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Today’s Big Lie

Topping today’s fake news is the Republican mantra that Obamacare is failing and whatever faults their replacement plan may have, nothing can save Obamacare. Cited as evidence is a decrease in the number of insurance companies serving certain states. Aside from the obvious option of the federal government providing coverage as it does in Medicare, which no one mentions, is the quiet Republican sabotage that brought about this situation.

For the last seven years since the Affordable Care Act (aka Obamacare) came into law, Republicans have not only claimed they had a better plan (when they obviously didn’t),  they have worked behind the scenes to gut key elements of the ACA. Now, disingenuously, they act as though they had nothing to do with the problems they cite as evidence of its failure.

If these were decent people, they wouldn’t be able to face themselves in the mirror. But extremists have never let a little basic human decency get in the way of their agenda.

Back in 2015, as the ACA took effect and more people were for the first time able to gain desperately needed medical care, Republicans saw that they would never be able to tear this coverage out of the hands of sick and dying people without suffering political blow-back. So with their midterm election wins giving them legislative authority, they eagerly set about gutting key elements of the ACA in a strategy meant to guarantee its failure.

The law had made provisions for early insurance company losses described in the bill as a ‘risk corridor.’ Expected to decreasingly occur as the bill’s mandatory enrollment requirements gradually built up the number of healthy insured persons, the risk corridor would eventually die off. In the interim, companies were guaranteed government reimbursement to cover such losses.

So in 2015, Senator Marco Rubio led an effort to gut the risk corridor provision. Slipped into a massive spending law late that year, their meddling cut the payments to insurance companies from $2.9 billion to around $400 million. This left insurance companies no choice but to begin withdrawing from low income/high illness states.

Now we hear Rubio, Ryan, et al crowing about how the ACA failed as if they had no hand in that failure.

It’s not that these men want to really hurt their less fortunate brothers. It’s that they worship only two gods—money and so-called conservative values.

As noted in an excellent discussion of the Republican conundrum about health care, “Republicans will not increase the role of government [in health care] for political and ideological reasons” which is why they cannot now or ever develop a plan that is better and cheaper than the ACA.

The conservative agenda is clearly stated as limited government, a healthy culture, and a strong defense. I’ll refrain from ranting about their idea of a healthy culture, code words for “White” and “Christian.”  Sticking to the topic of this post, I’ll point out that “limited government” does not include mandating health care or providing for health care in any way. Worshiping at the feet of so-called ‘free markets,’ conservatives want the sick left to die. If relatives, neighbors or churches don’t help them and they haven’t managed to make enough money to help themselves, then it’s their fault and God’s will that they suffer.

Limited government is a loosely applied term, however. If it comes to invading private homes to rout out pot smokers, conservative lawmakers are all about it. Yet if it comes to corporate polluters lying about profitable chemicals that cause birth defects and cancer, it’s hands off. This means government is limited only when it comes to policing entities that are too big for any citizen or group of citizens to fight alone and unlimited when it comes to bringing the full police powers of the state against individuals who violate conservative cultural norms.

In one tiny example of the absurdity of the health care debate currently underway is the fact that over half of Medicaid recipients are children under the age of six who have developmental disabilities. I blogged about this last week. While seeking to reduce or eliminate Medicaid that serves such children, the Republicans simultaneously are eliminating government oversight of chemical pollution from which many such disabled children arise.

If legislators had the real interests of the American people at heart, they would throw out their replacement plan and the Affordable Care Act and expand Medicare to the entire population. They would remove profiteering insurance companies from the mix. They would instill cost controls on drug companies and medical providers.

After all, if utilities are such a vital need that they deserve government price controls, surely health care is an even greater vital need.

It doesn’t take a genius to figure out that without insurance companies taking a healthy slice of every health care dollar, costs would go down. Or that there’s a screaming need for cost controls when pharmaceutical industry profits routinely equal the profits of banks at nearly 20%, some as high as 40%.

Drug companies are quick to cry how much they need all that money so they can develop new drugs. But reality is that despite investment in new drugs and abusive advertising campaigns, their profits exceed most other industries. With that kind of loose change, it’s no wonder that one of the heaviest contributors to political candidates are drug companies, coming in right after big banks and weapons manufacturers.

World’s largest pharmaceutical firms
Company Total revenue ($bn) R&D spend ($bn) Sales and marketing spend($bn) Profit ($bn) Profit margin (%)
Johnson & Johnson (US) 71.3 8.2 17.5 13.8 19
Novartis (Swiss) 58.8 9.9 14.6 9.2 16
Pfizer (US) 51.6 6.6 11.4 22.0 43
Hoffmann-La Roche (Swiss) 50.3 9.3 9.0 12.0 24
Sanofi (France) 44.4 6.3 9.1 8.5 11
Merck (US) 44.0 7.5 9.5 4.4 10
GSK (UK) 41.4 5.3 9.9 8.5 21
AstraZeneca (UK) 25.7 4.3 7.3 2.6 10
Eli Lilly (US) 23.1 5.5 5.7 4.7 20
AbbVie (US) 18.8 2.9 4.3 4.1 22
Source: GlobalData

In fact, if you take a look at the list of corporate donors to the 2016 campaign, you can pretty much determine the current legislative agenda: more military spending, Wall-Street friendly cabinet members, and no serious effort to provide for the health and well-being of the American people.

 

 

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