One thing that has been eating away at me throughout this whole health care debate is the incredible hypocrisy and role reversal of both political parties compared to the Medicare Part D debate. The basic, highly corrupt design of the Senate health care bill is the same as the highly corrupt design as the Medicare Part D program.
Just think about the similarities. Both were meant to address serious problems—for the Medicare drug program, seniors unable to afford life-saving medication, and, with today’s legislation, people unable to afford health insurance. And, in both cases, instead of solving the problem in the cheapest, most direct way by having Medicare just provide these groups with what they need, a wasteful, convoluted, “market” system was created to use the program to enrich industry players and unneeded middlemen.
Medicare Part D
In Medicare Part D, seniors must select a private health insurance plan on an exchange to provide them with prescription drug coverage. This allows the drug makers to get away with charging higher prices than if the government directly negotiated for the medications, and enriches completely unnecessary private health insurance middlemen. The system heavily subsidizes both industries in this wasteful structure, costing taxpayer’s billions.
The marketplace is poorly regulated, and the choice of plans is incredibly confusing. The bill did not allow for proven cost-savers like drug re-importation or a “public alternative” by having Medicare directly negotiate for drug prices.
The Senate health care bill
In today’s Senate bill, regular people will be forced to select a private health insurance plan on poorly regulated exchanges with a confusing array of packages. This will allow care providers, hospitals, and drug makers to get away with charging much higher prices than if the government directly provided the insurance through Medicare, and enriches completely unnecessary private health insurance middlemen. The system will heavily subsidize the health care industries in this incredibly wasteful structure, costing taxpayer’s hundreds of billions of dollars.
Don’t forget Billy Tauzin
One of the biggest complaints Democrats had about Medicare Part D was the influence then Republican Rep. Billy Tauzin had in writing the bill. He worked with the drug lobby (PhRMA) to make sure the bill existed primarily as a massive giveaway the drug industry by keeping out drug re-importation and Medicare direct drug price negotiations. The lack of these two provisions until recently were the two big complaints Democrats had about Medicare part D, and a big part of why almost every Democrat said they voted against the bil. The promise to fix these two problems featured prominently in Barack Obama’s presidential campaign.
Guess what? Billy Tauzin, this time in his role as head lobbyist for PhRMA, had a huge role in writing this Senate health care bill. He again assured the bill would be a massive giveaway to drug companies by cutting a secret, backroom deal with Obama to keep out drug re-importation and direct Medicare price negotiation. In addition, this time, Tauzin also won another big giveaway to the brand name drug makers by securing an extremely long exclusivity period for biologic drugs.
So similar, the two programs could be twins
If there is a real policy or ideological difference between the design of the two programs, I fail to see it. Both use corrupt, poorly designed exchanges (which have been proven to not control costs) that make people choose only among a small assortment of wasteful, private health insurance policies. Both programs would actually do some small amount of social good (help some senior citizens afford medication then, and help some regular Americans afford insurance now), but at the huge cost of using a shockingly wasteful setup, which will cost taxpayers and participants something like 20-60% more than it should if done with a simple, straightforward public program. Both programs also just further enrich, empower, and entrench the private health insurance industry, making real reform even harder in the future.
What I don’t understand is how so much of the media will let Republicans pretend to have some ideological problem with a health care bill of basically the same design as the Medicare Part D setup that they created. What I also can’t understand is how “liberal” organizations can now tell Democrats in Congress that they must vote for a health care bill that contains all the same terribly corrupt problems they rallied against when they tried to take down Medicare Part D.
Why was it great when progressives in Congress voted against Medicare Part D, but they are now being called monsters for objecting to the Senate health care bill on the exact same policy grounds? I suspect this sort of inconsistency plays a large part in the cynicism most American’s feel with regards to Congress and national governance, in general.




45 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL Action
Its the influence peddlers from K-street stomping the halls and back rooms of the Congress and the Senate where they once occupied a seat. Cut the special intrest money and the legislators may start doing the peoples business again instead of just throwing us a bone now and then. The S.I. money has to go.
Gee, maybe all Corporatist think alike? Whether D or R after their names?
The political class is united behind “corporatism” as such. All we have are the people, and the duty and obligation to throw the bums out.
Don’t you mean the Senate Health Insurance Company Welfare Program Bill? Let’s call it what it is. I’m tired of political euphemisms that make things sound better than they are.
First Tauzin was a Dem then he became a Rep then he outed himself as a lobbyist and all he does is write the bills to benefit only the corporations.
And then they fired him.
Obama is the Democrats’ very own Billy Tauzin on Health Insurance Reform, and that somehow makes all the fucking difference in terms of outcome. Take it on faith, otherwise you won’t be able to get behind this atrocity.
“I suspect this sort of inconsistency plays a large part in the cynicism most American’s feel with regards to Congress and national governance, in general. ; Jon, you no longer have to suspect; it is a fact.
The Democrats are desperate to pass anything that has the word “Health” in the title. Its content and effect don’t make a damn to them.
I thought I’d post something about this over at DailyKos, since I saw Markos on Countdown blasting Kucinich as a Naderite which by transfer makes him equal to 8 years of Bush, etc etc. I was amazed that Lawrence O’Donnell let him get away with that without challenge, but it seems as if that’s what the Democrats have dumbed the discussion down to. You are either for the bill or you are against US, the Free World, and humanity in general.
Poppycock.
-Wexler
Thanks Jon.
Always like remembering that Tauzin was a D before he was a R. At least he was more honest than the current set of Ds, who don’t have the nerve to declare.
or, to put it another way
SEIU is not threatening to run hopeless third party candidates against Democrats in toss up districts if they vote against reform and some how Dennis is the Naderite.
Oh dear, I posted before reading the comments. Whatcha drinkin’?
Bidness creates jobs, dontcha know. /s
I was amazed that Lawrence O’Donnell let him get away with that without challenge
I wasn’t. Not after O’Donnell gave Ken Starr everything but a blow job the night before. Haven’t watched since Markos deliberately mispronounced Kucinich’s name. Next time you see or hear him ranting about how the Republicans use “Democrat Party” as a pejorative, remember that Markos does the very same thing. Finished with Countdown and Daily Kos in one, fell swoop.
I’ll take a “Fake Codder” (cranberry juice, soda water and a twist of lime)
Edit: I just like that they fired Tauzin’s a** a few weeks ago.
I couldn’t watch the Starr interview. I have low cringe-factor tolerance.
Comin’ your way.
On the firing, what do we know about it, if anything? What’s the back story?
IIRC, it was when the rumblings were going ’round that reconciliation would allow the Dems to trash the deals (plus I think some corporate types are probably skeptical of dems as their friends because they’ve bought into the myths over the years.)
A point being left out is that the uninsured pay a much higher cost in both health care and in medication than someone having health insurance. Do I think there should be a public option? Sure. Should the government have forced the drug companies to negotiate as the VA does? Sure. But the fact remains, the costs of many, many drugs have come down markedly since Medicare D was passed; seniors major objection to it is the do nut hole.
OK, time to start complaining about Dodd’s bill!
A quick google revealed:
Link?
I don’t have a link, but I have a partial list. Let us start with commonly used blood pressure medications: benzepril, atenol, amlodipine, an ace inhibitor, beta blocker, and calcium channel blocker respectively. Cost? $4 monthly at Sam’s. Levothyroxine, the most widely used thyroid medication; a three month supply is $14. Ativan—can’t think of its generic–, and oxazepem, both widely used minor tranquelizer, $15 monthly. Zolipderm—generic Ambien $12 monthly. Prednisone, standard course for joint inflammation $25. Amoxicillin, standard ten day dosage, $4.
It is also worth noting that most of the cost of care for most nursing home residents is paid for by Medicaid, and within that, Medicaid requires in most instances only the lower cost generics can be used if one is available.
With medicare part D, it was the Republican hogs that got to line up at the money trough. Now the democratic hogs want their turn.
They’d rather just be misers. See my diary now crossposted here.
So is your claim that Medicare Part D was good and Democrats were stupid at the time to vote against it?
It was a flawed lesser of evils. I don’t think anywhere near the attention needed was payed to the cost of health care in general at the time Medicare D was passed.
Further, the use of very costly medications were not near as fashionable at that time, as they are now, which would include Aricept, Seroquel, Risperdal, Namenda, Excelon, Abilify, Lexapro, Celexa, and so on.
I respect the honest. I wish actual “liberal” groups would come out and say they are sorry for telling members of Congress to vote against Medicare Part D.
Thanks for pointing this out. Just another example of why these HCR bills suck, and how absurd and disingenuous the process has been. How could any rational person imagine attempting to reduce health care costs without fixing these issues? And you could throw in the anti-trust exemption as well.
But this is a political process, with competing interests, ideologies and agendas. Yes, a camel is a horse made by a committee and it will never win the Triple-crown. But sometimes speed is not what is most important. The fact is, at this juncture, we don’t know what is finally going to be in the bill. I am still hoping for a public option.
What I do know is, that I pay $930 monthly–one quarter of my gross income–for a high deductible BC/BS product for health insurance for me and my three children. I can afford to to so only because my house is paid for, and I make a decent living–I provide psychological services to elderly folk in nursing homes.
Last year, when my daughter had an emergency appendectomy, the cost for the 23 hours in the hospital was $16,000. Had it not been for the negotiated BC/BS rate, it would have been $25,000.
The Preamble to the Constitution refers to promoting the general welfare; what better way to promote the general welfare than health care being available to all?
I’ve been thinking the same thing from the start. I remember a Paul Krugman column from 2007 where he pointed out that Medicare Part D was a step toward destroying Medicare. I can’t find the NYT link but Free Democracy has a copy at http://freedemocracy.blogspot.com/2007/04/paul-krugman-plot-against-medicare.html. The main points, after failing to gut Social Security, the Repubs turned to Medicare:
“The 2003 Medicare legislation created Part D, the drug benefit for seniors — but unlike the rest of Medicare, Part D isn’t provided directly by the government. Instead, you can get it only through a private drug plan, provided by an insurance company. At the same time, the bill sharply increased payments to Medicare Advantage plans, which also funnel Medicare funds through insurance companies.
“As a result, Medicare — originally a system in which the government paid people’s medical bills — is becoming, instead, a system in which the government pays the insurance industry to provide coverage. And a lot of the money never makes it to the people Medicare is supposed to help….
“Meanwhile, those Medicare Advantage plans cost taxpayers 12 percent more per recipient than standard Medicare. In the next five years that subsidy will cost more than $50 billion — about what it would cost to provide all children in America with health insurance. Some of that $50 billion will be passed on to seniors in extra benefits, but a lot of it will go to overhead, marketing expenses and profits…
“Public opinion is strongly in favor of universal health care…. Yet even as we talk about guaranteeing insurance to all, privatization is undermining Medicare — and people who should know better are aiding and abetting the process.”
Not only is HRC a bad bill, I fear it is a stalking horse for gutting Medicare and Social Security (when the HRC subsidies become unsustainable). I don’t understand why Krugman changed his tune and why so many progressives are on the pass the bill bandwagon. Apologies for the long post.
You have to understand that Medicare Advantage, Humana as well, operate as HMOs (which are evil)and they need to be done away with. Traditional, government run Medicare is efficient, though the reimbursement sucks compared to commercial insurance. That does not mean a health care provider, such as myself, can’t make a decent living providing services to Medicare recipients.
“But the fact remains, the costs of many, many drugs have come down markedly since Medicare D was passed” Do u have any idea what those costs are relative to for example what people getting them from the VA plan is? You’d be shocked if u did. Its all relative and relative to what we could have had if our Gov’t wasn’t owned by these same companies is a fraction of what were being charged. I’m not in the group that is thankful that our corrupt political system never fails to rip us off and then tries to tell us they’re doing us a favor. People all over the Planet are paying fractions of what we are paying for drugs made here and worse subsidized by us the US taxpayers and then sold offshore at greatly reduced prices, all because our Pols are crooks and liars.
“That does not mean a health care provider, such as myself, can’t make a decent living providing services to Medicare recipients.” Then its just a matter of price isn’t it? If we cut out the middleman ( the Ins. Industry) and put the Gov’t in the middle representing all of us we IMO could easily afford to pay the providers more then a decent living and still provide everyone good basic care. Do you agree?
I think you would find the costs of those drugs I listed above are pretty comparable to what you would find in Canada or Mexico. Without doubt we are paying too much for many of the drugs we need; that doesn’t mean Medicare D did not help drive down the price of a whole bunch of commonly used drugs.
Fine, if you want to write off all politicians as crooks and liars, than you want to write them all off as crooks and liars. Seems to me that is a good prescription for despair–and inaction.
why? because now a Dem president seeks a “win”. It’s not about policy, that’s for damn sure! cuz the Senate bill stinks.
The point of the column was that for the first time govt was paying private companies to perform Medicare functions, accelerating Medicare’s insolvency. The HRC is Medicare Part D on steroids. No matter how much HRC increases Medicaid and subsidizes low-income families, health care costs will continue to grow, and not necessarily provide the services we think we’re paying for. It mandates a middle man when the solution is just the opposite–to get rid of the middle man (i.e., insurance companies).
One the whole, yes, I agree, which is why I am so strongly in favor of a single-payer system.
Could a single-payer system survive the withering attacks it would incur from the Right? I don’t know; but I understand the politics of not wanting to take that risk by Democrats. Do I think they should have? Of course.
The political process is wholly corrupted by corporate money and the lobbyists that do their bidding and actually write the legislation. That’s just an undeniable fact. I’m sorry but the process has been rigged for decades. If you’re buying into this and think that something good will come of HCR for middle-class Americans then you’re part of the problem.
I agree with your sentiments; but, the last I knew, the benefits associated with the Medicare HMOs would be eliminated; yes, there would be mandated care, including the middleman, the insurance companies. But it would still be movement in the right direction. See, the Republicans are correct; HCR is a foot in the door for the single-payer, government run health insurance. That is why they are fighting so determinedly against it.
So, your solution is to throw-up our hands and sing Kumbya? That helps, in exactly what way? OK, the system is corrupted yadda, yadda and therefore what? It is the system we have and as such the system we have to deal with. And, therefore, we have to put our efforts toward what we can do.
There is another issue here, and that is too see corporations as all working in sync with one another. Seems to me, in many situations, they work against one another. The coal industry is working hard to marginalize wind and natural gas, never mind nuclear energy. All of these provide chinks in the armor to be exploited. On a different thread, I suggested buying a stock whose practices you detest. Why? Because it gives you a place at the table at a stockholder’s meeting. It gives you a voice. Pissing in the wind? Perhaps. Better than moaning about being helpless.
Jon, thank you so much. I was able to drop the url and whole parts of your post unedited into the comments section at the Milwaukee Journal Sentinel:
Dueling petitions on health care flood Moore’s office
Unfortunately a lot of people think Obama care is the best answer. Your great reporting in an economical and very clear way helps them to see that it is not.
Well said, thank you.
Then stop paying your federal income taxes.
If you are filing and PAYING your federal income taxes, you need to donate more aggressively to FDL, who has taught you how much corporations control the process.
I guess you’ll have to take that up with Markos and those who the somewhere around 400 blistering, vile comments I took for my “diary”.
I was going to go over there and update it with a post about Michael Moore being on Keith Olbermann for the second time in a week saying that not only is the bill a POS, it’s also not worth voting for, he supports Dennis K. 100% and if HE was in Congress he would not vote for except in one circumstance. That would be if Obama would go on national TV and explain the shortcomings of the bill, how it leaves millions uninsured, how the fines for recission are laughable, how there are no price controls for insurance companies, how “pre-existing conditions” can still be used to rate people for the next FOUR YEARS, and so on, all the crap that the spineless Democrats took out/put in the bill for reasons that escape and exasperate the reasonable.
Last summer I was telling people that we can have whatever health care we are willing to fight for. Fighting, to me, means willing to get out of your slacktavist mode and into the friggin’ streets. I tried. I really did, I tried Twitter, I tried my own website, I even tried to hook up with PNHP and the local Greens.
Both my wife and I will be on Medicare in the next 18 months, assuming this bill doesn’t kill that, too. I feel dreadfully sorry for those who will remain in the same place we are today, namely, in the private market paying $1000/month for crummy insurance with high deductibles and copays.
What frightens me the most is that this bill isn’t going to work, and it will provide ammo for the GOP/TeaBaggers to say “See, we told you a government takeover wouldn’t work and it doesn’t.” So will this get improved as Sherrod Brown suggested on Maddow tonight? NO. It will be thrown out, and our national experiment to fix health care will be over.
However, the problems that it was supposed to fix won’t go away, passed, un-passed, non-passed, or shit-canned. The problems are real, and the first order of business to fix them is to declare that seeing a doctor when you get sick is a birthright of American citizens. The ultimate fix may be as simple as HR 676, I believe it is. Whatever the solution, there is no room in it for fat cat salaries and accounting slight-of-hand tricks to move risk around into groups of people like ME who have no legal resource to fight back. Oh, and no room for profits on sickness. This is one place where the public needs to invest money for the good of all.