Rahm Talks of Triggers in Healthcare Reform, But Doesn't Anyone Remember Medicare Part D?Submitted by meg on Fri, 07/10/2009 - 12:16pm. Analysis
A BUZZFLASH NEWS ANALYSIS
by Meg White
http://blog.buzzflash.com/analysis/854In examining and crafting policy, it is helpful to look at the recent past. The favorite comparison for our current efforts to reform healthcare is known as Hillarycare, the failed attempt at universal healthcare during the Clinton Administration. But there may be a much more timely (and ominous) yardstick to hold up to this current legislative process: President Bush's Medicare Part D prescription drug program for seniors. I know 2003 was forever ago, but does anyone remember how we ended up with Medicare Part D?
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The legislation (Medicare Part D) had a
"trigger" built in to supposedly protect consumers and taxpayers against huge cost increases in the program. If the bills became too large, a "public option" would kick in and tell Big Pharma what's what. Unsurprisingly, that threshold has not yet been reached. As a result, Big Pharma got a big windfall (a whopping $3.7 billion in the first two years alone) from Medicare Part D. But hey, that's what happens when you let lobbyists for the industry you're trying to reform write the legislation that does the reforming.
Now, that may seem like a narrowly-focused reform that has little to do with the massive overhaul our healthcare system needs right now. But the comparison is clearly something being bounced around the Oval Office, obvious thanks to a slip-up on Chief of Staff Rahm Emanuel's part in an interview with the Wall Street Journal this week (emphasis mine):
Mr. Emanuel said one of several ways to meet Mr. Obama's goals is a mechanism under which a public plan is introduced only if the marketplace fails to provide sufficient competition on its own. He noted that congressional Republicans crafted a similar trigger mechanism when they created a prescription-drug benefit for Medicare in 2003. In that case, private competition has been judged sufficient and the public option has never gone into effect. The deal with the hospitals follows a similar agreement with brand-name drug companies. And insurance companies were talking to Senate negotiators about cuts worth at least $100 billion over 10 years, according to two officials with knowledge of the negotiations.
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But the peep from Emanuel was telling. He says a "public plan" is only necessary if hospital bills balloon too large. That will set off a "trigger mechanism" like we were told would be available for the Medicare prescription drug program. You remember, that one which we haven't yet seen?