No Credibility Or Integrity: What McKinsey & Company Has To Hide
An outfit called McKinsey & Company released a report this week making all kinds of discouraging claims about the Affordable Care Act. According to the study, nearly a third of American businesses will stop offering health coverage to their employees as a result of the new reform law. Several news outlets pounced on the release of the report, as did many Republicans.
The White House’s Nancy-Ann DeParle, in a rather understated response, urged caution.
A central goal of the Affordable Care Act is to reduce the cost of providing health insurance and make it easier for employers to offer coverage to their workers. We have implemented the law at every step of the way to minimize disruption and maximize affordability for businesses, workers, and families. And we agree with experts who project that employers will continue to offer high quality benefits to their workers under the new law. This one discordant study should be taken with a grain of salt.
That’s putting it mildly.
McKinsey claims to have done a survey of 1,300 employers. How was it conducted? We don’t know and McKinsey hasn’t said. What were the questions? We don’t know and McKinsey hasn’t said. How were the employers chosen? We don’t know and McKinsey hasn’t said. What were the statistical breakdowns among businesses of different sizes? We don’t know and McKinsey hasn’t said.
Who funded the study? We don’t know and McKinsey hasn’t said.
Kate Pickert noticed a small tidbit in the report: McKinsey acknowledged having “educated” those participating in the survey. And what, pray tell, did the company say to respondents that might have affected the results? You guessed it: we don’t know and McKinsey hasn’t said.
Politico added today that it “asked really nicely” to at least see the questionnaire McKinsey used to conduct the employers survey, but the company refused.
Raise your hand if you think the McKinsey & Company report has some credibility problems.
But here’s the angle to keep an eye on. How soon will Republican talking points simply incorporate this highly dubious claim into all arguments about health care policy? That’s usually how this game works — sketchy outfit tells the GOP what it wants to hear; Dems point out how baseless the claim is, and the media presents the information in a he-said-she-said format, leaving the public to think “both sides” have merit.
Keep this in mind the next time you hear a Republican claim on television, “We recently learned that a third of American businesses will stop ensuring their workers.” It won’t be true, but that won’t matter.
By: Steve Benen, Contributing Writer, Washongton Monthly-Political Animal, June 9, 2011
We Deceive, You Believe: A New Reality Show For Sarah Palin And Fox
I have a great idea for a new show on Fox. It would be a reality comedy show with Sarah Palin as the host. It’s what Hollywood calls “high concept.” The idea would be that all the Republican presidential candidates would travel across America in Sarah’s RV. Hilarity follows.
Late night comic Jimmy Fallon put it best: “Obama was in Ireland. He thought about buying a four-leaf clover for good luck, and then he looked at the field of Republican candidates and decided it wasn’t necessary.”
Dramatis personae include:
Gary Johnson—Ex-governor of New Mexico who favors the legalization of pot. He didn’t get an invite to the next GOP debate, but his hopes are high and he has grassroots support.
Herman Cain—Multi-millionaire and former CEO of Godfather’s Pizza. He’s rolling in dough.
Newt Gingrich—Former speaker of the House. If he really is a fiscal conservative, he would use his $500,000 revolving charge account at Tiffany’s to make a payment on the federal debt. He is clearly the jewel in the GOP crown. The former speaker is currently on a cruise with his wife in the Mediterranean. He will return to the campaign trail after he decides whether he supports or opposes the Ryan plan to gut Medicare. It might be a long trip.
Palin—Can the former half-term and half-baked governor of Alaska see Russia from her magic bus? This trip is her magical mystery tour because we have no idea where it will lead. She rained on Mitt Romney’s parade by showing up in New Hampshire on the day of Romney’s formal announcement and popping him for his support of a state run healthcare program in Massachusetts with a personal mandate. National surveys indicate that twice as many voters dislike her as like her. So, I don’t think she will get a mandate from Americans.
Michele Bachmann—Tea Party favorite and conservative congresswoman from Minnesota. When baseball players have a short stay in the majors, it’s a cup of coffee. She will have a cup of tea in the presidential race. Last week, Representative Bachmann said she and former half-governor Palin were friends. That didn’t last long. This week, Bachmann’s campaign manager said Palin wasn’t a “serious” candidate. At least the Minnesotan and I agree on something.
Chris Christie—Governor of New Jersey. Teddy Roosevelt described the presidency as a bully pulpit. Christie is just a bully. Don’t be surprised if he helicopters into the race.
Rudy Giuliani—The former mayor of New York City. Why not? He did so well last time. If he runs, he should borrow Donald Trump’s toupee and MapQuest Iowa so he can find it this time.
Jon Huntsman—Ex-governor of Utah who served two years as President Barack Obama’s ambassador to China. He will charge Obama with incompetence. Just look at the clown the president made ambassador to China.
Bobby Jindal—The governor of Louisiana who is not ready for prime time TV. But that hardly disqualifies him in this field.
Mitt Romney—Former governor of Massachusetts and the father of Obamacare. This would be the grudge match of all time. Healthcare reform 1.0 vs. 2.0. A Romney position is like the New England weather. Don’t like it, just wait, because it changes every 15 minutes.
Ron Paul—Paul is the anti-Romney because the Texas congressman sticks to his positions for more than 15 minutes. Actually, he still holds Herbert Hoover’s positions. But will socially conservative voters buy his opposition to drug laws and will the neocons accept his opposition to the wars in Afghanistan and Iraq? I don’t think so.
Tim Pawlenty—The former two-term governor of Minnesota is as bland as his fellow charismatically challenged Minnesotan, Walter Mondale. Jay Leno described T-Paw to a t when he joked, “You know, I don’t want to say Tim Pawlenty is boring, but his Secret Service codename is Al Gore.” Bland is good, though, because the other GOP candidates have enough baggage to fill a Boeing 727 headed for LAX.
Rick Perry—In 2009, the governor of Texas threatened to secede from the union. The question is whether he wants to lead or to secede. Too bad Jeff Davis isn’t still around to be his running mate.
Rick Santorum—Why does he torture himself with the hope he could win? Is the GOP this desperate for a candidate? He lost his Senate seat in a presidential battleground state, Pennsylvania, by 16 percent.
This may be why four out of 10 Republicans in a new Pew Research Center poll say they are not impressed with the GOP presidential candidates. But I think the reality TV show would get good ratings hammocked between Family Guy and The Simpsons on Sunday nights.
By: Brad Bannon, U. S. News and World Report, June 9, 2011
Is Paul Ryan’s Medicare A Voucher System Or Not: Who Is Demagoguing Who?
During the White House meeting this week between President Obama and the Republican leadership, Rep. Paul Ryan took the President to task for demagoguing Ryan’s proposed Medicare changes.
According to the Congressman, the insistence on the part of the President- and his brother and sister Democrats – that the program is a voucher system rather than the ‘premium support’ program Ryan steadfastly claims the idea to be, is grossly misleading Americans, all for the purpose of political gain.
While Ryan’s confrontation with Obama brought cheers from the GOP freshman class who fill the corridors of Congress these days, the question that needs to be asked is, ”Who is demagoguing who?”
In truth, the concepts behind premium support and voucher programs are fairly close, each with a similar objective – the government helping out the beneficiary by paying a portion of a benefit, in this case an insurance premium.
Rep. Ryan likes to point out that his proposed Medicare program is the same as that employed by the Federal Employees Benefits Program and the Medicare Part D benefit that helps seniors pay for their prescription drugs. Both these programs operate using government premium support, whereby the government contributes towards the payment of the premiums charged by the private insurance carrier to the beneficiary, but makes the government’s share of the premium payment directly to the insurance company issuing the policy.
This direct payment is what is often considered the point of distinction between a voucher and premium support. In a voucher program the government gives the financial support directly to the beneficiaries who are then on their own to do what they will with the money, so long as they don’t look to the government to do anything else for them.
Using this standard alone, Rep. Ryan would have a point.
Indeed, his plan proposes seniors going to private insurers for their health care coverage with the government contributing a share of the premium charges and making the payment directly to the insurance company. This is just as the federal government does in the cases of federal employee benefits and Medicare Part D.
However, there is a more important distinction between premium support plans and vouchers.
In the plan that provides heath care benefits for federal employees, on which Ryan relies to make his premium support case, if a government employee’s premium costs go up –and they always do – the government increases the premium support in lockstep with the increased premium.
Not so with RyanCare.
Ryan’s proposal, that would turn Medicare into a private insurance program with the government providing assistance to seniors on their premium payments, limits increases in that support to the cost of living index – an amount wholly insufficient to cover the extra costs as we know that rising costs of health care and premium charges always exceed annual cost of living increases. Thus, if premiums increase (and of course they will) the costs of these increases will be shifted to our senior citizens who, in most instances, would not appear to have the ability to take on these increased costs on their fixed retirement budgets.
This, by anyone’s definition, is a voucher program.
In a recent piece by Washington Post blogger Ezra Klein, Ezra interviewed Henry Aaron of the Brookings Institute and Bob Reischauer of the Urban Institute. Messrs. Aaron and Brookings are the two gentlemen who originally came up with the term “premium support” to describe their idea for a Medicare system where the program is opened up to competition by private insurers but has safeguards built in to protect Medicare beneficiaries from the very cost shifting program the Ryan plan proposes.
While Ryan has largely adopted this model – the two originators make clear that he has done so without the key cost shifting safeguards that they believe are so essential to it working.
According to Aaron-
If one does the arithmetic, income grows a few percentage points faster than prices. Health-care spending grows faster than income by a couple of percentage points. So we’re looking at linking to an index that grows less rapidly than health-care costs by three to four percentage points a year. Piled up over 10 years, and that’s a huge erosion of coverage. It’s vouchers, not premium support.
Clearly, Ryan’s plan bears a far greater resemblance to a voucher program than the premium support programs he looks to as back up for what he is selling.
We can have a debate as to whether we would be better off turning Medicare over to the private markets. While I believe it is an idea fraught with dangerous consequences to our future seniors (those who are not yet 55 years of age), an honest debate to discuss these different ideas cannot hurt.
However, when Ryan and friends continue to play the political game of blaming the President for misleading the public when it is, in fact, Ryan who is attempting to mislead, there will be no honest debate.
It is not the President who is demagoguing on this one – it is Paul Ryan.
By: Rick Ungar, The Policy Page, Forbes, June 5, 2011
GOP And Media Alert: Vouchercare Is Not Medicare
What’s in a name? A lot, the National Republican Congressional Committee obviously believes. Last week, the committee sent a letter demanding that a TV station stop running an ad declaring that the House Republican budget plan would “end Medicare.” This, the letter insisted, was a false claim: the plan would simply install a “new, sustainable version of Medicare.”
But Comcast, the station’s owner, rejected the demand — and rightly so. For Republicans are indeed seeking to dismantle Medicare as we know it, replacing it with a much worse program.
I’m seeing many attempts to shout down anyone making this obvious point, and not just from Republican politicians. For some reason, many commentators seem to believe that accurately describing what the G.O.P. is actually proposing amounts to demagoguery. But there’s nothing demagogic about telling the truth.
Start with the claim that the G.O.P. plan simply reforms Medicare rather than ending it. I’ll just quote the blogger Duncan Black, who summarizes this as saying that “when we replace the Marines with a pizza, we’ll call the pizza the Marines.” The point is that you can name the new program Medicare, but it’s an entirely different program — call it Vouchercare — that would offer nothing like the coverage that the elderly now receive. (Republicans get huffy when you call their plan a voucher scheme, but that’s exactly what it is.)
Medicare is a government-run insurance system that directly pays health-care providers. Vouchercare would cut checks to insurance companies instead. Specifically, the program would pay a fixed amount toward private health insurance — higher for the poor, lower for the rich, but not varying at all with the actual level of premiums. If you couldn’t afford a policy adequate for your needs, even with the voucher, that would be your problem.
And most seniors wouldn’t be able to afford adequate coverage. A Congressional Budget Office analysis found that to get coverage equivalent to what they have now, older Americans would have to pay vastly more out of pocket under the Paul Ryan plan than they would if Medicare as we know it was preserved. Based on the budget office estimates, the typical senior would end up paying around $6,000 more out of pocket in the plan’s first year of operation.
By the way, defenders of the G.O.P. plan often assert that it resembles other, less unpopular programs. For a while they claimed, falsely, that Vouchercare would be just like the coverage federal employees get. More recently, I’ve been seeing claims that Vouchercare would be just like the system created for Americans under 65 by last year’s health care reform — a fairly remarkable defense from a party that has denounced that reform as evil incarnate.
So let me make two points. First, Obamacare was very much a second-best plan, conditioned by perceived political realities. Most of the health reformers I know would have greatly preferred simply expanding Medicare to cover all Americans. Second, the Affordable Care Act is all about making health care, well, affordable, offering subsidies whose size is determined by the need to limit the share of their income that families spend on medical costs. Vouchercare, by contrast, would simply hand out vouchers of a fixed size, regardless of the actual cost of insurance. And these vouchers would be grossly inadequate.
But what about the claim that none of this matters, because Medicare as we know it is unsustainable? Nonsense.
Yes, Medicare has to get serious about cost control; it has to start saying no to expensive procedures with little or no medical benefits, it has to change the way it pays doctors and hospitals, and so on. And a number of reforms of that kind are, in fact, included in the Affordable Care Act. But with these changes it should be entirely possible to maintain a system that provides all older Americans with guaranteed essential health care.
Consider Canada, which has a national health insurance program, actually called Medicare, that is similar to the program we have for the elderly, but less open-ended and more cost-conscious. In 1970, Canada and the United States both spent about 7 percent of their G.D.P. on health care. Since then, as United States health spending has soared to 16 percent of G.D.P., Canadian spending has risen much more modestly, to only 10.5 percent of G.D.P. And while Canadian health care isn’t perfect, it’s not bad.
Canadian Medicare, then, looks sustainable; why can’t we do the same thing here? Well, you know the answer in the case of the Republicans: They don’t want to make Medicare sustainable, they want to destroy it under the guise of saving it.
So in voting for the House budget plan, Republicans voted to end Medicare. Saying that isn’t demagoguery, it’s just pointing out the truth.
By: Paul Krugman, Op-Ed Columnist, The New York Times, June 5, 2011
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June 6, 2011 Posted by raemd95 | Affordable Care Act, Budget, Conservatives, Consumers, Elections, GOP, Government, Health Care Costs, Health Reform, Ideologues, Ideology, Journalists, Lawmakers, Media, Medicare, Politics, Pundits, Republicans, Right Wing, Seniors, Under Insured, Uninsured, Voters | Canada, Canadian Health Care, Canadian Medicare, CBO, Comcast, Commentators, Demagoguery, Elderly, Government Health Insurance, House Republicans, Insurance Companies, Low Income, Medicare Vouchers, Out of Pocket xpenses, Politicians, Poor, Private Health Insurance, VoucherCare | Leave a comment