The much talked-about health care summit between President Obama and Republicans occurred yesterday. Nearly 40 lawmakers attended the summit at the Blair House that lasted more than 7 ½ hours.
President Obama called this meeting in hopes that Congress can focus on where they agree and rectify their differences.
The conclusion? Lawmakers are back where the started. No consensus was reached and neither party budged on the issue. Despite this, both Democrats and Republicans walked away from the summit convinced that they now have the upper hand. Any idea of a compromise is gone.
During the meeting, John McCain called out the President on his campaign promise to carry all talks on C-SPAN. The President retorted by saying that they are no longer in a run for the Presidency, which is a response that was a bit too harsh considering that John McCain hit the nail on the head. So far, most of the health care reform debates and discussions have been behind closed doors and have included lots of backroom deals.
The Republicans aren’t happy about this and even during the summit, insisted on starting over on a new bill but haven’t offered up an alternative plan to insure Americans. Democrats have no intention of scrapping the current bill. They insisted the current plan was too costly, but President Obama used evidence from the CBO saying that it would lower premiums for the public.
Much of the time was spent attacking the insurance industry. The President proposed more comprehensive plans and attacked catastrophic plans. He’s looking for plans that would offer more but a one-size-fits-all approach doesn’t work. Catastrophic plans are good alternatives for 20- and 30-somethings who don’t get sick often but need a plan just in case of a major illness or accident. They wouldn’t want to be forced to pay a higher premium for a plan they would barely use. On the flip side, an older person wouldn’t benefit from a catastrophic plan and wants something more comprehensive to take care of their needs. The President is looking to get rid of one option that doesn’t work for everyone, in exchange for another plan that doesn’t work for everyone.
After the meeting, Democrats still feel nervous about getting legislation passed. They feel a sense of urgency and are aiming to get the deal done by the end of March before Congress’ Easter break, when focus could shift again. So far, reconciliation is not being considered but as it gets closer to the end of March, Democrats may consider this tactic to pass a watered-down version of their bill.
The meeting proved to be unfruitful and through yesterday’s whole process, the reason behind the whole health care reform policy debate hasn’t been fully considered – the patient.
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Attacking insurance companies
Attacking insurance companies and blaming them for the high cost of health care is like blaming the waiter for the cost of a meal. The waiter doesn't create the cost, he or she simply provides a service, and presents you with a check for the cost of your meal. Insurance companies don't create costs. That is done by providers....doctors, hospitals, labs, imaging centers, etc...Much like a waiter, insurance companies simply present you with a bill for those services. However, unlike waiters, insurance companies arrange for us to pay wholesale or negotiated rates, for the charges. Insurance companies also allow us to pay off those charges in installments (monthly premiums) instead of paying all at once. And they make about a whopping 2% -3% profit, much less than the 20% waiters get.
So if politicians are serious about reducing the cost of care, maybe they should focus more on the folks who generate the charges, or people who affect the cost of care. How about getting serious about Tort Reform? Why not get that piece of low hanging fruit? Providers are forced to run unnecessary lab work, take unnecessary images, and practice defensive medicine just for fear of a lawsuit. Malpractice premiums are driving some specialist out of business. Tort Reform won't dramatically reduce costs, but it's an easy way to start, won't cost anything, won't tax anyone, and won't need a federal bureaucracy to monitor it. The CBO estimates savings of $54 to $75 billion in premium savings alone. That does not include the additional money saved by reducing defensive medicine which the AMA says 93% of physicians are practicing. Some physician estimates put the total savings at $200 billion. That number may be optimistic, but in any event there are significant savings. And as I said earlier, it’s easy to do, doesn’t cost anything, doesn’t tax anyone, and won’t require a federal bureaucracy to administer it. No wonder politicians don’t want to do it!
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