On health care reform, Democrats' best strategy may be to 'go it alone'


The best strategy for President Obama and congressional Democrats regarding health care reform may be to "go it alone" -- to pass a bill that has Democratic Party support, with maybe one or two Republicans.

Further, the era of bipartisan cooperation is over, if it ever really began. The U.S. Congress is as polarized as it ever has been in the post-World War II era, with ideologues dominating each party. President Obama's effort to forge a post-partisan politics was admirable, but it did not get very far, largely due to a Republican Party that's dominated by a conservative base, but also due to a Democratic Party committed to largely liberal goals.

Because of the Republican Party's conservative base -- which opposes the plan on numerous counts -- the GOP has no interest in seeing health care reform succeed. The Republicans want health care reform and the Obama administration to fail -- regardless of the impact of either failure on the nation's economy -- with the hope that voters will blame the failure on Obama and Democrats and reelect the Republicans to majority status in Congress in 2010.

Obama, a formidable public official and campaigner, and the Democrats have built up considerable momentum, due to the failures of the Bush administration and a political cycle that has swung back in the party's favor. Republicans want to reverse these trends, and to do so they've cast aside any notions of cooperating with Democrats for the good of the nation. For the Republican Party, the current goal is clear: ruin the Obama presidency and end Democratic majorities in the House and Senate.

For the above reason, Obama and congressional Democrats should craft health care reform legislation that achieves as many reform goals as can be passed by the party, aided by perhaps a one or two Senate Republicans. (It's unlikely that any House Republicans will vote for health care reform bill whose goal is universal health care.) The bill should subsidize health insurance premiums for poor and lower-income individuals and families, seek increased efficiencies in Medicare and Medicaid to lower health care-related federal spending, and pass other programs that lower health care premium costs, including a public health care plan to increase health insurance competition. If a public plan cannot pass, Obama and Democrats should seek to establish health care cooperatives that would come close to achieving the same competitiveness goal.

Bipartisanship is unattainable in current climate

Moreover, recent history should demonstrate to the Democrats the futility of working with the Republican Party, at least on this important issue. When Obama sought Medicare cost reductions, Republicans charged him with hurting the quality of care for senior citizens; when he sought greater access, Republicans charged him with proposing legislation that would increase federal spending. In other words, no matter what Obama has proposed, Republicans have simply criticized it -- hardly the stuff of bipartisanship. And to-date, the Republicans have not offered a health care reform plan that includes universal health care and that subsidizes the cost of insurance for lower-income citizens. Hence, Republican statements that they want health care reform to pass have to be viewed as disingenuous at best, and an outright fraud at worst.

Further, the town hall debates in August included some of the worst examples of public expression since the tumultuous late 1960s/early 1970s debates over the controversial Vietnam War. In a patently false assertion, Former Alaska Gov. Sarah Palin claimed that health care reform would lead to "death panels" that would determine the life/death of senior citizen patients -- an assertion repeatedly voiced at town hall debates. U.S. Sen. Tom Grassley (R-Iowa), in another ludicrous statement, said he would be there to prevent health care reformers from "pulling the plug on grandma." And of course, numerous debates degenerated into shouting matches and/or contrived disruptions -- hardly the stuff of enlightened discourse in an advanced democracy.

Although President Obama and the Democrats will be a clear loser if health care reform is not passed, the nation will lose as well, and in a big way.

Democratic Party voters are counting on their party making health care accessible to all. Anything less, and a key constituency, liberals, with be offended; the party will also lose support among at least a segment of Independent voters who also favor universal health care. Political science research tells us and history demonstrates that when these two groups are offended, their voter turnout declines. In the 2010 congressional election, that could result in the loss of up to 20 Democratic seats in the House, and 3 to 5 seats in the Senate.

But the nation, including investors and taxpayers, will be big losers, as well. That's because, absent health care reform, the same system that has health care costs ballooning across the services spectrum -- private, corporate, public -- will continue, with terrible economic and fiscal consequences.

Given the structural changes occurring in the U.S. economy, not taking steps to rein in spiraling U.S. health care costs is irrational. It's also bewildering to the rest of the modern, industrialized world.

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Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.

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