Did progressive organizations and members of Congress get completely rolled in the health reform negotiations? Nope.
By comparing the current state of health reform legislation to the most conservative proposals that were passed out of Congressional committee, a healthy list of concessions progressives forced out of the right-wing of the party becomes visible. If there were no alterations from the most conservative health reform proposals that were passed out of Congressional committees in 2009, then the current state of health reform legislation would have:
- $125 billion less for Medicaid, CHIP and exchange subsidies (total across all three programs);
- Numerous exceptions to Medicaid eligibility even for people below 133% of the federal poverty level (FPL from here on out);
- No minimum medical loss ratio for health insurance plans, instead of an 85% minimum medical loss ratio;
- The Stupak amendment, instead of the Stupak state opt-out that is in the Senate bill;
- No extra money for federally funded Community Health Centers, instead of increased funding to provide primary care to 16.2 million patients annually;
- An excise tax on high end insurance plans would start in 2013 (giving most unions no time to renegotiate contracts), and a lower threshold (making it less progressive);
- No 2.9% tax increase on unearned income, making the funding mechanism for the overall bill less progressive;
- A stronger individual mandate and fewer responsibilities for employers;
- No national exchange, instead of what appears to be both a state-based and a national exchange in the proposal form the White House.
Does this list of concessions mean that progressive health reform activists have won resounding victories up to this point? Certainly not–the current state of health reform legislation is far from ideal, and much closer to the right-wing proposals that passed Congressional committees in 2009 than the left-wing proposals that passed out of committee.
(Even the best proposals that passed out of committee are a far cry from what many progressives wanted. Then again, there are some conservative Democrats who want no reform at all. As such, I am only looking at proposals that passed committee, since those were the only viable proposals on either side.)
Still, it is an impressive list that should make any progressive activist who participated in the health reform fight proud, even if dissatisfied. You really did improve the bill, and have the opportunity to keep improving it.
In the extended entry, I provide extensive justification for this list of progressive improvements to the health care bill. I do so by comparing the most progressive, and least progressive, proposals to be passed either out of a Congressional committee, or by the full House or Senate in 2009, to the current state of health reform legislation. This analysis looks at ten key fights legislative fights over health reform that have occurred over the past year:
- The public option;
- Repealing the health insurance industry’s anti-trust exemption;
- Instituting a minimum medical loss ratio for insurance policies;
- Expanding primary care in low-income areas through Community Health Centers;
- Medicaid expansion;
- Exchange subsidy levels;
- Tax structure for funding the bill;
- Insurance exchange structure;
- Reproductive rights;
- Mandate
It is a lengthy post, but in order to develop a comprehensive list of ways that progressives had improved such a large piece of legislation requires a lot of detail. I have no doubt that there are some areas where my analysis could be cleaned up quite a bit, but at the very least I hope this is a good starting point in an important discussion. So many people who poured their guts into this effort need to know what they achieved, because if this bill passes they achieved quite a bit.
More in the extended entry.
1. Public Option–Total Conservadem victory
Progressive proposal (Passed by House Ways and Means committee, PDF page 6): Public option tied to Medicare rates, available to everyone on the new health insurance exchange. Estimated to cover 10 million people by 2019.
Conservadem proposal: No public option
Result: No public option
How did it happen? (You know this story) After House Progressives were unable to find the votes for the Ways and Means proposal, the House ended up passing a weaker public option that would have covered 6 million. That proposal was further weakened in the bill sent to the floor of the Senate, which was a level-playing field opt-out that would have covered 3-4 million. When even that was dumped at the behest of Blanche Lincoln, Mary Landrieu, Joe Lieberman and Ben Nelson, a Medicare buy-in compromise that would have covered around 1.5 million was adopted. And then, that was dumped because Joe Lieberman backstabbed everyone, and the Obama administration backed Lieberman.
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2. Anti-trust exemption–Current Conservadem victory, but pending
Progressive proposal (included in House bill): Repeal anti-trust exemption for health insurance companies
Conservatdem proposal (Senate Finance committee bill): Don’t repeal it.
Result (Senate bill): No repeal of anti-trust exemption, although the House passed it as stand-alone legislation. Might still have a chance of passing.
How did it happen?: Concession to Ben Nelson.
****
3. Medical Loss Ratio–Mostly Progressive victory
Progressive proposal (In the early December Medicare buy-in agreement): Require a minimum medical loss ratio of 90%.
Conservadem proposal (In Senate Finance Committee bill): No minimum medical loss ratio.
Result (In the February White House proposal): Minimum medical loss ratio of 85%.
How did it happen? The 90% loss ratio was originally included in the early December Senate deal on the public option as a concession to public option supporters. It was nixed by CBO when it declared such a provision would make all private insurance a government program.
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4. Community health centers–Mostly Progressive victory
Progressive proposal (In the House bill): Increase funding for Bureau of Primary Health Care within the Health Resources and Service administration (aka, the federal Community Health Center program) by $14 billion total over next five years. At current rates of service–$2.5 billion (PDF page 6) for 20.27 million primary care patients in fiscal year 2011– this would expand community health center patient base by 22.7 million.
Conservative proposal (in the Senate Finance Committee bill): No increase.
Result (in the Senate bill): Increased funding of $10 billion total over next five years. At current rates of service, Community Health Centers will provide primary care to 16.2 million additional patients.
How did it happen?. Bernie Sanders got this result in exchange for his vote in the Senate. Also, while some have doubted the ability of the Community Health Centers to provide primary care for so many patients at such low cost, the simple fact is that they do. Kaiser has more information on Community Health Centers.
****
5. Medicaid–Even wash
Progressive proposal (House bill): 150% FPL eligibility with no exceptions; $425 billion in outlays; 15 million people covered
Conservadem proposal (Senate Finance Committee): !33% FPL eligibility with numerous exceptions; $345 billion in outlays; 11 million people covered.
Result (White House proposal). 133% FPL eligibility with no exceptions, over $400 billion in outlays, between 12 million and 14 million covered.
How did it happen? By an odd circumlocution, Nelson actually did something good for the bill.
Congress was looking to expand Medicaid in the bill, but red-state Governors didn’t want to come up with additional revenue. So, as the bill progressed through the Senate, the federal government kept picking up more and more of the tab for states–including famous deals like the one Ben Nelson scored for Nebraska. Eventually, by the time the White House released its proposal, the federal government is paying for virtually of the expansion. Just about every state gets Ben Nelson’s deal for Nebraska, now. The proposed outlays from the White House might exceed those in the House bill.
****
6. Exchange subsidies–Mostly Conservadem victory Conservadem proposal (Senate bill): $436 billion in subsidies
Result (White House proposal): “slightly higher on average in the White House bill than in the Senate bill.” In total, the White House is proposing $75 billion more in Medicaid and exchange subsidy spending then the Senate bill.
How did it happen? In September, President Obama demanded the bills cost less than $900 billion over ten years, probably because the administration was afraid of the word “trillion” in the messaging wars. So, one of the two main expenses in the various proposals–exchange subsidies, or Medicaid / CHIP outlays–had to be reduced. Since Congress kept increasing the amount it was spending on Medicaid in the bill, the subsidies ended up on the chopping block.
**** 7. Tax Structure–Mostly Conservadem victory Conservadem proposal (Senate Finance committee): Payroll tax, excise tax on high-end health insurance plans
Result (White house proposal): No surtax on high income households; delayed and weakened excise tax on high-end insurance plans; tax on unearned income
How did it happen? Labor negotiated a delay and weakening of the excise tax, which the White House then expanded to the entire country to avoid appearance of special interest deal. White house largely adopted Conservadem approach otherwise, and closed funding gap with tax on unearned income.
**** 8. Exchange Structure–Unclear Conservadem proposal (Mainly Senate bill): State based exchanges with the reverse of the mixed bag listed above
Result (White House proposal): A state based exchange and a national exchange; no word on starting eligibility or expansion rate.
How did it happen? Kind seems like this one is still happening. Not sure how it will end. **** 9. Reproductive Rights–Mostly Conservadem victory Conservadem proposal (House bill): Stupak amendment that would prevent any insurance plan on the exchange from covering abortion procedures.
Result (Senate bill): Stupak amendment, but on an opt-out basis.
How did it happen?: Democrats apparently elected an anti-choice House of Representatives. Bad candidate recruitment will likely result in backward movement for reproductive rights under a Democratic government. That makes this mainly a Conservadem vistory.
**** 10. Mandate–Mostly Conservadem victory Conservadem proposal: (Senate bill): Basically no employer mandate; moderately stiff individual mandate (exemption if insurance costs more than 8% of income, fee of $750 for refusal)
Result (White House proposal): Some concessions (for example, refusal fee reduced to $695 or 2.5% of income, whichever is lower), but still closer to Conservadem proposal. ****
There are many more Conservadem victories than Progressive victories. Still, in every case except for the public option and the repeal of the anti-trust exemption, progressives wrung at least some concessions out of Conservadems and the White House. And Progs might yet still win a concession on the public option, and pass the anti-trust exemption. Progressives really did make the bill better in substantial ways.
Progressive proposal (House tri-committee): $773 billion in subsidies
Progressive proposal (House proposal): Surtax on high-income households,; no excise tax on high-end health insurance plans
Progressive Proposal (Mainly the House bill): National exchange that would quickly open up to entire country. The House bill had a national exchange, but from there it gets decidedly mixed. The Senate bill allows more businesses to be eligible at the exchange, and the House bill opens up the exchange to the whole country one year faster than the Senate bill.
Progressive proposal (Several bills at the committee level): No change from existing law.
Progressive proposal (Mainly House bill): Strong employer mandate, minimal penalty for individuals who choose not to purchase
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