Matthew Yglesias » Public Plan Saves Money

Jul 11th, 2009 at 12:55 pm

Public Plan Saves Money

John Cohn’s got the hot preliminary CBO score scoop:

According to a pair of Capitol Hill sources, preliminary estimates from the Congressional Budget Office suggest that a strong public option–the kind that the House of Representatives is putting in its reform bill–should net somewhere in the neighborhood of $150 billion in savings over ten years.

Will the Blue Dogs side with their nominal concern for controlling costs, or will they side with the private industry types who don’t want public sector competition?

Comments
24

24 Responses to “Public Plan Saves Money”

skeptic Says:
July 11th, 2009 at 12:58 pm
It’s funny that you have to ask.
joe from Lowell Says:
July 11th, 2009 at 12:58 pm
I wonder, if we adopt health care reform with a strong public plan, if it will even take ten years to transition all the way to a single-payer-type system.

Which would save even more money.
Davis X. Machina Says:
July 11th, 2009 at 1:16 pm
The way forward for the Blue Dogs is now clear — embrace the public option, weaken the public option until it produces no savings, then kill it because it produces no savings.
Davebo Says:
July 11th, 2009 at 1:25 pm
Why does everyone project the costs, or savings, out over ten years? It’s not like it’s a ten year project.

I can see why those opposed like to quote the cost over ten years. It gets you to the magic trillion. If they quoted the cost at 100 billion a year folks would say “What? You mean everyone in America could have health care for less than the Iraq war cost?”
kafka Says:
July 11th, 2009 at 1:25 pm
Total U.S. health care spending 2007: $2.2 trillion
CBO est. annual savings from public option: $15 billion

Pretty thin gruel folks. BTW, we could save $200 billion a year by getting out of Iraq & Afghanistan, something the “Democrats” once told us they’d do if elected.
Adam Says:
July 11th, 2009 at 1:33 pm
BTW, we could save $200 billion a year by getting out of Iraq & Afghanistan, something the “Democrats” once told us they’d do if elected.

I’m pretty sure Obama campaigned specifically on withdrawing from Iraq over a 16-month timetable (which is a bit behind schedule but we’re already out of the cities), and specifically on adding two brigades to Afghanistan. Not every Democrat running was Kucinich, you know.

And while $15 bil a year may be a small percent of the overall spending, it’s the CBO score that gets the public option passed. So be thankful for it instead of just constantly bitching that you’re not getting the entire wish list.
Netbrian Says:
July 11th, 2009 at 1:35 pm
Will the Blue Dogs side with their nominal concern for controlling costs, or will they side with the private industry types who don’t want public sector competition?

Is this a rhetorical question?
James Robertson Says:
July 11th, 2009 at 1:47 pm
Right, because the history of medicare is nothing but cost savings.

I swear, you people are incredibly gullible. If you want to pitch this on some kind of fairness grounds, fine. But at least have the intellectual honest not to insult us with utterly bogus “cost savings”
DTM Says:
July 11th, 2009 at 2:00 pm
kafka,

As joe from Lowell also suggests, a robust public option is really just a foot in the door when it comes to costs. If it proves popular enough, perhaps to the point we can stop fooling around and adopt a single player system, we could then realize much greater cost savings.
Sonic Charmer Says:
July 11th, 2009 at 2:06 pm
James Robertson: They’re only gullible if they sincerely believe this stuff about cost savings. Otherwise, they’re something else.
Waingro Says:
July 11th, 2009 at 2:10 pm
JimBob Robertson,

Seriously, just shut the fuck up. It’s been more than obvious you stopped thinking about politics somewhere around 1979 and your entire political philosophy is based on musty, thirty-year old talking points and urban legends.

You voted for Bush twice. You supported the Iraq war. You have a demonstrable record in this very comment section of saying stupid shit and supporting the unsupportable. Yet, yet you have the gall (or lack of self-awareness)to accuse others of gullibility and lack of sophistication.

Here’s a thunderbolt, dickhead- You clearly don’t know shit about health care policy beyond GOP talking points and it’s patently obvious to everyone. Your entire political belief system and party have driven this country into a ditch. It’s your turn to sit the fuck down and shut the fuck up while some new ideas are implemented.

I’d occasionally think Tyro and Not as Stupid as James Robertson were too harsh with you, but they were right all along. Your opinions are worthless.
frankie d Says:
July 11th, 2009 at 2:18 pm
are you kidding?
they will come up with some lame excuse as to why they cannot accept a public option.
the real problem is that obama is not campaigning hard for it.
if he were to actually set it the debate in this fashion:
“either you’re going to be with the american people, or you’re going to vote with the insurance companies who have been exploiting the american people…”
the opposition would melt away and dems, at least, would fall in line.
do i think he’ll have the guts to do that?
i wouldn’t bet my lunch money on him having that kind of courage.
StevenAttewell Says:
July 11th, 2009 at 2:20 pm
Joe: depends on future politics. To give you an example, it took the U.K from 1911 (introduction of the National Insurance Act) to 1945 (introduction of the NHS) to move from a contributory, limited system to a single-payer, single-provider system. In Canada, it basically took from 1944 to 1966 to make the same jump, but there you didn’t have a Depression, two World Wars, and a long period of Tory rule to deal with.

If Democrats win in 2010 and 2012, I could see single-payer by 2016.

Davebo – the ten year rule has to do with the way that the legislature budgets and the CBO scores – which is limited to a ten year period. It makes much more sense to talk about $100 billion a year (which shows it to be a modest cost, well within the limits of the Federal purse). But them’s the rules.

Re: the 15 billion, it all adds up. You throw in the $15 billion per year from hospitals, I forget how much the pharma groups agreed to, and the $2 trillion from the insurers and providers, and pretty soon, you’re talking about real money. And as people are no doubt aware, the $15 billion/year refers only to the public moneys saved.
pseudonymous in nc Says:
July 11th, 2009 at 2:20 pm
at least have the intellectual honest not to insult us with utterly bogus “cost savings”

At least have the intellectual honest [sic] not to pretend that your own personal selfishness is the only thing at stake here. Medicare? TAKIN UR MONY! S-CHIP? TAKIN UR MONY! Misbegotten foreign wars? Not so much.
Why oh why Says:
July 11th, 2009 at 2:36 pm
I’m pretty sure Obama campaigned specifically on withdrawing from Iraq over a 16-month timetable (which is a bit behind schedule but we’re already out of the cities), and specifically on adding two brigades to Afghanistan.

True, Obama was thirsty for Aghan blood from the start, to show his strong ‘national security’ creds. But regarding Iraq, he promised he would start withdrawing troops immediately after taking office; he lied. He also said he would eventually withdraw all troops; and that was probably a lie too, we’ll see in 2011.

Not every Democrat running was Kucinich, you know.

Again, true. Kucinich probably meant what he said, and wasn’t just lying to get elected.
fostert Says:
July 11th, 2009 at 3:36 pm
“Right, because the history of medicare is nothing but cost savings.”

I know that was a snark, but oddly enough, it’s actually true. Medicare pays 30% less than the private plans for treatment. That’s a pretty substantial cost savings. And Medicare’s administrative costs are a tenth of the private plans. If the private plans could come remotely close to Medicare’s efficiency, we wouldn’t be having this conversation.

And Davis X Machina, you nailed it. That is exactly what will happen.
jon Says:
July 11th, 2009 at 4:07 pm
kafka

you are comparing apples and oranges. The CBO score is only the saving to the government. To get those savings the public plan would need to have 15% cheaper premiums. Most of the savings from the public plan would be for individuals and business. you are talking about something like a $50 billion reduction in system wide cost every year.
BradyB Says:
July 11th, 2009 at 6:56 pm
Just an addendum to the beatdown James Robertson has already received:

Medicare takes all of the people who private insurance won’t because they are unprofitable. And yet they still have 1/10 the administrative costs and pay 30% on average for treatments.
An Outhouse Says:
July 11th, 2009 at 9:17 pm
Blue Dogs prefer bones. Especially from their corporate masters. Here boy, go get it!
Wodwose Says:
July 12th, 2009 at 12:00 am
I work for a major healthcare insurer with a contract to handle several of Medicare’s basic operations. My company spends 24 cents of every dollar collected on overhead, most of it CEO/executive pay. Medicare spends between 2 and 4 cents on overhead in our geographic region, and between 3-7 elsewhere. The answer seems obvious.
jacksmith Says:
July 12th, 2009 at 1:44 am
AMERICA’S NATIONAL HEALTHCARE EMERGENCY!

It’s official. America and the World are now in a GLOBAL PANDEMIC. A World EPIDEMIC with potential catastrophic consequences for ALL of the American people. The first PANDEMIC in 41 years. And WE THE PEOPLE OF THE UNITED STATES will have to face this PANDEMIC with the 37th worst quality of healthcare in the developed World.

STAND READY AMERICA TO SEIZE CONTROL OF YOUR NATIONAL HEALTHCARE SYSTEM.

We spend over twice as much of our GDP on healthcare as any other country in the World. And Individual American spend about ten times as much out of pocket on healthcare as any other people in the World. All because of GREED! And the PRIVATE FOR PROFIT healthcare system in America.

And while all this is going on, some members of congress seem mostly concern about how to protect the corporate PROFITS! of our GREED DRIVEN, PRIVATE FOR PROFIT NATIONAL DISGRACE. A PRIVATE FOR PROFIT DISGRACE that is in fact, totally valueless to the public health. And a detriment to national security, public safety, and the public health.

Progressive democrats the Tri-Caucus and others should stand firm in their demand for a robust government-run public option for all Americans, with all of the minimum requirements progressive democrats demanded. If congress can not pass a robust public option with at least 51 votes and all robust minimum requirements, congress should immediately move to scrap healthcare reform and request that President Obama declare a state of NATIONAL HEALTHCARE EMERGENCY! Seizing and replacing all PRIVATE FOR PROFIT health insurance plans with the immediate implementation of National Healthcare for all Americans under the provisions of HR676 (A Single-payer National Healthcare Plan For All).

Coverage can begin immediately through our current medicare system. With immediate expansion through recruitment of displaced workers from the canceled private sector insurance industry. Funding can also begin immediately by substitution of payroll deductions for private insurance plans with payroll deductions for the national healthcare plan. This is what the vast majority of the American people want. And this is what all objective experts unanimously agree would be the best, and most cost effective for the American people and our economy.

In Mexico on average people who received medical care for A-H1N1 (Swine Flu) with in 3 days survived. People who did not receive medical care until 7 days or more died. This has been the same results in the US. But 50 million Americans don’t even have any healthcare coverage. And at least 200 million of you with insurance could not get in to see your private insurance plans doctors in 2 or 3 days, even if your life depended on it. WHICH IT DOES!

If President Obama has to declare a NATIONAL STATE OF EMERGENCY to rescue the American people from our healthcare crisis, he will need all the sustained support you can give him. STICK WITH HIM! He’s doing a brilliant job.

THIS IS THE BIG ONE!

THE BATTLE OF GOOD Vs EVIL!

Join the fight.

Contact congress and your representatives NOW! AND SPREAD THE WORD!

(http://action.firedoglake.com/page/s/publicoption) (http://www.actblue.com/page/healthcareheroes)

God Bless You

Jacksmith – WORKING CLASS
joe from Lowell Says:
July 12th, 2009 at 10:19 am
Blue Dogs prefer bones.

That is absolutely brilliant. They want to be thrown a bone, and they want to make sure everyone sees them running around with it.
anonymous Says:
July 12th, 2009 at 11:27 am

Blue Dogs prefer bones.

That is absolutely brilliant. They want to be thrown a bone, and they want to make sure everyone sees them running around with it.

Well then it’s high time we bury their bone.
less is better Says:
July 12th, 2009 at 8:54 pm
We have no trouble funding two illegal, unethical and immoral wars for about $150 billion per year (is Halliburton still getting $300 per troop for food?) but good medical care for all, we should count the pennies?

Matt Yglesias

Public Plan Saves Money

24 Responses to “Public Plan Saves Money”

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