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Blue Dog Congressman: American Health Care Already "Soviet-Style" With Insurance, Medicare And Medicaid


Rep. Jim Marshall (D-GA)

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Rep. Jim Marshall (D-GA), a Blue Dog Democrat, made an interesting declaration at a town hall in his district: That our health care is already a Soviet-style system of central control and planning by the insurance companies -- and by Medicare and Medicaid.

The Atlanta Journal-Constitution reports that Marshall distributed a handout at the event. (A copy was also provided to us by Marshall's office.) It referred people to an Atlantic article on the economic distortions in our present health care system, and how care is damaged by disconnecting the patient from the true costs, even with the best of intentions. Key quote from Marshall:

Much of the health care reform debate overlooks this inconvenient truth. I can't. Although it is tough to do politically, this reform effort gives us the opportunity to help our fellow citizens while at the same time helping the country. We should take that opportunity. I believe we need to gradually transition to a health care system that gives individual Americans greater control and responsibility for their health. Our current system is fundamentally broken. It is well intended but grossly wasteful.

Central planning and control didn't work well for the Soviet Union. And it isn't working for American health care, either. That's a pretty dramatic indictment. But it's true. Beginning in World War II, American health care gradually migrated to an inefficient, Soviet-style system of central control and planning provided by health insurance companies, Medicare and Medicaid. Our current system largely divorces patients and doctors from the cost of care, causing an explosion in overall costs for little or no overall benefit.

Marshall's communications director Doug Moore explained to me what Marshall is saying -- and said that it's very important to read the article. "It talks about the fact that the American patient is not who -- health care is not really responsive to patients, it's responsive to insurance companies and to the government. And Jim believes it would be better if American health care were more responsive to the needs of the patients. And so that's what the point of the discussion was."

So does Marshall believe that Medicare and Medicaid are Soviet-style problems that we need to transition away from? "No that's not what he is saying," said Moore. He is talking about specifically, if you read the whole thing, he cites those as the central control and planning. What he's not saying -- nowhere does he say he wants to transition away from Medicare and Medicaid."

Comments (38) | Join the Conversation!

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September 23, 2009 3:06 PM   

So Beutler gets Normal Health Care and Kleefeld Krackpot Kare????

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September 23, 2009 3:09 PM   

Gee I can hear it now "Eric Kleefeld line 1"

"Oh shit the congressman's made the Looney List"

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September 23, 2009 3:15 PM   

Well, let's see...Medicare and Medicaid don't dictate what treatments you can get. They pay for pretty much whatever your doctor decides you need. It's only INSURANCE COMPANIES that do that.

So yeah, Jim, I agree with you. We need to put an end to INSURANCE COMPANIES trying to control costs by refusing to pay for treatments. Nice to see we're in agreement on this. Now why the hell won't you vote for measures that address this?

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September 23, 2009 3:34 PM    in reply to mans_best_friend

Seems to me Marshall is saying he wants to bring down out of control costs and wants patients to be responsible for fixing it. Patients who know squat about medicine for the most part and are taught to defer to their doctors for these decisions. Better informed patients is a start but I don't see it being a panacea. There's too many idiots out there who see no correlation between the glut of bad food they eat and the obesity that's killing them and costing us.

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September 23, 2009 3:52 PM    in reply to mans_best_friend

That's false, Goofy. Medicare and Medicaid have the right to refuse to pay for a transplant of someone who they don't think could survive another six months even with the transplant. Medicare and Medicaid have the right to refuse to pay for treatments that have never been proven to be effective. Medicare and Medicaid have the right to force people to pay the difference in costs of the two treatments if a beneficiary desires the more expensive treatment, and the two treatments have similar levels of effectiveness. It's just Medicare and Medicaid don't have the data to determine which treatments work and which don't. That's why the public programs don't often refuse to pay for treatments.

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September 23, 2009 4:21 PM    in reply to jimbomoron

Your last sentence is the bottom line. Medicare and Medicaid rarely refuse to pay any reasonable bill. Insurance companies have no more data on which treatments work and which don't. They just refuse to pay whenever they decide they don't want to.

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September 23, 2009 3:18 PM   

Somebody just insured they are going to get primaried...

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September 23, 2009 3:27 PM    in reply to Philv

Oh, yeah. Let's threaten to run a liberal against him in Georgia's 8th district. That will scare him.

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September 23, 2009 3:39 PM    in reply to mans_best_friend

Not saying he's going to lose, just that he's going to get primaried. Being seen as being against Medicare, all semantics aside that is the impression, is a big loser in the Democratic party.

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mcc

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September 23, 2009 3:19 PM   

What, exactly, is Marshall's suggested solution to all this?

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September 23, 2009 4:31 PM    in reply to mcc

Sounds like he's advocating the preferred Republican panecea: very high deductible policies and health care savings accounts.

Okay, wait, that's only the Republican solution when they're having one of their increasingly rare lucid intervals. I think the actual preferred Republican solution right now is one or more of their three all-purpose solutions to every social, political or foreign policy ill: tax cuts for rich people, elimination of government oversight of the activities of rich people or violence against brown people.

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September 23, 2009 4:47 PM    in reply to The Commenter Formerly Known as NCSteve

The actual Republican plan is: ACORN ACORN ACORN!!!!!!

You give them way too much credit.

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September 23, 2009 6:02 PM    in reply to CT Voter

Republicans have no plan. Even conservative Dems understand that planning is something that soviets did and we do not want to be soviets.

No, true Americans know that shooting from the hip is where it's at. Wait until the catastrophe is upon you and then just make up something to do. Points for actions which are brash, foolhardy or hair brained. Extra points if you yourself don't know what you're doing halfway through. If all else fails or you panic - just blow the hell out of everything. That's what Bush did. And say what you want about Bush but he was no soviet.

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September 23, 2009 3:28 PM   

This was the guy that Obama went to bat for last year in the primary elections, right?

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September 23, 2009 3:54 PM    in reply to Napoleon

No, that was Rep. John Barrow (D-GA). Barrow is a relatively conservative Democrat, but not anywhere near to this degree.

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September 23, 2009 4:45 PM    in reply to Napoleon

This is the guy Tammy Duckworth in IL saved from hoards of GOP house staff opposition in the last days of the 2006 campaign. They were sent to the Chicago burbs to canvass for Peter Roskam and save Henry Hyde's former seat instead of to Marshall's district to knock him off.

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September 23, 2009 3:30 PM   

They love the idea that we should shop for our surgeries and treatments as a means to drive down costs and force us to take better care of ourselves. So what exactly am I supposed to do about the car accident that left my friend paralyzed and well over a million dollars worth of surgeries later he has to sell his house to pay down a small fraction of what he owes. How does that jibe with the "we should all just pay out of pocket" ideology of these idiots?

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mcc

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September 23, 2009 3:57 PM    in reply to JohnAH

I had this problem a couple months back where my eye got infected, and it was swollen and causing me an immense amount of pain. I was fumbling around with google maps trying to figure out where the nearest urgent care clinic was. I could barely see, or think. I had a surprising amount of difficulty just figuring out where some kind of medical attention was and how to get there.

And all I could think afterwards was... okay, so that point where I was borderline incoherent because of my medical issue, that was when I was supposed to be comparison shopping?

I wonder what people who something actually bad happens to are supposed to do. Like, someone gets in an accident and goes into a coma. Maybe they're supposed to spend the time they're in the coma pricing and weighing the relative merits of their different medical options.

This is not like buying a car!

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September 23, 2009 4:16 PM    in reply to mcc

All ambulances will carry brochures from area hospitals outlining their care options and prices.

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September 23, 2009 4:33 PM    in reply to JohnAH

Gotta love that "shop around for the cheapest surgeon" concept too. That's totally what I want to do when I have a brain tumor, find a brain surgeon who's in low demand.

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September 23, 2009 5:17 PM    in reply to The Commenter Formerly Known as NCSteve

LMAO! Yes, and I'm going to make a fortune selling my Home Colonoscopy Kits. Just $19.95 + S&H.

That'll help reduce medical costs.

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September 23, 2009 6:21 PM    in reply to The Commenter Formerly Known as NCSteve

Since Republicans are all about people doing cost comparison in order to make medical decisions I wonder how they would feel about a law requiring pregnancy tests to include a price breakout of the medical costs associated with pregnancy and birth versus termination. It would cut down a lot on health care costs.

Actually cost estimates for pregnancy, birth and child rearing would make for effective condom advertisements (I'm guessing if you pitch in for college it'd be in the neighborhood of $200k). Durex could buy ad space on beer labels ("unprotected sex, it feels like a quarter million bucks").

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September 23, 2009 3:33 PM   

I read the original article a week or so ago. It was a very interesting account of the author's experience with his father's end-of-life care. His main point is that the whole system is structured to separate the patient and his/her family from the actual costs, so that one cannot weigh such things as whether a particular kind of treatment is "worth it" or do any kind of camparison shopping. For example, hospitals will give no indication of the costs of anything, because they charge different people different amounts depending on who is doing the reimbursing. After his father died they got a bill for something over $600,000 but actually paid almost none of it.

The author is a savvy businessman, and so in advocating things like health savings accounts and consumer choice he is not like the ordinary person who does not want to be searching the internet to find the cheapest cancer or kidney operation. So while I found much of his critique valid, his prescriptions were IMHO very unrealistic.

He's right that we need ot deal with the incentive system and we need to give people an idea of what different kinds of care cost, but the problem is that people will scrimp on preventive care to save on co-pays but do whatever the Dr suggests after the condition or disease has progressed.

Bending costs by changing provider incentives seems more realistic, and having the comparison shopping be done when one chooses a health plan, not when choosing how to treat a particular condition.

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September 23, 2009 3:38 PM    in reply to Mimi katz

And of course people need maximum choices in order to choose effectively. I am not endorsing or supporting insurance cos. I think health care ought to be not-for-profit and insurance ought to be for catastrophes and concierge care, and 99% of people should get reasonable, solid care through a cost-effective HMO like Kaiser. And we all need to remember that no one lives forever and the most important thing at the end is to minimize the pain for everyone.

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September 23, 2009 5:14 PM    in reply to Mimi katz

Given much of the conservative debate on health care, the Atlantic article is to be praised.

But it is assertion after assertion without hard data to support it. e.g.: "insured patients often get only marginally beneficial (or even outright unnecessary) care at mind-boggling cost" as an explanation for the large discrepancy between the amount of "other people's money" spent by insured and uninsured on health care. No statistics, just an assertion; when we know from the CDC that, because virtually all Americans over 65 have insurance, and roughly 20% of Americans under 65 don't have insurance, the population which does have insurance is older and thus more likely to need/use health care services.

But it's his bit about the mortgage loan crisis that gives it away. In the author's view, it wasn't an asset bubble...no, the government screwed with the price of the good by making the product more affordable to poor people. I've had enough of the efficient markets hypothesis, thank you very much...

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September 23, 2009 3:55 PM    in reply to Mimi katz

A conversation about costs might make more sense if costs actually reflected reality. For example;

A couple of decades ago, I was in the hospital after a major accident. One day while the nurse was taking away my dinner tray, she knocked my toothbrush off the table and onto the floor. She picked it up and threw it away. I asked her why she didn't just wash it off and put it back. She said that there are some germs in the hospital that don't just wash off and it would be safer just to give me a new toothbrush.

I didn't think too much about it until one day some weeks later when I got a copy of the hospital bill from my insurance company. It was itemized and on a whim, I went down to the day of the toothbrush incident. Sure enough, there was an entry for a new toothbrush. The cost was $45!!! I called up the insurance company and pointed out that I could get about 50 toothbrushes for that much. The claims person who took my call told me in a very matter-of-fact tone that a $45 toothbrush was well within the "ordinary and standard rate of treatment" provisions of the insurance policy.

That was well over 20 years ago. I wonder how much a hospital toothbrush goes for these days.

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September 23, 2009 3:51 PM   

Any chance we could persuade Georgia to succeed with Texas? Representative Marshall would likely get along well with Bush, Rove and Delay.

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September 23, 2009 4:03 PM   

Once again, conservative message is "govt out of the way so the rich can get richer" and let's never fix any problems cause they fix themselves!

Oooooh, big bad government! .... so awful, so sinister.

Until you get 20 inches of rain.

Maybe this asshole has a "free market" solution to flooding?


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September 23, 2009 4:15 PM   

Call ME crazy, but I didn't read anywhere that Rep. Jim Marshall said he was against reform. He seemed very pro-reform. Although there is plenty of negative association with saying, "Medicare is Soviet style health care", that is not that quote I read. He writes, "Soviet-style system of central control and planning provided by health insurance companies, Medicare and Medicaid. "

My reading is that he is trying to convince a skeptical audience that reform IS NECESSARY. While I don't see the solutions he suggests as a pancea by any means, he's is arguing a very PRO-REFORM argument which doesn't preclude a public option.

As for how he is has voted, or is going to vote . . . I don't know. But as a strong supporter of the public option, I read his words and I see him as an ally.

Then again, I am more than a little optimistically naive.

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September 23, 2009 4:29 PM   

So he's not suggesting a transition away from Medicare and Medicaid, but does believe this:

Central planning and control didn't work well for the Soviet Union. And it isn't working for American health care, either. That's a pretty dramatic indictment. But it's true. Beginning in World War II, American health care gradually migrated to an inefficient, Soviet-style system of central control and planning provided by health insurance companies, Medicare and Medicaid

Um, if central planning didn't work for the Soviet Union, and current health care systems (including Medicare and Medicaid) have already migrated to an "inefficient, Soviet-style system of central control", then what, precisely, does he propose? It didn't work, that's where we are, but I'm not saying we should transition away from that?

Ok, then.

The handout, in the representative's own words, is the problem. And he probably should clarify what he passed out.

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September 23, 2009 4:43 PM   

"Our current system largely divorces patients and doctors from the cost of care, causing an explosion in overall costs for little or no overall benefit."

This is true. Health care costs could not have sykrocketed as they did if everyone paid out of pocket, but that's a recipe for posible personal financial disaster. So the health care industry takes advantage of the situation and cost skyrocket because the insurance cos pay and the insurance cos raise prices to match.

The whole thing needs to be non profit

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September 23, 2009 4:45 PM   

I agree that the patient is separated from the true cost of their coverage. But what this guy wants is flat out nuts.

Let's see what other services Americans use that could adjusted so Americans feel the true cost of the service:

Police: why not charge for all police services including crime intervention. You know it costs money to send cop cars out to stop those home intrusions.

Fire protection: Do know how much those trucks cost? By paying for fire protection through your taxes the average homeowner doesn't really know how much it would cost to stop their home from burning down. Solution: cut taxes by a small percentage for everyone, but shake down homeowners when they call the fire department. "Mam, if you want to save that bedroom it will cost you $10,000. But if you want, we'll let it burn and save the bathroom -- that will only cost you 5 grand."

Education: here in Illinois we pay for schools through our property taxes. Then we get hit up for books and fees -- probably only a few hundred or a thousand dollars a year. That doesn't give us a true feeling for education, does it? Instead, let's pay the teachers directly. You want to learn math? 2 grand. English? Another $2 grand. Spanish? Well, we can opt out, right?

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September 23, 2009 4:58 PM    in reply to numediaman

That would be just ducky from a Republican point of view. Then they can just pay to protect their own stuff and everyone else can go to hell.

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September 23, 2009 6:08 PM   

If by Soviet Style you mean a pile of steaming excrement, then you are correct. "Senator".

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September 23, 2009 6:09 PM   

"Our current system largely divorces patients and doctors from the cost of care, causing an explosion in overall costs for little or no overall benefit."

That statement is only half true.

Insured patients are often divorced from many of the true costs of health care (other than often nominal co-pays).

But doctors are NOT divorced from the costs, because doctors are part of the costs, and when doctors are part owners of the hospital or group practice, the costs of medical care can double. Medicare and Medicaid may control the price of a procedure but they don't try to interfere with medical decisions, and so doctors who want higher profits order more tests and more procedures and drive up costs with no increase in the quality of health care.

Now, conservatives look at this imbalance and think that the solution is to shift more of the costs to the patient, but that's nonsense. People (other than hypochondriacs) don't go to the doctor because they think it's free but because they think that need to see the doctor. Trying to ration health care by imposing costs on the patient is simply irrational.

The real solution is to divorce the doctor from the economics of health care. If a doctor is on a fixed salary (such as is the case in the Mayo Clinic, one the highest-quality and lowest-cost facilities in the US), then the doctor will focus on the patients who need help and not on those that are profitable.

What we really need is a system in which both the doctor and patient really are divorced from the costs and economics, because they the doctor will try to provide what the patient needs, no more and no less, and the patient will take only what the patient needs.

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September 23, 2009 10:25 PM   

It seems perfectly appropriate to me to compare enormous organizations that are so intertwined with government as to be indistinguishable from government to Soviet Style Economics.

Americans like to think that the Soviet Union collapsed because Reagan and Rumsfeld stared them in the eye until they fell right down. In fact it was the large blindly groping ministries - all carving out pieces for themselves with no regard to distribution - that finally bankrupted and ended the beast.

Ask Condoleeza Rice... and please - if the congressman needs to drag in European style socialism (ie; Medicare/Medicaid) - I would guess he is just doing that for cover.

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September 24, 2009 1:38 AM   

I saw the Atlantic piece at (kid you not) the doctor's office. Didn't read the whole thing, but enough to see that it was pushing the old libertarian "solution"--i.e., individuals should be made to pay for their own treatment, because if they did, they would "comparison shop" and demand higher quality of care for a lower price, which would bring costs down. The old idea that premiums keep rising because patients are "insulated" from the direct cost of their treatment. Which is of course true, but doesn't address the reason why we need health insurance in the first place, namely, to insure against the risk of very serious illness, when we would not be able to afford the cost of treatment.

In this view, insurance of ANY kind--private as well as public--is inherently socialistic (which is true) and therefore inherently bad (a matter of opinion).

Libertarians would like to think purchasing health care is like buying the latest electronic gizmo. It's not.

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September 24, 2009 12:52 PM   

" nowhere does he say he wants to transition away from Medicare and Medicaid."

"...Soviet-style system of central control and planning provided by health insurance companies, Medicare and Medicaid. "

"I believe we need to gradually transition to a health care system that gives individual Americans greater control and responsibility for their health. "

Left hand meet right hand.

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