When I examine any “plan” to reduce the national debt I always go straight to the section on health care, and not just because I’m an expert on health care reform. As you can clearly see from this graph from the CBO, our long-term deficit problem is almost exclusively a health care cost problem.
Any deficit reduction plan that is not focused mostly on reforming health care is simply not serious about fixing the true roots of our long-term deficit. Looking at our health care costs compared to the rest of the industrialized world, we see it is possible to completely eliminate our deficit solely by reforming our health care system to bring its costs in line with the rest of the first world.
There is clearly the potential for massive savings in health care spending. But looking at the Catfood Commission non-report (which Alan Simpson and Erskine Bowles falsely call the “report”–falsely because it can’t get the mandated 14 votes), I’m highly disappointed. The non-report finds only relatively very small savings in health care and their biggest solution is to save $110 billion over ten years by cutting Medicare, forcing seniors to pay more out-of-pocket and face higher co-pays. This a very regressive policy and likely politically quite toxic, as well, but it doesn’t even save more money than popular reforms like a strong public option within the health care exchanges.
Most of the so-called long-term health care savings in the non-report come from saying a future Congress and the President should really try to figure out a way to reduce health care costs if they keep growing after 2020. From the report:
The Commission recommends setting up a process for reviewing total federal health care spending – including Medicare, Medicaid, the Children’s Health Insurance Program, FEHB, TRICARE, the exchange subsidies, and the cost of the tax exclusion for health care – starting in 2020, with the target of holding growth to GDP plus 1 percent and requiring action by the President and Congress if growth exceeds the targets.
What this means is that their magic solution to projected future health care cost increases is just to tell the people of the future they should come up with a solution. Brilliant!
In an almost comical passage, the proposal does acknowledge that there exist reforms that would really reduce federal health care spending, such as a robust public option or all-payer, but the commission says they shouldn’t be implement until maybe 2020, and only if the spending grows as projected. The deficit commission is actually saying we should wait for the deficit to get worse before looking at solutions. Telling people in the future they will need to figure something out is not “making the tough choices”–or a solution–it is just kicking the can down the road.
This graph in the Simpson-Bowles deficit proposal is a lie:

Cat food commission chart
This graph, which Simpson and Bowles use to show how great their proposal is for the long-term deficit, is at best a fantasy, and at worst a lie. The trend line only looks good because they assume that someone in the future will deal with health care in a way the commission was too cowardly to deal with today. By that same logic, my super-awesome deficit proposal would work even better. It just tells Congress, starting in 2018, to find something to make the deficit zero. Problem solved!




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That’s because the catfood commission isn’t about “deficits”, it’s about gutting social security. If it was about deficits, then social security would have never even been brought up since the two are unrelated. You might as well try to put out a house fire in Chicago by flooding Moscow.
“What this means is that their magic solution to projected future health care cost increases is just to tell the people of the future they should come up with a solution. Brilliant!”
Oh for God’s sake! Why can’t they do the same for social security and medicare?
Actually, they are just trying to convince the citizenry they know better than us, and we need to give it all up for the rich folks and wars.
Any sane discussion about reducing deficits should start with single payer, letting tax cuts for the wealthy expire and bringing home all the military, bases, etc.
We need jobs creation ahead of anything. People could be put to work creating and installing alternative energy sources (has the added benefit of reducing our costs to go to war for oil) and also rebuilding our crumbling infrastructure.
Have Simpson and Bowles been put back in their cages yet?
Timmeh gets to negotiate the tax cuts. Obama thinks wall street wiz will be smart enough to take care of the tax cut scenario for Americans vs. Elites!
See! Once again, those people know more about whats best for us. Yep.
They gut Medicare by turning it into the sucky high deductible insurance which they plan to sell in the health exchanges in 2014. They have to rip people off if they want to balance the books because they refuse to regulate prices for healthcare and to offer us universal coverage. Until then we will get systematically ripped off. At least you recognize as does Dean Baker, that healthcare is the real threat to future deficit spending.
Exactly! I’m beginning to think Congress can’t do anything at all. Might as well put all the issues on ballots and let us vote.
Hospitals and doctors account for over 50% of health care costs.
“Let them eat cake” (raised to the power of infinity)
Please don’t leave Pharma out. My mother had to pay 48 bucks for a motrin the last stint she had in the hospital. Or, I should say—Medicare had to pay that.
has OFA put out the word to back them yet ?
Absolutely! Why do you think Obama picked Geithner to negotiate tax cuts? Congress is supposed be doing that. Is this another selected commission to knock out the power of Congress and Citizens?
Yep. One of my ‘scrips in the good ole USA = $324.00 per month. Identical ‘scrip in Canada = $14.99. Why? Because there is a law on the books that requires the government to negotiate drug prices there. The same law that Mr. Bipartisan “negotiated” away before the great “HCR Reform” debate even began. Needless to say, I haven’t been able to fill it in almost 2 years. Best healthcare in the world? Sure but only for those who can afford it.
Is that passage going to be the subject of another post, Jon?
Of course it is. Timmeh will negotiate everything away in the name of “bipartisanship” while Obama simpers about how he hasn’t been bipartisan enough to date.
Yet we can GIVE other istan countries money to cover all their citizens under Universal Health Care!
Stop voting for Democrats. (You should have already stopped voting for Republicans.) End the 2-Party fiction in the next election!
californiaonecare.org
It’s happening now, not some pie in the sky future.
How sure of this are you, and why? From Jane’s earlier livestream:
That doesn’t look like a clear fail to me; there are only two committed NO votes, and only two more LEAN-NO votes. I know you’ve posted earlier, questioning whether the report can even get a majority, but could you please update with exactly who you think the NO votes will now come from?
It was required to by charter report today. So technically it got zero votes.
I agree with that, but in terms of the way they (and the mainstream media) will report the votes, where do you get four NO votes?
BTW, I said you had posted earlier on this – I may have been confusing David Dayen’s posts with yours – my apologies if so.
Margaret, Customs is actually pretty good about this. As long as you bring i a 3 month supply or less, you shouldn’t have any trouble having it mailed from a foreign pharmacy (obviously if its a controlled substance, you’ll want your doc’s prescription handy in case the federales want to check up on you).
What’s a pain in the ass is that Medicare doesn’t have to negotiate anything to cut drug costs at least by half. Congress can simply authorize Medicare to utilize the FSS and Big4 prices that the VA has already negotiated.
http://www.pbm.va.gov/DrugPharmaceuticalPrices.aspx
There is no reason short of public corruption to explain why Congress didn’t simply improve and expand Medicare to cover everyone instead of injecting Miracle-Gro into the tumor (which doesn’t even make sense from the tumor’s perspective, its plant food for Christ’s sake). :o)
Zero & Rahm’s Health Care Non-Reform Scam Catastrophe will enable the bankruptcy of our country.
The had a chance to fix it, and they took the payola from Big Insurance and Big Pharma instead.
Corrupt criminals of the highest order.
Tens if not hundreds of millions of Americans will suffer as a result.
To give credit where credit is due, Grover Norquist gave the commission the kiss of death when Americans for Tax Reform scored the bill as a tax increase. Once that happened, the no new taxes pledge doomed the bill from getting any Republican support (the only GOP officeholder who voted yes was Gregg and he retires in a month).
http://www.huffingtonpost.com/2010/11/19/alan-simpson-grover-norqu_n_785932.html
Good news for the President, Norquist gets to humiliate him again in the near future. No Republican is going to compromise on the Bush tax cuts because ATR will score anything short of full extension as a tax increase too. Frankly, the WH dropped the ball terribly here. Months ago they should have either publicly announced they wanted to extend the Bush tax cuts because of the recession or, in the alternative, quietly negotiated with Norquist and his allies (before it became another, err, Waterloo issue). Let’s say, by trading the expiring Bush tax cuts for a permanent dollar for dollar cut in payroll taxes, which would be far more progressive because FICA starts at dollar one of income and SS doesn’t even tax income above $106k.
I dunno, maybe Norquist and company would have said no deal in any event, but the sooner the WH realized no compromise was possible the better. Like the song says, hell is truth learned too late.
Has anyone read the Shock Doctrine?
“One way or another I’m gonna find ya
I’m gonna getcha getcha getcha getcha”
http://www.youtube.com/watch?v=KXewIR7Y7cc
Thanks, Elliot!
Brilliant analogy. Good work.