Berkeley, Calif.—A strike of more than 450 workers in one of the largest foundries on the west coast brought production to a halt Sunday night, at Pacific Steel Castings. The work stoppage, which began at midnight, has continued with round-the-clock picketing at the factory gates in West Berkeley.
Local 164B of the Glass, Molders, Pottery, Plastics and Allied Workers International Union (GMP) has been negotiating a new labor agreement at Pacific Steel for several months. The old agreement expired on Sunday night.
The strike was caused by demands from the company’s owners for concessions and takeaway proposals in contract negotiations. Those include:
requiring workers to pay at least 20% of the cost of their medical insurance, amounting to about $300 per month per employee.
a wage freeze for the first two years of the agreement, and tiny raises after that.
eliminating the ability of workers to use their seniority to bid for overtime, allowing criteria including speedup, discrimination and favoritism.
Striking Pacific Steel Castings workers on Berkeley's new picket line, outside their foundry on Tuesday, March 22, 2011. (Photo by David Bacon)
“All eight other foundries in the Bay Area have agreed to a fair contract,” said Ignacio De La Fuente, GMP international vice-president. “Workers at Pacific Steel haven’t had a raise in the last two years, in order to help the company pay for increases in health plan costs. Pacific Steel is now alone among the rest in trying to make its workers give back $300 a month.”
The $300/month would mean an approximately 10 percent cut in wages for most workers at the foundry.
Joel Soto, a member of the union’s negotiating committee, has worked eight years at Pacific Steel, and has a wife, 2-year-old child and another on the way. Soto said, “We’ve been trying to save money for a house. If we have to give up $300 a month, we’ll have to continue renting. My wife and I both support our parents, and that $300 cut is what we’re able to give them now that they’re old. And with my wife pregnant, we can’t do without that medical care.”
Benito Navarro has 10 years at the foundry, and a wife and son. “That $300 is what I pay for my car to get to work. I’m the only one in my family working, so if we don’t have that money, I’ll have to give up the car. But I’d rather eat than drive.”
On both Monday and Tuesday dozens of Berkeley police, with helmets and face shields, shoved and hit strikers as they attempted to help the company bring trucks full of castings out of its struck facility. On Tuesday, one striker, Norma Garcia, who is seven months pregnant, was struck in the abdomen and taken to a hospital.
“It is inexcusable that Berkeley is spending precious municipal resources on providing protection for this business, and opening the city to liability through these unprovoked actions by police against strikers,” said De La Fuente.
“That violence isn’t necessary,” added Soto. “We’re just struggling for our rights. I wouldn’t be so surprised to see this in other cities, but Berkeley?” Another worker showed the swelling on his arm he said was caused by a blow from a police baton.
Workers feel additionally betrayed by the company because they and their union testified before the Berkeley City Council three years ago. They urged the city to draft environmental regulations that would allow the foundry to continue operating while installing needed pollution control equipment.
Pacific Steel Casting Co. is a privately held corporation, the third-largest steel foundry in the United States. Its large corporate customers include vehicle manufacturers, like Petebilt Corp., and big oil companies, including BARCO. The company has been very productive in recent years, despite the recession. It chose not to comment.
About the Author: David Bacon is writer, photographer and former union organizer. He is the author of Illegal People: How Globalization Creates Migration and Criminalizes Immigrants (2008), Communities Without Borders (2006), and The Children of NAFTA: Labor Wars on the US/Mexico Border (2004). His website is at dbacon.igc.org.
This Blog Originally Appeared In These Times on March 23, 2011. Reprinted with Permission.
A Massachusetts court yesterday blocked premium increases—some as high as 40 percent—sought by six state health insurers. The action by the Suffolk Superior Court was the second time the insurance companies’ bid to boost rates was rejected. The state Division of Insurance rejected the rate hikes last month, calling them “excessive.”
The insurance companies then filed suit claiming the state has no authority to block the premium increases and sought an injunction to prevent the state from regulating premiums until the suit comes to trial. The judge rejected the request.
In an interview with the Boston Globe, Gov. Deval Patrick (D) praised the court’s decision.
Unless insurers can give us a good reason, when everything else is flat, that they deserve 20 percent, 30 percent and in some cases 40 percent increases, they’re going to be denied.
The judge said the Massachusetts companies must exhaust all their administrative appeals within the Insurance Division before the suit over the state’s ability to regulate premium costs can go forward.
The case is drawing national attention because, in 2006, Massachusetts passed a health care reform law that has several similar provisions to the recently enacted national health care reform law, including regulating premium increases.
In February, when Anthem Blue Cross in California announced it was raising premiums by as much as 39 percent, Secretary of Health and Human Services Kathleen Sebelius said, “Too many Americans are at the whim of private, for-profit insurance companies.”
Anthem Blue Cross’ parent company, WellPoint, posted $4.9 billion in profits in 2009. Sebelius said health insurance companies like WellPoint “are raking in billions in profits each year, while policyholders struggle to make ends meet in this tough economy.” In a letter to Anthem President Leslie Margolin, she demanded the company provide justification for the increases.
The extraordinary increases are up to 15 times faster than inflation. Your company’s strong financial position makes these rate increases even more difficult to understand.
Following public outcry, the company agreed to postpone the rate hikes until May, pending a review by an outside actuary appointed by the state insurance commissioner.
*This article originally appeared in AFL-CIO on April 13, 2010. Reprinted with permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. I came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. When my collar was still blue, I carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. I’ve also worked as roadie for a small-time country-rock band, sold my blood plasma and played an occasional game of poker to help pay the rent. You may have seen me at one of several hundred Grateful Dead shows. I was the one with longhair and the tie-dye. Still have the shirts, lost the hair.
The President signed the Senate health care bill into law at noon today.
This year, over 4 million small businesses will get tax credits worth up to 35% of their health care costs. This year, seniors will get $250 towards closing their coverage donut hole. This year, young Americans will be able to stay on their parent’s insurance plan until they are 26. This year, lifetime caps on benefits will be a thing of the past. And this year, the people with pre-existing conditions who can’t get health care now at any price will be able to buy into high-risk pools until the exchanges are set up in 2014.
But we are not done. Right after the House passed the health care bill on Sunday, they passed a package of improvements that now head to the Senate for an up-or-down vote.
The fixes heading to the Senate are mostly focused on making health care affordable to middle class families.
First, the package vastly improves the excise tax on “Cadillac” insurance plans, raising the threshold at which a plan will be affected to $10,200 for individual plans and $27,500 for family coverage. It also delays the implementation of the tax until 2018. As a result, the burden on middle tax families will be dramatically reduced.
To make up for the loss in revenue, the fixes broaden the Medicare payroll tax on on rich investors, taxing net investment income for those who make more than $250,000 per year.
And second, the package increases the subsidies available in the exchanges for middle class families and lowers their cost sharing. With the package, a lower percentage of a family’s income will be spent on health care costs – both premiums and out of pocket.
And there are more provisions in the package that would help broad swaths of the American public:
The package fully closes the donut hole for seniors over time
It freezes Medicare Advantage overpayments to private insurers and requires private insurers to pay 85% of money in to benefits in Medicare Advantage, to match the levels for all insurance plans in the health care bill
It strikes the deals Senators like Ben Nelson received and replaces them with increased Medicaid funding to all states
And it funds student loans for millions of young Americans
The Senate, after a string of favorable parliamentary rulings, is expected to take up the improvements under budget reconciliation rules today, with the goal of a final vote at the end of this week before the Easter recess.
About the Author: Jason Rosenbaumis a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.
Facing a sharp rise in costs, Pennsylvania has almost doubled the monthly bill for a state health insurance program for poor people who do not qualify for Medicaid and are on a waiting list for a less costly option.
On March 1, the cost of the plan rose to about $600 a month, up from $313 a month, for the roughly 2,400 state residents on the waiting list.
…
Established in 2002, Pennsylvania’s state insurance program, called AdultBasic, covers adults ages 19 to 65 with incomes lower than twice the federal poverty level, or about $21,672 for a single person, at a cost to participants of about $36 per month. About 39,000 people are enrolled in AdultBasic.
About 390,000 other people are on a waiting list to join the AdultBasic program. While they wait, the state gives them the option to pay for the same insurance at a higher rate. It is the cost for members of the waiting list that rose on March 1 to about $600 a month.
Health reform solves this problem.
For families who make 133% of the Federal Poverty Level or less – about $24,000 per year – health reform would allow them to get on Medicaid. Those families who make more than that – up to 400% of the FPL or about $73,000 per year – will be able to purchase heavily subsidized insurance in the Exchanges.
For families making between 133% FPL and 200% FPL ($24,000 – $36,000 per year) – the people affected by Pennsylvania’s rate increase above – their average cost for insurance, both premiums and out of pocket, will be [pdf] around $63 per month for families at 133% up to $244 per month for families at 200%.
Seniors who hit the coverage gap in their Medicare prescription drug plans and must use their own money to buy drugs are facing price increases that are far outpacing inflation, a new study finds.
According to the Kaiser Family Foundation, prices paid by enrollees in standalone Part D plans who enter the coverage gap increased 5 percent or more since January 2009 for half of 10 brand-name drugs most commonly used by seniors. That’s almost twice the rate of inflation over the same period.
For example, the price of Actonel, a treatment for osteoporosis, increased 8 percent, from $91 per month in 2009 to $98 per month in 2010. Meanwhile, the prices for both Aricept, an Alzheimer’s medication, and Plavix, a drug used to prevent blood clots, both increased by 7 percent during the same period. Aricept’s prices rose from $184 to $198 while Plavix’s rose from $142 to $152. Lipitor, a cholesterol medication, was the only drug surveyed that decreased in price, from slightly more than $86 to just under $86 per month.
The rising prices are part of a longer is sufficient longer-term trend. Between January 2006 and January 2010, the analysis showed, prices of drugs bought by seniors who hit the coverage gap increased 20 to 25 percent for Lipitor, Plavix, Nexium, a drug for acid-reflux, and Lexapro, a medication for depression and anxiety; 39 percent for Actonel, and 41 percent for Aricept. Over the same period, inflation has increased 9.2 percent while prices for medical care have surged 16.1 percent.
Health reform solves this problem, too. Immediately after passage of the bill, seniors will get immediate relief that starts closing that coverage gap. The gap will be completely closed as health reform is implemented.
Prohibit pre-existing condition exclusions for children in all new plans;
Provide immediate access to insurance for uninsured Americans who are uninsured because of a pre-existing condition through a temporary high-risk pool; (this will help with the Pennsylvania situation as well)
Prohibit dropping people from coverage when they get sick in all individual plans;
Offer tax credits to small businesses to purchase coverage;
Eliminate lifetime limits and restrictive annual limits on benefits in all plans;
Require plans to cover an enrollee’s dependent children until age 26;
Require new plans to cover preventive services and immunizations without cost-sharing;
Ensure consumers have access to an effective internal and external appeals process to appeal new insurance plan decisions;
Require premium rebates to enrollees from insurers with high administrative expenditures and require public disclosure of the percent of premiums applied to overhead costs.
Reform will also help people like 11-year-old Marcelas Owens, who’s mother died because she didn’t have insurance:
And Matt Masterson’s son, who’s pre-existing condition makes him virtually uninsurable, a near death sentence as soon as he’s kicked of his father’s insurance plan in a few years:
Finally, today, the House Energy and Commerce Committee came out with numbers on how reform will help people in every Congressional district.
The vote is coming in the House. It’s likely to take place this weekend. Without reform, none of these problems get solved, and the insurance companies will get to continue their business practices of denying care and carving out coverage while making record profits.
About the Author: Jason Rosenbaumis a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.
The White House Task Force on the Middle Class today announced several initiatives it says will help middle-class families afford soaring child care costs, care for their aging relatives, cope with the challenge of saving for retirement and pay for their children’s college tuition.
President Obama says the measures will help “ease the burdens on middle-class families who are struggling in this economy, and provide the help they need to get ahead.” The White House says Obama will discuss these and other vital middle-class issues, including job creation and health care in his State of the Union address Wednesday.
The Task Force chairman, Vice President Joe Biden, says the initiatives were developed after a series of meetings during the past year with working families around the country and at the White House.
Every day, middle-class families go to work and help make this country great. For a year, our Task Force has been hearing that they are struggling with soaring costs and squeezed family budgets. These common sense initiatives will help these families cope with these challenges.
The initiatives include:
•Nearly doubling the Child and Dependent Care Tax Credit for middle-class families making under $85,000 a year and a $1.6 billion increase in child care funding for families struggling to enter the middle class.
•Limiting a student’s federal loan payments to 10 percent of his or her income above a basic living allowance.
•Creating a system of automatic workplace IRAs, requiring all employers to give the option for employees to enroll in a direct-deposit IRA.
•Expanding tax credits to match retirement savings and enacting new safeguards to protect retirement savings.
•Expanding support for families balancing work with caring for elderly relatives.
Click here for a fact sheet with more detailed information on each initiative.
The Task Force has given working families and union leaders the opportunity to outline their concerns and offer recommendations on ways to make the economy work for working families.
United Steelworkers President Leo W. Gerard emphasized the need for creation of good green jobs. Members of Communications Workers of America (CWA) Local 730 in St. Cloud. Minn., told Biden and the Task Force that the Employee Free Choice Act was vital to allow workers to bargain for jobs with good wages and benefits. AFL-CIO Secretary-Treasurer Liz Shuler urged the Task Force to make fixing manufacturing a priority in building a stronger economy.
Visit the White House Task Force on the Middle Class website here.
The White House Task Force on the Middle Class today announced several initiatives it says will help middle-class families afford soaring child care costs, care for their aging relatives, cope with the challenge of saving for retirement and pay for their children’s college tuition.
President Obama says the measures will help “ease the burdens on middle-class families who are struggling in this economy, and provide the help they need to get ahead.” The White House says Obama will discuss these and other vital middle-class issues, including job creation and health care in his State of the Union address Wednesday.
The Task Force chairman, Vice President Joe Biden, says the initiatives were developed after a series of meetings during the past year with working families around the country and at the White House.
Every day, middle-class families go to work and help make this country great. For a year, our Task Force has been hearing that they are struggling with soaring costs and squeezed family budgets. These common sense initiatives will help these families cope with these challenges.
The initiatives include:
•Nearly doubling the Child and Dependent Care Tax Credit for middle-class families making under $85,000 a year and a $1.6 billion increase in child care funding for families struggling to enter the middle class.
•Limiting a student’s federal loan payments to 10 percent of his or her income above a basic living allowance.
•Creating a system of automatic workplace IRAs, requiring all employers to give the option for employees to enroll in a direct-deposit IRA.
•Expanding tax credits to match retirement savings and enacting new safeguards to protect retirement savings.
•Expanding support for families balancing work with caring for elderly relatives.
Click here for a fact sheet with more detailed information on each initiative.
The Task Force has given working families and union leaders the opportunity to outline their concerns and offer recommendations on ways to make the economy work for working families.
United Steelworkers President Leo W. Gerard emphasized the need for creation of good green jobs. Members of Communications Workers of America (CWA) Local 730 in St. Cloud. Minn., told Biden and the Task Force that the Employee Free Choice Act was vital to allow workers to bargain for jobs with good wages and benefits. AFL-CIO Secretary-Treasurer Liz Shuler urged the Task Force to make fixing manufacturing a priority in building a stronger economy.
Visit the White House Task Force on the Middle Class website here.
*This article originally appeared in the AFL-CIO blog on January 25, 2009. Reprinted with permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. I came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. When my collar was still blue, I carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. I’ve also worked as roadie for a small-time country-rock band, sold my blood plasma and played an occasional game of poker to help pay the rent. You may have seen me at one of several hundred Grateful Dead shows. I was the one with longhair and the tie-dye. Still have the shirts, lost the hair.
As Washington grapples with the outcome of the election in Massachusetts this week, it’s important to remember one key thing: Congress can still pass historic legislation that will make health care a right, not a privilege, in the United States. While the procedural route may be different, Congress still can do what it intended to do before Tuesday. It can enact a comprehensive bill that will make good health care affordable to tens of millions of people who are uninsured or underinsured and end the practice of denying people coverage or charging people more for pre-existing conditions. It can end the specter of medical bankruptcy, provide free access to preventive care, and more. None of these historic achievements can be done through “incremental” reform, and failing to accomplish these goals would put the Democratic Party in profound political peril.
While it may seem appealing to carve up the many facets of reform into smaller bites, that won’t get the job done. Take, for example, the promise that has most resonated with the public: stopping insurance companies from denying coverage for preexisting conditions. You can’t do that without requiring everyone be covered because many people would wait to get covered until they needed treatment and that would drive premiums too high. But you can’t require people to get coverage without providing income-based subsidies to make coverage affordable. And you can’t raise the money for subsidies without finding savings in the system, like the proposed changes in Medicare, or raising new revenue. All that adds up to comprehensive reform.
The same logic applies to the other basic items Americans most want from reform, like relief from medical bankruptcy or stopping insurers from charging more to women or making the health insurance market work for small business.
At its heart, comprehensive reform is a simple guarantee that you will have access to good, affordable coverage whether you work for someone else, are self-employed, or are unemployed. The bills that have passed both houses of Congress achieve that goal through the same basic mechanisms: expanding Medicaid, establishing new health insurance marketplaces, providing income-based subsidies for buying regulated insurance within those marketplaces, extending tax credits to at least small businesses, and establishing some requirements for most businesses to offer coverage or pay for it. Both bills raise the money through changes in Medicare and new revenues. Taken together, that will mean that for the first time every American will have access to affordable health care coverage.
If we look at history, we see that once we have built such a foundation, Congress will improve on it. When Social Security was enacted, it left out major categories of workers and didn’t provide for surviving spouses or dependents. Those omissions got fixed later.
If we fail to pass reform or pass minor reforms that don’t really change anything, it will be at least 15 years before the nation tries again. If we enact the agreed upon reforms, Congress will continue to debate how to improve upon what’s in place. And it will defend the new right to health care against those who would tear it down – just like Republicans have been trying and failing to privatize Social Security since it was first passed.
This isn’t just a policy question; it’s a political one. Republicans are counting on stopping the Democratic agenda so that Democrats will fail and voters will give the Republicans another chance. The Massachusetts election demonstrated that Democrats need to deliver on the promise of change. After a year of getting within sight of the finish line on comprehensive health care reform, the only choice from a policy and political perspective is to get the job done.
As the national campaign manager of the nation’s biggest progressive health care campaign – one that has organized hundreds of thousands of people in all 50 states and spent $45 million fighting for reforms that go well beyond what now seems possible – I understand as well as anyone how frustrating progressives find this situation. But we should never lose sight of what Dr. King said about health care in this nation: “Of all the forms of injustice, inequality in health care is the most shocking and inhumane.” Congress is on the brink of dramatically reducing this inequality even though the legislation has many imperfections.
So on behalf of the army of activists who have fought with us for more than a year, our message to Democrats in the House and Senate is simple: pick yourselves up, dust yourselves off, and enact the compromise plan you were set to pass before the Massachusetts election. You still have big majorities in both houses. Because of Republican obstructionism, you’ll need to use different procedures to get the job done. But just do it! And know that each and every year you will have saved tens of thousands of lives, rescued hundreds of thousands of families from medical bankruptcy, and proved to America you are up to the challenge of building a new and better future for our children and the generations that follow.
*This article originally appeared in The Huffington Post on January 22, 2010. Reprinted with permission.
This holiday season, many of you will discuss health care with loved ones.
That’s because health care is a family issue. Families struggle together, we care for one another when we’re sick, and we face down financial hardship as one.
After a near-catastrophic economic downturn, Americans everywhere face tough choices on where to spend their money. After paying for utilities, car insurance, housing and food, there’s not always enough to afford medicine, doctor visits or dental exams.
Members of Congress use personal stories from constituents to decide their votes and illustrate why certain provisions are important. Despite the health bills passing the House and the Senate, Congress will be required to vote one last time on the bill that comes out of conference. Join us in sharing your story and helping us push for the strongest bill possible.
*This post originally appeared in SEIU Blog on December 28, 2009. Reprinted with permission from the author.
In a third-quarter earnings conference call in late October, officials at Aetna announced that in an effort to improve on a less-than-anticipated profit margin in 2009, they would be raising prices on their consumers in 2010. The insurance giant predicted that the company would subsequently lose between 300,000 and 350,000 members next year from its national account as well as another 300,000 from smaller group accounts.
…
Aetna’s decision to downsize the number of clients in favor of higher premiums is, as one industry analyst told American Medical News, a “pretty candid” admission. It also reflects the major concerns offered by health care reform proponents and supporters of a public option for insurance coverage, who insist that the private health insurance industry is too consumed with the bottom line. A government-run plan would operate solely off its members’ premiums.
Aetna is saying they want to make more money on each person they insure to please Wall Street, so they are raising prices. It doesn’t matter to them if this action causes them to lose some less profitable customers, customers that actually use their health care benefits. In fact, they welcome it. They are more than happy to let these people be priced out of the market, go uninsured, go bankrupt, or lose their lives. These people are not bringing in enough money for Aetna, so Aetna would rather not have them as a customer.
Aetna is following the insurance company playbook as articulated last year by Wellpoint CEO Angela Braly when she said, “We will not sacrifice profitability for membership.” In other words, the insurance companies won’t sell health coverage to more people if it means they will make less money on each person.
They don’t care about coverage, they just care about profits. This is exactly why we must have a public health insurance option.
Health reform without a public option will not not work. The insurance industry playbook would still be on the table, and they would still find ways to cut people for more profit. Even with laws against insurance companies denying care, they would still find ways to do it.
The CBO confirms this with their analysis. Even with laws making it illegal for insurance companies to deny care, the CBO found that while the public option would keep down insurance premiums overall, it would attract less-profitable customers that the insurance companies don’t want and would refuse to insure.
There is no substitute for a public health insurance option that’s national and available everywhere on day one – no triggers. And indeed, the bill on the table in the Senate gets us there.
To those moderates who are holding out, don’t let the perfect be the enemy of the good. There may be some things in the Senate bill you don’t agree with, but that’s no reason to deny this country the reform it needs and wants. It’s time to allow this bill to come up for a fair, majority vote in the Senate.
*This post originally appeared in SEIU Blog on December 9, 2009. Reprinted with permission from the author.
About the Author: Jason Rosenbaumis a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.
Union leaders joined President Obama in hailing the historic, if narrow, passage of major health reform legislation in the House this weekend.
The bill “is a fiscally responsible bill that will cover 96 percent of Americans, end insurance company discrimination and denials of care and equip health care providers with the tools they need to lower costs for families and the country as a whole,” AFL-CIO President Richard Trumka said. “The bill…does not attempt to finance reform on the backs of the working middle class... But we still have a long way to go.”
Speaker of the House Nancy Pelosi (D-Calif.) and other House Democrats gather for a press conference after the House of Representatives passed the healthcare reform bill 220 to 215 late Saturday night. (Photo by Brendan Smialowski/Getty Images)
Indeed, as this blog and other observers point out, the real sticking point in the Senate probably won’t be the public option or even the extreme anti-abortion language passed in the House, but the critical issue of how to pay for the legislation. Will it be by taxing the rich, as the House does, or burdening the middle-class with new taxes and costs? That’s what union advocates and the Congerssional Joint Committee on Taxation say will happen as a result of the Senate’s tax on insurers that offer high-cost plans.
The conventional wisdom in Washington is, as the AP put it Sunday, that the “millionaire’s tax is a non-starter” in the Senate, but grassroots activism by unions, public opinion and the strong backing of the AARP and AMA for the House version all add political clout to the drive to keep the House payment approach alive.
Over at the Daily Beast,Matt Yglesias points out the hurdles to reconciling two starkly different versions of paying for the legislation:
The merits of the two approaches aside, the work of a political compromise will be extremely difficult. The House’s approach seems to have almost no support in the Senate, and wasn’t even seriously considered by members of the Senate Finance Committee. Conversely, the Senate’s approach is opposed by labor unions, and over 150 House Democrats have signed a letter saying they also oppose it. The party leadership, simply put, has very little margin for error when it comes to trying to sort this issue out. A handful of defections from the 219 Democrats who voted in favor of reform last night could probably be made up, but not much more than a handful. And in the Senate, it essentially required Democratic unanimity to pass bills in the face of routine filibustering and solid GOP opposition.
There hasn’t been much rancor around this issue, simply because it hasn’t been in the public view. But it will be soon. How can health-care reform pass if it’s financed by a mechanism that key moderate senators have dubbed a “non-starter?” Alternatively, how can you imagine a universal health-care bill passing with no Republican support over the opposition of the AFL-CIO? Comprehensive health-care reform is closer than ever to happening, but it’s still far from obvious that it will happen.
On top of that important issue, the five-vote majority was pulled together in part by securing the votes of some of the 64 ConservaDems in support of an amendment barring any tax dollars even indirectly subsidizing abortion. It’s the biggest rollback of a woman’s right to choose in decades, and one that could hit low-income women the hardest.
It’s a poison pill that Democrats in individual, GOP-leaning districts had to swallow, but not one that most Democratic Senators can easily accept if they want to avoid primary challenges or low turnout from disaffected Democratic voters in state-wide races. The assumption in Washington is that somehow the hard-line stance in the House bill will be finessed in the Senate, and either defanged or removed in conference.
But some journalists and bloggers say, the hard-line abortion amendment could have been significantly weakened, at least, if pro-choice groups had lobbied harder and more effectively—and if House leadership had taken more seriously the concerns of pro-life Democrats and the U.S. Conference of Catholic Bishops as a roadblock to reform.
Now millions of low-income women who might seek to buy insurance with a taxpayer subsidy could find themselves denied the right to access medical care and legally terminate a pregnancy. Pro-life forces were justifiably cheering at this news. But it’s clearly at odds with the spirit and intent of health reform, let alone the Democratic Party platform.
Equally troubling to reform advocates is the slow-down in the Senate and the ominous signals that Sen. Reid sent last week hinting that a final vote in the Senate might not take place until early next year. The Senate bill has been in a form of limbo over the last two weeks; activists believe this impasse needs to be challenged with more grass-roots pressure.
Nor surprisingly, the inside-the-Beltway mentality that declared the public option dead a month ago is still contending that you need 60 votes to pass a bill with a public option. In fact, progressive strategists say, you just need 60 votes to stop a filibuster, and 51 votes using budget reconciliation to pass a bill if cloture can’t be reached. Here’s how the center-right AP’s news analysis frames the issue:
If a government plan is part of the deal, “as a matter of conscience, I will not allow this bill to come to a final vote,” said Sen. Joe Lieberman, the Connecticut independent whose vote Democrats need to overcome GOP filibusters.
“The House bill is dead on arrival in the Senate,” Sen. Lindsey Graham, R-S.C., said dismissively.
No floor debate scheduled
Democrats did not line up to challenge him. Senate Majority Leader Harry Reid, D-Nev., has yet to schedule floor debate and hinted last week that senators may not be able to finish health care this year.
Nonetheless, the House vote provided an important lesson in how to succeed with less-than-perfect party unity, and one that Senate Democrats may be able to adapt. House Democrats overcame their own divisions and broke an impasse that threatened the bill after liberals grudgingly accepted tougher restrictions on abortion funding, as abortion opponents demanded.
The lesson drawn from the House action by the AP’s analyst is: do what’s needed to compromise with your party’s right wing. On the Senate side, that would mean abandoning the public option in practice, and perhaps keeping it in name only with a “trigger” provision that could take years to put in place as 45,000 people die annually because of a lack of health insurance.
SEIU President Andy Stern drew a different lesson from the House victory, as a statement from the union said:
“Real leadership does not govern out of fear but looks at the obstacles facing our country and pushes for bold solutions that live up to our country’s promise. Like the creation of Medicare and Social Security, today’s historic passage of the Affordable Health Choices Act by the House of Representatives will be remembered as a pinnacle moment when Congress showed the courage necessary to live up to our American ideals,” Stern said.
SEIU’s members have been on the front lines for more than a decade in the fight to reach this historic moment. Its two point one million members – nurses, doctors, janitors, nursing home workers, child care providers – spent these years knocking on doors, making tens of thousands of phone calls, and donating their time and money to make sure Congress delivered meaningful reform.
Stern continued, “The Affordable Health Choices Act guarantees quality health insurance is affordable and that the insurance industry can no longer stand in the way of people getting the care they need at a price they can afford…
“We heard enough of ‘No We Can’t’ from the insurance industry, special interests and Republicans today and we will not let them stand in the way of a healthcare system that Americans have fought for nearly a century to realize.”
Stern emphasized that it is “now up to the Senate to lead with the same audacity to guarantee that meaningful health insurance reform does in fact happen this year.”
This article originally appeared in Working In These Times on November 9, 2009. Reprinted with permission from the author.
About the Author: Art Levine, a contributing editor of The Washington Monthly, has written for Mother Jones, The American Prospect, The New Republic, The Atlantic, Slate.com, Salon.com and numerous other publications. He wrote the October 2007 In These Times cover story, “Unionbusting Confidential.” Levine is also the co-host of the “D’Antoni and Levine” show on BlogTalk Radio, every Thursday at 5:30 p.m. EST.
Over the next few days, I’ll be taking a closer look at the provisions on the House health care bill – H.R. 3962, the Affordable Health Care for America Act. As was the case when the original tri-committee bill was released, the House committees have a ton of fact sheets on the bill that are required reading for folks looking to learn more.
Overall, the House bill is a bill that takes on the insurance industry. Here’s how:
A Public Health Insurance Option
First and foremost, the House bill creates a public health insurance option, available in the new health care marketplace called the “Exchange,” that would compete directly with private insurance. The public option won’t have to worry about profits or stockholders, and because it is run by HHS, it will have huge bargaining clout to get good rates from providers. Overall, while the public option in the House bill won’t save taxpayers as much money as a public option based on Medicare rates, it will still save money according to the CBO.
Because of all that savings, and because the public option will have a mandate to provide health care to people, not maximize profit, it will be a strong competitor to private insurance, keeping prices down and attracting customers. Private insurance will be forced to compete or face losing their most profitable customer base – the individuals and small group customers who are in the Exchange from the start.
Insurance Industry Regulations
The House bill puts new regulations on the insurance industry to curb their bad practices.
The practice of rescission – terminating someone’s insurance plan because they get sick – would be outlawed immediately. Similarly, as soon as this bill is signed, lifetime caps on insurance coverage would be outlawed.
After the Exchange is set up in 2013, all insurers, not just the ones in the Exchange, will be barred from denying care for pre-existing conditions, charging more if your are a woman or sick, or employing annual benefits caps. They will have to cap out-of-pocket expenses at a standard level, keep administrative costs down to below 15%, and publicly disclose and justify their rate increases.
Medicare beneficiaries and the unemployed will benefit as well, with overpayment to private companies through Medicare eliminated and COBRA coverage extended until the Exchange is set up.
Finally, the House bill will eliminate the anti-trust exemption on health insurance companies, making it possible to finally prosecute them for their monopolistic practices.
Immediate Relief
The House bill also provides immediate relief for people at the mercy of the insurance industry by setting up an interim high risk pool open to people who have been uninsured for at least a few months or who have been denied insurance because of pre-existing conditions.
Though clearly not a long term solution, the high-risk pool, combined with the COBRA extensions mentioned above, would get people out from the trap the insurance industry has put them in until full reforms kick in.
Taking on Drug Companies
The House bill also gives us significant savings from drug companies, which according to the Washington Post would amount to between $125 and $150 billion in cuts to their profits.
It does this by eliminating the donut hole which forces seniors to pay unaffordable prices for prescription drugs, starting immediately and completely closing the hole by 2019. It also requires the Secretary of HHS to negotiate for better drug prices for Medicare and Medicaid, and makes it easier for Medicare Part D to offer free generic prescription drugs to enrollees.
Of course, some issues, like biologics (new drugs exempted from generic competition), are still unresolved.
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There’s a lot to talk about in the House bill – employer responsibility, fair financing, a whole host of other reforms that take effect immediately. Over the next few days I’ll talk about those. However, the overall thrust of the bill is clear – it takes on the insurance industry for consumers, strengthening care for folks without insurance, on the individual market, in small and large businesses, and on Medicare and Medicaid.
About the Author: Jason Rosenbaumis a writer and musician currently residing in Washington D.C. He is interested in the intersection of politics and culture, media consolidation issues, and making sense out of our foreign policy disasters. He currently works for Health Care for America Now and he is also the webmaster for The Seminal.
This article originally appeared in Health Care for America Now on October 29, 2009. Reprinted with permission from the author.
Berkeley, Calif.—A strike of more than 450 workers in one of the largest foundries on the west coast brought production to a halt Sunday night, at Pacific Steel Castings. The work stoppage, which began at midnight, has continued with round-the-clock picketing at the factory gates in West Berkeley.
A Massachusetts court yesterday blocked premium increases—some as high as 40 percent—sought by six state health insurers. The action by the Suffolk Superior Court was the second time the insurance companies’ bid to boost rates was rejected. The state Division of Insurance rejected the rate hikes last month, calling them “excessive.”
The President signed the Senate health care bill into law at noon today.
As Washington grapples with the outcome of the election in Massachusetts this week, it’s important to remember one key thing: Congress can still pass historic legislation that will make health care a right, not a privilege, in the United States. While the procedural route may be different, Congress still can do what it intended to do before Tuesday. It can enact a comprehensive bill that will make good health care affordable to tens of millions of people who are uninsured or underinsured and end the practice of denying people coverage or charging people more for pre-existing conditions. It can end the specter of medical bankruptcy, provide free access to preventive care, and more. None of these historic achievements can be done through “incremental” reform, and failing to accomplish these goals would put the Democratic Party in profound political peril.
After a near-catastrophic economic downturn, Americans everywhere face tough choices on where to spend their money. After paying for utilities, car insurance, housing and food, there’s not always enough to afford medicine, doctor visits or dental exams.
Union leaders joined President Obama in hailing the historic, if narrow, 
