Health Care Kumbaya
by Jeff Crosby, Jul 9, 2009
The peasants are filing their pitchforks to a fine point in anticipation of an attack on the palace—and the target of their ire is not what we might have intended. At this critical moment in the health care debate, more than a few working folk are taking a suspicious look at the health care reform efforts of Senate Democrats, President Obama—and their own unions. A headline in my local newspaper, the Lynn Item, helped stir the tempest: “Obama Open to Taxing Benefits to Fund Reform.”
Vincent Panvani of the Sheet Metal Workers (SMWIA) warns:
If any of these Democratic Senators vote for this, they’ll be out in 2010, and it will be used against Obama….(Y)ou’re taxing the middle class.Teamsters President James Hoffa calls taxing health care benefits “the poison pill that will kill reform.” The Laborers have attack ads at the ready. And Donna Smith, an organizer and legislative representative for the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC) notes that insurance companies continue discriminatory rates for older workers and ongoing rescissions of benefits—that is, targeting people with more than 1,400 medical conditions for “opposition research” investigations so their benefits can be cut off. “Ugly stuff,” she puts it. (At a health care forum in Lynn, Mass., last week, Rep. John Tierney reported that in congressional hearings he asked every insurance company if they would stop these viscous targeted rescissions—each one said “No.”)
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Funding health care reform has always been the fulcrum of the contest. The insurance companies, hospitals and drug companies become advocates of “reform” if and when it simply means a massive transfer of public funds into their hands. The American Hospital Association and American Health Care Plans spokespersons reneged on the promises to reduce costs they had announced at a much-hyped appearance with President Obama and SEIU’s hapless Andy Stern—just three days earlier! (Hey, “voluntary” controls worked with the banks and OSHA, right?)
Profits at the 10 largest public ally traded health insurance companies rose 428 percent between 2000 and 2007. And they intend to keep them climbing.
The “Massachusetts Plan,” which was condemned by the AFL-CIO when it was first passed, fits the “feed-the beast” mold. To say, as the sole union defenders of the Mass Plan in the state suggest, that the “Mass Plan does some good things but it just didn’t deal with costs” is like saying poison ivy is a pretty plant if it wasn’t poison. The Mass Plan is collapsing of its own financial weight. Its cost has doubled in two years to $1.3 billion. Debate here now centers on whether to eliminate dental care or eliminate coverage for certain groups of legal immigrants.
Which brings us back to the gathering peasants. There are three distinct groups of union members girding for revenge if the Republicans and conservative Democrats manage to cow Obama into taxing health care benefits. First are the single-payer advocates, who have argued from Day One that the only way to “reform” is to start by fighting for the best solution, not start from a dense compromise that will inevitably be moved toward the health care millionaires in the interest of “bipartisanship.”
Second are the conservative union members who have told me from the beginning that the inevitable outcome of the union campaign will be the “guv’mint” taxing the working stiff to pay for insurance for poor people. This is a successful formula right-wingers are using to drive a wedge between “working people” and “the poor.” The crisis of legitimacy of the government will worsen, the right-wingers will be the beneficiaries. Rush Limbaugh and the Fox crowd are drooling.
Finally, there is the large middle group that is just starting to pay attention—and they are focused on the Obama Taxing Our Benefits headlines mentioned above. A member of the Local 201 Legislative Committee who is talking one on one with our members, gathering letters to legislators on health care reform, reports the best motivator is: “Tell them not to tax our benefits!”
http://blog.aflcio.org/2009/07/09/health-care-kumbaya/#more-16109