“Ricocheting Around The Conservative Media”: How A Wildly Misleading Obamacare Horror Story Is Born
Far too many breathless news stories about insurance plans being “canceled” or people facing “sticker shock” fail to convey even the most basic context: this is almost exclusively a phenomenon of the individual insurance market, which covers between 5 to 6 percent of the population.
Some of those people – mostly younger, healthier people who, because they’re in the top third of the income distribution aren’t eligible for subsidies – will have to pay higher premiums for more comprehensive coverage, even if they don’t want to. This can cause real economic hardship, and that’s a legitimate issue.
But it’s still an issue that will affect only a small slice of the population. Jonathan Gruber, a health care expert at MIT, estimates that around half of those six percent won’t experience any real change. “They have to buy new plans, but they will be pretty similar to what they had before,” he told Ryan Lizza. “It will essentially be relabeling.”
Gruber adds that most of those plans being canceled run afoul of a provision of the law banning any policy that requires people to pay more than $6,000 per year in health care expenses – plans that may lead to medical bankruptcies, the number one type of bankruptcy in the US.
That leaves about three percent of Americans who may face that tough situation where they have to pay more for coverage they may not want.
That’s not the impression you’d get from most media sources, and certainly not from the law’s ideological foes. Avik Roy, for example – a conservative columnist for Forbes who has not exactly distinguished himself for his honesty in the debates over Obamacare – has a piece today that’s remarkable both for its mendacity and its alarmism.
Roy’s headline is, “Obama Officials in 2010: 93 Million Americans Will be Unable to Keep Their Health Plans Under Obamacare.” And his claim rests on a very simple bait-and-switch…
“The [administration’s] mid-range estimate is that 66 percent of small employer plans and 45 percent of large employer plans will relinquish their grandfather status by the end of 2013,” wrote the administration on page 34,552 of the Register. All in all, more than half of employer-sponsored plans will lose their “grandfather status” and get canceled.
Note that “…and get canceled” are Roy’s words, not those of the Obama administration in 2010. And those words are completely misleading – falsely suggesting that tens of millions of people will feel a real impact like that three percent discussed above.
That an insurance plan is “grandfathered” only means that it has been in existence, with minimal changes in benefits or cost-sharing, since before the law was enacted. Roy would have his readers believe that all these plans will be “canceled,” but most group plans lose their grandfathered status by coming into compliance or through other changes that are routine in our insurance system and always have been. All grandfathered plans will lose their status over time, meaning for the most part that, as Gruber put it, they’ll be ‘relabelled.’ Nobody will notice these “cancellations.”
In fact, large-employer plans don’t even have to conform to those coverage requirements (they do have to follow certain other rules). And the share of workers in grandfathered plans has been shrinking for several years – from 56 percent in 2011 to 36 percent this year – yet we only started hearing about this as an issue in the past few weeks.
In the small-group market, some plans may need to add a missing benefit – maybe pediatric dental and vision care, for example – and premiums will rise accordingly, but that’s a far cry from Roy’s spin.
The reality, according to a 2012 study by the Urban Institute, is that “95 percent of those with some type of insurance coverage (employer, nongroup, public) without reform will have the same type of coverage under the ACA .” Maybe a different plan name, but the same type of coverage.
Yet one can be certain that Roy’s claim that 93 million Americans will be harmed when their insurance policies are “canceled,” while misleading on its face, will be ricocheting around the conservative media, taken as prime evidence that Obamacare is ruining millions of lives when, as Jonathan Gruber puts it, 97 percent of Americans are either untouched by the law or are clearly winners.
By: Joshua Holand, Moyers and Company, Bill Moyers Blog, October 31, 2013
“A Very Low Bar”: How A Crazy Senator Became A Sudden Darling Of The So-Called Respectable Right
Fanfare! Trumpets! There has been a Big Important Speech on the Future of Conservatism. Let’s take it Really Seriously. Sen. Mike Lee, Republican of Utah, went to the Heritage Foundation Tuesday and spoke. Milton Friedman and Irving Kristol were namechecked! Russell Kirk was quoted! The gas tax was proposed to be slashed 80 percent! Oh wait, I am supposed to still be mentioning the Serious parts.
I shouldn’t make fun, maybe. There are serious parts. Lee’s concern for “immobility among the poor,” the middle-class squeeze, and “cronyist privilege at the top,” and his desire to fashion a conservative response to them, is the right note for a Republican senator to strike. Amen to calls for “a new conservatism of the working and middle class,” because either we will get one or the failed attempt to give us one will prove it to be a contradiction in terms. Conservative intellectuals of a reformist bent welcomed the speech—Ross Douthat, Reihan Salam (they co-wrote a book on these themes), Rich Lowry, Jennifer Rubin. BuzzFeed political editor McKay Coppins called it a “lofty, agenda-setting speech” for its ringing declaration, “frustration is not a platform. Anger is not an agenda. And outrage, as a habit, is not even conservative” and for its forceful denunciation of the House Republicans’ sociopathic shutdown tactic, which futilely damaged the U.S. economy and very nearly caused the federal government to default—a narrowly evaded catastrophe.
Except, of course, Lee didn’t do that last thing. Lee was pro-shutdown! Other than Ted Cruz, he was probably the House Republicans’ most important ally in the Senate. And he did not denounce—or, in his case, repudiate—the shutdown tactics. So now you see why I couldn’t help but make fun.
I suppose if we set the bar low enough that insects can do the limbo with it, you could read his speech as endorsing a less insane way forward. But here is what happened Tuesday: One of Washington’s most staunchly pro-shutdown politicians, appearing at maybe Washington’s most important pro-shutdown organization, pointedly refused to condemn the shutdown or suggest he would not support a future shutdown if it meant trying to repeal the Affordable Care Act, a.k.a. Obamacare.
On the contrary, Lee said, “I am proud of my friend Ted Cruz and the dozens of others—including Speaker John Boehner and the House Republicans—who fought Obamacare, continue to fight it, and will not stop fighting it.” At the outset, he narrated, “It began with our effort to stop Obamacare—a goal that all Republicans share even if we have not always agreed about just how to pursue it.” Absent a declaration that he no longer agrees with how he pursued it, one is forced to conclude that he feels the same way now. Douthat, Salam, and Lowry do not mention this.
There is a broader point here. If I ever found the bulk of my political views articulated by somebody whose most prominent action ever—undertaken in the past month and unrepudiated—was as grotesquely irresponsible as what Cruz, Lee, and the House Republicans put us through, it would cause me to question my views. I would reflect upon the fact that Lee and I share these beliefs, and that he logically extends them toward something totally self-destructive and crazy. I would have to conclude either that he is correct to do this, and therefore that my views must be wrong and that I must change them, or that he is not worth listening to, because he takes perfectly good ideas and warps them into something powerfully hazardous. There is apparently no such reckoning among the right’s respectable intellectuals—most of whom did oppose the shutdown itself, and not only for pragmatic reasons.
But in the meantime, let’s stick to the matter at hand. Can’t all reasonable people agree to ignore Mike Lee completely until he says he was wrong about the shutdown? Should this be a controversial suggestion? Given the gravity of the threat of a future shutdown, isn’t that the only responsible response?
Salam highlights several promising policy sketches that Lee offered; and truly, it is hard not to appreciate a Republican concerned with work-life balance issues. But Salam and the others misrepresent Lee—who, Salam notes, holds a relatively safe seat, and so presumably may speak his mind. Giving parents greater flexibility isn’t Lee’s foremost priority. According to Lee, “The first and most important policy goal Republicans must adopt to improve the lives of middle-class families is, and will remain, the full repeal of Obamacare.” How? Again, we have no choice but to presume that Lee believes that a legitimate tactic for repealing Obamacare is, and will remain, shutting down the government and threatening its default. How about we hear Lee out, and maybe even talk to him, sometime after he puts his gun away.
By: Marc Tracy, The New Republic, October 30, 2013
“A Revisionist History Mistrial”: Jim DeMint’s Silly Argument On Obamacare Was Soundly Overruled
The Heritage Foundation’s Jim DeMint – the proto Ted Cruz – has an op-ed in the Wall Street Journal this morning where he makes the case against Obamacare and explains why his organization pushed Cruz and the tea party right to shut down the government (and, presumably, why Cruz is threatening to try to do it again). Most of it is pretty standard anti-Obamacare fare, but one section is worth noting for its casual dismissal of last year’s election results.
Responding to the notion that Republicans should lay off Obamacare because the president won and they lost last November, DeMint writes:
… ObamaCare was not the central fight in 2012, much to the disappointment of conservatives. Republicans hoped that negative economic news would sweep them to victory, and exit polls confirmed that the economy, not health care, was the top issue. The best thing is to declare last year’s election a mistrial on ObamaCare.
Sorry, but you don’t get to declare a mistrial on election results because you don’t like them.
First, this raises the obvious question: Would DeMint entertain a similar argument against repealing Obamacare were Mitt Romney president right now? If negative economic news had indeed swept the GOP to victory, would anyone on the right find credible the argument that because the economy, not Obamacare, had been the big issue of the campaign, the GOP had no business trying to roll back the law?
Of course they would not – because the mistrial argument is silly. It’s true that exit polls showed the economy to be overwhelmingly the biggest issue of the campaign, with 59 percent of voters citing it as their top issue and health care a distant second at 18 percent. But there’s a difference between something being the driving issue of the campaign and being the only one. Voters didn’t cast their ballots in an issue void and it’s not like Obamacare was some sub-rosa topic that wasn’t properly litigated. It was the focus of politics for most of President Obama’s first term. Mitt Romney made it a mainstay of his campaign and ran ads on it.
So the fact that voters had bigger concerns isn’t grounds for a mistrial, but instead is a clarifying fact about their priorities. Last November, voters, having had years to digest the Obamacare wars, decided that the law isn’t the existential crisis that DeMint, Cruz and their ilk do and also decided to rehire the fellow who instituted it. Oh, and among the 18 percent of voters who did name health care as their top priority, three-quarters voted for President Obama.
I suppose there is one positive to come out of DeMint’s op-ed. By arguing that elections don’t count when it comes to secondary issues, he’s implicitly saying that elections do have consequences in regard to the top issue. That being the case, I look forward to DeMint and the Heritage Foundation graciously ending their opposition to President Obama’s economic agenda.
By: Robert Schlesinger, U. S. News and World Report, October 18, 2013
“No Country For Old Tea Partiers”: Conservatives Who Caused The Shutdown Must Make Peace With Themselves And Modern America
Fareed Zakaria has a very sharp op-ed in the Washington Post this week dissecting conservatism’s longtime “diet of despair” and how conservatism’s traditional rhetoric of “decay, despair and decline” has created an anti-American mentality among the set that very self-consciously claims to love the country more than everyone else.
But one section in particular crystalized something that has been nagging me over the last few weeks, especially when tea party conservatives denounce compromise and deal-making as if they are bad things, when the smug Ted Cruz goes on about waging a “multi-stage, extended battle” to change Washington or, as Zakaria notes, John Boehner utters with exasperation that “the federal government has spent more than what it has brought in in 55 of the last 60 years!”
Zakaria’s reply is spot on:
But what has been the result over these past 60 years? The United States has grown mightily, destroyed the Soviet Union, spread capitalism across the globe and lifted its citizens to astonishingly high standards of living and income. Over the past 60 years, America has built highways and universities, funded science and space research, and – along the way – ushered in the rise of the most productive and powerful private sector the world has ever known.
I asked half-kiddingly the other day why conservatives are trying to convince markets not to invest in the United States (“the markets should be terrified of a country that is trillions and trillions and trillions of dollars in debt,” according to Heritage Action’s Michael Needham, for example), but there’s as much truth as humor to the question.
As Zakaria puts it, the conservatives who spurred the recent government shutdown (and, let’s remember, voted against both reopening it and against the U.S. paying its bills) must make peace with modern America:
They are misty-eyed in their devotion to a distant republic of myth and memory yet passionate in their dislike of the messy, multiracial, quasi-capitalist democracy that has been around for half a century – a fifth of our country’s history. At some point, will they come to recognize that you cannot love America in theory and hate it in fact?
They may, but it won’t be soon. This is why less than a year after getting beaten soundly in last November’s elections, the conservative fringe shut down the government and threatened to force a national default as part of a quixotic, suicide-run quest to roll back a law it couldn’t stop using the ordinary legislative process. And it had the gall to claim the mantel of “the American people” as they did it.
Think about the animating faction of the GOP in the Obama era – a group conservative in the literal sense of being angry with and afraid of change. These are the people who would show up at Tea Party rallies toting signs about the need to “Take Back America.” For four years they were assured by the conservative entertainment complex that restoring the America they grew up in was a real possibility. The vertiginous changes remaking the land could be ascribed to Barack Obama, an illegitimate fluke of a president who won only because of a one-off surge of young and minority voters powered by excitement about his historic nature and vapid “hopey–changey” rhetoric. He was “Barack the Magic Negro,” in Rush Limbaugh’s formulation. He was, simultaneously, helpless without his teleprompter but also a radical instituting a nefarious plan to sap America of its God-given freedoms.
He was the problem; real America was the solution.
The 2012 elections shattered that illusion. Obama was only a symptom of changes in the country, not the cause. Inexorable demographics have relegated the Tea Party’s America to memory. So ask yourself, how are those voters likely to react? A warm embrace of the new America? Or, faced with an unacceptable reality, will they retrench in their fantasy and double down on crazy and angry?
We’ve seen an initial double-down. Its failure won’t stop more of the same – the question is whether the rest of the GOP will keep indulging the hardliners.
By: Robert Schlesinger, U. S. News and World Report, October 18, 2013