's what happens, but if AARP sees advantages for its members from changes in the system, that should be respected. Yes, they may have some institutional self-interest in those changes, but institutional self-interest is not always wrong-- if the institution is worthwhile. I think AARP made some bad strategic moves in negotiating over a bill they agree is not ideal, but I even more think progressives bashing AARP is a worse strategic move. Update: Part of the AARP-bashing out there is blaming it all on AARP CEO Bill Novelli (yes a Republican), but it's worth reading the AARP statements on the Medicare bill by Novelli himself as the bill was sent to conference. It makes most of the criticism all progressives have made of "premium support" and subsidies for private plans at the expense of fee-for-service Medicare members. While you can argue that AARP should have stuck to their guns and resisted the final bill, but it's ridiculous to read Novelli's statements and picture the AARP as somehow becoming a cheerleader for privatizing Medicare. Here are some excerpts: AARP opposes a premium support structure, such as in the House bill, that could destabilize the Medicare program and require beneficiaries to pay even more out-of-pocket. Despite the phase-in, the model in the House bill does not create a level playing field and in fact will penalize those who choose to remain in traditional Medicare...Even with the best risk adjustment available today, the premium support proposal in the House bill would likely harm traditional Medicare and those who depend on it.So this was the negotiating position of the AARP going into the conference committee. You can argue that they settled for too little and oppose the compromise themselves, but the principles laid out by the AARP were hardly Gingrich-lite. Posted by Nathan at November 18, 2003 04:46 PM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsUm, Nathan, the CEO of AARP is a supporter of Newt Gingrich and his crackpot "reform" ideas. It's not that AARP made an unintelligent compromise. It's that the AARP has SOLD OUT ITS MEMBERS to the Republican Party. Perhaps the GOP wants to co-opt the AARP. Perhaps they want this schism to develop. But the fact is that the status quo is untenable if the AARP purports to represent the best interests of seniors. It's not a mistake, Nathan. It's a betrayal. http://www.buzzflash.com/buzzscripts/buzz.dll/quote Posted by: GK at November 18, 2003 08:30 PM See my update. Posted by: Nathan at November 18, 2003 09:25 PM I don't get this. The AARP knows that chimpco is desperate to get this bill thru in time for 2004. Why don't they bargain for a better bill? Posted by: jdw at November 18, 2003 10:16 PM Because on principle Bush and the GOP would prefer to have no bill, so they are balancing pissing off THEIR base by passing the bill. They can't afford to lose large numbers of conservatives and pass this bill with only Democratic votes. So Bush and the GOP could afford to play chicken; yes they preferred a bill for political reasons, but the AARP knew that once the compromise was settled on, there was basically a yes-no choice available. AARP made the better-a-half-loaf evaluation, while others are making a worse-than-no-loaf evaluation. Since I have more confidence of Dems taking back control of Congress by 2010, maybe that's why I'm more sympathetic to the AARP. I think we can improve it before the competition features become a real problem-- and remember, they are test patterns, so to fully expand, a new bill is needed in the long run in any case. Posted by: Nathan at November 18, 2003 11:13 PM Nathan - if you are confident in the Democrats taking back the presidency and at least one chamber of the legislature, then that is all the more reason to oppose this bill. Let's wait and get a decent one. Posted by: Gar Lipow at November 19, 2003 12:05 AM Gar- I said I was confident of doing so by 2010. This bill will still put $400 billion into prescription drugs in the meantime. As I said, this is a political judgment over whether struggling from the status quo is better than struggling from the base of this bill. I think the latter may be better. Posted by: Nathan at November 19, 2003 05:05 AM There's a huge difference between a private entity ADMINISTERING the plan, and a private entity COMPETING with Medicare. I won't go into all the reasons the latter is such a danger to the whole concept of Medicare, as it was established. E.J. Dionne's piece in a below thread does an admirable job of doing so. Posted by: Paleo at November 19, 2003 06:39 PM Yes, I agree there is a big difference, but there is also a difference between pilot projects (the proposed bill) and permanent competition throughout the Medicare system (what was in the House bill). All of these privatization ideas are degrees of bad, but so is no prescription drug bill at all-- also a degree of bad. Posted by: Nathan at November 19, 2003 08:33 PM What about the argument that people like Charlie Cook make - seniors are expecting a much more generous prescription drug plan than this bill offers, so it may become very unpopular as seniors realize how stingy it really is? Will the bill become an "albatross" around the neck of Republicans and Democrats who pass it, as Cook argues? By the way, I don't agree that Bush would rather have no bill - if he gets one, he can chalk up another victory for "compassionate conservatism" But, maybe it's better for Dems to oppose this Medicare bill. If it doesn't pass, we can always try again later. If it does pass, it may be a political liability for those responsible. Posted by: Tom Geraghty at November 20, 2003 01:28 AM The problem is the bill won't come due until '06. So Bush can reap the credit, and possibly ensure his re-election, while postponing the fallout for over two years. Even standing alone as prescription drug bill, the bill sucks. The out-of-pocket costs for many will be exorbitant, millions may lose the plan they already have, and there is no ability to control prescription drug costs. The bill nothing more than a give away to the big pharma. Shoot this turkey! Posted by: Paleo at November 20, 2003 06:48 AM Nathan, Are you sure you're not being too clever by half? Posted by: Ellen1910 at November 22, 2003 12:21 AM Ellen-- It's not an issue of cleverness but of strategy and policy. Is this bill better than nothing? That's a substantive issue that leads to different tactical issues of how to make it better-- kill it and go for a new bill, or pass it and work to improve it. I think on balance the latter makes more sense, as long as Dems are clear about its problems. Posted by: Nathan at November 22, 2003 08:27 AM This has nothing to do with strategy or tactics, but has everything to do with the party's core beliefs. As a result of this bill, whose passage is not assured, the road has now been paved for Medicare's privatization. And it won't begin in 2010. The money in the bill for health insurers will go direct into competition with Medicare. But speaking of tactics and strategy, this is a big victory of Bush, courtesy of a number of Senate Democrats. It makes his victory next year more likely. That in turn will lead to additional reactionary policies, including his effort to privatize social security. So in terms of both policy and strategy the bill is an unmitigated disaster for progressive Democrats. Posted by: Paleo at November 24, 2003 06:28 PM I work for one of those 55 private companies (many are nonprofits BTW). I can tell you that we bend over backwards to accomodate CMS. While I think that we do a better job then a state level buracracy would (I've worked in both), I do think that it is the accountability to CMS that makes us better. Remove that oversight and big problems can develope. Posted by: Bob at November 25, 2003 02:58 PM Post a comment
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