Crunchy Con

For Republicans, the base is off

Monday November 26, 2007

Categories: Conservatism, Republicans
I just today got to the November 19 National Review cover story, by Rich Lowry and Ramesh Ponnuru, in which they deliver a stark assessment of GOP prospects for 2008. What I thought was especially interesting -- and valuable --...
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Comments
Susan
November 26, 2007 5:30 PM

Without knowing all that much about it, I'm assuming that the Republicans are assuming - I think correctly - that because of this fiasco in Iraq a Republican win in 2008 is chancy at best, which translates out to, extremely unlikely.

If I were a conservative Republican of real weight and quality, I'd sit this one out. This may explain the "lackluster" (ie, "lightweight") quality of the candidates so far proposed on that side.

I'm not saying the Dems necessarily have the right idea for fixing the health care crisis. But at least they acknowledge that there's a big problem here. When I think of the GOP leadership and health care, I get the impression that they believe if they just screech "socialized medicine!" often enough, it will frighten people away from Democrats.

For me, this is THE issue. (After getting out of Iraq ASAP.) Not because our health insurance is questionable - it isn't. By the grace of God we have very good (if very expensive) insurance, and further by the grace of God we can afford it. But for me, as for you Rod, this isn't enough, just to sit on my (perhaps illusory) island of "safety" and say, well, the Devil take the hindmost. It is unjust that so many Americans are being caught in the healthcare squeeze.

And of course my opinion is informed by the extensive time I spend in Europe. In Europe this isn't a problem. There is, everywhere, universal health coverage. In Europe they spend less per capita and get much better results. I've heard a number of different explanations for this sorry state, but whatEVER, I think we're at least as smart and resourceful as the Dutch (ya think???), not to mention richer, and we need to do better.

As you say, the Demos see that there's a problem, which is at least a start. The Republicans don't even see that there's a problem. Clueless.

Susan
November 26, 2007 5:35 PM

When GWB says, "Hey, it's all OK, they can always go to the emergency room," I'm appalled. You just know that he's never sat for 6 hours in the emergency room with a sick child. You know he's never gotten the astronomically high bills they send later, which you have neither money nor insurance to pay. You know he's never wondered whether to buy groceries or try to pay down the emergency room bill.

For the rich, all is hunky-dory. As usual.

Susan
November 26, 2007 5:37 PM

Don, you GO guy! You've got the right idea on this one.

Don Altabello
November 26, 2007 5:37 PM

Here's a start to the "hard labor": dependency deductions increased from about 4k to 8-10k per child or dependent. Phase them out after a certain income level.

The poor with children likely won't have any tax liability under that plan. Likewise, it helps the working/middle class have more control over their working and childcare arrangements (conservative issue, anyone?? Less governmental authority). Likewise, phase it out and there won't be "tax cuts for the rich," unless people want to argue that two married teachers each making $40k per year are "rich."

I know I've said this before--sorry for being a broke record, but I just think it's a good idea.

IBreakCellPhones
November 26, 2007 5:55 PM

Call me puzzled that the MRSA infection wasn't taken care of by worker's compensation.

Susan
November 26, 2007 5:56 PM

Cute, Brian. Let us know when you're finished being a stand-up comedian and are ready to address the real problems here.

Brian
November 26, 2007 5:56 PM

The simple solution for people worried about being bankrupted by a healthcare emergency is to claim that you are in the country illegally. When asked for your name insist that it is Maria Hernandez and that you have no form of ID. As long as you stick to your guns and continue to claim to be Maria Hernandez from Mexico who has no ID, your treatment will be free.

Joel
November 26, 2007 6:21 PM

You all realize, of course, that one certain result of the Great Smashing will be the GOP's abandonment of social conservatives. Abortion and gay marriage are two of those issues where independents are currently lining up with Democrats.

Susan
November 26, 2007 6:31 PM

Sad, Joel, but it is what it is. The Republicans didn't do anything about any of these social issues anyway: all they did was talk.

Will Harrington
November 26, 2007 6:32 PM

One basic problem here is that some professional fields are allowed to police themselves. Doctors do and so do lawyers. Both contribute to health care problems that won't be solved without systemic change. In the Marion IL. VA hospital there is an ongoing scandal over incompetent doctors causing deaths. Now, aside from the whole issue of the VA being a horrible beurocracy that deserves to die a quick death, there is the fact that at least one of thise doctors was hired by the VA in IL while being investigated and tried by the MA in another state, which did not release this insignificant piece of info to the VA and so people died. I suppose someone will sue, and rightly in this case, but it brings us to the other self regulated profession, the lawyers. Do we even need to go into how they drive up medical costs?

There are other problems as well such as the distribution of resources. My idea, aside from ending the self regulation of doctors and lawyers, would be to bring back the public hospital system. My folks tell me we used to have one (before my time). Doctors could be employed in such hospitals as a way to pay back loans and the hospitals would cover basic care but exist in parallel with the current private system which would have to compete in basic services but would likely provide better services and less standard medical care and treatment while the public hospitals would provide a basic safety net. It wouldn't be perfect, and it would have to be accompanied by serioul tort reform, but it would be better than what we have now. Oh, and abolish the VA its a haven for incompetance, serves our veterans poorly, and is redundant when we have medicare and medicaid.

SiliconValleySteve
November 26, 2007 6:59 PM

The MSRA case raises questions for me too. I know some nurses (in my family) and they have really good insurance. Better than most. Even my mother who worked as a nurse's aide always had top notch insurance and got it for life (in retirement). It's literally paid out millions in her case. It's usually considered a perk of hospital employment. In fact, in CA, nurses are in big demand and getting over 80K out of college and making up to 150-160K (and top benefits) with experience.

Rod Dreher
November 26, 2007 7:16 PM

Call me puzzled that the MRSA infection wasn't taken care of by worker's compensation.

Neighbor told me that she had workman's comp, but it wasn't enough to cover her expenses. That's all I know -- that, and her telling me that she couldn't risk another bout of MRSA like that one, if only economically, so she had to get another job. Maybe the situation is different for nurses in Texas, I dunno.

Susan
November 26, 2007 7:22 PM

Worker's Comp tends to be inadequate to the real costs of being injured on the job, so Rod's experience is typical.

Sotto Voce
November 26, 2007 7:24 PM

About a year to a year ago (wish I had bookmarked it) I read an online column by written by a financial planning pro who was concerned about income distribution trends in the U.S. and the negative long-term implications for the economy. The gist of his observation was that folks making roughly $56,000 a year were (at that time) barely treading water. Households making more than $56,000 a year were prospering, mostly in proportion to how much more than 56K a year they were making. Households earning less than $56K annually were losing ground economically, the rate of decline in proportion to how far below $56K they were falling. Here's the kicker: at the time of the article, 75 percent of households in the U.S. were located below the $56K mark.

I seriously doubt that outlook has improved since I read the article.

For perhaps 25 percent of the people in this country, things appear to be more or less stable. For 20 percent things are noticeably improving. For 10 percent it's outstandingly so and for 2 percent it is obscenely so.

But for 75 percent (and I'm one of them), economic prospects have been getting measurably worse in ways that affect our daily lives. And all the pie charts in the world aren't going to alter that perception.

Health care is just the tip of the iceberg the GOP is crashing into.

Susan
November 26, 2007 7:29 PM

My daughter and her family recently moved from Scotland to the Netherlands.

One of the positive aspects of the move is the diminished gap between the Really Rich and the Really Poor in the Netherlands vs. Scotland. That kind of gap diminishes the quality of the landscape even for those people who are not either. And for me too, even as a visitor. The Netherlands has a much better vibe.

Health care is just the tip of the iceberg the GOP is crashing into.

Sotto Voce is right on the mark here. It's health care, yes, but it's so much more than health care.

Susan
November 26, 2007 7:50 PM

Hey, let me ask you Repubs here.

Is it really OK with you to have these huge gaps in services, so that you have health care insurance and the poor - even the middle clas - do not? That the remedy is to "go to the emergency room" as GWB says, deal with the delays and inadequate treatment, and then the huge bils afterwards? And this is OK? Do you Republicans sign on for this?

That some folks live in McMansions and others can barely keep a roof over their heads? Can you write this off entirely as "it's their fault anyway?" Do you read the newspapers, do you see how many cases where it isn't "their fault"? Do you understand that if you, even you, are suddenly seriously ill and incur huge medical bills, even you, even you, can be cut off? That it might be you?

I'm sort of puzzled. We, my husband and I, have a joint income that puts us in the top 2% in this country. Our kids went to the best and most expensive schools. I don't even want to begin to tell you what our house is worth. I fly to Europe twice a year and think nothing of it.

You don't understand how close to the edge of disaster we are? Well, I do. All it takes is one catastrophic illness before our health insurance - and yours - is canceled and we too have unmanageable expenses.

And even if that were not so, if we were perfectly and completely safe, should I, as a follower of Christ or a decent person even, rest easy when so many of my also hard-working fellow citizens are going down the tubes?

I'm really trying to understand your position here; I'd appreciate an answer that addresses these concerns.

ds0490
November 26, 2007 8:30 PM

"The poor with children likely won't have any tax liability under that plan. Likewise, it helps the working/middle class have more control over their working and childcare arrangements (conservative issue, anyone?? Less governmental authority). Likewise, phase it out and there won't be "tax cuts for the rich," unless people want to argue that two married teachers each making $40k per year are "rich.""

Except it really doesn't work. Here's a quick example.

Married couple, adult children (i.e. no deductions)
Gross Income: Roughly $45K
Federal & State Taxes: Roughly $4K
Insurance Premium: Roughly $12.5K (80/20, $1000/$3000 deductable, no frills)

Now, if the taxes double to provide universal healthcare at the same level, there is about $8K extra to put into savings or inject into the economy. If taxes triple, there is $4K extra.

I know a lot of folks who fall into a framework like this. I work with 50+ of them each day.

Tweaking taxes, even for those with children, is not going to solve the problem. Folks in mainstream American know that.

Don't pee on our pants and tell us it's raining.

Susan
November 26, 2007 8:38 PM

OK, ds0409, and your solution would be....? Or you don't think we have a problem here, and that would be why exactly.....?

Taxes would DOUBLE? We could have sources maybe for this idea?

Even your hypothetical couple might be better off with universal coverage. Even at your imaginary increase in premiums. Why? Because they couldn't be canceled the minute they get sick.

Deb
November 26, 2007 9:08 PM

It's all about access to health care. I have a coworker who is uninsurable (meaning that no insurance company wants her) because she has gastroesophageal(?) reflux disease. A few years ago some friends lost their health insurance because he worked for a small company that lost their coverage. Why? Because a couple of employees had cancer. When the small company found an insurance company that would insure them, only the employees were covered. The employees' dependents had to find their own insurance. I have another coworker who is originally from Wales. She told me that anyone who really needed to see a doctor or needed to have their medical condition taken care of right away had no problems getting health care in England. She hates our health care system here. Because of some health issues she and her husband have, she is afraid to use the health insurance she has here for fear of it being canceled.

So people can complain about "socialized medicine" and "rationing" all they want. We already have rationing in the form of health insurance companies picking and choosing who they want.

Larry Parker
November 26, 2007 10:04 PM

The sad thing is, there are conservative solutions to the issues Americans are crying out about, but conservatives don't seem to want to address them because they see the ISSUES as liberal and thus unworthy. A bit like the GOP of the Herbert Hoover era.

If Republicans aren't careful, they could end up out of office 20 years they way they did from the Great Depression to the Korean War.

metanous
November 26, 2007 10:53 PM

t's fascinating to me that almost all the comments have been about health care--I only wish that the Repub leadership had the same gimlet eye. And I cheer that so many people feel sure that there is a problem, because there is.

I've worked in health insurance companies for fifteen years, and they are broken. They are responding to the economic and financial incentives handed to them by our weird belief, unique in the world, that health care will behave like any other industry in a capitalist society. Unfortunately, our society knows that and acts like health care is not a market like cars and digital cameras or even houses, but as usual we create regulations that take money from most of us and distribute it to a very small minority, with dubious results--but at least the 80+% who are insured don't suffer financially as much as they could, yet.

The states' various rules and regulations want to protect their people, but don't. The 30-50% of "waste" assumed to exist in the industry don't make anyone more healthy. We do know that poverty is directly related to poorer health, in large part not because of "lifestyle" choices but because they don't get the care they need--they can't afford to. Universal health care holds out the possibility that overall health care costs could go down, in the long run, because people would stay healthier. Other places we point the finger of blame are, in part, responsible for runaway costs, but clearly keeping people healthy is an important cause as well.

In Europe, where the gov't bears the cost of care, interesting incentives are created. They have much stricter rules about eliminating toxins from products, because they know that in the long run they will pay the bill for people getting sicker. And where do products that don't make the grade for European distribution go? America, because, since our government doesn't care who pays for health care, we don't even investigate what makes us sick and try to stop it.

Nuff said--there are entire courses on this subject. But surely the Republicans, in the name of freedom, are wearing sandwich signs that say "The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, beg in the streets. or steal bread." Or allow anyone to get sick, and figure out how to pay for care.

ds0490
November 26, 2007 11:51 PM

"OK, ds0409, and your solution would be....? Or you don't think we have a problem here, and that would be why exactly.....?

Taxes would DOUBLE? We could have sources maybe for this idea?

Even your hypothetical couple might be better off with universal coverage. Even at your imaginary increase in premiums. Why? Because they couldn't be canceled the minute they get sick."

The hypothetical couple in question is my wife and me. It's not imaginary.

My point was that tinkering with the tax code to solve this problem will do absolutely nothing to help. The problem is far to big for that. What needs to happen is for our nation to join the rest of the civilized world and at least consider a form of universal health care.

Increasing deductions, even eliminating taxes for folks like me, will not help matters significantly. The system is broke, and simply changing the plug-in isn't going to solve the problem.

Maclin Horton
November 27, 2007 12:12 AM

Ditto to this from Rod:

"When I think of the GOP leadership and health care, I get the impression that they believe if they just screech 'socialized medicine!' often enough, it will frighten people away from Democrats."

I don't want to see Washington take over the health care system, but I've been saying for quite a few years now that it's all but inevitable because what we have now is working less and less effectively for more and more people, for all the reasons mentioned above and more. We have a situation now where serious illness is a direct ticket to financial ruin for some very large minority, at least, of Americans. I know a couple--solid, hard-working, middle-income, with decent health insurance--who lost a child to a rare form of cancer: first hint that something was wrong in early July, burial in mid-October. They were left, *after* the insurance paid, with somewhere in the range of a couple of hundred thousand dollars in medical bills.

People are simply not going to put up with the uncertainty and the unfairness voluntarily for very much longer. That ol' "socialized medicine" boogerman is less scary at this point than the insurance company.

question
November 27, 2007 9:03 AM

I'm curious (and I'm not asking rhetorically, I honestly don't know the answer). Is there any reason that we as a people are mainly expected to receive insurance through our employers? How did we arrive at such a situation? It seems to me it would make more sense if people could buy their own health insurance just like they buy their own homeowner's insurance, life insurance, auto insurance, etc. Is there something unique about health insurance that sets it apart?
I realize the problem is very intricate and complicated, but wouldn't it help if employers were not the responsible parties for providing insurance to their employees?

Andrea
November 27, 2007 9:20 AM

My father has been in the insurance industry for decades. Even he says the system is broken. Because my husband runs a small business, I can never quit work, change jobs, go back to school, etc., without thinking about health insurance FIRST. If I don't work, my little family of five would be on our own. My husband has a few minor medical issues (high blood pressure, for example) that make him uninsurable. An individual policy just to cover catastrophic events for myself and my children would be more than $1,000 a month.

The way the insurance market is structured does not favor individuals or those who actually need health care. It's a shell game. The companies win by taking your money and denying you care. We, as a nation, can do better.

Susan
November 27, 2007 10:04 AM

I'm curious (and I'm not asking rhetorically, I honestly don't know the answer). Is there any reason that we as a people are mainly expected to receive insurance through our employers?

This is an excellent question. The "reason" health insurance here tends to be tied to employment is historical. Back in the day, after WWII, when providing health insurance wasn't really all that expensive, it got tacked on as a "benefit" to employment to lure employees to work for Corporation X. Of course that was before medical technology, new drugs and other factors made health care not only more effective (if you could access it!) but also much more expensive. The connection has persisted, I believe, partly because no one can quite figure out how to sever it, and because everything else being equal, insurance companies figure that if you're well enough to work you're a better risk.

Now, however, one hears rumblings. I have read that the cost of employee health benefits adds $1500 to the price of each and every American-made car. This is a burden that Mercedes and Toyota do not have to bear, since health care is universal in those countries. This puts American industry at a disadvantage in the age of global trade. Big industry, long resistant to change in this area, is now lobbying to break the old connection between employment and health insurance.

For those of us who persist in being hopeful that we can fix this mess, another straw in the wind.

Brad
November 27, 2007 10:06 AM

"Is there something unique about health insurance that sets it apart?
I realize the problem is very intricate and complicated, but wouldn't it help if employers were not the responsible parties for providing insurance to their employees?"

Property insurance is mandated by mortgage lenders and state governments, thus generating sufficient guaranteed premium lots over diverse enough risk pools to make such insurance profitable.

Employers got into health and life insurance for a number of reasons and remain in it, for one, for the same reason, guaranteed blocks of premium with a sufficient spread of risk.

The Conservative/Republican trend is toward "ownership"--HSAs--or, in other words, increasing self-insurance with cash, income tax-advantaged to various degrees, the health insurance equivalent of the replacement of the defined benefit pension with the 401(k); or in more cynical terms, the same "Brazil"ianation that has given you ownership via allowing you to pay for the privilege of being your own receptionist on automated phone systems, the ownership of being your own checkout clerk in a grocery line, and so forth.

The best system would involve nationalizing the actuarial morbidity risk by requiring a minimum premium from everyone that would then be leveraged via the law of large numbers--how insurance works to spread risk cost--over 300,000,000 plus people. Naturally, Monaco could not achieve such leverage, but then they have a benevolent Prince.

These ultra highly actuarially leveraged discounted medical dollars, their leveraged value regulated by an actuarial equivalent of the Fed, would then, though, be available strictly to the individuals themselves to spend medically as they see fit, when they see fit, on their own doctors and on their own, further leveraging, catastrophic health policies.

Susan
November 27, 2007 10:07 AM

Because my husband runs a small business, I can never quit work, change jobs, go back to school, etc., without thinking about health insurance FIRST.

Too many decisions are being driven not by sensible considerations of their own, but by health insurance. It's clogging up the economy as well as the lives of individuals.

Tammy
November 27, 2007 10:28 AM

We have socialized medicine here in Tennessee, established by former Governor Ned Ray McWherter. It's called TennCare, and it's a bad joke. It's "fubar-ed" something fierce, and he refused to help current Governor Bredesen straighten it out. The people who work and can't afford healthcare (like my husband and me) can't get it, yet my hypocondriac, bone-idle neighbor who's gone "undiagnosed" but she's on disability, can get it. In other words, I'm paying for her to watch soap operas, and sit on the front stoop and smoke all day. I think the rest of the nation would do well to study the failed TennCare system. It's an eye-opener.

Susan
November 27, 2007 10:39 AM

But you don't have "socialized medicine" Tammy. Socialized medicine is available to everybody.

Peter
November 27, 2007 11:05 AM

I know it is a side issue but Toyota make plenty of cars in the US. If they are hit less by health care costs it is because they have a younger workforce and less union involvement.

Daniel
November 27, 2007 11:06 AM

TennCare is Medicare, not "socialized medicine."

Derek Copold
November 27, 2007 1:56 PM

Most of the concerns here revolve around the "one medical crisis from bankruptcy" theme. Perhaps it behooves both liberals and conservatives to not look at universal health coverage as much as at "Universal Catastrophic Coverage" instead. I don't see why some sort of actuarial table of cost levels could be worked to cover people who incur medical costs way out of their proportion to pay. I know there'll always be some people caught between the lines (and we should try to minimize them as much as possible), but I have a serious problem with turning it all over to the feds.

First, there's the rationing issue. This is not a minor problem, and many other countries with nationalized systems have started privatizing portions of their system to deal with the shortages. I'd warn liberals not to be so blithe about this aspect of the problem.

Second, and more importantly, IMO, is the fact that if the government pays for your health, they own your body. That means they can mandate all sorts of bans based on the health concern du jour. I'm not just talking about smoking and booze. It also means food choice and exercise. John Edwards was talking about making health exams mandatory. Just about any mandate can be justified under the rubric of cutting costs.

Maclin Horton
November 27, 2007 5:10 PM

You're right about the problems of a nationalized system, Derek, and I can think of a lot more. I really don't want to see it happen, but it's coming like a freight train, because what we have now is not working for too many people and the anxiety level is rising steadily.

One other problem I can think of that we would have that other industrialized countries might not: we are a very undisciplined society with relatively little sense of community and personal responsibility to the community. A nationalized system would bring out a large number of people on both sides of the stethoscope who would work really hard at gaming the system for their own benefit, beginning with its design. They would rip it off with a clear conscience, and countermeasures against that would make the whole thing much more cumbersome and suspicion-filled than it would otherwise need to be.

I mean, I'm opposed to a national single-payer system, and yet I feel like spitting at the tv when I see commercials for a certain insurance company trying to tell me how much the company cares about me. It was only because my wife is very smart, very organized, and very stubborn that they didn't stiff us for a big chunk of a perfectly legitimate and not especially large (as these things go) claim some years ago.

DavidTC
November 27, 2007 5:33 PM

First, there's the rationing issue. This is not a minor problem, and many other countries with nationalized systems have started privatizing portions of their system to deal with the shortages. I'd warn liberals not to be so blithe about this aspect of the problem.

Rationing and absurdly high prices are two possible results of a supply and demand imbalance.

Guess which one we have now?

Think I was going for 'absurdly high prices'? Nope. We currently have both. It's just the rationing is harder to notice because it happens by people 'choosing' not to get medical treatment they need but cannot afford. That's 'rationing' in a free market, which is fine when the product is fancy hats, but not so much when it's human lives.

This is opposed to the rationing that would happen under government control, specifically, that doctors and medical establishments would triage based on need and urgency.

The solution to this supply and demand imbalance to is make sure we actually have enough medical personal and facilities to handle the people in this country. We do not have those, at this moment, but that is hardly the fault of a plan we have yet to implement, it's the fault of the current health insurance system which has been sucking more and more money out of the health care system and driving it to the brink of collapse.

Asserting that the current system is so horrendously broken that switching to the new system will not instantly fix everything is hardly a good reason not to switch. We need to switch now before more hospitals break. (Locally, we're close to losing Grady. Thank God Emory owns something like 5% of Coca-Cola so can finance itself.)

Second, and more importantly, IMO, is the fact that if the government pays for your health, they own your body.

Whereas when the insurance company drops you, the bank owns your house.

Anything the government could regulate with a national health care system they could regulate without one, right now. That boogeyman doesn't scare anyone anymore.

Derek Copold
November 27, 2007 5:34 PM

...because what we have now is not working for too many people and the anxiety level is rising steadily.

Fine, so let's deal with the real anxiety-causing situations, which are a small minority of health-care cases. It'll be a good test of the government's ability to deal with health care. It's certainly a more attainable goal than trying to take over 14% of the economy, and it would keep some of the initiative with individuals.

stefanie
November 27, 2007 6:21 PM

Derek Copold says: Fine, so let's deal with the real anxiety-causing situations, which are a small minority of health-care cases.

No, they're not "the minority." Two things are eating up US health care costs - the incredible expenses of "end of life" care (i.e. the last year of final illness), and the costs of treating complications of chronic illnesses like diabetes, heart disease, high blood pressure, etc.

Catastrophic insurance will deal with neither of these.

The mantra everyone's chanting now is "lifestyle, lifestyle," but that's probably not going to make much of a dent. No one is going to touch Medicare compensation to hospitals for ICU payments to people whose lives are extended perhaps 3-4 months by extreme measures. And many chronic illnesses, we are finding out, are *genetic.* Worse, we know they're genetic, but have no idea *how* to refine our genetic examination of these conditions, to find out what the best treatments are - if there even are any.

Countries with national health care services are experiencing the same problems as we are, only from a different angle. Here, we cling to jobs many of us hate because of health insurance. In Canada, doctors simply leave and come to the US (where they open plastic surgery clinics), leaving Canadians with far less choice in health care than they might have otherwise. In Great Britain, rationing for some patients has gotten so bad that they go to Malta or India for necessary surgeries. Here in the US, we would rather expend public funds to treat people with diabetic comas in the ER, or amputate their limbs, rather than *pay* for the primary care that would help them control their diabetes.

Point of information about the coupling of health insurance to jobs. It was in the early 1970s that Richard Nixon (with Congress) ordered wage and price controls to "fight inflation." Congress passed a law allowing companies to give medical insurance to their employees - and take a tax break for it - as a way to do an end run around the wage and price controls they themselves had set up. Medical care costs were *far* lower then than now. So insurers set up group insurance plans to cater to these employers (the bigger the better, because the bigger the group), and the employers got a tax break for the costs of the plans.

IOW, they created a monster.

I'm not sure that decoupling jobs and health insurance would even work now. If you took away the tax break for employers, many would simply drop health insurance. This would leave many entirely without insurance, because just about *everyone* over the age of 30 or 40 is probably by definition "uninsurable" by private, individual policies.

Derek Copold
November 27, 2007 6:25 PM

This is opposed to the rationing that would happen under government control, specifically, that doctors and medical establishments would triage based on need and urgency.

No, what'll happen is that those with political pull and connections will get priority treatment, and everyone else will get whatever's left over.

Asserting that the current system is so horrendously broken that switching to the new system will not instantly fix everything is hardly a good reason not to switch.

I don't think it's THAT horrendously broken. People come from all over the world to get treated here. Something is working. A lot of the countries being lauded for nationalized health care are now trying to privatize their systems, so something there isn't working as well.

What I think you mean is that a lot of lower- and middle-income folks are vulnerable, and I can agree with that. This is why I'm saying let's fix THAT problem with universal catastrophic coverage. That way, you're still responsible for the small stuff, but covered in case of a disaster.

The solution to this supply and demand imbalance to is make sure we actually have enough medical personal and facilities to handle the people in this country.

Shortages are hardly unique to the U.S. Canada, Britain and even France suffer their own shortages.

Derek Copold
November 27, 2007 6:35 PM

No, they're not "the minority." Two things are eating up US health care costs - the incredible expenses of "end of life" care (i.e. the last year of final illness), and the costs of treating complications of chronic illnesses like diabetes, heart disease, high blood pressure, etc.

I'm talking about cases more than cost, and I was referring more to people of working age, not end-of-lifers. That's the main subject of this thread. If the complications you're talking about run into the "I'm going to lose my house" zone, they should be covered under a catastrophic plan. I'm even open to tax breaks and credits for preventative screening.

But should the feds be funding every every broken bone, birth or other one-time procedure? Because if they do, those costs will really begin rising through the roof, as has happened with every other medical expenditure we've taken on since the 1960s.

Susan
November 27, 2007 8:23 PM

All health systems "ration," including ours. Even we can't afford to do everything for everyone. We ration on the basis of ability to pay, a very poor system. This tends to route money to the terminal care for the wealthy dying, and away from well baby care for low-income toddlers. Other industrialized countries ration on a more sensible basis, or try to.

More personal stories. My elder daughter had a baby courtesy of Scottish National Health almost seven years ago. (At the Royal Infirmary in Edinburgh, quite possibly the best obstetric hospital in the world.) The baby was transverse, so she had a C-section.

Well, she liked that. No labor pains. So when she got pregnant again, she wanted to do that again. Here, if she had had insurance, she could have.

But Scottish National Health said, "no, we've run the numbers, and you don't need a C-section. Tough." And so, crying and moaning about the injustice of it all, she had her second baby the way we all do. Both children are fine; the mom had to go through a little pain, but oh well.

That's the kind of rationing that makes sense.

But should the feds be funding every every broken bone, birth or other one-time procedure? Because if they do, those costs will really begin rising through the roof

Derek, you're confusing me. Are you suggesting that right now, as it is, those broken bones are not being treated? If broken bones are being treated, and I sincerely hope they are, how would public funding cause that same cost to "rise"?

Derek Copold
November 27, 2007 9:58 PM

Derek, you're confusing me. Are you suggesting that right now, as it is, those broken bones are not being treated? If broken bones are being treated, and I sincerely hope they are, how would public funding cause that same cost to "rise"?

Yes. Either that, or the government puts a cap on the price, which will lead to a shortage of people able to do it. So, that limited pool of people will either continue to do the broken bones, leading to shortages in other areas, or the bones will be put off.

Well, she liked that. No labor pains. So when she got pregnant again, she wanted to do that again. Here, if she had had insurance, she could have.

We're not necessarily talking about elective c-sections, Susan. We're talking denied or delayed cancer treatments and hernia operations. Also, bear in mind that Britain has started looking at privatizing NHS duties. I don't how much of that affects Scotland, but the system is hardly perfect.

I'm not going to pretend to have all the answers. As Rod has pointed out, we have problems here. But we also have advantages, too. Our cure rates are better than other countries for a lot of diseases. What I want to do is move our system to where we can take care of the truly financially ruinous situations, but we don't do so by handing over the entire health care system to government that hasn't proved itself very nimble when it comes to social services--like public housing, for example--and thus lose the innovation that's made medicine so much better over the past few decades.

Another thing to consider, when the GOP was pushing the Patriot Act, I warned friends that there's no way they'd give that kind of power to someone like Hilary Clinton, who could very well be president in 2008. Now consider this, do you want to put this much responsibility in the hands of a government that could very well wind up being led by another George W. Bush. I'm sure you think it'll never happen again, but in 2004, very few Republicans thought HRC would be a serious contender.

Susan
November 27, 2007 10:51 PM

Our cure rates are better than other countries for a lot of diseases.

Yes. But our overall statistics stink.

About bones, I still don't understand. Let us (charitably) assume that all fractures are now being treated. (If they aren't, this is horrible, and needs to be remedied NOW!) So, if the government takes over paying for this, wouldn't the cost be the same? What difference does it make where the check comes from?

I'm hoping that you're not suggesting that some fractures are not being treated now, and that we should leave it that way.

European health care systems are not perfect. But I am left with the fact that the US spends more per capita on health care than anyone on the planet, while our health statistics - pick your statistic, infant mortality, longevity, you name it - put us well down the list. How to pay more and get less. This would be OK why?

Derek Copold
November 27, 2007 11:17 PM

I am not saying fractures aren't treated now. I'm saying they should probably be paid for privately, both to keep costs down and to discourage unhealthy behavior. Why should money be taken out of your and my pocket to pay for some jack@ss' skateboarding stunts, for example?

So, if the government takes over paying for this, wouldn't the cost be the same? What difference does it make where the check comes from?

Have you ever heard the saying "An elephant is a mouse built to government specifications"? Government expenditures by nature overpay. No one has direct ownership over the money, so competition is muted. Thus, people can raise the price with little complaint--until it goes one step too high, at which point a price cap gets slapped down. This is not a bug. This is a feature. Cost overruns come with government expense. We put up with it for a lot of things because there's just no way around it. That may eventually turn out to be the case for some drastic medical procedures, but it shouldn't be the case for routine things.

But I am left with the fact that the US spends more per capita on health care than anyone on the planet, while our health statistics - pick your statistic, infant mortality, longevity, you name it - put us well down the list.

That's because our statistics don't compare well with unlike societies. Factor out murder, and the life expectancy rises. Factor out the preemies, and infant mortality numbers change. Dr. Gratzer points this out in the City Journal article I linked to above.

As far as costs go, given our government's track record, making health care a government concern won't fix the problem. There has yet to be a government program of this nature that hasn't exploded well beyond its projected costs. And the costs are rising in other countries, too. They've only been able to keep them down through price controls, which has led to the kind of agonizing rationing I mentioned above--and thus has led many of them to begin privatizing portions of their services.

Derek Copold
November 27, 2007 11:20 PM

Susan,

I just noticed that my link got eaten above.

Here it is again:
http://www.city-journal.org/html/17_3_canadian_healthcare.html

Larry Parker
November 27, 2007 11:52 PM

Derek:

Since you have seen fit to insult my very being today, let me assure you that as far as my experience with health care is concerned, even if there may be a more market-oriented solution (as indeed, I hinted above there might be), our current mental health system is a disgrace.

(And I emphasize SYSTEM -- the doctors working in it are for the most part excellent, it's the hospitals and insurance companies that are the problem.)

Marian Neudel
November 28, 2007 1:06 AM

We rarely look at the "B" side of risk-benefit calculations: If there is no benefit, then any risk, however small, is too much. For instance, why should we accept the ever-present risk of finding ourselves uninsured and uninsurable in the "free market," in order to pay more money for worse results than citizens of countries in which the government assumes more of the responsibility for health care than our own?

[Another case of the same conundrum is nuclear power: at least in Illinois, nuclear power costs more than other methods. We citizens of the most nuclearized state in the country pay higher electricity rates than citizens of most other states. Why should we accept any risk from living near a nuke, for the privilege of paying more for our electricity?]

M.Z. Forrest
November 28, 2007 10:14 AM

As far as cure rates go, the US has higher rates due to earlier discovery. Having discovered things we are more likely to treat them quickly. Most of the time this is unneccesary. For example, enlarged prostates take upwards of 7-8 years to run their course. Many don't ever become cancerous. Yet we will still make men impotent and expose them to other risks on the chance they may develop cancer. But when we look at deaths per 100K from prostate cancer, the U.S., Canada, and Britain are fairly close to equal. So, be careful with statistics.

The one thing I find disconcerting about much of the conversation is the re-inventing of the wheel aspect. Based on the experiences of other countries, we have a fairly good idea what would happen if we went to various public models. There really isn't all that much mystery.

Susan
November 28, 2007 10:50 AM

MZF is right on target here. We're re-inventing the wheel. We have years of collective experience in the various European countries - whose results are just better than ours, no way around it - to draw on.

I'm wondering if maybe part of the problem is that Americans are so insular. So isolated from, say, Europe. Too few of us, especially among people who do not live on either coast, have spent substantial amounts of time in Europe, to get a flavor of how this thing could work; maybe too few of us travel at all. Hopefully all that is changing.

I know that my experiences spending about a month in Europe every year for the last 15 years has much changed and informed my own opinion. I keep thinking, "We're AT LEAST as smart and resourceful as these people, why can't we have universal health coverage too? Why are Americans the only ones in the industrialized world who don't? Whatever happened to Yankee ingenuity??"

It just won't do to say, "Well, European systems aren't perfect either." Of course they aren't, but there's a difference between imperfect and just not working at all. Anyone who thinks our system is working needs to (1) pull their head up and smell the roses, and (2) go back and read the personal anecdotes in this thread.

No matter who you are, unless you are a multi-millionaire who can pay all your health care bills out of pocket, if you think you and your family have secure health care coverage, you're wrong. Even if you are never canceled or limited or lose your coverage, millions of your fellow Americans are either at serious risk or are already unable to purchase health care and/or health care insurance.

We shouldn't have to live with this. It's unconscionable. And unnecessary.

Susan
November 28, 2007 11:50 AM

Oh, and Derek, you're already paying for that skateboard fracture. If both of you have insurance, your rates are affected by the claims of the skateboard guys. If he (or you) has no insurance, his injuries will be treated - inadequately - at public expense, and again, you're helping to pay for it. Very inefficiently, may I add.

Health care in the United States isn't cheap right now, as I pointed out before. We spend much more than anyone else, and get less for it. It's just that we're not spending our money very wisely.

Susan
November 28, 2007 1:42 PM

One more. Well, you may say, Susan's daughter is young (37, actually) and OK so far, but what happens to older people who really do get sick in Europe?

My daughter is in Europe because she married a European. My son-in-law has living parents my age (60's) and a living grandmother a generation older. I've watched this whole thing unfold all these years in this extended family. (When these young people got married all four grandparents were living.) Cousins, uncles, all that. I'm in close contact with all these people.

I donno, you guys, the thing just works better for young and old alike. (And the statistics bear me out.) Not only that, but your medical situation doesn't inform your employment choices in Europe like it does here.

For contrast, my daughter-in-law here is a Type I diabetic, which means, she can't buy health insurance at any price. This has a huge influence on where my son can work. He must work for an employer big enough to offer health insurance. Although he is an independent sort, much inclined to start his own business, he can't. Because he could never get insurance for his family.

Think. Think about the consequences of that situation for the larger economy, remembering that small start-up businesses provide a huge proportion of our new jobs, not to mention a huge proportion of our big enterprises of the future. (Microsoft and Apple both started in someone's garage.)

This problem has a huge and unfavorable impact on our entire economy.

Franklin Evans
November 28, 2007 2:07 PM

Quick aside: Susan, I did see your question to me about my labelling journalism corrupt. It kicked off a long train of thought that is still running its course. If you'd like to see my eventual response, and don't mind sharing your email address with me, write to me at madfedor@yahoo.com.

To the sub-topic of health care coverage:

In general, most people completely fail to understand the basic concepts behind insurance. Phrases like "you are paying for the expenses of others" made in a complaining or pejorative mode are -- and while I try to be polite, I must be blunt -- illustrative of that ignorance.

By definition, insurance is the larger group paying for the claims of the few. A person pays the premiums because he or someone he loves might some day be one of those with a claim. He is not paying for others, he is paying for the privilege to be one of those others if such a thing should happen.

I cannot emphasize that too much. By definition, good people.

The primary culprit in the damage caused by our present insurance climate is very simple: profit. Remove profit from the mix, and most of the inequities in insurance tend to disappear.

I'm in IT now, but for my first career I cut my baby teeth on life insurance, and ended it with the designation of pension actuary. I know the mechanics of insurance from the inside. I don't claim expertise, but I do claim to understand the basics perfectly. The sole difference between life insurance and health insurance is the payable event: death, or medical costs.

The comparison with socialized health care becomes simple: in a for-profit provider, the strongest way to maximize profit is to minimize claims payments. There is no other expense in the mechanics that comes close. In a universal coverage system, the strongest way to minimize costs (since profit is no longer a concern) is to maximize the health of the covered people.

[sarcasm] Gee, which works better for the average sick person? Let me see... maximize profits... maximize health... [scratches head)[/s]

We need to understand how it works before we can decide how we need to apply it to our situation. Free market competition simply does not work in health insurance, and the evidence is the millions of people who cannot afford the premiums.

Susan
November 28, 2007 2:28 PM

Franklin, you are a genius!

After all this talk, this is the answer!!

The primary culprit in the damage caused by our present insurance climate is very simple: profit. Remove profit from the mix, and most of the inequities in insurance tend to disappear.

The comparison with socialized health care becomes simple: in a for-profit provider, the strongest way to maximize profit is to minimize claims payments. There is no other expense in the mechanics that comes close. In a universal coverage system, the strongest way to minimize costs (since profit is no longer a concern) is to maximize the health of the covered people.

See, people, that wasn't hard, was it. Just get private insurance profit out of the picture, and we might possibly be able to make sense of this problem.

Matt Hines
November 28, 2007 2:34 PM

Does anyone know about Switzerland's universal health coverage mandate? They have a mixture of public and private coverage. They require all Swiss to buy some form of private insurance,and the there is a deductible made for what you pay in premiums.

They don't charge for pregnancies and if you are hospitalized you help pay for room and service charges.

Here are some aspects that would make it attractive:

1.they have a combination of public health providers, i.e., the University of Geneva Hospital.

2. subsidized private health, which means subsidized home care for difficult pregnancies, a handicap or old age sickness,

3. or private health providers.

All Swiss are allowed to choose which of these would fit their needs the best. It is freedom of choice in healthcare.

Insurance companies are required by law to provide a certain amount of coverage to clients.

Now why can't we do something similar in the states? A combination of public and private coverage, with a minimum legislative mandate?

DavidTC
November 28, 2007 2:35 PM

No, what'll happen is that those with political pull and connections will get priority treatment, and everyone else will get whatever's left over.

As opposed to people with money getting priority now?

And that's just stupid, anyway. I said doctors and hospitals for a reason. I am not, in anyway, proposing the government should have anything to do with who gets treated when.

What I think you mean is that a lot of lower- and middle-income folks are vulnerable, and I can agree with that. This is why I'm saying let's fix THAT problem with universal catastrophic coverage. That way, you're still responsible for the small stuff, but covered in case of a disaster.

If 'catastrophic coverage' is broad enough to actually solve things, then it, ipso facto, is national health care, except that we're inexplicably making people pay for their checkups, which is just stupid as regular checkup actually reduce the costs of health care. (And the whole thing would cost more, regardless, as now we're got to figure out which is which instead of just paying for it all.)

If it's not broad enough to pay for people with chronic conditions, then it wouldn't actually accomplish anything.

Here is one for you to answer: Someone get a pacemaker approximate every eight years. It costs roughly $20,000 now, it would cost half than in a sane health case system. Is that catastrophic or not? It's entirely predictable, so it's hard to see how it's 'catastrophic' in any useful meaning of the word.

What you have is a non-proposal. It doesn't make any sense. It's vastly more complicated than just paying for it all, and has exactly the same downside of emergency-room care...people would wait until minor health concerns are emergences.

Now, if you want some sort of deductible on certain things, just say it. Frankly, I think we should have negative deductibles...get a regular checkup, get 25 bucks. That would actually lower costs. (If people don't like that, we could simply charge then 25 dollars for the next medical procedure if they don't get a regular checkup, which comes out to the same thing.)

Susan
November 28, 2007 2:50 PM

It seems to me that one of the problems of applying "free market economy" to health care is that most health care expenses are not discretionary in any meaningful way. And the ones that are are the very ones which are the most important.

Two and a half years ago I fell off a horse and broke my arm. It hurt like anything, as you can imagine. Derek would say, tough luck, you shouldn't have been on that horse in the first place. He'd say it right up until he fell off his bike/was injured skiing/fell off his skateboard/tore a knee cartilage jogging/injured his shoulder swimming/fell off a horse himself/became obese from never getting any exercise. Hey, if I get hurt it must be my fault, yes? And if I can't afford medical care, I guess I'm out of luck, huh.

Once you've fallen off the horse or whatever, only some kind of nut doesn't seek medical help. That hurt SO MUCH that Derek's casual dismissal of fractures as sort of discretionary medical expenses makes my blood run cold. "Oh yes my dear, with hindsight we now see you shouldn't have been up on that horse in the first place, so now you're on your own. If you can't afford to have it treated, well, too bad, you got yourself into this." Luckily I have medical insurance (temporarily, like all of us) and I did get treatment, and the fracture healed well. (And luckily Derek isn't in charge of medical care!)

Sadly, the only medical expenses which are discretionary are the preventive ones. The tests you have even though you feel perfectly fine, which reveal the early stages of something that can be treated cheaply if we find it early. That kind of thing goes to the end of the line if you can't afford it.

Market economy works for plasma screen TVs because you can live without them. That fact drives the price down. If they all cost $20,000 no one would buy one, and the manufacturers would go out of business. That same dynamic doesn't work for my broken arm.

Susan
November 28, 2007 2:53 PM

I don't know anything directly about Switzerland's health care system, but I'd like to learn more. Anyone here with first-hand experience??

The Swiss are second (to us) in health care expenses per capita. Comparing results of course would be a joke if it were funny, which it isn't. It's like we were on different planets.

Franklin Evans
November 28, 2007 3:00 PM

Gosh, Susan, thanks. ;-)

Before my arm gets a sprain from the self-patting on my back, the gestalt is much more complex and must also be addressed.

Highlights (meaning: yes, I'm leaving out some details. Oh, and please assume good will on my part, and avoid reacting to the negative implications in the following; ask me first):

The exorbitant cost of medical school, coupled with the lack of a merit-based measurement of who should be trained.

The costs of health care are incredibly complex, from supplies to equipment, from having a mix of expertise amongst the professionals to paying them what they are worth.

The role of medical professionals in front-line health education.

We can't really fix it if we don't examine the entire process. We can and will find savings, economies of scale and waste. It requires a constructive and forward looking examination, not the setting up for finger pointing.

Peter
November 28, 2007 3:06 PM

They may be second but it is a fairly large gap. The Swiss only spend about 2/3 as much as the US per capita.

Susan
November 28, 2007 3:08 PM

Yes. The cost of medical school is intimately tied to the earnings expectations of the graduates.

I have a foster son who is black, and who grew up in the ghetto. His siblings are mostly in jail for drug dealing. He is now, after very much suffering and astronomical debt, a board-certified orthopaedic surgeon. He's making a ton of money, which first has to go to repaying all this debt. What's wrong with this picture?

Franklin says,"We can't really fix it if we don't examine the entire process. We can and will find savings, economies of scale and waste. It requires a constructive and forward looking examination, not the setting up for finger pointing."

Right on, yet again.

Susan
November 28, 2007 3:12 PM

Yes, Peter, good point. The result statistics for Switzerland, in the other direction of course, make you sick. Or at least they make me sick.

All this said. Market economy, murder statistics, how righteous we are for some reason, whatever. Why do we pay more and get less?

Peter
November 28, 2007 3:24 PM

There is a page full of stats at http://www.kff.org/insurance/snapshot/chcm010307oth.cfm for anyone who is interested.

Susan
November 28, 2007 3:29 PM

I cited another site, which has been "held for approval by the blog owner."

Beliefnet doesn't like information?

Hope it clears. At any rate, Peter, more statistics to the same point.

Susan
November 28, 2007 3:30 PM

Here we go maybe http://ucatlas.ucsc.edu/spend.php

Susan
November 28, 2007 3:31 PM

Moral: it's OK if you include the off-site reference in the same line, not OK if you give it its own line. Go figure.

Franklin Evans
November 28, 2007 3:44 PM

Peter, excellent citation. The missing comparison is to the relative health of the citizens of each country. I don't know myself what the relevant condition measures should be, but I'd guess they'd be the incidence (per 1,000, or 10,000) of certain conditions.

It's a difficult comparison to make. There are large differnences in health indicators depending on climate, pollution and other factors, I'm sure. The US is so large geographically that I'd also guess it would have to be broken down by region for any valid comparison.

Larry Parker
November 28, 2007 5:57 PM

Franklin:

Thank you for expressing my beliefs about for-profit insurance companies far more eloquently than I ever could have.

Franklin Evans
November 28, 2007 9:57 PM

Thanks, Larry. I have a 30-year head of steam built up: I started my first insurance job in 1976.

Kit Stolz
November 29, 2007 11:31 PM

Back to the Republican base...Joe Klein sits in with famous GOP pollster Frank Luntz as he focus-groups the CNN/YouTube/GOP debate.

http://www.time-blog.com/swampland/2007/11/dialing_the_republicans.html

Short version: the respondents hate any reference to helping the poor, even from nice-guy/minister Huckabee, and they hate any criticism of torture more. If you think GOP candidates are scary, just look at their base. And this is when the economy is more or less okay! If we head into a recession in 2008, which is quite possible, expect Republicans to blame immigrants, and don't rule out conspiracy theories or anti-Semitism. Wow.

Franklin Evans
November 30, 2007 11:37 AM

Kit, the linked article (well, essay) offers some interesting talking points, but it should be mentioned (though I despise the need) that the group consisted of just 30 people. It is dangerous at best to project their responses to any sort of larger population. Just sayin'...

Having written that, I am having difficulty keeping my natural paranoia suppressed. There is a lot of anger out there. Hunting scapegoats is humanity's favorite sport (arguably, of course).

I'm reminded of a line Aaron Sorkin wrote in The American President:

"He is interested in two things and two things only: making you afraid of it and telling you who's to blame for it. That, ladies and gentlemen, is how you win elections."

One might not like Sorkin's politics, which tend to shine quite brightly through his writing, but it's not hard to see the reality of that quote.

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About Crunchy Con

Rod Dreher is an editorial columnist for the Dallas Morning News, and author of "Crunchy Cons" (Crown Forum), a nonfiction book about conservatives, most of them religious, whose faith and political convictions sometimes put them at odds with mainstream conservatives. The views expressed in this blog are his own.

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