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Wednesday, June 24, 2009

 

 

President Obama's sales pitch for major health care reform will not be easy. A key exchange at his press conference yesterday underscored the challenge.

Notwithstanding his general popularity (the latest New York Times-CBS poll puts his job approval rating at 63 percent), and notwithstanding strong majority support for the concept of a government-administered health insurance plan that would compete with private insurers (nicknamed the "public option"), Americans are generally wary of expanding government's role. National surveys, during the past week, report that only 34 percent think Washington should do more to tackle national problems, while, in response to a separate question, 69 percent voice "quite a bit" or "a great deal" of concern about an enhanced government role on issues such as health care.

Those stats came to mind as I watched Obama pitch the public option during the press conference. Here's how he framed it early in the hour: "Now, the public plan, I think, is an important tool to discipline insurance companies. What we've said is, under our proposal, let's have a system, the same way that federal employees do, same way that members of Congress do, where we call it an 'exchange,' but you can call it a 'marketplace,' where, essentially, you've got a whole bunch of different plans. If you like your plan and you like your doctor, you won't have to do a thing. You keep your plan; you keep your doctor. If your employer is providing you good health insurance, terrific. We're not going to mess with it."

But later in the hour, Jake Tapper of ABC News spotted the potential flaw in Obama's pitch. What happens, he asked, if an employer who provides good health insurance decides instead to dump that coverage and go with the public option - even if the workers like their private plan and want to keep it?

Tapper told Obama: "It does seem logical to a lot of people that if the government is offering a cheaper health care plan, then lots of employers will want to have their employees covered by that cheaper plan, which will not have to be for-profit, unlike private plans - and may, possibly, benefit from some government subsidies, who knows. And then their employees would be signed up for this public plan, which would violate what you're promising the American people, that they will not have to change health care plans if they like the plan they have."

They bantered for a few moments, sparking much faux laughter in the room, as reporters sought to lighten the vibes, because Obama did seem particularly testy yesterday. Then Obama tried a general response. Which was actually a non-response:

"We are still early in this process. So, you know, we have not drawn lines in the sand, other than that reform has to control costs and that it has to provide relief to people who don't have health insurance or are under-insured. You know, those are the broad parameters that we've discussed. There are a whole host of other issues where ultimately I may have a strong opinion, and I will express those to members of Congress as this is shaping up. It's too early to say that. Right now, I will say that our position is that a public plan makes sense."

His filibuster continued: "Now, let me go to the - the broader question you made about the public plan. As I said before, I think that there is a legitimate concern, if the public plan was simply eating off the taxpayer trough, that it would be hard for private insurers to compete. If, on the other hand, the public plan is structured in such a way where they've got to collect premiums and they've got to provide good services, then, if what the insurance companies are saying is true, that they're doing their best to serve their customers, that they're in the business of keeping people well and giving them security when they get sick, they should be able to compete. Now, if it turns out that the public plan, for example, is able to reduce administrative costs significantly, then you know what, I'd like the insurance companies to take note and say, hey, if the public plan can do that, why can't we? And that's good for everybody in the system. And I don't think there should be any objection to that."

The president kept going - I'll spare you the next 300 words - yet he never addressed Tapper's specific concern. The reporter's question was, what if employers dumped a private health plan that the workers liked and wanted to keep?

When Obama finally stopped talking, Tapper sought to follow up: "I'm sorry, but what about keeping your promise to the American people that they won't have to change plans even if employers - "

Obama interrupted with another lengthy non-response: "Well, all right - when I say if you have your plan and you like it, and your doctor has a plan - or you have a doctor and you like your doctor, that you don't have to change plans, what I'm saying is the government is not going to make you change plans under health reform. Now, are there going to be employers right now, assuming we don't do anything - let's say that we take the advice of some folks who are out there and say, 'Oh, this is not the time to do health care. We can't afford it. It's too complicated. Let's take our time,' et cetera. So let's assume that nothing happened. I can guarantee you that there's the possibility for a whole lot of Americans out there that they're not going to end up having the same health care they have. Because what's going to happen is, as costs keep on going up, employers are going to start making decisions. 'We've got to raise premiums on our employees. In some cases, we can't provide health insurance at all.' And so there are going to be a whole set of changes out there. That's exactly why health reform is so important."

Note how, in the first sentence, Obama declared that "the government is not going to make you change plans under health reform." Again, that's not what Tapper was asking about. The question was whether the private employer would compel you to change plans. Again, Obama didn't address it.

Obama went on to make a few decent points - under our burdensome status quo, there's nothing to prevent employers from switching private plans with even greater frequency, and thereby messing with coverage that their workers like - but he never addressed the core concern raised by Tapper: That if the federal government gets involved, it might screw things up and compound the health coverage woes we already have.

Obama's core theme, gleaned from his second long reply, is that the status quo can no longer be tolerated and that government-driven reform would surely be an improvement. But, as I noted earlier, there is considerable public nervousness about an expanded government role - in the latest Washington Post-ABC News survey, 61 percent of swing-voting independents favor a smaller government with fewer services, rather than a larger government with more services - and Obama will likely need to leverage every percentage point of his personal popularity to calm those public qualms. Assuming that he can. His signature domestic proposal may well depend on it.

-------

Hypocrisy update:

More woes for the party that prides itself on conservative "family values." John Ensign, the Nevada senator whose dreams of a 2012 GOP presidential bid were dashed when he 'fessed up to canoodling for nine months with the wife of a senior aide, has now been joined on sin row by fiscal conservative champion Mark Sanford - who, until now was probably best known for rejecting Obama's stimulus money until ordered by the courts to take it.

The married South Carolina governor and father of three, who had nurtured dreams of a 2012 GOP presidential bid, basically blew up that scenario this afternoon when he 'fessed up to visiting an extramarital lover on the sly in Argentina. Over Father's Day weekend, no less. After his staff had told South Carolinians that Sanford was off communing with nature on the Appalachian Trail. After driving to the airport in a state car.

Turned out he was working on his own stimulus package.
 

 

Posted by Dick Polman @ 11:03 AM  Permalink | 111 comments
Comments   
Posted 11:52 AM, 06/24/2009
CutterMcCool
Seems Obama answered the question, sort of like a Zen master, by his nonanswer. Which is that the government will not be forcing those with insurance from their employer into the public option. But if the employers themselves do that, that's a problem between you and your employer. Not you and your goverment. Likely if you work for a generous employer - say, Google - you'll keep your employer plan. But if you work for a struggling company - say, GM - or an ungenerous company you'll be dumped faster than they can pull up the dumptruck. This may have the effect, however, of lowering your premium (if the public option is successfully cheaper) and increasing your salary (if some of that money saved by not paying for health insurance is returned to you as compensation).
Comment removed.
Posted 11:57 AM, 06/24/2009
CutterMcCool
Understanding here is that all businesses (except those in the business, of course, of supplying health insurance) WANT the public option to be able to get out of the onerous costs of health care. Which adds to the logic of doing reform this year - this could be a greater boon to the economy than any stimulus package. And might save a lot (GM, Chrysler) of struggling companies.
Posted 12:01 PM, 06/24/2009
CutterMcCool
Not to mention: many people may themselves and voluntarily dump the crappy insurance their employer provides (say, anything from AETNA), especially if they don't use it often (or at all), for the public option. Not only would it possibly be better insurance, it would save them money. Instead of their raises being eaten by their increased contributions, they'd have that money to spend on whatever they wanted. Another stimulus.
Posted 12:04 PM, 06/24/2009
chasing history
the government will not be forcing those with insurance from their employer into the public option. But if the employers themselves do that, that's a problem between you and your employer.....I'm not sure how you get around this since this has been going on for years in public health insurance programs operated by the state. Example: PA sued Wal Mart because many of their employees were so poorly paid, that they qualified for Medicaid thuis allowing Wal Mart to drop their coverage. I wonder what the outcome was.
Posted 12:06 PM, 06/24/2009
Phrossty
"That if the federal government gets involved, it might scrüe things up and compound the health coverage woes we already have." This is the fear-mongering logic the insurance companies use to keep the status quo (i.e., their profit margin) in tact. While it's a legitimate concern, it's overstated, over-hyped and over-used. I like Vandy's point. How come car insurance is mandated, but health insurance isn't? Make being uninsured illegal. Then give the public a real choice of coverages and carriers. As noted in the article, employer-sponsored plans are going the way of the Dodo á la pension plans. Keeping Aetna, Blue Cross & UHC in the money is NOT a solution to the crisis. (Posting denied a few times before I figured s-c-r-e-w is a Bozo no-no.)
Posted 12:09 PM, 06/24/2009
CD75
Obama is the king of talk without substance or details. The American public is not that dumb.
Posted 12:10 PM, 06/24/2009
sammyp
People do not realize that they are subsidizing those with no insurance, by the higher premmiums they are paying. They also do not realize that the high cost of hospitalization is because hospitals subsidize those with no insurance to the tune of many millions of dollars per year in "charity and non-payer" care. I am dumbstruck that the "single payer" option is not on the table. I know its not because it puts the private insurers out of business, and of course we can't have that, can we. Spending time parsing Obama's words is as useless a pursuit as it was parsing Bush's words.
Posted 12:22 PM, 06/24/2009
chasing history
Then give the public a real choice of coverages and carriers....so you are saying that employers could not drop employees coverage, but could offer plans that are more expensive than the public options thus driving people to the public option?
Posted 12:35 PM, 06/24/2009
CutterMcCool
Not sure if you're talking to me, chasing history, but I think the public option is there to 1) short term, reduce the cost of health care by forcing private insurers to lower their profit margins to stay competitive; and 2) long term, via a slow bleed, to put them out of business as more and more people decide, of their own volition, that the public option is preferable (cheaper, less haggling, more doctors in its network, you can't lose it if you lose your job, etc. etc.). As Michael Moore put it best, in our current capitalist system, "even cancer has to turn a profit." If firefighters do a good job putting out fires, and we rely on them to save our lives from them when needed, and they are government employees, what is the problem with a public option for health insurance. Of course Obama (nor any other high-profile Democrat) can go around admitting that (2) is a likely longterm consequence of a public option. Because that would scare the stupid public out of its wits. Which is part of the reason why this debate is occuring over the summer months - the majority of nitwits will be tuned out throughout vacation season. And this might pass by September with little of the rancor seen from Hillarycare. (If that's true, watch out for great progress to be made especially in August.)
Posted 12:43 PM, 06/24/2009
jmc
Obama knows almost nothing about the structure of this "reform", and less about how it will operate in the real world. All he knows is that he wants it, and is willing to pony up 1.5 trillion to create a program that once in place, can never be repealed.
Posted 12:45 PM, 06/24/2009
jwad (D)
What about tort reform? Of course that is not on the table since obama is a lawyer.
Comment removed.
Posted 01:16 PM, 06/24/2009
chasing history
what is the problem with a public option for health insurance.....I have no problem with the public option. CMS which administers Medicare and Medicaid are efficent entities despite what the Right would have you believe. I was just commenting on Phrosty's post about how a public option may lead employers to dropping coverage all together or limiting the coverage thereby pushing employees into the public option.
Posted 01:25 PM, 06/24/2009
Vandy
"Now, if it turns out that the public plan, for example, is able to reduce administrative costs significantly, then you know what, I'd like the insurance companies to take note and say, hey, if the public plan can do that, why can't we?" Here's my principal beef. Because the public plan isn't accountable to anyone, why on earth would you believe that it would "lower administrative costs"? That's absurd! Of all the things you can say about insurance companies, you can absolutely bet they are doing all they can to lower their administrative costs and thus boost the bottom line for their shareholders.
About Dick Polman

Cited by the Columbia Journalism Review as one of the nation's top political reporters, and lauded by the ABC News political website as "one of the finest political journalists of his generation," Dick Polman is a national political columnist at the Philadelphia Inquirer. He is on the full-time faculty at the University of Pennsylvania, as "writer in residence." Dick has been a frequent guest on C-Span, MSNBC, CNN, NPR and the BBC. He covered the 1992, 1996, 2000, and 2004 presidential campaigns.

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All commentaries posted before April 18, 2008, can be accessed at www.dickpolman.blogspot.com.