FixHealthCarePolicy

A Whole New Health Care Ball Game

You have to read all the way to page A-25 in yesterday’s New York Times to learn about it, but the Senate took its first floor vote on Obamacare and the White House lost. Big. The NYT reports: “Democrats lost a big test vote on health care legislation on Wednesday as the Senate blocked action on a bill to increase Medicare payments to doctors at a cost of $247 billion over 10 years. The Senate majority leader, Harry Reid, Democrat of Nevada, needed 60 votes to proceed. He won only 47. And he could not blame Republicans. A dozen Democrats and one independent crossed party lines and voted with Republicans on the 53 to 47 roll call.”

As we reported on Monday and Tuesday, yesterday’s “doc fix” vote was part of a White House Chief of Staff Rahm Emanuel strategy to smooth passage of President Barack Obama’s $1 trillion-plus health care overhaul by transferring a quarter of its cost into a separate, and completely unpaid for, bill. This transparently dishonest shell game was too much for honest Democratic Senators like Evan Bayh (D-IN), Kent Conrad (D-ND), Russ Feingold (D-WI), Claire McCaskill (D-MO), Bill Nelson (D-FL), and Ron Wyden (D-OR). Wyden told the NYT: “On the eve of a historic debate on health care, it’s essential to show a commitment to real reform,” which includes fiscal responsibility.

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Tags: doc fix, Obama Health Care Plan, Rahm Emanuel

Exposing the Obamacare Shell Game

In his primetime health care address before a Joint Session of Congress, President Barack Obama promised the American people: “I will not sign a plan that adds one dime to our deficits – either now or in the future. Period.” But it is hard work adding $1 trillion in government spending while claiming with a straight face that you are not adding to the deficit. Enter White House Chief of Staff Rahm Emanuel who has just the solution: just strip out $247 billion of the spending in the bill, pass it separately, and voila … your job just got one-fourth easier.

The specific issue at hand is the centrally planned price control regime the federal government uses to reimburse doctor’s who participate in Medicare. Medicare reimburses doctors and other medical professionals for their services according to a congressionally created fee schedule that is annually adjusted by the Sustainable Growth Rate (SGR) formula. The idea is relatively simple: If Medicare spending grows faster than our overall economy (which is almost always the case), then payments to Medicare providers are supposed to be reduced proportionately to keep expenditures in line over a period of time.

Problem is every year Congress–under both Democratic and Republican leadership–routinely blocks the cuts from going into effect. Subsequently, the necessary cumulative cut in Medicare payments grows bigger. Without a change to current law, payments to physicians would be reduced by 21.5% as of January 1, 2010. The Senate Finance Committee bill addresses this problem by raising the reimbursement rate for one year and then pretending that Congress will allow massive cuts for the next 9 years. House Majority Leader Steny Hoyer (D-MD) rightfully called the Senate Finance Committee proposal a façade. (more…)

Tags: Harry Reid, Medicare, Obama Health Care Plan, Rahm Emanuel, Sustainable Growth Rate, trillion dollar deficits

Senate Dems Stealing $247 Billion from Your Children to Pay for Obamacare

According to the Associated Press, at the direction of White House Chief of Staff Rahm Emanuel, Senate Democrats are plotting to pass a bill, by as early as next week, that grants doctors a $247 billion increase in Medicare fees over a decade. This will no doubt add to the deficit. Why are the Democrats so intent on spending $247 billion in one week? To pave the way for the White House to claim that Obamacare is deficit neutral.

Senate Majority Leader Harry Reid (D-NV) and Senate Democratic Leadership are meeting, as you read this, behind closed doors with White House staff . They are trying to cut and paste the complex provisions of the Senate Finance Committee health bill (the Baucus Bill) and the Senate Health, Education, Labor and Pensions bill ( the Kennedy-Dodd bill). They want to produce an overhaul of one sixth of the economy under federal control that is somehow coherent and yet not add “one dime,” as President solemnly promised, to the deficit. (more…)

Tags: Debbie Stabenow, Harry Reid, Max Baucus, Medicare, Obama Health Care Plan, Rahm Emanuel