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Democrats bargain with Washington on health care

By | July 19, 2009, 6:20 AM PDT

The health care debate has become an argument, not between Democrats and Republicans, but between Democrats and institutional Washington, where cynicism and conflict rule.

The final offer from the right seems to be a Cato Institute plan that would require everyone buy health insurance but offer “health status insurance” on that insurance for those who fear their policies might be cancelled. (And insurance on that health status insurance? And insurance on that insurance?)

The Cato plan is seen as proof Republicans are not seriously engaged in the debate.

Democrats have rolled out two of the three bills they must propose before serious negotiations can start.

The CBO criticism drew massive headlines.

This despite the fact that, under Senate rules, only the Budget Committee can deal with changes in the tax laws and that committee, under Sen. Max Baucus, has not yet reported a bill.

The criticism, and the headlines, are a grand kabuki hiding the real action in the Budget Committee.

While liberals fear a bipartisan “gang of six,” including Maine’s moderate Republicans, is trying to scuttle the bill, at least one of them, Sen. Ron Wyden of Oregon (above, from his Web site), is actually working to save the bill with a proposal he calls the Free Choice Act.

The idea is that the uninsured, small businesses and the self-employed be offered a “health exchange,” a  choice of plans to buy, but those who don’t like any get a voucher, covering two-thirds the cost of the lowest-cost plan available.

People will use the voucher, and their own cash, in the market. The market pressure from this process would be on the side of controlling costs, and gradually everyone would be allowed to buy care under the exchange.

There are similarities between this and a plan put forward by lobbyist Bob Laszewski, which reformers have praised. A key difference is it relies on market pressures, not tax mandates, to force costs down.

Everyone knows how to push down costs — preventive care and best practices. The question has always been how to get those ideas into the market, and whether that’s possible without a single-payer system, for which there is only limited support.

Once Wyden gets the Gang of Six on board with a version of his idea the Budget Committee will release its bill The Gang wants assurances that, if government is to offer a public option, there is real pressure on the system to adopt these cost-saving techniques.

Once Washington is assured that the health care cost curve can be driven down toward what other countries pay, the kabuki will end and a final bill will move.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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RE: Democrats bargain with Washington on health care
It is a shame that some Americans are so gullible, to the outlandish propaganda and lies spat in the newspapers, television and radio about Obama?s health care agenda. They have demonized the British, Canadian and other worthy plans. Hidden under a sub-rosa undercover, these radical entities are determined to keep the special interest organizations in absolute power. Comprising of the money-draining profitable insurance companies and their rich stockholders. They don't want any changes to the broken system of medical care, because it will hurt the status quo. I was born in England, in the county of Sussex and until the inception of the European Union and the European Parliament dictating to Britain. That they must accept millions of foreign workers, the nations medical system was exemplary. I never had to wonder if I would have to file bankruptcy, to pay my medical bills, or listen to the incessant ring of debt collectors on the phone.


On several occasions I ended up in the cottage hospital and their was never a cost applied to it, never a ream of paperwork. No doctor, no hospital or specialist ask me for my Social Security number, drivers license or if I was covered by a predatory for-profit insurer. Today the British Isles is being submerged under a barrage of legal and illegal immigrants, who have never paid into the system, have caused some rationing. Prior to the importation of foreign labor my trips to doctor, to hospital, the eye or a dentist was paid from my taxation. Unless we pass a national health care agenda, Americans will never know what it's like to breeze through their lives, without worrying about paying for health care? Tell your Senators and Congressman you want an alternative to the--GET RICH-- insurance companies, before a Universal health care is killed. 202-224-312 REMEMBER THE INVESTORS AND STOCKHOLDERS DON'T WANT THEIR PIECE OF THE $$$TRILLION$$$ DOLLAR PIE DISTURBED. EVEN SOME POLITICIANS HAVE THEIR DIRTY FINGERS IN THE PIE?
AS AN ALTERNATIVE TO THE PRIVATE HEALTH CARE, A GOVERNMENT SINGLE PAYER SYSTEM WILL ASSIST IN REVITALIZING THE WILTING US ECONOMY.
Posted by Brittanicus
19th Jul 2009
+1 Vote
+ -
An alternative way of doing it
There is an enormous amount of technical and payment infrastructure in the insurance system. It would be enormously wrenching to scrap it.

However, by providing an alternative to that system, the free market may work its will. Maybe insurance systems will get better. Maybe people will opt for the single-payer system.

In a free society, we do things using freedom rather than fiat. This is messy in the extreme. Compromise is hard. But it generally works, eventually. If you don't have to watch the sausage being made, there's nothing better than a hot dog and a beer at the ball game.

Thanks so much for writing. Stay in touch.
Posted by DanaBlankenhorn
19th Jul 2009
+1 Vote
+ -
If it is good enough for us......
If universal health care is such a good plan then why aren't members of congress going to be under the same plan ? No sir....they are going to keep their existing plan. If it is good enough for us then it should be good enough for federal employees. That way they can suffer along with us when this poorly planned plan is released.

the truth is that no one knows what is in this plan and no one is going to read this 1200 page piece of legislation. Why is there a shroud on many of these details ? Why are the dems in such a hurry to ram this through ? Because they don't want us to know what is in it.

A gentleman I was conversing with from Canada was bragging that his healthcare was free and that 15% of his income goes towards healthcare. Are you kidding me ? That's free ?

It is true the stories we hear about government-run healthcare in other countries. I have a lot of family in Italy. Long lines, rationing, you have to go to a major city to find a half-way decent doctor, and mis-diagnoses.

In this bill private insurance will become illegal. I thought we were going to have choices ? Fact is they will try to railroad us into this plan. No thanks. Then you will be subjected to classes when you reach a certain age that will cover how to let go of your life and encourage you to die early. Since when does the government play god ? There are countless people who have fought long odds to defeat their illnesses but now the government will decide if you are worth the risk.

This plan will be costly. Another entitlement program that the government must maintain. Government is slow, wastefull, and inefficient. It has no business running something as large as healthcare. This plan does not work anywhere else in the world what makes anyone think it will work here ?

This is about the government having more control and dictating to its citizens. Stand up against this. We will all be sorry otherwise.
Posted by pizzaman7
22nd Jul 2009
+1 Vote
+ -
RE: Democrats bargain with Washington on health care
Just a few thoughts:

Does anybody remember their economics class? Their is a stage of society known as Socialism - a collective governmentally owned and administrated means to produce and distribute goods. This social purgatory is nestled in between Capitalism and Communism. Let's look at the theory of Marxism. Marx stated that socialism IS the transitional stage from Capitolism to Communism. Some maybe most of you reading this may not remember the infamous Adolf Hitler and his rise to power and twisted theory born of Marxism called Nazism

Freedom of choice is what this country was built on we escaped a Monarchical government once before, should we be closing the doors of freedom to give our government more control than they already have? We have gone to war to protect ourselves and others from the oppression of communistic and imperialistic and monarchial governments.

Democracy is the type of government our forefathers established this country under, where the supreme governing power is the vested interest in the people by representation of elected delegates. This means we THE PEOPLE of the UNITED STATES are electing some one to office, responsible for the voice of our opinions and requests. We depend upon our representatives and senators to make the HONEST and RIGHTEOUS decision for the good of the PEOPLE, not the big businesses and corporations. Big business spends millions of dollars on lobbying and supporting their selected candidates, hoping that they will successfully influence public officals to sway the legislation to their side.

Where we should be looking is not towards a socialistic health program but towards a revision in the health care industry. The drug companies and insurance companies regulate the cost of what will be charged and paid for a certain drug. Insurance companies may not decide to pay for a certain drug or treatment because the business decision is to much of a risk to them. The coldness of their decisions is business related and not in favor of the public they serve. Oh sure Medical research works hard to produce new cures for our ailments and scientific breakthroughs in drugs and procedure through RESEARCH, a word that invariably rewards us with the highest price tag believed, that the public can bear. The Insurance industry their profits may not be from their incoming flow of premiums, however they would not be able to make their investments if they did not have the cash flow.

We can control this through our government legislature; require our representatives to enforce the lowering of cost of premiums, the manufacture of drugs and the acceptance of drugs and treatments. Big business will continue, the owners may only be able to have 3 or 4 homes instead of 6 or maybe the private jet will need to go public. We have allowed these big business to grow their wealth and live in excess at our expense.

Don't get me wrong there is nothing wrong with being rich, however if it is at the cost of being callous and greedy and does not serve the public, then their should be reconsideration on their parts to make the RIGHT choice.
Posted by Shillelagh
2nd Aug 2009
+1 Vote
+ -
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Where does Idaho rank? We have been living in Montana for the past 5 years and I am not supri sexshop online to find it #3 on the "worst" list. Considering a produto eroticomove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by talento10
25th Jul 2011
+1 Vote
+ -
RE: Democrats bargain with Washington on health care
Just a few thoughts:

Does anybody remember their economics class? There is a stage of society known as Socialism - a collective governmentally owned and administrated means to produce and distribute goods. This social purgatory is nestled in between Capitalism and Communism. Let's look at the theory of Marxism. Marx stated that socialism IS the transitional stage from Capitalism to Communism. Some maybe most of you reading this may not remember the infamous Adolf Hitler and his rise to power and twisted theory born of Marxism called Nazism.

Freedom of choice is what this country was built on we escaped a Monarchical government once before, should we be closing the doors of freedom to give our government more control than they already have? We have gone to war to protect ourselves and others from the oppression of communistic and imperialistic and monarchial governments.

Democracy is the type of government our forefathers established this country under, where the supreme governing power is the vested interest in the people by representation of elected delegates. This means we THE PEOPLE of the UNITED STATES are electing some one to office, responsible for the voice of our opinions and requests. We depend upon our representatives and senators to make the HONEST and RIGHTEOUS decision for the good of the PEOPLE, not the big businesses and corporations. Big business spends millions of dollars on lobbying and supporting their selected candidates, hoping that they will successfully influence public officials to sway the legislation to their side.

Where we should be looking is not towards a socialistic health program but towards a revision in the health care industry. The drug companies and insurance companies regulate the cost of what will be charged and paid for a certain drug. Insurance companies may not decide to pay for a certain drug or treatment because the business decision is more of a risk to them then they wish to take. The coldness of their decisions is business related and not in favor of the public they serve. Oh sure Medical research works hard to produce new cures for our ailments and scientific breakthroughs in drugs and procedure through RESEARCH, a word that invariably rewards us with the highest price tag believed, that the public can bear. The Insurance industry their profits may not be from their incoming flow of premiums, however they would not be able to make their investments if they did not have the cash flow.

We can control this through our government legislature; require our representatives to enforce the lowering of cost of premiums, the manufacture of drugs and the acceptance of drugs and treatments. Big business will continue, the owners may only be able to have 3 or 4 homes instead of 6 or maybe the private jet will need to go public. We have allowed these big businesses to grow their wealth and live in excess at our expense.

Don't get me wrong there is nothing wrong with being rich, however if it is at the cost of being callous and greedy and does not serve the public, then there should be reconsideration on their parts to make the RIGHT choice..
Posted by Shillelagh
2nd Aug 2009
+1 Vote
+ -
vfa
have been living in Montana for the past 5 years and I am not supri sexshop to find it #3 on the "worst" list. Considering a sexy shopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own
Posted by talento10
25th Jul 2011
+1 Vote
+ -
RE: Online Makeovers for Baby Boomerss
We have been living in Montana for the past 5 years and I am not supri sexshop to find it #3 on the "worst" list. Considering a sexy shopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by marquesthomas
24th Jul 2011
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