AMA Pans ObamaCare; Dems Freak Out

Democratic commentators today are hopping mad that the American Medical Association preempted the President's scheduled speech on healthcare by unequivocally stating that it opposes any healthcare reform that includes a public insurance option.

While committed to the goal of affordable health insurance for all, the association had said in a general statement of principles that health services should be “provided through private markets, as they are currently.” It is now reacting, for the first time, to specific legislative proposals being drafted by Congress.
But in comments submitted to the Senate Finance Committee, the American Medical Association said: “The A.M.A. does not believe that creating a public health insurance option for non-disabled individuals under age 65 is the best way to expand health insurance coverage and lower costs. The introduction of a new public plan threatens to restrict patient choice by driving out private insurers, which currently provide coverage for nearly 70 percent of Americans.”
If private insurers are pushed out of the market, the group said, “the corresponding surge in public plan participation would likely lead to an explosion of costs that would need to be absorbed by taxpayers.”

Typically, Democrats responded to the AMA by, well, lying about their own healthcare plan. After accusing the AMA of having Stockholm Syndrome and "collective battered wife syndrome" Kevin Drum writes:

(1) A public plan wouldn't drive out private insurers unless it turns out that private insurers are actually less efficient than the post office. In which case they'd deserve it. (2) Nor would a public plan restrict choice — unless the AMA's members deliberately tried to sabotage it by refusing to participate. (3) And there would only be a surge in signups if the public plan turned out to be a better deal, which would likely mean lower overall costs even if a greater percentage of those costs was paid for out of taxes.

He clealy hasn't even read the Democratic proposal, which includes a private plan killer:

The bill gives the Secretary of Health and Human Services authority to limit premiums and profits of health plans by forcing plans to rebate to enrollees premiums above a certain margin.
Specifically, §2704(a) is the “Requirement to provide value for premium payments.” A health plan must report how much of their premium revenues are used for clinical services, how much for “activities that improve health care quality,” and how much for “all other non-claims costs.”
§2704(b)(1) then tells the Secretary to look at how much other health plans spent on “all other non-claims costs,” and based on that survey, set an allowable percentage for this category. Plans are then required to rebate premiums if they go above this amount. This is direct (but confusing) regulation of premiums and profit margins.
I found the labeling of this section interesting. It appears that this section will be the justification for the claim that this bill reduces health care costs. Loosely phrased, it appears their argument will be “We’re reducing health care costs by forcing plans to lower their administrative costs and profits.”

Ed Morrissey explains:

The people behind this plan intensely dislike the notion of health-care providers making a profit. The bill gives these people a lever to have government decide how much profit each insurer will be allowed to get from their business. Note that this has nothing to do with the quality of care provided, nor of the costs to the government. Literally, two insurers could charge the government the same amount of money for the same procedures and services, but if one is 20% more efficient than the other, the government will penalize the more efficient insurer.

So on the one hand we have people like Kevin Drum, who persist in claiming that the proposed reform will result in increased efficiency. On the other hand, the actual text of the proposed law, which penalizes efficiency.

Posted by: Gabriel Malor at 11:38 AM

Comments

1 Do you think someone in the Whitehouse is reloading the TOTUS with a new speech?

Posted by: Jean at June 11, 2009 11:41 AM (L64A6)

2 They will get my medical records when they pry them from my cold dead hands.....

Posted by: Eric at June 11, 2009 11:42 AM (N+w6G)

3 I have spoken to a good cross section of medical personnel about this in the past few months; some were even located in Ann Arbor, the bastion of crazy liberalism. I have not found ONE person in the medical field in SE Michigan who favors this. In fact, my low key, reasonable doctor said that if this goes through, it will be a mass genocide on the elderly.

Posted by: shibumi at June 11, 2009 11:42 AM (OKZrE)

4 this is a good sign

Posted by: Shoey at June 11, 2009 11:44 AM (RxUMK)

5 I'm sure Obama's socialization of health care will save or create many jobs.

In the mortuary industry.

Posted by: 18-1 at June 11, 2009 11:45 AM (7BU4a)

6 So on the one hand we have people like Kevin Drum, who persist in claiming that the proposed reform will result in increased efficiency. On the other hand, the actual text of the proposed law, which penalizes efficiency.

Well, I haven't read the text of that Democrat law because...um...Hey! Look over there! Obama's giving another historic speech about (X)!

He's so great, isn't he?

Posted by: Kevin Drum at June 11, 2009 11:45 AM (jH17H)

7 Well, they won't do tort reform so they still have the lawyers. Who would you rather have on health care, doctors or lawyers?

Posted by: DrewM. at June 11, 2009 11:47 AM (PLGGU)

8 (1) A public plan wouldn't drive out private insurers unless it turns out that private insurers are actually less efficient than the post office. In which case they'd deserve it.

It will if employers decide to keep their money and dump their plans and employees into the lap of the gummint.

Posted by: nickless at June 11, 2009 11:49 AM (MMC8r)

Just another way this administration wants to punish all things good and productive. They have already begun to cap executive pay for those greedy wall street folks. Why should healthcare be any different? At least the physicians were able to speak out before mayhem ensues. I hope this move helps slow down this steamroller. I bet those wall street types wished they could take back their support and/or donations. I believe many of them didn't see this coming.

I think I understand that moron who posts here alot..."in the end there is only chaos".

Posted by: Trish at June 11, 2009 11:50 AM (0U5Kd)

10 Hellthcare. Spread the word... literally.

Posted by: Bat Chain Puller at June 11, 2009 11:50 AM (SCcgT)

11 Speaking of healthcare, the swine flu has been declared a pandemic.

Posted by: The Great Satan™ at June 11, 2009 11:52 AM (knIKF)

12 Why should we care what Kevin Drum says?

Seriously, I've never found him particularly insightful, intelligent, or articulate. His mutterings are indistinguishable from the current Democrat/Journo-list talking points.

Posted by: Rob Crawford at June 11, 2009 11:53 AM (ZJ/un)

13 Now we need AARP to wade into this fray.

Posted by: Jean at June 11, 2009 11:56 AM (L64A6)

14 Tasty!

Posted by: Y-not at June 11, 2009 12:01 PM (sey23)

15 I think the AMA sees Medicare/Medicaid expanded to everybody, while they become gummint employees.

Posted by: nickless at June 11, 2009 12:02 PM (MMC8r)

16 Which rational business owner would continue to provide healthcare insurance for the bulk of his employees if the government is offering it 'freely?'

A smaller market would only increase the prices of private insurance. Increasing prices would further shrink the number of private insurance customers to the point of making insurance a boutique industry.

Posted by: Chimney Sweep #8 at June 11, 2009 12:03 PM (kIjlp)

17

See, the liberal assholes will make their defense of this stupid plan so convoluted that no one will be able to attack it.

Sort of like Hillary's fucking flowcharts, made overly complex on purpose to evade criticism.

Their own little language.

"So, you expect to change the economics of the entire health care industry in a few months?"

"Look at my chart, it's right here...oh, you're too stupid to understand it, sorry."

Aren't they just so cute. these Progressive assholes do this time and time again.

Posted by: Rev. Dr. E. Joe Buzz Biden-Miller, PhD, DO, MD at June 11, 2009 12:06 PM (CHf6r)

18 We would continue to offer a set of health care options under a cafeteria type arrangement. But, the cost vice other benefits would only make sense to a small group of people - the restr would go on the "free" plan and spend their benefits on insurance, retirement, etc.

Posted by: Jean at June 11, 2009 12:07 PM (L64A6)

19
Yeah, let's ask Juan Cole what he thinks, too.

Posted by: Unicles at June 11, 2009 12:07 PM (42h7G)

20 Kevin Drum can't be blame for not reading the bill - the Jews are preventing him from doing so.

Posted by: Blogluddite at June 11, 2009 12:08 PM (fDWFP)

21 It will if employers decide to keep their money and dump their plans and employees into the lap of the gummint.

Well of COURSE, anyone with 2 brain cells to rub together realizes this will be the case. The public plan isn't about "providing an option", it is the camel's nose under the tent for outright nationalization.

Posted by: chemjeff at June 11, 2009 12:09 PM (kP58F)

22 This AMA response surprises me. I have known the AMA to be an essentially left wing organization for 20 years. Somebody woke up from their coma, it seems.

Posted by: maddogg at June 11, 2009 12:19 PM (OlN4e)

23 While I applaud the AMA for speaking out on this, and wish them lotsa luck, they started down this slippery slope when they bent over for the insurance companies years ago.

Posted by: CB at June 11, 2009 12:20 PM (9Wv2j)

24 If Zero and his cohorts were actually interested in lowering health care costs. Would they not begin with the causes of incredibly high malpractice insurance? Rein in the lawsuits which are a major cause? No, because the lawyers supporting him don't want tort reform. Its job insurance for trial lawyers, and they donate big bucks.

Posted by: maddogg at June 11, 2009 12:23 PM (OlN4e)

25 The AARP (I would never, ever join them) is in a delimma, they are big on socialist causes, but sell insurance as a major part of their business. They can go to Hell BTW.

Posted by: maddogg at June 11, 2009 12:26 PM (OlN4e)

26 so convoluted that no one will be able to attack it.

Hey single-payer socialized health care I was here first.

Posted by: Global Climate Change at June 11, 2009 12:31 PM (/QzyE)

27 24 - maddogg -- Here's the interesting thing: if healthcare becomes a govt program, aren't trial lawyers just out of luck? You usually can't sue a govt agency for being incompetent or neglectful. In fact, have trial lawyers figured out socializing this country puts them out of business? Who will be left to sue?

Posted by: MaureenTheTemp at June 11, 2009 12:31 PM (8cihe)

28 Limit liability? Rein in lawsuits? Don't be talking crazy, now.

Posted by: John Edwards at June 11, 2009 12:34 PM (knHvu)

Maureen

I'm sure the lawyers in the Zero administration will write it so that the trial lawyers will have a prominent place on the government tit row. They will still be able to sue Doctors for millions, but the taxpayer would have to pick up the tab. You gotta dance with who brung ya.

Posted by: maddogg at June 11, 2009 12:39 PM (OlN4e)

30 I love the spin from the left. Like this was ever intended to do anything other than get rid of private medical insurance.

Posted by: brian at June 11, 2009 12:43 PM (S2j/V)

I remember in Middle School the horror I felt when I learned that farmers in the old Soviet Union threw away grain because if they turned it in to the government, they would be expected to turn in that much the following year. At least, that's how it was explained to me by a teacher. There was no incentive to be efficient nor productive. Even then, my childlike mind could understand how idiotic that was...and against nature/science.

Now that horror is directed inward to the ol' U.S. of A.. What the HELL are we doing?

Posted by: TobB at June 11, 2009 12:43 PM (ZeO0M)

32 I forsee Teleprez "selling" this by making initial compromises to quell the nation's fears about socialized medicine wherein we get to keep this as is ("socialized" private choice)....for a time. Then, once instituted, it will be chipped away little by little until we arrive at the final destination: Omarxist's original plan.

Posted by: Twinks at June 11, 2009 12:45 PM (V+x9W)

33 You missed the "heads I win, tails you lose" aspect of the profit limiting. The whole concept of insurance is to share risk amongst a larger pool. Each individual policy isn't supposed to make a profit, just all of them put together.

This applies to policy years, as well -- all the premiums collected in non-earthquake years are partially offset when an earthquake happens.

So what would happen to this model if every year an earthquake didn't happen, the government made the insurance company give back a chunk of the premiums?

Posted by: cthulhu at June 11, 2009 01:08 PM (m5ie4)

34 A health plan must report how much of their premium revenues are used for clinical services, how much for “activities that improve health care quality,” and how much for “all other non-claims costs.”

Someone correct me if I'm mistaken but I was under the impression that insurance claims (clinical services etc.) and operating costs are not simply paid out of the pool of premium revenues but that the whole system kind of depends on the insurance companies' being able to invest that money and make it grow.

Instead of something like:

"Okay, we raked in $100 in premiums this month, paid $90 in claims, and our operating costs were $4, so that leaves us with a 6% profit, wheee!"

More like:

"Okay, we took in $90 in premiums this month but paid out $100 in claims and $4 in operating costs from our $1,000 fund. It's a good thing our more conservative investments are continuing to show a return even in this down time, because otherwise forget showing a profit, we wouldn't be able to pay claims at the premium rates we are currently charging."

Again, someone correct me if I'm wrong on the basic outlines here. I'd really like to know. And if I do have it right what does this mean for the congressional proposals incorrectly based on a government styled model of budgeting? i.e. Project revenue, and whack that figure up into chunks until every penny is spent, deficits are okay but surpluses are unacceptable and must be pissed away during the next round of budgeting until there is nothing left.

Posted by: Deety at June 11, 2009 01:18 PM (aVzyR)

35 I almost feel fraudulent commenting on this issue, as the gov't. already has my records (career military).

From a personal angle, I obviously don't care if the feds acquire my records since that ship done sailed. HOWEVER, I find it completely offensive that they should seek to grab EVERYONES records will he,nil he, especially as it is on it's face a violation of the 4th Amendment (you know, to that crazy document I swore to protect and defend?). This is completely as an aside to what a TERRIBLE ECONOMY KILLER this particular bill would be. As shit sandwiches go, they don't get much bigger than this.

So good on the AMA for calling a spade a spade and saying what anyone with a brain and a little (a VERY little) education can spot: this is a bad deal for all concerned, except for the bureaucrats who will be hired to run it.

But then, that's who it's intended for...

Posted by: Militant Bibliophile at June 11, 2009 01:20 PM (KvGts)

This is it. This is my line in the sand. Freedom is so precious, so rare, I will not give control of my heathcare to Obama and his minions. It took me many years to find a doctor that I trust, I have a chronic condition. I see her every month. I will not submit to some bean counter teling me I don't "need" to. I will not be sold down the river to cover a-holes who can't take care of themselves or get insurance. I'm sorry. The government will gain access to my records over my dead body.

Am I my brother's keeper?

Hell no. Not when it comes to my healthcare.

Posted by: fugazi at June 11, 2009 01:26 PM (9t8CO)

37 Oh yeah, and that whole "earthquake years" vs. "non-earthquake years" aspect that cthulu mentioned.

Where is Monty when you need him?

I really don't feel like I have a firm grasp on economic issues until they have been turned into a guitar buying and selling analogy or at the very least turned into a dramatic rendering with evil super villains and killer dialogue.

Sigh.

I am a moron.

Posted by: Deety at June 11, 2009 01:35 PM (aVzyR)

38 American doctors will be lined up next to the Wall Street guys as the next enemies of the state. And enemies of the state are anyone or group who dares to question the Marxist messiah.

Posted by: TheQuietMan at June 11, 2009 01:45 PM (1Jaio)

39 They have already begun to cap executive pay for those greedy wall street folks. Why should healthcare be any different?

Why should legal work be any different?

Want to kill this? Propose the exact same thing for lawyers.

Posted by: Amish J. Dude at June 11, 2009 01:56 PM (bZ9KY)

40 Nationalized health care penalizes specialists who don't get paid any more despite having extra training and higher liablity insurance. There is a total brain drain going on in England, their nurses and doctors have been coming and working here because the wages are so poor over there. The UK has resorted to hiring foreign health care workers whose heavily accented English results in breakdowns in communication. Socialized health care isn't working in any of the countries that currently have it, and they are all a lot smaller than the U.S. They also don't have the litigation we have (lawyers aren't allowed to advertise on t.v. in the UK or in Europe). My fellow nurses who do support socialized medicine are basically SEIU tools who have no concept how their personal income will take a dive if nationalized medicine is implemented. We nurses make decent money, and these idiots have no idea that their idolatry for Obama is going to cost them their livelihood. As for the AMA, they are basically a toothless organization. Yeah, they can take a stand against Obama, but when push comes to shove, they will choke down whatever he shoves down their throats. I do think, though, that their protest against him will leave a small red mark.

Posted by: runningrn at June 11, 2009 03:38 PM (aC/SY)

41 Doctors dont like obamas healthcare DOSE THAT TELL YOU ANYTHING?

Posted by: Spurwing Plover at June 11, 2009 03:48 PM (4EdvW)

42 I was going to use a Katrina-type disaster instead of earthquakes, but I couldn't figure out how to appropriately label such a complete clusterfark. So I switched it to something easier to conceptualize.

Posted by: cthulhu at June 11, 2009 04:28 PM (m5ie4)

43 Amish J. Dude,

As an attorney I could not agree more. Republicans should be offering legislation that mirrors anything the Democrats offer but for a favorite Liberal industry.

Hollywood should face the same regulations as Wall Street, for example.

Posted by: Nom de Blog at June 11, 2009 04:29 PM (1Bods)

44 Obama can heal you with his touch. He's God.

Posted by: Thomas Jackson at June 11, 2009 05:44 PM (B8gqF)

45 Isn't it odd that a group that is generally liberal, when faced with it's (union) members actually losing wealth and privileged turns conservative all of a sudden?

Posted by: Doom at June 11, 2009 06:09 PM (ntpwx)

46 Who cares what the American Medical Association thinks? I mean, what do a bunch of doctors know about the delivery of health care anyway?

Posted by: EyeDoc at June 11, 2009 06:35 PM (VCWvq)

47 Who cares what the American Medical Association thinks? I mean, what do a bunch of doctors know about the delivery of health care anyway?

I'm more concerned that they know something about the economics of health care delivery in this instance.

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