Patterico's Pontifications

12/17/2010

PolitiFact’s Biggest Lie

Filed under: General — Karl @ 4:38 pm

[Posted by Karl]

The easy joke is that PolitiFact naming “government takeover of health care” as the 2010 Lie of the Year is PolitiFact’s biggest lie. I do not think that is true, for reasons which will become apparent below. However, there is plenty wrong with PolitiFact’s claim:

“Government takeover” conjures a European approach where the government owns the hospitals and the doctors are public employees. But the law Congress passed, parts of which have already gone into effect, relies largely on the free market:

Employers will continue to provide health insurance to the majority of Americans through private insurance companies.

• Contrary to the claim, more people will get private health coverage. The law sets up “exchanges” where private insurers will compete to provide coverage to people who don’t have it.

• The government will not seize control of hospitals or nationalize doctors.

• The law does not include the public option, a government-run insurance plan that would have competed with private insurers.

• The law gives tax credits to people who have difficulty affording insurance, so they can buy their coverage from private providers on the exchange. But here too, the approach relies on a free market with regulations, not socialized medicine.

PolitiFact reporters have studied the 906-page bill and interviewed independent health care experts. We have concluded it is inaccurate to call the plan a government takeover because it relies largely on the existing system of health coverage provided by employers.

It’s true that the law does significantly increase government regulation of health insurers. But it is, at its heart, a system that relies on private companies and the free market.

Let’s start with the straw man that “a ‘government takeover’ conjures a European approach where the government owns the hospitals and the doctors are public employees.”  By this measure, there has been no government takeover of healthcare in countries like France or Switzerland.  Even in England, most doctors, dentists, optometrists and other providers of local healthcare are self-employed, and contract their services back to the NHS.  If PolitiFact wants to invoke the “European approach” to healthcare, it might help if they could accurately describe it.

Next, PolitiFact relies heavily on the fact that people — most Americans — will continue to be insured by private insurers.  However, the government is projected to outspend the private sector on health care by 2012, before ObamaCare is even phased in — and as the government becomes the dominant purchaser of health care in America, it will surely have control above and beyond that legislated.  Moreover, as Michael Kinsley (founding editor of Slate, which PolitiFact relies upon as an authority)  asked about ObamaCare:

If the government requires insurers to accept all customers and charge all the same price, regulates all aspects of their marketing to make sure they aren’t discriminating, and then redistributes the profits to make sure that no company gets penalized unfairly, in what sense is the industry still “private”?

It’s an inconvenient point PolitiFact chooses not to address, but it gets worse:

The [law's] rules governing medical loss ratios—which determine what percentage of an insurance company’s operating budget can be devoted to administrative costs and profit—were set at the maximum threshold at which the Congressional Budget Office would decline to include the cost of private insurance premiums in its cost estimates; crossing that threshold would have made the bill far more expensive. Currently, the ratios are set at 80 percent for the small group market and 85 percent for the large group market, meaning that insurers must make certain that either 80 or 85 percent of their budgets are spent on “clinical services.” Those ratios are as high as they can be while still leaving insurers some semblance of independence; if nationwide MLRs were set even a single point higher, according to the CBO, health insurance would constitute “an essentially governmental program.”

In other words, in the CBO’s view, the new health care law walked right up to the government-takeover line, but didn’t technically cross it.

Considering that any definition of a medical-loss ratio is inherently arbitrary, the fact that the Democrats gamed a judgment by the CBO is hardly conclusive of whether the private health insurance market should be considered (in the words of the CBO) “an essentially governmental program.”

PolitiFact places weight on the notion that ObamaCare lacks a government-run insurance plan.  PolitiFact overlooks  that most of the expansion of coverage in ObamaCare comes from sticking an estimated 16 million people on Medicaid – where recipients fare worse or no better than those who have no insurance at all.   If MassCare is any indicator (and ObamaCare defenders love to compare it to RomneyCare), some of those new Medicare clients will be people dumped from employer-provided coverage.  Indeed, ObamaCare immediately had employers planning to dump retirees in to Medicare (and those without the political juice to get a government waiver may yet dump them).  The lack of a new government-run plan does not change the expansion of the already existing government health plans.

Then there are those “independent health care experts” PolitiFact consulted.  One of them is ”Princeton University professor Uwe Reinhardt, an expert in health care economics.”  PolitiFact leaves out his $2,300 donation to Barack Obama. Here’s a bit more of the wit and wisdom of Uwe, to give you a flavor of how impartial he is on the subject of government-run healthcare. 

Next up is Jonathan Oberlander, “a professor of health policy at the University of North Carolina-Chapel Hill.”  Oberlander is in fact a political scientist who has written a great deal on the politics of the health care issue — which makes him about as much of an expert as I am.  (At least Uwe Reinhardt has a Ph.D in economics.)  Oberlander’s opinion that a single-payer government financing of health care is not “socialized medicine” tells you what his politics are.

PolitiFact also quotes Maggie Mahar, author of Money-Driven Medicine: The Real Reason Health Care Costs So Much.  Well-known among those who follow the issue as a market-hating health care expert, I am not exactly shocked that she told PolitiFact what PolitiFact so obviously wanted to hear.  PolitiFact neglects to mention that Maggie Mahar is a fellow at The Century Foundation, a progressive think tank.  (They also fail to mention that Mahar’s educational background is in English literature.)

In contrast, PolitiFact dismisses the Heritage Foundation and the Cato Institute as conservative groups repeating a “lie” [Aside: Cato is libertarian, but we must all look alike to PolitiFact].  Thus, PolitiFact chose not to seek the advice of any experts affiliated with those groups, like Cato’s Michael Cannon, who argues that ObamaCare is a government takeover of the health care system.  The closest to a Republican, let alone conservative, in PolitiFact’s interview list is Gail Wilensky, who coincidentally goes unquoted by PolitiFact.

The point here is not that PolitiFact’s claim is a lie, or that PolitiFact is biased (although the latter is fairly obvious).  Rather, the point is that the question of whether ObamaCare is a government takeover of the healthcare system is one of political opinion, not a simple question of fact.  Indeed, the difference in opinion between those whom PolitiFact labels as liars and the CBO is a percentage point or so. 

Accordingly, PolitiFact’s Biggest Lie is the one left unstated — that a political judgment call can be easily labeled as a “lie” in the first instance.  However, for practical reasons, I do not condemn that lie.  After all, the establishment media — of which PolitiFact is a part — is still in the business of trying to manufacture consent to a center-left political narrative.  PolitiFact exists largely as an attempt to deligitimize certain political opinions.  We now know which political opinion most bothered the establishment in 2010.  That is a valuable service to everyone.

–Karl

22 Comments

  1. Thanks, Karl. You, and Surber, beat them like a pinata.

    Comment by JD (d48c3b) — 12/17/2010 @ 4:47 pm

  2. Karl – Did Politifact label “Death Panels” as the biggest lie of 2009? Look at the error in that judgment as BarkyCare is implemented, most recently with the rationing of Avastin.

    Comment by daleyrocks (c07dfa) — 12/17/2010 @ 5:42 pm

  3. And the statements by Berwick, the medicare administrator, and Krugman, and well you get the picture

    Comment by narciso (6075d0) — 12/17/2010 @ 5:50 pm

  4. daleyrocks,

    You are correct, sir.

    Comment by Karl (928df3) — 12/17/2010 @ 6:22 pm

  5. I just read this at the Green Room.

    Karl, well done. You’re right that this can be summed up as another establishment attempt to delegitimatize an opinion that particularly bugs them to be expressed, and interfere with honest analysis they do not want people to understand.

    Comment by Dustin (b54cdc) — 12/17/2010 @ 6:59 pm

  6. “You are correct, sir.”

    Karl – Great rack record. 0-2 last two years. No wonder timb was promoting the story this morning.

    Comment by daleyrocks (c07dfa) — 12/17/2010 @ 7:15 pm

  7. Some people cannot read very well.

    Comment by Karl (07faa1) — 12/17/2010 @ 9:12 pm

  8. Thank you for the information and analysis. Never trust an organization that claims to be non-partisan to actually be so.

    Comment by MD in Philly (3d3f72) — 12/17/2010 @ 9:12 pm

  9. Karl – Some people cannot read very well. That prior one was an accident, sorry.

    Comment by JD (07faa1) — 12/17/2010 @ 9:13 pm

  10. “But it is, at its heart, a system that relies on private companies and the free market”

    Free to obey thousands of existing rules,
    Free to obey thousands of new rules,
    Free to obey thousands of unclear and contradictory rules,
    Free to obey thousands of arbitrary medicrats,
    Free to be fined out of business unless properly submissive to the thousands of petty tyrants.

    Comment by Teflon Dad (51022d) — 12/17/2010 @ 10:55 pm

  11. Another lying leftist propaganda organ exposed . . . the cesspool is getting crowded . . .

    Comment by Adjoran (ec6a4b) — 12/18/2010 @ 12:01 am

  12. I see PolitFact still operates at the same level of incompetence. I looked at them last year and discovered they were not trustworthy, and for all the same reasons they fail so badly this time.

    It is almost scarier to think their actions are the result of ideological group think rather than cynical machinations. That would mean even if they tried to be fair, they couldn’t actually pull it off.

    Comment by Rich Horton (3ef32b) — 12/18/2010 @ 7:44 am

  13. Rich Horton,
    Great minds think alike.

    I also flagged the same Politi”Fact” piece about Ezekiel Emanuel as not only false, but the product of a mediocre intellect uncomfortable in the realm of academic publications — always a comforting trait in journalists who purport to discern facts.

    Comment by Brother Bradley J. Fikes, C.O.R. (fb9e90) — 12/18/2010 @ 8:35 am

  14. Politifact has always been a left wing apologetic.It has a habit of consulting supposedly neutral, but always far-left sources, for verification.

    Comment by pat (f1bffe) — 12/18/2010 @ 9:22 am

  15. This is a lot of noise over what is essentially a semantic argument. Heavier regulation is a form of control; overbearing control constitues a takeover — in this case, almost everything short of depositing health care payments directly into the treasury.

    Comment by Icy Texan (7f42e2) — 12/18/2010 @ 10:50 am

  16. Bradley,

    Yeah, it seems funny that you and I (and Michelle Bachman for that matter) could read and understand that material correctly, but it totally befuddled PolitFact. You can almost hear they saying “Whoa! Egghead! Slow down!”

    Comment by Rich Horton (3ef32b) — 12/18/2010 @ 12:47 pm

  17. They lie because they can, and in this case, because they must.

    Leftism is one big lie.

    It only gets worse from here.

    Comment by Rev Dr E Buzz (25210b) — 12/18/2010 @ 6:50 pm

  18. Politifact is a joke. I argued with the Angie gal there for 8 weeks about Obama’s broken promise of Signing Statements, even though I sent video evidence from the jump. She finally relented when I threatened to engage other media about her bias, but, she would only rate it a *Compromise*. I knew it was all BS at that point.

    Comment by sybilll (1c07df) — 12/18/2010 @ 8:26 pm

  19. All anyone really needs to know about politilie is that it is funded/founded by the Poynter Institute. Nelson Poynter founded the St. Pete. Times(a red apologizing rag which owns politilie). In the early thirties he helped found the socialist party in the US, and continuously supported it with his paper until the day he died and that support has continued through the Poynter Institute.
    Regarding this latest tripe, the chief interviewee for the article was HOWARD DEAN – a truely unbiased political hack, HAHAHAHAHAHAHA.

    Comment by emdfl (b2de3e) — 12/19/2010 @ 7:32 am

  20. Yesterday, I actually heard Anthony Weiner repeat the bs about Ocare saving money over the long haul. The legislation is going to create more regulatory/oversight departments, aka bureaucrats. Doesn’t that reduce costs if they’re not watching porn?

    Comment by robtard (e7577d) — 12/19/2010 @ 7:47 am

  21. http://www.welovetheiraqiinformationminister.com/

    This guy holds pollster emeritus status…

    Comment by SteveG (cc5dc9) — 12/19/2010 @ 2:07 pm

  22. Daleyrocks, when are you guys going to get this story straight. You keep making the same mistake over and over again. There are NO death panels. The “Death Panels” are not the end of life counseling sessions. Those are a bad idea too because they are placed in the bill under cost saving measures which makes one take pause. But the Death Panel is the Independent Medical Review Board or whatever they are calling it now. These non medical people decide who gets what procedure and treatment. Their power is so great that it takes 2/3 majority of the House or a Presidential injunction to overturn what they have decided. This is health care rationing at its ultimate and Sarah Palin was exactly right when she coined the term and Christine O”Donnell was exactly right when she decried their existence.

    Comment by Questionman (2944ae) — 12/23/2010 @ 4:52 pm

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