As most have reported the Health Care summit was a bit of a show, with both sides trying to push their agendas and no real bi-partisanship. This, being the Republicans first time with a national spotlight on their plans, allowed them to stand out. Even David Gergen recognized this.
In the end, there was one back and forth early on that got some news coverage. It was the “discussion” between the President and Lamar Alexander. Mr. Alexander stating that insurance costs would rise 14% and the President stating that they would drop 20%. Was this a simple disagreement? You can dig into the details behind the two numbers (FactCheck.org has it here). And almost all research you do you will bump into this statement in some way, “CBO said well over half of those buying individual policies would get government subsidies that would reduce their costs well below the premiums that would be charged for such policies under current law.” So does this prove the President’s point?
Only is so far as the raw numbers. And in this is the teachable moment, “get government subsidies that would reduce their costs.” Just where did that “government money” come from? Taxes on others, including Cadillac plans. This is simply redistribution of wealth, nothing else. You may agree with it but Paul Ryan was right that they are hiding socialist plans behind capitalist words and using tricks to hide the facts.
No matter how you read the numbers you need to also come away with this simple fact. They are both talking about insurance costs. Health care costs are not being reduced. The cost curve continues to go up. The only way to control costs of insurance is to control the costs of services. [Insert typical complaint about corporate profits here. L. Alexander put it in context... 100% of the profits from all Health Insurance would pay for 2 days of services.] You simply cannot create a edict to limit profits within a specific industry. Unless you take it over, which is again the single payer model with price controls.
Add to this that the subsidized government plans will continue to be funded from taxes on the private sector and on private health plans. This will cause the private plans to offer reduced coverage to compete in a unfair market. This will cause a larger and larger shift towards the public plans, destroying the private industry in just 5-10 years.
What this summit showed clearly is that Single Payer is the goal. This redistribution is intentional and was on full display during the summit. Paul Ryan put in well in the Summit that “there really is a difference between us. We do not think the government should be in control of all this.” He hits this point head-on on in an MSNBC interview.
