Who kidnapped Paul Krugman?

It had to be a tag-team operation, because surely no Liberal with a Conscience would go quietly.

1. Obama. Proof?

Krugman: If I could start from scratch, I’d go for single-payer. Where introducing single-payer has proved politically possible, it’s been a smashing success.
Obama: If I* were starting a system from scratch, then I think that the idea of moving towards a single-payer system could very well make sense. That's the kind of system that you have in most industrialized countries around the world.

2. Not sure who to blame this one on. Blue Dogs, for starters.

Krugman: However, there are other systems that also work well. The Netherlands, for example, relies largely on private insurers,
Everybody and their cousin: But other countries have private insurance!

Of all the multi-payer, private insurance "other" countries PK could have picked to "prove" that we don't need single payer to get reform, I'm guessing it's no accident he decided to "go Dutch". After all, the Dutch recently decided to change their mixed public/private system to one that sounds suspiciously like RomneyCare, even down to the rationale [we never meant to contain costs!].

And how is it working our for them? About like RomneyCare is working out for Massachusetts. Don McCanne:

Although the Dutch health care system was in far better shape than ours, their politicians decided that they could improve their system even more, while making it more affordable, by replacing their dual public and private insurance programs with a single market of competing private plans.

They put into place the policies (listed in the abstract above) that we are currently discussing for our reform, which theoretically would regulate the market to ensure efficiency and prevent the private insurers from gaming the system. The Netherlands has provided us with a very instructive, real-life experiment on whether competing private plans would serve us well as a model for health care financing reform in the United States.

[...]

After almost three years of this experiment, what has happened? Health care costs have continued to grow well in excess of the rate of inflation. Health insurers attempted to keep their premiums affordable in order to gain market share, but because of insurer losses, premium increases have been greater than would have been anticipated based on the market competition theory. In spite of these premium increases, insurer losses have been increasing. Insurers with less penetration in the marketplace are now facing the necessity of consolidation.

In another article in this same journal, Kieke Okma states, “… the trend of market concentration in Dutch health insurance and health care will likely continue. This might result in both higher prices and more-restricted access to health care services, both of which will not be too popular with Dutch patients and insured.”

Although there are many policy lessons for us in the Dutch experiment, there is one predominant message that the U.S. policy community must understand. Everyone agrees that costs absolutely must be contained, and we need to do that in a manner that repairs our fractured health care delivery system. The primary reason for the Dutch reform was this need for cost containment. But what is their position now?

According to Rosenau and Lako, “In the face of initial failure to control costs, the reaction of the Dutch government has been to reiterate its faith in the free market for health insurance and to argue that cost containment was not an important rationale for the Health Insurance Act in any case (confidential personal interview, April 13, 2007).”

And here are some early reactions on the Dutch health insurance reform, from 2006 [the year reform was implemented] and 2007.

3. Richard Kirsch [with help from Celinda Lake]. Proof?

Krugman: Politically, single payer is not going to happen any time soon. It’s not just the power of the insurance lobby: voters tend to fear the unknown
Kirsch: At that point, people become more scared about what they will lose from reform than what they will gain.

It's gonna cost us a king's ransom to get our Nobel laureate back, isn't it?

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lambert's picture

Digby, demanding unpaid single payer advocates do comparative...

... international research that curiously, or not, "public option" advocates are not willing -- able? -- to perform themselves (here) mentions the Netherlands in her apologia for that "unpopular" post.

New bait for a new switch? Seems like TulipCare is the fallback...

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

tulipcare!

oh dear. and i thought the acorn is going to kill us list of rightwing talking points about obamacare was funny...

i am so going to steal this one from you. it works on several levels.

but back on topic, those 2 posts made me see red, and it only got worse when she later whinged about how there was no grass roots movement for single payer. pnhp was founded in the 1980s and if could find them with a little googling 2 years ago, so could digby.

lambert's picture

15,000 members, too

What I don't know -- because of course it's not covered in our famously free press or the A list -- is the effect they have had on shaping public opinion at the grassroots level (by which I don't mean Versailles).

I'd like to say that HCAN creamed all their effort off, but I can't prove it.

NOTE You are familiar with the Sophie Tucker joke, right?

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

forgive me, but no,

what sophie tucker joke?

with you 100% on hcan, and no, i don't know how much effect they [pnhp] have had on single payer consciousness-raising in the grass roots. they're the ones who turned me on to it, though, so there's one little root for ya.

more on tulipcare

the dutch had a very good health care system, and much of what we 'know' about it [stuff like world rankings in mortality, life expectancy, affordability, fairness, etc] is from pre-'reform' days. we'll just have to give it a few years to see if the privatization experiment works out. australia has done some going back and forth to and from private and public funding; seems people really do like having government-sponsored health insurance once they get a taste of it.

lambert's picture

"Fear of the unknown..."

Yep, and if the people with the big megaphones had invested a little time removing that fear, we might be better off. But no.

I don't think Krugman's changed at all -- though I have to confess I don't expect him to rewrite conventional wisdom based on talking points from Celinda Lake.

I think that the landscape has shifted around him. Against the background of the Bush administration's extremism and insanity, Krugman's personal integrity and willingness to speak up made him seem like one of the left. Now that Obama and the FKDP are rationalizing and consolidating Bush's authoritarian gains, Krugman doesn't stand out near so much.

And that column is simply third rate; not Nobel-class analytically, and not exactly a profile in courage on the issue, either: Not covering 676 until now really lets the cat out of the bag, doesn't it? FAIL!

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

a little night musing's picture

Has he changed? No: But has he changed his position?

I'm not sure. And I'm curious about that.

Remember that he (with Robin Wells) wrote in the NYRB only 3.5 years ago:

Can we fix health care?
Health policy experts know a lot more about the economics of health care now than they did when Bill Clinton tried to remake the US health care system. And there's overwhelming evidence that the United States could get better health care at lower cost if we were willing to put that knowledge into practice. But the political obstacles remain daunting.

A mere shift of power from Republicans to Democrats would not, in itself, be enough to give us sensible health care reform. While Democrats would have written a less perverse drug bill, it's not clear that they are ready to embrace a single-payer system. Even liberal economists and scholars at progressive think tanks tend to shy away from proposing a straightforward system of national health insurance. Instead, they propose fairly complex compromise plans. Typically, such plans try to achieve universal coverage by requiring everyone to buy health insurance, the way everyone is forced to buy car insurance, and deal with those who can't afford to purchase insurance through a system of subsidies. Proponents of such plans make a few arguments for their superiority to a single-payer system, mainly the (dubious) claim that single-payer would reduce medical innovation. But the main reason for not proposing single-payer is political fear: reformers believe that private insurers are too powerful to cut out of the loop, and that a single-payer plan would be too easily demonized by business and political propagandists as "big government."

These are the same political calculations that led Bill Clinton to reject a single-payer system in 1993, even though his advisers believed that a single-payer system would be the least expensive way to provide universal coverage. Instead, he proposed a complex plan designed to preserve a role for private health insurers. But the plan backfired. The insurers opposed it anyway, most famously with their "Harry and Louise" ads. And the plan's complexity left the public baffled.

We believe that the compromise plans being proposed by the cautious reformers would run into the same political problems, and that it would be politically smarter as well as economically superior to go for broke: to propose a straightforward single-payer system, and try to sell voters on the huge advantages such a system would bring. But this would mean taking on the drug and insurance companies rather than trying to co-opt them, and even progressive policy wonks, let alone Democratic politicians, still seem too timid to do that.

So what will really happen to American health care? Many people in this field believe that in the end America will end up with national health insurance, and perhaps with a lot of direct government provision of health care, simply because nothing else works. But things may have to get much worse before reality can break through the combination of powerful interest groups and free-market ideology.

I still find that last line chilling.

I really hope he responds in some way to my question of what his absolute bottom line is, in terms of what is worth passing as health care insurance reform, at this point. I would hate to think he would ask us to accept something that will make things worse in the short run so that we'll be pushed to ask for reform again. Because, for those of us who are hit by the problems created by having to rely on for-profit insurers, "worse" is not just a matter of having to dig up a decades-old marriage license.

(Sorry to be so dramatic, Paul, but I really do wonder.)

We can't afford not to have single-payer!

i think i quoted this very

i think i quoted this very same piece on my blog 2 years ago.

oh well, at least i don't have a marriage license to look up, being a crazy cat lady and therefore single. of course, should i ever need my birth certificate to prove i'm not an illegal alien, i'm in trouble.

confession:

i don't read his columns anymore, just his blog.

definitely no nobel-class analysis there, but the guy's a trade economist, not a health policy wonk. still, someone with his smarts and connections could have asked around looking for a health policy wonk from the left, don mccanne, frinstance, to analyze the bill[s] from a health policy viewpoint.

as to whether he's changed or not, you're probably right. i did go out and buy his book, and while all my liberal friends were excited about it, i found it too centrist for my taste.

mass's picture

I wrote him a very heated email this morning.

Probably, I was a bit too harsh, but he did advocate for Medicare for All once upon a time. This was not the year to step back and endorse the Massachusetts health reforms, for Gawd's sake.

I worry about the benevolent Democrats. I think they don't really see the squeeze the vast majority of middle class Americans are in and how health care expenses really fit in. I mean, I would bet Krugman has a very nice package at Princeton and pays a relatively small percentage of his income for it. I wish these Democrats would ask Obama to define "affordable" and define "quality".

The liberty of democracy is not safe if people tolerate growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism.---FDR

benevolent democrats

i've been toying with posting on this very subject, because i think this gets to the heart of a lot of problems we've got on the left.

i wasn't, however, thinking of calling them benevolent. now that you mention it, though, i think it's a very good characterization.

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