Stand Up For Health Care Blog

Lurking behind the curtain

Near the end of the Wizard of Oz, the little dog Toto pulls back the curtain and exposes a man behind the scenes who's pulling all the strings. And so today, in Toto's memory, we bring you the latest contribution from GOP spinmeister Frank Luntz.

Oregon Senator Jeff Merkeley says this about Luntz:

Dr. Luntz, the man who developed language designed to promote pre-emptive war in Iraq and distract from the severity of global warming, is at it again - this time with a messaging strategy designed to sink our historic opportunity for health care reform.

And Politico's Mike Allen reminds us that

Luntz, the author of the bestselling book "Words That Work: It's Not What You Say, It's What People Hear," has been involved in creating much of the language Republican lawmakers used from 1994 through 2004. . . . One of his coups was popularizing the phrase "death tax" for "inheritance tax."

Reading the Luntz memo - and you SHOULD read it - you won't know whether to yell or laugh. On the one hand, he urges readers to pretend that private insurance companies never, ever deny care to those in their plans:

Nothing will anger Americans more than the chance that they will be denied the healthcare they need for whatever reason. . . . So say it.  "The plan put forward by the Democrats will deny people treatments they need and make them wait to get the treatments they are allowed to receive." 

And, on the other hand, there's this remarkable pivot:

Make no mistake: the high cost of healthcare is still public enemy number one. . . . You can't blame [the failure of cost containment] on the lack of a private market; in case you missed it, capitalism isn't exactly in vogue these days.  But you can and should blame it on the waste, fraud, and abuse that is rampant in anything and everything the government controls.

The New Republic's Jonathan Cohn offers a useful factual refutation of Luntz here and here.

But now that we've seen the guy who is pulling the strings, we have to conclude with two observations. First, if you needed any evidence of how far we've come, how much the wind is at our back, read the Luntz memo: His strongest advice is to acknowledge the crisis because people are so fed up, they won't even listen to you if you try to minimize it. Although his goal is stopping reform, Luntz's images and language mimic the way we all talk about it.

Second, as wrong-headed and cynical as this memo is, do NOT underestimate Frank Luntz. His language is already being echoed by the opponents of reform and, as we've seen in the past, they're more inclined to all sing in harmony, out of the same hymn book, than we are. We need to figure out ways to expose the man behind the curtain and the ways he's trying to deceive American voters into opposing the very thing they want.

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Thoughts on Reform

Today, I had the privilege of speaking at the Senate Finance Committee's Roundtable on Coverage Issues in Health Reform, and I wanted to share some thoughts with you. For Americans, fundamentally reforming our nation's health care system is of utmost urgency. More people are going without health insurance, family budgets are tightening, and American businesses are unable to keep up with rising health care costs.  At the same time that the number of uninsured is rising, people who have insurance are struggling to afford rising premiums.

Families USA has two core goals for health care reform: 1) that everyone who currently has satisfactory health care coverage can keep that coverage, and 2) that those who do not currently have health care coverage can get it. The most effective way to achieve these goals and reform our health care system is to build on and improve what currently works in our system.

We recommend an approach that will expand coverage as part of health care reform that will especially help low income families: First, we want to build upon and strengthen Medicaid. Medicaid now covers approximately 60 million people who can't otherwise afford health insurance, but it has holes and it fails to protect many very vulnerable people. We want to fill those holes and makes sure that more families have access to care through Medicaid.

We also believe that middle class working families should receive subsidies to buy coverage in a regulated, reformed insurance market or "exchange." A public plan should be available to everyone in this exchange to help level the playing field.

Finally, we believe that working families should receive help with out-of-pocket health care costs, such as deductibles and copayments, which are keeping millions of Americans from getting care.

These three recommendations are critical to making health coverage affordable for those who today lack coverage or who are at risk of losing their health coverage.

So you might be asking - why Medicaid? Medicaid is specifically designed to serve low-income people and people with disabilities - people who cannot afford needed health care on their own. Medicaid guarantees comprehensive coverage to people with diverse health care needs. In addition, it limits how much people can be charged out-of-pocket for health care. Therefore, we think it is essential that the federal government step-up and strengthen the Medicaid program for everyone below a certain income.

Health care reform presents a tremendous opportunity to move forward and provide quality, affordable health coverage to everyone in our country-and to do so within the framework of our uniquely American system. Families USA believes that we can build on the best of what we have today.

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Who is Rick Scott?

Rick Scott, a wealthy entrepreneur and former head of the world's largest hospital chain, has emerged as the most outspoken opponent of health care reform. Proponents of reform couldn't have dreamed up a better villain than Scott, a rich businessman with ties to the health care industry. He founded and bankrolls Conservatives for Patient Rights, a group that claims to speak on behalf of all Americans, but which is really opposed to meaningful reform. Most recently, CPR launched a controversial ad campaign.

Scott's legacy as the hospital tycoon that built the Columbia/HCA hospital chain is tainted by the fraud scandal that led to his resignation. As the New York Times reports,

Mr. Scott was ousted by his own board of directors in 1997 amid the nation's biggest health care fraud scandal. The company's guilty plea and payment of $1.7 billion to settle charges including the overbilling of state and federal health programs was taken as a repudiation of Mr. Scott's relentless bottom-line approach.

Scott's tenure at Columbia/HCA before the fraud investigation further damages the credibility of his attacks on health reform and comparative effectiveness research. While he now cautions Americans that the government wants to ration their care (presumably beyond the rationing we already see with eroding coverage and high levels of uninsured), the Wonkroom reports that under Scott's leadership, Columbia/HCA hospitals were squeezed for profits to the detriment of patients.

Scott's Conservatives for Patient Rights has hired the PR firm famous for its Swift Boat Veterans for Truth ads. They'll need the best spin doctors in town to spread fabrications like those contained in Scott's letter published in The Hill recently.

Scott is working overtime to undermine health reform legislation that has yet to be written, while putting nothing on the table for Americans struggling with ever increasing health care costs. The guiding principles Scott proposes-"choice, competition, accountability and personal responsibility"-sound an awful lot like the White House's principles.

According to the New York Times, even some of Scott's allies are distancing themselves, saying that he is "counterproductive to their efforts for compromise."

Rick Scott is trying to tear down health reform before it gains more momentum; advocates for change cannot let his big money ad buys distract from the goal of comprehensive health care reform. SEIU has called on CNN and FOX News to refuse to air CPR ads, which are "grossly misleading." Sign the SEIU petition to ask the networks to stop airing the less than truthful ads or write a letter to the editor supporting universal health coverage instead of Scott's calls for more of the same.

discuss |  Permalink |  Category: Health Care Costs,Pre-Existing Conditions,Rick Scott,Underinsurance and Medical Debt,Uninsured Americans

Small business and health reform

Last week, the White House released a report pointing out that small business stands to gain a lot through health care reform. Small businesses are the lifeblood of the American economy, but the current health care system blocks their progress and innovation. The burden of health care costs on small business has implications for all of us.

According to the report,

Half of workers in small firms that do not offer health benefits are uninsured.... [Between 2000 and 2007] the percentage of small businesses offering coverage dropped from 68% to 59%, while large firms held stable at 99%.

More and more hard-working Americans are joining the ranks of the uninsured because their employers cannot afford to provide health benefits. For workers who are lucky enough to retain their health benefits, many have seen the quality of their coverage erode:

In the past two years, more than half of small businesses that offered coverage reported switching to plans with higher out-of-pocket costs in response to rising premiums. Another third switched to a plan that covered fewer services.

These numbers are bad for small business and bad for the economy as a whole. When employers can't provide quality health benefits, it hurts their ability to retain good employees and to keep their workers healthy and productive. And these dire statistics may discourage an entrepreneurial employee of a large firm from starting his or her own business, or even joining a start-up.

Small business leaders recognize this hindrance on their growth and performance, and

Nearly half of small business owners in a recent survey said that "making health care more affordable" is the idea Washington should address first.

Many of the options being discussed in Washington would be a big help to small business. These include things like prohibiting insurance companies from discriminating against small firms based on the health status of their employees, providing an insurance purchasing pool businesses could use to cut down on administrative costs, offering subsidies to low-wage workers to help them afford coverage, and offering additional subsidies directly to some small businesses so they can afford to offer coverage to their employees.

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Democrats Get Closer to 60

In a surprise move that broke in the Washington Post today, Pennsylvania Senator Arlen Specter has decided to switch over to the Democratic Party. In a statement, Specter said:

Since my election in 1980, as part of the Reagan Big Tent, the Republican Party has moved far to the right. Last year, more than 200,000 Republicans in Pennsylvania changed their registration to become Democrats. I now find my political philosophy more in line with Democrats than Republicans.

This is not just big news for Pennsylvania, but the nation as a whole since it brings the total number of Democrats closer to 60 - which would be a filibuster-proof majority if all Democrats vote along party lines. But Democrats shouldn't get too excited. As Specter stated:

My change in party affiliation does not mean that I will be a party-line voter any more for the Democrats that I have been for the Republicans...I will not be an automatic 60th vote for cloture.

The implications? "This really increases the likelihood that Senator Specter will be a helpful ally in health care reform," said Ron Pollack, Executive Director of Families USA. "It is unimaginable that he will run in the Pennsylvania Democratic primary without making a huge effort to pass health care reform."

This could be a game-changer for health care reform, but we'll have to wait and see how things play out.

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Bad times and big expectations

Americans are avoiding the doctor's office when they're sick, and they're struggling to pay the medical bills they get when they can't avoid seeking care any longer, according to a Kaiser Family Foundation poll released last week. The survey data reveal that over the past year,

Six in ten say they have taken ... steps to delay or skip care.... One in four Americans say someone in their household has had trouble paying medical bills.

However, such difficulties have not soured Americans on pursuing health care reform. In fact, the poll showed that,

A majority of Americans (59 percent) continue to say that economic challenges make it more important than ever to take on health care reform now.

Support for the idea of health reform is high, and it doesn't splinter when pollsters got into some of its proposed components:

[Sixty-seven] percent of Americans are favorably disposed to a public health insurance option.... [Seventy-one] percent say they support the idea of "requiring employers to offer health insurance to their workers or pay money into a government fund."

Americans are struggling in unforgiving economic times, and rightly see health reform as crucial to recovery.

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A public health insurance plan

Should health reform give people the option to buy a public health insurance plan? 

Our answer is "Yes."

That question - and answer - have generated a lot of discussion on the Hill and a fair amount of ink in the media.

 A public plan would be valuable for many reasons:

- It would create healthy competition and encourage the private sector to play fair;

- It would offer consumers more good choice about which plan best suits their needs.

Not everyone agrees with us, including the private insurance industry. They fear that competition with a public plan will drive them out of business.

E.J. Dionne outlines some of the political and ideological tug-of-war in a column in yesterday's Washington Post:

What if including a robust public plan has the effect of dooming a bill that gets affordable health insurance to everyone? Should public-plan advocates block any bill that doesn't contain their idea, as originally conceived? Of course not.

Dionne recognizes we have a window of opportunity to make real reform and points out some groups are placing an "emphasis on creative compromise in place of creative obstruction."

Dionne cites an example of a partnership between Families USA and PhRMA advocating that health reform include an expansion of Medicaid, a limit to out-of-pocket costs, and significant subsidies to help middle-income people purchase insurance. While not perfect, Medicaid is uniquely suited to serving the needs of low-income and vulnerable Americans. We must improve and expand Medicaid as a starting point for expanding coverage. It is extremely helpful to have PhRMA send this message loud and clear to Members of Congress.

Dionne makes an important point about creative compromises and his column is a valuable one. One clarifying note:  Dionne appears to suggest that expanding Medicaid is a substitute for a public health insurance plan option. That is not Families USA's position. Expansion and improvements to Medicaid are a foundation for expanding health insurance coverage. On top of that expansion, we support subsidies to moderate income families to purchase coverage-with the choice of a public health insurance plan.

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Three cornerstones of reform

Our goal is health care for all Americans. Currently, health care is unaffordable for too many middle-income working families and the poor.

To achieve our goal, we need several key proposals that are specifically designed to make coverage and care affordable:

1. For the poor, we need to expand the Medicaid safety net so it truly covers low- income people and families. We propose to establish a Medicare eligibility floor at 133% of the Federal Poverty Level - an expansion to adults who earn income below $14,000 per year, and families of four who earn less than $29,300. Today, in 43 states, adults who don't have dependent children are ineligible for safety net protection-even if they are penniless. For parents, the median income eligibility standard is a meager 67%

2. For people above the Medicaid eligibility levels, but who can't afford premiums, we need substantial sliding-scale subsidies so premiums can be affordable. This system, currently working in Massachusetts, has enabled the state to have the lowest portion of its population uninsured of any state.

3. We also need further subsidies so that a cap is established on out-of-pocket health care costs, such as deductibles and copayments. This would ensure that health care is truly affordable and would avoid medical-related bankruptcies.

We have entered a partnership with PhRMA to campaign for these essential elements. In the weeks and months ahead, we will launch a multi-million dollar advertising campaign, in addition to grassroots and lobbying efforts.

As Politico reported,

The partnership could significantly reshape the debate over health care reform.... The proposal could bolster the chances of expanding the Medicaid program, an option that Senate Finance Committee Chairman Max Baucus (D-Mont.) and the committee's ranking Republican, Sen. Chuck Grassley of Iowa, are reportedly discussing.

If we win these three cornerstones, which are needed to make health care affordable, we will go a long way toward the goal of ensuring access to high-quality and affordable health care - and coverage - for all.

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Small business, big deal

Whether you work for a small mom-and-pop shop or a large firm, your health coverage is a big deal.

Unfortunately, existing federal law doesn't treat your coverage at the mom-and-pop and the big business the same way. COBRA protections that allow workers to retain their health benefits by paying the full premium after leaving the job do not apply to businesses with fewer than 20 workers.

This major gap in legal rights for small business workers has always been problematic, but it's even more painful in a recession when many people are losing their jobs, and with them their health coverage. While COBRA premiums are generally costly, COBRA coverage may be the only available option for workers with less-than-perfect health. Furthermore, the economic recovery package that Congress passed in February gives a 65% COBRA premium subsidy to Americans who have been laid off, making the premiums far more affordable.

Families USA reported last week that, luckily, many states have so-called "mini-COBRA" laws on the books to extend the right to keep employer-group health coverage to workers in small businesses. And now, these laws are worth even more to terminated employees of small firms because they are eligible for the 65% COBRA premium subsidy if their state has a mini-COBRA law.

Many states have recognized the need to help newly-uninsured terminated workers from small businesses gain access to the federal COBRA subsidy. Families USA reports that since the economic recovery law was enacted, 23 states have taken action to enact or improve existing mini-COBRA protections. States have increased the length of time residents are entitled to mini-COBRA benefits; some have allowed laid off workers who declined mini-COBRA a second chance to sign up; and a few have required insurers to cover pre-existing conditions once people sign up for mini-COBRA regardless of gaps in health coverage.

While it is encouraging to see states working hard to prevent former employees of small firms from joining the ranks of the uninsured, there are still states that are letting these workers down. According to the report,

The following states do not have mini-COBRA laws, so workers losing jobs in small firms will not be able to continue the coverage they had at their jobs or get a subsidy to help pay the cost: Alabama, Alaska, Arizona, Delaware, Hawaii, Idaho, Indiana, Michigan, and Montana.

As the report's author, Cheryl Fish-Parcham, told reporters,

If someone has the misfortune to get seriously ill when they are laid off and uninsured, they may have a really hard time getting access to care, and they may be saddled with medical debt.

Ultimately, comprehensive health care reform is necessary to create a real safety net in difficult times, rather than the current patched-together protections that leave many consumers vulnerable.

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Reconciliation 101

In the past few weeks you may have heard the word "reconciliation" thrown around in the context of health care reform. 

So what is this mouthful, and why does it keep coming up? In short, reconciliation means that legislation cannot be blocked by a minority of Senators. Under reconciliation, legislation only requires 51 votes to pass on the Senate floor and it is filibuster-proof. This is important because controversial legislation can require 60 votes (a super-majority) to pass Congress, rather than a simple majority, otherwise the minority can block it with a  filibuster. Thus, reconciliation can be a tool to protect the majority's legislation from a few in the minority.

Support for reconciliation is mixed. Some members of Congress insist that using reconciliation for health reform would deny them input into the bill; others fear that, without the option of reconciliation, partisan opponents could derail reform. As Senator Max Baucus, chairman of the Senate Finance Committee said, "The real effort is to keep this bipartisan."

But if bipartisan support cannot be achieved, the reconciliation option gives leverage to members of Congress who are committed to ensuring that health reform passes this year.

Thing is, reconciliation must be written into the budget to even be considered - and this year it was. Reconciliation instructions were included in the House's budget, not in the Senate's budget. By doing this, reconciliation is still left on the table as an option for passing legislation, if it looks like a minority of opponents will use their filibuster power to block reform.  Ron Pollack, executive director of Families USA, has said this is "the best of both worlds": A bipartisan approach is the preferred route, but if it fails, Democrats will be able to move forward and ensure comprehensive health care reform becomes a reality this year. 

Also coming out in favor: the New York Times editorial board, which reminded us that:

When the Republicans controlled Congress they used the same expedited procedure to ram through controversial measures, including the enormous tax cuts for the wealthy that plunged the federal budget deep into deficit.

And,

It is a weapon that the Democrats would be foolish to give up without evidence that Republicans will truly cooperate in fashioning meaningful reform. Not one Republican in the House or the Senate voted for the budget resolutions, and only three supported the stimulus bill.

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