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Politico suggests conflict between public option and "cost-conscious" lawmakers

September 08, 2009 3:20 pm ET — 18 Comments

A September 8 Politico article described opponents of a public health insurance option as "cost-conscious" in false contrast to "liberals who demand a public option." In fact, both the House and Senate health care reform bills require the public plan to be self-sustaining, and the Congressional Budget Office concluded that a public option did "not have a substantial effect on the cost" of the Senate health committee bill.

Politico characterizes opponents of public option as "cost-conscious"

From the September 8 Politico article:

After a summer of setbacks, President Barack Obama has a clear roadmap for salvaging health care reform:

Convince skeptical Americans that a new system would actually help them, not limit their choices and care. Strike a compromise between liberals who demand a public option and cost-conscious centrists who call it a deal-breaker. Win over Sen. Ben Nelson (D-Neb.), an inscrutable moderate. And avoid Death Panels II, a rerun of the potent Republican attacks.

Contrary to Politico's contrast, public plan premiums would cover cost

House, Senate bills require premiums to cover costs of public plan. Both the House tri-committee bill and the Senate HELP committee's bill require the public plan to charge premiums sufficient to cover administrative costs as well as the cost of enrollees' benefits.

From the America's Affordable Health Choices Act of 2009, as introduced in the U.S. House of Representatives:

SEC. 222. PREMIUMS AND FINANCING.

(a) ESTABLISHMENT OF PREMIUMS. --

(1) IN GENERAL. -- The Secretary shall establish geographically-adjusted premium rates for the public health insurance option in a manner --

(A) that complies with the premium rules established by the Commissioner under section 113 for Exchange-participating health benefit plans; and

(B) at a level sufficient to fully finance the costs of --

(i) health benefits provided by the public health insurance option; and

(ii) administrative costs related to operating the public health insurance option.

From the Affordable Health Choices Act as passed by the Senate Health, Education, Labor, and Pensions Committee:

''(5) PREMIUMS. --

''(A) PREMIUMS SUFFICIENT TO COVER COSTS. -- The Secretary shall set premium rates in an amount sufficient to cover expected costs (including claims and administrative costs) using methods in general use by qualified health plans.

CBO: Senate bill's public plan does "not have a substantial effect on the cost or enrollment projections." In its July 2 preliminary analysis of the Senate HELP committee's bill, CBO found that, in the words of CBO director Douglas Elmendorf, the public option "did not have a substantial effect on the cost or enrollment projections largely because the public plan would pay providers of health care at rates comparable to privately negotiated rates -- and thus was not projected to have premiums lower than those charged by private insurance plans in the exchanges."

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    • Author by mk3872 (September 08, 2009 3:25 pm ET)
      1  
      Well that may be true, but MAN did the Dems do a lousy job of getting that information out to the masses
      Report Abuse
      • Author by BillJ-MN (September 08, 2009 4:30 pm ET)
        1  
        I think exhibiting lousy PR skills is part of the party platform.
        Report Abuse
        • Author by Limit Corp. Ownership (September 08, 2009 4:40 pm ET)
          2  
          I don't think anything was wrong with Democrats' PR skills...

          They could have the greatest PR skills in the world--wouldn't matter--the corporate media will still drive the debate according to what right-wing talk radio and Fox and the Noise Machine demands.

          The corporations were on high alert to attack health care reform, and they found the way to do it. If they didn't have the Town Hall crapola, they would have found something else.

          Report Abuse
          • Author by BillJ-MN (September 08, 2009 4:55 pm ET)
            1  
            I'm afraid I disagree. It's true that they have an uphill battle to fight against a well-organized right-wing echo chamber, but I think they've been deficient most of my life about getting their message out and countering the lies told about them. We need more head-on refutation of the lies. We need more Democrats speaking up against nonsense like Barney Frank did at that townhall. And, as much as I hate them, we need to be better at soundbites, slogans and labels.
            Report Abuse
            • Author by Limit Corp. Ownership (September 08, 2009 5:07 pm ET)
                 
              I do agree we need more Barney Franks...

              "Ma'am it's a testiment to the first amendment that this sort of vile, contemptible nonsense is propagated so freely."

              But, if we had more Barney Franks, the media would have spun it as Democratic arrogance, Democratic bullying, and then gone blithely on to the Death Panels, and all the rest of the lies and B.S.. They would just have portrayed poor conservative Town Hallers as victims.
              Report Abuse
              • Author by BillJ-MN (September 08, 2009 5:33 pm ET)
                   
                I think the attempt would have been there, but with enough voices speaking firmly in unison the right would find itself having to justify why the attacks are not "nonsense." The problems arise when the response to nonsense begins with something along the lines of "I'm afraid I'll have to respectfully disagree." or "I understand that you have concerns in that area ..." It is possible to put the nonsense-spewers on the defensive, but it has to be done firmly.
                Report Abuse
                • Author by Limit Corp. Ownership (September 09, 2009 12:12 am ET)
                     
                  You've got a good point BillJ...

                  You're right. Democrats are not speaking firmly as a united front.
                  Report Abuse
    • Author by revjmike (September 08, 2009 3:50 pm ET)
      1  
      How does this approach compare with the Don't Tax but spend anyway Republicans?
      Report Abuse
    • Author by bigbee (September 08, 2009 3:56 pm ET)
      1  
      Cost has nothing to do with the public option! The public option will charge premiums that will allow it to pay for itself. Subsidies for lower-income individuals purchasing plans in the insurance exchange will cost money. Some of that money will flow to private insurers, and some will flow to the public option. The subsidies drive the cost, not the public option itself.
      Report Abuse
      • Author by foghornleghorn (September 08, 2009 5:03 pm ET)
        1  
        Correct. And what the reform deniers/town hall teabaggers fail to realize (even after constant reminders) that the status quo exists only to fund CEO salaries and HMO profits to the rate of 30 cents on ever premium dollar.
        Report Abuse
    • Author by freedem (September 08, 2009 4:15 pm ET)
      2  
      Any Real cost conscious anyone would be going for the Single Payer or let anyone buy into Medicare, that is where the savings are.


      We are already paying more in public money alone (per person) than most countries with single payer systems that take care of everyone and toss out the plague of bureaucrats, letting the Doctors make the decisions.
      Report Abuse
    • Author by wesley (September 08, 2009 4:30 pm ET)
        2
      -- The Secretary shall set premium rates in an amount sufficient to cover expected costs --

      Sweet fancy moses...the old time and materials con...used by those that don't have a clue what the costs will be...lawls.

      While the CBO projects a $200+ billion hit to the deficit in the first 10 years...the costs explode during the last 5 years. They laughingly predict a "profit" of $45 billion in the first 5 years.

      Then as the program matures...the second 5 years balloons to a deficit of $283 billion.

      What happens in years 10-20? Easily deficit spending in the trillions of dollars given the govt's track record of managing Medicare.
      Report Abuse
      • Author by BillJ-MN (September 08, 2009 4:34 pm ET)
        1  
        "lawls"?
        wesley, was that you posting last Friday as wizbor4654?
        Report Abuse
        • Author by wesley (September 08, 2009 4:47 pm ET)
            2
          Nope...and I don't know what it means either...it just seemed kinda catchy...maybe he'll let us in on the secret.
          Report Abuse
      • Author by Limit Corp. Ownership (September 08, 2009 4:53 pm ET)
        1  
        Now Wesley is going to tell us about the wonders of private insurance...

        How as a nation we spend twice as much on medical coverage as those damn socialists (Great Britain, Japan, France, etc., etc., etc.) and get a much worse result. It's well-known that all these countries are just itching to have the bloated, broken, chaotic, incredibly expensive system that we have in the U.S. All these cute little countries are just clamoring to have Wall Street health care.

        Next up, Wesley will tell us how this bloated, privatized, Wall Street mess is "Good for Small Businesses."
        Report Abuse
        • Author by wesley (September 08, 2009 5:04 pm ET)
            1
          -- The French government is looking at ways to plug a gaping hole in its health care budget and may charge patients more for hospital stays, Budget Minister Eric Woerth said on Monday.

          France's health system is largely financed by the state and has been hailed as the best in the world by the World Health Organization. It is also one of the most costly and the government constantly struggles to control spending. - PARIS (Reuters)
          Report Abuse
          • Author by DellDolly (September 08, 2009 5:09 pm ET)
               
            They'll still pay a bunch less than we do for better overall care.
            Report Abuse
          • Author by loonz (September 08, 2009 6:15 pm ET)
            1  
            They spend half as much as we do per capita, everyone is covered, and they have better results.
            Report Abuse

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