When the House votes on the health reform bills today, every Republican will be voting no based on a dishonest Frank Luntz caricature of a bill that doesn’t exist. A minority of Democrats will be voting no in the belief that the false caricature will stick in voters minds and end their careers. Good riddance.
But the majority of Democrats will be voting yes for Dr. Jekyll, while ignoring or discounting clear warnings that Mr. Hyde lurks in the private insurance industry bailout they’ve foolishly assumed is the only path towards eventual universal health care.
Dr. Jekyll’s fans are right to argue there are many worthwhile features in these bills, many of them premised on expansions of successful public insurance and public health programs.
– We’ll eventually expand Medicaid to some 15 million more people and extend SCHIP several more years, and we’ll divert hundreds of billions to allow the Federal government to cover 100 percent (phasing down to 90 percent) of the costs of these expansions. Budget-strapped states — most recently Arizona — are facing cutbacks in these programs today.
– We’ll provide over $11 billion in new funding to expand public community health clinics, many serving rural and poorer communities.
– There are a few seeds of possible state public programs, though no assurance they’ll take root.
– We’ll reduce subsidies to private Medicare Advantage plans and use those billions to help close the doughnut hole, guarantee better primary care and extend the Medicare trust fund several years.
If the reform bills were just about these and other expansions in public health programs, as well as various efforts to reduce Medicare costs, passing them would be a huge victory.
Where Dr. Jekyll begins to morph into Mr. Hyde is when the bills try to "reform" the health insurance industry by expanding it and the reach of its worst elements. The bills purport to end or limit the most hateful practices of private insurers, such as excluding coverage for those with prior conditions and rescinding coverage when people get sick. But they still leave far too much discretion with private insurers, pushed by Wall Street profit demands, to discriminate against those who are older and sick. All the incentives that drive insurers to exclude or discourage sick people remain.
Given that framework, the billions in credits and subsidies to help low-to-middle income Americans purchase insurance coverage are necessary, but they send us down a dark alley. The concept would have been defensible if people could use those credits to escape the private system, if it served them badly, and buy in to a viable public health plan such as Medicare.
But by excluding any credible public option from the exchanges, the bills force us to bail out and sustain the private insurers with little or no accounting for where the money goes or how high rates can go. If we want these uninsured Americans covered, we’re forced to perpetuate subsidies to a highly concentrated, non-competitive industry with little control over their rates and practices.
Is it astonishing to me that serious economists are so enthralled with the expanded coverage they’re willing to ignore the flawed market structure. You’d expect a Paul Krugman, for example, to draw a graph showing what happens when you have a steeply sloping supply curve controlled by an oligopoly and a near vertical demand curve defined by a mandate with no viable alternatives. Did economists not teach us this is a breeding ground for market power and a huge incentive for withholding and price extortion?
Armed with a mandate to force us to purchase his wares, Mr. Hyde is in full control when we get to all of the corrupt deals the industry got from the White House and Senate. We see daily reminders that the largest drug makers are little more than America’s least accountable criminal class, whose executives view large criminal fines as just a cost of doing business. And yet this White House cut a deal shielding them from competition and government bargaining. The deal to limit PhRMA’s "savings" contribution was nothing less than a massive price fixing scheme.
Meanwhile, the White House deal to exclude a viable public option ensures the government cannot use its market power to force price concessions on drug makers, hospital cartels and other providers. And executive orders banning the funding of abortion? In which dark alley was this thought a good idea? The stench of these unprincipled sell outs and corporate bailouts is everywhere.
How one feels about these bills depends on what you think would happen if they failed. If we’ve learned anything about this Administration and its Party, its that they’ll fight like hell to round up the votes for a Jekyll and Hyde plan while pretending it’s only Dr. Jekyll’s prescription, but they’ll never make the same effort to bring Mr. Hyde to justice.
We live in a deeply compromised system where the choices are sickening. At the moment, the choice is to given in to Mr. Hyde’s extortion as the only way we’ve been offered to rescue millions of uninsured and get them into Dr. Jekyll’s public programs. Or we can let the current rotten system fester and hope — or is it pretend? — that something better will emerge at some undefined future date through some political transformation yet to be explained and whose leadership may not exist.
I’ve lost faith in America’s capacity to govern itself. If it were my kids, I’d pay the ransom, but then I’d watch for every opportunity to kill Mr. Hyde.



21 Comments







Please don’t think them naive or unaware. They’ve all spent plenty of time studying this thing from every angle. If they claim afterwards that they weren’t aware of something in it that destroys people’s finances, I hope nobody falls for that shit. Not this time.
They only care about themselves.
Gotta’ accept what’s staring you in your face. They are all fully aware of what this legislation will do to middle class, the poor, and especially poor women. They understand every disasterous aspect of it. They just don’t give a shit.
Supporting Democrats now is suicide.
Then again, I never underestimate the power of denial.
Movement Democrats are ecstatic. How wonderful it all is, they are tweeting and retweeting. Even if this bill is net positive (taking their view for sake of argument), I see little reason for the unbridled triumphalism.
Because it represents their hero triumphing.
Well, more than that, I think. It is their *party* triumphing. Kos isn’t a hero worshipper, albeit some kossaks may be.
It’s bad policy, poorly managed. But tonight that doesn’t matter. It’s a win, it’s a win, it’s a win.
Hi scarecrow,
That’s just the way I feel. Think any “progressive” in Congress will introduce bills to repeal the mandate, allow Medicare to negotiate directly with the drug companies and introduce price controls on the industry? Also, do you think Grayson will continue to pursue his Medicare buy-in legislation after the current “reform” passes?
Just as I told you some months age,lgid, there are no heros in congress. I see you have crossed the threshhold into the realization of just how captured the government is. I’ll have to see if I can find you some special sunglasses that allow us humans to see the traechery of the components of the alien system laid bare. Oh, that’s right, the play has become so transparent that we don’t even need the glasses anymore to see what’s going on.
We certainly don’t cb. BTW, you’ll probably find this one interesting on the financialization of everything.
Actually, I think all of those efforts you list are likely to begin; I just don’t have much confidence they’ll succeed, nor do I see their chances improving soon. I’m not sure what can or will turn that around. The election was the moment, and that moment is gone. Or as Rahm would say, “a crisis is a terrible thing to waste.”
I actually agree with this, I just think they wasted the crisis.
Extortion. That is exactly how this feels. I feel like Alice through the looking glass to see Republicans bemoaning the socialist takeover and Democrats celebrate the historic achievement. What a heartless, wasted opportunity.
An excellent wrap up on the state of the American system. Sinclair Lewis could never have imagined the depth of corruption that now resides in the houses of congress. I’m sure he would have thought this play too improbable to serves as the basis of a valid story line.
It’s sort of like a kidnapper promising to give some of the ransom money to charity. In fact, most robber barons are noted and remembered for the philanthropy.
Great post – it’s upsetting that health care reform has been presented as an either/or choice of passing a poorly-designed bill or letting millions go uninsured. People who are critical of the bill are being unfairly accused of trying to torpedo efforts to expand health care access when they only want to strengthen and improve those efforts.
Medicare for all would have been a win for the American people, drastically lowered the cost of healthcare, been a political motherlode for the Democrats, but a disaster for health insurance corporations.
So now we have a bill that benefits the corporations, that will be a poison pill for the Democrats and will give Americans expensive, sub-standard healthcare, and it still will probably not bend the cost-curve.
In light of these facts, how can we avoid seeing who really has the power in this country? As emptywheel said so well: this is feudalism, plain and simple.
Bless you Scarecrow; thanks for your analysis and conclusion. I weep with you (?) and many others this evening. I’ve been wanting to ask in the last week if you’d reach the point where the “Mr. Hyde” negatives had overcome the “Dr. Jekyll” benefits.
As I watched Obama make his speech yesterday I sighed over the lies, obfuscations, distortions and absurdities that were just as bad as anything the Republicans could say.
Today, there’s the following from Rep. Rush Holt, U.S. Congressman from New Jersey’s 12th district, who parrots the Democrats talking points with HuffPost mini-article today. Sorry I don’t have a URL for the material.
“What a Real Government Takeover Looks Like
As Congress convenes today to pass long-awaited health insurance reform, I’m reminded of one of the last times we voted on a Sunday: March 20, 2005, when Republicans forced an extraordinary vote to intervene in the case of Terri Schiavo.
To know what a real government takeover looks like, one should revisit that resolution. That midnight vote was a grotesque legislative travesty. For 215 years it had been a solid principle of this country that Congress not get involved in life-and-death issues like the tragic case of Ms. Schiavo. Yet, on that Sunday — Palm Sunday — Congress broke with tradition and inserted its own judgment. On that Sunday, the Republican Congress sent the message that it knew better than families, doctors, and hospital chaplains.
To my friends on the other side of the aisle who repeatedly claim that Congress is passing a “government takeover” — I kindly remind them that’s their work, not ours. Our work expands private insurance while increasing choice and competition and protecting consumers from the worst abuses of the insurance industry and leaving medical decisions in the hands of doctors and their patients. We intend that patients, families, and doctors — not the government, not insurance companies — have control over health decisions.”
I agree that the Terri Schiavo case was a real government take over by the Republicans and it was despicable, but the insurance companies really will have control over our future health care decisions, BIG TIME, and that makes me sick. I’m furious that he not only bought into that absurd statements but perpetuates it.
Lord have mercy, Christ have mercy….
There won’t be any mercy. The Democratic Party is become Jonestown writ large.
I’m sure there were a few Wiener, Grayson and Sanders equivalents down in Guyana, but in the end, they all drank the koolaid.
HCR as it was done is what corporatism looks like in real life action. The insurance companies’, and Wall Street’s, trains are most definitely running on time.
So stop. Don’t buy a new nothing. Pay off or junk your credit cards, paid or unpaid. Take your TV to the dump. Get with your neighbors and raise food and kids as a village. Be anti-militarist and anti-authoritarian. Visit your elected representatives regularly as a citizen and an equal.
“I’ve lost faith in America’s capacity to govern itself.”
“We’ll reduce subsidies to private Medicare Advantage plans and use those billions to help close the doughnut hole , guarantee better primary care and extend the Medicare trust fund several years.”
…………………………………………………………
I have also lost faith. But your comment on Medicare is cruel. Or did I misunderstand? I hate to break it to you but bad as they are, those Advantage Plans are the only thing between many low income Seniors and Disabled and no medical care at all. Cash/credit outlays are required in traditional Medicare. Not covering the doughnut hole until 2020 is irresponsible. Obama and Congress have left these people with nothing.
I did not mean to be cruel. I think it’s generally a good idea to reduce subsidies to private insurance firms for doing what Medicare itself could, according to CBO and CMMS studies, do for less. That said, it’s probably true that in some regions of the country, MA plans have become so dominant that they are more available than standard Medicare, and so there is a risk of a transition period on non-coverage until/unless that is corrected. I think that should be avoided. I suspect some of the special state deals (e.g., Florida) that Republicans were so quick to criticize, were intended to deal with that gap, but I haven’t seen an objective analysis whether this was done well or badly. It’s a concern that bears watching.
My preference would be to eliminate any doughnut hole sooner Congress has chosen instead to do phase it out slowly, apparently for cost reasons. It’s better than leaving it untouched, and worse than closing it sooner. Don’t know what else to say about that.
Thank you for your thoughtful response. I am a single payer advocate and agree with your position on reducing subsidies to private insurance firms. Unfortunately, Congress chose to cut Medicare several times over past years. Low-income and middle-income people are currently suffering daily because of that. This situation will now get worse. It is a shame that the Democratic White House and Congress foolishly wasted a wonderful opportunity to design a comprehensive health-care bill that could have benefited all Americans and not filled corporate pockets. I wish that I could be optimistic but I am not.
LETSBEGIN, found your conclusion interesting, but alas, I’m programmed to stay engaged, altho I’ve withdrawn a lot in the last year. I do, however, appreciate the seductiveness of your counsel to us.
CATE, you’re absolutely right about Medicare Advantage. There are so many reasons why it needs to be retained and I for one am very dependent upon my generous benefits, knowing full well that I could not afford to carry “my share” of the load with a straight Medicare options. Besides, there are more than enough doctors refusing Medicare Advantage, they sure as heck would refuse Medicare alone and are continuing to do so. I’d like to see the CMS, etc. arguments that Medicare could do things for less. The question is WHAT things would be done for less only because they are no longer functionally available.
SCARECROW, I continue to salute you for your faithfulness on all the broad issues all these many months of research, writing and sharing your findings and conclusions.
I’ve been watching the “debate” and being fascinated by the usual cordiality of the process, the occasional “acting like children” as per someone’s post above, and the incredible patience of all involved in going through all the rituals the Rules Committee prescribed. I know that
my disabled body could not cope with process.
In spite of the not acceptable reasons behind a lot of what the Republicans are saying have actually made more sense to me than I would have ever thought imaginable. I’m furious at the ultimate deceitfulness of Obamacare and the total rape of last summer’s dreams.
I’m struggling with the optional conclusions the process implies relative to the immediate, mid- and long term future of my engage at any meaningful level in the political process.
Once again, Lord have mercy…..
I agree that better Medicare benefits or something like the Advantage plans is a good idea. But these plans are now very expensive or are being eliminated by the insurance companies. The answer, I believe, is in universal coverage – for everybody. But I emphatically do not mean the pathetic excuse of a pro-industry plan that was passed today. Many think that plan will help them. It will not. What will those people do?
Excellent post.
And the problem is political as well because the bill is not merely corporatism but corporatism passing itself off as liberalism (with the assistance of liberals)–fake liberalism. Thus when it fails and/or remains unpopular, it will discredit liberalism itself.
The only hope is that it’s significantly improved, but without a public insurance foundation to build on, that’s unlikely, if not impossible.