
This afternoon, I asked Sen. Olympia Snowe (R-ME) whether she'd been looped in on an idea, floated recently by Sen. Tom Carper (D-DE), to tweak her proposal to affix a public option to a trigger mechanism. Indeed she and Carper have discussed his plan, but she remains pessimistic that it'll ever be adopted.
"Tom and I have been working on it, we've had discussions and so on, but, you know, we haven't got down in concrete terms, and he'd like to have my affordability language and so on," Snowe said. "But nevertheless it's still going to require 60 votes so I don't know when that would happen, and frankly I would have preferred that to happen at the outset of this process, rather than going through this convoluted procedural gymnastics."
Carper's proposal would mimic Snowe's trigger plan in many ways, though the two differ in one key respect. Snowe's idea is to give insurance companies about a year, competing with each other in health insurance exchanges, to lower premium prices and expand access on their own. The federal public option would only then appear on the exchanges in states that don't meet her so-called affordability standard.
Carper's plan would use a similar--or perhaps identical--standard, but crucially, that standard would have to be met at the time the exchanges launch. No year delay. That seems to be why he calls his plan "the hammer" as opposed to "the trigger"
In any case, this idea is worth keeping an eye on. Snowe objected today to the idea of an opt-out on the more substantive grounds that states shouldn't be allowed to opt-out if they don't offer any affordable options. That's an argument one can imagine appealing to public option supporters, provided the affordability standard was rigid and rigorous.
Walter Mitty
November 19, 2009 4:56 PM
They're keeping Snowe around in case Lieberscum or any other Conservadems decide to blow up the process.
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marklouis
November 19, 2009 5:27 PM
The key is the affordability standard. If it is strict, it would be okay.
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Cool Blue Reason
November 19, 2009 6:02 PM in reply to marklouis
I'm starting to think so myself. I'm concerned about what the insurance companies will be able to do -- and are likely to do -- over the course of the next 5 years or so while the piecemeal HCR provisions take effect at an excruciatingly slow pace.
They and their GOP allies will have every incentive to jack up rates even more while they still can, and blame that result on HCR and the Dems. The goal will be to repeal or further neuter the legislation (and to make more money in the process).
It seems to me that if a "trigger" or "hammer" public option were structured properly -- meaning a *robust* public option (as in tied to Medicare and available to all) that could be triggered by a failure to meet strict affordability standards -- that would actually be better than a half-assed public option that is not triggered.
It would be like the sword of Damocles hanging over the insurance companies' heads. It may not be as emotionally satisfying on some level, but I think it could actually be more effective than the current mix of sausage we're about to be served -- with the potential for substantively better outcomes whether or not the trigger is triggered.
Again, however, the public option on the other end of the trigger would have to be "robust" for this to really work.
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Tanjaoui
November 19, 2009 8:23 PM in reply to Cool Blue Reason
Dunno...if it could be triggered. If it were robust. A lot of ifs. I don't trust them to structure it properly. Or to enforce it later.
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jdb316
November 19, 2009 8:26 PM in reply to Cool Blue Reason
My question though is whether or not the "trigger" or "hammer" would be a one-time thing; ie - if they meet the requirements at the beginning, they never have to meet it again and can charge whatever they want. If this is the case, the insurance companies will simply lower their rates enough at the appropriate time to pass inspection, then jack them back up again as soon as they no longer have to worry about the public option.
In order for a trigger or hammer to work, the insurance companies would have to always keep their premiums at the required levels. And the bill would have to be worded very carefully to prevent loopholes that the insurance companies would be very happy to exploit to keep rates high while still passing muster.
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ChrisNBama
November 20, 2009 10:21 AM in reply to Cool Blue Reason
"They and their GOP allies will have every incentive to jack up rates even more while they still can, and blame that result on HCR and the Dems. The goal will be to repeal or further neuter the legislation (and to make more money in the process)."
You mean the game republicans are already playing regarding credit card reform?
When congress passed the credit card reform legislation, credit card companies, sensing their rapacious ways were going to be kept in check, started raising rates, dropping coverage, and charging for services that had always been complimentary.
Since the consumer protections under the reform laws do not go into effect until February of 2010, the credit card companies can get away with this behavior. Senator Chris Dodd proposed legislation that would freeze rates until the law went into effect, and guess what? The republicans blocked it.
Republicans will send their own grandmothers to the poor house to ensure political advantage.
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Mateo123
November 19, 2009 6:02 PM
no way are they going to get 60 for a trigger. no way.
Lieberman should jump on board. that public option is weak. it's very weak. And, the subsidies are quite strong. I'm still trying to figure out how it's deficit neutral -- or even deficit cutting -- given such a weak public option.
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Cool Blue Reason
November 19, 2009 6:27 PM in reply to Mateo123
See my comment above. Triggering the weak public option currently under consideration certainly doesn't get 60. However, I could see them possibly cobbling together 60 votes for a "robust" public option (Medicare +5 and open to all) that is triggered. That would represent a compromise that could conceivably draw support from both the right and left of the Democratic caucus. And it might even make sense in practice.
But it would take some significant leadership to get the progressives and blue dogs on board at the same time. And presumably this is something Reid would have to have done already, were it to work.
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Tanjaoui
November 19, 2009 8:39 PM in reply to Cool Blue Reason
Medicare +5%, open to all individuals and all employees of small businesses, offering 'check the box' enrollment on Federal income tax returns, automatically enrolling individuals who didn't buy insurance after the first year of the mandate, requiring providers who accepted Medicare and Medicaid patients to also accept Public Option patients, allowing the Public Option to negotiate bulk purchases of medications, using the Public Option as default top-off insurer for VA and Medicaid patients, filling any gaps in their regular coverage...then you're talking. Robust.
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Tanjaoui
November 19, 2009 8:28 PM in reply to Mateo123
I doubt it. It was made to kick in later (in 2014) than the House bill to make 'saves more $ over 6 years' look like 'saves more $ over 10 years'. It doesn't save any more than the House bill, it just covers less time. Cle-ver.
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condew
November 19, 2009 6:14 PM
Affordability AND minimum quality. It is trivial to meet affordability standards if you can sell hollowed-out coverage that doesn't pay for much. There are cheap plans advertised now which only offer a negotiated rate for perscriptions or doctor visits, but don't actually pay for anything.
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bluebell
November 19, 2009 6:15 PM
Gee, was it only yesterday I was being harassed for my cynicism?
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agio
November 19, 2009 6:32 PM
What worries me most is, I'm worried the deal they cut is this "instant trigger" in exchange FOR continued immunity from anti-trust.
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Maritza
November 19, 2009 6:46 PM
I am glad because we may not have Ben Nelson or LIEberman at the end of this thing.
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The BBQ Chicken Madness
November 20, 2009 8:58 AM
"But nevertheless it's still going to require 60 votes so I don't know when that would happen, and frankly I would have preferred that to happen at the outset of this process, rather than going through this convoluted procedural gymnastics."
Funny, Sen. Snowe. Considering Republicans plann to filibuster every proceedural vote possible on every peice of legistlation put forth by this Congress...my first thought is that you can go f*** yourself.
@BrianBeutler: Any chance you asked her about this complete and utterly blatent hypocracy? No? Shocking. But you do a great job of typing down everything she said. Good work!
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agio
November 20, 2009 11:43 AM in reply to The BBQ Chicken Madness
I understand your frustration, but I don't think any journalist would ask that question -- at least worded that way.
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