DNC Paying A Price For Its Actions In 2016 As Contributions Fall

With all the hysteria about Russia, whose alleged meddling in the last election appears to be of little consequence, the media is ignoring the more serious case of rigging an election. The DNC used rules since the McGovern era, and then further altered the rules, to essentially clear the field for Hillary Clinton and try to prevent a successful challenge to her coronation. While there are no signs of serious reform at the DNC, it does look like they are paying for their actions when it comes to fund raising.

The New Republic has a story entitled Yes, Democrats Have a Fundraising Problem. Taking this further, Aaron Blake compared their situation to that of the RNC:

After a strong $12.2 million raised in March — the first full month of Perez’s chairmanship — fundraising has dried up considerably. The $4.7 million it raised in April was the lowest for that particular month since 2009. The $4.3 million raised in May was the worst for that month since 2003. And now the $3.8 million raised in July is the worst for any month since January 2009.

Notably, the DNC is also bleeding money rather than building up a war chest with which to fight the 2018 election. The DNC’s cash on hand has dropped from more than $10 million when Perez took over to less than $7 million today. The committee has also seen its debts rise to $3.4 million. Combining its cash on hand with its debt, the DNC was $7.4 million in the black shortly after Perez took over at the end of February and is now just $3.4 million in the black. [See chart above]

For comparison’s sake, here’s what the Republican National Committee’s balance sheet looks like this year. It has raised at least $9.5 million each month and carries no debt. Its cash on hand has risen from about $37 million in January to $47.1 million today — more than 13 times the net money that the DNC has available.

NBC News points out that, while the DNC is struggling to raise money, other Democratic groups are doing better–as would be expected in light of Donald Trump’s unpopularity:

But the DNC’s fundraising struggles make it the exception, not the norm, of Democratic groups in the Trump era, many of which have been inundated by donations from the energized liberal base.

On one hand, that’s grounds for relief among Democrats, who survey the big picture and conclude their causes and candidates — if not their official national party — will have plenty of money heading into the 2018 midterm elections and beyond. But on the other hand, it underscores that the challenges facing the DNC are endemic to the national party and severe enough to prevent its boat from being lifted in the rising tide of cash…

Several Democratic donors, who asked for anonymity to speak candidly, said they’re staying away from the national party, at least for now, because they’re not confident Perez has brought the organization back up to speed and think their money can have a bigger impact elsewhere…

The DNC has acknowledged they have rebuilding to do and that the party’s brand has been damaged after years of neglect and controversies, including its hacked emails — which led to top donor’s personal information being posted online — and its handling of the presidential primary process last year. Staffing had reached an all-time low when Perez took over about six months ago, and a new finance director and CEO didn’t start until earlier this summer.

It is hardly surprising that after the catastrophes of 2016, including how the DNC essentially rigged the nomination for a candidate so terrible that she could not even beat Donald Trump, people would be reluctant to donate to them. While opposition to Donald Trump will help the party short run, they also need to stand for something other than opposing whatever Republicans are in office if they are to truly rebuild. After all, during the Bush years they raised money by campaigning against George Bush, and then backed a neocon war monger in 2016 with essentially the same agenda which they previously opposed. They are further showing how they stand for little beyond trying to win elections as they argue over whether they should support anti-abortion candidates.

Donald Trump Becoming Increasingly Isolated, Reminiscent Of The Final Days Of Richard Nixon

People are becoming increasingly unwilling to associate with Donald Trump in any way in light of his refusal to take a stand against white supremacists and neo-Nazis. So far eighteen charities have pulled out of events at Mar-a-Lago this year, with the current list here. This includes five more charities which have withdrawn in the past day. The Palm Beach Post reports:

On Friday, Susan G. Komen, the world’s largest nonprofit in the fight against breast cancer, the International Red Cross, The Salvation Army, Autism Association of Palm Beach County, and Big Dog Ranch Rescue in Loxahatchee Groves announced they would not hold their events at Trump’s Palm Beach club during the winter fundraising season.

Those announcements came a day after the Cleveland Clinic, American Cancer Society and the American Friends of Magen David Adom, an organization supporting Israel disaster relief programs, said they would seek alternative venues. The Cleveland Clinic plans to hold its Feb. 23 ball at The Breakers in Palm Beach.

The International Red Cross announcement, in particular, marks the end of an era. Mar-a-Lago’s original owner, Marjorie Merriweather Post, hosted the IRC’s first ball there and Trump has been a frequent chairman of the event. And Big Dog Rescue, which counts Trump’s daughter-in-law Lara Trump as a gala co-chair, decided Friday to move its fundraiser only a day after it reiterated its intention to stick with Mar-a-Lago.

Earlier this week Trump was forced to disband his business advisory groups as CEO’s began to withdraw. He has come under criticism from many members of his own party who fear he might have damaged the Republican party for years to come, leading to speculation that he might be only six votes away from removal from office if impeached and this goes to the Senate. One member of his Evangelical Advisory Board has stepped down over “a deepening conflict in values.”

Donald and Melania Trump also announced today that they will  not be attending this year’s Kennedy Center Honors after several of those being honored stated they would skip the event. Yesterday the members of the President’s Committee on the Arts and the Humanities announced they were resigning in a letter critical of Donald Trump:

“Ignoring your hateful rhetoric would have made us complicit in your words and actions …” the letter stated. “Supremacy, discrimination, and vitriol are not American values. Your values are not American values. We must be better than this. We are better than this. If this is not clear to you, then we call on you to resign your office, too.”

We have not seen a president this isolated since Richard Nixon in the final days before his resignation. This makes me wonder if we are getting close to seeing Donald Trump talking to the pictures  of former presidents on the White House walls as Richard Nixon did. Or perhaps his often irrational middle of the night Tweets are the modern day equivalent.

Study Shows Trump Responsible For Double Digit Increases In Health Insurance Premiums

Donald Trump inherited the Affordable Care Act in sound financial shape according to reports by the nonpartisan Congressional Budget Office and other independent studies. Republican attempts to abolish Obamacare have been unsuccessful, but a newly released study from the Kaiser Family Foundation shows that Donald Trump’s actions are resulting in double digit increases in premiums for many people, potentially destabilizing the plan. AP reports:

“Actions by the Trump administration are triggering double-digit premium increases on individual health insurance policies purchased by many people, according to a nonpartisan study.

“The analysis released Thursday by the Kaiser Family Foundation found that mixed signals from President Donald Trump have created uncertainty “far outside the norm” and led insurers to seek higher premium increases for 2018 than would otherwise have been the case.”

From the Kaiser Family Foundation report:

“Insurers in this market face new uncertainty in the current political environment and in some cases have factored this into their premium increases for the coming year. Specifically, insurers have been unsure whether the individual mandate (which brings down premiums by compelling healthy people to buy coverage) will be repealed by Congress or to what degree it will be enforced by the Trump Administration. Additionally, insurers in this market do not know whether the Trump Administration will continue to make payments to compensate insurers for cost-sharing reductions (CSRs), which are the subject of a lawsuit, or whether Congress will appropriate these funds. (More on these subsidies can be found here).

“The vast majority of insurers included in this analysis cite uncertainty surrounding the individual mandate and/or cost sharing subsidies as a factor in their 2018 rates filings. Some insurers explicitly factor this uncertainty into their initial premium requests, while other companies say if they do not receive more clarity or if cost-sharing payments stop, they plan to either refile with higher premiums or withdraw from the market. We include a table in this analysis highlighting examples of companies that have factored this uncertainty into their initial premium increases and specified the amount by which the uncertainty is increasing rates…

“Insurers assuming the individual mandate will not be enforced have factored in to their rate increases an additional 1.2% to 20%. Those assuming cost-sharing subsidy payments will not continue and factoring this into their initial rate requests have applied an additional rate increase ranging from 2% to 23%. Because cost-sharing reductions are only available in silver plans, insurers may seek to raise premiums just in those plans if the payments end. We estimate that silver premiums would have to increase by 19% on average to compensate for the loss of CSR payments, with the amount varying substantially by state.”

Most people enrolled in plans on the exchange receive subsidies and will be at least partially protected from these increases, but this is an extra burden on tax payers, along with those of us who do not qualify for subsidies. Double digit increases in premiums were commonplace on the individual market prior to the passage of the affordable care act, but this trend could have been avoided if not for the actions of Donald Trump and Congressional Republicans.

In May, Mario J. Mario Molina, M.D., former CEO of Molina Healthcare, wrote an op-ed for US News and World Report which also pointed out how Republicans are responsible for higher premiums due to their actions to sabotage the law. He concluded:

“One common thread in all these efforts is that Americans who purchase their health coverage through the individual market are the ones harmed, not insurance companies. The administration and Republicans in Congress want you to believe that insurers raising premiums for their plans or exiting the marketplaces all together are consequences of the design of the Affordable Care Act instead of the direct results of their own actions to sabotage the law. Don’t let them fool you.

“If you think Obamacare is failing, I have one simple message for you: Open your eyes and stop being the emperor.”

Democrats Again Show They Stand For Nothing Beyond Desperately Trying To Win Elections

The Democratic Party showed in 2016 that principles mean nothing to them. They overlooked Hillary Clinton’s rather blatant pay for play racket at the State Department, justified her violation of the rules Obama established to promote government transparency, and didn’t care that her policies violated pretty much everything liberal Democrat had previously said they believed in. By 2016 they were essentially running on the platform of George Bush and Dick Cheney, except that Clinton supposedly would be liberal on women’s issues. Now many of the same women who were willing to ignore all principles to support Clinton, such as Melissa McEwan, are shocked to see that the Democratic Party has no qualms about also throwing them under the bus with regards to reproductive rights.

The Hill reports, Dem campaign chief vows no litmus test on abortion:

Democrats will not withhold financial support for candidates who oppose abortion rights, the chairman of the party’s campaign arm in the House said in an interview with The Hill.

Rep. Ben Ray Luján (D-N.M.) said there will be no litmus tests for candidates as Democrats seek to find a winning roster to regain the House majority in 2018.

“There is not a litmus test for Democratic candidates,” said Luján, Democratic Congressional Campaign Committee chairman. “As we look at candidates across the country, you need to make sure you have candidates that fit the district, that can win in these districts across America.”

In taking the position, Luján and Democrats risk alienating liberals, as well as groups dedicated to promoting access to abortion and reproductive health services that represent the core of the party’s base.

“Throwing weight behind anti-choice candidates is bad politics that will lead to worse policy,” said Mitchell Stille, who oversees campaigns for NARAL Pro-Choice America. “The idea that jettisoning this issue wins elections for Democrats is folly contradicted by all available data.”

Is anyone really surprised? The Democrats have tried to run as a Republican-lite Party in 2010, 2014, and in 2016 despite losing every time, even to a candidate as terrible as Donald Trump. Their last presidential nominee supported the worst abuses under George Bush–neoconservative interventionism, restrictions on civil liberties, and increased government secrecy. Wikileaks also revealed that Clinton was perfectly happy with Jeb Bush’s economic message.

Those who backed Clinton seeing her as their champion on women’s issues would probably also have been disappointed if she had won and went on to triangulate on these issues, having already expressed a willingness to compromise with Republicans to keep abortion rare.

Democrats showed they learned nothing after losing in 2016, continuing to move to the right. The showed their lack of interest in principles in concentrating on coming up with a new slogan rather than policies. As Nancy Pelosi admitted this “is not a course correction, but it’s a presentation correction.” They have been trying to recruit blue dog Democrats to run. They have showed no interest in reforming the undemocratic nomination rules which make their nominations little different than picking the nominee in the old smoked filled rooms. Kamala Harris, seen as a major prospect to run in 2020, dismisses sticking up for principles as applying ideological purity tests.

Republicans stress their principles, no matter how crazy, and win. Democrats only alienate those who desire more liberal principles by moving to the right, but still do not pick off Republican voters.

I can see making exceptions as opposed to using absolute an litmus test for every issue, possibly backing a candidate who fails on abortion but otherwise has a strong record. Instead we have seen Democrats move so far to the right that they differ from Republicans on little other than reproductive rights. If they now ignore this, it leaves a party which stands for absolutely nothing other than trying to win elections. The pathetic thing about this is that moving to the right has never been a successful strategy for Democrats.

Yes Donald Trump, You Are President, And Therefore You Do Own Obamacare

In the past Donald Trump claimed that he alone could fix Obamacare. He turned out to have no plan of his own, leaving this to the Republicans in Congress. They did not have a real plan either. Now he says that Obamacare should be repealed and that, “We’re not going to own it. I’m not going to own it. I can tell you, the Republicans are not going to own it.”

Sorry, Donald, you do own Obamacare. You took an oath to faithfully execute the Office of President of the United States. The Affordable Care Act remains the law of the land, and as head of the executive branch, you are responsible for administering the program.

Despite Republican claims, the Obamacare exchanges are not in a death spiral. The program was strong when Donald Trump assumed responsibility for it, and if it fails, it is his fault.

Donald Trump not only fails to understand the policy. He doesn’t even understand the process to attempt to repeal and replace it. He called for an end to the filibuster saying, “The U.S. Senate should switch to 51 votes, immediately.” While some things the Republicans would like to do would require sixty votes, only fifty-one votes were required for the Senate health care plan, and they couldn’t come up with that many.

The Republican plans to repeal and replace Obamacare failed because they had no real plan to replace it with. Fortunately a handful of Republicans have also announced they will not vote for the next plan–repeal without a replacement at this time.

In stopping the Republicans from repealing Obamacare, there is a sign that resistance works which should be applied to other areas of the Republican agenda. It will be even harder for Republicans to ram through unpopular legislation next year during an election year. After that, they will hopefully suffer loses making it even harder for them.

If the Republicans want to please voters and work for the good of the country, they should work with Democrats to strengthen and improve Obamacare. High premiums and out of pocket expenses were characteristic of the individual market prior to Obamacare, and more action is needed to fix this. A public option and/or Medicare buy-in is needed. Of course it is pure fantasy to think that the Republicans will do this, so if we are going to fantasize, we might as well encourage them to pass a single payer system.

Opposition Continues To Republican Health Care Plan

Little has changed on health care legislation. The Republican plan for replacing Obamacare continues to provide inadequate coverage. This includes reducing coverage for Medicaid and destabilizing the individual market, now with a provision written by Ted Cruz. As Ezra Klein wrote, The new Senate health bill is terrible for anyone who is sick, has been sick, or will be sick. This is especially true for those who do not receive coverage through an employer, or ever get sick enough that they cannot continue working to keep that coverage.

Fortunately the Republicans remain in a difficult position with regards to passing their plan. They can only afford to lose three Republican votes, and at this point two Republicans, Rand Paul and Susan Collins, say they will not vote for it. Several other Republicans are undecided. Mitch McConnell plans on holding a procedural vote on Tuesday to consider the measure, and there very well might not be enough votes to proceed.

There continues to be wide spread public opposition to the Republican plan, with multiple medical groups working to oppose the bill. This includes  the American Academy of Family Physicians, the American Academy of Pediatrics, the American Congress of Obstetricians and Gynecologists, the American College of Physicians, the American Osteopathic Association and the American Psychiatric Association. Putting further pressure on Republican Senators, the Cook Political Report also notes that 94 percent of ads have been opposed to the bill.

There has been some talk that the Republicans would work with the Democrats on a bill to shore up the exchanges should the Republican measure fail. It is doubtful that the Republicans would agree to the types of measures which would be best to cover those obtaining coverage on the individual market such as a public option or Medicare buy in. It is even more unlikely that the Republicans, or even enough Democrats, would back the most sensible solution–a single payer plan.

Cutting Through Trump’s Game of Distraction

Guest Post by Sandra

It’s hard to tell if Trump and his administration really have an agenda. He won the presidency being “anti-everything,” but this “rage against the machine” attitude doesn’t really offer much as a guiding principle for policy making. This lackluster approach combined with the drama surrounding the Russia investigation, the President’s attacks on the media and his empty threats about North Korea give the impression of chaos and disorder, and subsequently, of inaction.

This can be seen clearly by the repeated failure of the new health care bill. Trump’s only promise was to repeal “Obamacare,” putting himself in line with this “anti-everything” approach, but because he and his advisers have no real plan for an alternative, the bills being drawn up in Congress are downright awful, leading them to stall and generating doubt about whether something will ever get done.

However, this illusion of inactivity does not tell the whole story. Things are getting done, albeit slowly, but more concerning, they are getting done with very little public attention. Without drifting too far into conspiracy theories, we have to wonder if this wasn’t the plan all along. We’re seeing a clear case of Noam Chomsky’s “anti-politics.” The happenings of Washington are so repulsive to the ordinary citizen that many are turning their backs on Washington, paving the way for corporate power to advance quietly in the background. Here is something the current government has done, the consequences of which should be concerning for those interested in preserving democracy.

The Financial CHOICE Act

Remember the 2008 financial crisis? Of course. Who could forget it? Well, after decades of deregulating Wall Street, the world paid a heavy price, and the response by the Obama administration was to push through new regulations to make sure nothing like that could ever happen again. The Wall Street Reform and Consumer Protection Act, more commonly referred to as Dodd-Frank, was born from this idea. It includes countless new regulations for banks to prevent them from making overly risky loans that could lead to instability.

If you haven’t seen it already, the film The Big Short gives an entertaining, although disturbing, version of the events leading up to the crash, and if there is one big takeaway, it’s that the lack of oversight on the banks was a huge driver of what turned out to be the largest financial crisis since the Great Depression. The film is available on Netflix, which you can access even if you’re restricted by location.

However, the Dodd-Frank bill is not perfect. It includes over 20,000 pages of regulations, and it makes some pretty black and white distinctions among banks. Specifically, it outlines rules for banks based on the value of assets, not the level of risk. This has led many smaller community banks to speak out against the bill, saying it prevents them from being able to expand their business because they have to dedicate so many resources to regulation-related paperwork. Others say this is what the bill was supposed to do—limit risky loans—but others say it goes too far. Regardless, it is clear Dodd-Frank could use some reform.

And so Trump and his Republican House reformed it by passing the Financial CHOICE Act. In general, the bill is modest. It reduces some of the red tape banks need to cut through to grant loans, making it easier for them to provide capital to interested borrowers. But the concerning part of the bill is the reduction of the Consumer Financial Protection Bureau (CFPB). This agency was created from Dodd-Frank and serves as a way for consumers to file complaints about banking fraud, to get information on the practices of other banks and to correct errors in reporting (specifically credit reporting).

In the new bill, the CFPB will be prohibited from banning “abusive” products, and it will have an entirely new leadership structure (a bipartisan committee of five people). Given the current state of Washington politics, the word “bipartisan” could easily be replaced with “do-nothing.” It’s hard to imagine the agency having any real direction without clear leadership from the top.

While Republicans are claiming the Financial CHOICE Act is a way to reduce unnecessary government regulation to help community banks, it’s hard to see how reducing the reach of the CFPB does that. One of the main reasons the 2008 crisis happened was that banks were able to operate largely in secret. They were using seriously questionable tactics, but no one was looking over their shoulder until it was too late. Had an agency like the CFPB existed during this time period, perhaps the damage would not have been so bad.

Reforming the CFPB and the Dodd-Frank bill shows a willingness in Washington to slowly drift back to the days where darkness clouded the banking industry, allowing it to do as it wishes while ordinary citizens bicker over daily controversies. The bill still needs to pass the Senate, but all signs point to a similar approach, and since Republicans have the majority, there might not be much hope of stopping it.

It is not a big leap to say we are in this political predicament because of the 2008 crisis. The consequences of decades of growing inequality and stagnant wage growth were unleashed with the banking collapse. Millions saw their futures disappear in a matter of minutes, and the anger arising from this has polarized even more what was already a divided country. But the answer to this is not more bank deregulation. However, with so many distractions going on in Washington, it is easy to see why this issue has not received much attention, but the potential consequences of this critical first step by Wall Street to return to the glory days of deregulation should be more than enough cause for concern. Much like a magician, Trump is using this “anti-everything” strategy to keep people focused elsewhere so that corporate America can continue its infiltration into politics and its seemingly endless expansion of power.

What do you think of the Financial CHOICE Act? Is it needed reform or a way to return power to the already mighty banks? Let us know by leaving a comment in the section below.

About the Author: Sandra is an alternative news blogger who focuses largely on politics. She is concerned the circus that Washington has become distracts us too much from the important issues. As such, she frequently writes about things such as bank regulation, internet privacy and security, and corporate power, as she considers these to be fundamental issues that few are talking about.

Republicans Willing To See Over 200,000 Die In Order To Give Tax Cut To The Wealthy

The Republican efforts to repeal and replace Obamacare have been stalled due to the devastating report from the Congressional Budget Office showing that 22 million people would lose health care coverage. Only 12 percent of Americans back the plan according to a USA TODAY/Suffolk University Poll. They did find considerable consensus that any health care plan include the following:

  • Pre-existing conditions: More than three-fourths, 77%, say it is “very important” that the health care system permit people with pre-existing medical conditions to buy health insurance at the same price as others. Just 6% say that protection isn’t important to them. The Senate bill requires insurers to accept those with pre-existing conditions, but it allows states to seek permission to reduce required benefits. Some patients could face dramatically higher costs or lifetime limits for treatments no longer defined as essential.
  • Medicaid expansion: Nearly two-thirds, 63%, say it is “very important” that lower-income people who became eligible for Medicaid through the Affordable Care Act continued to be covered by Medicaid. Just 10% say that isn’t important to them. The nonpartisan Congressional Budget Office estimates that the Senate plan, which would cut Medicaid spending by $772 billion over the next 10 years, would result in 15 million fewer people being covered.
  • Lower premiums: Close to six in 10, 57%, say it is “very important” that insurance premiums go down in price; 17% say that’s not important. The CBO predicts that premiums would rise for a few years under the Senate plan, then fall by about 30%. But overall health care costs would go up for most people because deductibles would be higher and some states wouldn’t require insurers to provide some benefits that are now mandated.

A growing number of Republican Senators are also opposing the plan, necessitating major changes if there is any chance for passage.

While Republicans claim that repeal of Obamacare is necessary because the program is collapsing, the CBO report on the Republican plan reaffirms statements in previous reports that these Republican claims are false. The current Congressional Budget Office report states:

Although premiums have been rising under current law, most subsidized enrollees purchasing health insurance coverage in the nongroup market are largely insulated from increases in premiums because their out-of-pocket payments for premiums are based on a percentage of their income; the government pays the difference between that percentage and the premiums for a reference plan.

It also needs to be kept in mind that premiums for plans on the individual market typically had double digit increases annually prior to the passage of the Affordable Care Act, and that this is not a new problem created by Obamacare. Unlike insurance plans sold before Obamacare became law, current plans have limits on out of pocket expenses, no lifetime maximums, and cannot be cancelled by insurance companies when people became ill. Of course there also were no subsidies to assist with paying for the plans. It was also commonplace to have limited options and to see insurance companies leave markets prior to Obamacare.

The actual problem with Obamacare is that it did not go far enough. A public option  or Medicare buy-in was necessary to provide more affordable care for those who do not obtain coverage through an employer or government plan. Expansion of Medicare to all would also have provided a more cost effective solution.

Vox looked at the likely effects on mortality should the Senate Republican plan pass, estimating that there will be 208,500 additional deaths over the next decade:

Drawing on that work, we estimate that if the Senate bill becomes law, 22,900 excess deaths will occur in 2020 — and the figure will grow over time. 26,500 extra deaths will take place in 2026. Over the next decade, we estimate that a total of 208,500 unnecessary deaths will occur if the law is passed (see Table 1).

We also calculate anticipated additional deaths, state by state, using state-level coverage losses for the year 2026 (see Table 2). The predicted excess deaths by state range from 30 in North Dakota to 2,992 in California in 2026 alone.

Some commentators have argued that it’s inappropriate — beyond the pale — to suggest that people will die as a result of this legislation. To the contrary, we contend that no debate over a health care policy can ignore evidence that it could have negative effects on health and mortality.

In making these calculations, we draw on the scientific literature demonstrating that expanding health insurance reduces deaths. We specifically apply the results of a particularly robust study of the effects of health care reform in Massachusetts on mortality. Massachusetts’ health care reform — which expanded Medicaid, offered subsidized private insurance, and included an individual mandate — famously served as a model for the ACA. The Massachusetts study looked at county-level mortality data in 2001 to 2005 (pre-reform) and 2007 to 2010 (post-reform), and compared the changes to carefully selected control groups in other states that had not enacted health reform.

Over 200,000 deaths is a high price to pay in order to provide tax cuts for the ultra-wealthy, which appears to be the major goal of the Republican plan.

Quote of the Day: Seth Meyers On Donald Trump’s Reaction To The Senate Health Care Bill

Senate Republicans today released a draft of their bill to repeal and replace Obamacare, which would cut taxes for richer Americans and insurance companies, and defund Planned Parenthood for one year. The bill is so bad, President Trump said, “Does anyone have any questions for me about Russia?

Alternatively, I could show you my tax returns. Do you guys want to see that?”  –Seth Meyers

(More seriously, not all Senate Republicans were happy with the bill, necessitating a delay in the vote until after the 4th of July recess. Some Republican governors also opposed it.)

Why The CBO Report On The Senate Republican Health Care Bill Is Devastating

The Congressional Budget Office released its scoring of the Senate health care bill. The New York Times summarizes:

The Senate bill to repeal the Affordable Care Act would increase the number of people without health insurance by 22 million by 2026, a figure that is only slightly lower than the 23 million more uninsured that the House version would create, the nonpartisan Congressional Budget Office said Monday.

Next year, 15 million more people would be uninsured compared with current law, the budget office said.

The legislation would decrease federal deficits by a total of $321 billion over a decade, the budget office said.

The results can be seen in the above graph.

The American Medical Association gave this assessment of the bill:  “Medicine has long operated under the precept of primum non nocere, or ‘first, do no harm.’ The draft legislation violates that standard on many levels.”

The increase in uninsured would come from reductions in the number of people covered by Medicaid and by private coverage. Beyond the severe cuts in Medicaid, the Senate bill would provide less assistance in purchasing private plans. One devastating paragraph from the CBO report has been receiving attention:

Under this legislation, starting in 2020, the premium for a silver plan would typically be a relatively high percentage of income for low-income people. The deductible for a plan with an actuarial value of 58 percent would be a significantly higher percentage of income — also making such a plan unattractive, but for a different reason. As a result, despite being eligible for premium tax credits, few low-income people would purchase any plan, CBO and JCT estimate.

The plan also fails to lower premiums for most people, or help to increase the number of insurance plans offered. In other words, it fails to solve the problems which Republicans criticize Obamacare over.

The Republicans face two fundamental problems in trying to develop their own health plan. The first is that Obamacare is essentially the Republican alternative to Hillary Clinton’s health care plan. Obamacare does more than the old Republican plan to regulate insurance companies, but the basic structure is the same. Republicans widely supported the individual mandate and the other aspects of Obamacare which they now attack before it was proposed by Obama. This forces them to come up with something different, and there really are not that many ways to handle health care coverage.

The other problem is that the problems we now see on the individual market were not created by Obamacare. Insurance coverage has always been expensive for those buying coverage on their own, as opposed to being in an employer or government plan, provided that the insurance provided decent coverage. The market has never been able to solve this problem and the only realistic options short of a single-payer plan are ones which involve further government involvement, such as a public option or Medicare buy-in. Republicans are not going to back this.

It is also questionable if enough Republicans will back their current plan for it to even pass in the Senate.