Initial Reactions to Obama’s Speech
More than anything else I couldn’t help but think that Pres. Obama doubled down tonight and went for broke. He’s going to have a health
care insurance plan that includes (i) a public option, (ii) doesn’t add to the deficit, (iii) doesn’t cover illegal immigrants, (iv) covers everybody (whether they want to or not), (v) an independent panel of experts to decide whether doctors are providing the correct treatments or not, (vi) no cuts to Medicare or Medicaid, (vii) finally (FINALLY!) ending waste, fraud and abuse in the health care already provided by government, (viii) an independent panel (same? different?) that controls costs, and (ix) something undefined to address defensive medicine. Essentially, he’s promised HR 3200 plus a bunch of other stuff. In a nutshell, provided that he sticks to these promises (mmhmm) I think Obama just made sure that no health care insurance plan will ever be passed during his administration. Go Obama!
A couple of other quick thoughts:
(A) Regarding the public option, Obama claimed:
Despite all this, the insurance companies and their allies don’t like this idea. They argue that these private companies can’t fairly compete with the government. And they’d be right if taxpayers were subsidizing this public insurance option. But they won’t be. I have insisted that like any private insurance company, the public insurance option would have to be self-sufficient and rely on the premiums it collects. But by avoiding some of the overhead that gets eaten up at private companies by profits, excessive administrative costs and executive salaries, it could provide a good deal for consumers.
This was his counter to the “myth” that government would not be taking over health care, and that you would be able to keep your plan if you like it. However, assuming the president is correct, if the public option does not have the same “overhead” going towards “profits, excessive administrative costs and executive salaries” then won’t it be passing those saving on to consumers? And if so, won’t that price the private plans out of the market? After all, why would anyone choose to pay more for coverage if they don’t have to?
(B) Also regarding the public option, Obama claimed that its purpose is to introduce competition into the market place for insurance. He even compared it to the way that public schools compete with private ones:
It would also keep pressure on private insurers to keep their policies affordable and treat their customers better, the same way public colleges and universities provide additional choice and competition to students without in any way inhibiting a vibrant system of private colleges and universities.
Of course, no one is required to go to college, and these are state-run organizations that are heavily subsidized. Yet, just two breaths earlier, Obama claimed that the public option would not be subsidized by the government (albeit while also claiming that people who could not afford it would be given tax credits to cover it, but one lie at a time please). In addition, don’t we hear more and more complaints every year about how quickly the costs of college are rising? In short, how is this in any way an apt comparison, or if it is, how does it support Obama’s case that a public option is a good thing?
(C) Obama also made this strange claim:
Finally, our health care system is placing an unsustainable burden on taxpayers. When health care costs grow at the rate they have, it puts greater pressure on programs like Medicare and Medicaid. If we do nothing to slow these skyrocketing costs, we will eventually be spending more on Medicare and Medicaid than every other government program combined. Put simply, our health care problem is our deficit problem. Nothing else even comes close.
Doctors and hospitals routinely state that because they are not fully compensated by Medicare/Medicaid for the work they do, they are forced to raise prices on patients who pay through private insurance. Now Obama is trying to claim that it’s private insurance causing Medicare/Medicaid to go bankrupt?
Anyway, those are just my initial reactions. I’m really wondering if anyone else sees the same thing I do with respect to Obama’s demanding a bill that includes absolutely everything essentially killing any chance of health care reform being enacted. If the progressives won’t accept anything less than a public option, and the Blue Dogs won’t vote for a public option, and Obama vetoes any bill that adds to the deficit, how the heck is Congress going to pass anything at all?