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Since that's the only plan we've got from them, Ezra Klein does a bit of compare and contrast between it and one of the cornerstones of the progressive approach to both healthcare reform and the budget.
If you want to understand why the budget debate so infuriates people who actually care about deficits?and, in particular, people who actually care about health-care spending?consider this: The central health-care reform in Paul Ryan's budget, the one that's got him so many plaudits for courage, would actually increase costs. The health-care reform that progressives have been pursuing for more than two years would cut them. And yet calling for Medicare to be privatized and voucherized is considered serious, while calling for a public option is considered tiresome. But let's go to the tape.Back during the health-care reform fight, the Congressional Budget Office looked at the likely effect of adding a public option that paid Medicare rates. "In total, a public plan based on Medicare rates would save $110 billion over 10 years," the agency concluded. Importantly, the savings would come because premiums would be lower. The basic mechanism here is not complicated: Just as you get better deals by shopping at a mega-retailer like Wal-Mart, you get better deals by working with a mega-insurer like Medicare. Size matters.
As for Ryan's plan, CBO’s take was just the opposite. "Under the proposal," they said, "most elderly people would pay more for their health care than they would pay under the current Medicare system." That is to say, health-care costs go up.
As Atrios always says, they really don't care about the deficit, those Republicans. It is, however, important to note that the Progressive Caucus has got some Very Serious People love, in the form of an editorial in The Economist for its real deficit-cutting measures in the People's Budget. Those measures include a public option.
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Spending caps in general are not great policy, but this one is particularly bad, capping total federal spending to 20.6 percent of gross domestic product (GDP), the average from 1970 to 2008. Yeah, 40 years ago, when the poputlation was smaller, the population of older Americans was much smaller, and before healthcare costs exploded.
It's unrealistic, and it's just not smart. On the "not smart" part, here's Steve Benen.
The CBPP published a detailed report on the proposed cap a couple of weeks ago, explaining that if it were to become law, policymakers would have no choice but to enforce devastating cuts in Medicare, Medicaid, and Social Security, as well as every other domestic priority.Ironically, Machin, whose depth of understanding on these issues appears to be less than an inch deep, said he supports the CAP Act but opposes cuts to Social Security and Medicare. In other words, Machin doesn't understand the effects of the very policy he's endorsing.
To a very real extent, the cap would be a straightjacket intended to prevent the government from responding to any challenges, foreign or domestic, for the foreseeable future. The "solution" doesn't even match the problem -- any credible evaluation of the fiscal issue shows the same truths: we lack the necessary resources to deal with a growing elderly population and escalating health care costs. How would a spending cap help this? It wouldn't.
It's an idea so dumb and so bad as to be laughable. So expect every damned ConservaDem who is thinking of running for reelection in the near future sign on.
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