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Aug
21

Could we please just stop talking about the public plan option?

It’s quite clear the public plan option is not going to be part of any health reform bill, if any health reform bill is passed.
This despite the announcement yesterday that sixty progressive/Democrat members of Congress signed a document that they would not support a reform bill that does not include a public plan option. While I admire their willingness to take a stand, I don’t believe that they will follow through.
THe good folks at the Campaign for America’s Future invited me to participate in a call yesterday with Dr. Jacob Hacker, the brains behind the public plan option, as well as two Congressmen, Rep. Raul Grijalva and Keith Ellison. The gentlemen waxed eloquent about the progressive caucus’ commitment to the public plan option, and all the reporters who got to ask questions focused on the political issues surrounding their position.
I didn’t get to ask the ‘other’ question, which was in three parts; “How will this save money, and how will you convince providers to sign up, and how will it prevent cost shifting to private plans?”
Dr. Hacker addressed these questions in a monograph published by CAF; providers would be automatically signed up but could opt out; reimbursement would be set at 5% above Medicare; and cost-shifting is overblown.
I don’t agree with Dr Hacker that most providers would join (why would they join a plan with no members at reimbursement much less than they are currently getting to serve their current patients?) or that cost-shifting is overblown – I see too much of this every day. I also don’t see how a public plan would control the single biggest driver of health cost – utilization.
But it doesn’t really matter if he’s right or I’m right or we’re both wrong – what matters is the political reality is there aren’t the votes in the Senate to pass a plan with a public option.
The continued political brawl over the public option is pointless on at least two levels – it is clear there is not enough support for the option to include it in a bill that will pass the House and Senate, and if health reform legislation is written intelligently, the public option is unnecessary. Moreover, I seriously doubt the progressives will fall on their collective swords and vote ‘No’ on a comprehensive health reform bill if it doesn’t include a public plan option.
My sense all along has been the public option is a stalking horse, one that the President and a few Democrats let out of the stable to create a little excitement, rile up the opposition, and distract attention from other provisions that are more important and meaningful, like insurance reform, mandated universal coverage, and comparative effectiveness research.
Boy were they successful. Once out of the stable, the horse took off bucking and snorting, and kicked up enough of a ruckus to perhaps kill the whole reform process.


One thought on “Could we please just stop talking about the public plan option?”

  1. Cost shifting is overblown? More and more providers are cost shifting to my world (workers’ compensation) everyday! We constantly debate with the providers and say no, the degenerative knee on the 55 year old, 300 lb patient who now needs a knee replacement is not clearly the result of a minor event such as pivoting their leg while moving a 10 lb box. Cost shifting is not overblown, get real.

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Joe Paduda is the principal of Health Strategy Associates

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