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An Open Letter to Harry Reid on Controlling Health Care Costs

by:   |  Robert Reich's Blog

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(Photo: jackhynes / flickr)

Dear Senator,

I know you're in a tough spot. It would be bad enough if you only had to get Ben Nelson, Evan Bayh, Mary Landrieu, and Blanche Lincoln on board, but anyone who has to kiss Joe Lieberman's derriere deserves a congressional medal of honor.

But Harry, you really need to take on future health-care costs. The House bill fails to do this. The public option in the House bill is open only to people without employer-provided health insurance. That will be too small a number to have bargaining clout to get good deals from drug companies and medical providers. And it will mainly attract people who have more expensive medical needs, which is why the Congressional Budget Office decided it would cost more than it would save.

You also know a public insurance option that's open to everyone would cut future health costs dramatically by imposing real competition on private for-profit insurance plans. That's why the private insurers hate the idea. Even if states were allowed to opt out of this robust public option, the big states would almost certainly opt in, giving it the scale needed to negotiate great deals from drug companies and medical providers. This would put pressure on any state that opted out because their citizens would soon discover they're paying far more.

In addition to the House's weak public option, the deals the White House and Max Baucus made with the drug companies and the AMA will force Americans to pay even more. If, on the other hand, Medicare were allowed to negotiate lower drug prices, biotech drugs weren't granted a twelve-years monopoly, and doctors had to accept Medicare reimbursements in line with legislation enacted years ago, Americans would save billions.

You know all this but you're also trying to get 60 votes in order get any bill to the floor. You have my sympathies, but unless you get these reforms into the final Senate bill you're not really helping most Americans afford future health care.

So what do you do?

First, try for the "reconciliation" process, which requires only 51 votes. Every one of the reforms I mention above would fit under the Byrd rule.

If that doesn't work, wrap these reforms together -- a public option open to everyone (allow states to opt out of this if they dare), Medicare-negotiated drug benefits, no 12-year monopoly for new drugs, and a major squeeze on Medicare reimbursements for doctors -- and have CBO score the savings. I guarantee you, the number will be large. Then you should dare anyone, Democrat or Republican, to vote against saving Americans so much money in years ahead. How is Ben Nelson going to face voters in Nebraska who would have to pay, say, 20 percent more for health care in the future if Nelson refuses to go along?

If neither of these tactics work, then take whatever bill you must to the Senate floor. But then introduce this reform package as the very first amendment to the bill. Call it the "Ted Kennedy Amendment for Helping Middle Class Families Afford Health Care," and whip the hell out of the Democrats. Get the President to help you. Surely Joe Biden will. If you can't get 51 votes out of Dems for this, publish the list of Dems who vote against it, strip them of their committee chairs or sub-chairs, and make sure the Democratic Senate Campaign Committee gives them zilch when they're up for re-election.

Nobody promised you this would be easy, Harry. But, hell, why are you there, anyway? Your responsibility isn't just to pass whatever will muster 60 votes and that the President and Dems can later call "health care reform." It's to do the right thing by the American people and bring down future health-care costs. Don't cave in to Lieberman or Nelson or the drug companies or the private insurers or the AMA or anyone else. Lead the charge.

All best.

  

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Robert Reich was the nation's 22nd Secretary of Labor and is a professor at the University of California at Berkeley. His latest book, "Supercapitalism," is now available in paperback.

Comments

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Hope they will listen to you

Hope they will listen to you because that is what makes sense. The scream will be loud but it will pay off. And why is it that the public option won't kick in until 2013?

Thank you, Robert Reich, for

Thank you, Robert Reich, for putting into words the thoughts (and fears of the current health care bills) that so many middle class health care supporters feel.

I agree, costs must be

I agree, costs must be addressed, and are not. I have written to everyone I could think was in decision making how this might be done, but noone has responded. THere is a model, the comprehensive Health pLanning act or the Health systems act, from the '60's and early 70's until Reagan was elected President and lead the abolision of those acts. these provide good models for cost containment in health care. It is absolutely essential. I tend to see the present heavily lobbied efforts as great for insurance companies but not for the citizens. In the wider picture, we are a nation in tow wars, with no draft, with the highest per capita imprisonment rate in the world. Hello America.

Go where the money is: until

Go where the money is: until we cut out the 30% plus added on by the insurance industry basically for nothing, this nation will not be competative in the world economy. The cowardly Congress is reluctant to raise taxes to provide health care, so instead they "tax" the middle class via an onerous mandate. Taxation by mandate is a horrible precedent - what's next on the list? When voters realize their government has forced them to fund the yachts and second homes of the CEOs of Wellpoint and Blue Cross, the Democratic party will be history!

Excellent! Thank you for

Excellent! Thank you for saying what needed to be said. Now will Harry listen??

The voice of Sanity through

The voice of Sanity through Robert Reich. I agree and admire your tactfulness. Unfortunately, Harry Reid is notorious for his dereliction to do what needs to be done for America and it's people. He's one of the many Apples that need to be pruned from the tree.

Single-Payer (Medicare for

Single-Payer (Medicare for All). It's still the only plan that makes sense.

Since by European standards,

Since by European standards, the U.S. is something of a third-world nation and cheaper to manufacture in, why don't you let someone (Kucinich/Paul, say) threaten to break patents, as Ecuador, Brazil, Thailand, and some other nations are doing or threatening. This would make for some interesting discussion. The whole protected-monopoly thing is government-enforced, right? That way Pharma would at least spread around the side-effect and off-label issues that are starting to get interesting. Just wondering what fancier heads than mine think of this idea.

these are great ideas but- I

these are great ideas but- I can't see politicians doing their job, implementing what is good for the people, without considering their personal future first.

Reich is right again. The

Reich is right again. The Republican'ts are totally sold out to their corporate sponsors, and too many of the Dumbocrats as well! The thing is we have to call, e-mail, fax, whatever these clowns as often as we can, but unless we send big bucks we are still not likely to be heard.

How much does the useless

How much does the useless military cost? The war profiteers like Halliburton, KBR, Blackwater et al... how much have they cost the nation? If we pull out of Iraq, and stop wasting money on the military stupidity and incompetence in Afghanistan, and stop placating the Pakistanis with US taxpayer money that is just wasted there (and just worsens the anti-colonial mindset which makes Pakistanis get closer to the Taliban) we would have more than enough money to support a decent public health care system and let us join the first world, the civilized world again... (Getting rid of the parasitic health care "industry" and the unbridled greed of Big Pharma would be a good first step.) ---INCIDENTALLY, HAS ANYONE HAD THE GUTS TO ASK WHY HEALTH CARE SHOULD BE CONSIDERED AN "INDUSTRY" IN THE FIRST PLACE?

Harry will get it done in

Harry will get it done in whatever way it needs to get done. I am sure he's shaking hands and encouraging every senator to tak ea good hard look at undeniable facts like this: http://cli.gs/23yYaM/

You could pay for health

You could pay for health costs if you didn't make war in Afghanistan and Iraq.

Replace Harry Reid with

Replace Harry Reid with Barbara Boxer, Byron Dorgan, or Bernie Sanders (an Independent). Sen. Reid is afraid to wield the power given to him from the last 2 elections. He can benefit from listening to old speeches of FDR (who welcomed the battle with lobbyists and big corporations). Sen. Reid continues to cave on every progressive issue. He can leave the Senate and work for the insurance companies.

While you're at it,

While you're at it, encourage our bi-partisan bystander President to break the spell of Rahm Emanuel and join weak-kneed Harry Reid in finding some courage

Unfortunately, Harry isn't

Unfortunately, Harry isn't going to read this letter. He, Obama and the rest of the Democrats took most sensible proposals off the table before they began the process. They do not serve the people anymore.

It's Way Past The Time For

It's Way Past The Time For Some Social Conscience, Socialism, Christian Obligation, Common Sense Or What Ever The Hell You Want To Call It To Kick In. The Country Has Some Clear Choices To Make For Problems That Are NEVER Going To Just "Go Away" As Many Of These Reactionary Types Seem To Day Dream. And Whats Worse Is, You Can Not/ Nor Will Not Just Scare Them Away With Survivalist's/Guns and All The Rest of That Nonsense... This Nation Has Grown,It Has Adult Problems. 1. Deal With Labor Unions To Represent Working Class Issues Or Deal With Home Grown Terror In The Form Of Militias... 2. Fix Health Care Or Put The Nations Military Recruitment Pool At Risk and Give Over The Nations Industrial Capacity To Nations That Have A Serious Health Care Policy. 3. Clean Up The Media... Reagan For All His Connections ; Bush With All His Religion; And All The Rest Of The Hypocrites On The Screen, On The Tube; On The News Stands Ever Under Took Any Effort To Address Media Leadership In A Nation The Proclaims To Value and DEPEND ON THE Media For Freedom... Are Real Social Values Now Poison???

What he said! Right on and

What he said! Right on and to the point.