BEWARE THE PUBLIC OPTION TRAP

By Dick Morris And Eileen McGann
09.16.2009

As any good Persian rug dealer knows, you have to hold back a bargaining chit so that you can whip it out at the very end to tie down the sale. That’s how Obama is playing the so-called public option in his health care program. His plan seems to be to combine its abandonment with some form of tort reform and try to buy off some Republicans - maybe only Maine’s Olympia Snowe - to give moderate Democrats enough confidence in the veneer of bi-partisanship to win their backing for his bill.

But it’s a fraud and a trick.

Here’s why:

(a) Whether or not there is a public option makes no difference in the fundamental objection most elderly have to the bill - that it guts Medicare and Medicaid. All of the bills now under consideration cut these two programs by one half of a trillion dollars. And all of them require the medical community to serve thirty to fifty million new patients without any concomitant growth in the number of doctors or nurses. These cuts and shortages will lead to draconian rationing of medical care for the elderly, whether under a public option or not.

(b) The most likely proposal is to replace the public option with some form of buyer’s co-op. But since there is no currently existing co-op to serve as a vehicle for health insurance, it would have to be formed. By who? The government, of course. That would mean, as a practical matter, that the “co-op option” would be a government run plan for several years. In fact, they may not get around to setting up a co-op at all.

(c) The other alternative, mentioned by Senator Snowe herself, would be for a “trigger” mechanism. This provision would require the creation of a public alternative to private insurance plans if, after a specified period of time, they did not lower rates to a pre-determined level. Given the escalation of health care costs, it is almost inevitable that this provision would lead to a government plan. And, anyway, who says that the government insurance option would be more successful in reducing costs?

But Obama has to at least appear to be willing to compromise, so he has invented the idea of re-packaging the public option in order to seem to be flexible.

The key, here, is not to be distracted by the debate over the public option. It matters very much to private insurance companies whether the government becomes their competitor, but, for the elderly (and the near-elderly), the key concern is not the public option by the rationing and cuts projected under the program.

In the Clinton Administration, we worked hard to kill the proposed Medicare cuts and are no less committed to stopping them in the Obama presidency. That they were once proposed by the right and are now being pushed by the left makes no difference. A cut is a cut is a cut. And Medicare should not be cut.









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Comments

  1. ObamaCARE now less popular than before the “speech” to Congress | Fire Andrea Mitchell! on September 16, 2009 10:32 am

    […] don’t be fooled by the public option “trigger” option being discussed now. Dick Morris writes: As any good Persian rug dealer knows, you have to hold back a bargaining chit so that you can whip […]

  2. Abortion funding in Max Baucus’s America’s Healthy Future Act | Political Integrity Now on September 16, 2009 11:42 am

    […] Beware the Public Option Trap (Dick Morris) […]

  3. JimH on September 16, 2009 12:01 pm

    I’m really surprised that seniors are not storming the White House gates over the proposed cuts to Medicare. Most physician’s cannot afford to take a pay cut, lower reimbursements, and continue to treat those on Medicare. They will still have all the administrative costs associated with running their practice, probably more with Obamacare, yet they will receive less in reimbursements from Medicare.

    More work for less pay, I guess this is part of the “change & hope” we were hearing about.

  4. ConstantineXI on September 16, 2009 1:02 pm

    In talking to my father in law last night(who is a senior), he had trouble accepting that Medicare would be cut under Obama’s “reform” because Obama said it wouldn’t be cut. In other words, the mere fact Obama says it wouldn’t be cut is good enough for some seniors to trust Obama. While many seniors may not be fooled by this, all too many people still seem willing to believe in this guy(for some inexplicable reason).

  5. ConstantineXI on September 16, 2009 1:05 pm

    It is appropriate in some ways that Obama owns GM because in many ways Obama is a used car dealer. Obama says whatever it takes to try to get you to buy his lemons. The problem with this is that, no matter what he says, the product Obama is trying to sell you is still a lemon.

  6. ACLaRose on September 16, 2009 9:25 pm

    Mr. Morris - caught your segment on the late showing of O’Reilly tonight, after my husband and I chatted with you on the ‘D’ train to the game :-) I’m a full-fledged subscriber now and looking forward to your newsletters. Great content here! Keep it coming…. the more educated we are, the better we can spread the word to those that have yet to see the light!

  7. Engineer on September 17, 2009 6:34 am

    As a 58-year senior and I have some extreme concerns over what is being proposed in this health care bill. People who are well do not cost anything, it is only those who get sick (and seniors need more care) that cost money. So naturally cutting senior costs will save money. This is what Tom Daschle proposed in his book and is probably what Obama is following.

    There are phrases in this bill that can be interpreted in a variety of different ways (depending on your views) which could be detrimental (if true) to a lot of people as well as log jam the courts for years over interpretations.

    Examples include PG 801 Sec 1751 The government will decide which health care conditions will be paid; PG 430 Lines 11-15 The government will decide what level of treatment you will have at end of life; PG 341 Lines 3-9 Government has authority to disqualify Medicare Advantage Plans (Part B); Page 280 Sec 1151 The government will penalize hospitals for what government deems preventable readmissions.; PG 298 Lines 9-11 Doctors that treat a patient during initial admission that results in a readmission will result in a penalty.; PG 30 Sec 123 There will a government committee that decides what treatments/benefits you get; PG 42 An appointed Health Benefits Advisory Committee will report to the Secretary of Health and Human Services, who will make all of the final decisions for the Government Health Care Plan

  8. Thursday, September 17, 2009 — ExposeTheMedia.com on September 17, 2009 6:41 am

    […] Beware The Public Option Trap […]

  9. Govt Watch – Obama Nation – September 17th 2009 « Lighthouse Patriot Journal on September 17, 2009 11:35 am

    […] Obama continues to play the public option, as Dick Morris (and Eileen McGann) wrote: His plan seems to be to combine its abandonment with some form of tort […]

  10. Obama Panders to Illegals; Tries End Run to Provide Public Option for Illegals; Joe Wilson is right, You Liar! « VotingFemale Speaks! on September 18, 2009 11:38 am

    […] Morris: OBAMA’S HEADWIND ON HEALTH CARE and BEWARE THE PUBLIC OPTION TRAP and REBUTTING OBAMA’S HEALTH CARE […]

  11. The Idea of Re-packaging Regarding Healthcare - Politics and Other Controversies - City-Data Forum on September 19, 2009 11:37 am

    […] [quote=J E Bella;10827725]"But Obama has to at least appear to be willing to compromise, so he has invented the idea of re-packaging the public option in order to seem to be flexible." (posted on Thurs., Sept. 18 by Dick Morris) Why can’t all of America grasp that Obama’s goal is to APPEAR to be whatever passifies the public? Appear being the key word. If it’s all about appearance, is there really a loyalty to what is truth? Will we really know the truth according to Obama? I am sad to see this turning out to be a 4 year version of "The Emperer’s New Clothes."[/QUOTW] Is there any chance that what you are talking about is listed in this link. Sure there is a chance and I am, of course, in total agreement with you about what Morris says here. BEWARE THE PUBLIC OPTION TRAP at DickMorris.com […]

  12. CBO says Baucus Bill cuts deficit by increasing taxes and cutting Medicare/Medicade spending | Political Integrity Now on September 19, 2009 2:02 pm

    […] Beware the Public Option Trap (Dick Morris) […]

  13. BEWARE THE PUBLIC OPTION TRAP at DickMorris.com | SENIOR CITIZEN HELP on October 6, 2009 2:06 am

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