Wednesday, July 15, 2009

There Should Be No Clash Between Public Option and Single Payer

We Need Clear Thinking: There Should Be No Clash

Between Public Option and Single Payer

 

By Joshua Holland, AlterNet

 

Posted on July 13, 2009

 

http://www.alternet.org/story/141238/

 

On the surface, there's a deep divide within the

progressive movement over how to fix America's ailing

health care system. A sometimes nasty, running food-

fight has raged between advocates of a public insurance

option and those who favor a "single-payer" system.

 

The rift endangers what might be the most important

domestic policy of our time.  As Washington Post

columnist Harold Meyerson noted this week, while

there's extensive institutional support behind the push

for a public insurance option, there's little "street

heat" -- a paucity of  grassroots pressure being

applied to sold- out lawmakers who believe that

insurance company's profits are more important than

getting health care right.

 

But the debate represents a false dichotomy to some

degree. That's because most systems that people think

of as "single-payer" are not. Among liberal

democracies, something approaching single payer exists

in Canada, Australia and the UK. But even in these

countries, buying supplemental insurance from private

insurers is commonplace.

 

Has Any Country Gotten "Profits out of Health Care"?

 

The reality is that virtually every advanced, wealthy

country features a universal system -- we're the

exception -- that is financed through a blend of public

and private means. See, for example, this Wikipedia

entry about the health care systems in Holland, Germany

and Belgium -- all of which are commonly referred to as

single-payer systems, but in fact have "multiple payers

but with some single-payer features." Those features

include: universal coverage, regardless of citizens'

ability to pay, heavy state regulation and either the

ability to bargain for the best prices from providers

or having prices set by the government.

 

So, if you're a "single-payer" advocate (like myself)

the question arises: wouldn't you be happy to have

something like Germany's system (when I lived in Berlin

in the early 1990s, I had an accident, broke a bone and

went to the ER without insurance. They X-rayed it, set

it and gave me a bunch of happy pills to take home.

Total bill: $10).

 

Then there is the Cadillac of health care systems --

the French model. Would we be poorly served with

something like the system that scores the highest among

industrialized countries in most measures of patient

satisfaction, access, longevity, child mortality, etc.?

Of course not.

 

The French enjoy guaranteed quality health care from

cradle to grave that is financed, in large part,

through tax revenues. However, it is not a single-payer

system. 35 percent of French hospital beds are in

private facilities; over 9 in 10 French citizens have

supplemental insurance and, as this backgrounder

explains, "About seventy five percent of the total

health expenditures are covered by the public health

insurance system. A part of the balance is paid

directly by the patients and the other part by private

health insurance companies that are hired individually

or in group (assurance complémentaire or mutuelle,

complementary insurance or mutual fund)."

 

When we talk about "single-payer" what we're really

saying is that guaranteeing access to decent health

care -- just like sanitation, the provision of clean

running water or electricity -- should be considered a

fundamental duty of the state. But from that point,

there's no reason I can see to exclude the private

sector entirely. We regulate utilities that provide

those other vital services, and limit their profit

margins, but we don't rely on the government alone to

deliver our electricity.

 

In France, "The State sees that the whole population

has access to care; it dictates the types of care that

are reimbursed, and to what degree, and what the role

is of the different participating entities. The State

is in charge of protecting patient's rights,

elaborating policies and enforcing them. It is

responsible for public safety."

 

That sounds fine to me, even though I identify myself

as a "single-payer" advocate.

 

And the reason that this is more than a semantic point

is straightforward: the proposal before us today would,

if done right -- and the Devil is most certainly in the

details -- achieve a hybrid public-private system with

"some single-payer features" much like what citizens of

other liberal democracies enjoy.

 

Put another way, the idea of getting "private profit"

out of health care, while perhaps appealing on

ideological grounds, doesn't reflect what the rest of

the world has done. A more practical goal is addressing

our shortcomings in part by shifting the balance

between the public and private delivery of health care.

Currently, the United States ranks dead last, among the

wealthiest nations, in terms of the portion of our

health dollars spent on public health.

 

Having a greater share of health spending in the public

sector not only results in a very large insurance pool,

and the efficiencies of scale and bargaining power that

comes with it. Countries with a higher rate of public

health spending end up with a different set of

incentives. Unlike a wholly fragmented system relying

on only private and largely unregulated insurance --

where an insurer has no incentive to make sure you stay

healthy because when you get sick it's just as likely

to be on someone else's dime -- public health providers

tend to place greater emphasis on preventing illness

rather than waiting until people get sick and seek costly treatment.

 

A Debate About Tactics, Not a Fight Over Fundamentals

 

Karen Dolan of the Institute for Policy Studies is

right in arguing that the fissure between public option

fans and single-payer advocates is shallower than it appears at first blush:

 

     One problem in progressive circles that

     contributes to the confusion is the perception,

     real or not, that single-payer and public option

     advocates are fighting each other, weakening

     support for both. Though some of that is going on,

     the greater problem is that people think that's

     what's going on, and thereby try to push each

     other out of the room.

 

There are very few healthcare advocates who will tell

you that a single-payer healthcare system is not the

correct remedy for the U.S. health care crisis. What

they instead will say is that single-payer is dead

politically, and that Obama and the Progressive

Democrats' public option is the only politically viable option.

 

This is a key point -- the divide that does exist in

progressive circles is tactical, not ideological. Most

of those pushing the public option would, if they had

their druthers, enact a "single-payer" system. But they

recognize that the two commercial enterprises that have

spent the most on political lobbying in recent years

are the "disease-care" and insurance industries.

 

Like single-payer advocates, they believe that a large

insurance pool with extensive government regulation and

some subsidies afford the greatest potential for (near)

universality and cost containment. And they think that

given the choice -- given a demonstration that this

approach works better than having a fragmented system

of private insurers -- most people will eventually opt

into the public plan, and we'll end up achieving

something approaching a "single-payer" system --

although an American-style variation -- through the

back door. They just don't think single-payer is a

viable proposal given the clout that Big Health wields

in Congress, and I'm not idealistic enough to say that they're wrong.

 

The reason this is an important distinction is simple:

people can differ respectfully and in good faith when

it comes to tactical differences, but arguments over

fundamental philosophical differences tend to become heated, and quickly.

 

Finally, the divisions over the role of public and

private insurers distract from other things that we

need in order to fix the system. We may differ on the

role that private insurers might play in a revamped

U.S. health care system, but there are other issues at

stake in this debate around which consensus shouldn't

be hard to find. We can agree on the need for payment

reforms that would discourage providers from providing

endless and often ineffective procedures; we can agree

on the need for tighter regulations that would keep

insurers from cherry-picking the patients that they

want to cover, and we can agree on the need for

investing in a secure electronic records system that

would cut down on the  cost of shuffling paperwork around.

 

Understanding all of this leads, I think, to a lot more

agreement among progressives than appears to be the

case at first blush. It refocuses the debate towards a

more productive question: how much private sector

involvement we want, and what structure we might adopt

for health care financed through the private sector in

order to keep the insurance industry's predations in check.

 

It also explains why some single-payer advocates --

like myself -- are advocating so fiercely for the

legislation working its way through Congress to be done

right, with a large public insurance pool that's not

restricted from bargaining with providers or otherwise

forced to compete with private insurers on an uneven playing field.

 

Joshua Holland is an editor and senior writer at AlterNet.

 

c 2009 Independent Media Institute. All rights reserved.

 

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