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The Public Option Lives On
Today is a critical day in the saga of the public option. Democrats Charles
Schumer (New York) and Jay Rockefeller (West Virginia) are introducing
an amendment to include the public option in the bill to be reported
out by the Senate Finance Committee -- the committee anointed by the
White House as its favored vehicle for getting health care reform.
Before
you read another word, call and email the Senate offices of Democrats
Max Baucus (Montana), Tom Carper (Delaware), Robert Menendez (New
Jersey), Kent Conrad (North Dakota), Jeff Bingaman (New Mexico), John
Kerry (MA), Blanche Lincoln (Arkansas), Ron Wyden (Oregon), Debbie
Stabenow (Michigan), Maria Cantwell (Washington),
and Bill Nelson (Florida) -- telling them you want them to vote in
favor of the public option amendment. And get everyone you know in
these states to do the same. Hell, you might as well phone and email
Republican Olympia Snowe (Maine) and make the same pitch.
Background:
Every dollar squeezed out of Big Pharma and Big Insurance is a dollar
less that you'll have to pay either in healthcare costs or in taxes to
cover healthcare costs. The two most direct ways to squeeze future
profits are allowing Medicare to use its huge bargaining leverage to
negotiate lower drug prices, and creating a public insurance option to
compete with private insurers and also use its bargaining clout to get
lower prices and thereby push private insurers to offer lower rates.
But
last January, the White House made a Faustian bargain with Big Pharma
and Big Insurance, essentially scuttling both of these profit-squeezing
mechanisms in return for these industries' agreement not to oppose
healthcare legislation with platoons of lobbyists and millions of
dollars of TV ads, and Pharma's willingness to cut drug prices by some
$80 billion over the next ten years. The White House promised these
industries they'd come out way ahead -- getting tens of millions of new
customers who'd be buying private health insurance policies and thereby
paying for an almost endless supply of new drugs. Healthcare reform
would be, in short, a bonanza.
Big Pharma and Big Insurance have
so far delivered on their side of the deal. In fact, Big Pharma has
shelled out $120 million in advertisements in favor of reform. Now the
White House is delivering on its side.
Last Thursday, for
example, the Senate Finance Committee rejected Ben Nelson's amendment
to require Big Pharma to give some $160 billion in discounts to
Medicare -- thereby reducing the bonanza Pharma would reap from the
healthcare bill. Not surprisingly, all Republicans voted against the
amendment. But it was defeated only because Dems Baucus, Carper, and
Menendez voted with the Republicans.
Carper later explained to the New York Times
why he voted with the Republicans. The amendment, he said, would
"undermine our ability to pass" health care reform, because the White
House had made a deal with Big Pharma by which the industry wouldn't
oppose healthcare reform -- and White House officials had told him "a
deal is a deal." The Times described the vote as a "big victory" for the White House.
Schumer
voted for the amendment. He said he was "not at the table" when the
White House and Big Pharma made their deal so didn't feel bound by it.
But even if he had been at the table, he wouldn't be bound. No member
of the Senate is bound to a deal made between industry and the White
House. Congress is a separate branch of government.
Big Pharma
and big insurance hate the public insurance option even more than they
hate big Medicare discounts. And although the President has sounded as
if he would welcome it, political operatives in the White House have
quietly reassured the industries that it won't be included in the final
bill. At most, the bill would allow the formation of non-profit
"cooperatives" that wouldn't have the scale or authority to squeeze the
profits of private industry, or a "trigger" that would allow states to
form public insurance options eventually if certain goals for cost
savings and coverage weren't met.
But the public option lives
on, nonetheless. It's still in the Senate Health, Education, Labor, and
Pension bill. It still headlines the House bills, and Speaker Nancy
Pelosi says she's still committed to it. The latest Times/CBS poll
shows 65 percent of the public in favor of it.
Now, Schumer and
Rockefeller are introducing a public option amendment in the Senate
Finance Committee. Carper, Menendez, Baucus, and other Dems on the
Committee should vote for it, or be forced to pay a price if they don't.
Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including his latest best-seller, Aftershock: The Next Economy and America’s Future; The Work of Nations; Locked in the Cabinet; Supercapitalism; and his newest, an e-book, Beyond Outrage. His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.
- Posted in
31 Comments so far
Show AllJim Shea
I'd be happy to write some of these congresspeople, but their addresses are blocked to non constituents. How can we get around this?
Call for FREE.
1-800-828-0498 White House Switchboard
Simply tell the operator which congressperson to connect you to.
Call as many times as you like.
Post the number on every messageboard and all your outgoing email.
Before I do something like you ask, Mr. Reich, I want to know if this public option is worth anything. The one Obama referred to before Congress was so small in scope you needed a microscope to see it!
Does this amendment cover more than 5 per cent of the population; that is, can anyone get into it? We the people don't want just any old public option we want a strong public option capable of holding its own against the predatory health insurance companies and "keeping them honest" as the President keeps saying.
As the late Johnny Cochran might have said, "It's gotta be strong, or it's wrong!"
Reich's goal is to end up with a bill that is 95% corporate welfare instead of the 100% corporate welfare "health care reform" bill many of our electeds are shooting for.
Reich is pulling in the right direction. Too bad that Obama and Congress started the "health care reform" discussion at the 100% corporate welfare stage, knowing that pulling in another direction would be impossible.
The Senate public option is in Senator BobCasey's words, "completely voluntary." It's still employer based. Your private employer does not have to offer it to you. In that case you have to keep your private insurance no matter how crappy. If you are employed by a small employer-- under 25 or if you become unemployed and can still afford to continue paying the premiums you can get the public option--Big whoop. Obama is proud to say that the public option will only affect 5-10 million, a number which creates a small actuarially unsound pool of by and large older and sicker individuals. Robert Reich must know the term, "selective pressures" which will gaurantee the failure of the public option as it is now structured. Why does he still want it? It woln't even start until 2013 and by the time it blows us around 2017 the rap will be--"see this just proves that government run health care doesn't work." It makes me wonder ehy Robert Reich still wants it so much.
Which is why I urged use of the term "Pure" Public Option.
When you hear the words Public Option come out of a Democrat's mouth you know the fix is in.
Their Public Option will be designed to fail.
Then the Republicans will dance a jig and laugh that government failed again.
Better to throw all 'em out and start over again than to transfer our wealth to the big boys where it'll never be seen again.
Like you said, none of this bologna would start until 2013 so what would we lose anyway?
Senator Wyden has put out an amendment that would make all employers who offer health insurance to offer a voucher of equal value as an option - any employee would be able to take it to the insurance exchange and shop for coverage. But he does not mention a public option at all.
It doesn't mention a public option because there isn't one in Wyden's Amendment.
This is pathetic.
The democrats act as if this public "OPTION" is something more than forcing the greedy insurance and pharmaceutical companies to provide some limited form of health care to a small number of people wherein the profits will be less. In other words, in order to ensure their increasing monetary profits, they have to pretend to provide care to the least wealthy.
The republicans only support greed. The democrats want to pretend they are different.
But We the People don't want Reich's "public" option/amendment; We want the single-payer plan promised by Obama when We delivered DEM majorities in both Congressional houses and (HIS) presidency! Well, We delivered and now it's time for HIM and DEM to; for once, stand for something and efficaciously deliver it to US!! SINGLE-PAYER or single term!!!
I couldn't agree with you more.
Hate to burst your bubble but Obama didn't endorse single-payer.
In fact, he ran commercials TRASHING single-payer.
In the ad he called Single Payer "Extreme" and "Wrong"
Found it. Here's the ad:
http://blog.cleveland.com/openers/2008/10/ad_health.html
At one point the multi-faced Obama did say that, once the Dems have the white house, Senate and House majority, we could get the single payer health care we want.
Later he said he never said that, which was a lie. I saw the speech and that's exactly what he said.
This is so egregiously obscene. 87% of Democrats favor single payer, 65% of Americans overall.
We want a promotion into the civilized world! Health care for all!
I will NOT vote for any rep of mine who isn't working for a single payer system.
Progressives, we have a job to do.
The ad you posted is a disgusting example of triangulation. Pre-emptive capitulation in the guise of reasonableness.
Joe
Single-payer universal coverage. All else is bullshit designed to enrichen the already filthy rich insurance companies' highly placed officers. Fascist bastards.
Sorry, Bob. Obviously, writing to these congressmen will not do a bit of good.
That leaves "forcing them to pay a price," which sounds good, in theory. But in practice ... well, let's just say I have my serious doubts.
Didn't you just tell us that at least one of them is just doing the bidding of the White House?
The latest Times/CBS poll shows 65 percent of the public in favor of the public option.
Where did they get the idea that they have anything to say about it? Where do they think they are, France?
Damned uppity peasants need to learn their place, stay in it and shut up.
Royce
Well, ok. Getting closer. However, I'm about to get "Republican" on this matter and vote with my pocketbook.
Here's the scheme. I live within driving distance of Windsor. I can set up a mailbox in Canada and pay the foreign rate for Canadian health insurance (about $260 for my wife and me). Sure, it has its downsides, but I'm getting a little sick of these carrots they keep dangling in front of my nose.
Now if a few million more in the northern border states do the same, do you think DC will finally get the message?
Sounds like a good idea to me. Is it 260 per month for the two of you?
And to answer your question, yes, I think if enough people sabotaged this "uniquely American" tax payer gift to private insurance corporations, they'd get the message .... and then they'd work to sabotage it -- "Anti-American!"
Reich sez: "No member of the Senate is bound to a deal made between industry and the White House. Congress is a separate branch of government."
***
In the same way a company's marketing department is a "separate branch" from its accounting department. But the paychecks still come from the same source.
I'd like to know what kind of "public option" it is if I, or any of the people I know who are working and currently have private insurance through their companies, can't opt for it? I understand it's only available for people who can't obtain/afford private insurance. Isn't that a form of Medicaid? If it's not available to everyone, then it can't be "public" and it can't be an "option". And how can it be truly competitive?
Robert Reich, you are being disingenuous!
It's not a watered down public option we want, so your phony call for us to get motivated is .... phony and is meant to distract us. Haven't you taken the time to read the polls?
What the vast majority of Americans want is a single payer system, similar to what the rest of civilized world has.
If you don't see the mass rally around the public option it's because it's a scam! and we know it.
"Whenever we compromised, we lost." -- The Arch Druid, David Brower
How about a million Medicare for All march?
"last January, the White House made a Faustian bargain with Big Pharma and Big Insurance, essentially scuttling both of these profit-squeezing mechanisms in return for these industries' agreement not to oppose healthcare legislation with platoons of lobbyists and millions of dollars of TV ads ..."
Just millions to Congressmen..
Has Obama ever read Faust? didn't end well.
Kill the Bill, Nuke the Filibuster
"The only means of strengthening one's intellect is to make up one's mind about nothing, to let the mind be a thoroughfare for all thoughts." - John Keats
"Change you can believe in."
"Hope."
Suckers.
The Public Option Lives On
No, it doesn't. I just read it was killed. My girlfriend yelled at the computer headline, "Bleep Obama! He lied to the entire country!"
If you'll excuse a personal remark, Mordechai-- I honestly can't imagine a girlfriend of yours yelling "Bleep!" ;)
· Yr Obd't Servant
Actually, it was the F-Bomb.
Next time I am voting for Howard Dean for President:
He said two days ago that insisting on making a health bill could be WORSE than nothing at all because -- now the health care industry gets to have more customers- everybody will be required to have health insurance and the government will bail out the industry with more subsidies than it has already given them ( 400 billion plus according to Senator Rockefeller)
I predict that the Americans will see thru this charade that Baucus and Grassley and Utah's Senator and all the other finks are putting on. They will punish a whole lot of politicians both Republican and Democrat who do this phony stuff that is cheating the middle class and the poor once again while the top 1% gets 95 % of the wealth/
We will not forget this because people have to pay those astronomical monthly premiums to remind them of this every month--
THAT is what I will be telling those folks I plan to call tomorrow-- that for once the public will remember who these turkeys were and are--
Also, the public has not understood that everybody has to buy insurance-- wait until this dawns on them-- they will be angry at Obama for that one so I don't advise him to encourage a deeply flawed bill-- better do nothing and at least cash in on the lower drug prices that big Pharma has agreed on-- I"ll tell the White House that I read Mr Reich's description of the WhiteHouse deal and also know the Howard Dean warning so better do nothing if you cannot get the public option. White House phone is 1-202-456-1111
The Capitol Switch board phone number is 202-225-3121
Well, Mr. Reich's "critical day" has come and gone. Now what? While we wait to hear just exactly how Mr. Reich suggests we hold those voting the wrong way accountable, I have a suggestion. Why not focus on fielding single-payer advocates for election to Congress in 2010? (And if they can knock off a Republican, all the better.) Nothing would get more national attention than getting people elected to Congress specifically on this one issue. I am not saying doing so will lead to single-payer passing, either. But we know such candidates would at least probably not vote the wrong way on a very limited public option.
Right you are Snoop. Where's Obama's peasantry czar? Gotta get them there brown shirts out there steppin on necks so's the next Times/CBS poll shows 0 percent of the public in favor of the public option.