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For Competition Before They Were Against ItPosted on Mar 12, 2009By David Sirota Despite the shock and awe of Democrats’ melodramatic press releases, nobody was genuinely bewildered or surprised by the recent McClatchy newspaper headline screaming that “GOP lawmakers tout projects in the stimulus bill they opposed.” We all know that politicians love to brag about bringing home the bacon—even the bacon they vote against. Far more baffling are those same politicians contradicting their entire foundational philosophy. When that starts happening, as it is in the debate over health care, things can become authentically confusing. Anyone who remembers the 1993-94 health care fights knows that Republicans have long asserted that private insurance is more efficacious and more adored by patients than government-run programs like Medicare. To solve the health care crisis, those on the right say we must foster more price-cutting, efficiency-producing competition. “The American people know that innovation, choice, and competition work,” wrote GOP Sen. Tom Coburn (Okla.) in an archetypal Op-Ed entitled “Competition Solves Health Care.” Give conservatives credit here: At minimum, this argument had a logic to it, however flawed. Sure, it is belied by data—The Urban Institute reports that private insurers spend up to 30 percent of their revenues on administrative costs (read: salaries, paperwork, etc.) while government programs spend just 5 percent, and polls show Medicare recipients are far more satisfied with their health care than patients in the private system. But, in nonetheless claiming that the private sector will always outperform the government, Republicans at least presented an ideologically coherent (if fantastically inaccurate) hypothesis. That all changed, though, when Democrats this week began pushing to let citizens buy into a government-sponsored health plan similar to the one federal lawmakers enjoy. Advertisement Hold on a second. Don’t Republicans insist that “competition solves health care”? Yes, ad nauseam. Haven’t they been telling us that government programs are obviously worse than private health insurance? Yes again. Then, don’t they welcome a private-versus-public competition, believing that the former will easily trump the latter? Well ... uh ... no. As I said, this is truly perplexing. In one breath, GOP Jekylls say government medical plans will be inefficient, inferior to private insurance and thus hated by Americans. In another breath, Republican Hydes effectively admit that government programs would be so efficient, superior to private insurance and loved by Americans that they would attract most consumers and dominate a health care competition. Of the two assertions, of course, the latter is closer to the truth—and the GOP knows it. Republican lawmakers received the new Commonwealth Fund report showing that a public system would save consumers $2 trillion through reduced premiums and lower administrative costs. They see surveys showing the country overwhelmingly wants the government to create a public health program—and they know that many Americans, if given a choice, will opt into that program rather than swim with the private insurance sharks. Republicans can’t simply acknowledge these truisms, however, because doing so would undermine the insurance industry that’s filling their campaign coffers. So instead, we get pro-competition, government-is-ineffective “conservatives” working to thwart competition and implicitly admitting they believe government would be too effective. Yes, when it comes to competition, Republicans were for it before they were against it. And this time, a confounding flip-flop doesn’t merely threaten a bumbling presidential candidate, it imperils a health care revolution. David Sirota is the best-selling author of the books “Hostile Takeover” (2006) and “The Uprising” (2008). He is a fellow at the Campaign for America’s Future. Find his blog at OpenLeft.com or e-mail him at ds@davidsirota.com. © 2009 Creators Syndicate Inc. Elsewhere: . CommentsAre you a Truthdig member yet? Login now, or register with Truthdig. Add Your Comment
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A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
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By Hulk2008, March 16 at 2:12 pm #
My partner and I ran a small software business for 11 years as an S-Corp. Quite a few of our customers were healthcare entities - insurers, hospitals, drug companies. We NEVER made anything close to $250,000 either together or individually. The privately-run companies were not all that efficient or cost conscious but slavishly served their investors. We would have gladly paid the extra taxes to get to that 250K income level.
Report thisWe attended business seminars to help grow - and one tenet stood out among those seminars: businesses who cannot reliably show PROFIT (return of 7 to 13% over overhead) will eventually fail and are not worth continuing in the long run.
By definition then, a government non-PROFIT, single payer healthcare system would be alleviated of that extra 7 to 13% concern. It could focus on cost-cutting and efficiencies and ignore satisfying investors of any stripe. Profit is not “overhead” when it comes to competition.
The mere fact that government is involved should NOT be a deterrent - otherwise the same people who denigrate all of government would also have to attack the armed services - those very troops that they daily laud .... along with church groups, the Red Cross, United Way, and hundreds of NGOs that do help people effectively.
By MeHere, March 16 at 12:54 pm #
Dennis,
I’m not sure I understand your comments. You say that hospice care “in many cases it is seen as a means of withholding care.” Who sees it as such, and who profits by it? If anything, it seems that some physicians try to hold on to the patients too long. My comments are based on what I have observed over time by being involved with my local hospice organization, learning about the patient’s history, and talking with family members. The patients I’ve been involved with have been quite elderly and some had received plenty of treatment already. One woman I visited was not that old but she had refused all medical treatment after being diagnosed.
Report thisBy Dennis, March 15 at 8:09 pm #
(Unregistered commenter)
MeHere,
Report thisAs a retired health care worker for some 35 years, many in long term care , you are half right about hospice care. The issues that were not foreseen when hospice first was used as a fairly routine type of care ,as it is used today. When first started it was categorically for end of life ,disease and suffering mitigation. Now unfortunately in many cases it is seen as a means of saving dollars by withholding care that would prolong life by extending treatments, that are expensive and cut into profits.
As with a lot of health care protocols in the private sector, profits are what drive corp. operations. If Doctors and families did not have cost and litigation hanging over their heads, then hospice could actually be the end of life service it was viewed as in the beginning.
By MeHere, March 15 at 12:25 pm #
Jim Yell,
Thank you. You brought up a most important point in your comment—actually more than one point. “The amount of aggressive intervention” that you mention is indeed a huge issue and one that is not discussed in depth and/or often enough.
As a hospice volunteer, I have witnessed incomprehensible things. For those who may not know, the job of hospice organizations is to keep the terminally ill comfortable when medical intervention has stopped. I have nothing but praise for them. But, in order to qualify for hospice, the patient has to be released by the doctor. You can guess that some doctors try to hold on to the patient longer than they should.
I was once asked to help out with a very elderly patient (90+) at a nursing home. Apparently, her daughter had requested hospice to send someone to help feed her mother because the nursing home aides were too busy to take the time this required. When I got there, I found an old lady propped up in a wheelchair, unable to open her eyes, speak or respond to sound, and unable to move. It would take me 1 hour to get a teaspoon of baby food into her mouth. I felt terrible for doing this and wanted to reject the assignment altogether, but I stuck it out for one week until she died. All along, the doctor visited her and checked her out. At one point, the doctor was even considering doing some testing for something or other.
The issue of excessive and unnecessary testing is huge. Patients often demand tests that even their doctors consider unnecessary, and by the same token, some doctors order unnecessary tests (some profit by this.) There is the case reported in detail by the NY Times where a piece of expensive equipment with dubious or minimal benefit to patients came into the market. Some doctors and hospitals bought it and, guess what, they are pushing it on patients and, as a consequence, other patients are requesting it too. But the trick was to get Medicare to approve it. When a group of manufacturers and doctors went to Medicare, an official told them they had to first submit studies proving the benefits of the equipment. They refused to comply, and they went the “back way” using their lobby power. And, in that way, they managed to get Medicare to approve it without any studies.
All of the things I’ve mentioned have been making profits for everyone involved, except for Medicare and other government agencies and us, the taxpayers. Nobody expects to have a perfect healthcare system, but what we have now has exceeded all rational boundaries. People need to be educated. They have bought into the fantasy that with costly medical care, positive thinking, and the right cosmetics, we can live and look young forever. It’s amazing that we are still arguing over having a true National Health Care plan in 21st century USA.
Thanks to David Sirota for his report.
Report thisBy samosamo, March 14 at 9:16 pm #
Republicans pushing competition? Even in healthcare? What a crock of fecal matter that is. Competition has no place in republican policy or action. As a matter of fact the media is the clear cut example of republican dogma and it is not competition it is CRUSH THE COMPETITION. There used to be upwards close to 100 owners of the msm as we know it from a fews back, tv, radio, newspapers, magazines and books, books get a little leeway as ‘if it sells, print it’. There are some opposing view points even in tv, radio and newspapers but the general gist of the republican agenda is to kill the competition because then the survivor gets all the spoils. But now we have the disadvantage of there being just 4 or 5 owners of the msm. So, where is the competition? Which goes hand in hand in, ‘where is the fairness doctrine’? Unfortunately, the huge mass of people that just get their information from the msm are the ones that need competition and the fairness doctrine considering how the neocons have stolen that venue also. And how tell tale is it that the dems voted NOT to reinstate the fairness doctrine?
Report thisBy Jim C, March 14 at 8:24 pm #
Actually medicares overhead is closer to 2% . The 5% number is the one republicans use , it’s quite telling that even when they inflate the number it still comes in at a fraction of for profit healthcare .
Report thisBy TAO Walker, March 14 at 4:30 pm #
One day our tame Sisters and Brothers must face the fact the plutoligarch owned-and-operated industrial juggernaut ruling and ruining their “individual” lives is programmed specifically to ignore the welfare of subject/citizens. The reason the corporate “form” has been so useful to their purposes is its utter indifference to the effects of its behavior on its expendable “human resources.”
Corporations are the physical expression here of our tormentors’ own essential nature….energy addicts who will get their “fix” by any and all means necesssary and possible, “the public be damned.” The thing IS what it DOES, not what its misled apologists and “expert” rationalizers claim it to be.
Already the domesticated peoples are reduced to begging for scraps from the “tables” of privateering gangs who’ve hijacked their virtual world….fighting over cast-offs that will only sicken them further anyhow. The political shills David Sirota and others take-to-task here are actually acting (unbeknownst to theirownselfs) as a sacrificial suicide-squad doing “rear-guard” duty while the perpetrators escape to their fortified “undisclosed locations” here-and-there.
If it is really their health people want to recover, they’d maybe best stop looking to the fraud that was put in-place to profit from their industrially-induced ailments. Human “individuals” ALL have seriously compromised immune systems which can only be made whole and effective again by reORGANizing their insufficient “selfs” into Living Communities….the Natural Form of Humanity within the Living Arrangement of our Mother Earth. Why else have “....the destroyers of the Earth” gone to such lengths to disband actual communities and families, and reduce them to atomized “individual” components that are so readily exploited and disposed-of?
Health and wholeness for Human Beings is found only in what our Lakotah cousins call the Tiyoshpaye Way. Everywhere outside of it can be nothing but a world-o’-hurt for the inmates one command-and-CONtrol apparatus or another. There is no genuine healthcare except what is provided by Living Community members to one another….right where they live-and-breathe.
Best get TOGETHER, Sisters and Brothers, ‘cause “individual”-ly you’re plumb outta luck.
HokaHey!
Report thisBy Roland, March 14 at 2:22 pm #
(Unregistered commenter)
Republican attitudes make more sense when you realize their *real* constituency isn’t the voters who elected them, it’s the corporations who bought them. End lobbying/bribery now.
Report thisBy yours truly, March 14 at 1:55 pm #
(Unregistered commenter)
The reason the Republicans so vehemently oppose single payer health care is that its success would shatter the myth about government being the problem, not the solution. And once that happens, the Republican Party, made up as it is of economic conservatives & Christian fundamentalists, just might lose the former, and then how many Americans would support an anti-abortion single issue Party? Fifteen-twenty percent, according to polls, that’s how many.
Report thisBy Jim Yell, March 14 at 10:15 am #
(Unregistered commenter)
Any money bled from the health care system for corporate profit is money that can not be spent on health care delivery.
National Health Care in the long run would help everyone including corporations by removing the cost of health care from the business equation and freeing it from the personal and profit motivated piracy that has rendered health care in this country outrageously expensive and distructive.
We have seen privitization of the health care system and the results clearly are not better service, and lower cost, but increased cost beyond reason and the withholding of care.
But, it isn’t just the loss of huge profits that stand in the way of National Health Care, but the fact that the amount of aggressive intervention in health treatment will have to be weighed against probably good. Without this instrument any attempt at health care will fall of its own weight. We treat dying people as if they will suddenly be whole and healthy again, rather than treat their dying as a natural progression of life and that is why most of the health care money is spent during the last days, instead being spent to keep people healthy, or at lest to keep them from getting even less healthy.
And, of course that is the next big problem with the whole issue.
Report thisBy Melburnian, March 14 at 10:13 am #
(Unregistered commenter)
Of course, these are the same troglodytes who believe that any public spending for the benefit of all citizens is a misuse of government funds (i.e: YOUR taxes). Makes you wonder why they bother….
Report thisBy wildflower, March 14 at 2:13 am #
Re David Sirota: “government-is-ineffective “conservatives”
Report thisThe most ineffective part of our government are the Republican conservatives.
By Grappa, March 14 at 1:02 am #
(Unregistered commenter)
I think on this one, President Obama is his own worst enemy. The savings required to cover all, is only in a single pay or system. The system most Congressional Dems favor are racked with trying to expand the current insurance run programs, which are always giving controls to the wrong people [the health care industry]. By the time the Repubs. get through with tearing apart a fuzzy mutt led system of private public partnership, nothing will have changed except thousands more will be without health care and the population sicker.
Report thisBy Bisbonian, March 13 at 10:31 pm #
(Unregistered commenter)
Ask any member of Congress who provides their health insurance. Case closed.
Report thisBy pinko, March 13 at 5:22 pm #
50,000,000 without access to health care.
Children suffering and dying from lack of medical care.
My own daughter was one of them.
When will it be time to grab these bastards by the throat and thrown them in the dumpster where they belong? And I do mean this literally.
Oh that’s right, this is America where we prefer being screwed. So sorry.
Report thisBy Ribald, March 13 at 1:55 pm #
(Unregistered commenter)
It could be possible that they think a public healthcare option would have an unfair market advantage without better efficiency (i.e. it is nominally cheaper, but funded largely by taxes that the buyer must pay regardless of his choice. Thus, the public healthcare option crowds out private options). I’m sure there are many ways to avoid this, though.
Report thisBy bogi666, March 13 at 11:08 am #
(Unregistered commenter)
America does not have a health care industry, it has a health insurance industry with a 30% administration costs which includes the expense of denying benefit claims to those who pay the insurance premiums. In all likelihood the denial of benefit claims exceeds 5% which is the cost of administering Medicare.
Report thisBy AWM, March 13 at 9:35 am #
Their arguments don’t make sense because they do not believe what they say themselves. They only believe in the perks and cash they get from the insurance industry.
Report this