Bush Hikes Taxes, Edwards Ducks Reform--Today's SinglePayer Update

Twice in two months, George Bush has proposed raising taxes.  Each time it was to pay off his corporate healthcare donors and forestall reform in the healthcare sector--and each time the media barely noticed the hypocrisy.  Just how bizarre is that?  The other big news for SinglePayer advocates today is John Edwards' disappointing healthcare plan.  He was said to consider the SinglePayer systems that work well in every other developed nation--but he just couldn't do it.  Elsewhere, columnist David Broder expects big healthcare changes with the next President, drug companies are ripping off old people, the healthcare reform plans in MA and CA run into more trouble, and nurses continue their push for better healthcare.

Brought to you by the National Nurses Organizing Committee as we organize to make 2007 the Year of SinglePayer Healthcare.

Can a story be hidden in the Sunday New York Times?  Well, George Bush's latest tax increase was.  Robert Pear writes:

Budget documents show that Mr. Bush will propose a similar surcharge on premiums for Medicare's new prescription drug benefit. In addition, the president will ask Congress to "eliminate annual indexing of income thresholds," so that more people would eventually have to pay the higher premiums.

Bush last month proposed a tax on employer healthcare benefits; this month he is proposing a tax of Medicare prescription drug benefits, and moving to eventually extent the tax on Medicare from just upper-income individuals to those with middle-incomes.

There may or may not be arguments for indexing benefits--but not like this.  Bush is proposing to cut $100 billion from Medicare and Medicaid over the next 5 years.  These are among the most popular federal programs, and Americans say they want them expanded not contracted.  

Before Bush leaves office he apparently has a goal of gutting America's public health system AND of undermining the universal appeal of Medicare.  This fits with an ideologiy dedicated to protecting profits for insuers and other private drug companies at all expense.  The first casualty?  Public hospitals in big cities. Who needs emergency rooms, anyway?

As noted around the Web, John Edwards became the first major Presidential candidate to announce the details of his healthcare plan--and they are hugely disappointing for SinglePayer advocates.  Edwards' plan appears to cut and paste whole portions of the plan recently proposed by Gov. Arnold Schwarzenegger: "pay or play" mandates for employers (meaning cover your employees or pay up), "individual mandates" (requiring individuals to buy health insurance), some more money to Medicaid and children's programs, some tax changes, and some regulations on insurance companies.  

The only thing new here is his proposal for "Health Markets," which appear to be non-profit brokers that will allow individuals to purchase either a new basic Medicare plan or a private plan.  What's the upshot of this?:

A professor at Cornell's Weill Medical College who also supports single-payer insurance, Oliver Fein, said having a government plan compete with privately-run insurers could lead to significant problems. "The private insurance companies are likely to cherry pick in that setting to try to get healthy people to enroll with them and leave the really sick in the single-payer or government program," he said.."

Strangely enough, here's how The Raleigh News & Observier covered it:

Over time, Edwards said, this system might evolve into a single-payer approach if businesses and individuals prefer the government program.

If Dr. Fein's analysis is correct, though, the Medicare programs will be saddled with worse cases and have to offer higher rates as a result.  If so, this would hurt the drive for SinglePayer healthcare, while protecting the profits of the big insurance corporations that are giving us so much grief.  We have the plan from Mr. Edwards--now we await the explanation.

Elsewhere, David Broder suggests that the next President will preside over major changes in the healthcare sector, and notes that:

Both the Massachusetts and California plans step away from the 65-year-old pattern of tying health insurance to the place of employment, a historical oddity now visibly failing in this far more mobile society. Instead, these plans require every individual to purchase health insurance, with subsidies as needed to be financed by government, business and, in Schwarzenegger's plan, hospitals and doctors.

In California, Schwarzenegger plans to make insurance affordable for everyone...just don't have eye or dental problems, okay? Massachusetts might get around this problem with barebones "buy or die" plans, Medicaid is getting squeezed out, and
drug companies are reneging on their promise to assist needy seniors with their drug needs.

And finally, why aren't we further along in our drive for universal healthcare with a single standard of coverage, asksNNOC/CNA executive director Rose Ann DeMoro in a Florida Sun-Sentinal op-ed:

The 20 largest HMOs in the U.S., for example, made $10.8 billion in profits in 2005, and UnitedHealth Group alone just posted $1.2 billion in profits for the last quarter of 2006. Drug companies make even more; the world's 13 biggest reported $62 billion in profits in 2004.

Health care corporations have effectively used their economic clout to block real reform both in Washington and in state capitols, becoming the largest spenders on lobbying and setting up a parade of people who rotate back and forth from administration posts and congressional offices to the corporate boardrooms.

If you want to join the fight for single-payer healthcare, sign up with SinglePayer.com, a project of the National Nurses Organizing Committee.  You can share your story about surviving the healthcare industry here, and start contacting media here.



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where does political reality fit into this? (none / 0)

going from a broken system to complete single payer seems Don Quixote like..

Just look at how many of the pundits on TV right now are saying John Edwards will raise your taxes to pay for healthcare.  Single payer in the short term is  even more expensive.


Call it "Medicare Option" not public option
by TarHeel on Mon Feb 05, 2007 at 06:24:06 PM EST

Re: where does political reality fit into this? (none / 0)

"going from a broken system to complete single payer seems Don Quixote like."

Not going to single payer is Sancho Panza like.

Going to single payer is actually very easy, everybody is signed up for Medicare, doctors have to have 75% of their patients Medicare insurance, fees paid to doctors and hospitals go up to actually cover costs/plus so doctors and hospitals don't the brunt of funding the system.

We know that saves US 20% of current total health care costs since Medicare overhead is 5% vs. 25% for private insurance corporations.


by BrionLutz on Mon Feb 05, 2007 at 06:47:24 PM EST
[ Parent ]

Re: where does political reality fit into this? (3.00 / 0)

I think that the Ameerican public a) hates health insurance companies and b)would love to have Medicare modernized and expanded to guarantee universal coverage with a single standard of care.  That's the political reality as i see...not even factoring in the fact that health reform plans that carve out a role for private insurance are likely to make the situation worse.


Join the California Nurses Association/National Nurses Organizing Committee to fight for guaranteed, single-payer healthcare: www.GuaranteedHealthcare.org/blog
by California Nurses Shum on Mon Feb 05, 2007 at 07:12:37 PM EST
[ Parent ]

Re: where does political reality fit into this? (none / 0)

Sorry guys, usually I like your analysis, but your characterization of Edwards's plan was bogus.

"The only thing new here is his proposal for "Health Markets," which appear to be non-profit brokers that will allow individuals to purchase either a new basic Medicare plan or a private plan.  What's the upshot of this?:

   A professor at Cornell's Weill Medical College who also supports single-payer insurance, Oliver Fein, said having a government plan compete with privately-run insurers could lead to significant problems. "The private insurance companies are likely to cherry pick in that setting to try to get healthy people to enroll with them and leave the really sick in the single-payer or government program," he said.."

Strangely enough, here's how The Raleigh News & Observier covered it:

   Over time, Edwards said, this system might evolve into a single-payer approach if businesses and individuals prefer the government program.

If Dr. Fein's analysis is correct, though, the Medicare programs will be saddled with worse cases and have to offer higher rates as a result.  If so, this would hurt the drive for SinglePayer healthcare, while protecting the profits of the big insurance corporations that are giving us so much grief.  We have the plan from Mr. Edwards--now we await the explanation."

The main thing is that you forgot to mention that insurance comanies would be required to cover all people regardless of age or preexisting conditions.

There's this for instance,
"All plans will include comprehensive benefits, including full mental health benefits."

And then there's this.
"Require Fair Terms for Health Insurance: Edwards will require insurers to keep plans open to
everyone and charge fair premiums, regardless of preexisting conditions, medical history, age, job,
and other characteristics. No longer will insurance companies be able to game the system to cover only healthy people. Several states - including New Jersey, New York, and Washington - have led the way on similar community rating and guaranteed issue reforms. In addition, new national standards will ensure that all health insurance policies offer preventive and chronic care with minimal cost-sharing."

Ok, so did you or your expert even read the plan all the way through? I understand if it's not exactly what we want as far as Medicare for all. But it provides a good mechanism to get to Medicare for all. It isn't ironic that the N&O describes it as a transition to single-payer, because that's what it is!

Read the plan all the way through before you trash it.


by adamterando on Tue Feb 06, 2007 at 07:40:29 AM EST
[ Parent ]

John Edwards, once again, providing Leadership (none / 0)

John Edwards is taking the lead on another contraversial issue. I'm all for single payer health care, and I see his proposal as the first realistic proposal, by any candidate, for a systemic change that would provide health care for everyone while building practical mechanisms for the transformation to a single payer plan.

Way to go John Edwards.


by jfoster on Tue Feb 06, 2007 at 08:33:30 AM EST


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