Not As Advertised

Author: James Capretta
01.05.10

Now that health-care bills have passed in both the House and the Senate, Democrats just can’t seem to stop themselves from rhetorical excess. Just before Christmas, as the bill sponsored by Majority Leader Harry Reid was clearing its final hurdles in the Senate, Democrats took to the chamber floor and cable television shows to trumpet the “historic” nature of the legislation they were about to vote on — legislation that would, at long last, move toward their long-sought goals of “universality” and a government-guaranteed right to health care.

But is it so?

Yes, both the House and Senate would provide essentially free health insurance, through the Medicaid program, to many millions of low-income people. But, even so, enrollment in Medicaid is a far cry from getting good care when it’s needed. For starters, about 40 percent of the nation’s physicians don’t see Medicaid patients because the payment rates are too low, which also means certain hospitals have very low rates of Medicaid admissions. The truth is that current Medicaid enrollees already have trouble getting access to high-quality care when they need it because the network of providers willing and able to see them is constrained and over-burdened. The House and Senate bills would add 15 million or more people to this program’s rolls without any guarantee whatsoever that there will be doctors and hospitals that can see them.

Ironically, the very Democrats who most frequently tout “universality” as the goal are also the ones who ensure it will never actually come about by insisting that America’s lower-income families enroll in government-run insurance — with no other options.

Beyond the Medicaid expansion, Obamacare is really an obligation, not a right. Every citizen would be required to sign up with a government-approved health-insurance plan or pay a tax penalty for going without coverage. According to the Lewin Group, households with at least one uninsured member and an income between $50,000 and $75,000 per year would see their costs rise for health care by $2,133 under the Senate bill. “A new tax on the uninsured” isn’t exactly a catchy slogan for Obamacare — but that’s essentially what it is. There would be a lavish new entitlement program to offset some of the premium for some households, but the vast majority of working Americans would get no additional help. They would just get the unfunded mandate, and that’s it.

Meanwhile, despite all of the talk of painlessly slowing the pace of rising costs with more efficient care, the Democrats’ bills would cut costs mainly by imposing arbitrary rate reductions in the Medicare program — pushing it more and more toward the Medicaid model. In fact, at the end of December, the Mayo Clinic announced that it would no longer see Medicare patients at one of its clinics in Arizona because the program’s payment rates are simply too low to cover its costs. A small glimpse into our Obamacare future.

In the coming days and weeks, we will hear a great deal more about how close the nation is to making history. Readily available health care for all, without limit — that’s what the overheated rhetoric will imply. But the public figured out months ago that the reality under Obamacare would be very different. There would be higher costs, higher taxes, and more regulation. Worst of all, clumsy governmental “cost-control” efforts would put the quality of American medicine at risk for everyone. Which is why public sentiment has hardened in opposition, and why the debate is not over yet.

Cross-posted at National Review Online

Morning Bell: Cornhusker Kickbacks for All

Author: Conn Carroll
12.31.09

Last night the Nebraska Cornhuskers routed the Arizona Wildcats 33-0 in the Holiday Bowl. Most years college football bowl games do not have much to do with health care legislation in Washington. But last night, Husker fans throughout Nebraska were subjected to a 30-second television ad from Sen. Ben Nelson (D-NE).

Politicians usually don’t run ads a month after November, and almost never more than two years before they are up for re-election. But after a new poll showed Nelson with a 55% unfavorable rating and down 30 points to a would-be 2012 challenger, Nelson decided to take to the air.  The source of Nebraskans displeasure with Nelson is no secret. 64% of the state opposes the health care legislation Nelson recently voted for in the Senate, and only 17% approve of the special deal Nelson made for Nebraska’s Medicaid program, more commonly known as the Cornhusker Kickback, in order to secure his vote.

Nebraskans are not the only Americans disgusted by the tactics President Barack Obama and his allies are employing to pass their version of health reform. The attorneys general of 13 states have sent a letter to House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) demanding that the Nebraska deal be removed from the bill or they will challenge the legislation constitutionally in court.

Other states are taking a different tack, demanding that the entire Medicaid portion of the Senate bill be redone. The governors of the nation’s two largest Democratic states, New York and California, warn that the Medicaid expansion at the heart of the bill “could collapse the very safety net system it seeks to expand.” New York Governor David Patterson says the bill would leave his state $1 billion in the lurch and California Governor Arnold Schwarzenegger says Obamacare will drain California’s General Fund an additional $3 billion to $4 billion annually.

The fight over the Medicaid portions of the bill expose one of the dirty little secrets of Obamacare: for all the talk of fundamental reform of the system, over half of the health insurance coverage additions in both the House and Senate bills come from the expansion of Medicaid.

Medicaid was chosen to do the bulk of the health insurance expansion under Obamacare because it is cheap. But as Americans instinctively know: cheaper does not mean better. The President’s own Centers for Medicare and Medicaid Services have warned that the lower Medicaid reimbursements will mean those who gain insurance under Obamacare through Medicaid will have a very difficult time finding doctors to treat them.

There is a reason government-run single payer health care advocates rally under the slogan “Medicare for All.” Medicare is actually popular among those who use it. But Americans who think they are gaining real health insurance under Obamacare are going to be in for a rude awakening when they discover they ended up with “Medicaid for All” instead.

Quick Hits:

  • Rush Limbaugh was admitted to a Honolulu hospital today and is resting comfortably after suffering chest pains. Rush will keep his fans updated at RushLimbaugh.com.
  • A suicide bomber killed at least eight American civilians in Afghanistan Wednesday and the United Nations is temporarily pulling international staff from Pakistan because of the deteriorating security situation.
  • After $787 billion in stimulus spending and $700 billion in bank bailouts, the nation’s bulging debt is now $12.1 trillion.
  • The Obama administration’s latest $3.8 billion bail out of GMAC makes taxpayers the majority owners of the firm.
  • Fears are growing that Greece or another weak country may default on its sovereign debt obligations, forcing the richer countries in Europe to ride to the rescue.