Two Labor Unions Withdraw From Coalition Working To Overhaul Health Care System
Kaiser Daily Health Policy Report [Mar 09, 2009]
The American Federation of State, County and Municipal Employees and the Service Employees International Union have pulled out of a broad-based coalition seeking consensus on overhauling the U.S. health care system, the New York Times reports. The Health Reform Dialogue coalition, led by American Hospital Association President Richard Umbdenstock, includes representatives of doctors and nurses, patients and consumers, insurers, pharmaceutical firms, and businesses of all sizes. The group by the end of the month plans to issue recommendations for controlling health care costs and expanding coverage to all U.S. residents. However, according to the New York Times, the withdrawal of the two unions "shows the seeds of discord behind the optimistic talk" last week at the White House health care summit.
Members of the coalition said they have not been able to agree on proposals for a new public health insurance option or a requirement that all employers contribute to the cost of coverage for all workers -- "two of the knottiest issues in the health care debate," the New York Times reports. SEIU and AFSCME support both the public option and the employer mandate. Lori Lodes, a spokesperson for SEIU, said, "We support the public insurance option. We strongly support the health care proposal President Obama laid out in the campaign." In petitions sent to lawmakers, the union has written that a health care overhaul must include "the choice of a public plan, so we're not left at the mercy of the same private insurance companies that have gotten us into this mess." AFSCME Director of Collective Bargaining and Health Care Policy Steven Kreisberg said, "I can confirm that we did drop out of the dialogue last week. We are no longer part of the group." He said the union withdrew for "various reasons," but declined to elaborate.
A member of the coalition, speaking on terms of anonymity, said the group's final report likely "will be a consensus product reflecting the lowest common denominator." Families USA Executive Director Ron Pollack said that the unions "wanted a more robust, expansive agreement." Peter Adler -- president of the Keystone Center, which is mediating the coalition's discussions -- said, "SEIU and AFSCME have left the table," but "[w]e are trying to keep the lines of communication open" (Pear, New York Times, 3/7).
Insurers Creating a public health insurance option, which is supported by Obama and Democratic congressional leaders, could be a "dealbreaker" for some Republicans and insurance companies whose support would ease the way for a health care overhaul, the AP/Miami Herald reports. According to the Commonwealth Fund, a public coverage program similar to Medicare would reduce projected health care costs by about $2 trillion over 11 years, and reduce premiums by about 20% on average. Within about a decade, 105 million people would be enrolled in the public plan, and about 107 million would have private insurance, according to the Commonwealth Fund.
However, insurers are concerned that competition from a public option could "drive them out of business," and Republicans worry that "it would lead to a government takeover of health care," the AP/Herald reports. Rep. Roy Blunt (R-Wyo.) in the Republican weekly radio address on Saturday said, "I'm concerned that if the government steps in, it will eventually push out the private health care plans millions of Americans enjoy today," adding that a public option "could cause your employer to simply stop offering coverage, hoping the government will pick up the slack."
In response to a question from Sen. Chuck Grassley (R-Iowa) about the inclusion of a public plan, Obama at the health care summit last week said, "The thinking on the public option has been that it gives consumers more choices and it helps ... keep the private sector honest, because there's some competition out there." He added, "I recognize, though, the fear that if a public option is run through Washington, and there are incentives to try to tamp down costs, ... that private insurance plans might end up feeling overwhelmed" (Alonso-Zaldivar, AP/Miami Herald, 3/7).
Although "hard questions lurk beneath the cheery surface of consensus," America's Health Insurance Plans President and CEO Karen Ignagni at the summit pledged the cooperation of its members in efforts to reduce health costs and expand coverage, the Philadelphia Inquirer reports. She said, "We understand we have to earn a seat at the table. You have our commitment to play, to contribute and to help pass health care reform this year" (Fitzgerald, Philadelphia Inquirer, 3/8).
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