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After watching millions protest against ObamaCare at town halls across the country during August, and millions more march on Washington in September, and Democrats get slaughtered in governors races in New Jersey and Virginia in November, and losing Teddy Kennedy’s seat in the People’s Republic of Taxachusetts in January, the only state in the union that has actually suffered under ObamaCare for the past two years, President Obama has gone all in in his push to ‘spread the wealth around’ and socialize the medical delivery system of the United States. There are only two possible outcomes of the Thursday meeting. President Obama tries to paint Republicans as the party of no good ideas and an unwillingness to compromise so (a) he has political cover to ram passage of his health bill through under reconciliation or (b) he has an issue to run on in 2012 and he presents Congressional candidates with an issue to run on in 2010.
There is no mystery to the way to control health costs. Either (a) allow true interstate competition like auto insurance with a series of additional measures such as tort reform that provide economic incentive to lowering cost, or (b) mandate coverage for everyone and legislate what insurers are allowed to charge (new in the President’s proposal) as well as what they are required to offer and then control costs by rationing care thereby eliminating the economic incentives that drive medical providers and pharmaceutical companies to innovate so that medical care in the U.S. is the best and most innovative in the world. It is no secret that President Obama prefers (b) so while he may make a show of listening to Republicans propose (a) since he took political flack for failing to seriously consider their ideas up to this point and holding closed door negotiations with Democrat legislators and allied special interests outside the range of C-SPAN’s cameras, he has no intention of including the free market proposals that will truly lower cost. These are not new ideas. President Obama admitted to having read them when speaking at the Republican House retreat several weeks ago. Consequently, this meeting is nothing beyond political theatre to provide the President cover for his next political move. Whatever it is, it is guaranteed not to include Republicans as he has demonstrated an unwillingness to entertain their proposals seriously.
At the Republican retreat, President Obama asked incredulously why he thought Republicans considered his proposals to be some “bolshevik plot!” If the government mandates that you buy a service and then controls the price and the marketplace for that service, you be the judge.
While President Obama may have removed the Cornhusker Kickback from his proposal, the following special interest deals seem to have survived his chopping block. They include:
(1) “The Louisiana Purchase”
Who: Mary Landrieu (Louisiana) Cost: $300 million
Section 2006 provides a “Special Adjustment” for states recovering from a major disaster. Though the state is not named specifically, this provision appears to help only Louisiana – providing $300 million to the state Medicaid program. As the request of Senator Mary Landrieu, this provision was inserted into the Senate bill shortly before it was brought to the floor for a vote.
Source: Sweeteners for the South:The Washington Post (November 22, 2009)
(2) Special Funding For Local Connecticut Hospital
Who: Chris Dodd (Connecticut) Cost: $100 million
Section 10502 provides $100 million in funding for “a health care facility that provides research, inpatient tertiary care, or outpatient clinical services.” The AP has reported that the funding was inserted at the request of Chris Dodd and will likely go to a University of Connecticut hospital.
Source: Health Bill Money for Hospitals Sought by Dodd: Politico (December 20, 2009)
(3) Millions of Medicaid Dollars for Vermont and Massachusetts
Who: Bernie Sanders (Vermont) and John Kerry (Massachusetts) Cost: $1.1 billion
Section 10201 adjusts federal payment to states for their Medicaid program. This section provides Vermont ($600 million) and Massachusetts ($500 million) in extra federal Medicaid funds.
Source: Democrats Protect Backroom Deals: Politico (February 3, 2010)
(4) Cash for New Jersey Drug Companies
Who: Bob Menendez (New Jersey) Cost: $1 billion
Senator Bob Menendez (D-NJ) secured a $1 billion research subsidy for drug companies in the Senate health care bill. According to Menendez’ website, 86 percent of New Jersey’s biotech companies would qualify for the subsidy contained in Section 9023.
Source: States of Personal Privilege: The Wall Street Journal (October 15, 2009)
(5) Extra Cash for Union Health Care Plans
Who: John Kerry (Massachusetts) and Debbie Stabenow (Michigan) Cost: $5 billion
Section 1102 provides $5 billion for a reinsurance program to defray the medical costs of union members. This provision was added at the behest of Michigan Democrat Debbie Stabenow, and Massachusetts Democrat John Kerry, and will benefit union donors in their states.
Source: States of Personal Privilege: The Wall Street Journal (October 15, 2009)
(6) No Medicare Advantage Cuts for Florida Seniors
Who: Bill Nelson (Florida) Cost: ???
The Senate bill cuts billions from the Medicare Advantage program – forcing millions of seniors off of their current health care plan. However, Senator Bill Nelson negotiated a special deal that protects Florida seniors from these cuts. Nelson inserted this amendment during the Senate Finance Committee’s markup.
Source: White House Cuts Special Help for Nebraska, but Other Deals Remain in Reform Bill: ABC News Blog (February 22, 2010)
(7) Special Funding for Montana Coal Miners
Who: Max Baucus (Montana) Cost: ???
Section 10323 provides Medicare coverage for workers exposed to “environmental health hazards.” Thought not named specifically in the bill, the provision was added by Senator Max Baucus to provide special health coverage to miners in Libby, Montana.
Source: Deep In Health Bill, Very Specific Beneficiaries: The New York Times (December 20, 2009)
(8) Fee Exemption for Politically Connected Insurers
Who: Ben Nelson (Nebraska) and Debbie Stabenow (Michigan) Cost: ???
Section 10905 of the Senate bill levies a new annual fee on health insurers. However, the bill provides an exemption to a narrow group of companies. This section will exempt Blue Cross Blue Shield of Nebraska and Blue Cross Blue Shield of Michigan.
Source: Concessions Lawmakers Won in the Health Bill: The Boston Globe (December 22, 2009)
(9) Higher Medicare Payments for North Dakota Providers
Who: Kent Conrad and Byron Dorgan (North Dakota) Cost: ???
Section 10324 generously provides higher Medicare payments to hospitals and doctors in “frontier counties.” Though not named specifically, providers in North Dakota counties would qualify for higher Medicare payments.
Source: On Health-care Bill, Democratic Senators are in States of Denial: The Washington Post (December 22, 2009)
(10) Hawaii Hospitals Exempt From Cuts
Who: Dan Inouye and Daniel Akaka (Hawaii) Cost: ???
The Senate bill reduces payments to hospitals for treating uninsured patients under the federal disproportionate Share Hospital (DSH) program. However, Hawaii’s two Democrat Senators inserted a special deal for their state hospitals. Section 10201 shields Hawaii facilities from proposed cuts in DSH payments.
Source: On Health-care Bill, Democratic Senators are in States of Denial: The Washington Post (December 22, 2009)
(11) Longshoreman Exempt from Tax on Health Plans
Who: Jeff Merkley (Oregon) Cost: ???
The Senate health care bill imposes a new tax on employer-sponsored health plans. Yet Jeff Merkley was able to secure a special deal for longshoremen. Section 10901 of the Senate bill shields longshoremen from the full impact of the new tax.
Source: Concessions Lawmakers Won in the Health Bill: The Boston Globe (December 22, 2009)
Circulated by U.S. House Republican Study Committee (RSC)
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