healthcare reform?

my good friend, donald douglas, of american power fame put up a great post yesterday on the state of healthcare and where our presidential hopefuls want to go with it.  i am cross-posting it here for your reading pleasure because i believe it is worth getting the word out.

donald makes some good points - the most important (to me) being that we are not in a recession as the economy is still growing; however the growth is slow. even last night on the o'reilly factor, in her interview with bill o'reilly, hillary said that we're currently in a recession and that the middle class in this country has been far worse since bush's tax cuts then under billy bob's time as potus. really? that's what she's going with. let's look at the facts, shall we?:

Taxes under Clinton 1999                            Taxes under Bush 2008

Single making 30K - tax $8,400                   Single making 30K - tax $4,500

Single making 50K - tax $14,000                   Single making 50K - tax $12,500

Single making 75K - tax $23,250                 Single making 75K - tax $18,750

Married maki ng 60K - tax $16,800               Married making 60K- tax $9,000

Married making 75K - tax $21,000                  Married making 75K - tax $18,750

Married making 125K - tax $38,750                   Married making 125K - tax $31,250

you can verify this information here.

here is donald's very excellent article. you can read it over at his place, too.

How do you like this four-by-four decision matrix on money and self-interest? It's from Maggie's Farm, "How Enlightened Self-Interest Works," and it reminds me of when I was in grad school studying game-theoretic models of cooperation under anarchy. More immediately, the matrix - especially the payoff in the upper-left quadrant - reminds me of the healthcare debate we've been having. Talk about universal healthcare's been suppressed a bit with the Wright controversy throwing the Democratic campaign off the rails a bit, but it's starting to come back.

John McCain's making a big push in his healthcare reform proposals this week, focusing on choice, competition, affordability, and availability.

The Wall Street Journal reflects favorably on McCain's movement toward more rationality in our national healthcare delivery:

Mr. McCain undertook yesterday to recast this looming argument [over healthcare] in a new mold. He contended that the health insurance and delivery system is in fact failing many Americans – but that it was failing because of market distortions mostly created by the government itself. Fixing these irrationalities would both make insurance more affordable and increase overall coverage in the bargain. Nor would it require the vast new entitlement programs Democrats are eyeing. His major proposal would change the tax treatment of insurance. To review: Today's tax code permits businesses to deduct the cost of providing insurance to their employees, but it doesn't do the same for individuals. This creates third-party payment problems; workers aren't aware of the full, true costs of many treatment decisions, part of the reason the U.S. has double-digit health-care inflation. And it makes insurance less affordable for everyone outside the employer-based system, who must pay with after-tax dollars besides. Mr. McCain would correct this imbalance with a refundable tax credit, restoring the parity of health dollars. As the Senator argued, coverage shouldn't be "limited by where you work" and said that "Americans need new choices beyond those offered in employment-based coverage." Focusing on equity is a canny political argument. For those who don't get insurance through their employers, the current system is patently unfair. As the private market for health insurance became revitalized, everyone else would be more liberated from their bosses' system. A significant portion of the uninsured population at any given point is people who left or lost employment; but portable individual policies would follow them from job to job. That's a broader political and economic argument than the exclusive liberal concentration on the uninsured. Mr. McCain is saying that the health-care system isn't working as it should, or delivering the quality it should, for the large majority of Americans. "The real reform," he noted, "is to restore control over our health-care system to the patients themselves," introducing more competition on price into the system.

But remember the matrix above: How can we maintain quality and value? Well, McCain argues that more of the decisions over healthcare should be in the hands of consumers, not employment bureaucracies, which make obtaining insurance more expensive for those who are not insured through a workplace plan.

Here's McCain explaining it himself:

The thing to watch, though, are the attacks on greater rationality in healthcare delivery from far-left universal health advocates. Ezra Klein's got a new piece up, for example, slamming the Arizona Senator for pushing some seemingly diabolical health plan surrepticiously designed to strip Americans of their coverage:

McCain believes that Americans use too much health care, and he has created a plan that will make care less affordable so millions of Americans will use less. He even has a euphemistic description for this approach: "The key to real reform," he says, "is to restore control over our health-care system to the patients themselves … These accounts put the family in charge of what they pay for."

That's not what McCain believes at all. He's absolutely right that costs are out of control, but he's not throwing those without coverage under the bus. McCain realizes there's a role for government to correct for market failures, as the Journal notes:

It's true that individual subsidies might be required for some people with severe chronic illnesses who might have a harder time finding private insurance in this kind of world. So Mr. McCain sharpened his proposal for high-risk pools to cover "uninsurables," building on current insurance experiments in about two dozen states.

See McCain's health proposal itself for more information, since we certainly won't get a straight analysis from hysterical lefties like Christy Hardin Smith at Firedoglake:

Talk about your Double-Talk Express. As scarecrow said, John McCain unveiled his "health care plan" for the masses. Well...the health care plan for masses o' profits for the insurance industry, anyway.

I was on a conference call yesterday with Roger Hickey, co-director at Campaign for America's Future; Jacob Hacker, author of "The Great Risk Shift" and professor at Yale University; and Karen Ackerman, political director for AFL-CIO. Roger sums the McCain plan up here:

He wants voters to think he is going after health care cost inflation. In reality, he wants to dismantle the employer-provided system that now covers over 60 percent (or about 158 million) of non-elderly Americans....And he would drive health care costs upward, not downward.

This is truly amazing: McCain and his handlers...turned to their friends (and financial supporters) in the health care industry and the conservative think tanks. And they have adopted the most extreme right-wing ideological approach, premised on the idea that the big problem in health care is that Americans have too much insurance – in their words, we don't have enough "skin in the game" – and that only when we have to buy health care with money that comes directly out of our own pockets will consumers force doctors, hospitals and insurance companies to become more efficient.

Notice the attacks on "the most extreme right-wing," which is to be expected from the folks at FDL, who are itching to move the country further to the left than we've ever been in history, in health care, as well as on foreign, economic, and social policy.

Hardin Smith links to this broader ad attacking McCain from Progressive Media:

Check out this ad from the Service Employees International, smearing McCain's health proposals:

We're not in a recession, by the way, as the Associated Press reports, "Economy Grows by Only 0.6 Percent in First Quarter."

While this is a skimpy statistic on economic expansion, the economy did grow last quarter, although watch out for the attacks on a "GOP recession" in the weeks and months ahead.

But back to the healthcare issue.

Recall the Maggie's Farm matrix, and especially the payoff for the lower-right corner:

No focus. Quality, results and money do not matter.

Leads to inefficient markets, poor quality and service, & corruption.

So, take a look at that matrix one more time: Your money versus other people's money, right?

McCain wants to shift the healthcare system to greater choice, affordability, and access.

The critics on the left want to move to a single-payer nationalized system of healthcare, like, say, in Britain or Canada, where patients wait months to receive basic health services and treatment, with some even dying in the meanwhile.

Comments

[Winfred Mann]

It's scary when people running for President (Obama and Clinton) don't know the definition of recession. It's a simple macroeconomic term defined as a decline in GDP for two consecutive quarters.

DUH! Hillary, are you dumb, or are you lying?

[Americaneocon]

Thanks for the great introduction, Heidi!

This part about the recession's something we'll have to keep hammering. Yeah, we're having some market fallout, but growth - no matter how small - is growth, and I'm seeing help wanted signs all around Southern California.

I expect some revision on the job numbers we've seen recently, which might show more dislocation. But it's not the case that we're collapsing like the Great Depression.

We've got to keep those taxes down too. Those are some very interesting numbers you've quoted above ... thanks!

[Angel]

As always Heidi.thorough and brilliant!..u said:The critics on the left want to move to a single-payer nationalized system of healthcare, like, say, in Britain or Canada, where patients wait months to receive basic health services and treatment, with some even dying in the meanwhile...I once knew a guy in Canada who's father had to lie in the hall for days in a hospital..who needs socialized medicine?..NO one!

[Uncle Joe]

Thanks for this post. It is scary when you look at how close people who think like this are to the most powerful political office in the free world.

[Karen]

It's a basic difference between the two parties and I am looking forward to the clear distinction in November. The Dems believe government is there to solve everything and your money is theirs. Obama didn't even speak as though he understand captiol gains taxes. The Dems can say all they want that we're in a recession - doesn't make it so, election year or not. We are in a downturn. The economy is cyclical. Like the weather and global warming. Oops.

[Zabelle]

You know, Heidianne? I was thinking you ought to do a little more in-depth articles and at least show some sources! (HAHA!) (kidding!!) WHAT a great bunch of writing you do; You are a public service in and of yourself!
Thanks SO much!

[heidianne jackson]

hi winfred! thanks for stopping by - my guess is she's just flat out lying - it's the normal response of libs, isn't it?

[heidianne jackson]

it's all in a day's work, donald - for both of us!

[heidianne jackson]

thanks for stopping by, angel, this is some serious stuff and people are voting with emotion rather than logic. even when presented with FACTS many on the left simply refuse to see the truth.

[heidianne jackson]

precisely! uncle joe. glad to have your input on this issue...

[heidianne jackson]

karen, it is a basic difference between the two parties and i hope for that clear distinction to start NOW! i sure hope you slapped your hand with a ruler for that slip about global warming - sheesh! :)

[heidianne jackson]

hi zabelle! thanks for coming by again - i will try to do some less "fluffy" posts in the near future. i promise!! :)

[rob]

Are you people for real? Gas is at 4.00 a gallon, food prices have risen 83% in 3 years, housing is overinflated, the dollar is falling like a rock. Does teh earth have to implode in order for you people to understand whats happening here in this country? As for your little tax table at teh top it means nothing. Clinton taxed the American citizens and Bush is borrowing money we will eventually have to raise taxes to pay back. I find it very concerning that conservatives don't care weather we borrow and spend leaving the burden to the next generation when they are always touting "personal responsibility". Democrats raise taxes because Republicans lower them (mostly on the rich) and then spend the country into deep deep debt that requires higher taxes to be collected in order to keep the country running.

As for healthcare we need a single payer system. Call it socialized or whatever you want but getting the insurance companies out of the way is a good idea.

[heidianne jackson]

rob, yes we are for real - you, obviously live in make believe land where you can say whatever you want without the proof to back it up and expect all of us to bend over and thank you.

please point me to where you get your data pertaining to the rate of food pricing increses. according the bureau of labor statistics (http://www.bls.gov/news.release/cpi.nr0.htm) you're numbers are bit off. according to this site, 2005-2007 u.s. food and beverage pricing increased 9.3%.

please explain how a the government is going to fix healthcare. what has government ever fixed that it has set out? please explain how spending money on healthcare is will make either the cost lower to the individual tax payer or more efficient for the consumer. please explain to me how the government (both federal and the states) can not manage the limited socialized medical care they control and yet want me to believe they'll be able to do better if we give it to them completely.

please explain to me how you can justify spending money on welfare and pork (yes, BOTH parties engage in this stupidness and i don't condone it for any of them and believe it should be outlawed) and subsidies and government regulations for "safety" and "ecology" and "health" but not for the actual items of protection of the country.

rob, you're certainly welcome to post here, but your argument lacts not only cohesiveness, but logic as well. a single payer system is PROVEN to be less efficient and more costly and a lower standard of care in EVERY country where it has been implemented.

are there some things broken with our current system, hell yes. but throwing the baby out with the bath water isn't going to fix anything.

[Americaneocon]

Heidi!

Let the comments through I say, as long as these folks aren't bigots or anti-Semites. They'll be fluff with irrationalism.

Rob's been drinking the Nancy Pelosi Kool-aid.

We are in a cycle of economic turbulence, sure, but cyclical is the key word. Markets are correcting, and the dislocation hasn't been as bad as earlier periods of economic crises, like the 1970s.

We're not rationing gas, nor waiting in lines. Interest rates are low, and so for people who waited out the market, while finishing school or saving, this is a great time to get in on the ground floor. Iraq's been largely taken off the table, and the voters are scared to death of an Obama-Wright administration.

The job numbers actually fell in the recent BLS statistics, and the media's reporting that we're cresting the economic difficulties now, with the pressure on the dollar likely to ease, and with it gas prices.

And to think: All this will happen just in time for the November election, and McCain's already ahead of Obama by six points in recent polling!

The GOP's supposed to be having a bad year, if we listen to people like Rob. Meanwhile, the rest of the country can put things in perspective - and people aren't too eager for health rationing!

See Gallup for more:

"McCain Moves to 6-Point Lead Over Obama":

http://www.gallup.com/poll/106966/Gallup-Daily-McCain-Moves-Point-Lead-Over-Obama.aspx

[Debbie]

What a comprehensive post, and I mean that in a good way (not like comprehensive health care from the Democrats, ha). I need to come back and read all the links etc. McCain's plan would be better than the Democrats for sure.

Debbie Hamilton
Right Truth

[Z]

FLUFFY POSTS? THOSE are MY domain, pal!! (smile!)
I heard Hillary tonight in Indy giving a speech in which she included health care, of course.....as much as we pay for private insurance and as high as our deductible is? I told Mr. Z tonight "We could sure use healthcare as described by the Left, but I'm not turning America socialist for OUR pleasure"
She went on to explain how she'd like to knock America right out of the cutting edge it's always had through innovation and invention....TAX TAX TAX the health industry! Then, we can all go to China for our health needs. You can't make this stuff up.

[courtneyme109]

Good Stuff Heidi! Us Am Pow Fan Girls have to stick together!

[nanc]

wonderful expose - AGAIN, heidianne!

although i didn't get to all your links, you are certainly to be trusted.

all this makes me wonder WHAT they'll enforce on u.s. next?

i cannot help but think this will be the last election.

lookin' up! *8]

[Otto - American Interests]

Outstanding post Heidi! I confess to not being sufficiently knowledgeable about America's health care system but am drawn to McCain’s comments contending “that the health insurance and delivery system is in fact failing many Americans – but that it was failing because of market distortions mostly created by the government itself, makes sense. As does,” "The real reform," he noted, "is to restore control over our health-care system to the patients themselves," introducing more competition on price into the system”.

A very comprehensive post, well done!

[Aurora]

Excellent post, Heidi. It's nice to hear some positivity about what Bush has achieved. The table comparing tax under Clinton and Bush was revealing to say the least. It would go back in the Clinton direction under a Democratic government as well, no doubt.

As you say:
Notice the attacks on "the most extreme right-wing," which is to be expected from the folks at FDL, who are itching to move the country further to the left than we've ever been in history, in health care, as well as on foreign, economic, and social policy.

Isn't that phrase 'extreme right-wing' the one they use to shut our mouths and walk all over us every time?

[Americaneocon]

Happy Mothers' Day Heidi! Hope you're well, and I'm looking forward to another excellent Big Girl entry!