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Opt-Out Provision: Good For Politics

by: robert.harding

Thu Oct 08, 2009 at 21:33:14 PM EDT


(Mcjoan has a great diary up at Daily Kos on this subject.)

The opt-out provision that has been proposed as a compromise is creating quite a stir. Some progressives, like Nate Silver, support the idea. Howard Dean said today that he supports it because it represents reform. Other progressives aren't so sure.

First, a critique. Keep in mind that because we did not start at single-payer, the public option was the progressive proposal instead of the compromise. So now we are in a position where we need to compromise. That's politics. A strong robust public option can pass both houses and a comprehensive health care reform bill should be passed. Progressives need to stand strong and Democrats need to remember which party they belong to and quit siding with the Republicans/conservatives on this issue.

It's real simple: Either you want reform or you want a primary. Your choice.

The opt-out provision can be the compromise. It should be the compromise solution and it isn't complicated. All the opt-out provision does is it allows states to "opt out" of the public option if they do not wish to take part.

Paul Krugman added this on his blog earlier:

So the new idea seems to be a public option offered at a national level, but with states having the right to opt out - that is, make it not available to their own residents.

At first blush, that sounds good. It's true that the states most likely to opt out will probably be small states that really need the competition. But many states, with probably a majority of the population, would opt in. And if the public option works well, there will soon be pressure on politicians in the others to do the same.

I guess there's a possible issue of principle: if states can opt out of one component of reform, why not all? But I haven't noticed principles playing much role in this process! And the idea of putting red-state governors on the spot, having to decide whether to deny their voters cheaper policies, definitely has some appeal.

I emphasized that last part because that is the key portion of this provision which could be our greatest asset.

If you remember back to the discussion about funds from the American Recovery and Reinvestment Act and Republican governors saying they would not accept stimulus money for their states, you know that the Republican governors just might pursue the same strategy when it comes to health care reform. Bobby Jindal might say no to a public option for Louisiana. Haley Barbour might say no to one for Mississippi. And who knows what Sarah Palin might have said if she stuck around for the opt-out provision.

The point is that it would be good for the Democrats to put the GOP in this position. If they don't want the public option (or what they call "socialized medicine" and "government-run health care") they can explain that to the citizens of their state instead of disrupting the national debate. States like New York would surely welcome the public option. But the red state governors would be put in a position where they would either have to accept the public option or tell their citizens that the public option won't be offered to them because they would rather put politics above their best interests.

This is not a bad provision. It's a lot better than "triggers" or any other past compromise proposal. Because the reality is that there probably won't be anyone who, as governor, would want to kill the public option in their state out of fear that they would lose re-election as a result.

robert.harding :: Opt-Out Provision: Good For Politics
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The reason to opt out (0.00 / 0)
Kent Conrad (D-ND) has objected to a "Medicare-based" public option because, he says, Medicare doesn't reimburse rural hospitals at rates high enough to cover the hospitals' costs.  He may be right.  If this is the case, it stands to reason that rural states -- generally red -- could opt out without their mostly-Republican state leaders suffering.

The solution is to make sure that the payment rates from a public option are sufficient for well-run hospitals, medical centers and doctors' offices to pay their bills.  Perhaps this could be combined with an adjustment to Medicare reimbursement rates; then Democrats from rural states, like Sen. Conrad, would be on board -- and benefit from being able to claim that he brought home more bacon for his state.

I am still leery, however, of an "opt-out" concept; it reeks too much of the pre-Civil War "nullification" laws that were passed on both sides of the Mason-Dixon line, laws that helped lead to the war.  (For the record, while southern states were the first to pass "nullification" laws back in the late 18th century, several nothern states passed "nullification" laws regarding the federal Fugitive Slave Act, which angered South Carolina enough to lead the way in seceding.)

Sometime early in the American Revolution, Benjamin Franklin wrote, "We must hang together, gentlemen ... else, we shall most assuredly hang separately."  The Constitution was drafted because its predecessor, the Articles of Confederation, failed to allow the new states to solve their mutual problems.  If we are to have a national healthcare coverage plan, it must be national, or it will very likely fall apart completely.

It also sets a very bad precedent for future national efforts.


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