Wednesday, September 16, 2009

Why Obama should just force through health care

Senator Baucus released his proposal on extending health coverage today.  From what I read of it, it seems to be a very even-handed and really contains a ton of concession to Republicans. Yet, not a single Republican endorsed the proposal.  The proposal is cost-neutral according to the Congressional Budget Office and may end up saving money over the long run.  Baucus' plan contains no public option and I think will be unlikely to exert the kind of downward pressure on insurance plans that is required. 

The public option is going to be very destructive to the health insurance business in the US. The public option is likely to be cheaper and more comprehensive than private plans.  Many private insurers are not going to lower their prices, they are going to go out of business. 

For a Government option to truly work, it must be run like a business.  The public option should be constantly reviewed to ensure the the management is efficient and that waste is limited.  Then what a public option will do is add capacity to the system.  It will fill the cracks that many Americans are falling through.

Vouchers or other services to help low income Americans pay for health care are a bad idea.  They are not really subsidies for the American people but rather subsidies for insurance companies.

Truly fixing health care in the US requires a public option for health insurance.  Anything else is a band-aid.  If the Republicans won't accept the Baucus plan they are not going to accept anything.  It is crucial for them politically to kill the bill.  The Republican chance on getting the White House back in four years rides on Obama's failures to get things done. Then they can contend that Obama was all talk and no substance. 

Obama needs to stop trying to create a bipartisan bill.  He has done enough now that he can say he tried.  He needs to show some legislative muscle and push the bill through. 

1 comment:

  1. Sir Economist would agree with you. Bipartisan, schmarpisan, pass something!

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