Bring On the GOP Health Policies!

I’m with Steve Benen on this one: after listening to Republicans say all weekend that the president needs to surrender on health care reform and start embracing theirpolicy ideas, maybe it’s time to draw a lot more public attention to all that fine GOP thinking on the subject.

So where to begin? I guess that would be with the “plan” that drew 176 Republicans votes in the House in a test vote in November of last year, the so-called “Boehner plan.” Dissed by an official Congressional Budget Office analysis that suggested it would cover almost none of the uninsured, while controlling costs far less effectively than the House Democratic proposal, this plan followed the usual conservative template of focusing on tort “reform,” “interstate markets” for private heath insurance (e.g., elimination of state regulations), elimination of the entire employer-based system, and a two-pronged strategy of subsidizing high-deductible individual health plans for healthy people, and state-run risk pools for sick people. It was, as Matt Yglesias put it, an “un-insurance” plan that would take health policy, in some respects, back to the 1950s.

Another example of Republican “thinking” on health care policy is the idea of “voucherizing” Medicare, which was the central health policy element of the official House GOP “alternative budget” offered last April by Rep. Paul Ryan of WI. While “Medicare voucher” proposals vary, they all at the very least aim at transforming Medicare into a system of federal subsidies for purchasing private health insurance, while capping expenditures regardless of the impact on benefits. To put it simply, seniors would march through the streets with torches to protest any such plan if it were taken seriously.

And then there’s the most fully developed Republican health care plan, the one developed and implemented by the front-runner for the 2012 GOP presidential nomination, and recently promoted by the party’s maximum “new star”: the Massachusetts health reform plan. How about allowing a vote on that in Congress? Oh, yeah, sorry, that’s pretty much the plan already passed by the U.S. Senate without a single Republican vote! It’s socialist!

Suffice it to say that while Democrats have been materially hurt by endless scrutiny and confusion about the substance of their ideas on health care, Republicans have massively benefitted from a total lack of accountability for their own ideas. Best I can tell, Republicans would probably be politically destroyed if people truly paid attention to GOP health proposals. So Democrats should find ways to help their GOP colleagues publicize their ideas.

This item is cross-posted at The Democratic Strategist.

Fragile Consensus

Everyone should read Matt Yglesias’s post,”How Close Were We, Really?” which makes a point that I’ve been mulling. The fact that health care reform blew up so quickly after the Brown win implies that whatever consensus had been achieved between the Senate and House, it was significantly incomplete, weak, or both. House liberals apparently were not prepared to pass anything coming out of conference that didn’t reverse the problems they have with the Senate bill. But it’s unclear whether moderate senators or representatives would have stayed on board in that event. If the last week shows nothing else it reveals that a whole lot of members of Congress were decidedly un-excited about supporting anything resembling either chamber’s bill.

This seems like a job for Keith Hennessey: knowing what we know now about the uneasiness of moderates and the stubbornness of liberals, what was the likelihood that reform would have passed if Coakley had won? (Keith had the probability of collapse given a narrow Coakley victory at 10 percent — and two percent with a big win — before the election.)

If this interpretation is right, it implies that many progressives haven’t given enough credit to how far out on the plank many moderates actually went (which isn’t that surprising given how many of them misread the polls). Pre-Brown, moderates were betting that antagonism toward reform wasn’t so strong that their job — their chance to work on all of their other legislative priorities — was in mortal danger. The Brown win provided new information that clearly affected the calculus (as did the initial freak-out by Massachusetts’s own Barney Frank).

Perhaps one big reason why the Obama team (and everyone else) was caught flat-footed after the election was that they were unaware of how much moderates already felt they had stuck their necks out.

All this said, I think the consensus that Democrats having second thoughts ought to accept that they have no choice but to vote for the final bill is correct. Actually, I think these Democrats have probably reached that conclusion too. But it’s important to note that that wouldn’t be enough to pass something — if House liberals won’t vote for the Senate bill, it doesn’t matter what moderates do. What progressive bloggers need to do is start working the liberal legislators in the House.

The Living Standards of the Poor — Part I

Last week, I spent some time looking at the living standards of the middle class, showing that they have improved notably over time and giving evidence that they are better than or comparable to middle-class lifestyles in other industrialized nations. I will be returning to this issue in a later post in order to address the “two-income trap” argument of Elizabeth Warren, which was raised by Reihan Salam and by Rortybomb.

For now though, I want to talk about the living standards of the poor. It’s important to make the distinction between trends (which I’ll discuss today) and absolute levels of material well-being (which I’ll discuss in a later post) because things can have improved a lot at the same time that they are still not all that great.

Let’s return to the comparison I used in my post on the middle class of “the gold standard” of 1973, when median household income was at its pre-stagflation peak, to 2008. To represent “the poor,” I’ll look at the 20th percentile — the household that is doing better than 20 percent of other households but worse than 80 percent of them. You’ll have to trust me that my research indicates the story would be similar if I were talking about the tenth percentile.

It’s easy to look at only a fairly limited income measure going back to 1973 for the 20th percentile. Doing so indicates that income at the 20th percentile grew from $19,046 to $20,712 (in 2008 dollars, adjusted by the Bureau’s preferred CPI-U-RS). That’s obviously not impressive growth, though it should be noted that the poor are a bit better off today than they were in 1973 (and they look a little better comparing 1973 to 2007, which is a fairer comparison). Using the PCE deflator, which the federal Bureau of Economic Analysis uses (and which I prefer because of the evidence that the CPI-U-RS overstates inflation, particularly among the poor), income increased by about $3,000 after accounting for the cost of living, or 16 percent. That’s about the same as for the middle class using the same measures and methods.

As I noted in the middle-class post, the official income definition is pretty limited. The Census Bureau’s “Definition 14” takes into account taxes, public benefits, and the value of health insurance, and it’s easy to look at going back to 1979 (which was at least as good/bad a year for the poor as 1973 was). By this measure, income at the 20th percentile rose from $17,999 to $24,642 from 1979 to 2008 (using the CPI-U-RS). That’s an increase of over one-third—after adjusting for the cost of living. When the PCE is used to adjust for the cost of living, the increase is almost $8,000—45 percent!

A number of commenters to my post on the middle class didn’t like that the value of health benefits were included in my “comprehensive” income measure. I prefer including them in “income” because employer health care costs have caused earnings growth to be quite a bit lower than it otherwise would have been, and employer- and publicly-provided health insurance contribute to living standards. It is possible that the way the Census Bureau estimates the value of health insurance exaggerates improvements in well-being, but it is not simply the case that rapid health care inflation negates those estimates. Many health economists believe that rising health care costs do reflect corresponding improvements in the quality of care received. At any rate, whether or not you believe I have a dog in this fight, hopefully you believe that the Census Bureau doesn’t.

Nevertheless, we can look at the trend omitting the value of health insurance in 2008. Doing so offers a somewhat conservative estimate of the increase because I can’t omit the value of insurance from 1979. The increase, however, is 21 percent using the CPI-U-RS, and 29 percent using the PCE.

So it seems pretty likely that the living standards of the poor in the U.S. have improved fairly robustly in recent decades. Before leaving behind the question of trends, I should note that there is pretty overwhelming evidence that male workers who don’t get further education beyond high school have seen real wage stagnation (though the story for the median male worker, as I showed in the middle-class posts, is much better). The fact that household incomes at the bottom have grown reflects a decline in taxes paid, an increase in the value of means-tested benefits, and greater work among women (including single women). Computations I have done indicate that confining things to non-elderly households doesn’t affect the story importantly; nor does adjusting incomes for household size.

This issue of greater work among women is one of the last remaining arguments to my case that I feel I need to address more, because it is obviously key to the question of whether higher incomes really reflect improved living standards broadly construed. After all, we could all work more hours and sleep less, which would improve our incomes but not necessarily our quality of life. I’ll take this up in my next couple of posts, but suffice it to say, you can assume my read of the evidence doesn’t overturn the case I’ve been trying to make thus far.

They Don’t Like Each Other

A problem that seems to be getting lost in the current confusion over the fate of health reform legislation is something that has little to do with party or ideology, much less with the details of health policy. It’s cameralism.

To put it simply, members of the U.S. House and the U.S. Senate have very different perspectives, mistrust each other’s motives, and rarely communicate. In general, they don’t much like each other. They live and work in two very different institutional cultures, and with the exception of House veterans serving in the Senate, they don’t go to much trouble to find out how the other chamber functions.

Much of the time this “cameralism” is background noise in the legislative process. But when it comes to the kind of highly complex, trust-based maneuvers that health care reformers are talking about this week–you know, House passes Senate bill with assurance that Senate passes bill “fixing” their own bill via budget reconciliation, somewhere down the road–it’s a real problem that can’t just be wished away. And that’s particularly true in an environment requiring almost total agreement among Democrats in both Houses. Maybe that’s one reason the White House is talking about a “cooling off” period on health care reform.

This item is cross-posted at The Democratic Strategist.

Health Reform, Public Opinion, and “Liberal Pundits”

In the wake of Tuesday’s Republican victory in Massachusetts, Scott Winship wrote a post here that expressed hope that “liberal pundits” would finally get out of “denial” about the unpopularity of health care reform.

Now as Scott knows, there’s always peril involved in making generalizations about the views of large classes of people. I don’t know which “liberal pundits” he’s thinking about in making the suggestion that there’s a general unwillingness to accept public opinion data on health reform; the links he offers don’t really support the claim. But most of the “liberal pundits” I’ve read in recent months don’t dispute the fact that public support for the particular legislation being discussed in Congress at any given moment has been flagging (though given the very fluid nature of the legislative process, it’s difficult to identify which version the public is reacting to, which is why the variations in the wording of polling questions on health reform so often produce different results).

Scott goes on to mock particular arguments that he views as rationalizations for this alleged unwillingness to accept reality: voters are uninformed, Republicans have misled them, and in any event, a significant part of the opposition to health reform bills is “from the left.”

Are these really just rationalizations? I don’t think so. Poor public information on health reform and Republican lies about “ObamaCare” are germane for the simple reason that public opinion may well change if health reform is enacted, and lo and behold “death panels” aren’t convened, Medicare benefit cuts don’t happen, and “government” does not in fact “take over” health care. And the “opposition from the left” data point is relevant to nervous Democrats in Congress because voters unhappy with the absence of a public option, for example, are not terribly likely to vote for Republican candidates who favor voucherization of Medicare or oppose regulation of health insurers.

Scott also seems to assume that “liberals” who talk about the “will of the majority” being frustrated by the de facto 60-vote requirement in the Senate are talking about public opinion. But all the examples he cites are in fact discussing the “will of the majority” of senators, and the majority of the population they represent. The rules of the Senate, after all, cannot be adjusted daily based on tracking polls of the relative popularity of this or that piece of legislation.

Finally, there’s the apparent motivator of Scott’s post: the Massachusetts results. Should the strong opposition of Scott Brown voters to health care reform (at the federal level, at least) represent an “aha” moment for those with any doubts about public opinion on this issue? Again, I see no atmosphere of denial on the subject; yes, many observers, myself included, have noted that a lot of different things were going on in Massachusetts, and have argued that it was not all just one vast referendum on health reform in Congress. But more to the immediate point, the relevance of the Massachusetts results to public opinion nationally is significantly damaged by its unique status as a state that has already enacted reforms almost identical to those attempted by the pending legislation in Congress. And this, in fact, was Scott Brown’s number one talking point on health care reform: why should Bay State citizens pay taxes to give Nebraska the benefits Massachusetts already enjoys? That’s a pretty compelling argument, on the surface at least, but it’s not one that can be made elsewhere.

Ironically, Scott closes his piece by suggesting that perhaps congressional Democrats should put aside fears about public opinion and enact health reform legislation anyway. In doing so, he reflects the real debate I’ve been hearing among “liberal pundits” for many months now: when given a historic opportunity to achieve a long-held progressive goal which happens to represent an immediate national challenge, should Democrats defer action until public opinion is completely on their side? What’s the point of running for office as a progressive if you aren’t determined to achieve progressive policy goals when you can? Is there any other approach to health reform that might be more popular? Is there any time like the present for action?

These questions don’t automatically answer themselves, but I don’t think it’s fair to suggest that health reform advocates are in denial about the political risks involved in health care reform, particularly at a time when Republicans are absolutely refusing to cooperate, and when much of the beltway commentariat has been telling the president for months that he should abandon all goals other than agitating the air for more jobs and lower deficits.

Progressives need data-driven critics like Scott Winship who are willing to contribute to our debates with sometimes troubling information. But in this case, I suspect, to use an old southern expression, he’s just goosing a ghost.

Health Reform Back From the Dead

There was a point yesterday when it sure looked like Scott Brown had managed to kill federal health care reform without setting foot in Washington. Senate Democrats were busily disclaiming any interest in further action on a potential House-Senate conference committee report before Brown could arrive to joyfully join a filibuster and impose the will of the minority. House Democrats were refusing to consider passage of the Senate bill (which could avoid the necessity of a conference committee report and another Senate vote) without iron-clad assurances of future action to change objectionable features (e.g., the “Cadillac tax” which unions hate, and language restricting abortion). Such assurances did not seem to be forthcoming from Senate Democrats. And no one knew where the White House was, though rumors abounded that the president had told a reporter it was time to go back to the drawing board and try to enact something less ambitious.

All this was happening as conservatives in effect snaked-danced through the streets hailing Brown’s victory as the largest political event since, maybe, World War II, and the effective end of the Obama presidency.

The general malaise among health-care-reform-minded progressives was probably best expressed by The New Republic‘s Jonathan Cohn, who has been an eternal optimist about prospects for eventually getting legislation done. He published a piece late yesterday bewailing the White House’s apparent drift, with the bitter title: “Where’s the Obama I voted for?”

As often happens, though, the panic subsided, and things look more hopeful today. Turns out the president’s comments were vague but resolute about pressing forward on health reform. Senate Democrats are not walking away from health reform, and House Democrats have stopped making angry comments about the impossibility of getting acceptable assurances from the Senate about future action in order to facilitate passage of the Senate bill. It still will be complicated to put together a “deal” that both progressives and moderates in both Houses can live with, but it seems to be sinking in that failure to enact anything, after so many Democrats have already cast votes for reform and made themselves targets for conservative attacks, is just not an acceptable outcome.

So the conservative exultation over “the death of ObamaCare” may be a bit premature. We’ll know soon enough.

This item is cross-posted at The Democratic Strategist.

Public Opposition to the Health Reform Bill — and Liberal Pundits Who Ignore It

There will be a mountain of analysis regarding the Brown victory in Massachusetts last night and what it means for health care reform. But what is striking to me this morning, skimming my RSS feeds, is the same thing I have found striking throughout the past year — how willfully ignorant liberal advocates of health care reform continue to be about public opinion on the Senate- and House-passed versions of health care reform.

There’s no need for extended analysis of the polling to make my point. Start with the basic favor/oppose trend for health care reform:

You can argue that people are uninformed. You can argue that Republicans have misled them. You can argue that people support something called “health care reform” as a general concept. But the numbers are what they are — only a minority supports the bills under consideration.

Faced with such numbers, reform advocates have defensively pointed out that much of the opposition to health care reform comes from the left, as if that somehow rendered the bills’ unpopularity irrelevant. What is devastating to their case, however, is a look at the intensity of views toward reform.

When assessing polling results, I have found it is crucial to employ what I call the Kessler Rule, after Third Way’s Jim Kessler. Jim argues that anytime someone tells a pollster that they are “somewhat” supportive or opposed to something, it basically means they don’t have strong feelings one way or another or that they have so little interest in the issue that they haven’t even formed an opinion. Rasmussen has been asking its respondents whether they “strongly” or “somewhat” support or oppose health care reform for months. The first time they asked was in August, during the congressional recess, when they found that 43 percent of respondents were strongly opposed, compared with 23 percent who were strongly supportive. Keep in mind, this was when the public option was still included in all major proposals, so liberal backlash was unlikely to have been much of a factor in this contrast.

The most recent poll Rasmussen conducted was over the weekend. Results: 44 percent strongly opposed, 18 percent strongly supportive.

You would think that such numbers would dent the confidence of reform advocates that the public overwhelmingly supported their own preferences. You would be wrong. Instead, incredibly, health care reform was cited throughout the fall and winter as Exhibit A for why we need to get rid of the filibuster in the Senate! If something as popular as health care reform faced such difficulty winning passage, it was argued, then the Senate can no longer govern!

Now with Scott Brown’s defeat of Martha Coakley, advocates have bent over backwards making the case that the election of a conservative in one of the most liberal states in the country — to fill a seat vacated by the patron saint of health care reform, at a time when the result would determine the fate of reform — had nothing to do with public opposition to reform.

Rasmussen’s election night survey says everything you need to know about how much these advocates are kidding themselves: 78 percent of Brown voters strongly oppose the health care bills before Congress.

What’s my point? It’s not that the case for health care reform is bunk or that policymakers should make their decisions based on polls. Like many progressives, I think the House should pass the Senate bill and that they should fix it later. (Unlike most progressives, my “fixes” would involve moving in the direction of Wyden-Bennett or even a more generous version of the House Republican bill rather than in the direction of House Democrats.) It’s not that liberal advocates should not spin issues in ways that promote their policy preferences. It’s that they should not believe their own spin — the country remains moderate. But don’t take it from me — take it from the 2010 electorate in November.

The views expressed in this piece do not necessarily reflect those of the Progressive Policy Institute.

Where’s Mitt?

As the entire political world looks to Massachusetts today to see what its voters (or at least those willing to vote in a special election) do about an open Senate seat, Republicans, of course, are excited by the possibility that they can kill health care reform by denying Democrats the 60th vote they need for final passage of the reform plan in the upper chamber. But it kinda makes you wonder why in all the obsessive coverage of the MA race, we aren’t seeing the last Republican to win a major statewide office in the Bay State: you know, Mitt Romney, supposedly the front-runner for the 2012 GOP presidential nomination.

Politico‘s Alex Isenstadt raises that question today, and the bottom line is that, well, Romney’s just not that popular in Massachusetts:

Romney’s White House run, said Jeffrey Berry, a Tufts University political scientist, left a sour taste in the mouths of state voters.“Mitt Romney is an unpopular former governor. He left the state to run for president and people feel he was insincere when he ran for governor in the first place,” said Berry. “He hasn’t really been a part of Massachusetts political culture since he left office. I think people thought he ran for office merely to run for president.”

Andrew Smith, director of the University of New Hampshire Survey Center, explained that voters in Massachusetts had recoiled after Romney took a sharp right turn on social issues during the presidential campaign — and the former Massachusetts governor went so far as to criticize his home state over its legalization of gay marriage.

“He sort of lost credibility among voters in the state,” said Smith.

This certainly helps explain why Republican candidate Scott Brown hasn’t been anxious to recruit Romney to run around the state with him, but there may be something else going on that is keeping Romney out of the picture: Brown’s support for the Massachusetts health system, which is by all accounts a major albatross for Mitt in his future presidential aspirations.

After all, Brown’s number one talking point in recent days has been that his state doesn’t need federal health care reform because it’s already enacted a strikingly similar set of reforms on its own. National action, he argues, will just mean Massachusetts taxpayers will have to help other states get up to speed in covering the uninsured.

This may be an effective argument in Massachusetts, but it’s not terribly appealing to Republicans elsewhere, who typically view the kind of reforms enacted under Romney’s leadership in the Bay State as rampant socialism. The last thing Romney needs is to put himself in the middle of that particular debate.

And so, irony of ironies, the most famous Massachusetts Republican is out of public sight on the day when Massachusetts could give the GOP a very famous victory. That doesn’t bode well for Mitt’s 2012 prospects, and for that matter, for Republican claims that a Brown victory can be exported elswewhere–say, to the 49 states who haven’t enacted a health care reform initiative much like the one they are trying to kill in Congress.

This item is cross-posted at The Democratic Strategist.

Health Reform Endgame

Whatever happens today in Massachusetts, congressional Democrats must pass a health care reform bill. There is a lot more at stake here than curbing medical costs and expanding coverage, though both are crucial. The fundamental challenge is proving that progressives can govern the country.

A win on health care would show that Obama and his party are serious about fixing our broken political system. A loss would make Democrats look feckless and deepen public anger and cynicism toward government.

It’s gut check time for Democrats. If Republican Scott Brown wins the Massachusetts Senate race, some nervous centrists may be tempted to overread the result as a “populist” revolt against health reform or “big government” solutions in general. Some liberals will claim that voters are punishing Democrats because Obama and his party haven’t been radical enough. If only the Democrats had included a public option, or embraced a straight-up single payer architecture, then voters would at last see change they can believe in.

Well, Massachusetts voters seem to have other things on their minds besides health care, like the economy and one-party dominance of state politics. But there’s no doubt that public support for health reform has steadily eroded over the past year. During the 2008 campaign, voters routinely listed health care as their top concern; now only 39 percent favor the President’s reform blueprint.

Although conservative disinformation has taken a toll, the main reason is that Americans are more worried about the economy than health care. And as ordinary families struggle with depleted retirement savings, home foreclosures and double-digit unemployment, they also stew over the billions Washington has spent to bail out overcompensated bankers and inept auto executives. Such “populism,” however, doesn’t fit neatly within any ideological template. People are mad at Wall Street greedheads, but they’re also increasingly anxious about government regulation and deficits, which makes them wary of liberal demands for bolder, costlier initiatives.

Another reason for growing disenchantment with health reform is the process itself. The health care debate has shown Washington at its polarized and parochial worst. It has taken too long and involved endless haggling by an ever-changing cast of negotiators. Too many interests have been accommodated, at the expense of both taxpayers and policy coherence. Win or lose, the coming after-action reports on health reform will surely focus on the wisdom of President Obama’s decision to articulate broad principles and let Congress sweat the details.

Still, in the end, all of us need relief from escalating health care costs, and millions of our fellow citizens need access to insurance. And more than anything else, Americans need to know that our democracy still works. That’s why progressives ought to fall in behind President Obama’s dogged efforts to pass a bill.

“The worst thing to do is nothing,” former President Bill Clinton advised Democrats at their recent retreat. He’s right. Should Democrats lose the Massachusetts seat, they will basically face three choices. One is to speed up efforts to reconcile House and Senate bills and push for floor votes before Scott is seated in the Senate. The second is for the House to pass the Senate bill intact and send it to the President’s desk for signature. The third is to give up. Option 2 is the quickest, simplest and most procedurally defensible course. It’s one pragmatic progressives should support on policy grounds as well, since the Senate bill, though far from perfect, is more fiscally responsible and contains stronger cost control measures than the House version.

Republicans will cry foul in any case, but their credibility is shot. The post-mortems also will show that, by taking an obstructionist stance from the beginning, Republicans foreclosed any possibility of a bipartisan bill. Worse, as health care analysts Bryan Dowd and Roger Feldman argued last week on Progressive Fix, they violated their their own beliefs (for example, by piously denouncing cuts to Medicare providers) and utterly failed to offer a principled alternative.

For House Democrats, especially liberals, having to approve the Senate bill unchanged would be a bitter pill. The bill’s subsidies for low-income workers aren’t as generous, its regulations on the insurance industry are less severe and, of course, it doesn’t include their cherished public option. But they should recognize that their party’s reputation for governing competently is on the line and take one for the team.

For the governing party, winning ugly beats losing ugly. Passing a bill, moreover, is the beginning, not the end, of improving health care quality and delivery in the United States. The government will have to issue new regulations to put the bill’s often vague provisions into force, and like any piece of landmark legislation, it will be tweaked and revised as we go along.

So on health care reform, progressives ought to hang together or – you know the rest.

Why Republicans Deserve to Lose the Health Care Reform Debate

As Congress makes sausage out of health care reform, Republicans have complained bitterly that they have been excluded from the process. As health economists whose work generally reflects a market-based perspective, it might be surprising to hear us say that exclusion is just what the Republicans deserve. There are three reasons why.

Private health insurance works best for Americans who get it in groups through their employers. But virtually all such Americans know they are only one layoff away from losing their health insurance. If they have a pre-existing medical condition, they will have to pay astronomical premiums for an individual insurance policy, if they are lucky enough to get coverage at all. Those who are turned down can face financial ruin from the cost of illness. Any rational person would want to insure against the risk of losing his or her health insurance, but that is virtually impossible to do in the current health insurance marketplace.

This is a clear case of market failure and it has persisted for decades, yet Republicans simply don’t recognize this as a problem that needs to be solved. The individual insurance market is the source of most of the horror stories that plague and sully the health insurance industry, yet Republicans, who say they want to preserve private insurance, have proposed nothing that would address the problem.

The obvious solution is to impose some type of structure (i.e. “insurance exchanges”) on the individual insurance market, including a guarantee that affordable coverage would be available to anyone who shops in the individual market. State governments would be the natural entities to manage this market, but government involvement, even in the face of clear market failure, is anathema to Republicans. In addition, the Democrats’ mandate requiring individuals to purchase insurance is too much for many libertarian-oriented conservatives to bear, especially if costly subsidies are tied to the mandate. But at least they’re attempting to solve a complex problem, something Republicans can’t seem to do.

The second Republican failure is their criticism of the Democrats’ proposed cuts to Medicare. Part A of Medicare (which pays for hospital care) is scheduled to run out of money in 2017, or sooner if the recession continues to depress federal tax revenues. Young Americans have not mismanaged the Medicare program and don’t deserve to pay the bill for that policy failure. Drastic cuts in the cost of Medicare (coupled with higher premiums and a dramatic increase in price competition at all levels) will be necessary to solve this problem, and the sooner the better. The cuts proposed by congressional Democrats – mainly in payments to hospitals, other providers, and private Medicare Advantage plans – are a tepid attempt to deal with this problem. Like many Democratic proposals, they go hand in hand with a misplaced distaste for private health insurance plans. But vilifying the Democrats on that score, without offering alternatives to shore up the program, is fiscally irresponsible.

The third Republican failure is their knee-jerk criticism of “comparative effectiveness” research. This research aims to discover which medical treatments work better than others. It’s perfectly acceptable to worry that comparative effectiveness research in the wrong hands (like the government’s) could lead to rationing. But blanket condemnation of comparative effectiveness research leaves the impression that the current level of ignorance regarding the effectiveness of medical treatments is an inconsequential feature of the health care system. This is an embarrassment to the party that claims to be a prudent steward of the public’s money.

Republicans need to start listening to their constituents and propose innovative, conservative remedies to the numerous problems that plague the U.S. health care system. People who truly are market-oriented should be able to see market failure when it exists and propose corrections, even when those corrections include a role for government. Since the insurance industry has failed to fix itself, Republicans should have proposed a new set of products that protect people from losing insurance coverage. They should have proposed remedies including regulatory constraints that would lead to more stable and affordable health insurance coverage without the need for government subsidies. Finally, Republicans should have promoted their own proposals to fix Medicare, instead of demagoguing the issue. The Republicans’ silence on these fronts has been deafening – and explains why they deserve to lose the health care debate.

Bryan Dowd and Roger Feldman are professors at the University of Minnesota. They split their votes between Barack Obama and John McCain in the 2008 presidential election.

Health Reform Ping Pong “Almost Certain”

904824_ping_pong_3From The New Republic‘s Jonathan Cohn comes word that congressional Democrats are looking to ditch a formal conference committee to reconcile the House and Senate health care reform bills in favor of informal negotiations — or “ping pong,” as it’s called.

According to one of Cohn’s sources, a House staffer, “There will almost certainly be full negotiations but no formal conference,” noting that there are too many procedural obstacles in the Senate to convene a formal conference. A conference to reconcile the bills would require a series of motions in the Senate that call for votes with full debate, offering Republicans a fresh spate of opportunities to stall final passage of the bill (which you know they will not pass up).

To clarify, ping pong doesn’t necessarily mean that the House has to approve, without any say, the Senate health bill. As Cohn notes, ping-ponging can be used as a generic term for informal talks, with the idea that the Senate and House pass the bill back and forth to each other until they’ve agreed on a final version.

Considering the unprecedented obstructionism that Republicans have shown over the course of the past year, going the ping pong route is certainly understandable. From a policy standpoint, it limits the possibility of the bill becoming derailed as the Republicans stretch the process out and strike fear in the hearts of wavering lawmakers. From a political standpoint, its appeal, even to House Dems who don’t particularly like the Senate health bill, is obvious: it allows them to get the protracted health reform debate over with and pivot to jobs.

For the White House, it seems like a no-brainer: play ping pong, pass the bill, and sign it before the end of the month. That would be in time for President Obama’s State of the Union address, when he can stand in front of the American people boasting of a major victory on health care and charting a new path — jobs, jobs, jobs — for 2010.

Shape of the Real Deal on Health Care Reform

If you’re interested in the broad outlines of what House and Senate conferees will be grappling with in reconciling their health care reform bills, take a look at Paul Waldman’s American Prospect piece on the top ten conference issues.

What’s most interesting about the less visible but important issues at stake is that several have big implications for the future shape of health care in this country. One is pretty much settled: the bill if enacted will almost definitely put a final stake in the heart of Medicaid’s vast inequalities between states in eligibility (unless, of course, some sort of general state opt-out is authorized). Another is the collateral attack on the employer-based system of private health insurance via the Senate’s excise tax on high-cost plans, and its small opening to Sen. Ron Wyden’s proposal to let some employees covered by particularly bad employer plans to join the new health insurance exchanges. And still another is the principle, all but gutted in the Senate bill but still maintained by the House, that the health care system, beginning with Medicare, should finally begin separating the sheep from the goats in terms of effective and ineffective treatments.

It’s very likely that media coverage and public controversy over the conference will continue to focus on total public costs, new taxes, subsidy levels, the individual mandate, and the ghost of the public option. But in the long run, other deals may represent the real deal on health care reform.

This item is cross-posted at The Democratic Strategist.

Senate Passes Health Reform

The Senate today passed health care reform legislation by a 60-39 vote. It’s a historic achievement, the farthest health care reform has ever come. Progressives should cheer today’s news.

Yet because the legislative sausage-making occurred under the bright lights of the 24-hour news cycle and incessant blogorrhea, the sense of achievement is tempered by disillusionment — even disgust — with a political system that seems designed to chip away at bold reform. Horse-trading and bickering are hallmarks of the legislative process, but we experienced something different with this bill: because of its momentousness, and because of the media ecosystem, more Americans than ever saw more of the process than ever. And what they saw was a politics that seems horribly ill-suited to solving the public problems that face us today.

Even President Obama, who has shown remarkable faith in messy pluralism throughout the entire ordeal, indicated his frustration with the system, telling PBS:

I mean, if you look historically back in the ’50s, the ’60s, the ’70s, the ’80s – even when there was sharp political disagreements, when the Democrats were in control for example and Ronald Reagan was president – you didn’t see even routine items subject to the 60-vote rule.

So I think that if this pattern continues, you’re going to see an inability on the part of America to deal with big problems in a very competitive world, and other countries are going to start running circles around us. We’re going to have to return to some sense that governance is more important than politics inside the Senate. We’re not there right now.

Meanwhile, that up-close view of lawmaking no doubt contributed to the backlash that has emerged in the netroots over the bill. Dissent was not unexpected, but mutiny? That’s what the president faces on the left. On Firedoglake, one the left’s leading blogs, Jon Walker called the bill’s passage “a loss for the country.” Jane Hamsher accused President Obama of throwing progressives under the bus, calling his deal-making “the move of a deeply cynical politician who believes in nothing but shameless manipulation for political convenience.”

The netroots’ disdain for the president seems at odds with the messianic powers they ascribe to him. Apparently, all the president need do is give a speech or sweet-talk a legislator or two and he can get the left whatever it wants. You make laws, however, with the system you have, not the one you wish you had. Navigate the process — the only one we have — is what the president did. The wonder is that this legislation passed at all. Facing a fractious Democratic caucus, a phalanx of industry stakeholders, and — the biggest factor of them all — a Republican Party that has placed its bet on sinking this presidency, the president is close to notching, in the words of The New Republic‘s Jonathan Chait, “the most significant American legislative triumph in at least four decades.”

It’s not over yet. Anguished negotiations in conference will follow. Continued pressure from Republicans and interest groups, the conservative base and progressive blogs, will try to erode the resolve of congressional Democrats. The Republicans in Congress are a hopeless cause — a fact that, more than any other political consideration, should dominate progressive thinking about tactics and strategy. Seek to improve the bill in conference by all means. But attacking the bill with talking points that could easily come from Republicans (A “deeply cynical politician”? Really?) does the progressive cause no good.

Last year’s campaign showed Obama to be a really good closer. An even bigger test now awaits.

Conservative Crocodile Tears About “Corporatism”

TNR published a piece I did the other day examining the ideological underpinnings of the left/center split in the Democratic Party over the propriety of a universal health care system based on regulated and subsidized private health insurers. I suggested there was a burgeoning, if questionably workable, tactical alliance between “social-democratic” progressives and some conservatives to derail much of the Obama overall agenda. Then I made this observation:

[O]n a widening range of issues, Obama’s critics to the right say he’s engineering a government takeover of the private sector, while his critics to the left accuse him of promoting a corporate takeover of the public sector. They can’t both be right, of course, and these critics would take the country in completely different directions if given a chance. But the tactical convergence is there if they choose to pursue it.

This statement has drawn considerable comment from people on both the Right and Left, mainly objecting to the argument that Obama’s critics can’t all be right.

Conservative theoretician Reihan Salam, writing for National Review, first argued that there’s not much substantive difference between the “New Democrat” deployment of private-sector entities in public initiatives and that favored by the privatizers of the Right. But then he pirouetted to make common cause with Obama’s critics on the Left:

It is entirely possible for both sets of critics to be correct. The concern from the right isn’t that the Obama approach will literally nationalize for-profit    health insurers. Rather, it is that for-profit health insurers will continue evolving into heavily subsidized firms that function as public utilities, and that seek advantage by gaming the political process. Profits, including profits governed by medical loss ratios, can and will then be cycled into political action, which leads to the anxiety concerning a “corporate takeover of the public sector.”

Salam’s friend Ross Douthat of The New York Times added an “amen” to this argument:

The point is that the more intertwined industry and government become, the harder it is to discern who’s “taking over” whom — and the less it matters, because the taxpayer is taking it on the chin either way.

But do conservatives really oppose this intertwining of industry and government? Rhetorically, yes, operationally — not so much.

Consider the default-drive Republican approach to health care reform, such as it is. It typically begins with federal preemption of state medical malpractice laws and health insurance regulation, the latter intended to produce a national market for private insurance (while also, not coincidentally, eliminating existing state provisions designed to prevent discriminatory practices). But the centerpiece is invariably large federal tax credits, accompanied by killing off the current tax deduction for employer-provided coverage, all designed to massively subsidize the purchase of private health insurance by individuals (with or without, depending on the proposal, any sort of group purchases for high-risk individuals). Another conservative pet rock is federal support for Health Savings Accounts, which encourage healthy people to pay cash for most medical services, perhaps supplemented by (very profitable) private catastrophic insurance policies. And most conservatives, when they aren’t “Medagoguing” Democratic proposals to rein in Medicare costs, favor “voucherizing” Medicare benefits—another gigantic subsidy for private health insurers.

Now some conservatives will privately tell you that all these subsidy-and-deregulation schemes are just an interim “solution” towards that great gettin’ up morning when tax rates can be massively lowered, all the tax credits, vouchers and other subsidies can be eliminated, and the government gets out of the health insurance business entirely. But don’t expect to see that on any campaign manifestos in the foreseeable future. In the meantime, Republicans generally support huge government subsidies to corporations without any public-spirited regulatory concessions in return.

Do anti-“corporatist” progressives really think they can make common cause with conservatives, beyond deep-sixing Obama’s agenda in the short term? Well, sorta kinda. Salon’s Glenn Greenwald, who rejected my “incompatibility” argument about left and right critics of “corporatism” as strongly as did Salam, is smart and honest enough to acknowledge there’s no real common ground with conventional conservatives or Republican pols. He instead offers a vision of an “outsider” coalition that includes anti-corporatist progressives and Tea Party types. This is, of course, the age-old “populist” dream (most famously articulated by Tom Frank inWhat’s the Matter With Kansas?) of a progressive takeover of the Democratic Party that attracts millions of current GOP voters (or nonvoters) who don’t share the economic interests of the Republican Party or the conservative movement but have seen little difference between the two parties.

All I can say is: Good luck with that, Glenn. Short of a complete and immediate revolution within one or both parties, complete with blood purges and electoral chaos, it’s hard to see any vehicle for a left-right “populist” alliance other than a Lou Dobbs presidential run. Barring that unlikely convergence, wrecking Obama’s “corporate” agenda would produce little more on the horizon than a return to the kind of governance we enjoyed during the Bush years, or maybe a bit worse given the current savage trajectory of the GOP.

Part of my intention in the original essay was to suggest that pro-Obama Democrats take seriously the views of intra-party rebels on health care and other issues, instead of insulting them as impractical and childish or obsessed with meaningless totems like the “public option” (which in the anti-corporatist context isn’t meaningless at all). But said rebels really do need to think through where they are going, and where they would take Democrats and the progressive coalition.

Meanwhile, conservatives need to be far less pious about their alleged objections to “corporatism.” Cheap rhetoric aside, their own agenda (when it’s not just preserving the status quo) is largely corporatism with any clear and enforceable public purpose cast aside whenever possible.

This item is cross-posted at The New Republic.

The Improbable Vote

So: at about one o’clock this morning, the United States Senate, or at least the 60 members of its Democratic Caucus, passed the long-awaited cloture vote to proceed to a final consideration of a health care reform bill.

As one who has had an irrational faith that the Senate would get to this point somehow or other, I have to say it was still an improbable accomplishment.

As recently as a few days ago, Joe Lieberman looked all but unreachable for this vote. Then Ben Nelson looked unreachable, even as Republicans Olympia Snowe and Susan Collins made it clear they had decided that nearly a year of begging from the White House and Senate Democrats wasn’t enough to overcome the right-wing heat they were experiencing. Then Democrats like Sherrod Brown and Bernie Sanders came under intense pressure to hold up the bill from progressives determined to derail the latest deal and force a recourse to a 2010 reconciliation strategy.

More fundamentally, a 60-vote Democratic Caucus was an exceptionally improbable achievement. It took (a) a near-sweep by Democrats of winnable seats in 2008; (b) a complex deal to keep arch-apostate Lieberman in the Caucus; (c) a favorable resolution of the near-tie vote in Minnesota after months of GOP legal obstruction; and (d) swift action by the Massachusetts legislature to provide for an interim Senator to replace the late Ted Kennedy.

It all came down to a one a.m. vote after a rare Washington snow storm, with Republicans openly praying that someone (i.e., the infirm Robert Byrd of West Virginia) wouldn’t be physically present.

The current conservative caterwauling about a “rushed” vote is pretty hilarious, given the endless delays undertaken by Senate Democrats all summer and early fall in an effort to engage Republicans, the open and notorious GOP strategy of running out the clock (reminiscent of the Bush strategy for securing the presidency nine years ago), and the front-page status of every detail of the legislation since last spring. Does anyone doubt for a moment that if Democrats had gone along and delayed final Senate action until after the holidays, the same people whining about their spoiled Christmas would be demanding the legislation be put off until after the 2010 elections? Indeed, that’s what we will in fact be hearing in January when a House-Senate conference committee completes its work.

That conference committee, and the House and Senate votes necessary to ratify its report, is far from a slam dunk, given House Democratic resentment of Senate deal-making, and substantive disputes on issues ranging from the public option to abortion. But the struggle to get to 60 votes in the Senate makes the endgame of health care reform look manageable by contrast.

This item is cross-posted at The Democratic Strategist.

Will Liberals Really Kill Health Reform?

The never-ending story of health care reform took another turn for the weird this week.

It began with liberals working themselves into a lather over Sen. Joe Lieberman’s threat to scuttle reform unless the Medicare buy-in was dropped. Now Howard Dean, liberal paladin and former Chairman of the Democratic National Committee, is campaigning openly to kill a Democratic president’s top domestic priority. Vermont’s Sen. Bernie Sanders, the Senate’s sole self-avowed social democrat, warns the White House that he is not a certain vote for health reform, though it’s unlikely that he would cast a vote with the Republicans to filibuster it either.

Liberals believe, perhaps with some justification, that Sen. Lieberman has forced changes in the bill simply to spite them. But it has to be said that Lieberman, at least, makes no pretense of being a party loyalist. He crossed the political Rubicon by appearing at the Republican National Convention in 2008 to endorse his friend John McCain. His decision to caucus with the Democrats is a marriage of convenience, so charges of infidelity seem beside the point.

No good purpose is served by the left’s fixation on Lieberman as a kind of progressive Judas. It’s creepily reminiscent of the orchestrated venom directed against the fictional turncoat “Goldstein” in George Orwell’s 1984.

What prompted Dean’s scream on health reform was the decision by Senate leaders, backed by the White House, to drop both the public option and the Medicare buy-in in pursuit of the 60 votes needed for passage. In a characteristically self-righteous outburst in today’s Washington Post, Dean helpfully accused his fellow Democrats of selling out to the health insurance industry.

The rifts among Democrats, coupled with monolithic Republican opposition to the Senate bill, have fed growing public doubts about health reform. According to a new NBC-Wall Street Journal poll, more Americans oppose the legislation than favor it (44-41 percent). Other surveys show that voters are worried that they’ll actually wind up paying more for health care after reform.

The President’s Principles

Now, liberals are understandably angry that Senate filibuster rules effectively give a handful of moderates inordinate power to block progressive measures backed by a majority of Senate Democrats. That’s triggered an important debate – featured here on P-Fix over whether it’s time for progressives to change those rules to either circumscribe or abolish the filibuster.

But it’s also true that liberals should not have expected that the Senate bill include a public option or the provision allowing people as young as 55 to buy health coverage from Medicare. The Senate Finance Committee bill did not include them and Obama promised neither during the campaign. In fact, the president has explicitly ruled out a single-payer approach, instead echoing PPI’s call for a distinctly American approach to universal health care, a public-private hybrid based on the principle of “shared responsibility.”

Many single-payer advocates, however, apparently view the president’s stance as purely tactical; surely, deep down, he’s with them. They see the public option and the buy-in as incremental steps toward a “Medicare for all” approach that ultimately will displace private health insurance.

Obama, however, has been admirably consistent about his top-line goals: expand coverage through public subsidies and mandates; prevent insurance companies from denying coverage or dropping people who get sick; drive medicine toward higher quality and lower costs; and do it all in a way that adds nothing to the deficit. The Senate bill, though riddled with imperfections and compromises, does an acceptable job of advancing those goals and moving the process forward to the final stage: a conference to reconcile House and Senate versions of reform.

So liberals have a choice. They can torpedo a bill backed by a Democratic president and nearly all Senate Democrats, a bill that would cover 30 million uninsured Americans, discipline health insurance companies, and begin the challenging task of containing health care cost growth, in favor of alternatives that stand no chance at all of passage. Or they can pocket the undoubted progressive gains embedded in the House and Senate bills, help their party pass landmark legislation, and keep working to build support in the country for their vision of health reform. Congress meets every year and there will be ample opportunities to refine whatever emerges from today’s legislative scrum.

Despite the public infighting and fratricidal rending of garments, congressional Democrats are only one vote away from an historic victory on health care reform. So progressives should stop obsessing over Joe Lieberman, turn off Howard Dean, and help Barack Obama bring home the prize.