Articles Tagged ‘public-option’

Government Option Example: Would Government Airlines Work?

Wednesday, October 14th, 2009

Here is a cute little video made by the Independence Institute to explain how bad the public option would be by comparing that policy prescription to what would happen to the airline industry if the government offered a government airlines for transportation customers.

AHIP: Reform will add $4,000 per year to health care premiums

Monday, October 12th, 2009

As the Senate Finance Committee prepares for a Tuesday vote on health care reform legislation, the private insurance trade group under the America’s Health Insurance Plans (AHIP) has gone on the offensive saying Max Baucus‘ America’s Healthy Future Act would actually escalate the already skyrocketing rise in health insurance premiums. In a report issued by PriceWaterHouseCoopers and commissioned by AHIP, researchers found that insurance premiums could go up by as much $4,000 per year (an 111-percent increase) if Congress adopts the plan now know as BaucusCare versus a 79-percent increase if no reforms are adopted.

Key Findings

Health reform could have a significant impact on the cost of private health insurance
coverage.

There are four provisions included in the Senate Finance Committee proposal that could
increase private health insurance premiums above the levels projected under current law:
o Insurance market reforms coupled with a weak coverage requirement,
o A new tax on high-cost health care plans,
o Cost-shifting as a result of cuts to Medicare, and
o New taxes on several health care sectors.

The overall impact of these provisions will be to increase the cost of private insurance
coverage for individuals, families, and businesses above what these costs would be in
the absence of reform.

On average, the cost of private health insurance coverage will increase:
o 26 percent between 2009 and 2013 under the current system and by 40 percent
during this same period if these four provisions are implemented.
o 50 percent between 2009 and 2016 under the current system and by 73 percent
during this same period if these four provisions are implemented.
o 79 percent between 2009 and 2019 under the current system and by 111 percent
during this same period if these four provisions are implemented.

(From PriceWaterHouseCoopers’  Potential Impact of Health Reform on the
Cost of Private Health Insurance Coverage
)

The timing of this new report couldn’t be worse for the White House and Congressional Democrats as three key members of the Finance Committee - Democrats Kent Conrad and Blanche Lincoln along with Republican Olympia Snowe , have yet to announce their intended votes on the bill but have all expressed concern over the potential costs to consumers if Americans are forced to purchase health insurance via an individual mandate which is included in not only the Baucus bill but all five of the bills currently being considered on Capitol Hill.

“This is a self-serving analysis from the insurance industry, one of the major opponents of health insurance reform,” White House spokesman Reid Cherlin said. “It comes on the eve of a vote that will reduce the industry’s profits. It is hard to take it seriously,” he added. (From Reuters’ White House blasts health insurance sector report.)

Democrats Jay Rockefeller and Ron Wyden have also expressed concern that the Finance bill’s lack of a government-run public option insurance plan will leave tens of millions of Americans without an affordable insurance option should Baucus’ cooperatives approach to reform be adopted in a final Senate bill and have refused to throw their support behind the bill ahead of the vote.

If the Finance Committee fails to pass a bill out of committee during tomorrow’s vote - or the vote is postponed due to a lack of support, health care reform could very well be off the table for 2009.

Bozell: Reid Scheming to Ram ObamaCare Through Congress

Thursday, October 8th, 2009

In a conference call late Thursday afternoon, Brent Bozell, founder of the Media Research Center, reiterated what he said on Fox and Friends earlier in the day that Senate Majority Leader Harry Reid appears poised to sneak President Obama’s public-option health care reform proposal into an unrelated bill. Rather then hold a bi-partisan discussion in both the House and the Senate, Bozell says, “You’re going to get Harry Reid’s bill, passed by the Senate, by the Democrats… immediately rubber-stamping it, no debate, no House-Senate conference, no Republican discussion, and it goes right to the president for his signature, and oh, by the way, no one knows what’s in it.” Talk about a nuclear option.

A senior aide to the Nevada Democratic senator told CNSNews.com, a news site operated by MRC, that it is ‘likely’ the Senate Majority Leader will use House Resolution 1586 as a ‘shell’ for enacting the final version of the Senate’s health care legislation. H.R. 1586 was a bill passed this past March in the House that sought to impose a ninety percent tax on bonuses paid to employees of certain bailed-out financial institutions, specifically AIG. Were Senator Reid to do this, the substance of H.R. 1586 would be removed and replaced with whatever the White House and Congressional Democratic leaders ultimately decide will encompass their health care package. A scam such as this would require the support of sixty senators to vote for cloture on the motion to proceed to H.R. 1586, thus ending debate on the congressional procedure and moving the bill forward. If Reid successfully obtains the sixty votes needed, then debate begins on the health care package. However, Reid could choose to block all amendments and attempt to get a vote on the entire package.

Should the House vote on the bill as passed by the Senate without amending it, it could then be sent directly to President Obama’s desk for his signature (behind closed doors, no doubt, as was the case with the stimulus package) without the need for those pesky checks and balances. Here’s where it gets real scary: the actual text of the legislation will be determined by Reid himself, who at his own leisure can draft and insert textual language that was never approved by either the Senate Health, Education, Labor and Pensions Committee or the Senate Finance Committee.

This all seems a little much to wrap your brain around, right? Why would Senator Harry Reid, who trails in the polls in his own state behind Republican opponents, choose to do this? What politician in their right mind would sign on for this? Democratic candidates across the board are getting clobbered by their Republican opponents, so would this not make a catastrophic situation even worse? There is certainly enough corruption and lack of distain for the American populous to believe that the Democratic majority are capable of such a swindle, but why now? Does Harry Reid, with all his bent up ego, see himself as the modern day General Custer and this is his last stand? That if he is going to go down, he’s going to take every one else with him? From a political scientist stand point, this scenario does not make sense and, if it does come to pass, would only reek of desperation in the eyes of the American people, further damaging what little support the Democrats in Congress find themselves standing with now.

Reid: Finance Committee will vote on Baucus bill next Tuesday

Thursday, October 8th, 2009

A day after the Congressional Budget Office released its latest scoring of Finance chairman Max Baucus‘ effort at health care reform, Senate Majority Leader Harry Reid announced that the Senate Finance Committee has scheduled a vote on the America’s Healthy Future Act when the Senate returns from Columbus Day weekend next Tuesday, October 13. While Democrats Kent Conrad and Blanche Lincoln have yet to announce whether they will vote in favor of the bill, the estimated price tag of  $829 billion is expected to be satisfactory to Democrats on the committee and put the bill in the hands of Reid in anticipation of a floor debate.

The Finance Committee bill is the only health care reform effort produced this year that has scored under President Obama’s declared veto threshold of $900 billion and is the only bill that does not include the politically charged government-run public option insurance plan. Both of those facts make it a favorite for approval by the United States Senate, but also set up a showdown between Senators and House Speaker Nancy Pelosi who earlier today promised that any bill passed by the House would include a public option.

Most pundits agree that a health care reform bill void of a public option will not garner the votes necessary to pass muster in the more liberal House Democrats. Yet, of the four public option driven bills currently being considered by Congress (three in the House alone), none have scored under $1 trillion dollars. Baucus’ cooperatives plan - which has drawn suspicion from conservatives for being a wolf in sheep’s clothing,  is therefore the best chance Democrats have of sending a reform bill to Obama’s desk in 2009 but is far from guaranteed to even make it out of the Senate.

Under the plan, 94 percent of Americans are expected to have health insurance by 2019 and revenues raised under the legislation - primarily through the introduction of new taxes, could actually reduce the budget by as much as $81 billion over the same time period.

  • According to CBO and JCT’s assessment, enacting the Chairman’s mark, as amended, would result in a net reduction in federal budget deficits of $81 billion over the 2010–2019 period.
  • By 2019, CBO and JCT estimate, the number of nonelderly people who are uninsured would be reduced by about 29 million, leaving about 25 million nonelderly residents uninsured (about one-third of whom would be unauthorized immigrants). (For the complete CBO analysis, click here.)

To the most liberal of Democrats, these cost savings come at the expense of approximately 16 million Americans (and another 8 million illegal immigrants) going without health insurance who they believe would be covered under a public option.To Republicans, the costs are too high to ensure too few and represent the single largest expansion of government entitlement programs in nearly four decades.

This is most likely why Reid has yet to back off of his threat to invoke the nuclear option of budget reconciliation should whip counts not provide the 60 votes he needs to get the bill through a full Senate floor debate. But, Reid has less than 48 hours after the Finance Committee votes to meet the October 15 deadline for invoking reconciliation. So, look for a Reid-authored Senate heath care reform bill to leak out well before the Finance Committee reconvenes next week.

Baucuscare Bill Vote Delayed for Cost Report

Tuesday, October 6th, 2009

What could very well result in a resounding death knell for public-option health care reform legislation at a time when the White House and the Congressional Democratic leadership have grown increasingly desperate in their efforts to push it forward, a key vote in the Senate Finance Committee has been pushed back to later this week, and perhaps into next week as well. Crucial fence riders, including Maine Republican Olympia Snowe and West Virginia Democrat Jay Rockefeller, await an estimate on how much Senator Max Baucus’s overhaul of the American health care system would cost before committing themselves either way for the bill.

The Obama administration and Senate Majority Leader Harry Reid (D-Nevada) have put relentless pressure on the Chairman of the Senate Committee on Finance to schedule a vote on his health care reform bill, America’s Healthy Future Act of 2009, prior to the release of the program’s estimated cost by the Congressional Budget Office (CBO), to no avail. The reason behind this may be that the president knows that it is very likely the CBO’s findings will come out against him as so many, if not all, of their studies related to the health care issue this past summer have exactly that.

And while former Health and Human Services secretary under President George W. Bush and former governor of Wisconsin, Tommy Thompson, and former Democratic House Majority Leader Richard Gephardt have both urged Congress to overcome their differences and get the job done on health care reform, their rallying cry hasn’t exactly inspired confidence in the hearts of wavering senators. Thompson and Gephardt admitted that there still remained many “troublesome and unresolved” issues in the Baucuscare bill. What is more is that former Tennessee senator Bill Frist, who to TIME magazine expressed support for health care reform, recanted, saying that the proposal is “not where I want it to be. It’s going to cost way too much, and we’re not going to get all the uninsured into the marketplace.”

Even if the CBO report comes out against the Baucus bill and it fails to pass the Finance Committee with a majority vote, there still remains Senator Reid’s ‘nuclear’ option that he has threatened Republicans and Blue Dog Democrats with in the past should they fail to reach an agreement. And yet there is even doubt there would be enough Democratic support for that. Falling approval numbers for President Obama and the rise in the number of dissatisfied independent voters has many senators, if some who have been in office for quite some time, concerned about their job security. The ‘nuclear’ option, if passed, would likely be the president calling on Democratic senators to commit seppuku for the sake of progressivism; a call very few would care to endure.

Rep. Tom Price: The ‘Tide is Turning’ in Health Care Debate

Monday, October 5th, 2009

Dr. Tom Price, representative for the 6th Congressional District of Georgia, said candidly in a late-afternoon conference call on Thursday, October 1st, that from where he sits, in the ‘cross-hairs’ of the health care debate, the ‘tide is turning’ because ‘people are waking up’ to the grim reality we as Americans face under a government-run health care system.

The chairman of the Republican Study Committee (RSC), a group of over one hundred and ten House Republicans organized for the purpose of advancing a conservative social and economic agenda in the House of Representatives, argued that it is not just the public-option proposal that stands to destroy the quality of health care in America, though it certainly remains the biggest topic of concern for conservative legislators. Two other specific areas of concern include the pay-or-play employer mandate as well as the idea, included in every single plan proposed by the Democrats, that decisions have to made by Washington and not between a patient and his doctor. Every single one of these proposals has the potential to do great harm to this country’s health care system.

Representative Price insisted that any health care reform legislators, Republican or Democrat, propose must be based on six principles – accessibility, affordability, quality, responsiveness, innovation, and choices.

The Georgia representative went on to say that Democrats are lying when they claim Republicans and conservatives are against any kind of health care reform and that they have not produced a single alternative solution to their proposals. He agrees with Congressional Democrats that our health care system is not perfect and that it contains serious problems that need to be addressed, although they are far different from anything they have in mind. Among the things we need to solve in health care system, Price says, includes fixing insurance problems, specifically the areas of portability and patients with pre-existing injuries who can’t get coverage, as well as the lawsuit abuse issue and the establishment of the patient/doctor relationship into law.

And, contrary to the claims made by the Democrats that House Republicans have offered up nothing in return for their proposals, the RSC to date has written up thirty-five health care-related laws or bills, including HR 3400, the Empowering Patients First Act. The bill addresses four main principles – access to coverage for all Americans, coverage truly owned by the patient, improvement of the health care delivery structure, and the reining in of out of control costs.

HR 3400 makes the purchase of health care financially feasible for all Americans, covers pre-existing conditions, protects employer-sponsored insurance, and shines light on existing health care plans. The legislation also grants a far greater choice and portability to the patient, gives employers more flexibility in the benefits they offer their employees, and expands the individual market through the creation of several pooling mechanism. The delivery structure is advanced thanks to the establishment of doctor-led quality measures and the reimbursement of physicians. And finally, the cost of the plan is offset through decreasing defensive medicine, savings from health care efficiencies, sifting out waste, fraud and abuse, plus an annual one-percent non defense discretionary spending step down.

Whatever politicians ultimately decide to move forward with in terms of reforming the nation’s health care system, Price firmly believes that we as American citizens have to ensure that that plan safeguards our ability to make our own medical decisions, not politicians on the Washington Beltway to make them for us. Entrenching the patient/doctor relationship, he believes, is the pulse of the health care issue.

WashPost: Wyden and Rockefeller may vote against Finance bill

Monday, October 5th, 2009

In today’s Washington PostCeci Connolly reports that Senate Democrats Ron Wyden and Jay Rockefeller “have refused to pledge support” for the Senate Finance bill expected to come to a vote this week. Should the two liberal Dems vote “no” on the amended America’s Healthy Future Act, health care reform would be dealt a serious blow as Finance chairman Max Baucus would be forced to reopen negotiation on the final bill needed to move the reform debate into the next phase.

“More needs to be done to hold insurance companies accountable, to hold premiums down for the American people,” Wyden said in an interview Sunday. “I want to continue these discussions.” (From Democrats Wyden, Rockefeller Withhold Support of Panel’s Bill in the Washington Post.)

Wyden and Rockefeller’s opposition comes as a result of Finance Committee defeats of public option amendments proposed by Rockefeller and Democrat Chuck Schumer. The Baucus bill is currently the only one of five bills in Congress that does not include some form of a government-run public option health insurance plan.

As things stand, Harry Reid is running out of time and options in the getting a bill through the Senate. He has yet to retract his promise to go nuclear and attempt to pass a health care reform bill via budget reconciliation, but in order to do so he must invoke that process no later than October 15. If the Finance Committee is forced to reopen debate, there is little chance the Congressional Budget Office could score a new bill in time for Finance to hold another vote and give Reid a bill to merge with the late Ted Kennedy’s HELP (Health, Education, Labor and Pensions) Committee over the next 10 days.

It was thought that Democrat proponents of the public option would allow the Finance Bill to pass out of committee and lobby Reid to drop the bill’s cooperatives in favor of Kennedy’s public option proposal before a floor vote in the Senate, but Wyden and Rockefeller have seemingly joined House Speaker Nancy Pelosi in her ‘public option or bust’ approach to health care reform.

Rasmussen: 63% of Americans Fear Losing Health Plan With Obamacare

Sunday, October 4th, 2009

Based on the responses of one thousand likely voters to a Rasmussen survey conducted over the telephone nationally, sixty-three percent of respondents said they believed that guaranteeing no one would be forced to change their health insurance coverage was a far greater priority than simply handing American citizens, as well as illegal aliens, the choice of a public-option health insurance plan. Only twenty-nine percent of those surveyed took the opposite position.

Despite reassurances from President Obama that if you like your current health care coverage you can keep it under his health care reform proposal, fifty-three percent of insured voters remain convinced that it is likely they would have to change their health insurance coverage should the bill, proposed by the president and supported by progressives, were to become law. This helps clarify, if but a little, the confusion over why, if fifty-four percent of Americans agree that this country’s health care system needs major changes, only forty-one percent support the president’s comprehensive reform agenda.

Favor for the creation of a government-run non-profit health insurance option stood at forty-six percent when respondents were asked whether they would choose that rather then a private health insurance plan. When these same individuals were then asked about the creation of a public-option should it be known that it would encourage companies to drop private health insurance coverage for workers, however, support dropped drastically to twenty-nine percent.

In addition to this, slightly more then half of likely voters, fifty-three percent, believe the government-run public-option system would cost taxpayers money. Again, this despite repeated claimed made by the White House and the Congressional Democratic leadership that this would not be the case. Not surprisingly, the greatest support for the idea that President Obama’s plan would cost taxpayers more then their current health care coverage came from seniors, sixty-two percent of which said costs would increase under the proposal. And, finally, slightly less then half of likely voters, forty-eight percent, believe health insurance companies would still provide better quality service and more choices than a government-run public-option system.

Baucus aims for Tuesday vote on Senate Finance bill. Snowe’s vote still in question.

Sunday, October 4th, 2009

After a summer full of fits and starts, the health care reform debate is about to adopt a frenetic pace. As Republicans and Democrats wait for the last of the five health care reform bills to be scored by the Congressional Budget OfficeSenate Finance Committee chairman Max Baucus is anticipating a Tuesday or Wednesday vote on an amended America’s Healthy Future Act.

As recently as a week ago, the CBO was calling for at least two weeks to score an amended bill as the Finance Committee prepared to debate 564 amendments, but the Baucus bill escaped the mark-up process relatively unscathed, so there is no telling how long it will take CBO to produce its analysis. Most notably, Democrats failed to pass amendments by Jay Rockefeller and Chuck Schumer which would have put a government-run public option health insurance plan at the center of the bill and thereby fundamentally changing its initial CBO score of $774 billion by 2019. President Obama has promised to veto any health care reform bill that costs more than $900 billion.

While there is little doubt the bill will pass out of committee as a result of the Democrats 13-10 edge in membership, there is still a great deal of uncertainty as to which way Republican Olympia Snowe will vote on the Baucus bill. Unlike many of her Republican colleagues who have repeatedly called on Democrats to “start over” on health care reform, Snowe has committed herself to finding a way to work with Democrats to get affordable health care into the hands of Americans as soon as possible.

Snowe’s vote for the Finance bill may have been won over when she and Schumer successfully passed an amendment late Thursday night which exempts from the individual mandate (and the penalties related to it) any American who cannot find a health insurance plan that costs less than eight percent of their annual income.

Exemptions from the excise tax will be made for individuals where the full premium of the lowest cost option available to them (net of subsidies and employer contribution, if any) exceeds eight percent of their AGI. (From page 35 of the amended bill.)

The individual mandate - which requires Americans to obtain and maintain a minimum standard of health insurance - and the public option were the primary obstacles to a “yes” vote on reform in the mind of Snowe. With no public option and a lowered threshold for the individual mandate, Snowe could very well break with her party and join Democrats in voting the bill out of committee.

Senate Committee on Finance Approves State-Based Public Option Plan

Sunday, October 4th, 2009

Just when the majority of Americans thought they could sleep a little easier since the Senate Committee on Finance squashed the so-called public option, they approve of another version of it just Thursday. 

That’s right, ladies and gentlemen. The public option passed the Senate Committee on Finance Thursday. But, it’s not “nationalized health care.” You see, Sen. Max Baucus (D-MT) and his cohorts on the Left passed an amendment that would create a state-based public option program, a measure proposed by Sen. Maria Cantwell (D-WA).

“This proposal is about giving federal dollars to the states and putting them in the driver’s seat,” Cantwell said. “It is a public plan, but negotiated with the private sector.”

All Democrats except Sen. Blanche Lincoln (Ark.) voted to support the Cantwell amendment and all Republicans voted against it. Baucus, who has resisted adding a public option of any kind to his bill based on the argument that there is not enough support in the Senate, was enthusiastic about Cantwell’s proposal. “This is a great amendment,” he said.

Sen. Baucus believed that there wasn’t enough support for a federal public option, but now he backs a state public option. After governors on both sides of the aisle resisted co-operatives for the enormous entitlement strain they would create, it is doubtful they would throw support behind this measure either. With states so heavily (and disproportionately) subsidizing health care infrastructure locally, the state-based public option would only further deplete their already barren coffers, which would serve as yet another excuse to raise taxes. When the federal government doesn’t kick enough money to state X, its lawmakers will have to find a way to fund it.

Still, all Democrats but Sen. Blanche Lincoln of Arkansas voted for the amendment, indicating they believe they could garner support for shifting the financial and regulatory burden of health care to the states. Politically, it makes sense. After all, the Democrats have to pass something, or risk President Obama facing his, as Sen. Jim DeMint (R-SC) called it, Waterloo. But, if the program fails, Congress can dodge the blame and instead point to the failures of individual states.

Here are the “nuts and bolts” of the plan:

Under the Cantwell amendment, people with incomes between 133 percent and 200 percent of the federal poverty level who do not get insurance at work would enroll in these state-based programs. The federal tax credits that would otherwise have been given to those individuals would instead be paid to states to finance the plan. Cantwell based her amendment on a program in Washington state.

States could choose to set up their plans, which would negotiate with medical providers on payment rates rather than base them on Medicare’s fees, as other public option plans would do. Cantwell and Baucus said the amendment would save money. “We are putting someone in charge, finally, of negotiating rates,” Cantwell said.The benefits offered by these state plans would have to be at least as good as under Medicaid or through a private plan sold through the health insurance exchange in the legislation.

Republicans complained that any claims that the state plans would save money were purely speculative because Cantwell’s amendment has not been scored by the Congressional Budget Office (CBO). “There is no CBO score to tell us that,” said Sen. Jim Bunning (R-Ky.). “We don’t know that.” Republicans also pointed out that Baucus had ruled numerous GOP amendments out of order because there were not CBO scores.

So, an amendment that has not been scored by the Congressional Budget Office is going to be sandwiched in the Baucus health care bill, an amendment that would obligate states to more entitlements and more bureaucracy. The government is going to negotiate rates. Oh, and those tax cuts have been eliminated, too. Splendid. Just splendid.

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