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Paul Hogarth

Paul Hogarth

Posted: March 18, 2010 10:41 AM

Did Obama Kill the Public Option in July?

What's Your Reaction:

Congress will pass health care reform any day now, and it probably won't have a public option to hold private insurance accountable. Even though a version passed the House last November, and 51 Senators are on record saying they would vote for it. And while Democrats are at this point "damned if they do" and "damned if they don't" on passing a very unpopular bill, the public option consistently has strong support. But Majority Whip Dick Durbin said the Senate won't even vote on a public option unless the House puts it in the final legislation, and a few hours later Speaker Nancy Pelosi said that could not happen. President Obama has been justifiably slammed for not pushing hard enough for a public option, but the truth may be even worse than that. We know the White House cut a deal with hospitals and insurance companies last July on prescription drugs -- but as a New York Times reporter said this week, they also killed the public option. And given the public option's inexplicable fate, I have to believe the story.

On August 13th, David Kirkpatrick reported in the New York Times that contrary to public perception, President Obama was playing a much bigger role in shaping the health care bill. In meetings with Senator Max Baucus and lobbyists from Pharma, the White House was able to get their support for reform -- using Baucus' Finance Committee as a framework for the ultimate legislation.

"Several hospital lobbyists involved in the White House deals," he wrote, "said it was understood as a condition of their support that the final legislation would not include a government-run health plan [my emphasis]." Kirkpatrick went on to quote one of the industry lobbyists, Chip Kahn, who said: "We have an agreement with the White House that I'm very confident will be seen all the way through conference."

I don't remember that New York Times article, which no traditional media ever picked up on. Like most liberal bloggers, I was in Pittsburgh on August 13th for Netroots Nation. As happens at those four-day conferences, we were too overwhelmed to be reading the news -- but White House adviser Valerie Jarrett was there to assure us the president is on our side.

On March 15th, Ed Shultz of MSNBC had the Times' David Kirkpatrick on his show - who confirmed that Obama's backroom deal with the hospital and pharmaceutical industries last July included an agreement to kill the public option.

Others have written that Obama knew the public option is popular with his base, so he didn't want to be the one to kill it. He tried to make Senate Majority Leader Harry Reid the fall guy, but Reid wouldn't budge. Ultimately, the honor went to Joe Lieberman - who progressives despise already, and would proudly take the blame.

In other words, while Obama was still saying in September that he supports the public option (which kept us hopeful) - the President knew all along that it would never make it in the final bill. He never said he'd fight to include the public option, and repeatedly said he was "open" to other ways to achieve the same goal. But little did we know, the fix was in.

When the White House in December pressured Harry Reid to cave to Joe Lieberman's extortion - which I dubbed the "Day the Democrats Died" - my faith in Barack Obama was irreparably shattered. At this point, it became crystal clear to me this President would not push the change we can believe in -- that progressives would have to just do it themselves.

Which is why I've felt the work that the Progressive Change Campaign Committee and Howard Dean's Democracy for America has been so important. Democrats claim we "don't have the votes" for passing a public option, so the netroots had to prove them wrong - by organizing a "whip count" at www.whipcongress.com: get 51 Senators on record supporting a public option through reconciliation. It was the only pro-active thing to do.

And these efforts - with no active support from the Democratic Party leadership - helped everyday activists get involved in a meaningful way. But while the whip count was successful, two progressive Senators who have always championed the public option - Tom Harkin and Jay Rockefeller - would not commit to voting for it under reconciliation, when I assumed they'd be low-hanging fruit.

I can only come up with one reason -- the president didn't want the public option, and they wouldn't stand up to him. And now that we hear that Obama killed the public option in a back-room deal last July, it all makes sense. The netroots effort has now identified the votes in the Senate to pass a public option - but it doesn't matter. It won't happen.

Why is the public option such a big deal? Isn't it true that only about 5% of Americans would even be covered? But the issue was never about how many people would actually use it. Its mere existence would give teeth to all the parts of the bill that deal with private insurance -- such as a ban on pre-existing conditions. If these companies (which have proven they can't be trusted) have to deal with competition, it keeps them honest.

And we always knew the public option itself was not very exciting -- most of us wanted single payer, just like in all other Western industrialized nations. But single-payer was never considered -- it was dropped from the very start, leaving us with the public option as a compromise. If the Democrats had at least fought for single payer, I could be okay with not having a public option in the final bill. But instead, progressives were duped -- and the public option took on a great importance because it was our final concession.

At Daily Kos, a diarist argued yesterday that -- assuming all of this is true -- we don't know what Obama's motivations were in killing the public option. He could have made what was viewed as a pragmatic decision -- a "chess move" that turned out to be an abject failure. But it was precisely because they cut a deal behind closed doors that we'll never know. It's these kind of backroom deals that disempower progressive activists who deserve transparency.

In late December, I lamented on Beyond Chron that 2009 was the year change fell prey to backroom deals -- where the rich and powerful have undue influence. Never in my wildest dreams did I think my theory was so true. That Barack Obama - the community organizer from Chicago, the man who used to live three doors down from me in Hyde Park, the politician who endorsed single payer when he first ran for public office -- would go behind closed doors and kill the public option before we proved that we had the votes.

And the fact that none of us would know about it until nine months later is infuriating.

Paul Hogarth is the Managing Editor of Beyond Chron, San Francisco's Alternative Online Daily, where this piece was first published.

 

Follow Paul Hogarth on Twitter: www.twitter.com/paulhogarth

 
 
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04:04 PM on 03/29/2010
Now we have a heath care "reform" of Nixon, Mitt Romney and lately of George H W Bush. Who Obama is fooling? He is the best republican president since Teddy Roosevelt. For a real health care reform we need a real progressive president not a closet republican.
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Samalabear
10:23 AM on 03/19/2010
I remember the nasty little Obamabots right on this site during July attacking others for being outraged at what was coming out of the WH, specifically by Rahm. They called it just a trial balloon. It was a Friday, if I recall. By Monday the WH was backtracking, saying Rahm was wrong, Obama was backing the PO. The toying with the emotion of the American people in this long charade has been -- well, shameful is not a strong enough word for what it is. Even despicable is not strong enough.
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ProudLiberalDan
Standing up an fighting conservatives since 1987
12:30 PM on 03/19/2010
I remember those nasty Obamaniacs attacking the gay community because Obama threw us under the bus with the legal brief to uphold DOMA. How dare we stand up for ourselves?

They said that our civil rights didn't matter and that Obama had to save his political capital for health care.

As it turns out the only thing he was saving his political capital for was a deal with with the insurance, hospital and pharmaceutical industry to kill the public option in exchange for an ocean of corporate campaign cash.
10:12 AM on 03/19/2010
count my vote out...I'd rather stay on the side line...yes that is not the most effective way, but how can I vote for someone who says one thing and does something different on such important issue.
10:10 AM on 03/19/2010
He'll never get my vote again...you can't trust this guy. He has killed my enthusiasm.
batguano
As Long As Grass Grow, Wind Blow & The Sky Is Blue
11:20 PM on 03/18/2010
Collusion with corporate profits, deceit, distortions of truth, manipulation of the electorate with promises of "change we can believe in", and then just more everyday business as usual after election from the great hope salesman. Hope has left the building and has been replaced by incredulous disbelief, despair, contempt and fury at the numerous betrayals by this administration. The health care "reform" effort/bill is, along with the banking sector AIG/Goldman thieves rip-offs, and BS “reform” of the banks, as the most prominent examples. The best option of Single-Payer HR676 for our nation and people was thrown in the garbage by Obama on day one, and the "compromise" of a "robust" Public Option just providing enough hope to not make us go ballistic; now we find that we were played for chumps and suckers by the WH and Congressional "leaders", do-nothing Reid and two-faced Pelosi. We were lied while the greed-driven for-profit HC "Industry" took home all (most) the marbles, and we were still waiting and hoping for strength and honor from the WH. What other betrayals and give-aways to big-money are waiting just down the road?
06:09 PM on 03/18/2010
Obama lied, He is still lying. It was not a little white lie, it was a wopper! It changed the entire direction of health care reform.

While the current bill does attempt to address some of the worst industry practices (assuming the remedies can or will be enforced), nobody in their right mind believes it will reduce costs. Would the public option do that? Probably not, but it was our best alternative. At least once in place, Americans could vote with their dollars for a public option. If enough Americans made that choice, it would pave the way for single payer, which is our best chance to curtail health care cost increases.

Obama destroyed his presidency with the shake of a hand.
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tbone99
cruisin' duality
05:42 PM on 03/18/2010
Obama elected in good faith , betrayed us all.

far from being the Messiah as some joked , he is Judas....and it isn't funny, just sad.
04:27 PM on 03/18/2010
THANK YOU!!

Miles Mogulescu has been shouting from the rooftops, trying to get people to pay attention to this. There is still time to make the public option happen.

EXPOSE THE DEAL!!

If we can do that, we can force a public option vote!
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Samalabear
10:27 AM on 03/19/2010
I don't know when you wrote this comment, so I'm just adding a reply now. If you wrote it before yesterday I'm sure you must be shocked by the public apathy regarding this. I see a lot of cheerleading for this crappy bill -- Obama is a hero, anybody against the bill is bad. It's very sad.
03:09 PM on 03/19/2010
Indeed. It sucks all the air out of my lungs.
04:24 PM on 03/18/2010
I knew about it the day the article came out in the times.....Progressives need to realize that Rome wansn't built in a day, and although it was the proper way to go (public option) we sadly have half an electorate that in my opinion is about two decades behind the rest of the world and whose reckless policies have left carnage (domestic and foreign) in its wake. With all the lies, and confusion they have sowed on this issue to their drones (including far too many of our democrat corporist reps) Im surprised that this may even pass. Pathetic !!

-Tea party mantra #1, 432 "Keep your damn goverment hands out of my medicare".....for shame!!
04:21 PM on 03/18/2010
Yes, Obama killed the public option after making deals with insurance and pharmaceutical industry lobbyists. This has been on-record now for a while.

Whether it was a good deal or not, whether it was pragmatic or not, whether it was "savvy" or not, you can argue until blue in the face (nb: I'm from the "kill the bill" school of disenfranchised Democrats, so you know my bias). But the fact that it HAPPENED has been uncontested, reported news now for months (well, the PhRMA portion has been on record for months; the AHIP portion was suspected, but not fully proven until recently).

That this is a blatant betrayal of his campaign promises is also not debatable. Obama campaigned on a "public plan" (nee public option) and *no mandates*. Somehow, after he got elected and had these secret meetings with PhRMA and AHIP, that turned into NO public option and WITH a mandate. Of course, there was a "goody bag" of deal-sweeteners (his own words, not mine) thrown in, but the core of the plan -- the core of reform, in fact, was tossed down the drain after the backroom deals with the lobbyists.

The irony is, of course, that in their efforts to soothe their cognitive dissonance, party loyalists are now claiming that these deals never happened, when even the White House doesn't deny them. Better to deny reality than admit that you got suckered, right?
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ProudLiberalDan
Standing up an fighting conservatives since 1987
12:31 PM on 03/19/2010
They now say thing like, "Obama always supported a mandate" and "Obama never supported the public option" and insist we all enable their hero worship by agreeing with their childish and immature delusions.
02:14 PM on 03/20/2010
Indeed. It drives me a special kind of crazy when arguing with this sort of thing. People don't even realize or don't even care that just saying "it's not true!" doesn't cut it, or that just saying "it's health care reform because Obama said so!" doesn't make that true, either.
03:48 PM on 03/18/2010
There is no question that Obama made a deal to kill the public option as he did to prevent cheaper drugs but you can be sure there will be no shortage of apologists on the so called progressive left that will defend everything the democratic party does no matter how reactionary it is. MoveOn.org supposedly an independent voice has acted like a lapdog for the party and not only supports this corporate welfare bill but is threatening anyone who has the guts to oppose it. They have lost all credibility.
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Samalabear
10:33 AM on 03/19/2010
MoveOn, Daily Kos, MomsRising, which I gave an earful to as I unsubscribed. I only subscribed because, like so many of these other group, they sounded really progressive and, again, would not back down from demanding real reform. Well, their newsletter this week was a carbon copy of all these other "progressive front" organizations. The were blathering and cheering about their photo op with Pelosi wherein they used their babies, toddlers and older kids as political props, appropriately teaching their kids the proper chant to support the bill. All I could think of is Sarah Palin would be proud.
07:58 AM on 03/20/2010
You should go to firedoglake.com, they haven't gone off the cliff to support corporate legislation. One of the few places left where reason lives.