What the Dems’ victory on Medicare tells us

If Dems were as willing to stand up to Republicans on foreign policy as they are on domestic policy, we’d all be a lot better off.

It’s a common refrain in Democratic circles: in the major political disputes in DC, Dems will say the right things, and endorse the right policies, but when push comes to shove, they’re going to cave. It doesn’t matter if Bush is ridiculously unpopular, and it doesn’t matter if Dems are in the right, because they just don’t have the stomach for a prolonged political fight.

But the criticism is only half right. On matters of foreign policy and national security, Democrats do, regrettably, back down far too often, in large part because they fear the perception of weakness (which, ironically, they perpetuate by yielding to GOP demands). But on matters of domestic policy, Dems fight from a position of strength and confidence. They don’t fear a public backlash, because they know their position is going to be more popular with voters anyway.

This week’s fight over Medicare is a terrific example of what Dems can do when they play the game properly. Paul Krugman explains in a spot-on column today just how significant the Dems’ win really is: “It was the first major health care victory that Democrats have won in a long time. And it was enormously encouraging for advocates of universal health care.”

In previous years, payments to doctors were maintained through bipartisan fudging: politicians from both parties got together to waive the rules. In effect, Congress kept Medicare functioning by expanding the federal budget deficit.

This year, the Democratic leadership decided, instead, to link the “doctor fix” to the fight against privatization and offered a bill that maintains doctors’ payments while reining in those expensive private fee-for-service plans. Last month, the Senate took up this bill — but Democrats failed by one vote to override a Republican filibuster. And that seemed to be that: soon after that vote, Senators Max Baucus and Charles Grassley had another bipartisan fudge all ready to go.

But then Democratic leaders decided to play brinkmanship. They let the doctors’ cuts stand for the Fourth of July holiday, daring Republicans to threaten the basic medical care of millions of Americans rather than give up subsidies to insurance companies. Over the recess period, there was an intense lobbying war between insurance companies and doctors.

And when the Senate came back in session, it turned out that the doctors — and the Democrats — had won: Senator Kennedy was there to cast the extra vote needed to break the filibuster, a number of Republicans switched sides and the bill passed with a veto-proof majority.

But this is about more than just one victory on one bill. The Dems’ efforts this week portend what will hopefully be an even more significant victory in the near future.

Because, as Krugman noted, if Dems can play for keeps on healthcare the way they did this week, they’ll know what to do once Bush leaves office (if Obama can beat McCain):

Here’s how it will play out, if all goes well: early next year, President Obama will send his health care plan to Congress. The plan will face vociferous opposition from the insurance industry — but the Medicare vote suggests that this time, unlike in 1993, Democrats will hold together.

Unless Democrats win even bigger than expected, however, they won’t have the 60 Senate votes needed to override a filibuster. What the Medicare fight shows is that the Democrats could nonetheless prevail by taking their case to the public, daring their opponents to stand in the way of health care security — so that in the end they get some Republicans to switch sides, and get the legislation through.

A lot can still go wrong with this vision. But the odds of achieving universal health care, soon, look a lot higher than they did just a couple of weeks ago.

What’s more, TNR’s Jonathan Cohn took this one step further, arguing that this week also showed that physicians, unlike in previous years, are poised to be a Democratic ally, not an opponent.

From the late Progressive Era, when medical societies in California and New York squelched drives for “compulsory sickness insurance” in those states, physicians have been a powerful — and at times pivotal — opponent of universal coverage. The American Medical Association famously attacked Harry Truman’s proposal for national health insurance in the late 1940s, turning “socialized medicine” into a permanent part of the political lexicon. And it fought bitterly, if unsuccessfully, to block the creation of Medicare in the 1960s.

But physician opinion about universal health care seems to be shifting, as noted previously in this space. And one reason, it’s widely assumed, is their exasperation with the health insurance industry. Historically, it was doctors’ intense desire to remain autonomous — clinically and financially — that drove their opposition to universal coverage. But in the 1990s, as insurers turned to the techniques of managed care, doctors learned that insurance company overseers could be just as onerous — and, seemingly, even more arbitrary — than government.

The fact that Kennedy, of all people, should emerge as the physicians’ savior says it all. For most of his career, many doctors saw him as public enemy #1, since he was the lawmaker most closely identified with universal coverage.

To be sure, the medical community opinions are far from unanimous. Plenty of physicians still hate universal health care — and Kennedy!

But if a large segment of physicians see their interests diverging from the insurance industry’s, that changes the political calculus about universal coverage. Doctors are a powerful lobbying force, as much for their symbolic power as their leverage in Washington. A coalition of reformers that counted physicians among its strong supporters would be difficult to defeat. In fact, I’ve always thought the winning strategy for universal coverage was one that pit both doctors and employers (who would benefit from more consistent and controlled benefit costs) against insurers and drugmakers.

As if we needed another reason to vote Democratic this year. On healthcare, McCain is a disaster. But imagine what a Democratic president and a Democratic Congress — neither of which are willing to back down on the issue of healthcare — can do for a healthcare system in desperate need of massive reform.

It’s too bad the larger percentage of Congressional Democrats do not care about FISA, the 4th amendment and the Constitution. The Democrats won it once( Fisa) and sold Americans and America up the river twice. Lobbyists continiue to rule

  • I’m sure McCain doesn’t even want to broach the subject of Healthcare – now that Elizabeth Edwards’ TV spots are hitting our screens (along with some SEIU ads I’ve also seen), it’s a good time for Obama to do a ‘Healthcare week’ on the campaign trail…

  • Problem is the obama will not allow universal health care – he would rather just more money to healthcare providers and insurance companies.

    They make money by NOT providing healthcare services.

    “Yes we can” means that obama is confident he can snooker you with lies.

    The “change” obama refers to is that he will bamboozle progressives and liberals to win the election instead of fooling the right.

    In the end, its gonna be the same corpocracy that owns the White House.

  • I think it’s pretty naive to think that because the physicias supported not having their medicare payments cut, they’d then also support universal health care.

    I supported Bush’s plan to give me $600, but that doesn’t mean I think he has a great economic plan.

  • The spinelessness of Dems is why I now count myself an Independent. After all the years of the rapacious Rethugs showing them how it’s done, they still acquiesce to Bush’s agenda time after time. Even war can’t rouse the opposition. The Rethugs in power threatened to do away with the fillibuster if the Dems even squeaked. The Dems in power still let the Rethugs run roughshod over them. Disgusting and disheartening. I’m sure they will cave on universal health too and enact some cumbersome, unworkable plan for the currently uninsured, even though there are plenty of models to follow from other countries. The fact that Obama even considers a Rethug for VP (God forbid!) or in the cabinet continues to show that bipartisanship is really one sided after all (transportation notwithstanding).

  • Gee, little bear, you can’t even correct your typos between pasting the same comments all over various blogs? It’s not like you don’t have the time.

    I think it’s pretty naive to think that because the physicias supported not having their medicare payments cut, they’d then also support universal health care.

    That’s true–to a degree. The majority of physicians are now for or leaning toward universal health care. Most of them readily recognize how broken the current system is and they are actually interested in healing people. The exceptions tend to be very highly paid specialists who stand to lose income under UHC.

    The insurance companies remain intractable, of course. They will have to be overridden, because for obvious reasons of profit, they cannot be persuaded.

  • Politicians are spineless, most if the time. It’s their nature. It’s hard for them to say no to harmful legislation when they think that opposition will make them look bad to the public (taking stances against flag-burning, against invading Iraq, against three strikes and you’re out, against christian domination, against FISA, and so on). However, rather than the last few days of handwringing over FISA, people should realize that a combination of Democratic majorities with a Democratic white house is significantly less likely to get us involved in the nonsensical crap that the Republicans love to wallow into in the first place, and is less likely to propose all the harmful solutions that the Republicans inherently think of. Dems aren’t perfect, and Barack is fairly centrist, but collectivelysolid democratic majorities are more likely to talk themselves into doing some reasonably right things. Get democrats into office, and then push for progressive solutions and try and fix the damage of the Bush years.

    Some of the worst things should be fixed pretty quickly when the Reichwing realizes that the powers they gave to Bush and Cheney have been inherited by a bunch of Democrats. (It’s too bad Barack won’t speed that counter-reaction along by handing Bush over to the Hague, sending Cheney to Guantanamo for a few rounds of waterboarding, and threatening to eavesdrop on a bunch of leading republicans’ boyfriends and girlfriends: that could be quite fun.)

  • All of this assumes that when Bush vetoes the Medicare bill, that those 9 Republicans will continue to defy Dear Leader. That’s an assumption that reminds me of what “assume” does…

  • Actually, one of my doctors — who is a specialist — fortunately because of Medicaid, I’ve never had to find out how highly paid — is a strong proponent of universal health care and a single payer system. He realizes his income might be cut, but he does care about helping people, and he has a much bigger problem with ‘other people’ (i.e., insurance companies) interfering in matters that should be ‘his call’ and which replace sound medical judgment with financial considerations.

    But — according to Tom C., at least — it is too early to crow, because the Republicans who voted for this will never vote to overturn the Bush veto. We shall see.

  • This post follows closely the kick-off media event for the Health Care for America Now campaign on Tuesday this week. The campaign is encouraging to me simply because the broad scope of its coalition–from business, to physicians, to women, to civil rights advocates–is coming together to push universal health care for different reasons and will appeal to both sides of the aisle.

    But health care aside, I can only wonder if dems will step up on the civil rights/liberties front and actually do something about it. The FISA “compromise” bill passed in a landslide and the ADA Amendments Act is stagnant in the Senate. Karl Rove failed to serve a House subpoena and goes unpunished. Attorney General Mukasey still defends waterboarding and the unitary executive (specifically at a July 9 Judiciary Committee hearing I attended and wrote about).

    Maybe the transition will produce a more powerful corps of democrats and a change in leadership, but I am pessimistically skeptical of change coming on the foreign policy front, where democrats, I agree, cower in the face of a needed confrontation. Hopefully January brings the beginning of the return of good, balanced government and change to the U.S.

  • whoa whoa whoa – the dems vote to give doctors more money from the taxpayers’ coffers = the dems won’t collapse in the face of insurance industry pressure and lobbying? Was there any lobbying against this bill from anyone other than small government conservatives and the unified republican party that seeks to show the dems can accomplish nothing? were you not here on Wednesday?

  • nerpzilla –

    It says RIGHT IN THE ARTICLE that there was an intense lobbying battle between insurance companies and doctors. So, yes, there was “lobbying against this bill”.

    They let the doctors’ cuts stand for the Fourth of July holiday, daring Republicans to threaten the basic medical care of millions of Americans rather than give up subsidies to insurance companies. Over the recess period, there was an intense lobbying war between insurance companies and doctors.

  • N. Wells touches on — and sadly passes over — the most difficult decision any politician has to face, “Fulbright’s Dilemma.” The question is not ‘looking bad’ the question is whether you take a position opposed to that of the majority in your district knowing that
    a) it will cost you the next election
    b) the odds are you will be beaten by someone who opposes all the good things you stand for that your district — maybe grudgingly — accepts, and
    c) if you lose your seat, you threaten a majority for your party and may throw the House or Senate to a Party that will not merely put into practice the thing you oppose but many other things.

    It is not an easy decision, and I’ll get back to this after yet another *@#!*% doctor’s appointment.

  • Prup, I clearly said “tend to be highly paid specialists.” I didn’t claim that everyone opposed to UHC is a highly paid specialist, nor did I imply that all highly paid specialists are anti-UHC. But thanks for weighing in.

  • The doctors I have spoken with claim that their objections to health care reform rest on several points never mentioned by the press: (1) lack of involvement by doctors and those involved in health care delivery in the planning and policy-making process; and (2) no serious attempt at reform because only who pays and how much is paid are discussed, never which services shall be given to which people. There can be no serious reform of health care costs without addressing the fact that heroic measures at end-of-life are enormously costly and inconsistent with health care delivery in the other nations whose systems are used as models for reform.

    In the LA area we have problems with emergency room use by people who have no insurance and no primary care for routine problems. In particular, homeless people with chronic, unmanaged health problems are in and out of the emergency room several times each week, using services that could be delivered more cheaply or even prevented if there were a support system outside the hospital addressing their needs. For example, imagine someone with uncontrolled diabetes who is actively alcoholic and not eating properly, who collapses in diabetic coma regularly or is frequently found wandering in traffic disoriented and brought in by paramedics. Without a comprehensive approach that addresses the problems of the homeless, there can be no meaningful reform of emergency room costs that will keep these centers open and available to the broader public. No one talks about this issue except emergency room doctors who are frustrated because the discussion does not include the realities they experience daily. Even homeless advocates are focused on “dumping” of patients after they are released, because there is nowhere for them to go when they are homeless and give no address during check in, have no relatives or people willing to be responsible for their after-care, and are frequently not mentally capable of caring for themselves (there’s that pesky psychological issue again).

    Yes, we need to address the cost of insurance to the average person, and the fact that working families cannot get insurance, or that people with pre-existing conditions need coverage. However, these are not the issues that are driving up health care costs. It is the family who will not say goodbye but insists on measures that not only do little to prolong life but also are painful to the patient, because there is little support for families when someone is dying. Terry Schaivo was not solely about religion but about our attitude toward health care and the desire to live forever, played out by proxy. The exaltation of youth and the denigration of aging, exemplified in this campaign, is a piece of this health care puzzle too.

  • No one talks about this issue except emergency room doctors who are frustrated because the discussion does not include the realities they experience daily.

    Mary, everyone talks about this issue. Where have you been? Every week you indignantly present some issue you’ve just learned about that progressives have been discussing for years.

  • There can be no serious reform of health care costs without addressing the fact that heroic measures at end-of-life are enormously costly and inconsistent with health care delivery in the other nations whose systems are used as models for reform.

    Yes, and this is another issue that is frequently discussed by people who didn’t just get on the bus yesterday. I will add that, since the majority of end-of-life issues surround elderly patients and you correctly note that we as a society have difficulty honestly facing the huge costs of heroic measures unlikely to prolong an ending life for any appreciable period, your snipe about the “denigration of aging in this campaign” is more a reflection of your oft-displayed discomfort with your own aging and your need to manufacture complaints against Obama than it is a valid reflection of the current conversation on health care.

  • Every one of the physicians that I know and went to school with are in favor of universal healthcare. It certainly saves them a lot of hassle because they can spend their time practicing medicine instead of arguing with insurance companies. Given the present economic situation, most people will be unable to pay their medical bills out of their own pockets, so that means some other source must be found. Doctors, who have had the experience of dealing with Medicare and insurance companies, have realized that insurance companies are a real pain and time waster to deal with. Medicare is a lot less hassle.

  • “On matters of foreign policy and national security, Democrats do, regrettably, back down far too often, in large part because they fear the perception of weakness (which, ironically, they perpetuate by yielding to GOP demands). ”

    CB,

    I just had a thought that I hadn’t had before – perhaps it isn’t that the Democrats back down all the time…maybe they actually agree with the Republicans by and large on these issues and let them do all the heavy lifting. I’d assume that the Dems are more beholden to whatever remains of The Left and as such probably have more to lose by coming out guns a’blazin’ on security issues.

    Then again, “Security” has been a big time winner for the Repubs since at least Raygun….

    well clearly I need to think about this some more…never mind 😉

  • Insurance companies also cost doctors money because they have to hire people to deal with insurance companies and kickbacks of fees on a constant basis. Each insurance company has its own idiosyncracies too based on their actuaries’ analyses.

    For example, I had a test by a neurosurgeon for carpal tunnel. My insurance company denied the coverage stating “experimental procedure”. Of course, it wasn’t, but the insurance CLERK actually quoted from a NEJM article that the test was “inconclusive without an angio….test”. Clearly that test wasn’t warranted and the guy was just showing off. The doctor is fighting it, buy that costs his time and that of his staff. STUPID!

  • As one of those high priced specialists who has also worked in Australia (combined system) and Canada I am not concerned about “socialized” health care. What is Medicare and Medicaid if they are not “socialized” ? Single payer is just semantics…..I would rather be paid for 100% of the work that I do rather than 38% of the work that I do….It is time for rational change. There is certainly a fundamental difference in the attitude of ER physicians depending on whether they are salaried or fee-for service….I dont think physicians are either Republican or Democrat they are for sane safe effective health care, lets face it the financial rewards are essentially gone so we might as well have less hassle.

  • Unless legislators make it a ‘Not for Profit” plan it will only be to the degree private ins cos are allowed to profiteer that will change anything at all. And if they can still profiteer to a degree congress will forever be lobbied to increase that degree.

    It’s not National security and foreign policy vs domestic issues that embolden the dems to take a stand as much as it is the money and illegal activity involved. The ins. co are not trying to cover up illegal activity or steal resources of another country involving Billions of dollars. Disaster capitalism reigns supreme in these areas in complete secrecy ruled by executive privilege in which dems are complicit with the war profiteers. Now the Iraqis have to give us 75% of their oil revenues and resources to rebuild a country we destroyed and congress allows this crime family to continue their reign of distortion and murder.

    They should be congratulated for doing the right thing but condemned for only doing it once in awhile. I am optimistic that I will live to see the day we have a not for profit single payer national health care plan for all. Something we should have had long ago.

  • I’d like to agree with CB that the Democrats can effectively stand up to the Republican’ts at least on domestic issues. But frankly I’m not sure of that.

    I’d really prefer to have a Democrat in the White House and reduce the need to get veto proof majorities. They actually cost us MORE, because the Leadership has to buy every extra vote with earmarks and other considerations.

  • …and then they have to take the hit for having earmarks at all, when they are essentially bribes to Republicans (so they can keep their seats).

  • Insurance companies also cost doctors money because they have to hire people to deal with insurance companies and kickbacks of fees on a constant basis. Each insurance company has its own idiosyncrasies too […] — Always hopeful, @20

    And how! I had appendectomy in December. Took the doctor’s “receptionist” (actually, she’s there specifically to deal with insurance companies) till *March* to screw the payment out of the insurer because… I was in the hospital for only 23 hrs, and 24 is the minimum which counts as hospital stay.

    And as for idiosyncrasies… 15 months ago, my GP put me on a cholesterol-lowering medication (that Polish food is delicious but healthy? Not so much). We carefully monitored it for side effects — none. This year’s checkup showed that the medication is working *very well*. But. As of July 1st, the U where my husband used to teach and from where we still get our health insurance, switched plans. And the new plan will not pay for the meds, not even the half that the other plan paid for. They will, however, pay for another medication. Which happens to be one my doc considered and rejected. IOW, some damned bureaucrat is telling my doctor that he knows better how to treat me!

    Reminds me of Bush and his bragging about how a C-grade is sufficient to be a president while an A gets you nowhere and obeying th idiot-child. Why should doctors slog through years of medical school, when an idiot clerk with a profit chart can tell the patient what the patient needs?

    BTW. Both the surgeon who performed the appendectomy and my GP are for not just universal healthcare, but also for single-payer one. Something that none of the presidential runners — with exception of Kucinich — even dared mention.

  • 16. On July 11th, 2008 at 11:14 am, Maria said:

    Mary, everyone talks about this issue. Where have you been?
    _________________________

    Earning her McCain points?

  • First, do not take this post to mean that we currently have a good system. Now, on to a couple quick points: 1. Healthcare costs in America have risen in direct proportion to the percentage of healthcare costs paid by the government. Government programs are currently the #1 individual payer of healthcare in the US, accounting for over 30% of all $$ spent on care in this country (some would try to convince you that the number is as high as the upper 40’s %). In other words, the more the government gets involved, the more expensive it gets for EVERYONE. The government needs to get out of the way. In Minnesota, if I want to buy health care insurance, I am required to include mental health coverage in my policy. I don’t want mental health insurance, that’s a risk I’m willing to take and suffer the consequences if needs be. Same goes for many of the other required coverages in policies all over the country. I should be free to make my own decisions on coverage, be they good or foolish. 2. I have relatives who live in Canada, and whenever they need to see a doctor for any real issue, they come to the US and spend money out of their own pocket. And forget about going to the dentist, it’s not an option if you don’t already have an abcess. Enough said.
    Now the most important one (and biggest generality): Profit is good. Again, Profit is good. Every single thing that you see around you exists because of profit. We are an economic powerhouse because of our ability to profit (would be more of a powerhouse if we didn’t have the highest corporate income tax rate in the world, but I digress). If you dislike profit, you dislike America. And that is no overstatement.

  • Where do they talk about these issues? I don’t hear the candidates talking about them. I don’t hear you talking about them. If everyone already knows this stuff, why isn’t it reflected in any discussions here, on the various progressives sites, or in the political dialogs?

    Call me stupid all you want, but YOU have not been talking about this. I know because, unlike you, I don’t filter your posts.

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