After the Director of the Congressional Budget Office, Doug
Elmendorf, delivered a serious blow to President Obama's
credibility on health care when he testified
that none of the current Democratic bills does anything to
control costs -- the stated goal of reform -- the White House
responded with a novel idea:
create a commission! The new Independent Medicare Advisory
Council would be for a panel of experts chartered to make
recommendations on how to contain costs in Medicare. But when
Obama was asked about it during yesterday's AARP townhall, he
backtracked that cost-containment actually the point of the
commission. Er, maybe he didn't. Okay, let's just look at the
relevant portion of the transcript (with emphasis on my part):
Q Hello, Mr. President. My question is
some concern we have about the possibility of a cost
containment commission. If you could comment on that.
THE PRESIDENT: The idea is not the cost -- it's
not a cost containment commission that's been
proposed. It's been what I just described -- an
independent medical advisory committee modeled on the kind of
committee that is called MedPAC right now. It's got
people who are health care experts, nurses, doctors, hospital
administrators. The idea is how do you get the most value
for your health care dollar.
Now, the objective is to control costs. But it's
not cost containment by just denying people care that they
need. Instead it's reducing costs by changing
the incentives and the delivery system in health care so that
people are not paying for care that they don't need. The
more we can reduce those unnecessary costs in health care, the
more money we have to provide people with the necessary costs
-- the things that really pay high dividends in terms of people
becoming healthier.
Got that? It isn't a cost-containment commission even though its
objective is to control costs. I can think of no more concise
demonstration of Obama's double-speak on health care. The problem
Obama faces is that he wants to push the idea that he's going to
reduce Medicare spending to satisfy the CBO and those concerned
about exploding deficits, but he doesn't want senior citizens to
think any of the cuts will affect the care they currently
receive. And this gets to the heart of his failure as a leader --
his inability to acknowledge that tradeoffs exist. This has been
the case no matter the issue. He wants to drastically increase
spending and reduce the deficit while maintaining that he'll cut
taxes on 95 percent of Americans and only raise them a slight
amount on the very wealthy; he claims he'll rein in entitlement
spending by creating a massive new entitlement; he argues that a
national energy tax (which he won't admit is a tax on energy)
will help the environment and improve the economy at the same
time; and he says that we can give health insurance to 46 million
more people, save money, improve the quality of care, and avoid
rationing.
But for a moment, let's take Obama at his word. Let's say that
the $622 billion in Medicare cuts he's proposed would merely
eliminate waste, fraud, abuse and inefficiency and would not
affect care. And let's say that the proposed Medicare panel finds
that billions more are being thrown away by Medicare, and simply
paying for services that patients don't need. Uh, doesn't that
kind of undermine Obama's case that we need to create a
new government-run health care program because it will
be efficient and have low administrative costs?