Sen. Conrad Reveals Trouble for Obamacare
[Posted by Karl]
Late on Thursday, the WaPo’s Ezra Klein found out that Obamacare is running into more problems than he thought. Here’s the summary:
Earlier today, Sen. Kent Conrad, the North Dakota Democrat who chairs the Senate Budget Committee, introduced a “potential compromise” on the public plan: A system of federally-chartered co-ops that could offer a non-profit alternative to the for-profit insurance industry. In this telling, the co-ops preserve the central feature of the public plan — they’re a competitor to the traditional insurance industry — but are free from the baggage of government control.
I spoke to the Senator this evening about the co-op model, and he said a few things that surprised me. First, his search for an alternative was on behalf of the G-11 — the key Senate powerbrokers on health care. Second, it proceeded from the premise that the public plan doesn’t have the votes. All Republicans are opposed and, according to Conrad, “at least three Democrats.” And third, he thinks reconciliation is basically out as a viable option for comprehensive health reform. (Emphases added.)
Klein certainly should have known that trying to railroad Obamacare through as part of the budget reconciliation process would be problematic in the Senate. Indeed, I blogged his explanation of why this was so back in March.
For that matter, Klein’s own reporting on efforts to weaken or delay any public plan also should have warned him that the patient was suffering from internal bleeding. Since then, there have been only more stories about centrist Senators, Blue Dogs in the House and the AMA distancing themselves from any “strong” public plan.
So, what to make of Sen. Conrad’s latest trial balloon? Here is his spin:
The co-op structure came to mind because it seems to fulfill at least some of the desires of both sides. In terms of those who want a public option because they hope to have a competitive delivery model able to take on the private insurance companies, a co-op model has attraction.
And for those against a public option because they fear government control, the co-op structure has some appeal because its not government control. It’s membership control, and membership ownership.
Also the co-op model has proven very effective across many different models. Ocean Spray in the cranberry business, and Land of Lakes in the dairy business, and Puget Sound in the health care business.
What Conrad does not say is that Ocean Spray settled a lawsuit a few years ago which alleged that the co-op engaged in anti-competitive practices and abused its dominant position to drive rivals out of business. Conrad also did not mention that the Health Care Purchasers Association on Puget Sound pretty much had the field to itself after Washington state passed a disastrous (and now mostly-repealed) Clinton-style healthcare takeover. Thus, it does not seem as though Conrad’s co-ops are much more about competition than the “strong” public plan. The good news is how quickly the Democrats are already having to find new ways to try to fool the public.
–Karl
Karl, your last sentence says it all. The question is, how many times is this country going to allow itself to be fooled?
GM Roper (85dcd7) — 6/12/2009 @ 6:46 amHow silly of me… the question is: “How many MORE times is this coungry going to allow itself to be fooled?”
GM Roper (85dcd7) — 6/12/2009 @ 6:48 amBut this has to be done by October or it will never be done at all!! For sure!
Good stuff, Karl.
MayBee (cca412) — 6/12/2009 @ 7:44 amHaving traveled to the Dairy State more times than I care to remember, the farmers who are not a part of the L’OL co – op are none too pleased about their monopolistic behavior.
Dmac (f7884d) — 6/12/2009 @ 7:47 amDem Motto on Politics…
AD - RtR/OS! (1add59) — 6/12/2009 @ 8:59 amWe’ll stop lying about our opponents, and their policies; when they stop telling the truth about us, and ours!
A non-profit health plan? Sounds like the old pre-takeover Blue Cross and Blue Shield plans, or today’s Kaiser. The HMO Act – a Nixon idea – which opened the door to the HMOs which proved to be more competitive than the old insurance companies, initially required that all HMOs be non profit and independent (that is, they couldn’t be owned by someone else). Of course, I can fall in love with a Nixon idea so long as it’s endorsed by someone who’s cool like Obama.
jim in downtown LA (54d74b) — 6/12/2009 @ 10:06 amPuh-leeze. Like Fannie and Freddie?
Patricia (2183bb) — 6/12/2009 @ 11:10 amThe Kaiser model was what Paul Ellwood had in mind when he first came up with the term HMO. He has since become disillusioned, especially with the for-profit model. He was becoming disillusioned ten years ago, although he still supported the model. I think it has been largely discredited now.
Mike K (2cf494) — 6/12/2009 @ 12:14 pmThis non-profit public co-op option reminds me of Fannie Mae and Freddy Mac. We will be sternly told that this is not a government-run or government-financed operation, but everyone knows that the Feds will bail them out if they get into any fiscal trouble.
Ah, I see that Patricia also made a similar comment at 11:10 am.
JVW (2cd0a9) — 6/12/2009 @ 2:10 pmNotice that Obama remains in the “Present” category. He’s presented no plan, no detailed proposals at all.
Zero leadership. That’s the Obama that Democrats put into office.
What an Empty Suit(tm).
SPQR (26be8b) — 6/12/2009 @ 7:24 pmI don’t know how much profit is accruing the health ins. companies. I do know there is a constant desire for more mandates. Some mandates, I like-mainly vaccines. But I see medicaid patients free- and certainly don’t make much off medicare. I can go back into full time derm and easily double my income. And if I have to do much more paper work for useless measures, I will.
corwin (0e9f4f) — 6/13/2009 @ 10:43 amAs an example, yesterday was talking to a clerk at Ann Arbor. her dept wanted a test runn before my patient was seen for surgery. I had to fax a request on my letterhead before they could tell me the test. (I’m not a new ‘doc;know some of the dept members , but was told”because of “HIPA”. I can’t wait.
The confusion about HIPPA is a preview of what we will be faced with when the federal bureaucracy takes over. Don’t worry though, Robert Reich has told us don’t worry about the deficit. It’s just a “scare.” Well, it’s got me scared sh**less; I am now on a fixed income.
Mike K (2cf494) — 6/13/2009 @ 3:39 pmI must say Obama makes Elmer Gantry sound like Elmer Fudd. But then again Obama makes Baghdad Bob sound like Lincoln.
Obama is a crook who thinks he can sell anything. Worse he thinks the people are idiots.
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