What One ‘Conservative’ Approach To Health Care Reform Looks Like — And Why It’s A Bad Idea

Avik Roy — who advised Republican presidential candidate Mitt Romney on health care policy — and Doug Holtz-Eakin published an op-ed for Reuters earlier this week in which they outlined their vision for a “free market” approach to health care reform. It’s a serious proposal, albeit one that makes the same fallacious argument as Whole Foods CEO John Mackey’s assertion that Switzerland’s health care is more “entrepreneurial” than Obamacare is. Unfortunately, that claim is simply the least worrying aspect of a plan that is riddled with benefit cuts and shifting health care costs onto consumers.

First of all, mentioning Switzerland in the piece at all is essentially a red herring, as the duo’s proposal doesn’t actually shift American health care in the direction of the Swiss system — quite the opposite, in fact. While Switzerland shares important aspects with Obamacare, particularly its federally-subsidized health insurance marketplaces — a fact that Roy and Holtz-Eakin acknowledge, to their credit — the country’s health care program can hardly be described as a less regulated system, since it actually provides more generous insurance subsidies, requires insurers to offer at least one “nonprofit plan” akin to a public option, and imposes stricter price controls and negotiations between the government, drug makers, and health care providers.

Instead, what Roy and Holtz-Eakin want to see is a modified, and far more regressive, version of the proposal that Sen. Ron Wyden (D-OR) and former Sen. Michael Bennett (R-UT) proposed first in 2007 and then again in 2009 during the health care reform debate. Under Roy-Holtz-Eakin, Medicaid and Medicare beneficiaries would be shifted away from public insurance into private plans on Obamacare’s insurance marketplaces, consumer protections and regulations governing the marketplaces would be rolled back to encourage “innovation,” federal insurance subsidies would be limited to Americans up to 300 percent of the federal poverty level (FPL) instead of the Obamcare-mandated 400 percent FPL, and the Medicare eligibility age would be raised by three months every year indefinitely.

These are really poor ideas that would shift costs onto consumers and force many to forgo care, cut Americans’ health benefits by depriving them of Medicaid’s unique benefits, and create costlier private insurance premiums by siphoning seniors out of Medicare — all while doing absolutely nothing to lower the actual cost of American health care, which is the only real way to reduce national health expenditures.

Roy-Holtz-Eakin also caps federal insurance subsidies at 300 percent FPL rather than 400 percent FPL in an effort to contain government expenses. In the op-ed, the authors implicitly justify this by citing the example of Massachusetts — the birthplace of Obamacare — where reform has been working pretty well. But that ignores the fact that Massachusetts is a relatively wealthy state with unemployment and poverty below the national average. For the rest of the country, that cap would be pretty devastating, pricing millions of Americans out of the health care system. Roy and Holtz-Eakin also do not want subsidies to increase faster than inflation, even though that provision is meant to address the well-established reality that health care inflation tends to accelerate faster than regular inflation.

Although Roy-Holtz-Eakin may be an honest proposal for curbing costs, it is largely based on the dishonest notion that relinquishing more responsibility — a euphemism for shifting costs — onto consumers and making them pay more for their care will somehow magically curb the cost of health care. It won’t — but it will make Americans avoid receiving treatment, leading to a form of self-rationing that is particularly ironic given Roy and Holtz-Eakin’s goal of preventing government rationing of health care.

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Averting the Sequester and Finding a Balanced Approach to Deficit Reduction

The White House

Office of the Press Secretary

WASHINGTON, DC—In this week’s address, President Obama urged Congress to act to avoid a series of harmful and automatic cuts—called a sequester—from going into effect that would hurt our economy and the middle class and threaten thousands of American jobs.  The President urged Congress to find a balanced approach to deficit reduction that makes investments in areas that help us grow and cuts what we don’t need.

The audio of the address and video of the address will be available online at www.whitehouse.gov at 6:00 a.m. ET, Saturday, February 9, 2013.

Remarks of President Barack Obama
As Prepared for Delivery
The White House
February 9, 2013

Hi, everybody.  Over the last few years, Democrats and Republicans have come together and cut our deficit by more than $2.5 trillion through a balanced mix of spending cuts and higher tax rates for the wealthiest Americans.  That’s more than halfway towards the $4 trillion in deficit reduction that economists and elected officials from both parties say we need to stabilize our debt. 

I believe we can finish the job the same way we’ve started it – with a balanced mix of more spending cuts and more tax reform.  And the overwhelming majority of the American people agree – both Democrats and Republicans.  

Now, my preference – and the preference of many Members of Congress – is to do that in a balanced, comprehensive way, by making sensible changes to entitlement programs and reforming our tax code.  As we speak, both the House and Senate are working towards budget proposals that I hope will lay out this kind of balanced path going forward. 

But the budget process takes time.  And right now, if Congress doesn’t act by March 1st, a series of harmful, automatic cuts to job-creating investments and defense spending – also known as the sequester – are scheduled to take effect.  And the result could be a huge blow to middle-class families and our economy as a whole.

If the sequester is allowed to go forward, thousands of Americans who work in fields like national security, education or clean energy are likely to be laid off.  Firefighters and food inspectors could also find themselves out of work – leaving our communities vulnerable.  Programs like Head Start would be cut, and lifesaving research into diseases like cancer and Alzheimer’s could be scaled back.  Small businesses could be prevented from getting the resources and support they need to keep their doors open.  People with disabilities who are waiting for their benefits could be forced to wait even longer.  All our economic progress could be put at risk.

And then there’s the impact on our military readiness.  Already, the threat of deep cuts has forced the Navy to delay an aircraft carrier that was supposed to deploy to the Persian Gulf.  As our military leaders have made clear, changes like this affect our ability to respond to threats in an unstable part of the world.  And we will be forced to make even more tough decisions in the weeks ahead if Congress fails to act.

The good news is, there’s another option.  Two months ago, we faced a similar deadline, and instead of making deep, indiscriminate cuts that would have cost us jobs and slowed down our recovery, Democrats and Republicans came together and made responsible cuts and manageable changes to our tax code that will bring down our deficit.  This time, Congress should pass a similar set of balanced cuts and close more tax loopholes until they can find a way to replace the sequester with a smarter, longer-term solution. 

Right now, most Members of Congress – including many Republicans – don’t think it’s a good idea to put thousands of jobs at risk and do unnecessary damage to our economy.  And yet the current Republican plan puts the burden of avoiding those cuts mainly on seniors and middle-class families.  They would rather ask more from the vast majority of Americans and put our recovery at risk than close even a single tax loophole that benefits the wealthy.

Over the last few years, we’ve made good progress towards reducing our deficit in a balanced way.  There’s no reason we can’t keep chipping away at this problem.  And there’s certainly no reason that middle-class families and small businesses should suffer just because Washington couldn’t come together and eliminate a few special interest tax loopholes, or government programs that just don’t work.  At a time when economists and business leaders from across the spectrum have said that our economy is poised for progress, we shouldn’t allow self-inflicted wounds to put that progress in jeopardy.

So my message to Congress is this: let’s keep working together to solve this problem.  And let’s give our workers and our businesses the support they need to grow and thrive.  Thanks, and have a great weekend.

Check out all the ways you can get involved with President Obama's State of the Union Address.

With less than three weeks before devastating, across the board cuts - the so-called "sequester" - are slated to hit, affecting our national security, job creation and economic growth, we must make sure we are having a debate over how to deal with these looming deadlines that is based on facts- not myths being spread by some Congressional Republicans who would rather see these cuts hit than ask the wealthiest and big corporations to pay a little bit more.

President Obama urges Congress to act to avoid a series of harmful and automatic cuts—called a sequester—from going into effect that would hurt our economy and the middle class and threaten thousands of American jobs.

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View the original article here

Weekly Address: Averting the Sequester and Finding a Balanced Approach to Deficit Reduction

The White House

Office of the Press Secretary

Hi, everybody. Over the last few years, Democrats and Republicans have come together and cut our deficit by more than $2.5 trillion through a balanced mix of spending cuts and higher tax rates for the wealthiest Americans. That’s more than halfway towards the $4 trillion in deficit reduction that economists and elected officials from both parties say we need to stabilize our debt. 

I believe we can finish the job the same way we’ve started it – with a balanced mix of more spending cuts and more tax reform. And the overwhelming majority of the American people agree – both Democrats and Republicans.

Now, my preference – and the preference of many Members of Congress – is to do that in a balanced, comprehensive way, by making sensible changes to entitlement programs and reforming our tax code. As we speak, both the House and Senate are working towards budget proposals that I hope will lay out this kind of balanced path going forward. 

But the budget process takes time. And right now, if Congress doesn’t act by March 1, a series of harmful, automatic cuts to job-creating investments and defense spending – also known as the sequester – are scheduled to take effect. And the result could be a huge blow to middle-class families and our economy as a whole.

If the sequester is allowed to go forward, thousands of Americans who work in fields like national security, education or clean energy are likely to be laid off. Firefighters and food inspectors could also find themselves out of work – leaving our communities vulnerable. Programs like Head Start would be cut, and lifesaving research into diseases like cancer and Alzheimer’s could be scaled back. Small businesses could be prevented from getting the resources and support they need to keep their doors open. People with disabilities who are waiting for their benefits could be forced to wait even longer. All our economic progress could be put at risk.

And then there’s the impact on our military readiness. Already, the threat of deep cuts has forced the Navy to delay an aircraft carrier that was supposed to deploy to the Persian Gulf. As our military leaders have made clear, changes like this affect our ability to respond to threats in an unstable part of the world. And we will be forced to make even more tough decisions in the weeks ahead if Congress fails to act.

The good news is, there’s another option. Two months ago, we faced a similar deadline, and instead of making deep, indiscriminate cuts that would have cost us jobs and slowed down our recovery, Democrats and Republicans came together and made responsible cuts and manageable changes to our tax code that will bring down our deficit. This time, Congress should pass a similar set of balanced cuts and close more tax loopholes until they can find a way to replace the sequester with a smarter, longer-term solution. 

Right now, most Members of Congress – including many Republicans – don’t think it’s a good idea to put thousands of jobs at risk and do unnecessary damage to our economy. And yet the current Republican plan puts the burden of avoiding those cuts mainly on seniors and middle-class families. They would rather ask more from the vast majority of Americans and put our recovery at risk than close even a single tax loophole that benefits the wealthy.

Over the last few years, we’ve made good progress towards reducing our deficit in a balanced way. There’s no reason we can’t keep chipping away at this problem. And there’s certainly no reason that middle-class families and small businesses should suffer just because Washington couldn’t come together and eliminate a few special interest tax loopholes, or government programs that just don’t work. At a time when economists and business leaders from across the spectrum have said that our economy is poised for progress, we shouldn’t allow self-inflicted wounds to put that progress in jeopardy.

So my message to Congress is this: let’s keep working together to solve this problem. And let’s give our workers and our businesses the support they need to grow and thrive. Thanks, and have a great weekend.

President Obama urges Congress to act to avoid a series of harmful and automatic cuts—called a sequester—from going into effect that would hurt our economy and the middle class and threaten thousands of American jobs.

Here's quick glimpse at what happened this week on WhiteHouse.gov.

Vice President Biden's Chief of Staff Bruce Reed sat down with us to give us a quick update on the work the President and Vice President have been doing since the President released his plan to reduce gun violence.

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Weekly Address: A Balanced Approach to Growing the Economy in 2013

The White House

Office of the Press Secretary

WASHINGTON, DC— In this week’s address, President Obama called on Congress to work together on a balanced approach to reduce our deficit and promote economic growth and job creation. Our businesses created 2.2 million jobs last year, and we just learned that our economy created more jobs over the last few months than economists originally thought.  Our economy is poised to expand in 2013 if Washington politics doesn’t get in the way, and the President called on Congress to work together to keep moving us forward.

The audio of the address and video of the address will be available online at www.whitehouse.gov at 6:00 a.m. ET, Saturday, February 2, 2013.

Remarks of President Barack Obama
Weekly Address
The White House
February 2, 2013

Hi, everybody. 

In the coming weeks, we face some important decisions about how to pay down our debt in a way that grows our economy and creates good jobs – decisions that will make a real difference in the strength and pace of our recovery. 

We began this year with economists and business leaders saying that we are poised to grow in 2013.  And there are real signs of progress:  Home prices are starting to climb again.  Car sales are at a five-year high.  Manufacturing is roaring back.  Our businesses created 2.2 million jobs last year.  And we just learned that our economy created more jobs over the last few months than economists originally thought. 

But this week, we also received the first estimate of America’s economic growth over the last few months.  And it reminded us that bad decisions in Washington can get in the way of our economic progress.   

We all agree that it’s critical to cut unnecessary spending.  But we can’t just cut our way to prosperity.  It hasn’t worked in the past, and it won’t work today.  It could slow down our recovery.  It could weaken our economy.  And it could cost us jobs – now, and in the future. 

What we need instead is a balanced approach; an approach that says let’s cut what we can’t afford but let’s make the investments we can’t afford to live without.  Investments in education and infrastructure, research and development – the things that will help America compete for the best jobs and new industries. 

Already, Republicans and Democrats have worked together to reduce our deficits by $2.5 trillion.  That’s a good start.  But to get the rest of the way, we need a balanced set of reforms. 

For example, we need to lower the cost of health care in programs like Medicare that are the biggest drivers of our deficit, without just passing the burden off to seniors.  And these reforms must go hand-in-hand with eliminating excess spending in our tax code, so that the wealthiest individuals and biggest corporations can’t take advantage of loopholes and deductions that aren’t available to most Americans. 

2013 can be a year of solid growth, more jobs, and higher wages.  But that will only happen if we put a stop to self-inflicted wounds in Washington.  Everyone in Washington needs to focus not on politics but on what’s right for the country; on what’s right for you and your families.  That’s how we’ll get our economy growing faster.  That’s how we’ll strengthen our middle class.  And that’s how we’ll build a country that rewards the effort and determination of every single American. 

Thanks.  And have a great weekend.

Vice President Joe Biden, Dr. Jill Biden, and Deputy Secretary of Defense Ashton Carter visit with Wounded Warriors and their medical caretakers at Landstuhl Regional Medical Center (RMC) in Landstuhl, Germany.

Bragging rights aren't the only thing on the line for the mayors during tonight's big game -- the winning city will also get a day of service from the mayor of the opposing team.

In this week’s address, President Obama calls on Congress to work together on a balanced approach to reduce our deficit and promote economic growth and job creation.

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