Free Markets, Free People

Daily Archives: July 24, 2009


1st Amendment – Void Under Capital Dome?

Apparently lawmakers are now required to submit any language they plan sending out to constituents through the Democrats who sit on the Franking Commission.

It seems the term “government run healthcare” rankles the Dems.

Rep. John Carter (R-Texas), the secretary of the House Republican Conference and a former District Court Judge, is having his messages to constituents censored by Democrats on the Franking Commission. Republicans are no longer allowed to use the words “government run health care” in the communications to their constituents.

Carter received an email from the Franking Commission informing him of the censorship.

“It came to me from the Franking Commission and I have the email from the Franking Commission here if you’d like to see it,” Carter said. “We held a telephone town-hall… When you hold telephone town-halls you have a recorded message that introduces the town-hall and the subject matter you’re going to be talking about. You have to now submit that language to the Franking Commission.

Now wait – “franking” is postage. I.e. each Congressional member is given franking privileges (which essentially means his or her signature is all that’s needed to send mail) and able to send constituent mail without postage (although the USPS does get reimbursed for delivering it). Here’s how it is described in a quick search I did:

A six-member bipartisan Commission on Congressional Mailing Standards, colloquially known as the “Franking Commission,” is responsible for oversight and regulation of the franking privilege in the Congress. Among the Commission’s responsibilities is to establish the “Official Mail Allowance” for each Member based proportionally on the number of constituents they serve.

How that evolved into something which has a say on telephone town-halls is a bit mystifying to me but a good example of the mission creep for which bureaucracies are famous (take heed all of you wanting government run healthcare).  Now I’m not here to defend franking privileges, but unlike John McCain, I am an  ardent supporter of the 1st Amendment.

Continuing with the story, Rep. Carter says:

“What we proposed as language was as follows, ‘House Democrats unveiled a government-run health care plan,’” Carter said. “Our response from Franking was, ‘You cannot use that language. You must use, ‘The House majority unveiled a public option health care plan,’ which is Pelosi-speak or ‘just last week the House majority unveiled a health care plan which I believe will cost taxpayers…’”

“I would submit to you this is a free speech issue, guaranteed by the Constitution of the United States,” Carter said.

Yeah, something about free political speech as I recall.

It is also a great example of why the Constitution doesn’t stand a chance in the face of partisan politics any more.

Let freedom ring!

~McQ


IBD Stands By Story About Private Health Insurance

Last week Investors Business Daily ran an editorial claiming that the new 1018 page House health care reform bill had a provision (on page 16) that outlawed private insurance.

Well they caught some flak for that, with detractors claiming that they didn’t read far enough and had they done so they’d have found that wasn’t the case. IBD did the right thing and did indeed go back an revisit their claim.

Conclusion – they stand by their story. Here’s why:

Our impression was further confirmed Monday when Rep. Dave Camp, the ranking member on Ways and Means, told us that “any existing plan will not be able to enroll members.” There will be “a prohibition,” the Michigan Republican said, “on enrolling individuals in private health plans” after the bill becomes law in 2013.

It was also confirmed by Ways and Means staff director Cybele Bjorklund, who, in response to questions from Republican Rep. Paul Ryan of Wisconsin during a committee markup session, admitted last week that insurance providers “cannot create new policies outside of that window outside of the exchange.”

Many of those who have said we are wrong pointed to this health care exchange mentioned by Bjorklund as evidence.

But the exchange will not be a private market. It will be a program in which Americans can buy individual plans from private companies in competition with the “public option” provision of the bill that will provide taxpayer-subsidized coverage.

So in essence you’ll be limited to an insurer on the exchange, with all the regulation and mandates applied which is turn competing with a “public option” plan. You can’t just call up a private insurer and gin up your own brand and level of coverage.

Instead, you’re limited to the slim pickin’s the “exchage” will offer:

The exchange will be a highly regulated clearinghouse of providers that meet the government’s standards. Only those providers that follow Washington’s stringent guidelines will be allowed to join this exclusive club.

The government, through an unelected health choices commissioner, will set premiums, dictate benefits, determine deductibles and establish coverage. Exchange participants will be required to insure anyone who asks to be covered and to accept all renewals. Ryan believes the weight of the mandates will mean only five or six providers will be able to survive and sell coverage in the exchange.

Yes friends, as we’ve seen so often from this administration already, this is government picking winners and losers. From 1300 competing insurance providers today to “five or six”. That’s the government’s idea of “competition?”

And again, to reinforce the point, that is the only place you’ll be able to get your insurance should, for instance, you change a job. Or, as anticipated, your employer opts to quit providing it and essentially points you toward the exchange.

Even Henry Waxman admits this even while trying to convince reporters that IBD had it wrong in their first editorial:

In trying to prove the exchange will be a private market, the bill’s own supporters actually prove our point. Rep. Henry Waxman, D-Calif., complains in a letter that last week’s editorial is “factually incorrect and highly misleading” yet admits three paragraphs later that outside the exchange, providers “can’t continue to market” existing “policies to new customers.”

Restraint of trade by regulation. Insurers are limited to the “exchange” and if not on the exchange, they’re essentially not in the health insurance business other than servicing existing policies. Obviously as their pool shrinks, their prices will go up, causing their pool to shrink further. That’s competition? That’s a “market”?

As John Stossel said the other day:

Like the politicians, most people are oblivious to F.A. Hayek’s insight that the critical information needed to run an economy — or even 15 percent of one — doesn’t exist in any one place where it is accessible to central planners. Instead, it is scattered piecemeal among millions of people. All those people put together are far wiser and better informed than Congress could ever be. Only markets — private property, free exchange and the price system — can put this knowledge at the disposal of entrepreneurs and consumers, ensuring the system will serve the people and not just the political class.

Yet here again we have the central planners deciding what will be a “market” and of what it will consist. I hate to break it to them, but that’s not at all a market. It’s an artifice created by legislators to give the veneer of competition to a “market” that is decidedly not one.

Instead:

Anything that is primarily steered by the hand of the government rather than the price signals that free markets so efficiently process on a daily basis would be an agency of the state.

The artificially legislated bars to entry will make this a captive process of the state.

And lastly:

Perhaps most damning to the argument of those who say we are wrong about the House bill outlawing new individual private coverage is the creation of the exchange itself.

If getting coverage from the exchange is the same as buying insurance in the private market, then why do we need it? The authors of the bill could have kept the private option by doing nothing.

In fact, if they really wanted a “market” and “competition” they should remove mandates and allow consumers to buy health insurance products across state lines. Allow the consumer to decide the type of coverage he wants and the amount he’s willing to pay. Review that with Stossel’s point about markets and you’ll begin to understand the power such a market would have in lowering insurance costs without the government having to do much of anything.

What Adam Smith said about the economic planner applies here, too: The politician who tries to design the medical marketplace would “assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.”

They don’t want competition, folks – they want control. And history tells us where that leads.

~McQ

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