The Bad Politics of Health Care Reform

More

Fareed Zakaria is an admirably efficient thinker and simple writer. Tis a gift to be simple, but tis not a gift to oversimplify, and sometimes the straitjacket of column inches puts the squeeze on complex analysis. Here's a paragraph on health care from his latest column on Tuesday's elections and America's resurgent centrism:





There are two great health-care crises in America--one in-volving coverage and the other cost. The Obama plan appears likely to tackle the first but not the second. This is bad economics but also bad politics: the crisis of cost affects 85 percent of Americans, while the crisis of coverage affects about 15 percent. Obama's message to the country appears to be "We have a dysfunctional health-care system with out-of-control costs, and let's add 45 million people to it."

This is becoming the key moderate critique of health care reform as it moves closer to passage: HRC doesn't fix the cost crisis for families, or the federal government.

But this paragraph deserves a follow-up question. Why is it so difficult to reform the cost structure of health care? The answer is: Nobody will allow it.

The sure-fire way to control costs is to wrest profits and services from key constituents and challenge our prohibitively expensive fee-for-service system. But there's a catch. Cut doctor reimbursements, and you lose the AMA, rural hospitals and rural Congressmen. Cut services, you lose the AARP, which is political jargon for losing -- period. Even with a historic Democratic majority, it's a bare-knuckle brawl trying to tax rich insurance plans. Like I wrote, benefits are sticky, and elections are frequent, and it's very, very hard to tell key groups that their meal ticket constitutes "waste and abuse," because they'll disagree and vote your party out of office in a year.

In short, Zakaria might be right that this health care bill has a dysfunctional message for voters. But look at the larger picture. In health care, now and for the foreseeable future, it's all bad politics.

Jump to comments

Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for TheAtlantic.com. More

Thompson has written for Slate, BusinessWeek, and the Daily Beast. He has also appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC.

Get Today's Top Stories in Your Inbox (preview)


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Miami: The Next Big Start-Up City?

How the city became a center for innovation

Video

Video

A Brief History of Romantic Comedies

From The Atlantic's Chris Orr

Video

Life in 'the New Arctic'

A moving portrait of a fading landscape

Video

Video

The Rise of New York City

A fascinating look at Manhattan in the 1940s

Video

What Is Methane Hydrate?

"Flaming ice" is a vast natural energy source

Video

NASA's Time-Lapse of the Sun

Now with epic dubstep music

Video

Shaken Not Tuned: Cocktail Experiments

Can a tuning fork improve a cocktail?

Video

Video

Is He Cheating? A 1950s Guide

'That little blonde secretary from the office?’

Video

New Yorkers: Vintage Vacuum-Tube Amps

Risking electric shock to restore old amplifiers

Video

The DIY Piano-Bicycle

Everybody needs a hobby

Video

What Does It Take to Make Real Craft Gin?

Tour the Green Hat Gin distillery

Video

Letter From the Editor

The June 2013 issue

Video

What Straights Can Learn From Same-Sex Couples

New insight from decades of research

Video

The End of the Mall Rat

A tribute to that pillar of teen culture

Writers

Up
Down

More in Business

In Focus

Picking up the Pieces After the Tornado in Moore, Oklahoma

Just In