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Nov 10 2009, 3:45 pm

Health Reform "Heavy on Health and Light on Reform"

Democrats are now accusing the White House of tolerating a bill that is all health subsidies and no cost reform. Unfortunately, I think they're right about the bill. But this is strange accusation. The White House isn't writing this legislation. It's setting guidelines. House and Senate Democrats are angry about the failure of bills written by the House and Senate Democrats. It's a bit like having your mother tell you to clean your room, then coming home from school to see your room isn't clean, and accusing your mother of tolerating a dirty room.

I like Rahm Emanuel's line a lot:

"Let's be honest," Rahm Emanuel said in a recent interview. "The goal isn't to see whether I can pass this through the executive board of the Brookings Institution. I'm passing it through the United States Congress with people who represent constituents."

Let's consider Medicare reimbursement rates as an example. A "robust" public option that tied reimbursement rates to Medicare would really help bring down medical costs for enrolled families. But that's out of the question politically, because rural doctors think they're paid less than urban doctors for similar procedures within Medicare already, and rural electeds will say, "No way are you building universal insurance on the back of my constituent doctors."

Thing is, the real "game changers" are inherently speculative, but many of them are in the Senate Finance bill -- an independent Medicare commission, an Innovation Center, pilot programs, comparative research investment, electronic records. Democrats understand how hard it will be to make cuts to Medicare. They understand constituent demands put a straitjacket on cost-control mechanisms. What exactly do they want, or think they can achieve?

Comments (3)

It's possible that there's no way they can buy off all the interest groups involved and still have a workable system. Much less one that the CBO will score as neutral, even under their fantasy-land assumptions.

So perhaps it will still all go down in flames. We can only hope.

Paul in Athens

"because rural doctors think they're paid less than urban doctors for similar procedures"


No thinking involved. The factual numbers are there. Rural is paid less than urban for the exact same proceedure. And Medicare and Medicade have ruined health ~care~ by forcing providers out of rural areas to relocate to urban areas.

I hope they get something straight. First lets get prescription medication under control so all sales outlets sell at a fixed price on prescriptions, (non generic) ie Rite Aid selling for 400% plus to make up for other sales. Doctors are on a fixed price! We need to set prices on how insurance companies can charge for administrating a services. I don't trust the Dem's to set the bar!