Tag: Washington Post

Putting Private Insurance Out of Business

Over at Think Progress, Matt Yglesias takes me to task for saying that the so-called public option in the House’s health care bill “would all but eliminate private insurance and force millions of Americans into a government-run system.”

Yglesias apparently still buys into the myth that the public option is, well, an option.

For people who receive health insurance through their employers, which is to say the vast majority of the Americans who currently have health insurance, the House bill would change very little. Or, rather, the biggest change would simply be the confidence that if, in the future, you cease to get health insurance from your employer (maybe you’ll lose your job or want to change jobs) that you’ll still be able to get health care. What’s more, of the minority of Americans who would be getting health care through the new “exchange,” the majority will probably sign up for private health insurance and everyone will have the option of doing so. If the government-run public plan is, for whatever reason, vastly more appealing than the private options then it will dominate. But if you believe the government can’t run health care well, there’s no reason to think that will happen. Whatever you think of that, though, the basic fact is that even if the public option does dominate the exchange most people will still have private employer-provided insurance.

That might be true if the new government-run program were going to compete on anything close to a level playing field.  But, because the public option is ultimately supported by the taxpayers, the playing field can never be level.   True, the bill does say that the new program is supposed to be self-sustaining, covering administrative and benefit costs entirely out of premium revenues.  But remember that Medicare Part B was originally supposed to support 50 percent of its costs through premiums.  That has shrunk to the point where premiums pay for less than 25 percent of the program’s cost.

And the government has a myriad of ways to prevent the true cost of the program from showing up in premium prices.  For example, the government-run plan will not have to pay state or federal taxes, and unlike private insurance plans, who can be sued in state courts, the government-run plan could only be sued in federal court.

At the very least, the program carries with it an implicit guarantee against future losses.  Suppose the public option prices its products too low and loses money.  Can you imagine that Congress is simply going to let it go bankrupt, go out of business?  Would a Congress that has bailed out banks and automobile companies because they are “too big to fail” resist subsidizing the government’s insurance plan if it began to lose money?   Even without the actual bailout, such an implicit guarantee has a value. For example, the implicit guarantees behind Fannie Mae and Freddie Mac were estimated to have saved those institutions $6 billion per year.

All of this means that the government-run plan would be significantly cheaper than private insurance, not because it would out-compete private insurance or because it was more efficient, but because it had unfair advantages.  The lower cost means that businesses, in particular, would have every incentive to dump workers from their current health insurance plan into the government plan.  And, if other provisions of the bill make insurance more expensive, as is likely, the incentive for employers to shift workers to the government plan would be even greater.   Estimates suggest that nearly 90 million workers could eventually be forced into the government plan.

As Robert Samuelson, dean of economic columnists, writes in the Washington Post, “a favored public plan would probably doom today’s private insurance.”

Samuelson is right.  There is nothing “optional” about a public option.  And that is just the way the Left wants it.

Gallup’s Conservatives and Libertarians

In today’s Washington Post, William Kristol exults:

The Gallup poll released Monday shows the public’s conservatism at a high-water mark. Some 40 percent of Americans call themselves conservative, compared with 36 percent who self-describe as moderates and 20 percent as liberals.

Gallup often asks people how they describe themselves. But sometimes they classify people according to the values they express. And when they do that, they find a healthy percentage of libertarians, as well as an unfortunate number of big-government “populists.”

For more than a dozen years now, the Gallup Poll has been using two questions to categorize respondents by ideology:

  • Some people think the government is trying to do too many things that should be left to individuals and businesses. Others think that government should do more to solve our country’s problems. Which comes closer to your own view?
  • Some people think the government should promote traditional values in our society. Others think the government should not favor any particular set of values. Which comes closer to your own view?

Combining the responses to those two questions, Gallup found the ideological breakdown of the public shown below. With these two broad questions, Gallup consistently finds about 20 percent of respondents to be libertarian.

libertarianchart

The word “libertarian” isn’t well known, so pollsters don’t find many people claiming to be libertarian. And usually they don’t ask. But a large portion of Americans hold generally libertarian views – views that might be described as fiscally conservative and socially liberal, or as Gov. William Weld told the 1992 Republican National Convention, “I want the government out of your pocketbook and out of your bedroom.” They don’t fit the red-blue paradigm, and they have their doubts about both conservative Republicans and liberal Democrats. They’re potentially a swing vote in elections. Background on the libertarian vote here.

And note here: If you tell people that “libertarian” means “fiscally conservative and socially liberal,” 44 percent will accept the label.

‘Reefer Sanity’

Kathleen Parker in the Washington Post:

Arguments for and against decriminalization of some or all drugs are familiar by now. Distilled to the basics, the drug war has empowered criminals while criminalizing otherwise law-abiding citizens and wasted billions that could have been better spent on education and rehabilitation.

By ever-greater numbers, Americans support decriminalizing at least marijuana, which millions admit to having used, including a couple of presidents and a Supreme Court justice. A recent Gallup poll found that 44 percent of Americans favor legalization for any purpose, not just medical, up from 31 percent in 2000.

Read the whole thing.  For more Cato work, go here.

Broder: Health Overhaul Likely, Because Hardest Part Lies Ahead

Yes, you read that right.  And I had to do the same sort of double-take when I read David Broder’s op-ed in The Washington Post this morning.

Broder writes, “Obama has steered the enterprise to the point that odds now favor a bill-signing ceremony.  But the hardest choices still lie ahead….”  Whaa??  How can the odds be better than 50-50 if the biggest fights haven’t even happened yet?

Broder’s optimism continues, “Two things will be needed to reach [a majority in the House and 60 votes in the Senate]: first, a plausible plan for making affordable and comprehensive health insurance available to millions…. And second, a way of financing the coverage….”  But that’s been the whole challenge all along.  Is Broder actually acknowledging that Democrats aren’t any closer to a signing ceremony than they were six months ago?

Broder says Democrats can meet the second challenge by taxing high-cost health plans – “a step that would require Obama to face down his labor union allies.”  You mean Obama should lean on Democrats to tax a crucial part of their own base?  One that’s already activating to block that tax?

Broder also thinks Obama should lean on his fellow Democrats to roll the doctors and hospitals in their states/districts by including more (some? any?) “delivery system reforms” in the legislation.

Sure.  No problem.  What could go wrong?  This is practically a done deal.

(Cross-posted, sarcasm and all, at Politico’s Health Care Arena.)

Political Prisoners in Venezuela: Where Is the Organization of American States?

The Washington Post has a great story today on the swelling number of political prisoners in Venezuela. As the story points out, the government of Hugo Chávez is increasingly targeting university students who have been active in the opposition movement. They are jailed under bogus charges of “destabilizing the government,” or “inciting civil war.”

Unfortunately, despite stories and numerous reports from international media outlets and human rights groups, the Organization of American States—which has been very active in trying to reinstall Manuel Zelaya to the Honduran presidency—has remained silent on this issue. Last week, dozens of students went on a hunger strike in front of the OAS headquarters in Caracas, but no official from that organization came out to meet them. After several days some students were allowed to talk with the OAS ambassador in Caracas, who put them in touch with the director of the Inter-American Commission on Human Rights (IACHR). Jose Manuel Insulza, secretary general of the OAS, then asked the Venezuelan government to authorize the visit of a delegation of the IACHR, a request that hasn’t been granted. Judging by the lack of follow up efforts, the OAS, made up of a majority of countries that receive Venezuelan largesse of some form, seems mostly uninterested in pressing this issue.

The OAS seems ready to help deposed would-be autocrats in Latin America. Where is it when it comes to defending the rights of political prisoners in Venezuela?

The Misuse of “Reform”

When Samuel Johnson said that ”patriotism is the last refuge of a scoundrel,” he overlooked the value of the word “reform.” (I didn’t say this first, but I can’t discover who did.) Webster’s says that “reform” means “to put or change into an improved form or condition [or] to amend or improve by change of form or removal of faults or abuses.” So in political terms, a reform is a change for the better. But whether a particular policy change would actually improve things is often controversial. Unfortunately, the mainstream media typically use the word “reform” to mean “change in a liberal direction.”

It’s bad enough that they constantly use the phrase “campaign finance reform” to refer to laws that restrict individuals’ ability to spend their money to advance their political ideas. And of course every day we hear and read the term “health care reform” used to mean new subsidies, mandates, regulations, taxes, and restrictions on how health care is provided. Needless to say, there’s heated debate in the country as to whether such laws would constitute reform.

And now the Washington Post gives us this prominent headline (page 3, upper right):

450 Mayors Petition Obama
To Adopt Broad Gun Reform

The story makes clear that what the mayors want is what used to be called “gun control” – more power for the Bureau of Alcohol, Tobacco, and Firearms, the creation of an “Interstate Firearms Trafficking Unit,” more restrictions on gun shows, more data collection on individuals.  No doubt anti-gun strategists have discovered that “gun control” is an unpopular term, so they advise advocates to use terms like “gun reform”; and reporters, headline writers, and editors at the Post go along with it.

Now try to imagine this story in the Washington Post:

450 Mayors Petition Obama
To Adopt Broad Media Reform

A new report from a national coalition of mayors urges President Obama to adopt dozens of reforms to help curb media excesses, including steps to crack down on problems with unauthorized leaks, the creation of a federal interstate media monitoring unit, new rules on media concentration, a federal database of people who use hateful language in letters to the editor and online comments.

Hard to imagine the Post would blithely accept the term “reform” in that case, isn’t it? And I don’t think the Post and other mainstream media called President Reagan’s tax cuts “tax reform.” (They did use the term “tax reform” when the proposed policy involved eliminating loopholes and thus taxing more activities, along with a reduction of rates.) Nor, I think, did they call President Bush’s proposed Social Security private accounts “Social Security reform.” They should be equally careful when liberal activists dub their proposals “reform.”

Meanwhile, kudos to Mara Liasson of NPR, who in this story from Friday uses the terms “health care legislation” and “health care overhaul,” but never “health care reform.” I hope that was a conscious choice, in recognition of the fact that about half of Americans don’t think the current subsidy-regulation-mandate legislation is in fact reform.

Is This Intervention Necessary?

So asks the Washington Post in a cogent editorial about FCC Chairman Jules Genachowski’s speech proposing to regulate the terms on which broadband service is provided. (More from TLJ, Julian Sanchez, and me.) The WaPo piece nicely dismantles the few incidents and arguments that underlie Genachowski’s call for regulation.

As the debate about “ ‘net neutrality” regulation continues, I imagine it will move from principled arguments, such as whether the government should control communications infrastructure, to practical ones: Will limitations on ISPs’ ability to manage their networks cause Internet brown-outs and failures? (This is what Comcast was trying to avoid when it ham-handedly degraded the use of the BitTorrent protocol on its network.) Will regulation bar ISPs from shifting costs to heavy users, cause individual consumers to pay more, and hasten a move from all-you-can-eat to metered Internet service? We’ll have much to discuss.