Bittersweet Victory

The senate finally has the 60 votes it needs to avoid a filibuster from the increasingly ridiculous Republicans, who, for purely political reasons, have pulled out every trick in the book to obstruct health care reform. While this is certainly a good thing, my sentiments are mixed. On the one hand, health care will be extended to 31 million new people. On the other hand, Senator Reid's bill has way too many silly sweetheart deals, crazy payment schemes, and takes away the strongest lever for bringing down health care costs, i.e. the public option.

Some highlights of the "compromises" Democrats have made to get the bill passed:

• Nebraska's Ben Nelson was able to get extra Medicaid funding for his state. Reminds me of a 1st round draft pick petulantly holding out for a better contract.
• The ability for states to choose if their insurance exchange will pay for abortions.
• A two-tiered insurance system for people who want to have an abortion. I.e. you have to buy extra insurance in case you think you might want to have an abortion at some point. Ironically, the Catholic Church AND Pro-Choice both oppose this part of the bill.
• At least two national insurance providers chosen by the Office of Personnel Management, the same folks who run Congress' health plan.
• Higher penalties on "Cadillac" health plans excluding plans for people in high-risk jobs like police, firefighters, miners, and longshoremen.
• Higher penalties on the rich - 0.9% of income if you make $200K as an individual or $250K as a family.
• A tax on indoor tanning salons in lieu of a tax on plastic surgeons. I wonder if Beverly Hills has its own lobbyist.

All in all, I think this bill is necessary and it would be a disaster if it didn't pass in some form or another. Sadly, I think the forest is being lost for the trees - in my mind we have to pass health care reform to get three achieve three big outputs. 1) Cover as many people as possible. 2) Don't allow Insurance Companies to "cherry pick" customers. 3) Keep costs low by increasing competition and rewarding efficiency.