...And What Obama and the Rest of Us Must Do

-by Robert Reich


I've poked around Washington today, talking with friends on the Hill who 
confirm the worst: Big Pharma and Big Insurance are gaining ground in their 
campaign to kill the public option in the emerging health care bill.

You know why, of course. They don't want a public option that would compete 
with private insurers and use its bargaining power to negotiate better rates 
with drug companies. They argue that would be unfair. Unfair? Unfair to give 
more people better health care at lower cost? 

To Pharma and Insurance, "unfair" is anything that undermines their profits.

So they're pulling out all the stops -- pushing Democrats and a handful of 
so-called "moderate" Republicans who say they're in favor of a public option to 
support legislation that would include it in name only. 

One of their proposals is to break up the public option into small pieces under 
multiple regional third-party administrators that would have little or no 
bargaining leverage. 

A second is to give the public option to the states where Big Pharma and Big 
Insurance can easily buy off legislators and officials, as they've been doing 
for years. 

A third is bind the public plan to the same rules private insurers have already 
wangled, thereby making it impossible for the public plan to put competitive 
pressure on the insurers.

Max Baucus, Chair of Senate Finance (now exactly why does the Senate Finance 
Committee have so much say over health care?) hasn't shown his cards but 
staffers tell me he's more than happy to sign on to any one of these. But 
Baucus is waiting for more support from his colleagues, and none of the three 
proposals has emerged as the leading candidate for those who want to kill the 
public option without showing they're killing it. 

Meanwhile, Ted Kennedy and his staff are still pushing for a full public 
option, but with Kennedy ailing, he might not be able to round up the votes. 
(Kennedy's health committee released a draft of a bill today, which contains 
the full public option.)

Enter Olympia Snowe. Her move is important, not because she's Republican (the 
Senate needs only 51 votes to pass this) but because she's well-respected and 
considered non-partisan, and therefore offers some cover to Democrats who may 
need it. 

Last night Snowe hosted a private meeting between members and staffers about a 
new proposal Pharma and Insurance are floating, and apparently she's already 
gained the tentative support of several Democrats (including Ron Wyden and 
Thomas Carper). 

Under Snowe's proposal, the public option would kick in years from now, but it 
would be triggered only if insurance companies fail to bring down healthcare 
costs and expand coverage in he meantime.

What's the catch? 

First, these conditions are likely to be achieved by other pieces of the 
emerging legislation; for example, computerized records will bring down costs a 
tad, and a mandate requiring everyone to have coverage will automatically 
expand coverage. If it ever comes to it, Pharma and Insurance can argue that 
their mere participation fulfills their part of the bargain, so no public 
option will need to be triggered. 

Second, as Pharma and Insurance well know, "years from now" in legislative 
terms means never. There will never be a better time than now to enact a public 
option. If it's not included, in a few years the public's attention will be 
elsewhere.

Much the same dynamic is occurring in the House. Two members who had originally 
supported single payer told me that Pharma and Insurance have launched the same 
strategy there, and many House members are looking to see what happens in the 
Senate. Snowe's "trigger" is already buzzing among members.

All this will be decided within days or weeks. And once those who want to kill 
the public option without their fingerprints on the murder weapon begin to 
agree on a proposal -- Snowe's "trigger" or any other -- the public option will 
be very hard to revive. 

The White House must now insist on a genuine public option. And you, dear 
reader, must insist as well.

This is it, folks. The concrete is being mixed and about to be poured. And 
after it's poured and hardens, universal health care will be with us for years 
to come in whatever form it now takes. 

Let your representative and senators know you want a public option without 
conditions or triggers -- one that gives the public insurer bargaining leverage 
over drug companies, and pushes insurers to do what they've promised to do. 
Don't wait until the concrete hardens and we've lost this battle. 

~~Talking Points Memo: http://snipurl.com/jmqqn




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