Snowe: Give The Private Insurance Market Another Shot
Earlier this week, Sen. Olympia Snowe (R-ME) came under fire from liberal health reform advocates for restating her opposition to offering a national public insurance option as an immediate feature of comprehensive health care reform. In an interview with the Associated Press she explained her reasoning.
"If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market ... the public option will have significant price advantages."
As I noted previously, this is a sort of strange critique of the public option--what's so bad about an insurance program that's more affordable to consumers than most private plans?
To clear up the confusion, I asked a Snowe aide to further explain the senator's reasoning. He said that the two sections of the AP quote were meant to address separate aspects of Snowe's opposition to the plan.
He said that when reforms short of the public option are combined with assistance to help lower income individuals buy insurance, coverage will be more accessible and affordable. But if things don't pan out that way--if residents in some states still lack affordable options--then Snowe would make the public option available in those markets. This is the so-called "trigger mechanism", and it's strongly opposed by most reformers. Her plan also suggests a public option, if triggered, won't necessarily be national in scope, which would violate the principles outlined by the reform campaign Health Care for America Now.
At the same time, Snowe argues that even with some "leveling", a triggered public option--meant to provide a "safety net" should private plans fail to perform--won't and shouldn't really exist on a completely level playing field with private insurers.
But if there's a price advantage to the public option, what's the problem with offering it at the outset?
According to the aide, "Consumers want price reductions from real improvements, but are concerned patients could suffer if savings are delivered by means which compromise care or limit choice and innovation." Recent polls, however, suggest Americans broadly support a robust public option, which could reduce insurance prices fairly dramatically. They don't, however, suggest support for delaying a government option indefinitely while allowing the a more tightly regulated private market to achieve lower costs on its own.


















Profiteering drives the current "health care my ass" system. Insurance companies have gotten their chance and we have a bloated, insincere, inefficient system.
Where is their pitch that they can do better? Where's the insurance companiess admissions or apologies and amendments that are to be made? We hear from their lobbyists and their advocates, but until we get an acknowledgment of their screw ups, where does the health care insurance industry even have a smidgen of legitimacy? If they are scared of the public option (they are, aren't they?), they ought to be telling us how they have been wrong and how they can improve. Their silence is pretty telling to me.
July 2, 2009 4:33 PM | Reply | Permalink
Sounds like a huge SNOWE JOB to me...move on to the next twisted piece of logic! You Senator! are friend to the middle class and kiss our collective ass!
July 2, 2009 4:54 PM | Reply | Permalink
How does she plan to fix the part about losing your insurance when you get sick and lose your job? Oh -- hadn't thought about that one!
July 2, 2009 4:55 PM | Reply | Permalink
Simple. You are not allowed to get sick. Getting sick 'triggers' the No Health Care For You clause.
July 2, 2009 4:59 PM | Reply | Permalink
Oh, well that makes perfect sense. er....in a republican sort of way.
July 2, 2009 8:53 PM | Reply | Permalink
sorry...that was meant to say no friend of the middle class
July 2, 2009 4:55 PM | Reply | Permalink
Once upon a time, they argued that a private system was superior. Nowadays, however, they no longer even bother to attempt to hide the fact that their main concern is really for the insurance companies' interests.
July 2, 2009 5:12 PM | Reply | Permalink
They were given that chance in 1993, Senator Snowe, a total mulligan. Now they are still being given one last chance to see if they can pull off a miracle without the mulligan, as no one with any power is pushing single payer.
I'm old enough to remember the introduction of HMO's, and at the time, they were revolutionary and cost saving and offered excellent service, most of them were dandy. That lasted a couple years until bottom line profit questions intruded. It is ever thus without lots of regulation to even the playing field.
July 2, 2009 5:21 PM | Reply | Permalink
Ever had any experience with someone really, really sick? They aren't exactly your typical "consumer". Ever try fighting an insurance company when you are not conscious? When you take the care aspect out of the argument, expect to have to make absurd free market arguments.
July 2, 2009 5:59 PM | Reply | Permalink
Yes, I have.
Ever try to get pre-approval for an ambulance ride? On a Sunday? Funny--heart attacks and traffic accidents still happen on the weekends. Damn inconvenience to insurance companies, that.
July 2, 2009 7:56 PM | Reply | Permalink
I'm all for giving the private insurance market another shot.
How about 100 mg of morphine? Would that do?
July 2, 2009 6:17 PM | Reply | Permalink
Only if I can give it IV push -- really, really fast.
July 2, 2009 8:54 PM | Reply | Permalink
Here's a little good news, http://www.huffingtonpost.com/2009/07/02/kay-hagan-key-senate-demo_n_225233.html
July 2, 2009 9:08 PM | Reply | Permalink
Thumbs, May I recommend the venerable 30/06 for that last shot. Should do the trick.
No, I'm afraid they have a pre-existing condition which disqualifies them for consideration for another chance. So sorry.....
July 2, 2009 11:21 PM | Reply | Permalink
And Yes, Hagan back on board is a very good sign. I wonder who handed her the roadmap to a primary challenge?
July 2, 2009 11:38 PM | Reply | Permalink
I like the way thumbs and Ohm on the range have expressed the situation. These sleaze meisters have had years to get their act together and haven't done squat. Some 15 years ago they promised to make reforms and did absolutely nothing. No last shots. Just a last meal and cigarette. Then it's the long walk.
July 2, 2009 11:47 PM | Reply | Permalink
Yeah, people have a lot of money to burn in this economic downturn! NOT!
July 3, 2009 11:31 AM | Reply | Permalink
No thank you. I'll pass Senator. I really do not want to be shot by the insurance industry.
C
July 3, 2009 11:41 AM | Reply | Permalink
I wish one of these interviewers would ask her why we should give private insurance one more chance when they've just had 15 years to show us what they could and would do once they knew there were serious problems.
I can't identify one serious problem we're discussing now that wasn't being discussed as a serious problem 15 years ago.
Someone should send her a video of Karen Ignagni's May 5th testimony to the Senate Finance committee, the one where she goes point by point over the changes that need to be made, agreeing in hypnotically soothing tones, and then shifts to whine as she says they've never had a mandate.
When she says they've never had a mandate, I think she means they've never been willing to accept regulation and oversight unless they could dictate the terms. Someone should briefly review the behavior of the industry during the Clinton reform fail for Senator Snowe.
We need to tell Senator Snowe that the answer isn't just NO, it's HELL NO. They've had 15 years, and by any measure that's more than enough.
As we move from our current mess through the inclusion of a government administered public option, we will be able to judge the adaptability of the private insurance industry. I don't think they CAN compete for basic care; if they have a future, it will be for luxury and vanity medicine. We need to start the transition NOW, I don't think we can wait, or need to. We're living the answer.
July 4, 2009 12:38 PM | Reply | Permalink