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Being Critical of Daschle’s “Critical”

Jan
15
2009

Like legions of other health care policy href="http://healthaffairs.org/blog/2008/12/15/daschle-what-can-we-expect-of-the-health-czar-in-waiting/">wonks when I discovered that former U.S. Sen. Tom Daschle was going to be Obama’s point guy on health care, I sent off for a copy of his book Critical. It’s a fast and easy read, but in its examination of the problem it doesn’t add much to superior books on what’s wrong with health care.

First, the former Senate Majority Leader promotes himself as a scholar of failed attempts at health reform past, and of course a witness to the most recent attempt. He’s been here, and seen this done wrong.



Critical

But the actual coverage solution Daschle proposes is to essentially expand the insurance program that covers federal government workers (something called the Federal Employee Health Benefits Program) with some improvements made by states like Massachusetts and to impose a pay (the government) or play (by providing insurance) option on employers. Daschle would also expand Medicaid and the current insurance for poor children – and then add an individual mandate with subsidies to those who can’t afford to buy-in to FEBHP.

This package is tied together, sort of, by a Federal Health Board.

Daschle lucky that he didn’t call this board Fannie Med, but he’s a victim of poor timing as he links his health board’s success to the accomplishments of the Federal Reserve at a time when that “success” is looking, shall we say, shaky.

The main role of the Federal Health Board would be as a cost-effectiveness review organization with teeth since that Medicare, Medicaid and the (newly expanded) federal employees benefit plan would all be bound to follow its guidelines. So essentially he’s advocating the creation of a national health insurance benefits package with federal supervision on rates and practices.

Critics on the loony right (old reliable Sally Pipes there in the Wall Street Journal) will call this rationing. More thinking critics will call it the slow emanation of a messy single payer system. That’s essentially what it’ll turn out to be as the private plans toss the worse (and most expensive) health risks into the federally supported pool and employers steadily get priced out of providing health benefits. Daschle, would be happiest with a U.K.-style single payer with a trade up option, but dismisses that course as unrealistic for the U.S. He also dismisses as unrealistic moderate attempts by Sen. Ron Wyden attempts to decouple health care insurance from employment and create a truer “market” based on social insurance (which is closer to the Dutch model).

So the problem with Daschle’s proposals as outlined in Critical come down to two things.

Share  Posted by Matt Holt at 6:34 PM | Permalink

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