Former CBO Director: Public Option Won't Help Health Care

By Leah Valencia, University of New Mexico- Talk Radio News Service

Former Congressional Budget Office Director and George W. Bush economic adviser Doug Holtz-Eakin said Monday that a public option will not solve the fundamental problems in the U.S. health care system, warning lawmakers that it would ultimately present the same problems as Medicare.

“Public plans are not going to be able to negotiate any more effectively with every local hospital and doctor in a geographic area than private insurers,” Holtz-Eakin said during a conference call hosted by the Galen Institute. “Indeed they might negotiate worse.”

Holtz-Eakin said that the options for a public plan had a remarkable resemblance to Medicare, and if it were to reimburse on the basis of Medicare payment rates, it would only add to the problem.

“Medicare payment policies are one of the problems with the American health care system,” he said. “It is not something we want to spread more broadly throughout the system, it is something we want to move away from.”

Holtz-Eakin noted that the other widely discussed option to run a public plan like a private insurance company would not increase competition because it would be too difficult for the government to politically cut out select hospitals.

“That leads us right to the solution 'let’s have more competition in the insurance market and that has nothing to do with a public option',” he said. “It is something we do not need in the debate. We need real reform.”

House Democrats Urge Pelosi To Reject Proposed Excise Tax

By Meagan Wiseley - University of New Mexico/Talk Radio News Service

Rep. Joe Courtney (D-Conn.) presented a letter to Speaker Nancy Pelosi today urging her to reject any excise tax on high-cost benefit health care plans. The letter comes in response to the Senate Finance Committee’s proposal for a 40 percent tax on “cadillac plans,” or plans that feature expensive premiums.

“The proposed tax on benefits undermines a basic principle of the reform proposals - to build on the employer-based heath care system,” said Courtney.

Courtney said he hopes the letter will send a clear signal to House leadership that an excise tax on heath plans will be an “additional and substantial tax burden” on working class families and middle class individuals.

Beyond the “cadillac” plans, Rep. Pete Stark (D-Calif.) said that he believes this tax will impact a larger number of individuals around the country who have higher coverage plans because they live in “high-cost regions” or have “high-risk jobs."

Rather than an excise tax, Stark suggested a surcharge in the House health reform bill which would raise taxes on those making $500,000 a year or more. “Over 99 percent of earners would not be affected by the surcharge,” said Stark.

In addition to Reps. Courtney and Stark, 156 other members of the House Democratic Caucus have cosigned the letter.

Hispanic Advocacy Group President Says "Merits and Facts" Of Public Option Strong Enough Without Racial Argument

By Ravi Bhatia, Talk Radio News Service


Racial arguments should not be a part of the healthcare reform debate, according to Janet Murguia, President and CEO of the Hispanic advocacy group called National Council of La Raza.

“I don’t think we have to resort to race issues to get a common sense and sound of health care reform,” she said. “I think that there are people who want to take it in that direction...but the reality is if we just look at the merits and the facts we could make a strong case for inclusion and comprehensive health care reform.”

Murguia spoke during a panel discussion today at the National Press Club in Washington, D.C. The panel, which included her and ranking officials from the National Association for the Advancement of Colored People, the Leadership Conference on Civil Rights and the Campaign for Community Change discussed the benefits of a public option in the health care reform plan. The United States Student Assn. and PowerPAC.org, while part of the alliance to support a public option and a voice for people of color in the health care reform debate, were not represented by the panel.

According to the panel, a public option would enable the U.S government to provide health insurance options to U.S. citizens, which would theoretically provide a competitive alternative to the options offered by private insurers. However, a poll conducted by the Washington Post showed that without a public option, opposition to the overall health care reform plan fell by six points.

The organizations also advocate coverage to all U.S residents regardless of pre-existing conditions or employment status, making comprehensive health care affordable and emphasizing high quality care for everyone.

More than 880,000 African American deaths would have been averted from 1991 to 2000 had health care reform been implemented, according to an analysis of mortality data in 2004 by the American Journal of Public Health.

“Thus far, the economic interests of the insurance [companies] , and those who have particular constituency interests that are not the interests of the American people, have largely dominated the [health insurance] debate,” said LCCR President and CEO Wade Henderson. “Once the American people become informed by the nature of health care reform, they support the public option. Most Americans regardless of age, for example, support Medicare.”

The organizations in the panel pooled together to create television advertisements in English and Spanish that support their public option cause. The ads, scheduled to be aired in select states in the coming weeks, are intended to attract senators who could push for their cause and push citizens of color to mobilize and actively pursue health care reform.

“There are many other constituencies that are part of a broad coalition in support of comprehensive healthcare reform,” Henderson said. “It’s in the economic and the political self interests of the American people to ensure that this kind of comprehensive reform is taken seriously and moves effectively. We’re really only the tip of a more progressive, larger coalition of interests that will be working in a concerted effort to achieve the kind of reform we’ve talked about. ”

Pelosi: Republicans Hold A Double Standard On Rhetoric

By Leah Valencia, University of New Mexico – Talk Radio News Service

House Speaker Nancy Pelosi (D-Calif.) commented on the harsh rhetoric used by Rep. Alan Grayson (D-Fla.) on the House floor earlier this week, accusing Republicans of holding a double standard.

"Apparently Republicans are holding Democrats to a higher level than they are holding their own members," Pelosi said in regard to GOP calls for Grayson to retract his comments.

Grayson came under fire for remarking "If you get sick, America, the Republican health care plan is this: Die quickly. That's right. The Republicans want you to die quickly if you get sick," while on the House floor Tuesday.

Pelosi went on to say that an apology from Grayson was not necessary but stated that incendiary rhetoric should not be used by either party.

"If anybody's going to apologize, everybody should apologize," Pelosi said.

Grayson said Democratic leaders have not asked him to apologize because he did not violate any House rules.

Pelosi said she did not plan to let Republican use this to distract from moving on healthcare legislation.

"The points have been made," she said. "Now it's time for us to keep the focus on health care."

Rockefeller Introduces Public Option Amendment To Finance Committee Bill

Travis Martinez, University of New Mexico /Talk Radio News Service

The biggest debate on the fifth day of markup of the America’s Healthy future Act focused heavily on the “public option.” Liberal Senator Jay Rockefeller (D-WVa.) introduced his amendment to Senate Finance Comittee Chairman Max Baucus' (D-Mont.) mark providing for a “public option,” or what he calls the “Consumer Choice Health Plan.”

The debate began with Senator Orrin Hatch (R-Utah) criticizing Rockefeller's amendment, calling it a “Trojan horse for a single payer program [that] would lead to Washington controlling health care and monitoring prices."

Rockefeller kept a stern attitude on his amendment stating that, “It would not be a government takeover." However, the West Virginia Democrat refused to answer questions put to him by Hatch.

Heavy debate ensued on non-profit insurance programs from Senator Kent Conrad (D-N.D.) and how well they have worked in his state, and how poorly the US as a whole compares to other nations. Conrad made a compelling argument for the “Mutual” based system with non-profit companies that would attempt to provide for universal healthcare coverage.

Senator Jeff Bingaman (D-N.M.) further argued that Medicare rates would be fixed during the first two years under Rockefeller's amendment - Rockefeller proudly held up two fingers. After the two years though, explained Bingaman, rates would be further negotiated, which would essentially adjust prices to fit in line with private companies.

Senator Chuck Schumer (D-N.Y.) compared the health care plan to universities, saying that "There’s both a private university and public university...there should be a choice."

Democrats agreed that Rockefeller’s amendment would build competition within the open market, while Republicans contended that it will bring price adjustments along with a government-run, single payer takeover of the entire healthcare system.

“This is a slippery slope to go down… it will lead to a government-run single payer option,” said Sen. John Ensign (R-Nev.).

Markup is scheduled to continue late Tuesday night and will reconvene Wednesday morning.