The collapse of the repeal of Obamacare is still shockingly difficult to digest. It was a crazy idea–revamp the system responsible for 18% of US spending in 4 weeks to mark the anniversary of the passage of the Affordable Care Act. They had 8 years to develop comprehensive healthcare insurance legislation. This was the best they could do, a plan developed by HHS Secretary Tom Price while still in Congress. In fact, it had been incorporated into the GOP House “Better Way”, used in campaigning in 2016.
The American Health Care Plan was Ryan’s plan to dive right into two important stock GOP priorities, cuts to Medicaid and tax cuts for the wealthy. The decision to use the reconciliation device necessitated leaving much of the elements of Obamacare untouched; that proved advantageous in trying to convince Americans that popular advantages gained with Obamacare would continue. It seemed a reasonable strategy, but the public proved more savvy than anticipated and erupted. The horse trading frenzy ensued; remove subsidies, increase tax breaks. Moderates were alarmed that essentially the same number of people who had acquired insurance through Obamacare would lose it under Ryancare. The Freedom Caucus balked at any subsidies, the continuation of Medicaid expansion programs and so much more.
Let’s take a step back to see how the Republicans got into this mess. Recall that when Obamacare was first proposed, there was a groundswell of opposition to government intrusion into health care. There was conservative propaganda about death panels and rationing. There were charges of socialism and communism. The protest spawned the Tea Party. It took 14 months to pass the Affordable Healthcare Act.
Obamacare started shakily, hampered by states with Republican governors refusing to create state insurance exchanges, opting out of Medicaid expansion, and finally the dysfunctional ACA website. But Obamacare’s very existence began shifting the paradigm toward healthcare is a right, not a privilege. As more and more people who needed to get medical care joined the ranks of the insured, they felt the change that access to health care made in their lives.
But Republicans could not abandon their rallying cry. They drew support from healthy people who didn’t use the medical system, from young people and more libertarian elements who resented the mandate. And of course, politicians and elected officials listen more closely to each other than their constituents in order to maintain their rhetoric at a fever pitch. They didn’t notice as more and more people became comfortable with the idea of nonemployer healthcare insurance, particularly as more and more companies stopped offering health insurance as a benefit. Recovery from the Great Recession allowed employers to stop offering health benefits in a market with an oversupply of labor. Obamacare offered an alternative for growing numbers of part-time workers and contractors.
People not using the medical system had no a idea ho their insurance worked; lots of personal testimonials about people who opposed Obamacare until they got a life threatening illness emerged in the repeal debate. It was not just Obamacare, but their thinking about the principle of healthcare as a right that changed as they began to sense the societal need to maintain a healthy population. European countries realize this; healthy societies have healthy children that learn better and grow into healthy adults who are more productive. It’s pretty simple actually. But this is certainly not the niggardly Republican way. Every man for himself; if an individual doesn’t achieve in the free market, that’s on them.
It was only during the 2016 campaign that “Repeal Obamacare” evolved into “Repeal and Replace Obamacare” as the party tried to catch up with it’s supporters. And then there was the candidate, a populist pragmatist, promising essentially universal health care–the best healthcare for everyone at the lowest cost. Now, there were lots of supporters invigorated by The Celebrity Candidate who rallied to the Repeal and Replace anthem that didn’t understand that their insurance was Obamacare, not realizing that that was a nickname for the Affordable Care or that their insurance was Medicaid by another name, provided by Medicaid expansion programs. Trump was offering something even better.
The GOP had painted itself into a corner. The party does not subscribe to healthcare as a right; to the contrary, it is philosophically opposed to a role for government in the health insurance market at all. They believe free market forces can shape medical insurance costs and for that matter, medical costs in general. But this too is devoid of any connection with the reality of the healthcare industry. For a free market to function, transparency is paramount; consumers need information to make choices; companies advertise the merits of their products to attract customers. None of those conditions exist in the healthcare system or insurance industry. There hasn’t been a free market in health insurance for decades, certainly not since the advent of health maintenance organizations HMO. Truth be told, they care little about whether ordinary citizens are healthy or ill. It’s a shark tank; let the best man swim or sink.
Enter HHS Secretary Price’s “patient centered care” nonsense which supposedly puts medical choices back between the patient and their doctor”. Price, as a former physician, knows first hand the falseness of that claim; the most important entity in the care discussion is the insurance company. And insurance companies hold all the cards.
So Ryan jumped into the breach with a plan that would masquerade as maintaining access to “healthcare” while jump starting transfer of more wealth to the already wealthy and hopefully, weaning the public from the health care as a right mindset over time. It is important to note that Republicans, particularly Tom Price, were careful to speak about access to “healthcare insurance”, not access to care, which they wanted the public to believe was no longer available to many because of rising premiums, deductibles, co-pays and co-insurance. But actual medical care for US citizens is not a party concern; that’s for the free market to settle.
Republicans couldn’t deliver on Trump’s promises because they didn’t want to. Their agenda is different. Trump masquerades as a populist, the party is not that. Apparently, during a mere 8 years out of power, they forgot how to govern. The party is fractured by unruly factions who want what they want and will accept nothing less. PresidentDealmaker failed them. If only some entity could point “You’re Fired!” and get him off the show. It does seem curious that Trump didn’t want his name on the American Health Care Plan. Obviously atypical for a man who puts his name on steaks, vodka and even patent applications for Chinese massage parlors. Could it be that even in his state of legislative naivete, he intuited the debacle and studiously avoided being associated with yet another failure– a healthcare plan that offered none of what he promised. This is the losing streak that defies “there’ll be so much winning” that people will get tired of it.
The party is moving on. Healthcare is a quagmire they need to escape from. In their minds, the opportunity lost was the foundation for their tax cuts and restructured tax code. They will concentrate on the former because the tax code is an enormous task for which their factions will need some practice in compromise. And quick results are the theme of the day, perhaps because Republicans are afraid their days are numbered after the repeal debacle.
They have a propaganda strategy in place, kicked off by the BullyPresident himself. One, it’s the Democrats fault; two, Obamacare will implode; the Democrats own the dissolution of the healthcare system. Their implementation will be to do whatever it takes to help it along, quietly through changes in HHS regulations and to Medicaid through CMS (Center for Medical Services), the agency that oversees Medicaid and Medicare, where Seema Verma, the new director, can alter federal requirements for the federal dollars that support state programs.
In the interim, will GOP legislators who are genuinely concerned about health care, even in the Republican sort of way, try to float their own bills? Will they reach across the aisle to Democrats? It remains unclear if 45 is capable of creating his own legislative agenda or will he allow Ryan to take the lead. Here is a kernel of criticism that applies to the Obama administration. If a reliance on the executive order was the result of obstructionist Republican tactics, one never had the sense that Obama envisioned a presidential role in the down and dirty sparring of the legislative process as opposed to the loftiness of diplomacy. The legislative agenda in the current administration is more likely the bailiwick of strategist Steve Bannon, with logistical planning through the Vice President.
Tax cuts is sure winner. If there’s anything that Republicans agree on, it’s tax cuts. The party insists that tax cuts increase economic growth, grounded in staunch allegiance to economic theory that defies history. A graphic look at economic growth tells the real story; economic growth increases following tax increases, and falls after tax cuts. When Bush 41 and Clinton increased taxes, growth soared. After two successive tax cuts by Bush 42, growth continued to fall and dropped off the precipice in the 2007 recession.
But party that has been focused on devastating the middle and working class to transfer wealth to the rich can easily accomplish that. Restructuring the tax code is far more complicated. When the dust clears from the debate, Congress will probably lop out a few deductions, add some tax credits and call it a day. But the fight will finally put 45 in the winner column, something he sorely needs.