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Rep. Sean Duffy (R-WI) ‘Very Concerned’ GOP Leadership Broke Promise To Offer ‘Replacement’ Health Bill

Last year, Republican campaigned on a promise to repeal all of President Obama’s health reform law, the Affordable Care Act. Realizing that many of the well-publicized provisions are wildly popular, like ending discrimination of so-called preexisting diseases, GOP leaders promised to “replace” the repealed bill with a solution of their own. However, after voting to repeal the entire bill, GOP lawmakers have done nothing to advance an alternative.

Freshman Rep. Sean Duffy (R-WI) promised during his campaign that he would only repeal health reform after finding a solution to replace it. However, he told a town hall meeting in his district this week that GOP leaders had convinced him to vote for repeal first, ensuring him that a replacement would be on its way. GOP leaders, Duffy said, told him that a replacement bill would be ready by the Spring. The fact that nothing has been proposed or debated all year has Duffy “very concerned”:

DUFFY: I believe, if we’re going to repeal the president’s health care plan, we should replace it. I still believe that. [...] As I dealt with the leadership, that was a concern of mine. And I got a commitment from leadership that we were going to come up with a replacement. And they told me we were going to do it in the Spring. In the Spring we haven’t come out with our replacement proposal and that has me very concerned. Because that what was we had talked about before we had the vote, “repeal and replace.”

Watch it (video courtesy of Americans United for Change):

Duffy’s frustration is understandable. As Jared Bernstein has noted in March, Republicans still had not brought up a bill outline or even begun the steps in the relevant committees to propose a comprehensive health bill. Moreover, the “alternative” offered by the GOP last year did nothing to cover tens of millions of uninsured and rein in widespread industry abuses. In fact, the GOP’s bill increased the number of uninsured.

Economy

Rep. Broun Fine With 250,000 Public Employees Being Laid Off, Says They Should ‘Get A Real Job’

Congressional and White House negotiators are currently trying to hash out a deal under which the United States will raise its debt ceiling, which is normally a non-controversial process that simply requires a vote on a clean bill to hike the limit.

Some obstinate conservatives have decried raising the debt ceiling, saying they will vote against any hike. Rep. Paul Broun (R-GA) is one of these conservatives. Appearing on conservative radio host Martha Zoller’s show today, Broun not only pledged to vote against raising the debt ceiling, but he also shrugged off the potential loss of a quarter million jobs as a result of doing so. Claiming that these employees would largely be public sector workers, he told Zoller that they should get a real job, anyway:

BROUN: We have created this huge debt. […] We’ve got to stop the outrageous spending that’s going on. We hear the CBO says well if we don’t raise the debt limit, it’s going to put so many people out of work, I don’t remember then number, I think it’s 250,000 or something, are gonna be put out of work. Well those are gonna be government employees that are put out of work. There are a lot of government employees that need to go find a real job!

Watch it:

For what it’s worth, Broun should know that it won’t be just a quarter million government employees who would lose their jobs through no fault of their own if the debt ceiling isn’t raised. The entire global economy would be hit by the repercussions of such an event, and millions of people worldwide would have their livelihoods threatened.

NEWS FLASH

HHS Gives States $40 Million For Chronic Disease Management | HHS has announced the “availability of approximately $40 million to strengthen and better coordinate activities within state and territorial health departments aimed at preventing chronic diseases and promoting health.” The money, made available through the Affordable Care Act, will target “the nation’s five leading chronic disease-related causes of death and disability: heart disease, cancer, stroke, diabetes, and arthritis.” Given that 70 percent of all health care costs can be attributed to treating chronic conditions, investing in their management and prevention means that the $40 million is a down payment on future savings.

Health Advocates, Govt Officials Surprised By Obama’s Efforts To Prevent Residents From Suing States Over Unfair Medicaid Cuts

As states across the country cut back on Medicaid spending — leaving many Americans with nowhere to go to get proper medical care — health care advocates in states like Washington, North Carolina, and Arizona are filing lawsuits to try to reverse the reductions. But the Obama administration is standing in the way.

On May 26, acting Solicitor General Neal Katyal filed an amicus brief in a Supreme Court case “arguing against Medicaid patients and providers suing California over changes to its Medicaid program.” As Lester Feder reports in the Politico, the move shocked many in the health care policy community, including Secretary of Health and Human Services Katheleen Sebelius, who had been working behind the scenes to head off the opinion:

Advocates for Medicaid beneficiaries say the case, Douglas v. Independent Living Center of Southern California, is important because it will be very difficult to enforce states’ obligations under Medicaid if the Supreme Court accepts Katyal’s argument. This could not only hurt beneficiaries who would have little recourse if Medicaid denies life-saving benefits, but it could also undermine the Patient Protection and Affordable Care Act, which relies on states to implement key components. The court will hear the case in the next term. [...]

The ACA will add an estimated 16 million people to Medicaid rolls. If the court follows Katyal’s argument, Rosenbaum said, “It would be like having an insurance policy on paper and no real way to enforce the kind of assistance that real people in the real world are supposed to get.”

And, she added, there’s “no stopping point … in terms of its spillover effects” if the Supreme Court broadly restricts individuals’ access to the courts over state implementation of such a federal program.

The administration says that it is opposing the right of individuals to challenge state because that would create “unmitigated litigation clogging up the courts,” but such lawsuits are already restoring health care cuts to the neediest Americans.

Last week, the Washington Supreme Court court found that the state Department of Social and Health Services “made broad assumptions based on children’s age and living conditions instead of examining the need in each individual case” and unfairly cut benefits. The ruling will restore care to as many as 3,000 children who are served by the state’s children’s health care program. The court also affirmed a lower court decision that reversed cuts to 1,000 seniors receiving in-home care.

NEWS FLASH

Meidical Devise Industry Opposing New Rules That Would Save Billions | Merrill Goozner has a fascinating look at how the medical devise industry has “launched an aggressive campaign to avoid tighter Food and Drug Administration rules that would help generate the information needed to show whether newer devices are actually superior to the ones they replace.” The regulations “would prevent billions of dollars from being spent on technologies that are not helpful for patients and are even harmful,” but many Republicans in the House and four Democrats are already lining up against them.

NEWS FLASH

‘A street full of protesters’ Confront Rep. Sean Duffy On Medicare | Freshman Rep. Sean Duffy (R-WI) faced a tough crowd at a town hall in Superior, WI yesterday, with “several outbursts” of people telling the congressman his party’s Medicare plan is “horrible policy.” Among “a street full of protesters” who greeted Duffy outside the event was one man who said, “We’re here to save Medicare.” “They’re robbing it, taking it away from us.” Watch a report from KBJR:

Featured

Gordon Bloom writes.

The GOP’s Mediscare: Democrats Have ‘Shred The Social Safety Net’

Greg Sargent notices that the GOP’s campaign to attack Democrats from the left on health care has once again jumped the shark with this ad from the National Republican Congressional Congressional Committee (NRCC) accusing Rep. Jerry Costello (D-IL) of supporting a “Democrat plan” that would “decimate” Medicare, “shred the social safety net,” and “leave seniors at risk”:

The awful plan Costello supported — otherwise known as the Affordable Care Act — extended the solvency of the Medicare trust fund by eight years and provided drug rebates to seniors who are in the Medicare Part D doughnut hole. The law also stabilized the program by instituting a board of health care experts and consumer advocates to make recommendations for lowering out of control spending in a transparent and accountable way. The House Republicans voted against all of these measures without offering any proposals for slowing down the rate of growth in the health care sector, so I’m sure they have a lot of very important things to say about how health care costs are going to bankrupt America.

Yglesias

The Case For Bureaucrats In Health Care

If you try to have a government agency produce shoes for everyone, the results will be disastrous. The point of the shoe-making industry, after all, is to make shoes that people like at a price they want. And individual consumers are much better equipped to assess what shoes they like and what they want to pay for them than are government bureaucrats. This is why capitalism is a good economic system, and it’s why the Soviet Union had terrible consumer goods. My maternal grandfather is an economist and he did some of his World War II service setting a national price control regime for shoes. It was a silly thing to be doing. Yay free markets!

Hence, David Brooks’ skepticism of statist approaches to health care policy: “if 15 Washington-based experts really can save a system as vast as Medicare through a process of top-down control, then this will be the only realm of human endeavor where that sort of engineering actually works.”

But of course while running a nationwide price control regime for shoes was a terrible way to run the footwear sector of the economy, the point was to fight and win a war and as it happens, the top-down control experts in DC did a pretty good job of it. The goal wasn’t to maximize consumer welfare, the goal was to direct national resources to a social purpose: Beat Adolf Hitler. In a similar vein, we have some good empirical data on what happens when you take a freedom-loving Anglophone political culture and introduce lots of bureaucrats into its health care system:

Canada’s in the middle ground here, with the UK much more statist and the US much less statist. A Canadian looking at the chart can see clearly that moving toward a less-statist, more US-style regime will push up expenditures. The creative energy of a million health care entrepreneurs will be unleashed on the unsuspecting Canadian people, offering them a dazzling array of choices reminiscent of the consumer bounty associated with shoe stores now that my grandpa’s got his price setting paws off of them. Conversely, moving in a British direction will turn things in the spartan direction of a crappy government office building. There should be no question that if you give 15 bureaucrats in Washington a budget with which to run Medicare, that they’ll deliver health care services inside the budget cap. If the concern is that health care consumption in the United States is currently insufficiently lavish and we need to move even further away from global norms of health spending, then maybe what’s needed is deregulation. But does anyone really think that? America’s health care spending is too low, and growing too slowly? Really?

If You’re Concerned About Employers Dropping Coverage, Advocate For The Employer Mandate

A new survey of employers is suggesting that “only 7% of employees will be forced to switch to subsidized-exchange programs,” but “at least 30% of companies say they will ‘definitely or probably’ stop offering employer-sponsored coverage” once a new ACA provision requiring businesses with workers receiving subsidies in the exchanges to pay a fee or offer coverage takes affect in 2014:

The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.

The White House is arguing that this survey is out of step with other projections by the Congressional Budget Office (CBO) the RAND corporation. Those reports suggest that the numbers of employers dropping coverage are much smaller since “firms would need to compensate the workers from whom they remove a current benefit, particularly higher income workers, who would lose the valuable tax advantage of ESI.” Indeed, other business surveys have demonstrated that employers would be reluctant to drop coverage.

But if we’re really interested in preserving employer-based coverage — which I’m not sure makes a lot of sense — then we should be talking about repealing the free-rider requirement that Democrats included in the law to please Sen. Olympia Snowe (R-ME) and replacing it with an employer mandate that would require companies to continue offering health insurance coverage. Experiences in Massachusetts have demonstrated that such an approach would increase employer coverage rates without leading to job loss.

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GB Prime Minister David Cameron Promises Not To Create An ‘American-Style Private’ Health System

Via Jeanne Whalen and Alistair McDonald at the Wall Street Journal:

U.K. Prime Minister David Cameron is scrambling to rescue his proposed overhaul of the state health system amid strong resistance from doctors, nurses and even members of the coalition government he heads, who say it amounts to a partial privatization that will weaken the taxpayer-funded system.

Mr. Cameron on Tuesday is expected to give a speech defending the proposed legislation and arguing that it is needed to “avoid a crisis” in future funding of the National Health Service, according to an excerpt. He also will promise that the changes won’t create “some American-style private system.”

The major problem for Cameron is that he actually won power by promising to protect the National Health System from privatization:

Mr. Cameron has won support for the Conservative Party in part by convincing voters that it is more committed to core public services than it was in the 1980s, when Margaret Thatcher headed the party. Being cast as someone intent on privatizing the health service undermines that strategy.

All this only serves as a reminder that only in America do conservative politicians see America’s fragmented market-driven health system where 15 percent of the nation is without health insurance and costs are far higher than anywhere else in the world as some kind of prize that other nations are clamoring towards and we should preserve — and even privatize further. As the British know all too well, the comparisons tell a far different story.

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The Truth About The Administration’s Health Reform Waivers

Critics of the Affordable Care Act have long played the double-edged game of criticizing the law for offering the nation a one-size-fits all solution to the health care crisis while slamming the federal government for providing states and businesses with greater flexibility to comply some of the new provisions of the legislation. It’s a cynical game and one that Republicans are playing in order to portray the nearly 1,400 waivers distributed by HHS as evidence that the law isn’t working or that the administration is using the process to grant exemptions to and reward its political allies.

The Associated Press considered some of these claims :

Q: Unions are getting these waivers. Doesn’t that show that the Obama administration is rewarding political supporters?

A: Several unions have gotten waivers, but most seem to be going to employer plans, according to statistics from the Health and Human Services Department.

Q: So an office headed by an administration bureaucrat is able to waive the entire health care law?

A: Actually, no. Mainly its two provisions. And the waivers are time-limited. One is a regulation that says insurance plans can’t impose a per-patient limit of less than $750,000 a year for medical care, including hospital stays, doctor visits and medications. So far, about 1,400 annual limit waivers have been issued, an approval rate of more than 90 percent. They cover plans that serve about 3 million people, or 2 percent of those with private insurance.

The other provision is a requirement that insurance companies spend at least 80 percent of the premiums they collect on medical care and quality, as distinct from overhead and profits. Three states — Maine, New Hampshire and Nevada — have gotten what the administration calls “adjustments” to the 80-percent standard. Insurers in those states will be held to a lower requirement, say, 65 percent. State officials had feared that some insurers who sell coverage directly to individuals would be unable to meet the higher standard and would just leave.

Q: Why do they even need to issue waivers for these things?

A: The explanation is the same in both cases: Without waivers, several million people would be at risk of losing their coverage.

In other words, the waivers are acting as a “safety valve” until the coverage expansions go into effect in 2014. What’s really happening is that the administration is in a tough spot. If companies respond to the early regulations by dropping insurance coverage, low-wage employees will have to either go uninsured until 2014 or try to enroll in Medicaid or the new high-risk insurance pools, for which they may be ineligible and may have some trouble affording. As Aaron Carroll of the Incidental Economist explains it, Democrats are facing the three-legged-stool problem. You can’t give people access to affordable coverage without regulating the insurers, getting everyone into the risk pool through the mandate and providing subsidies for those who need them, but the law implements the regulation leg four years before the subsidy and mandate legs are even attached. And so what you’re seeing now is a stool that just can’t find its balance.

Consequently, the government is exempting these companies for a year to give them an opportunity to gradually adjust their plans so they can meet the new requirements. As Paul Ginsburg put it, “I wouldn’t see that as special deals as much as bowing to reality.”

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The Morning CheckUp: June 7, 2011

Welcome to The Morning CheckUp, ThinkProgress Health’s 7:00 AM round-up of the latest in health policy and politics. Here is what we’re reading, what are you?

Employers to drop coverage: one survey of employers finds that while “only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will ‘definitely or probably’ stop offering employer-sponsored coverage” once a new ACA provision requiring businesses with workers receiving subsidies in the exchanges to pay a fee or offer coverage, kicks in. [Market Watch]

Banning abortion in Louisiana: the Louisiana state legislature is “considering a bill that would make performing an abortion a criminal offense, including in cases of rape and incest, and that would force a woman to pay out of pocket for an abortion that is necessary to save her life.” [Huffington Post]

Ohio is also trying to limit the procedure: “abortions in Ohio would be banned at most publicly funded hospitals, clinics and other facilities under a proposal Senate Republicans are considering putting in the state budget.” [NECN]

Medicare is the obstacle to reaching a debt ceiling deal: that’s what Sen. Chuck Schumer (D-NY) said in a conference call with reporters yesterday and called on Republicans to take Medicare cuts off the table. A group of Senate Democrats have also sent a letter to Vice President Biden urging him to say that a deal won’t be reached if the GOP’s Medicare cuts are still under consideration. [The Hill]

Aetna is reducing premiums in Connecticut: in order to avoid paying out rebates under the new medical loss ratio regulations in the Affordable Care Act. [Kaiser Health News]

High out-of-pocket costs for cancer patients: a new study finds that out-of-pocket, cancer-related costs averaged $712 a month. “Some 30% of respondents said their expenses were a ‘significant burden’ and 11% called them a ‘catastrophic problem.’” [WSJ]

Slight decrease in ER use in Massachusetts: “while overall emergency room visits increased about 4.1 percent between 2006 and 2008, visits among patients who are poor or uninsured using the emergency room for “low-severity” issues fell slightly, by about 1.8 percent.” [Boston Globe]

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