Friday, July 6, 2012

Politicians spin for a living.

You know the old joke: How do you tell if a politician is lying? Because their mouth is moving. Then there are the "shades" of lying called "spinning." You don't necessarily say something untrue, but you frame the statement in such a way as to make you look good and/or make the opposition look bad. Yes, sadly both sides do it.

Before popping some spin balloons, let's talk about some initials. Hereafter ACA will be used for the Affordable Care Act (Obamacare). CBO stands for the Congressional Budget Office. These folks are the non-partisan number-crunchers. Both sides agree that the CBO estimates as to cost--for any bill--are the numbers that matter. OK, with that let the spin-stopping begin!

1) "This is a government takeover of the health care system." Let's go to the Washington Post factchecker for this one [all emphasis is mine]:

"This snappy talking point is used by Republicans repeatedly to bash Obama's crowning legislative achievement, but it is simply not true. In fact, PolitiFact.com labeled this claim the 2010 "lie of the year," but that has not stopped lawmakers from making this claim. It will surely be heard again on the House floor during the repeal debate."

"In many ways, the health care law resembles the Massachusetts reform enacted in 2006 under then Gov. Mitt Romney. It builds on the existing private insurance system but adds requirements and incentives to ensure that most people have some form of health insurance."

"Under the new law, there is no government alternative to the private system--this was a potential provision that was dropped during the congressional tussle--but the number of people who qualify for the existing federal-state Medicaid program for the poor will be expanded. States (or the federal government) will run "exchanges" -- essentially marketplaces -- in which private insurers will sell insurance to individuals and small businesses, but this should mean more people will get private insurance, not fewer. Tax credits will also be offered to people who have trouble buying private insurance."

"Certainly, the law bolsters government regulation of the health care system, such as forcing insurance companies to no longer deny coverage to people who have existing medical conditions. People who currently do not have health insurance will be required to buy it. But the core of the health system in the United States will remain the existing private insurance market. So it in no way resembles the government-run health systems used in most industralized countries in the world."

Let's go to the Associated Press for our final two spins of the day:

2) "Obamacare is a job killer."

"THE FACTS: The CBO estimated in 2010 that the law would reduce the amount of labor used in the economy by roughly half a percent."

"But that's mostly because the law will give many people the opportunity to retire, stay at home with family or switch to part-time work, since they will be able to get health insurance more easily outside of their jobs. That voluntary retreat from the workforce, made possible by the law's benefits, is not the same as employers slashing jobs because of the law's costs, as Romney implies."

"The law's penalties on employers who don't provide health insurance might cause some companies to hire fewer low-wage workers or to hire more part-timers instead of full-time employees, the budget office said. But the main consequence would still be from more people choosing not to work."

"Apart from the budget office and other disinterested parties that study the law, each side in the debate uses research sponsored by interest groups, often slanted, to buttress its case. Romney cites a Chamber of Commerce online survey in which nearly three-quarters of respondents said the law would dampen their hiring."

"The chamber is a strong opponent of the law, having run ads against it. Its poll was conducted unscientifically and is therefore not a valid measure of business opinion."

And we conclude with a double-sided spin:

3) OBAMA: "If you're one of the more than 250 million Americans who already have health insurance, you will keep your health insurance. This law will only make it more secure and more affordable."

ROMNEY: "Obamacare also means that for up to 20 million Americans, they will lose the insurance they currently have, the insurance that they like and they want to keep."

"THE FACTS: Nothing in the law ensures that people happy with their policies now can keep them. Employers will continue to have the right to modify coverage or even drop it, and some are expected to do so as more insurance alternatives become available to the population under the law. Nor is there any guarantee that coverage will become cheaper, despite the subsidies that many people will get."

"Americans may well end up feeling more secure about their ability to obtain and keep coverage once insurance companies can no longer deny, terminate or charge more for coverage for those in poor health. But particular health insurance plans will have no guarantee of ironclad security. Much can change, including the cost."

"The non-partisan Congressional Budget Office has estimated that the number of workers getting employer-based coverage could drop by several million, as some workers choose new plans in the marketplace or as employers drop coverage altogether. Companies with more than 50 workers would have to pay a fine for terminating insurance, but in some cases that would be cost-effective for them."

"Obama's soothing words for those who are content with their current coverage have been heard before, rendered with different degrees of accuracy. He's said nothing in the law requires people to change their plans, true enough. But the law does not guarantee the status quo for anyone, either."

"So where does Romney come up with 20 million at risk of losing their current plans?"

"He does so by going with the worst-case scenario in the budget office's analysis. Researchers thought it most likely that employer coverage would decline by 3 to 5 million, but the range of possibilities was broad: It could go up by as much as 3 million or down by as much as 20 million."

Just to be clear, it's me speaking now not the AP. One might wonder, in light of item 3, why not just stay with what we have now since many of us are happy with our current health care? The simple answer is that 1) the cost of health care in the USA is growing at such a fast rate that it will soon become economically unsustainable and 2) we have somewhere between 30-50 million people uninsured. A great many of these uninsured are working, not the idle poor. Paying for their care through emergency rooms costs the average family an extra $1000/year in health care premiums.

But put aside the economic cost of the uninsured to the rest of us. We live in the only advanced nation on the planet where the majority of bankruptcies are caused by medical bills and the majority of those who go bankrupt have health insurance. I think we can do better than that because we are better than that.

More balloons to pop in the coming days. Here's a little research project to undertake if you're bored in the next couple of days. Who was the first U.S. president to sign a law requiring the purchase of health insurance? Hint: The answer is not Obama.

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