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Right Isn't Wrong

The Financial Times has published a bizarre column by Matt Miller, a former Clinton administration budget official, titled "right is wrong to attack Obama’s health plan" in which he lashes out at conservatives for criticizing what Obama is actually proposing rather than what Miller wants him to propose. This article is so misleading and poorly written, that it's hard to know where to start, so I'll just begin at the beginning.

Miller writes:

The Republican charge that Barack Obama is seeking a “government takeover” of US healthcare is further proof that American political rhetoric has become detached from reality. In fact, once you take away the proposed public insurance option, which Mr Obama’s aides have signalled they will drop in final negotiations, the likely outcome is an affordable reform that embraces Mitt Romney’s blueprint from Massachusetts and funds it with John McCain’s best idea from the presidential campaign.

Only in America can you co-opt Republican thinking and have critics label you “socialist”.

Arguing that we should judge Obama's health care effort assuming the absence of a "public option" is quite a caveat for Miller to just throw out there. This isn't some minor feature of Democratic proposals, but is seen as the key to their efforts to overhaul the health care system. The provision was central to President Obama's campaign proposal, he has maintained public support for it, Rahm Emanuel was forced to backtrack when he hinted that it was negotiable, Harry Reid has said the Senate Bill needs to have one and Nancy Pelosi has said the same on the House side.

Just because Mitt Romney is a Republican, doesn't mean his health care plan wasn't a step toward socialized medicine. Plenty of conservatives who weren't shilling for Romney's presidential campaign recognized the 2006 Massachusetts "reform" for what it was: a big government health care plan in which government forced people to obtain insurance and then provided them with government subsidies to purchase government-designed insurance on a government-run exchange. 

Miller then writes:

Start with cost. It’s easy for foes to feign shock at Obamacare’s $1,000bn 10-year price tag, but a trillion dollars ain’t what it used to be. That is just over 0.5 per cent of gross domestic product over the same period, and barely 3 per cent of the roughly $35,000bn total healthcare spending during that time. If Mr Obama’s approach is otherwise sensible, the idea that America can’t afford it is preposterous.

Yes, it's "preposterous" to say we can't afford something when the Congressional Budget Office is already projecting $9.3 trillion in cumulative deficits over the next decade. It's "preposterous" to argue that we can't afford to create a new entitlement when the ones we have now are already driving a long-term entitlement deficit of $56 trillion. It's "preposterous" to argue that we can't afford to add 20 million beneficiaries to Medicaid when the current program is currently bankrupting state governments.

Of the Massachusetts plan, which has led to skyrocketing costs and longer waiting times in the state, Miller writes:

The results have been impressive. The ranks of the uninsured have been slashed; just 2.7 per cent of residents now lack coverage, the lowest of any state – against 15 per cent nationally. Costs, which overran as the programme was brought in more quickly than planned, are now on budget.

What he doesn't say is that Taxachusetts just passed a 25 percent hike in the sales tax. And State Treasurer Timothy P. Cahill, a Democrat, criticized the health care legislation, telling the Boston Globe that : “Everyone wanted it to pass, to get it on their resume...Nobody asked the tough questions. It was expensive, even in good times. In tough times . . . it just doesn’t seem doable.’’ Later in the article, Cahill is quoted as saying, “We’re all still waiting for the savings....Universal healthcare was supposed to eventually save us money.’’ He added, “It’s a warning for the federal government as it looks to do something similar."

Then, after having written that it's "preposterous" to say that we can't afford health care, Miller argues that the only way to do so is to tax employer-provided health benefits:

When it comes to financing expanded coverage there’s no way to get there without revisiting the current scheme, under which employees escape taxes on employer-provided health benefits. This subsidy is so massive, at $250bn a year, and regressive – reserving its biggest bounty for those with the most generous plans – that a phalanx of health economists from both political parties recently begged Congress to trim it.

As it turns out, scrapping this tax subsidy was the bold, if unappreciated, centrepiece of Mr McCain’s health plan during last year’s election. The fact that candidate Obama slammed it then as a tax hike on the middle class does not mean President Obama cannot embrace it as part of a deal that achieves his goals; his top advisers have long agreed it is the soundest way to fund reform. Moreover, union leaders who defend the tax exclusion because it bankrolls union plans tell me they are open to change to get to universal coverage.

The problem is that Harry Reid ordered Max Baucus to rule out the idea of taxing employer-based health care, especially given low polling numbers. Obama has also remained opposed. And as for the unions, I'm not sure who Miller spoke to, but unions have been fiercely opposed to the idea publicly. Last month, Gerald McEntee, President of the American Federation of State, County, and Municipal Employees (AFSCME), warned that any attempt to tax employee health benefits would “turn good people against great reform.”

Miller writes, "just because Obama is on a path to give America the Romney health plan with McCain-style financing does not mean the Republicans will embrace it, if it seems politically more attractive to scream 'socialist.' But the rest of us do not have to listen to them. Mr Obama can fairly claim to have championed a bipartisan health policy, even with few Republican votes."

This is really weird. Normally, the way it's supposed to work is that somebody defending an administration's policies is supposed to defend its actual policies. Yet Miller is arguing that we must praise Obama for championing bipartisan health policy that neither he nor the relevant Democrats are supporting, and refrain from criticizing him for what he and most Democrats are actually proposing.

View all comments (6) | Leave a comment

PKane| 7.14.09 @ 3:52PM

I am by no means a Romney fan - I think he would be a disaster of a candidate for a variety of reasons, but that's a whole other issue.

Right now he could do well by his party, his country and, by extension, his political stock by coming out and reputiating the disaster of a plan he pushed through in MA.

He'd pull the rug out from under the Dems, who gleefully point to him as a Republican supporter of government care.

He could take the lead in the conservative opposition effort, with a unique credibility on the inherent flaws of government intervention. Dems could not dismiss him as part of "The Party of NO!!" Rather, Romney could counter: 'Look, I lead the effort, I worked with liberals, I thought government could work...I know, from experience, it can't work and let me tell you why by explaining the flaws in the program I, unfortunately, put in place.'

Sounds crazy, but hey, its not like he hasn't flip flopped before and it sure as hell beats the tortured spectacle of conservatives having to make excuses for Romney's record as governor. Plus, this is the Age of Obama - groveling over mistakes is in.

Sean| 7.14.09 @ 6:24PM

The idiot Romney was shilling for his plan as recently as the debates, but he is known for his flip flops.

jacksmith| 7.14.09 @ 10:36PM

THIS IS IT!

The healthcare reform bill released by the House Of Representatives is an excellent bill as I understand it. It is carefully written, and thoughtfully constructed, informed, prudent and wise.

This is the type of bill that all Americans can feel good about. And this is the type of bill that has the potential to dramatically improve the quality of healthcare for all Americans. Rich, middle class and poor a like. Democrats, Republicans, Independents, and all other party affiliations. This bill has the potential to dramatically improve the quality of life of every American.

The house healthcare bill should be viewed as the minimum GOLD STANDARD by which all other proposed healthcare legislation should be judged. All supporters of true high quality healthcare reform should now place all your support behind this healthcare reform bill released by the United States House Of Representatives, as the minimum Gold standard for healthcare reform in America.

You should all now support this bill with all your might, and all of your unrelenting tenacity. This healthcare bill is a VERY, VERY GOOD! bill for all of the American people. Fight tooth, and nail for every bit of this bill if you have too. Be aggressive, creative, and relentless for this bill.

AND FIGHT!! like your life and the lives of your loved ones depends on it. BECAUSE IT DOES!

SPREAD THE WORD

God Bless You

Jack Smith — Working Class

Dan Chisholm| 7.14.09 @ 11:44PM

The Democrats are being disingenuous when they they that Obama' s plan is like Romney's. Romney has been very critical of Obama's plan, but he has also been truthful about what the problems with the Massachusetts plan are.

The overwhelmingly Democratically controlled congress in Massachusetts forced in a lot of mandates that Mitt never wanted in the plan and Deval Patrick has since made the plan worse. However, if I had to pick one person to lead our country forward in this health care debate, I'd have to pick the the only man in America that has actually got something passed.

The results in Massachusetts will be helpful in getting some democrats to vote for Mitt's new plan if Mitt ends up being president in 2012.

Steve Dill| 7.15.09 @ 9:56AM

Why do democrats refuse to discuss the 250,000 health care-related jobs which will be lost under Obama's reform? These are mostly high-paying jobs, which can not be replaced.

I have already seen job loss in anticipation of his reform. At my web site, http://www.gorillamedicalsales.com , a job board for medical device sales representatives to seek employment, medical companies are simply not filling vacant sales jobs as the prepare for life after reform.

Harry Meinhardt| 7.15.09 @ 10:46AM

I read Mr Jack Smith's comments and would like to respond. I was born and raised two blocks from the city dump, I worked on the docks while going to high school, the enlisted in the Army during WWII. I'm not "working class", I'm 'fighting class", having served also in Korea and Vietnam during those wars.
The proposed Health Plan is not "very, very good" but certainly will be "very, very expensive" making Medicare and Medicaid look cheap in comparison. And if Jack thinks that people are going without health care, let him visit the emergency rooms of a few hospitals one evening and see how many "uninsured" folks are waiting there for "free" health care.

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More Blog Posts by Philip Klein

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