Free Markets, Free People

Daily Archives: July 22, 2009


The Transparent Administration – Part II

I noted the other day that the Obama administration was hiding its revised budget numbers from the public until August. Obviously, in light of the push to pass health care legislation, they don’t want anymore bad news out there than the CBO has already delivered. And, of course, there’s no doubt that had the news been good, they’d have fallen all over themselves to publish it.

That brings us to our “transparency” moment today. This will probably ring a familiar bell:

Obama administration officials have rejected a watchdog group’s request for a list of healthcare industry executives who’ve been meeting secretly in the White House with Obama staffers to discuss healthcare changes being drafted there and in Congress.

According to the Citizens for Responsibility and Ethics in Washington, which is suspicious of the influence of health industry lobbyists and company officers, it received a letter from the Secret Service citing an Obama Justice Department directive and denying access to visitor logs under the “presidential communications privilege.”

Sound familiar?

Of course it does. But since Darth Cheney and the evil oil executives weren’t involved, my guess is it will hardly make a ripple among lefty critics of the Bush administration.

Promises, promises, this guy was all about promises, remember?

The Problem

Lobbyists Write National Policies: For example, Vice President Dick Cheney’s Energy Task Force of oil and gas lobbyists met secretly to develop national energy policy.

Secrecy Dominates Government Actions: The Bush administration has ignored public disclosure rules and has invoked a legal tool known as the “state secrets” privilege more than any other previous administration to get cases thrown out of civil court.

But you know, the new guy would never do that. He promised!

And you remember the criticism from Democrats and the left about Bush and his signing statements?  Well, guess what?

Congressional Democrats warned President Barack Obama on Tuesday that he sounded too much like George W. Bush when he declared this summer that the White House can ignore legislation he thinks oversteps the Constitution.

In a letter to the president, four senior House members said they were “surprised” and “chagrined” by Obama’s statement in June accompanying a war spending bill that he would ignore restrictions placed on aid provided to the World Bank and International Monetary Fund.

The rebuff was reminiscent of Bush, who issued a record number of “signing statements” while in office. The statements put Congress on notice that the administration didn’t feel compelled to comply with provisions of legislation that it felt challenged the president’s authority as commander in chief.

Democrats, including Obama, sharply criticized Bush for his reliance on the statements. Obama said he would use them sparingly and only if authorized by the attorney general.

Hope and change.

~McQ


Obama: Selling a Pig in a Poke

Does it bother you that a president who is out pushing like hell to pass a bill that will fundamentally change the way we receive health care, and apparently most now believe that change will be negative, apparently isn’t familiar with what he’s pushing?

With the public’s trust in his handling of health care tanking (50%-44% of Americans disapprove), the White House has launched a new phase of its strategy designed to pass Obamacare: all Obama, all the time. As part of that effort, Obama hosted a conference call with leftist bloggers urging them to pressure Congress to pass his health plan as soon as possible.

During the call, a blogger from Maine said he kept running into an Investors Business Daily article that claimed Section 102 of the House health legislation would outlaw private insurance. He asked: “Is this true? Will people be able to keep their insurance and will insurers be able to write new policies even though H.R. 3200 is passed?” President Obama replied: “You know, I have to say that I am not familiar with the provision you are talking about.”

It’s only a question that’s been in the news for a week after it was raised in an Investors Business Daily editorial. That’s the entire reason the blogger brought it up. Salesmanship 101 – know your product. He’s been so busy flapping his jaws about how we have to pass this now that he hasn’t even taken the time to understand what “this” is.

IBD said the provision would, in effect, outlaw private insurance.

The Heritage Foundation did a little digging into this provision to figure out the real impact it will have. Here’s what they have to say:

[T]he House bill does not outright outlaw private individual health insurance, but it does effectively regulate it out of existence. The House bill does allow private insurance to be sold, but only “Exchange-participating health benefits plans.” In order to qualify as an “Exchange-participating health benefits plan,” all health insurance plans must conform to a slew of new regulations, including community rating and guaranteed issue. These will all send the cost of private individual health insurance skyrocketing. Furthermore, all these new regulations would not apply just to individual insurance plans, but to all insurance plans. So the House bill will also drive up the cost of your existing employer coverage as well. Until, of course, it becomes so expensive that your company makes the perfectly economical decision to dump you into the government plan.

President Obama may not care to study how many people will lose their current health insurance if his plan becomes law, but like most Americans, we do. That is why we partnered with the Lewin Group to study how many Americans would be forced into the government “option” under the House health plan. Here is what we found:

* Approximately 103 million people would be covered under the new public plan and, as a consequence, about 83.4 million people would lose their private insurance. This would represent a 48.4 percent reduction in the number of people with private coverage.

* About 88.1 million workers would see their current private, employer-sponsored health plan go away and would be shifted to the public plan.

* Yearly premiums for the typical American with private coverage could go up by as much as $460 per privately-insured person, as a result of increased cost-shifting stemming from a public plan modeled on Medicare.

So it ends up not killing the private insurance business outright with a bullet through the brain, but instead, by slow strangulation. Same effect, but it will just take much longer. Legislate rules and requirements which will up the cost of private insurance to the point that the economic incentive is to dump it in favor of the cheaper public option.

Like your plan? Like your doctor?

Too bad.

But the man who promised you could keep both couldn’t be bothered to become “familiar” with this particular “provision”.

~McQ