July 23, 2009 11:02 AM

Obama's Secret Moves On Health Care

By
Marc Ambinder
(CBS)  The "On The Marc" column is written by The Atlantic's Marc Ambinder, CBS News' chief political consultant.


President Obama's kid glove theory of legislating on Health Care reform was too soft a touch for senior members of Congress who were tasked with writing health care legislation.

But last month, conflicts between Senate committees and between the Senate and the House reached a point where the lack of guidance from the White House about details was producing significant confusion about what Mr. Obama really wanted -- aside from the vague generalities about access to quality, affordable health care that he has stuck do since becoming president.

The White House was urged to be more specific on the following questions:

1. What role should states play in the health insurance exchanges? How much authority would individual states possess to regulate plans that were offered within their states?

2. Should there be a "public plan," and should it be "robust" -- the adjective used to describe a plan that could supplant private health insurance plans, or merely "competitive" -- revenue neutral and not receive any special attention or funding from the government?

3. Would Mr. Obama be willing to accept new taxes on health benefits?

4. Would he support proposals to give non-partisan, non-profit expert committees actual authority to streamline Medicare and Medicaid (absent a Congress veto)?

5. How much out of pocket money should individuals be expected to pay?

6. Did the White House want an expedited timetable? Was it content with the speed of legislative efforts?

Deciding whether to answer these questions put the White House in a little bit of a bind. Legislative director Phil Schilliro has made it his mission not to give Congress any rational reason to fight the administration on anything related to health care.

The more specifics Mr. Obama provided, the more fights there would be. From the start of the health care debate, Mr. Obama did not want the White House to be an obstacle.

Even his endorsement of the particulars was vague. The White House has not, in private, even, argued for a "robust" public insurance option. That's partly because there is no consensus among Obama advisers about the wisdom of a plan that would significantly increase government health care expenditures above and beyond the $1.2 trillion or so Mr. Obama expects to spend over the next ten years.

White House chief of staff Rahm Emanuel has floated the idea of a public plan that would be weak for a while -- perhaps five years -- and give the insurance industry the chance to cut costs, improve the quality of care and increase access (there would be metrics). And then, if the private sector failed, the public plan would suddenly be placed before the American people as an alternative to their current plan -- and it would be heavily subsidized, would cost less, and would cover more things.

Sen. Olympia Snowe (R-Maine), who often speaks with Emanuel, has proposed a hover-craft like plan in Congress.

The Cost?

The White House proposed to pay for universal health insurance by limiting charitable deductions for those in the top two tax brackets.

That proposal was DOA.

Senate Democrats, backed by the health care policy community, believe that the easiest and less intrusive way to pay for approximately half of the cost of reform over ten years would be to end the tax exemption for employer-provided health care benefits. Mr. Obama campaigned against this idea when Sen. John McCain (R-Ariz.) proposed it during the campaign, but he is not prepared to stand in the way of Congress.

How much would be taxed? Who would be taxed? This is a debate the White House will leave to Congress, too, although White House health care advisers clearly have some ideas and are sharing them privately.

For now, it's sufficient for members of Congress to know that Mr. Obama won't veto a bill that includes new taxes.

The Public And Doctors

The White House plans to stick to what it does best: using the bully pulpit of the presidency to convey urgency and to engage the stakeholders. That's been the strategy from day one, and we saw it amped up yesterday with the president's trip to Wisconsin, and will see it next Monday, with his speech to the skeptical docs at the American Medical Association conference.

The AMA's opposition to a public plan notwithstanding, the Obama administration believes that it's important, politically, to appear to be engaging the doctors in a way that the Clinton administration failed to do. The AMA's political and cultural biases aside, they worry that if the public perceives that doctors, as a community, oppose whatever plan emerges from the various Congressional actors, final status negotiations, to borrow a phrase from Middle East diplomacy, will be hard to achieve.

On the other hand, getting docs to buy into the idea of reform -- and making sure that the public is made aware of this buy-in -- gives the Democrats some maneuvering room.

On Monday, a White House official said, Mr. Obama will "offer the doctors a seat at the table. Whether they sit there is up to them. But everyone will know that they've gotten the offer."
By Marc Ambinder

Copyright 2009 CBS. All rights reserved.
Add a Comment See all 180 Comments
by HenryMassingale March 14, 2010 2:43 PM EDT
To see the true Health Care Tax forum you must stop thinking in 3-D,This multi tax forum is against a $100 Trillion Dollar system.. ...
To force pay into another system of failures within Health Care Insurance Groups.
This economy will not balance with this concept of a tax forum against the Health Care System. The issue of how to force pay into this system of Health Care may have worked but I am still troubled over the progressive tax forum within this Bill. It covers so many items and Countries that it only forces the system to adjust itself. In some areas, increases against the people and the troubled economy, and in other areas, less effects will be felt.
But this is my big problem, Government Officials seek help and they are to proud to ask us, ?the true working force of Government.? It is understandable they have failed the People and within the United States Of America all we ask is to see us as who we are and not try to bring us into this world of the intellectual. I guess our Prime Directive is that of Star Trek, so it must be understood that for millions of people we are just as happy as can be making $13.00 per hour and we have no interest in this world of politics, and how to be a Enstine. Government Officials must understand that there is a level of people within different parts of this Country, that seek to be only that they find to make them happy.
As for this economy well, it is said that the U.S.A. Arms Division has created enough arsenal to destroy every last creature in the world 2 times over,built with tax dollars. This would be funny if not for the irony of it. And now as time has passed Government Officials keep failing. Before 9/11 all the way to today.
As it is in a world of a system, when employees continue to fail, one or two things happen, one; you get fired, two; if you see into a person a good, then it is political correct to implement a penalty or roll back in pay. But this implement of penalty is more favored in the course of action in the Federal Employment World. So how to fix the economy and unite it with the Health Care issue. It would be in the Countries best interest to implement a 10% per cent penalty against every State, County and Government Official within this Matrix of failures. Hey what is that old saying, what is good for the Goose is good for the Gander. I am serous about this, it is past due to show that our Government Officials they have failed, their system failure reaches into this world of warnings that they brush aside as if the information is not worthy noting. From Pearl Harbor to 9/11/2001 to 3/07/2010 of our tax system and Health Care Reform. This 10% per cent penalty should go into the Health Care Forum.
The big problem that Government Officials have is that they have no street credit. President Obama still has some but if he does not take his family and step away from these dueling Parties, that fight over this Health Care Dollar, and stand with Us he will lose all credit from the streets to the county.
President Obama, I would say to you, you have one last chance to regain the hopes and dreams of the American People. To reach out in a concept that states, if there is 250 million people in trouble because of these failures, I would give all my money to them and then I would say to all that I gave money to, ?I have no money left, would you all please give me $1.00 back and then I would have $250. million dollars to start all over again.?

As for this $100,trillion dollar in site.............
Results 1 - 10 of about 685,000 for net worth of medicine development industry
Just to show how deep this Health Care Tax split petition reaches. The term split petition is used because of the Tax factor plan that is not seen because of the intent not to show a capital Taxing of close to a $100 trillion dollar package, a yearly system income, not profit.....

Some have stated that I clam to have spiritual in site or something of the sort. I assure you this is not true, so when I state that I asked God to help, it is my way of saying hey Bobby show me how to work on theses Chevy engines. But I do thank you for the consideration. Consider me a cross of Jethro Bodine from the Beverly Hill Billies with my 10th. Grade education and Vin Diesel from the move Pitch Black.
So drop on by and see page 100 at our site and follow the blue pill link

Health Care within a moral value, is to ,

{ GIVE LIFE TO HOPE WHERE THERE IS NONE }

Henry Massingale
FASC Concepts in and for Pay It Forward
www.fascmovement.mysite.com on google. yahoo, and Aol.com
please take the time and visit all my new friends on the net and if you wish to post with FASC Concepts you will be most welcomed. So join us and share your ideas as one in one voice.
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by Dr Dan 123 June 16, 2009 10:19 AM EDT
This is what happens when a crackhead get's in power.
Reply to this comment
by cydygitt1 June 14, 2009 12:51 PM EDT
OK - so you just defined the problem - so how is universal health care going to change this set-up?
Posted by forrestlayne
---------------------------

I'm glad you asked.
1. Coverage at lower cost to patients. All the federal government payers (VA, military, medicare, medicaid) provide coverage at lower costs because they are non-for profit and have less overhead costs. Having a competitive public plan will force private insurers to reduce their overhead and charge lower premiums if they wish to compete and stay in business.

2. Bargaining Power- can serve to lower and drug prices, insurance premiums, and maybe even costs for diagnostic tests/procedures. Being part of a government pool similar to the congressional plan gets you a lower premium than shopping for insurance as a single buyer. The government, as a payer, can bargain for lower drug prices just like the VA does. All that leads to less money in the pockets of these industries. Caveat: being too agressive can actually hurt pharmaceuticals and biomed companies in coming up with new technologies,,, etcc. (but not necessarily)

3. Universal coverage brings more people into the system. This can provide more revenue and increased economic activity within the healthcare system. It also provides opportunities to reduce cost by avoiding ER visits and providing better preventive care (primary and secondary).


4. Universal coverage helps avoid other problems
- Insurers reduce administrative cost since they won't have to screen patients and
decide what services to pay for or not.
- insurers have less incentives to increase premiums since they now have more
customers
- Having more economic activity also bring more business to pharmaceuticals and
biomed companies, which helps offset their reduced profit from the government
bargaining for lower prices. this also goes for private insurers

5. Universal healthcare facilitates reforms that can reduce other costs. For example, health IT will potentially reduce wastes. Best practices, implementing evidence-base medicine can help avoid unnecessary tests and procedures.

This is just to answer your question on the cost side, reducing the amount of extra money that go into the bank coffers of corporations and shifting it to patient care and cost savings to society at large. I didn't touch on the benefits to quality of care or just the moral and economic value of keeping citizens healthy.
Posted by lagnappe
-----------------------

Thank you......this was such a good post with much valuable information that I feel it needed to be repeated in its entirety!
Reply to this comment
by cydygitt1 June 14, 2009 12:37 PM EDT
I have experience with both, as a physician. I am not aware of problems getting medicare to pay up any more than problems with private insurance companies. I have received several letters from private insurers refusing to pay for hospital stays and other services for patients. Medicare has had solvency problems in the past and there hasn't been any draconian cuts in benefits.
On the other hand, private insurers face the same questions even to a greater degree. Their fiduciary duty is to increate profit. They do so but cutting cost (i.e cut benefits, deny coverage, limit reimbursment rates, ration care) and increase revenue (i.e charge more money). How do you think, they actually increase their profits even in tough economic times? In the 1990s, HMOs tried to cut cost by limiting payments to providers, restrict patient choice, require gatekeepers, and yes ration care,etc... Contrary to some people's perception, that was almost entirely from the private sector. And when the American people kicked up dust about it, they retracted by responded by providing less coverage and charge more for premiums.

The point is we raise all these fears about the government but we forget to compare it to the private sector. When it comes to healthcare coverage and delivery, the private sector has not proven to be better in any way.

As for the VA, I can testify to some of the problems that exist. However, studies show that the VA is just as good in quality of care and patient satisfaction as the rest of the healthcare system. Veterans get a lot of cool services from the VA ( i can list them for you). And they are second to none in cost control and cost-effectiveness.

You wanted facts, you got 'em.
Posted by lagnappe
-----------------------

Thank you for stating some of the facts, while the ignorant have decided to just remain ignorant and spew the same old, tired propaganda from the usual suspects, protecting their huge profit margins at the patient's expense.

It seems easy for them to continue to rail against any government-run health care as rationing care and slow payments, but as you pointed out, this is exactly what the private for-profit insurance industry does as well to make larger profits.

The ignorant also try to push the high cost of malpractice insurance onto lawyers and frivolous lawsuits, but in actuality, this has just been the insurance industry making-up for a loss in profits due to their investments in a poor market, just like 2001-2002, where malpractice insurance almost doubled when payouts for lawsuits went down!
Reply to this comment
by cydygitt1 June 14, 2009 12:22 PM EDT
Again I ask - WHERE DOES ALL THE MONEY FROM THE EXISTING HEALTH CARE COSTS END UP? WHO ULTIMATELY GETS THAT MONEY?
Posted by forrestlayne
--------------------------

It goes to administrative costs, profit margins and pockets of the biomedical, pharmaceutical and insurance industries. It's no secret and it doesn't take a rocket scientist to know it. You can track the rising cost of healthcare and rising profits in these industries on the same trajectory. Even when everyone is up a creek, these industries continue to make a killing and sometimes even increase their profits. It's pretty darn obvious...

Otherwise, if you increase efficiency,limit or eliminate profit-making (i.e profiteering) in the insurance industries, you will have solved a lion share of the problem.

Posted by lagnappe
------------------------

Exactly! But it seems that despite it not being rocket science, the rightwads keep asking the same obvious questions over and over again, as they condone the huge profits and administrative costs of the for-profit industry -- adding nothing to providing health care!

Just like the 30% of unneeded and unnecessary repeat testing, it doesn't take a rocket scientist to know that eliminating that waste would bring down health care costs too!
Reply to this comment
by Slrman-21001573651763300012869 June 14, 2009 10:11 AM EDT
Martha_123 - What an inappropriate and ignorant comment. How about something that provided idiots like you with a large dose of ****?
Reply to this comment
by Slrman-21001573651763300012869 June 14, 2009 10:09 AM EDT
The vagueness (dare we say evasiveness?) from BHO worries me. Perhaps the ultimate goal is to supplant ALL health care with a government-funded and run plan. That could be a disaster of galactic proportions. After all, what field has the government ever entered that they have not made worse? I can see a "competitive" plan and coverage for those who do not and cannot afford anything else. But "Big Brother" scooping in all of it?

Here in Brazil, there are affordable private plans and government support for some drugs (like diabetics) and people (unemployed and elderly) but these are all eventually administered by private providers. It works very well and no one is ever denied health care for any reason. Nor is it expensive. Maybe BHO needs to consult with someone here?
Reply to this comment
by cydygitt1 June 14, 2009 10:01 AM EDT
I for one, am completely tired of paying for the best health care to all those government employees including the wealthy congresscritters, without getting exactly the same health care through taxes that they already enjoy!
Posted by cydygitt1
------------------------

Exactly what kind of health care do you want?

Posted by forrestlayne
----------------------------

Ooooops.....your reading comprehension seems to be getting much worse!

Sorry, but I thought I said exactly what I wanted above -- exactly the same health care through taxes that the congresscritters already enjoy.
Reply to this comment
by cydygitt1 June 14, 2009 9:57 AM EDT
Demand universal health care, throw the insurance companies out of their parasitic game of feeding at the trough of human misery.

DEMAND UNIVERSAL HEALTH CARE,

or vote everyone out that votes for more millionaire insurance cretins.
Posted by nofoolling
----------------------

Yep.....some sort of 'single-payer' system would certainly be a more efficient way of spending that huge $2.5 Trillion or 18% of GDP sum we currently throw down the rat hole of for-profit health care in America making the insurance companies much wealthier!
Reply to this comment
by cydygitt1 June 14, 2009 9:52 AM EDT
How many new drugs and medical advances have come out of countries with socialized medicine?
Posted by forrestlayne
---------------------------

And how many medical advances have come out of universities through government grants and not out of the private sector wanting to prolong sickness for profit?
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