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Health

Cost-Containment: Two Candidates, One Real Plan

Health care costs have become a major issue this election—and with good reason. The facts are staggering.

- In 2006, America spent approximately $2.1 trillion on health care—even as more than 47 million individuals went without insurance and thus without access to affordable routine care.

- Health care spending, which doubled between 1996 and 2006 and is expected to double again in the next decade, outpaces wage growth and inflation.

- Between 2000 and 2006, private health insurance premiums increased more than 90 percent.

Today, the Center for American Progress Action Fund released a new analysis on the cost containment approaches articulated by Senators Obama and McCain. The political rhetoric emanating from the leaders of the conservative and progressive movements sounds remarkably similar. Agreement on the problem of rising health care costs, however, does not translate to agreement on how to achieve those solutions. And as the new analysis shows, there is little evidence for McCain’s claim that conservatives’ health care reforms will address health care costs, which he has called, “the biggest problem with the health care system.”

McCain’s Extreme Plan Will Likely Not Contain Health Care Costs:

Sen. McCain’s plan asks the impossible of consumers – it asks them to drive down prices and improve quality through one-on-one interactions with insurance companies. Extensive research, however, consistently shows that the pooling of individuals into large groups is the most effective way to manage risk and promote efficiency. The individual market approach is both more costly and less efficient than the group market approach.

McCain’s Lofty Rhetoric Unmatched by Details:
An analysis of Sen. McCain’s plan shows that his cost-containment steps lack specificity—regardless of his efforts to camouflage his proposals with rhetoric about “freedom” and “responsibility” lowering costs. There are few concrete steps for implementation in his plan, and almost no detail about the resources he would dedicate to the effort.

Coverage for All Americans Is the Fundamental Way to Contain Costs:

Current research suggests that the closer a health care system is to providing affordable coverage for all, the more successful it will be in achieving significant cost containment. By extending coverage to all, we can achieve efficiencies, end cost-shifting and rationalize financing mechanisms. Given Sen. McCain’s refusal to provide health care coverage for all, any success he may have in cost-savings will be limited.

The Progressive Alternative:

In contrast, progressive leaders have consistently offered concrete steps to making sure all Americans have access to affordable health care, and to help bring down health care costs. And progressive governors have led by taking proactive action when possible, as this report shows. Indeed, for his part, Sen. Obama has articulated clear steps to implement his cost containment measures.

Climate Progress

McCain: Oil Rigs ‘Very Successfully’ Survived the Impact of Hurricanes

Yesterday, Nancy Pfotenhauer, Sen. John McCain’s (R-AZ) senior policy adviser, claimed that she had been “misinformed” when she falsely stated that Hurricanes Katrina and Rita “did not spill a drop of oil.” Today, McCain made another “misinformed” argument, claiming that oil rigs in the Gulf of Mexico “have survived, very successfully, the impacts of hurricanes”:

Q: I’ve been listening to your comments around renewable resources – solar, tide, and wind – you’ve talked a lot about that, but you keep peppering your comments with offshore drilling. But I’m not sure what you think the impact on our environment is based on that.

A: Keep the microphone. I’m aware that off the coast of Louisiana and Texas there are oil rigs, as we well know, and those rigs have survived, very successfully, the impacts of hurricanes – hurricane Katrina as far as Louisiana is concerned.

McCain is wrong. According to press reports, Hurricanes Katrina and Rita “tore through the Gulf of Mexico’s offshore oil and gas fields, toppling production platforms, setting rigs adrift and rupturing pipelines.” The U.S. Minerals Management Service reported that the hurricanes totally destroyed 113 offshore oil platforms.

The hurricanes cost Transocean, the largest offshore driller, “about $135 million in repairs, downtime and equipment upgrades” alone, and damage to offshore producers accounted for 77 percent of the oil industry’s storm costs. One offshore rig, the Ocean Warwick, drifted 66 nautical miles before running aground.

Here are some photos of the success that McCain is touting:

oilrigs.jpg

Cross-posted at ThinkProgress.

Politics

McCain: Oil Rigs ‘Very Successfully’ Survived the Impact of Hurricanes

Yesterday, Nancy Pfotenhauer, Sen. John McCain’s (R-AZ) senior policy adviser, claimed that she had been “misinformed” when she falsely stated that Hurricanes Katrina and Rita “did not spill a drop of oil.” Today, McCain made another “misinformed” argument, claiming that oil rigs in the Gulf of Mexico “have survived, very successfully, the impacts of hurricanes”:

Q: I’ve been listening to your comments around renewable resources – solar, tide, and wind – you’ve talked a lot about that, but you keep peppering your comments with offshore drilling. But I’m not sure what you think the impact on our environment is based on that.

A: Keep the microphone. I’m aware that off the coast of Louisiana and Texas there are oil rigs, as we well know, and those rigs have survived, very successfully, the impacts of hurricanes – hurricane Katrina as far as Louisiana is concerned.

McCain is wrong. According to press reports, Hurricanes Katrina and Rita “tore through the Gulf of Mexico’s offshore oil and gas fields, toppling production platforms, setting rigs adrift and rupturing pipelines.” The U.S. Minerals Management Service reported that the hurricanes totally destroyed 113 offshore oil platforms.

The hurricanes cost Transocean, the largest offshore driller, “about $135 million in repairs, downtime and equipment upgrades” alone, and damage to offshore producers accounted for 77 percent of the oil industry’s storm costs. One offshore rig, the Ocean Warwick, drifted 66 nautical miles before running aground.

Here are some photos of the success that McCain is touting:

oilrigs.jpg

Cross-posted in The Wonk Room.

Climate Progress

The Desolation of Coal

227469274_a0fdccd5c8.jpgKentucky has selected a site to build a $4 billion coal-to-liquids plant in Pike County that would produce 50,000 barrels of liquid coal a day. According to Kentucky’s Lexington Herald-Leader:

…The county would use federal and state grant money to put the basic infrastructure in place, including water and sewer, and the company chosen to operate the facility would pay for the rest.

County officials have not yet secured funding, but Ruther­ford said he has received support from Gov. Steve Beshear, as well as several others, including state Rep. Rocky Adkins, D-Sandy Hook.

Joe has written often about the climate dangers of coal-to-liquids, and recently about the health dangers of living near coal plants. There are also other consequences.

Read more

Security

A ‘Thaw In Arab Diplomatic Recognition Of Iraq’

Our guest blogger is Peter Juul, a national security consultant at the Center for American Progress Action Fund.

Yesterday, Kuwait named Ali Momen its first ambassador to Iraq since Saddam Hussein’s 1990 invasion. In doing so, Kuwait becomes the third Arab state (after the United Arab Emirates and Jordan) to name an ambassador to Baghdad in the last month. The small island kingdom of Bahrain, which headquarters the U.S. Navy’s Fifth Fleet, is also set to name an ambassador to Iraq. These appointments represent an important if small step toward cementing the regional legitimacy of Iraq’s post-Saddam political system.

While welcome, this thaw in Arab diplomatic recognition of Iraq can only go so far in re-integrating Iraq into the region. For one, the truly big fish of the Arab diplomatic scene remain on the sidelines. Egypt, traditionally a diplomatic heavy-hitter, is preoccupied with matters close to home – namely the Hamas-Israel cease-fire in the Gaza Strip – and no doubt remembers the kidnapping and killing of its first ambassador to Baghdad in 2005. Saudi Arabia continues to view the Maliki government as an Iranian pawn bent on oppressing Iraq’s Sunni Arabs, and treats it accordingly.

What’s more, diplomatic recognition in and of itself doesn’t solve Iraq’s outstanding problems with its neighbors. While the UAE agreed to cancel $7 billion in Saddam-era debt when it appointed its ambassador, Kuwait has put off the question Iraq’s billions of debt and war reparations. Nor are improved relations with Jordan likely to improve the status of Iraqi refugees residing there. In short, while better bilateral relations with Iraq’s neighbors are important, they alone will not provide panaceas to Iraq’s pressing international problems.

What’s needed diplomatically is an effort to coordinate Iraq’s reintegration into the region. As a recent Carnegie Endowment for International Peace report on regional diplomacy noted, “every country bordering Iraq has its own policies… on how to deal with the problem on its doorstep.” Meanwhile, American diplomacy has either been adrift or lacked follow through – even though the United States is the only country with the ability to overcome the regional collective action problem when it comes to Iraq.

But the United States won’t be able to spur its allies neighboring Iraq into action as long as it keeps 150,000 troops in Iraq indefinitely or according to some vague time horizon. This sort of policy fosters moral hazard among the neighbors, in which they pursue their own policies without regard to the consequences, knowing that if things go awry the United States will be there to bail them out.

Serious regional diplomacy can only begin with a credible American threat to withdraw from Iraq in an orderly fashion.

Security

White House Announces ‘General Time Horizon’ For Iraq Withdrawal; Is It ‘Conceding Too Much To The Enemy?’

aleqm5is6a6t3hbukvubwttysuzuvhdava.jpgWhen Iraqi Prime Minister Nouri al-Maliki first requested a timetable for withdrawal of U.S. troops from Iraq, the Bush administration swiftly shot down his proposal. “Timelines tend to be artificial in nature,” a Pentagon spokesperson remarked. “[W]e’re looking at conditions, not calendars here,” the State Department remarked.

But today, the White House has seemingly embraced a “general time horizon” for the withdrawal of U.S. troops in Iraq. The AP reports:

Iraqi officials, in a sign of growing confidence as violence decreases, have been pressuring the United States to agree to a specific timeline to withdraw U.S. forces. President Bush has adamantly opposed a timeline, and the White House said Friday that the timeframe being discussed would not be ”an arbitrary date for withdrawal.” […]

The White House says the two leaders, in a conversation on Thursday, agreed that the accord should include ”a general time horizon for meeting aspirational goals, such as the resumption of Iraqi security control in their cities and provinces and the further reduction of U.S. combat forces from Iraq.”

The White House’s concession today comes after years of resistance to even considering the prospect of a timetable for withdrawing troops, particularly when it came from Congress. Some lowlights of the administration’s stubborn rhetoric:

“Why would you say to the enemy, you know, here’s a timetable, just go ahead and wait us out? It doesn’t make any sense to have a timetable. You know, if you give a timetable, you’re — you’re conceding too much to the enemy.” [Bush, 6/24/05]

“Premature and public discussion of the withdrawal of U.S. forces from Iraq reinforces enemy propaganda that the United States will abandon its allies in Iraq.” [Undersecretary of Defense Eric Edelman, 7/16/07]

“I believe artificial timetables of withdrawal would be a mistake. … I will strongly reject an artificial timetable withdrawal and/or Washington politicians trying to tell those who wear the uniform how to do their job.” [Bush, 4/23/07]

“The…attempt to micromanage our commanders is an unwise and perilous endeavor. It is impossible to argue that an unconditional timetable for retreat could serve the security interests of the United States or our friends in the region.” [Vice President Cheney, 4/13/07]

The White House maintains that agreement “doesn’t reflect a shift in the U.S. position.” An Iraqi government spokesman, Ali al-Dabbagh, reiterated that an agreement should have the goal of “decreas[ing] the number of American forces in Iraq and later withdraw them.”

Media

The Business

Paul Krugman was observing that even though the political coverage is the part of the media that people like to talk about, it’s actually fairly marginal to the business. The New York Times is known for its hard news coverage, but he observes that from a business perspective it’s primarily a fashion and food publication that runs a small political news operation on the side. One issue of T Magazine, he says, pays for an entire NYT European bureau.

And, of course, I would add that the broader logic of the internet is toward disaggregation of content — the fact that newspapers cover such a wide array of content has to do with the economics of printing and distributing bundles of newsprint. In the future, fashion ads probably won’t be able to cross-subsidize any bureaux anywhere. On the other hand, there may be a corrupting impact of some of this cross-subsidization — I can’t help but suspect that the importance of real estate advertising to papers may have distorted their coverage of the housing bubble on the way up.

Yglesias

Truth Commission

Are we going to need a South Africa-style truth commission to find the facts and clear the air after Bush-era war crimes? To me it more and more looks like that will be the case:

But I’m basically pessimistic that anyone will be held accountable for anything at all. The relevance precedent is probably Iran-Contra where the guilty parties just . . . came back into government a bit later and anyone who mentioned that they were crooks was dismissed as shrill. I recall that during the telecom immunity fight the Washington Post specifically denounced immunity opponents on the grounds that they were interested in “using the tools of discovery to dislodge information about what the administration actually did.” Can’t have people know what happened!

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