Is Obama Naive About the For-Profit Health Industry's Commitment to Real Reform?

by M.S. Bellows, Jr.

Optimism is a virtue; it leads us to see the best in people despite their worse sides, and to envision a better future even when we can clearly see the obstacles we currently face. But blind optimism is no virtue. Naive or overeager optimism can lead us to ignore the fact that most people have mixed motives, and to envision a bright future so clearly that we are blind to the obstacles that stand between a hard now and a better then. Wise optimists trust - but verify; they have faith in the better, but do not ignore the worse, angels of human nature.

On Sunday afternoon, two senior Obama Administration officials called a telephonic press conference to announce a huge, positive new development in the healthcare reform effort. When I say senior, I mean pretty darn senior. And they seemed genuinely, sincerely excited about this mysterious new development - excited enough to buzz every national journalist's BlackBerry with an invitation to the conference call in the middle of Mother's Day. They considered the development significant enough to declare an embargo, forbidding journalists to write about it until 9 p.m. Eastern Standard Time. Because the President himself will be announcing this development officially tomorrow morning, they made the call - arranged by the White House press office - "on background," asking not to be identified by name or position.

The big news? Just this: a coalition of health insurance, hospital, pharmaceutical company, and physician trade groups, plus a major union, will promise the President Monday that they will reduce the rate of future growth in the cost of healthcare by 1.5% per year for the next decade.

That's it. And the President will be announcing it himself Monday morning, presumably with equal excitement.

Healthcare will continue to be increasingly expensive for consumers, but not quite as quickly as it was going to be. 7% per year inflation will become 5.5% per year inflation -- that is, if the participants keep their promise. Which, according to the officials, they'll do, not because there's any kind of enforcement mechanism - there isn't one - but simply because they're "Americans."

(That's a quote: Big Pharma, the health insurance lobby, the American Medical Association, hospital industry groups, et al. are going to reduce costs, and presumably profits, solely because they're good "Americans.")

The senior administration officials were hyperbolic, if not hyperventilated. One, focusing on the political battle to enact healthcare reform, called this promise by industry trade groups "a game changer."

The other official, focusing on economic issues, saw this as nothing less than the salvation of the entire federal budget:

"I don't think there could be a more significant step to help struggling families and to help the federal budget than reducing the growth rate of healthcare spending by 1.5 percentage points per year. With regard to the federal budget... the only way that we are going to restore the nation to a sound fiscal path over the long term is to reduce the growth rate in health care costs... Reducing the growth rate of health care costs overall by 1.5% per year would virtually eliminate the nation's long term fiscal gap. ... This, by an order of magnitude, is far more important to the fiscal trajectory that we're on, especially over the long term, than anything else that could be done."
Remember, we're talking about slightly reducing the rate of growth in health care costs, not a reduction in health care costs themselves. That's what's supposedly going to save both American families and the nation's fiscal problems "over the long term."

The journalists on the call, understandably, were more skeptical. The biggies queued up to ask questions: reporters from the New York Times, Wall Street Journal, Associated Press, Washington Post, NBC News, CNN, Los Angeles Times, Reuters. Some asked for wonkish, green-eyeshade details (answers were rarely forthcoming).

Other reporters questioned what mechanisms were in place for making sure those promises are kept (answer: there are none).

In response to a question from Reuters, one of the officials put his trust in the bully pulpit and the Fourth Estate, saying, "I don't know how many of you have made, in-person, a commitment to the President of the United States... There will be accountability not only through regular check-ins with the President of the United States but also through the media, because I have no doubt that you all will be checking up on them."

The other official simply believes that pharmaceutical, insurance and hospital trade groups are acting in patriotic good faith, saying, "These are very sophisticated trade associations which in the past have, one could argue, dragged their feet when it came to the subject of health care reform and certainly cost containment. They're coming forward voluntarily, approaching this President and saying, we want to be part of the solution, we want to be part of getting health care reform done... That fundamentally aligns these major provider groups with the President's goal of getting health care reform done this year. That is a game changer in our opinion."

Eliza Marcus of Bloomberg and Michael Fletcher of the Washington Post asked outright whether the healthcare industry was buying something with this concession. One of the officials dismissed the possibility denied that there have been any discussions at all about the public plan or any other quid pro quo, instead casting the industry coalition in purely patriotic terms: "They put it to me that everybody must share responsibility... they want to get everybody covered..., and they said to me, we know we have to do our part... this is them coming forward as Americans to get this done."

Am I the only one who is puzzled at the Administration taking these groups at their word? Big Pharma, for example, hasn't made a concession yet without something being in it for them. Many of the groups participating in this initiative historically have opposed health care reform and are large donors to the Republican and Vichy Dem politicians who are preparing to mount a political and rhetorical battle against health care reform, as evidenced most recently by the leak of Republican pollster Frank Luntz's crassly cynical talking points memo on how conservative and industry opponents of healthcare reform can "spin" Obama's plan so it sounds like Mandatory Gay Nazi Communism.

Continued>>>>
http://www.commondreams.org/view/2009/05/11-10

This whole thing is a joke. They aren't giving up anything.

let's see the for-profits compete with that. THAT is what they really fear.

All those feel good ads with there long list of side effects tacked on as an afterthought. People are not BRIGHT enough to choose drugs for themselves. BAN those damned ads.

no wonder prescription costs are so high--multi million dollar ad campaigns for drugs only your doctor should have to know about!

BAN THEM!!!

Single Payer is the only option. Period.

I am truly disappointed that Obama won't even allow SP a seat at the table.

or will they have to temper their budget outrage since we now seem to have an extra 2.1 trillion dollars to spend on health care?

You know, I don't get why people are upset that the "health care industrial complex" wants to talk. I see that as progress.

This "concession" should be seen in that light. They are Lucy holding the football for Charlie Brown (the American people).