Reid: The public option is in, with an opt-out
Kari Chisholm
Senator Harry Reid (D-NV), the Senate majority leader, announced today that the health care bill he will put forward in the Senate will include a public option - with a state opt-out provision.
The opt-out is certainly more progressive than the opt-in idea that had been proposed by some. (Should it start with 50 states and count down? Or with zero states and count up? More is better, as TPM's Josh Marshall explains.) Reid also rejected the idea of a trigger, which had been advanced by Senator Olympia Snowe (R-ME).
No word yet on all the other details, including who would be eligible to participate (just a few million Americans, or all Americans - as Senator Ron Wyden wants?); and whether the public option entity would be able to negotiate rates with providers, or if rates would set at Medicare rates (perhaps with a +5% fee, as pushed by Speaker Nancy Pelosi.)
Lots and lots of coverage over at Talking Points Memo.
Update: Here's a statement from Senator Jeff Merkley:
“It has been clear from the beginning of this debate that a public option is absolutely necessary to provide consumers with more choice, hold insurance companies accountable and keep costs down.“Senator Reid made the right decision to include this critical component in the merged legislation. States may choose to opt-out based on their individual needs and the input of their citizens, but this provision will ensure that most Americans will have the choice between private insurance or a public plan that operates on a level playing field. This is a reasonable compromise to this issue and takes us one step closer to action by the full Senate to finally pass health care reform and fix our broken system.”
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Oct 26, '09
Reid also rejected the idea of a trigger, which had been advanced by Senator Olympia Snowe (R-ME).
Do Reps have to bring guns into everything?
Seriously, I actually agree with Reid's logic about opt-out being significantly better than opt-in. In terms of legislative compromise, specifically, who does this bring along that would otherwise have balked?
2:16 p.m.
Oct 26, '09
Now all we need is for the final Senate Bill to mirror the HELP bill in that it immediately requires family policies to cover young adults up to age 26. Then I might get to have health insurance again!
Oct 26, '09
Regardless of what comes out of Congress regarding health care/insurance reform Americans will enjoy benefits that will fall considerably short of what other more socially advanced and humane nations have. Of course, Democrats will put a smiley face on this and say it is a step forward. True. But before we become jubilant and pop the champagne, let's keep our eye on the ultimate goal. Something on a par with what France, Italy, other Western European nations, and Japan and Taiwan now have. That's will take many more steps than this first out of the senate.
3:55 p.m.
Oct 26, '09
I'm actually kind of surprised that we're not seeing more excitement from the public option advocates that have been filling our comment threads for months. Where did y'all disappear to?
Oct 26, '09
We're watching, listening, moving and shaking, Kari. Small business owners are pushing for a stronger version as the bills come to the floor of both houses.
But commendations all around to the senators who crafted a bill that at least includes the framework for a strong public option.
Oct 26, '09
Will gender re-assignment surgery be covered under the free public option? I make about $35K a year and would like to become 'Stacey'.
Oct 26, '09
Most of us public option supporters aren't going to be thrilled by a public option that has only about 10 million people, let alone one that has even fewer people because red states are opting out. Let the people into the public option. Don't exclude us!
Oct 26, '09
"I'm actually kind of surprised that we're not seeing more excitement from the public option advocates that have been filling our comment threads for months. Where did y'all disappear to?"
Maybe they're waiting to read the fine print.
6:05 p.m.
Oct 26, '09
that has only about 10 million people, let alone one that has even fewer people because red states are opting out
You do understand how this opt-out thingy works, don't you Bradley?
Think back to the stimulus:
Red state pols strut and fume, and vow to never ever bow to sanity.
The bill passes anyway.
Red state pols start handing out giant checks at photo op town halls.
Their constituents get services and the pols get to talk out of both sides of their mouths.
Everyone is happy.
Oct 26, '09
Kari, If the Dems pull this off, I will be the first to apologize for my snarky attitude. I'm encouraged but I've been hurt before. I'm encouraged but let's not celebrate too soon. Politicians have a propensity for self-congratulation and symbolic acts. "At least we tried" will not work this time. If anything the Dems should realize they have to deliver here or they're going to take a ton of blame. However meaningful healthcare reform with a public option would prove that America is on the way back from the hideous Bush years. Not just back but...improving. Imagine that concept. Imagine the case the Dems could take to the voters. From an election standpoint it is such a no-brainer that - in an ironic way - it serves to illustrate the disastrous grip the corporations have on Congress. Public option could be passed DESPITE being something the American People want.
Oct 26, '09
"If the Dems pull this off,..."
The vote on this issue will say a lot about the Democratic Party.
Oct 26, '09
Hard to find details about this proposal. Aside from the opt out clause (goodbye Mississippi) exactly who can purchase insurance in the public option plan? Can I pound the conference table tomorrow and tell Blue Cross they either cut my corporate rates by 15% or we take our business to the public option plan? I don't think so. Anybody have a link to the actual language of the bill?
Oct 26, '09
Kari, I'm excited. I thought somehow, as frustrating and dysfunctional as the Senate is, they would find a way to get this done. I actually think the opt-out is a piece of political genius, as it puts the onus on the Rs to turn down a vital public benefit to their own constituents, while at the same time giving political cover to the blue dog scaredy cats and fence sitters.
Oct 26, '09
Anyone want to start a betting pool of which states will opt out? Oklahoma's a pretty sure bet.
Oct 26, '09
Posted by: Stu | Oct 26, 2009 4:49:18 PM
Will gender re-assignment surgery be covered under the free public option? I make about $35K a year and would like to become 'Stacey'.
It is in the Netherlands, and they suffer none of the evils that have been used to proclaim that the US can't have quality health care.
Oct 26, '09
One worries about a "Zurich Central Park" effect. They tried a more progressive drug policy, and it became a unmanageable ghetto, because the surrounding areas didn't "opt-in".
One could imagine states like Wyoming, Utah and Nevada deciding that they really don't want anyone that can't pay their own way. The riff-raff can move to California, Washington, and Oregon. And the un-insured may well vote with their feet, Ms. Mel.
In the old west you sometimes had to have a "grubstake" before entering an area, so that you didn't become stranded and require any kind of public assistance.
Could this be the beginning of a 21st century grubstake? Oh, look, the sponsor is from Nevada. Just an observation. No Hyperactive CTG Syndrome, here, Kari!
8:43 p.m.
Oct 26, '09
I'm actually kind of surprised that we're not seeing more excitement from the public option advocates that have been filling our comment threads for months. Where did y'all disappear to?
Why should we be excited when these folks are doing the job we elected them to do? The feeling I have is more of "It's about time"
Oct 26, '09
Kari - Quit once again pimping for your client Wyden and his re-election.
In typical Wyden fashion, as with so many issues, people cannot be allowed to forget that he has done nothing to fight for the public option to this point. The only question right now is what is he doing to put the heat on wavering Democrats and Olympia Snowe to get the 60 votes to stop a DEMOCRATIC filibuster. Because that's what we are actually facing, not a Republican filibuster.
Here's a little something else to remind people just how little credit, and in fact how much criticism, Wyden actually deserves:
Expressing a preference for the public option is not the same as fighting for the public option. Telling Harry Reid "good luck with that" is not the same as the president saying, "I am there helping Reid fight for those final votes."
Ron Wyden has been even less of a genuine advocate for the public option than the President, so this statement says exactly why we have to keep the pressure on Wyden --- and why he deserves zero credit unless and until he is out there putting withering public heat on Democrats and Republicans who would support the Democratic filibuster.
12:52 a.m.
Oct 27, '09
Uh, Mr. Heat -- while accusing me of "pimping" Ron Wyden, I'll merely note that you're the first one on this thread to mention his name.
12:54 a.m.
Oct 27, '09
Anybody have a link to the actual language of the bill?
No. Literally, nobody. According to Senator Schumer tonight on Countdown, there are multiple variations of the language being submitted to CBO for scoring - and none are being released to the public. Only once they've got a hard score, and can select one of the technical alternatives will they release the language.
That said, there's been a lot of drip, drip, drip about the various details contained in the plan.
Oct 27, '09
Kari:
Uh, Mr. Heat -- while accusing me of "pimping" Ron Wyden, I'll merely note that you're the first one on this thread to mention his name.
Just how stupid are you Kari that you lie as badly as Rush Limbaugh?:
(just a few million Americans, or all Americans - as Senator Ron Wyden wants?);
Oct 27, '09
You are being betrayed, just as on Iraq, Afghanistan, climate change, bailouts for the rich, torture, etc.
Basic coverage under the proposals before Congress would provide an actuarial value of 65% or 70%. That means that the patients would be responsible for the remaining 30% or 35% of health care costs, although the proposals would limit the total amount for which the patients are responsible under the plans. Patients also would be responsible for out-of-network services and for services and products not covered by their plans.
If there is a cap on out-of-pocket spending, then why should the precise actuarial value make difference? Simply, the lower the actuarial value, the greater the likelihood that the patient will have to spend the full amount up to the cap. Thus more individuals will be negatively impacted. Also, the amount of the cap makes a very big difference. The proposed caps on out-of-pocket spending, when added to the patient's share of the premium, create a financial hardship for most low and middle income individuals and families.
Members of Congress are particularly concerned about the high costs for those at income levels wherein the subsidies supporting the premiums are phased out. Not only do they understand that making health care unaffordable is not wise policy, but they also understand the backlash that would likely occur when the most productive sector of our society finds out what hit them.
The report from the Center for Budget and Policy Priorities demonstrates how desperate our legislators are to find a way out of this highly flawed financing proposal that hits their base supporters the hardest. To soften the impact on middle income individuals and families, they are investigating a proposal to increase the amounts that low income families would have to pay, even though they already can't pay the current levels proposed. Perhaps they calculate that, at election time, bankrupting individuals without a political voice is a safer than facing a backlash from the base supporters. (http://two.pairlist.net/mailman/listinfo/quote-of-the-day)
Stop your secular mystical derangement.
Oct 27, '09
The public option is in until it fails cloture, then it will be out again.
And if it's out again, the question I have is whether the lefty D's will sabotage the whole thing in a fit of pique.
Oct 27, '09
"And if it's out again, the question I have is whether the lefty D's will sabotage the whole thing in a fit of pique."
What's left to sabotage? At best this so-called reform looks more like a band-aid for somebody on crutches.
Oct 28, '09
"The House Dem leadership has conducted its preliminary whip count and has tallied up less than 200 likely Yes votes in support of a health care reform bill with a robust public option, well short of the 218 needed for passage."
http://theplumline.whorunsgov.com/health-care/exclusive-robust-public-option-lacks-votes-to-pass-house-internal-whip-count-document-shows/
No universal health care. No public insurance option. Not out of Iraq. Not winning Afghanistan. No card check. No gays in the military. Trillions in debt. Giveaways to big banks. No Olympics. No shelter dog.
Oct 28, '09
As long as the opt-out states don't have to subsidize the opt-in states (or run up the federal debt) it will be fun to watch this idea implode.
If the federal gov't charges each state the cost of administering a public option in that state it will last for 3 years tops.
Oct 30, '09
Re: "No universal health care. No public insurance option. Not out of Iraq. Not winning Afghanistan. No card check. No gays in the military. Trillions in debt. Giveaways to big banks. No Olympics. No shelter dog."
Good list. I'd add:
More torture/rendition; more privatization of the military; more military spending and general militarism; more coverups; more kidnappings; more bailouts for the rich in general; more immunity of the powerful from prosecution; more "free" trade agreements; more corporatized education; more union dis-empowerment; more war crimes and crimes against humanity; more secret negotiations with corporate elites; more discrimination by faith-based grantees; and more support for energy, mining, logging, ranching and food-production norms.
But, except for that, Obama et al are a godsend.
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