With recent chatter indicating that the Obama Administration appears willing to drop their “public option” proposal and instead settle for a “co-operatives” system, some Americans might think that Democrats are abandoning their hopes of socializing medicine. According to Ryan Ellis, tax policy analyst for Americans for Tax Reform, that is simply not the case.
“It is important to remember that, truthfully, the public option is still in play,” Ellis explained in an interview with healthcarehorserace.com. “It’s really too early to tell what’s going to happen with the issue and we can’t be too quick to assume they’re ditching it all-together.”
Ellis refers to several reports that claimed the White House and liberals in Congress decided to respond to the unpopularity of their public option plan, and transition to a co-operative system, offering a bit of false hope for the President’s adversaries on the Right.
As Sen. Jim DeMint (R-SC) pointed out, President Obama faces a significant challenge ahead. Because the White House has treated the issue of health care reform with such irremediable urgency and elevated it to such importance on the liberal policy agenda, President Obama realizes he must pass something to stick to his word and hopefully, remain in the good graces of a skeptical public.
With that in mind, Ellis knows that the White House and Democrats in Congress will continue to push for sweeping health care reform. The problem now, he says, is that what they are claiming to support and what the legislation actually says are two entirely different things.
“Basically, co-operatives are the exact same as a public option, just called by a different name,” Ellis said. “A system of co-operatives would be just as big, just as damaging as the public option.”
But what about reports that maintain the Wyden-Bennett bill, a “bi-partisan” measure that would institute a co-operative plan, enjoys a “deficit-neutral” rating from the non-partisan Congressional Budget Office (CBO)?
“Just because they claim it is deficit-neutral doesn’t mean it is responsible,” Ellis warned. “All that rating means is that Wyden-Bennett is going to raise taxes just as much as it raises spending.”
“It is important to understand that the co-operatives bill is going to create hundreds of billions of dollars in tax increases, force an individual mandate and in the end, create a government-run system.”
“On top of that, they [Democrats] are telling everyone how it’s only going to cost $3 or $4 billion to keep up the program, but what they’re not telling everyone is that that $3 or $4 billion is only for start-up costs,” he continued.
Wallace Forman of Americans for Tax Reform published a piece Tuesday, August 18, 2009 that echoed Ellis’s very sentiment. The article, entitled “A Public Option Co-op is still a Public Option: And Probably Not a Co-Op,” points out that if health care co-operatives were so wonderful, they would exist, when similar systems, such as credit unions, already do.
Americans for Tax Reform argues that a co-operative system of health care reform would infringe upon patient choice, cost more than supporters are willing to admit and ultimately open the floodgates for perpetual government interference in care. To make matters worse, a co-operative plan would further empower bureaucrats and political beneficiaries to determine just how health care is handled in the U.S., consistently bypassing the needs of each individual patient.
In particular, Senator Chuck Schumer, one of the key Finance Committee negotiators, has proposed a co-op that would be subsidized by a $10 billion start up fund and controlled by presidential appointees. Schumer has made it clear that he wants a government-run national alternative to the private market.
If a “co-op” is controlled by presidential appointees, it’s unclear in what sense it would actually be a co-op. It would be meaningless to claim that an insurance option was owned by its policy holders if it were in fact controlled by the government. Importantly, HHS Secretary Sebelius seems to have been endorsing Schumer’s version of the co-op instead of the less obviously statist version favored by Senator Kent Conrad. Co-ops are ok, she explained, as long as they are not private insurance companies. She even goes so far as to say that some sort of government-control is in fact the only part of “competition” that is non-negotiable:
“That’s really the essential part, is you don’t turn over the whole new marketplace to private insurance companies and trust them to do the right thing. We need some choices, we need some competition.”
An astute observer should notice some familiar rhetoric in that quote. In their crusade to convince Americans to stand behind a public option, Obamacare supporters attempted to turn conservative principles against the Right. They mocked Republicans for leaning on free market principles, blaming these fundamentals for causing the inevitable (though arguably nonexistent) downfall of society and the plight of the poor.
Suddenly, the Democrats began to cheer on the public option as a method of creating the same competition they condemned just weeks before. If the Right is so in favor of competition, they would whine, why do they oppose letting the government compete with the private sector?
As Forman proves in his piece, it is intellectually dishonest to accept that government is truly competing with the private sector when it is the only competitor allowed in the market. A public option would impose debilitating regulations and obscene tax hikes that would eventually make private sector coverage a mere memory.
Ryan Ellis hopes that the American people can sift through clever naming and framing tactics of the Left to realize that in the end, a co-operatives system is “just as public” as the liberal reform proposals of past.
“If it were to pass, this bill is going to create a government board that will determine benefits and set premiums,” he said. “What’s the difference between this and the public option they wanted? It is all really public.”
Meanwhile, Democrats bicker over how they will tackle health care reform. On the one hand, they must answer to the progressive Democrats who voted America’s most liberal U.S. Senator to be their party’s nominee and ultimately, president. These progressives lament that even a public option is too watered down from the single-payer system for which they pine, and now, they want to hold President Obama accountable for his promises of universal health care. These progressives find leadership in the Congressional Progressive Caucus (CPC) and champions in extreme leftists like Speaker Nancy Pelosi (D-NV) and Senate Majority Leader Harry Reid (D-NV).
On the other hand, the self-proclaimed “fiscally conservative” Blue Dog Democrats in Congress have consistently resisted submitting to the progressives’ wishes. The Blue Dog Coalition (BDC) is comprised largely by lawmakers whose presence guarantees a solid majority for the Democrats in Congress. When they were a part of the minority in Congress until January 2007, these Blue Dog Democrats cooperated with their progressive counterparts to unite in legislative battles against the GOP. Thanks to sensible campaigning that ran moderate Democrats to appeal to the center-right nature of the country, the Democrats picked up enough seats to take over Congress.
Now, the Democrats control Congress, and therefore, control the direction of the country, and the two factions of the party must decide which philosophy will prevail, and which resulting legislation will be utilized to reform health care. While the progressives still cling tightly to the prospects of state-sponsored health care, the Blue Dog Democrats know their constituents back home are far more conservative than the liberal leadership in Congress that guides them, and voting lockstep with their colleagues could destroy their re-election hopes in 2010. Still, the Blue Dogs know that long after the current health care debate ends, they must work with progressives next year as they push their own legislation forward. So, they stall.
But they can only stall for so long. With an antsy White House and hollering progressives banging at their door, the Blue Dogs yearn for some sort of compromise that satisfies their colleagues and constituents. And many of them seem to think they have found it in the Wyden-Bennett bill, which would ultimately lead to a government takeover of health care but on the surface appears far less frightening than the public option to their constituents.
To obtain “back up,” these Blue Dog Democrats have tried to lure moderate Republicans to support co-operatives as an alternative to the progressives’ proposals and too many seem open to discussing it. But according to Ryan Ellis, Republicans and Blue Dogs should be mindful that no matter the title, any sort of government plan would end up being the public option.
“All they have done is rename the bill. I don’t know why the progressives are complaining about this. It’s exactly what they want, only with a different name,” he concluded. “There’s no consolation in Wyden-Bennett to those who oppose a single-payer because this is still it.”