July 29, 2009
Public Plan Option (Bill Press)
Don’t look now, but Democrats are about to abandon their commitment to a public plan option, if they haven’t already done so.
In every public appearance, President Barack Obama continues to push the public plan option as an essential element of any healthcare reform legislation. But, from the White House, different signals are being given.
For the second day in a row yesterday, Press Secretary Robert Gibbs told reporters the president was open to all options for providing more choice and more competition, including the insurance cooperatives proposed by the Senate Finance Committee. In fact, Gibbs told NBC’s Chuck Todd that at this point the president had “no preference” between the co-ops and the public plan option.
What’s going on? I think it’s pretty clear what’s going on: The White House is laying the groundwork for dumping the public plan option in order to win a few Republican votes for healthcare.
If so, it’s a total betrayal of what the president’s been talking about. Regional, nonprofit insurance co-ops may be a good idea, and they have worked in some rural parts of the country, but they’re no substitute for a national, Medicare-like, affordable public plan option that would make health insurance instantly available to all who can’t afford it.
http://pundits.thehill.com/2009/07/29/public-plan-option/------------------------------------
House Democrats make a healthcare deal
By Noam N. Levey and Janet Hook
Los Angeles Times
July 30, 2009
The deal, worked out between a group of fiscally conservative Democrats and Rep. Henry A. Waxman (D-Beverly Hills), chairman of the Energy and Commerce Committee, changes the way a proposed government-run insurance plan would operate in order to allay concerns that it could crowd out private insurers.
"I think they've had an inordinate amount of input," Rep. Pete Stark (D-Fremont) said of the more conservative "Blue Dog" Democrats. "And every time people have given them some consideration, they want more."
Under the agreement between Waxman and the Blue Dogs, House Democrats retained the idea of creating a government insurance program, which they believe will help drive down costs and give many consumers a new insurance option.
But the deal takes steps to ensure that the government plan would not gain advantages as a result of the federal management of Medicare, the insurance program for seniors that can negotiate low rates because of its massive size.
Originally, the government insurance plan would have paid doctors, hospitals and other providers a rate set slightly higher than Medicare's. Insurers and hospitals, as well as many lawmakers, feared that arrangement would mean the government plan would incur lower costs than private insurers and could charge low premiums -- driving companies out of the market. Consumers, critics said, ultimately could be left with only one choice for health coverage: the government.
Under the deal struck Wednesday, the government insurance plan would have to negotiate with hospitals and other providers apart from Medicare. That could make it harder for the federally run plan to charge very low premiums.
Rep. Mike Ross (D-Ark.), a leading Blue Dog who worked on the House deal, called the changes to the government insurance plan "a huge win."
But more-liberal members protested. Rep. Patrick J. Kennedy (D-R.I.) said that by limiting the government's ability to drive insurance rates lower, the deal "lets insurance companies off the hook" for savings they had already promised the White House.
"It's a sop to the insurance companies," he said.
Please read the complete article at:
http://www.latimes.com/news/nationworld/nation/la-na-healthcare-house30-2009jul30,0,4773886,full.story