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Incremental health care reform doesn't work, won't get Republican support

Posted on January 21st, 2010 by Jason Rosenbaum in Congress Watch

Some in power are now may now be thinking of scaling back health care reform to a bill that "could attract bipartisan support." They must reconsider. A scaled-back health reform plan would be fatally flawed, both from a policy and political perspective.

On the policy, there's no way to make a "scaled down" health reform bill work. Our health care system is a complicated and inter-connected network of pieces and policies. Changing one or just a few pieces of that system - as a scaled down health bill would seek to do - will cause immediate and severe problems in the rest of the system.

For example, you can't just do "insurance market reforms" in a vacuum. You can't outlaw discrimination based on pre-existing conditions, for example, without having everyone in the insurance system. Why? As soon as insurance companies can't charge more because you're sick, the sick in this country who have until now been denied care will flood into the system. This will raise prices for everyone, causing another problem. If prices go up, more people won't be able to afford insurance.

So, now you have to solve the problem of people not being able to afford insurance. The solution? Give people subsidies so they can afford insurance. But that creates a new set of problems. How are you going to give out subsidies and make sure that taxpayer money gets to the right people? How are you going to ensure people buy insurance with that money, and that this insurance is good insurance, not junk insurance?

To solve those problems, you need an entity that will monitor the insurance market and deliver the subsidies in an effective way. That's what the Exchange is. But just having an Exchange creates other problems. What's to stop insurance companies from just raising their rates? How do you force them to play by the rules? That's what the public health insurance option is designed to solve. If reform is enacted without it, it will be up to Exchange regulators to make sure we get a fair system. Given the history of insurance companies gaming regulation, there's real reason for pessimism.

You can't solve one problem in health care without creating another. You can't just do insurance market reforms - if you want to stop insurance companies from denying care, the top goal of health reform according to officials in the administration and in Congress, then you have to do the whole package.

Ezra Klein made the right analogy this morning:

Let's say you want to buy a house from me. And at the last minute, your portfolio take a big hit and you realize you have less money than you think. "Pare it back," you say. What do I do?

I can't just rip out the foundation. Then there's no house at all. The frame is important, too. So is the plumbing and the wiring. I can't leave that stuff half-finished, or the place is unusable. I can downgrade the lighting fixtures, but they won't save you much money.

Fundamentally, the things that make the house expensive all exist in concert with one another. The things that exist on their own — track lighting, say — no one really cares about. You can decide not to buy this house and instead buy a cheaper house. But you can't just make this house cheaper and still expect it to function as shelter. So too with health-care reform.

That's the policy. What about the politics?

The idea that we'll have bipartisanship on health care going forward is ludicrous. The Republican party just won a massive upset by being the party of NO. They perceive this strategy as a winning strategy for them and their candidates. Unless we show them otherwise by passing legislation over their objections, they have no incentive to compromise. NO is working and winning them elections, why change?

Senators like Max Baucus spent months and months working for bipartisanship. That process resulted in the incorporation of some truly bad ideas into the Senate health care reform legislation - ideas like the elimination of the public option - and it resulted in no Republican votes for the final health care bill.

At this point, even if the entirety of the health care bill was the words "Health Care Bill of 2010," Republicans would still vote against it.

There will be no bipartisanship on health care, and chasing it will only cost more time and bring us more bad policies. Republicans are determined not to meet Democrats half way.

Democrats have only lost one seat in the Senate. They still have 59 seats. That's a lot of seats. I'll expand on the process by which health care can pass in a future post. For now, it's absolutely possible to finish reform right and pass a good bill through both Houses of Congress. The only reason not to pass such a thing would be a lack of political will. That's the challenge of leadership that's now in front of President Obama, Speaker Pelosi, and Majority Leader Reid.

7 Responses to “Incremental health care reform doesn't work, won't get Republican support”

I find this demonization of all Republicans over-the-top. We are not all Michelle "Machwoman" Bachmann (tongue-in-cheek). Moreover, Senator Scott Brown didn't just "gas up the truck", he also voted for Romneycare. Shocker, I know but it's true.

Let's just accept what we can get and work from there. That's how S-CHIP started, for one.

I know taking advice from a Tea Partier, Palinsta is hard, but here it is. At least I'm transparent where I stand.

I'm pretty sure you didn't read the post. Incrementalism doesn't work for health care. So, your argument?

Mine is you can't get it all at once, so why give up? Because you're too sad over no public option? Because you're not big enough to shame Congressional Republicans to acknowledge there's a problem and come together? Gosh, since it seems it's just us here I hope not.

So: Why take a piece at a time, tinker with it and add on later when the support is there? Hey, I've been on a few campaigns where incrementalism is the norm. It's time the Dems sat down with Senator Brown and accepted an incremental bill. I've said for several days now since 'that truck' was gassed up to pass just a few basics. If you're right and a crisis is created by incrementalism, then fix it then.

Giving up now is just simply why Republicans get things done, sometimes for the better and sometimes just saying no is an accomplishment for Republicans. After all, the "No Child Left Behind" bill had and still has to be worked on and certainly was just as much Sen. Ted Kennedy's as W's. Yet for all its controversy, there were no left-wing tea parties & Governors saying no to the money (and I say in the minority, there probably should have been).

Back to Health Care: If rates go up because of handling people who need health care, well… where's the spirit of community to spread the load to care for all of us? I'm also probably in the tiny minority of Republicans who support community rating as well as rating based on health performance. I'll stop there.

You're still doing a lot of talking and not reading. You can't do it piecemeal. Policy-wise, it does not work. Period.

But nobody is saying give up, that for sure.

I've read respectfully the Republican & free-market think tank plans - there are several. It's time to cut a deal or surrender.

Having several "pre-existing conditions", I don't exactly like the idea of insurance companies being able to discriminate. Better to spread the risk around insurance pools w/ some cost increases to all rather than the alternatives.

I also find the argument we're buying a house disingenous by Ezra Klein. No, we're buying a renovation. We already have a house of a health care program that insures an overwhelming majority but the roof leaks, the windows need to be replaced to double-pane, a new room & elevator are needed for a disabled family member and some of the plumbing needs bigger capacity. We can try for all of it, but we can't afford replacing every piece and hoping it fits. Better to buy some of the renovation NOW when we can try with a guy who just worked on Massachusetts' health care house named Scott as foreman, try it out and then fix it.

There you go. Sorry it's just us in the conversation. HCAN is a strong force for the government solutions side.

There won't be some cost increases. There will be lots. It won't solve the basic problem.

And yeah, surrendering doesn't sound much like a solution Congress or the country can get behind, but thanks.

 
 
 
 
 
 

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