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  • The Reid Compromise Does Nothing to Improve A Very Bad Senate Health Bill

    Although the details have not been released, Majority Leader Harry Reid (D-NV) has floated yet another potential “compromise” to his health care bill. There appear to be two broad elements: a federal insurance plan run by the Office of Personal Management and a Medicare buy-in option for Americans over 55.

    Don’t Be Fooled. There is nothing new or original about these ideas. Both these policies have been recycled from previously failed efforts. Senator John Kerry’s (D-MA) health care proposal from his 2004 failed Presidential bid included a federal plan run by the Office of Personal Management (OPM). The Medicare buy-in was proposed by President Clinton in 2000. Those ideas were bad when they were introduced and are no better today.

    • New Federal Insurance Plan. The compromise proposal appears to envision giving the Office of Personal Management the authority to contract with a private, non-profit to administer a special federal health plan. There are several key problems with such an approach. First, running a stand alone health plan, in effect, a public plan for the entire nation, will undoubtedly result in higher taxpayer costs. In other words, the size of government, once again will grow. Taxpayers can expect new demands for funding. Second, if OPM was given broad power to negotiate and determine services, benefits, premiums, etc., this federal plan would be no different than the older version of the “ public plan” that so many are bitterly opposed to; merely because the public plan is ”private” in name only doesn’t change a thing. Finally, shifting this public plan option to OPM means the Director of OPM could end up as the ultimate health care czar, reporting directly to the President.
    • Medicare Buy In. The compromise proposal suggests allowing individuals 55 to 64 to “buy-in” to the Medicare program early. This too has multiple problems. First, opening Medicare will lead to selection issues. As CBO points out, enrollees would likely be higher users of medical services which would be reflected in higher premiums. To address this, the government may likely subsidize these enrollees, adding more cost to the taxpayers. Second, it would also likely create a crowd-out effect, where the government buy-in option squeezes out the availability of private coverage, including retiree coverage from a former employer. Finally, Medicare is already fiscally unsustainable. This solution would only accelerate its doom.
    • Medicaid Expansion. While reports claim that the idea of expanding Medicaid even further beyond what is currently in the bill appears to be off the table, it should be noted that while the Senate bill includes a Medicaid expansion to 133% FPL, the House bill goes much further, raising eligibility to 150% FPL. Therefore, an even bigger Medicaid expansion may not be a dead deal.

    Still Plenty Wrong With The Bill. Regardless of the merits of Majority Leader Reid’s latest attempt at a compromise, there is plenty wrong with the Patient Protection and Affordable Care Act – massive consolidation of regulatory authority over health care to the federal government; unintended consequences of the employer mandate; constitutional concerns over the individual mandate; inequities created through the subsidy structure; massive Medicaid expansion; Medicare “savings” shifted out of Medicare; and a flood of new taxes that impact Americans regardless of income – to name just a few.

    Posted in Obamacare [slideshow_deploy]

    18 Responses to The Reid Compromise Does Nothing to Improve A Very Bad Senate Health Bill

    1. Freedom of Speech, T says:

      "Doing something is better than doing nothing."

      We've all heard this ridiculous statement.

      Only a fool tears down his entire house to remodel the kitchen.

      This recycled (how green) and re-labeled (how misleading) mess being put together is to give POTUS and the far-left political cover.

      They would rather pass ANYTHING, with plenty of gray area and loopholes to expose at a later date, than to do what is right for the majority of the American people – START OVER AND REFORM.

      THEY wasted time by putting together this economic and fiscally irresponsible atrocity.

      THEY did not want REFORM. THEY did not want bi-partisianship (except for political cover).

      NOW, they are desparate and still trying to fool us.

      Does ANYONE still believe this is not about POWER and CONTROL?

    2. Ozzy6900, CT says:

      Let me approach this from another angle.

      If this plan is so good, so important for the "good of all", why does everything have to be MANDATED? Why does he continue to think that the People cannot fend for themselves? Is Dirty Harry afraid to put this to the vote of the People? You bet he's afraid! Dirty Harry knows if this went to a vote, the People, the very People that he is trying to help, would vote this down in a minute!

      The People are not stupid, Harry! We know that you and Dragon Lady Pelosi drink from the same cesspool!

    3. Jim Utah says:

      Is there a list of a senators net worth when they enter congress, and what they are worth now?

      Same for the house??

    4. Robert Rhinehart says:

      Is Harry Crazy, It didn't fly under Hillery and it won't fly now. Stop The Fraud In Medicare !!! That will go a long way in perservering the system that is working now. The Buy into Medicare won't work ,they can'f afford any coverage now so where does the money come from ? Duh, the Feds. More cost to a already taxed system.

    5. Randy. PA says:

      Still waiting for a republican plan. Is it just liabilty cap and tax cuts? If I were running the show i would take everything off the table as far as health reform and try to pass two laws. First revoke insurance companies ant-trust exemption and put a cap on what an insurance company can claim for administrtive costs. better yet make them function as a non-profit. everyone can keep their wonderful private insurance and hopfully this will help bring costs down. this will never happen because the Congress especially the republicans are owned lock stock and barrel by the insyrance companies

    6. Pingback: WaPo: “Legislative Sausage” Health Care Plan Could Lead to Single-Payer Insurance | Fix Health Care Policy

    7. Pingback: The Reid Compromise Does Nothing to Improve A Very Bad Senate Health Bill : ExposeHarry.Com

    8. Pingback: New Senate Bill Is Reason to Re-Set the Clock | Step Down Obama

    9. Tim, VA says:

      Again, if this is so good and beneficial why did Congress exempt themselves from the forcible mandates applied to everyone else?

    10. Pingback: New Senate Bill Is Reason to Re-Set the Clock | Fix Health Care Policy

    11. William Sells, RN says:

      What is the Government going to do when millions of us doctors and nurses walk away from the profession? Are they going to put a gun to our head and force us to work as slaves in their "Rube Goldberg" healthcare fiasco? I've worked in Emergency Medicine for 30+ years, and I, and many of the nurses I know, are already making plans to "exit stage left" when this goes into effect!

      I've spent the last 15 years learning the secrets of people who grow very old without the need of doctors and hospitals and plan to go into teaching what I know. We're making plans, and it doesn't include anything our Government is cooking up! So, Reid, Pelosi, Frank and their "buds" can go take a flying leap as far as I'm concerned!

    12. Rick, MD says:

      They will try to change the language of it or try to spin it any way they can because all they want is government run health care. More power for them and less freedom and liberty for everyone else just like all of there other policies.

    13. Pingback: New Senate Bill Is Reason to Re-Set the Clock | Conservative Principles Now

    14. Painesright says:

      EXPOSED!! Video/audio: In 2004, Obama explained that his idea to expand Medicare to those 55 and older is the first step on the path to Universal Healthcare/Single Payer.


    15. TommyT San Jose CA. says:

      Force members of congress to give up their taxpayer funded golden healthcare plan and other perks and use that money to help the uninsured.

    16. Pingback: Rep David Bly « Stop David Bly and Kevin Dahle

    17. Pingback: Rep David Bly « Maddmedic

    18. remodeling says:

      I think the public option is very critical and should have been left in the bill. I do believe that certain parts to this bill are a good thing like, can't deny coverage for pre-existing conditions and can't be dropped for becoming sick, if we were always healthy, we wouldn't need coverage.

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