The Winds of Reality
Sunday morning saw House Minority Leader Nancy Pelosi refusing to back down from David Gregory's
Meet the Press inquiryt about statements made in the past:
“I stand by what I said,” the California Democrat told anchor David Gregory on NBC’s “Meet the Press,” responding to two old interviews — one from 2009 and one from 2010 — in which she said that if individuals liked their existing health insurance policies, they could keep them, and that the Affordable Care Act needs to pass in order for the public to see what’s in the bill.
Pelosi’s appearance on the widely watched Sunday talk show comes at a critical time for Democrats, who are being accused of breaking promises to constituents as millions have received notices that their old insurance plans have been canceled because they don’t comport to the new standards of Obamacare, and the enrollment website HealthCare.gov has been riddled with glitches that have prevented those with canceled policies from easily shopping for new ones.
(Dumain)
And while that tone might seem a bit defiant in the wake of the president's retreat, the reality is that the former House Speaker is standing the line where Obama cannot.
The reality, as
Dean Baker noted is the president did not lie about keeping health plans. The political quandary, of course, is that this detail doesn't really matter.
President Obama has been getting a lot of grief in the last few weeks over his pledge that with the Affordable Care Act (ACA) in place, people would be able to keep their insurance if they like it. The media have been filled with stories about people across the country who are having their insurance policies terminated, ostensibly because they did not meet the requirements of the ACA. While this has led many to say that Obama was lying, there is much less here than meets the eye.
First, it is important to note that the ACA grand-fathered all the individual policies that were in place at the time the law was enacted. This means that the plans in effect at the time that President Obama was pushing the bill could still be offered even if they did not meet all the standards laid out in the ACA.
The plans being terminated because they don’t meet the minimal standards were all plans that insurers introduced after the passage of the ACA. Insurers introduced these plans knowing that they would not meet the standards that would come into effect in 2014. Insurers may not have informed their clients at the time they sold these plans that they would not be available after 2014 because they had designed a plan that did not comply with the ACA.
However if the insurers didn’t tell their clients that the new plans would only be available for a short period of time, the blame would seem to rest with the insurance companies, not the ACA. After all, President Obama did not promise people that he would keep insurers from developing new plans that will not comply with the provisions of the ACA.
In addition to the new plans that were created that did not comply with the terms of the ACA, there have been complaints that the grandfathering was too strict. For example, insurers can only raise their premiums or deductibles by a small amount above the rate of medical inflation. As a result, many of the plans in existence at the time of the ACA are losing their grandfathered status.
In this case also it is wrong to view the insurers as passive actors who are being forced to stop offering plans because of the ACA. The price increases charged by insurers are not events outside of the control of insurers. If an insurer offers a plan which has many committed buyers, then presumably it would be able to structure its changes in ways that are consistent with the ACA. If it decides not to do so, this is presumably because the insurer has decided that it is not interested in continuing to offer the plan.
As a practical matter, there are many plans that insurers will opt to drop for market reasons that may or may not have anything to do with the ACA. It’s hard to see how this could be viewed as a violation of President Obama’s pledge. After all, insurers change and drop plans all the time. Did people who heard Obama’s pledge understand it to mean that insurers would no longer have this option once the ACA passed?
The reality is that the political discourse is seeking to blame the White House for calculated decisions made by private sector executives. The political problem is that people—consumers, voters, media—are running with the compressed narrative because it is more spectacular. As Baker notes:
On closer inspection, the claim that President Obama lied in saying that people could keep their insurance looks like another Fox News special.
This is the simple reality.
There is also, however, a
human reality.
Jason Linkins reminds:
But the funny thing about everyone who's since reduced this whole idea to "Obama's healthcare law is exactly like that time President George W. Bush and his administration failed to respond to a disaster that killed many hundreds of people," is that they are also right. Obama will pay the same personal cost over the Affordable Care Act's bungled rollout as Bush did for his Katrina response. Which is to say, no cost at all.
I don't think people actually realize just how toothless the whole "Obama's Katrina" metaphor really is. Yes, it's pretty exciting to have so many people finally admit that Bush's Katrina response was a bad thing. But what are they really saying? Basically, this: "Oh, man, if things keep going the way they're going, President Obama runs the risk of ending up a super-wealthy American celebrity who will want for nothing and whose family will always have health insurance." I've said this before, but I will happily roll out a crappy website that everyone hates if I could get the same deal.
For me, the promulgation of an "Obama's Katrina" metaphor firmly underscores the basic lack of real stakes involved for all of the people having that conversation. Obama is going to live well and without concern for the rest of his life. The vast majority of the lawmakers involved in the ongoing debate over the matter will as well. So will most of the pundits currently batting this meme back and forth. They'll all be fine. Really, super fine, actually. They're going to have terrific, largely worry-free lives.
The people at the forefront of this argument don't have the same stakes as the people suffering for the politics:
A July 2009 study conducted by Families USA found that between January 2008 and December 2010, in the teeth of the economic downturn, over 44,000 Americans were receiving notice that they'd be losing their health insurance every week. The same people breaking story after story about those losing their coverage now had better things to do back when it really mattered. As with almost any story that we could tell about the rampant, constant, tragic economic insecurity of the average American, it only seems to swell up as a Thing That Matters when such plight can play a role in the Beltway parlor game of who's winning and who's losing.
That's what makes the whole "Obama's Katrina" construction such a multi-layer insult to normal people. It makes the assumption that Bush actually suffered some real material loss in the hurricane that hit New Orleans. He didn't. It further assumes that some similar hardship is coming to Obama's doorstep. This is only true if we define "hardship" as "no hardship at all." It glibly trivializes the real people who have suffered in both instances -- those who suffered some sort of devastation in the Gulf region, or those who have been dealt a hard blow in the insurance market. Finally, it only underscores the wholly transient nature of the media's concern for the welfare of ordinary people. If their suffering can't be translated into a telenovela about the electoral troubles of affluent political celebrities, it doesn't merit coverage.
At this point, I wouldn't be surprised if Republicans started pushing for single-payer just so they could complain when the Democrats took them up on the offer. Which is, in truth, about how absurd this whole situation seems. But, hey, what's a bit of human suffering here and there compared to the
superficial gratification so important to our neighbors for whom truth and reality are simply insufficient.
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Notes:
Dumain, Emma. "Pelosi Dismisses Obamacare Defections, Defends Statements". 218. November 17, 2013. Blogs.RollCall.com. November 17, 2013. http://blogs.rollcall.com/218/pelosi-dismisses-obamacare-defections-defends-statements/
Baker, Dean. "No, Obama didn’t lie to you about your health care plan". Salon. November 15, 2013. Salon.com. November 17, 2013. http://www.salon.com/2013/11/15/no_obama_didnt_lie_to_you_about_your_health_care_plan_partner/
Linkins, Jason. "So, About That Whole 'Obama's Katrina' Thing". The Huffington Post. November 15, 2013. HuffingtonPost.com. November 15, 2013. http://www.huffingtonpost.com/2013/11/15/obamacare-hurricane-katrina_n_4283628.html