The New York Times continues its misuse of news articles to signals its disapproval of the public option, first by characterizing it as the “Next Hurdle in Health Debate,” and then describing it as the “greater obstacle” that is the cause of “deep divisions” in the Democratic Party.
This is sheer fact-free editorial nonsense. Only a small handful of Congressional Democrats (who in another era, would have been Republicans) oppose a public plan. This near consensus reflects that 65 percent of Americans and overwhelming majorities of Democratic voters support the idea, as shown in the most recent New York Times/CBS poll.
Over two hundred Democrats in the House are prepared to vote for a public plan tied to Medicare rates while most of the rest would accept a public plan with negotiated rates. In the Senate, there are likely over 50 votes for a public plan and a majority of Democrats, not including all of its supporters, have already sent Harry Reid a letter asking him to include a public option in the merged bill. The Times can’t recall any of this.
The public option is only “divisive” or a hurdle/obstacle to those in the White House who have for months been trying to strangle the public option without leaving Obama’s fingerprints. But this is his plot and it’s time for him to take responsibility for misleading his supporters for over a year.
The story’s only “news” is that for the umpteenth time, cowardly, anonymous White House officials are telling reporters who have no basis for granting anonymity that they think Rahm Emanuel’s Olympia Snowe’s public option-only-with-a-trigger is a swell idea.
Two senior administration officials, speaking on condition of anonymity, said the White House looked favorably on the Snowe plan.
. . .
Aides say Mr. Obama has reviewed the alternatives to the public option but has not settled on which, if any, he prefers. And some Democrats say a backlash against insurers is creating renewed interest in a public plan. But in private conversations with Ms. Snowe, Mr. Obama has brought up her idea for a trigger that would create a government-run plan in states where at least 5 percent of residents lacked access to affordable care. One senior White House official called the idea “very reasonable.”
“Not settled on which, if any, he prefers”? What’s the problem here? It’s not as though no one has had time to think through whether there’s any alternative way to provide a meanful choice and competition, a fall-back, a check on insurer behavior. Every other possibility — from co-ops to opt-in’n'outs to triggers — has been thoroughly considered and debunked; all fall well short of what is needed.
Millions of high-risk Americans are going to need a viable safety valve that the government stands behind, because they don’t trust the insurance industry to treat them right, and the insurers are signaling they don’t want to cover these folks. This is not rocket science.
Obama’s claimed indecision is inexcusable dithering or a cover. If he doesn’t know what he wants, then we have a right to ask, what is his Chief of Staff Rahm Emanual doing in Harry Reid’s merger meetings? Either tell us what’s been decided, and which faux Democrats are being shielded for their silent filibuster, or send Rahm back to his office.
Following up on Glenn Greenwald’s admonition to hold this Administration accountable, Brad DeLong adds:
I simply do not know what the Obama administration’s desired health-care reform bill looks like, or what steps the Obama administration is taking to make the congressional reform process reach a good end, or what the economic theory is that suggests that these particular reforms are the right thing to do. I am scared of guaranteed issue and community rating without a real mandate to curb adverse selection and a strong public option as a safety valve. I am very scared of a congress that seems to, with every day, seek to bend the curve of health care costs upward by prohibiting things like comparative effectiveness research. And I am very, very scared of a mandate without an adequate subsidy pool.
I want to see real white papers from the administration explaining why whatever is going to emerge from the congress is a good thing–and why it is the best thing that we could have gotten out of congress this year or next year.
To paraphrase DeLong, we’re going to need another Chief of Staff, at least.



53 Comments







In the olden days, the Times would have tagged an article like this as “new analysis” and also assigned it to someone capable of analysis.
I also liked the characterization of Blue Dog Jim Cooper as “centrist.”
Your Brad DeLong quote creeps me out, though. When he says,
he is directly channeling the insurance sector point of view, notwithstanding the token hat tip to the public option.
correct me if i’m wrong, but the individual mandate has nothing to do with controlling adverse selection. gauranteed issue and community rating, on the other hand are part of what does (they are necessary but not sufficient).
To the degree I can figure out what DeLong is saying, mandated insurance purchase prevents adverse selection for private insurers by forcing healthy patients into their clutches. But I yield to anyone more knowledgeable in these arcana.
I’m reacting more to the immorality of DeLong’s being “scared” by guaranteed issue. That’s akin to being scared of health care access as a human right.
ah, i see. good point. though sadly not atypical for delong — who imo long ago proved himself to be a neoliberal D party hack.
i keep forgetting my pov re delong is not conventional wisdom even on progressive blogs. so here is the post which finally put me over the edge (from 2003): Joe Stiglitz is Losing His Argument
and some related background on the aea from galbraith (from 2002): How the Economists Got It Wrong
as far as I can see, the only way a mandate is even possible is if there is a public option when someone can’t afford it
obviously this doesn’t mean “we pay for a private plan” because that would obviously raise prices yet more
Good Morning, Perris
It seems that way to me too. I just can’t fathom a mandate that people Have Got To Have A Plan. I don’t believe in having unenforceable laws. Who’s going to do the enforcing? Oh, I get it. It’s part of the Creating Jobs agenda.
i don’t think it likely that the po will have substantially lower costs (maybe even higher), but hopefully it would not engage is denial of care and as scarecrow puts it well:
imo, there is no justification for individual mandates absent very very strong regulation/enforcement and adequate subsisdies. but if we had all that we wouldn’t need a po.
Feh. “news analysis”
Gosh-durned anonymous bloggers, with no accountability.
No, wait. ;)
Facing the mirror, huh? Good on ya for being honest with yourself and us. But, the difference is that our individual comments are not in and of themselves policy makers. Now, when Jane organizes us and we act, then we do have some affect. But, as a named group, not individual and anonymous mouths.
Hi WOWO.
“Break the mirror, break the mirror!”
Heya demi.
I used to say that everyone needs to have a full length mirror, for self reflecting, but, oh hell, the older I get, I’m thinking maybe not. Arg.
Nice Gams !
*ducks*
You could see my gams in that pic?
Hi Petro.
Well, thanks anyway.
This just in…..
According to a new Gallop poll, Hillary Clinton is now more popular than Barack Obama!
Well then… if that’s the case maybe they should just switch positions going forward.
WTF (as in “Who”) thinks this is remotely relevant to anything?
What crap.
Yeppers. They have different job duties. Put her in charge of Health Care and then Duck! Now, some might answer that she could get the job done, but, we won’t know. I’m just saying a lot of people are being crushed by the terrible economics and need to point their finger at someone. Whoever, or is it whomever, is in that position will be the target for many.
thanks scarecrow. more on the great (not!) reporting from the new york times from fair and the center for media and democracy: New York Times Admits Shutting Out Single-Payer (my emphasis):
Lets promote a trigger. Lets have a PO with a single payer trigger.
Oh boy! That is a great idea!
Just might make Rahm drop!
that’s a PO i will support!
Olympia Snowe is nothing more than a Trojan Horse. Obama and Rham must be so pleased they opened the gates to let the one person capable of insuring “healthcare reform” is nothing but a sham. Wouldn’t be surprised if Snowe, Obama, Rahm and Reid are already discussing the “historic” photo op when the big pharma/health insurance lobby stimulus bill is signed into law.
Thanks Scarecrow.
Hey, White House sources, fuck Sen. Snowe-job.
love, justasanonymousasyou
scarecrow, this is an incredible piece to which the nyt ombudsman should be sent
I second that … pls send this to the NYT Ombudsman, Scarecrow.
“Obama has brought up her idea for a trigger that would create a government-run plan in states where at least 5 percent of residents lacked access to affordable care.”
So he’s okay with screwing over 5% of the people? Nice.
The video clip of the 3 major Insurance CEOs telling Congress that they would never voluntarily stop the practice on Recission aka the killing of those that most need the coverage they had paid for, needs to be used more in a PR way.
These INs. Companys commit fraud every time they use recission and should be brought before a Judge for every act of fraud. Our DOJ has provided cover for these deep pockets for too many yrs. Adding this to the taking away of their other extraordinary privileges and the DOJ could of forced the deep pockets to do the right thing many yrs ago. That said and the fact that this will never happen unless placed in the law in a way has to force the DOJ to take action is what has driven us to the place where only on robust Public Option will start to repair the damage done.
If I had the talent to make a new “Daisy Ad” highlighting the lives lost every day, week, month and yr I would do it in a NY min. Would it be offensive to some ? Isn’t that the point ?
A new Chief of Staff? I’m looking for a job.
You see the funniest ads. Good Secretery Wanted! (I’m assuming they need someone who can spell. Another one, Ballroom Dancer Teachers Wanted / No experience necessary. Ha!
Guess y’all have seen Grassley’s most recent, pot-calling-the-kettle-black ha ha, teh stupid it burns, irony:
http://digbysblog.blogspot.com/
Grassley needs a “wake-up call.”
The only predatory element in the government appears to be the elected GOP officials represented by health insurance industry hacks.
Saw a story yesterday that Mrs Vilsak is looking at entering the race against him. Not sure we need a senator representing Monsanto but
Ballroom Dancer Teachers Wanted / No experience necessary.
Actually, that reminds me of when W sent Karen Creepy Hughes out as some sort of goodwill ambassador. I wonder how she’s getting her health care these days.
Perhaps those who choose to remain anonymous should use “the trigger option” on themselves. That goes for those who propagate bogus “news analysis” pieces in major newspapers, as well.
It’s been my experience that when a trigger is engaged, someone gets shot.
Thanks for taking on this responsibility. Glad you have good recall.
It is going to take some time before the trust-fund babies who currently populate the Times and other major newspapers learn a new narrative from the one they got in journamalism school. It’s frustrating to live with such second-raters. One wishes they had simply gone to their natural strengths in ski-instructing or golf rather than pretending to work.
The idea of a single payer trigger, or single payer “sunrise” provision, was first put forth, AFAIK, by commenter “good grief” on daily kos some months ago. I always thought the idea had good rhetorical, possibly even practical legs. I wish, at minimum, that progressive legislators would use it in debates to shame and/or shut up PO trigger proponents.
First Health Group and Eli Lilly are driving NYT health coverage
That’s a pretty broad attribution. That could include Ken Salazar and Timothy Geithner.
And it’s just a restatement of what they’ve said ever since it looked like Olympia Snowe would vote for a trigger. And a vote for a trigger has optics like support for a public option, so Snowe can’t say she is against a public option categorically. That’s the upside of Obama’s continued ambiguity about his position. Snowe doesn’t know the position she is negotiating against in talking with Obama. She has to show the details of her proposal first, which means that she has to have developed those details or it appears just to be a tactic to derail healthcare reform. Then she has to say how those details fit into the Senate bills. Which makes her disclose her objectives without closing off the possibility of her breaking a Republican filibuster.
And of course Obama brought up her 5% trigger to keep her talking. BTW, does anyone know what states would be not be triggered with the 5% threshold? Would Maine be one of the states getting a public option or not? Guess it depends on a detail: What exactly does affordable mean legislatively? There is a lot of room for dickering with the details before taking the trigger off the table. Same with co-ops; same with opt-out or opt-in. Expect to see a lot more articles like this one as the Senate negotiations move forward. Expect co-ops, opt-in, and even some new dodges to be floated by the press.
I don’t understand the suspicion of Rahm’s role in all this.
You don’t think that this looks like a trustworthy man?
Rahm is obsessed with keeping the NYT on message. If that’s the only place you get your news (like my dad) you’re pretty much screwed.
Sounds like my Dad – whom I used to tease that he wouldn’t believe he was dead unless he saw his obituary in the NYT. When he died, I paid to have his obituary printed there, just in case.
“The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure.” — Thomas Jefferson
On the question of mandates, if there is no individual mandate, then those who are healthier who don’t have insurance have less of an incentive to purchase it, and they would certaintly have less incentive to purchase insurance in which the premiums were an average (or within a narrow ratio, like 2:1) of the costs of covering well and sick people. The mandate creates a risk pool, and the premium becomes a weighted average of the costs of the entire risk pool. This is the part of the insurer’s lament that most analysts agree on.
DeLong is agreeing with that point. An insurer would prefer to avoid people with high-cost claims, but if the regulations say, “you must take everyone (guarantee issue), and you can’t charge different premiums to those who are sick (community rating)” then the healthier, low-cost people opt out (mandate not enforced), leaving the insurer with the higher cost people and no offsetting premiums from people whose costs are below the average.
I read DeLong (and several other economists) every day, because he’s a terrific economic historian and can put things in context and he makes it interesting. I don’t place him on an ideological continuum; it’s more a “smarts” and “intellectual honesty” continuum.
And his point in the quote is that the Administration, even at this late date, and even on critical issues, still hasn’t told us what it wants and why we should support it, but Congress keeps fumbling around with incoherent frameworks and inconsistent positions. The overall message is: where’s the leadership? And I agree that’s a valid question.
in MA we had (for years prior to the 2006 reform introducing mandates) regulations for community rating, mandatory issue and to prevent denial of coverage for pre-existing conditions. iirc, there were some limitations to prevent abuse of opting in / opting out as convenient. as a practical matter (as opposed to the theory)i don’t think (but haven’t studied it adequately) that the imposition of mandates was of much benefit compared to the cost. especially if it was a one time benefit to the consumer and a never ending benefit to the insurance companies.
i also used to read delong every day, but stopped around 2003. have tried on several occasions to put him back on my list of regular reads but to no avail. just didn’t seem worth my time. i disagree strongly with you that he is a terrific economic historian — i think he sucks because his pov is filled with neoliberal fallacies. and while i don’t care so much about his ideology, the lack of “intellectual honesty” (see for example my link above) is what earns him the label “hack” in my comment. i do agree with you that he makes things interesting, is a very entertaining writer, and i do enjoy his take downs of republicans. i will always be grateful to him for his posts on krugman’s shrillness and the shrillblog.
but it’s been a while since i read delong daily and to be fair maybe i should give him another try. maybe he has gotten better. it’s just there are so many far better economists blogging now that i expect the main reason to read delong now is to get insight into the current conventional mainstream neoliberal thinking.
completely agree. 110%
You are not reading the appropriate info. Ezra Klein meet selise.
http://voices.washingtonpost.com/ezra-klein/
They agree on it because they begin by siding with the health insurance biz model. The fact is that the ‘risk pool’/mandate/lower costs troika has already been proven to be bullshit by reality.
US health insurance companies already cover more patients/customers than most countries with a universal health care system YET the cost of insurance in the US keeps rising along with the profits of these companies.
So they’ve sold ‘the analysts,’ Congress, and the misdirected PO people on the idea that: “if we simply feed the machine with the blood of more peasants, then everything will improve. Of course, we’ll have to raise premiums. But just give us more.”
Meanwhile, Medicare, saddled with the bottom of the risk-pool, the old and very sick, continues to effectively cover a far smaller pool of customers. But don’t look over there, not at an existent model that threatens the corporate hypothesis. Don’t look behind that curtain!
HR 676: Medicare For All –let’s build on what we have and like while improving our system and the lives of every American.
WE don’t get it. We like Obama, but He has surrounded Himself with a bunch of ignorant fools, and He listens to them. His listening has allowed all our problems to continue, nothing to get fixed, and money to be spent with poor results. His letting Congress decide everything is making a mess of healthcare reform, and going to make us worse off in the name of reform.
The Congress created all our problems and not fixed one, Yet He, His White House, and yes us are looking to the Congress to fix healthcare a problem they created.
This is insanity, Country wide insanity.
Another excellent piece, thank you.
Rahma & Obahma certainly know what they want. They have their own detailed internal “deliberation” white papers that spell out the pros and cons of each option, why their preferred choice is economically and politically desirable, and how they plan to make it their policy through legislation, rulemaking, agency authority and the budget process.
Consider how much print has been devoted to claims about Obama’s intelligence, drive and ability to outplay Mr. Spock in multi-dimensional chess. The idea that such essentials are missing or “in flux” would be laughable were it not so dismissive of the crying needs of Americans, were it not so dismissive of the wishes of a sizable majority of the Democratic Party and American citizens in general, and were it not likely to cause so much avoidable suffering and death – no hyperbole – over the next generation.
This administration’s “preferred option” will most likely enrich insuresters and shatter opportunities for meaningful reform. George Bush could have done that with his eyes closed. Come to think of it….
Rahma’s quest for derivative power seems as obsessive as Dick Cheney’s, just as the current president seems as destined to shatter his party as his predecessor. They ought to pull back from the brink while there’s still time. That they won’t without encouragement is as obvious as Emanuel’s and Obama’s ambitions.
Wouldn’t that be 50 states?
Am not surprised by the NYT’s efforts to be cheer leaders for the private Insurance industry.
They just keep ignoring that 62% of Americans want the public option.
The public option with trigger is a great idea. The lack of fiscal responsibility of the health care companies will insure that the trigger is met and the public option will come into effect. Pair this with a state opt-out clause and the politicians can say, “Because Private Health insurerane companies tried to squeeze so much profit out of people, they have shown that their greed has no bounds and they must be given a competitor to drive down costs. If you disagree with the object numbers, then by all means opt out.” Then when a few states opt out, newspapers/blogs will run stories showing how much more expensive healthcare is in those states and the politicians in those states will go with the public option. Once you’ve got the public option country-wide the market will narrow the margins of private insurance companies and they won’t have enough money to lobby against singlepayer. Remember, politics is not like baseball. It’s not about hitting home runs. Politics is like football. Any gain in yardage towards the touchdown is a good thing.