In the words of Mike Ross, a Democratic congressman from Arkansas, "We have to take steps to hold health care costs to the rate of inflation, or we will never balance our federal budget again, and health insurance costs will continue to become less and less affordable for the American people.
Just a few months ago, national health care reform seemed
solidly on the path to congressional approval. A popular new president made it
his top domestic priority and turned the process over to the leadership of
large Democratic majorities in both houses. The path became rocky, though, with
most Republicans and many conservative Blue Dog Democrats signaling concern.
President Barack Obama and the Democratic leadership in Congress
initially hoped they could put health reform on the fast track to passage and
planned to have bills out of both houses before the August recess. This
aggressive timetable was based in part on the fact that these reforms build on
our current system.
Republican talking points claim the president's health care
plan is, "too much, too fast, too soon." But Obama's approach to
reform may be more notable for what it does not change rather than for what it
does. The mantra of reformers has been, "If you like what you have, you
can keep it." Their proposals aim to strengthen employer-sponsored health
care, Medicare and Medicaid.
The details of this gradual policy change are strikingly
similar to those of the state health care reform bill we nearly enacted in California last year.
Most current versions of the bill include mandates for employers to offer and
individuals to carry health insurance, both with limited exceptions. There are
insurance-market regulations designed to eliminate the practice of denying
coverage to people based on pre-existing conditions. And there are
well-intentioned but very modest provisions to rein in the soaring costs of
medical care.
This is a very different approach from the Clintons, whose early-1990s reform proposal
would have fundamentally changed the financing and delivery of health care.
But How Much Will It Cost?
This time around, all was going very smoothly. But reform
hit a snag. In the Energy and Commerce Committee in the House, conservative
Democrats raised several concerns.
Among them were the nature of a public plan that would
compete with private insurers; the details of an "employer mandate"
to provide coverage and its effects on small business; and whether the plan
would truly achieve long-term savings in the health care system.
In the words of Mike Ross, a Democratic congressman from Arkansas, "We have
to take steps to hold health care costs to the rate of inflation, or we will
never balance our federal budget again, and health insurance costs will
continue to become less and less affordable for the American people."
To make sense of this dust-up, it is important to understand
there are two kinds of costs.
The first type is the part of the legislation that would be
included in the federal budget. Estimates put this price tag at approximately
$1.4 trillion over the first 10 years the program would be fully in place. The
second type of cost is the total amount spent on health care by any given
family in a year. These different costs can move in different directions.
If Americans get a better bargain on health care as a result
of government spending, then the size of the federal budget could go up while
total health care costs to families go down. But for this to be the case,
federal reforms have to improve the value we get for our medical spending.
Value is the combination between the quality of care and what we pay for it.
Follow Best Practices
Those two kinds of costs are at the nexus of the debate in Congress.
Many critics of the bills as currently written argue that more needs to be done
to make health care affordable for households while also putting the federal
government on a path to a more sustainable fiscal future. To do this, they say,
Congress needs to catch up to the best hospitals' and doctors' practices.
In response, congressional committees and their staffs have
worked to find ways to reduce the amount that both the government and American
families spend on health care by transforming the way health care is paid for
and delivered.
To understand why this is important, you need to know about
what Dr. Atul Gawande, a surgeon at a nonprofit teaching hospital associated
with Harvard Medical School,
calls the "battle for the soul of American medicine."
Please log in below through Disqus, Twitter or Facebook to participate in the conversation. Your email address, which is required for a Disqus account, will not be publicly displayed. If you sign in with Twitter or Facebook, you have the option of publishing your comments in those streams as well.
Your tax-deductible gift will help bring promising new voices and ideas into our nation's discourse, and help shape the future of vital public policies.
Join the Conversation
Please log in below through Disqus, Twitter or Facebook to participate in the conversation. Your email address, which is required for a Disqus account, will not be publicly displayed. If you sign in with Twitter or Facebook, you have the option of publishing your comments in those streams as well.