by John M. Curtis
(310) 204-8700

Copyright June 8, 2009
All Rights Reserved.

         Of all the battles President Barack Obama faces during the presidency, none is greater than pushing his version of national health care.  American public opinion has been buffeted by the most severe recession since the Great Depression.  Job losses have been staggering since Dec. 07, shedding 7 million and boosting national unemployment to 9.4%.  Barack promised to restore around 3 million jobs with his economic stimulus but, so far, unemployment continues to dismantle the nation’s jobs’ picture, threatening the economy’s long-term health.  Without reversing the current trend, unemployment could hit 10% by year’s end, creating more economic bad news and driving consumers into retreat.  It’s within this dismal backdrop that Barack tires to sell his national health care plan, linking it, whenever possible, to the nation’s economic recovery:  Most see it as an economic drain.

            Congressional Republicans bristled at Barack’s plan of making the congressional health plan available to average citizens.  They worry that an affordable government plan would put private health insurers out of business, something so ironic it defies logic.  Barack’s plan offers low deductibles and no exclusions, something inconceivable in the private insurance market.  High deductibles and excluding preexisting conditions allows private insurers to guarantee hefty profit margins.  Republicans like to rant about “government plans,” unless, of course, it involves their own insurance. They have no problem using Medicare, blasting, on the one hand, Obama’s plan as a European socialism designed to destroy quality American health care, while, on the other hand, gladly participating in the Medicare program.  Congressional Republicans already caved in to the insurance lobby.

            Working against Obama is a mounting budget deficit and national debt, in part caused by his $750 billion economic stimulus plan.  Federal Reserve Chairman Ben S. Bernanke warned Congress last week about growing budget deficits threatening economic recovery.  European central bankers, backed by German Chancellor Angela Merkel and French President Nicholas Sarkozy, have resisted the U.S. and British approach of printing more money to offset recession and a bank liquidity crisis.  “At a time when major government programs like Medicare and Medicaid are already on a path for fiscal insolvency, creating a brand new government program will no only worsen our long-term financial outlook but also negatively impact American families who enjoy the private coverage of their choice,” said a letter to Obama from all but one of Senate Finance Committee Republicans.

            Obama finds himself caught between a rock and a hard place:  Pushing his national health care plan at a time of national economic upheaval.   Apart from the fiscal madness of such a plan, the country has formidable national defense bills, unsure what the future holds for Iraq, Afghanistan, Iran, North Korea and the Israel-Palestine question.  “Democrats know that if they go to a totally partisan approach like the president has suggested they’re going to eat that the rest of their lives,” said Sen. Orin Hatch (R-Ut.), ranking member on the Finance Committee.  “I’ll be able to help them, but not with a public plan,” rejecting Democrats’ approach to national health care.  Hatch gladly supported former President George W. Bush’s Medicare Prescription Drug Part D plan, accelerating Medicare’s insolvency.  Hatch and other congressional Republicans see Obama’s plan as fiscal insanity.

            Obama’s plan offers average citizens the same government insurance as enjoyed by members of Congress.  He sees the government’s plan as forcing the insurance industry into healthy competition.  Republicans, on the other hands, see a new government plan as breaking the health insurance industry by offering a plan too good and cheap to pass over by ordinary workers.  If employees opt for the government plan, he wants employers to reimburse the government.  Republicans fear that if the government subsidizes national health insurance, it will destroy employer-based health plans.  “If individuals are not offered affordable choices, the use of a fallback public plan as a last resort plays a critical role,” said independently-minded Sen. Olympia Snow (R-Maine.), signaling she might back Obama’s plan.  Unlike Obama, most Democrats want a Medicare-like national plan.

            Barack faces an uphill battle pushing his version of national health care at a time of recession and growing budget deficits.  While he plans to wind down the Iraq War, he also plans to escalate the fight in Afghanistan, in effect, saving little to fund a national health insurance plan.  While 80 members of the Congressional Progressive Caucus—including Secretary of State Hillary Rodham Clinton—support a Medicare-like plan, there’s too much opposition within the GOP and Democratic Party for approval.  Barack’s health insurance plan threatens private insurers, forcing them to compete with a wholesale government plan.  New York Sen. Chuck Schumer (D-N.Y.) backs a compromise plan where a private insurers would administer the government’s program.   Most recognize the government’s fiscal straightjacket, preventing them from subsidizing health care for all Americans.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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