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One Hundred Million Reasons Why John Lynch (and Everyone Else) Should Oppose the Baucus Plan

by: measurestaken

Wed Sep 16, 2009 at 23:35:10 PM EDT


( - promoted by Dean Barker)

With a resounding thud, Senator Max Baucus (D-United Health Group) shared with us the results of months and months of toil in the bipartisan vineyards. And what did he come up with for his troubles? A plan that evidently no one - including so-called GOP "moderates" - can support. So what does this plan that only Sen. Baucus, his loved ones, and staff will support actually accomplish? "Cost savings" that are, in effect, a federal subsidy to private insurers while he foists more costs on the states through expanded Medicaid.  
measurestaken :: One Hundred Million Reasons Why John Lynch (and Everyone Else) Should Oppose the Baucus Plan
There are many reasons why the Baucus plan would be a fiasco if it actually had any chance of passage, but you can find those tomorrow morning in any newspaper - well, maybe not the Union-Leader, but any sane newspaper. So I'm going to stick to the effect it would have here at home in New Hampshire.

Annually, New Hampshire spends about $1.3 billion to match Medicaid funding from the federal government. That's about 15% of the annual budget. After closely watching Senator Baucus's press conference today, a statistic jumped out at me. In answer to a question from the press, Sen. Baucus offered that the average increase to states in their FMAP (medicaid) liabilities would only be about 8.9%.

This caused me spit out my lunchtime Sprite. Doing the numbers quick and dirty in my head, I thought "...wow, that will be real money..." - a suspicion confirmed when I crunched the numbers back at my office. The Baucus plan would, using the senator's own numbers, add $100 million to New Hampshire's budget liability annually.  

Efforts among the beltway types to be bipartisan could cost us dearly. It is little surprise that the CBO scoring for this bill came in under the ones generated by the other four Congressional committees. Sending the bill for health care to the states would naturally trim the bottom line.

Your thoughts, Governor Lynch?  

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Blessing in disguise? (4.00 / 3)
And what did he come up with for his troubles? A plan that evidently no one - including so-called GOP "moderates" - can support

If the Party of No will say no even to Baucus' "plan," this opens the door to reconciliation.

And with reconciliation, we can get a much better bill than Baucus'.

birch, finch, beech


I agree (4.00 / 2)
The Administration -- and our Senate leadership -- have reached out over and over and over again. I would be willing to make some sacrifices to ensure bi-partisan backing, as I believe this has advantages.  But this requires compromises on both sides, not just ours.

But if the Republicans see health care reform as nothing more than a opportunity to "get" President Obama, then there's no reason not to go the reconciliation route.  If they don't like that idea, well, then they can negotiate honestly and with the interests of the country at heart.  


[ Parent ]
It's my hope that reconciliation is being (0.00 / 0)
used as a threat.  What reconciliation is good for is "tweaking" already existing programs or cutting them out by removing the funding--like they did with Medicare-D and the Reliable Warhead (a new generation of nukes).  "Tweaking" doesn't necessarily involve a reduction.  Though, if Medicare is made open enrollment, it could be argued that the cost per person will be reduced.  So, one could argue that the Medicare burden will be reduced by taking advantage of economies of scale.  You know, sort of like having a pool party.  More people splashing makes the per person cost of the maintenance less.

The Medicare Pool Party--invite all the neighbors in.


[ Parent ]
On shifting costs to the states (4.00 / 4)
It's a very Norquist thing to do.

Most states are prohibited by their own constitutions from running a deficit (which leads to states making economic downturns worse, when they cut programs and have layoffs at the worst possible time.)

Relatedly - states cannot print money. Many cannot maintain a sizable "rainy day fund:" even if it is allowed, the cries to use it to reduce taxes drain it.

Most states have at most a flat income tax. The graduated income tax, capable of raising more money with less pain, is a federal tool.

So, when you shift a function to the states, you are making it much easier to drown it in the bathtub.

Max Baucus knows that. The question is why the Senate Club lets him lead their Finance Committee.


Agreed (0.00 / 0)
Another problem is letting certain states -- Alabama, say -- decide what to fund. If the state is paying, the federal government won't even try to enforce the settled law of the land.

[ Parent ]
While states can't run an operating deficit, (4.00 / 1)
they can borrow for capital improvements--i.e. instead of maintaining infra-structure and assets, let them fall apart and build something new that can be bonded and provide a stream of guaranteed income for the financial class.

The public corporation as a secure investment opportunity is the core of the agenda.  The financial leisure class has always looked on public corporations as a storehouse of wealth which they tap at their leisure for exploitation.  Now that the natural resources are being depleted, it's logical that they would want a steady trickle of cash.

Even local banks have been the beneficiaries of public deposits (at virtually no interest) and such instruments as tax-anticipation notes with a "modest" return.  In other words, banks make money by keeping public funds "safe" for nothing and making short term loans when they run low.  One reason public corporations don't have rainy-day funds is because the interest they "earn" is so minimal.  Also, public officials have a history of tapping such funds for pet projects to reward their cronies.


[ Parent ]
That's a very interesting observation. (0.00 / 0)
I wonder what a study of the lifetimes of similar local public and private buildings would show?

[ Parent ]
Don't know about most public buildings-- (4.00 / 1)
But the lifetime of public school buildings seems to be increasingly short, with the exemption of the "temporary" structures in warmer climes.  They seem to last almost indefinitely, maybe because they can moved from site to site.
Brick and mortar school buildings, perhaps, have a higher contractor profit margin.  
It seems that whenever there's a down-turn in the construction industry, there's a sudden need to relocate the schools.

[ Parent ]
I want two months of my life and this Presidency back. (4.00 / 3)
Time for someone in the Senate to pull a Waxman.

--
@DougLindner


In some legislatures, it's possible for the full body to forcibly extract bills from committees (0.00 / 0)
Anybody know if the Senate can do that?

--
@DougLindner


Discharge Resolution (4.00 / 3)
Any senator can introduce a discharge resolution to move a bill out of committee and bring it directly to the floor, subject to the usual rules. It's a rarely used tactic - some intern at Congressional Quarterly is probably poring over the records as I write to see when it was last used.

[ Parent ]
Howard Dean (4.00 / 2)
was on Laura Knoy, The Exchange, this morning to promote his book and to take questions about heath care/insurance reform.  Go to NHPR and listen to his sensible plain words.
"Howard Dean, former Vermont governor, Democratic presidential candidate in 2004 and former chair of the Democratic National Committee; his new book is Howard Dean's Prescription for Real Healthcare Reform: How We Can Achieve Affordable Medical Care for Every American and Make Our Jobs Safer."
http://www.nhpr.org/node/26946

Bacus Plan (0.00 / 0)
The Baucus plan is a travisty.  Howard Dean is absolutely right.  We have to have a Public Option or there is NO HEALTHCARE REFORM.  I wish the mainstream media would publish the amount of money Max Baucus has received from the health insurance industry.  He has not only betrayed his constituents but the whole nation with his plan that no Republicans are going to vote for anyway.  Reconsiliation is the only way to go to get real healthcare reform that includes a Public Option which boils down to the simplist of formulas: either the American people get a choice or the insurance industry wins.  Either the voters who elected Congress and the President and pays their salaries with our tax dollars get the vote, or the insurance industry who pays for their campaigns get the vote.  It is is simple as that.

It just occurred to me. (0.00 / 0)
Perhaps because Republicans refused to come out with a plan, somebody had to do one for them.  And Baucus was it.  His turn to shovel the shit.

Grassley Knoll feels like he got suckered, now that all the "reforms" he sounded like he was for have been roundly rejected.  He went and postured in front of Obama, who let him think he was impressive, and then Obama exposed him to ridicule by repeating what he'd said.

Grassley is another one of the instinct-driven, fixated on superficialities.  Not being equipped to interpret other people's behavior, he's often wrong in his perceptions, so his reactions are mis-placed.
Perhaps the best example of the instinct-driven can be found in McCain's fixing on Palin.  Talk about appearances being deceiving!


[ Parent ]
Wendell Potter on Baucus Plan (0.00 / 0)
Wendell Potter called the Baucus plan a "blowjob to the insurance companies" on Bill Maher last night. I think that sums it up.


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