ED SCHULTZ, HOST: I’m Ed Schultz. Welcome back to THE ED SHOW. Now, remember on Monday when the bigwigs from the insurance and hospital industries did a photo-op after a meeting with the president outside the White House? They said that they were really committed to lowering health care costs over the next 10 years. In fact, the president described it as a watershed event.
(BEGIN VIDEO CLIP) BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: Some of these groups were among the strongest critics of past plans for comprehensive reform. They are pledging to cut the rate of growth of national health care spending by 1.5 percentage points each year, an amount that`s equal to over $2 trillion. (END VIDEO CLIP)
SCHULTZ: Well, I don’t want to say that I told you so, but I did. I told you I don’t trust these folks. I said that this was really a head fake in open field to dodge reform at any cost. And they’re going to try to derail it at any cost. Watch the lobbying money. I said that when it sounds too good to be true, it probably is. Well, yesterday, the head of the American Hospital Association proved me right.
He got on a conference call with 230 companies and said, hey, wait a minute here. The conversation had "spun way away from the original intent," and we`re the ones they are trying to spin right now, you and me.
"The New York Times" reports that the American Hospital Association put out a bulletin telling its members, "The AHA did not commit to support the Obama health plan or budget." And it said, "The groups did not support reducing the rate of health spending by 1.5 percentage points annually." Instead, he said 10 years down the road, eventually costs would be 1.5 percent lower in all.
Now, other insurance executives are saying reform will ramp up gradually, and that there really is no specic understanding of exactly when this whole thing is going to take place.
Now, joining me now is Jerry Flanagan. He’s a health care policy director for Consumer Watchdog. Mr. Flanagan, good to have you with us tonight.
I was skeptical from day one. You’ve got the foxes who have been guarding the hen house, are going to the White House to say, hey, we`re really going to work with you now, we’re going to keep these costs down. Is this a signal early on that we`re not going to be able to trust these organizations that have really nailed us with double-digit increases year after year?
JERRY FLANAGAN, CONSUMER WATCHDOG: Well, when can we ever really trust these guys? I mean, this is the insurance industry, this is the hospital association. These are the folks that have driven up costs that have largely created the problem. And, you know, really what the insurance companies are trying to do right now — and the hospitals — are trying to turn reform into a bailout.
This week in Congress, both the Senate and the House announced plans that would require every American to buy health insurance and pay for hospitals, but not cap what the hospitals and insurance companies could charge. What a great deal…
SCHULTZ: Jerry, are we seeing the Obama strategy, you know, talk to the folks who have made it tough and then we’ll get to the advocates later? What do you think?
FLANAGAN: Well, I think what’s happening is the insurance companies are trying to dodge Obama. But Obama’s doing something, I think, still on the lead on this one, which is that, you know, he gets out of this that you came to my house, the White House, on Monday and said we’re going to pledge to lower rates, and I’m going to use that pledge against you in the future.
If the hospitals really do try to back out of this, the one thing the Obama administration has is the bully pulpit. And the question is what Congress and the House does.
Right now they’re looking at a plan that would require Americans to buy from the hospitals, but not cap what the hospitals could charge. And that’s what Monday was all about.
Monday was about the hospitals voluntarily pledging to reduce rates so that they aren’t regulated. That’s what they don’t want, is to actually be required to lower rates.
SCHULTZ: I just find it so unusual that a president who is so consuming of a room and information, who is so academic about the issues, just somehow there happened to be some miscommunication about the way this thing came down with the American Hospital Association, the insurance companies, the pharmaceutical manufacturers. I mean, all of a sudden, we`ve got some real miscommunication. I find that hard to believe.
I want to know, are you disappointed that we’re maybe not off to the start that we need to be off to?
FLANAGAN: I’m very disappointed. First of all, the Senate and the House debate so far has really locked consumers out of the process. And look at the letter the hospitals wrote. It wasn’t unclear. It said 1.5 percent annually.
You know, the president was relying on the text, but what’s going on here is the hospitals are trying to create a moment where they can get something out of reform that benefits them and not the patients. And that’s to require folks to pay whatever costs they want to charge.
Unfortunately, the consumers have really been locked out of the Senate debate so far. And that’s…
SCHULTZ: Sure they have. They have been. They absolutely have been locked out.
We’ve got to run. We’re short on time tonight, Jerry. I appreciate your time. Thanks for your take on this. We obviously will follow the story.
