By Robert Reich /RobertReich.org
Having failed to defeat the Affordable Care Act in Congress, to beat it back in the last election, to repeal it despite more than eighty votes in the House, to stop it in the federal courts, to get enough votes in the Supreme Court to overrule it, and to gut it with outright extortion (closing the government and threatening to default on the nation’s debts unless it was repealed), Republicans are now down to their last ploy.
They are hell-bent on destroying the Affordable Care Act in Americans’ minds.
A document circulating among House Republicans (reported by the New York Times) instructs them to repeat the following themes and stories continuously: “Because of Obamacare, I Lost My Insurance.” “Obamacare Increases Health Care Costs.” “The Exchanges May Not Be Secure, Putting Personal Information at Risk.”
Every Republican in Washington has been programmed to use the word “disaster” whenever mentioning the Act, always refer to it as Obamacare, and demand its repeal.
Republican wordsmiths know they can count on Fox News and right-wing yell radio to amplify and intensify all of this in continuous loops of elaboration and outrage, repeated so often as to infect peoples’ minds like purulent pustules.
The idea is to make the Act so detestable it becomes the fearsome centerpiece of the midterm elections of 2014 — putting enough Democrats on the defensive they join in seeking its repeal or at least in amending it in ways that gut it (such as allowing insurers to sell whatever policies they want as long as they want, or delaying it further).
Admittedly, the President provided Republicans ammunition by botching the Act’s roll-out. Why wasn’t HealthCare.gov up and running smoothly November 1? Partly because the Administration didn’t anticipate that almost every Republican governor would refuse to set up a state exchange, thereby loading even more responsibility on an already over-worked and underfunded Department of Health and Human Services.
Why didn’t Obama’s advisors anticipate that some policies would be cancelled (after all, the Act sets higher standards than many policies offered) and therefore his “you can keep their old insurance” promise would become a target? Likely because they knew all policies were “grandfathered” for a year, didn’t anticipate how many insurers would cancel right away, and understood that only 5 percent of policyholders received insurance independent of an employer anyway.
But there’s really no good excuse. The White House should have anticipated the Republican attack machine.
The real problem is now. The President and other Democrats aren’t meeting the Republican barrage with three larger truths that show the pettiness of the attack:
The wreck of private insurance. Ours has been the only healthcare system in the world designed to avoid sick people. For-profit insurers have spent billions finding and marketing their policies to healthy people – young adults, people at low risk of expensive diseases, groups of professionals – while rejecting people with preexisting conditions, otherwise debilitated, or at high risk of heart disease, diabetes, and cancer. And have routinely dropped coverage of policy holders who become seriously sick or disabled. What else would you expect from corporations seeking to maximize profits?
But the social consequences have been devastating. We have ended up with the most expensive healthcare system in the world (finding and marketing to healthy people is expensive, corporate executives are expensive, profits adequate to satisfy shareholders are expensive), combined with the worst health outcomes of all rich countries — highest rates of infant mortality, shortest life spans, largest portions of populations never seeing a doctor and receiving no preventive care, most expensive uses of emergency rooms.
We could not and cannot continue with this travesty of a healthcare system.
The Affordable Care Act is a modest solution. It still relies on private insurers — merely setting minimum standards and “exchanges” where customers can compare policies, requiring insurers to take people with preexisting conditions and not abandon those who get seriously sick, and helping low-income people afford coverage.
A single-payer system would have been preferable. Most other rich countries do it this way. It could have been grafted on to Social Security and Medicare, paid for through payroll taxes, expanded to lower-income families through Medicaid. It would have been simple and efficient. (It’s no coincidence that the Act’s Medicaid expansion has been easy and rapid in states that chose to accept it.)
But Republicans were dead set against this. They wouldn’t even abide a “public option” to buy into something resembling Medicare. In the end, they wouldn’t even go along with the Affordable Care Act, which was based on Republican ideas in the first place. (From Richard Nixon’s healthcare plan through the musings of the Heritage Foundation, Republicans for years urged that everything be kept in the hands of private insurers but the government set minimum standards, create state-based insurance exchanges, and require everyone to sign up).
The moral imperative. Even a clunky compromise like the ACA between a national system of health insurance and a for-profit insurance market depends, fundamentally, on a social compact in which those who are healthier and richer are willing to help those who are sicker and poorer. Such a social compact defines a society.
The other day I heard a young man say he’d rather pay a penalty than buy health insurance under the Act because, in his words, “why should I pay for the sick and the old?” The answer is he has a responsibility to do so, as a member the same society they inhabit.
The Act also depends on richer people paying higher taxes to finance health insurance for lower-income people. Starting this year, a healthcare surtax of 3.8 percent is applied to capital gains and dividend income of individuals earning more than $200,000 and a nine-tenths of 1 percent healthcare tax to wages over $200,000 or couples over $250,000. Together, the two taxes will raise an estimated $317.7 billion over 10 years, according to the Joint Committee on Taxation.
Here again, the justification is plain: We are becoming a vastly unequal society in which most of the economic gains are going to the top. It’s only just that those with higher incomes bear some responsibility for maintaining the health of Americans who are less fortunate.
This is a profoundly moral argument about who we are and what we owe each other as Americans. But Democrats have failed to make it, perhaps because they’re reluctant to admit that the Act involves any redistribution at all.
Redistribution has become so unfashionable it’s easier to say everyone comes out ahead. And everyone does come out ahead in the long term: Even the best-off will gain from a healthier and more productive workforce, and will save money from preventive care that reduces the number of destitute people using emergency rooms when they become seriously ill.
But there would be no reason to reform and extend health insurance to begin with if we did not have moral obligations to one another as members of the same society.
The initial problems with the website and the President’s ill-advised remark about everyone being able to keep their old policies are real. But they’re trifling compared to the wreckage of the current system, the modest but important step toward reform embodied in the Act, and the moral imperative at the core of the Act and of our society.
The Republicans have created a tempest out of trivialities. It is incumbent on Democrats — from the President on down — to show Americans the larger picture, and so so again and again.
Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including his latest best-seller, Aftershock: The Next Economy and America’s Future; The Work of Nations; Locked in the Cabinet; Supercapitalism; and his newest,Beyond Outrage. His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.
Germany: “To deal with a projected €11 billion ($13.9 billion) hole in 2011, the government decided to increase premiums to 15.5 percent of workers’ gross pay, up from 14.9 percent with contributions split between employers and employees. The hikes are to bring in about €6 billion ($7.6 billion).”
England: “Growing numbers of patients are being denied treatment for conditions such as loss of sight, arthritis and infertility as the NHS increasingly rations healthcare in order to save money, research by the Guardian shows.”
Norway: “The discovery of oil and gas in Norway’s waters in the 1960s turned the Scandinavian nation into one of the richest in the world, with a strong welfare system and a high living standard.”
The other countries we are compared to constantly are struggling with the ever-increasing costs of health care. They are all handling it in different ways; cuts in benefits, cuts to providers, increases in taxes.
We could go the German route, and charge everyone 15.5 percent of their pay. Yea, I’m sure people would love that. Rationing in England? Sure, no problem.
Norway? Using their natural resources to fund their welfare system. We could certainly do that if we were “allowed” to.
Other countries had semi-decent health care when people died younger, and their economy was booming. Now, they are all struggling. There is no perfect plan in another country, and we are attempting to implement ours in a time of economic instability, and high unemployment.
Plus, huge amount of people are ticked because they thought it was going to be free.
What you omitted is the fact that austerity fiscal policies are causing these problems in Germany and England. Those policies are causing more inequity, with the wealthy doing just fine. Austerity doesn’t apply to everyone.
Maybe Norway should use its resources make its military the best in the world instead of providing health care for Norwegian citizen?
The problem with this sort of argument against gov’t involvement is it does not offer any alternative. Ask these folks what they’re for and the answer is: nothing.
We’ve been debating healthcare in one way or another for 50 years. Finally we have something. It’s far from perfect. But it beats the hell of out nothing any day.
If our medical care was so terrible why did people from other countries spend the money to come here to get more timely, better care, rather than die waiting for the socialist medical systems in their own countries to treat them – if they would? Follow the money!
To pay off the health insurance companies for their support during the elections by forcing citizens to buy their product, causing a 40% increase in their business, much of it the responsibility of the American taxpayers, many might consider a crime. Follow the money!
The position that the fines for not buying the health insurance businesses products are a tax, simply because the collection of those fines has been assigned to the IRS is just legal nonsense!
In 2008, there were 60,000- 85,000 medical tourists that came to the US for medical care. Hard to make a case that this figure is an indictment of medical care in other countries.
There are 48 million uninsured people in our country. That is a clear indictment of health care in the US.
I googled “how many Americans go to other countries for medical care?” and the very first article from a 4/8/09 article from HEALTH stated that 6 MILLION Americans go to other countries for hip and knee surgeries and colonoscopies to name a few. I have friends who moved to Mexico to get medical care.
I suggest you see the movie “The Healthcare Movie” which is about Canada’s system. If something can’t get done in their country, they pay to have it done in our country. Pretty nice, huh? Of course, that’s not referring to hip/knee replacements which people in this country have to wait for also.
Anna is right; our current system is a “clear indictment of health care in the U.S.” A civilized society should be looking out for ALL of its citizens.