rssSenate Panel Shoots Down Public Option, Twice
Tuesday, September 29, 2009 at 6:06 pm
- 36 Comments
Sens. Jay Rockefeller (D-W.Va.) and Max Baucus (D-Mont.) at Tuesday's Finance Committee hearing (WDCpix)
Despite growing public support for a government-backed insurance option to compete with private insurers, a Senate panel on Tuesday twice beat back Democratic efforts to create such a plan.
One by one, public option proposals sponsored by Sens. Jay Rockefeller (D-W.V.) and Charles Schumer (D-N.Y.) were shot down by the Senate Finance Committee, with Republicans warning of a government takeover of health care, and at least one powerful Democrat arguing that the concept is simply impractical because it doesn’t have the support to pass the full chamber.
Illustration by: Matt Mahurin
“My first job is to get this bill across the finish line,” said Finance Chairman Max Baucus (D-Mont.). “I don’t see how the public option gets 60 votes on the floor.”
Baucus voted against both amendments.
Together, the votes mark a high-profile, if expected, victory for the insurance industry, which has argued that the creation of a government-backed plan would erode private markets at the expense of patient choice. It also represents a set-back for many Democrats and patient advocates, who contend that only a robust, not-for-profit insurance option will have the leverage to keep consumer costs low — and private insurers honest. A bill passed by the Senate Health, Education, Labor and Pensions Committee — and another moving through the House — includes such a plan.
President Obama, who supports the public plan, has tried repeatedly to downplay the plan’s significance, arguing that it represents just one sliver of the much larger health reform pie. But few have listened, and the issue has evolved into one of the most hot-button topics of the year’s health reform debate.
Under the Rockefeller amendment, the government would create an insurance option to compete with private plans on a newly proposed insurance marketplace, called an exchange. Rates would mirror those of Medicare for two years after the plan launched. Afterwards, plan administrators would negotiate new rates with providers, just as private insurers do now. The Congressional Budget Office estimates that the proposal would save $50 billion over 10 years.
Rockefeller said his proposal would act as “a counterweight” to “rapacious” private insurers, who routinuely put profits before care concerns.
The Schumer amendment was similar but wouldn’t have tied rates to Medicare.
Supporters were quick to point out that, under both proposals, no provider would have been required to accept the public plan, and no patient would have been forced to get coverage through it. “The people who don’t like it can dump it,” Rockefeller said. “That’s called free choice.”
Sponsors also emphasized that, after the initial federal funding, their plans would be paid by patient premiums, not government subsidies. “It’s going to be independent, self-financing and self-sustaining,” Schumer said.
Adding some weight to their push, a New York Times/CBS poll conducted this month found that 65 percent of Americans support “the government offering everyone a government-administered health insurance plan like Medicare that would compete with private insurance plans.”
But the outcome of Tuesday’s votes was largely decided before the debate began. Indeed, Senate Republicans have been clear that they won’t support support a health reform bill that includes the public option.
Sen. Charles Grassley (Iowa), the senior Republican on the finance panel, conceded that the current system has “shortcomings.” But Congress shouldn’t use those failures, he said, as reason to undermine the innovation that results when private markets compete against one another. The creation of a public option, Grassley said, represents “a slow walk toward government-controlled, single-payer health care.”
Yet a 2007 survey of insurance market concentration indicates that the private insurance market is headed that way already. Conducted by the American Medical Association, the nation’s largest physicians lobby, that survey found that, in most states, the top two insurers consume a large majority of the marketplace. In Maine, for example, the top two insurers control 88 percent of the insurance market. In both Montana and Wyoming, the number is 85 percent. Florida, where the top two insurers represent 45 percent of the market, has the lowest market concentration, AMA found.
Sen. Bill Nelson (D-Fla.) said those figures are indication that the private model is, by itself, moving toward the single-payer model. “That doesn’t sound like a lot of competition to me,” said Nelson, who opposed the Rockefeller amendment but voted in favor of Schumer’s proposal.
The Rockefeller amendment fell 8 to 15, while Schumer’s proposal failed 10 to 13. Aside from Baucus, Democratic Sens. Blanche Lincoln (Ark.) and Kent Conrad (N.D.) also voted against both proposals. Conrad has been the leading proponent of private, health care
Still, public option — hopeful that the prominent debate will lend the public option some momentum — are also vowing to bring it up again as the health reform debate rolls on.
“This isn’t the first word on the public option,” Schumer said, “and it won’t be the last.”
36 Comments
Pingback posted September 29, 2009 @ 6:40 pm
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Comment posted September 29, 2009 @ 11:09 pm
This is a truly wonderful day for the United States of America. Five Democrats have just saved us from a total Fascist/Socialist takeover of our Republic.
As a Libertarian, I normally don't like Democrats, any Democrats. But my hats off to these Five for a job well done.
Sirs, Madame, You are Heros of Liberty. Thank you for saving our Great Nation.
Comment posted September 30, 2009 @ 12:55 am
You have got to be kidding me! Shot down why? Because these idiots in Washington aren't able to get together on anything! Stop the political media circus and get some work done for once! Its sad to see that people really believe the media and the crap they dish out, this includes you “ericdondero”. The fact is that a public option is just that an OPTION can you all read and comprehend that word? Its unlikely that the 3% of Americans that need healthcare are going to shut down the HUGE insurance industry. The post office hasn't shut anything down has it? Having a public option would help those people who are dying because the insurance industry thinks its ok to just let people die. I don't think so and if this was happening to you, you wouldn't think so either. In fact you'd be the first in line! This mentality that this is some governmental take over is so paranoid I am thinking these people who think this, are a bunch of pot heads! This same argument was made when Medicare came on the scene and… yea no take over! Quit living with your head in your ass and look at the reality of what greed has done to your mind! Insurance companies out and proud brain washing people into thinking this is a bad idea for the nation while other democracies laugh at us.. this is a sad, sad day for America. Go #37!!!???
Comment posted September 30, 2009 @ 12:55 am
This is dumb politics on the part of so-called conservative Democrats. They are going to force Americans to buy health insurance, but ONLY buy it from private insurance companies. Insurance companies are not well-liked or trusted, Sen. Baucus. Not a smart move.
Plus, a public option would decrease costs by $85 billion according to the CBO. Sen. Baucus, I thought you and your conservative Dems were trying to be fiscally responsible. What are you thinking?
Pingback posted September 30, 2009 @ 12:37 pm
[...] needs to be made clear that the reason this, and another public optoin amendment failed, was not because of the GOP members of the committee, but because of the Democrats. It [...]
Comment posted September 30, 2009 @ 12:23 pm
You're a moron. Please refrain from ever voicing your underdeveloped meager little political mind and get your stories from more than one news network (yes, contrary to its tagline Fox News is NOT “Fair and Balanced”)
Comment posted September 30, 2009 @ 12:27 pm
As for them shooting down a public option, is anyone really surprised? The Blue Dogs are the largest recipients of health industry largesse in the entire debate. They know where their bread is buttered and if nixing a public option will line their pockets in “campaign contributions” they'll do it.
Comment posted September 30, 2009 @ 1:58 pm
ericdondero, I've asked many opposers to the gov't option who also throw around the “Socialist” label without really knowing the definition to explain to me HOW the gov't option (hint, OPTION is the key word here) is a Socialist plan? Please answer me that and if you can't, do yourself a favor: open a book and educate yourself on the terms you are incorrectly slinging out there.
It's people like you who blindly follow what they hear in the media that will bring this country to its destruction. America is the land of the brainwashed and lazy; what more could politicians ask for?!
Comment posted September 30, 2009 @ 7:48 pm
What has happened to obamas health care bill? The one he has never read or had anything to do with its writing,yet has wasted millions on pushing.
Comment posted October 1, 2009 @ 10:30 pm
~ AMERICAN HEALTH*CARE SATANIC VERSES KEEPS 45 MILLION AMERICANS IN 3rd WORLD ~
THE WORLDS BILLIONAIRES AND THEIR FRONT CORPORATIONS SHOULD ALL GET ON BOARD THE NEW HEALTH~TRAIN OF $$$. **ADDING 45 MILLION MORE AMERICAN CITIZENS TO THE CURRENT GIVEN PROFIT MARGINS + WITH A (new) FUTURE AMNESTY PROGRAM 6 months AFTER OUR NEXT U.S. PRESIDENTIAL ELECTION = $$$$$$$$$………
WEALTH~CARE FOR ALL THE HEAVILY INVESTED INTERNATIONAL AND AMERICAN BILLIONAIRES IN THE CURRENT U.S.HEALTH FOR THE WEALTHY ONLY SYSTEM WILL NOT END ANYTIME SOON… IT WILL ONLY BE RE~ARRANGED TO MAKE SURE ALL THESE MEGA CAPITALISTS PROSPER IN JUST ANOTHER FASHION .
THE FINE ART OF DENYING 45 MILLION AMERICANS HEALTH~CARE IN OUR JUDEO~CHRISTIAN NATION IS NOT RACIST AT ALL… IT'S JUST OUR BEHIND THE SCENE WEALTHY ELITE CITIZENS USING THEIR TREMENDOUS WEALTH TO DIRECTLY INFLUENCE OUR U.S. CONGRESSIONAL REPRESENTATIVES IN KEEPING ALL THE little poor folk down *
AMERICAN RELIGIOUS LEADERS ALL ACROSS THE USA HAVE ALWAYS BEEN ABLE TO COUNT ON THEIR RELIGIOUS FLOCK TO CONTRIBUTE(TITHE)THEIR HARD EARNED MONIES TO THEIR MINISTRIES EVERY WEEK.
THE MAJORITY OF AMERICANS ATTENDING RELIGIOUS SERVICES IN THE U.S. ARE MIDDLE~CLASS AND WORKING POOR CITIZENS WHO NOW DESPERATELY NEED THE HELP AND SUPPORT FROM THESE SAME U.S.RELIGIOUS LEADERS IN LOBBYING THE U.S.CONGRESS TO PROVIDE PROPER HEALTH~CARE FOR ALL POORER AMERICANS.
***THERE ARE CURRENTLY AN ESTIMASTED 45 MILLION MEN WOMAN AND CHILDREN WITHOUT HEALTH~CARE IN THE WEALTHIEST COUNTRY IN THE WORLD????
SILENT AMERICAN RELIGIOUS LEADERS WHO ALL HAVE HEALTH~CARE FOR THEMSELVES AND THEIR FAMILIES IS MUCH MORE FRIGHTENING THEN THE POSSIBLE DENIAL OF A FUTURE HEALTH~CARE PLAN FOR ALL…
**45,OOO AMERICANS DIE EACH YEAR IN THE WEALTHIEST COUNTRY IN THE WORLD DIRECTLY RELATED TO THEIR LACK OF PROPER HEALTH*CARE.
LAWYERS FOR POOR AMERICANS
(424-247-2013)
Pingback posted October 3, 2009 @ 11:34 pm
[...] health subpanel, is no fan of the insurance industry, as was made perfectly clear during Tuesday’s debate on his failed amendment to create a public [...]
Comment posted October 6, 2009 @ 4:45 pm
Govt Run Health Care Public Option Trigger Explained.
They are going to back door the Gov't Run Public Option and put in there health care reform bill. We need a Free Market answer to solve our Health Care issues that is determined by the public not by the Gov't. Here is a video to explain the Public Option Trigger.
https://www.americanpatriotsprevail.com/Govt_Ru…
Thank You
Louis Escobedo
http://www.AmericanPatriotsPrevail.com
Comment posted August 4, 2010 @ 3:52 am
As a Libertarian, I normally don't like Democrats, any Democrats. But my hats off to these Five for a job well done.
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