View: Obama’s plan shares key elements proposed by Nixon – 35 years ago

March 15, 2010 | By More

Kathleen O'Connor, CEO of CodeBlueNow!

In 1974, Richard Nixon introduced his health care proposal.

It had an employer mandate.

It kept a private health insurance market.

But it included subsidies for low income employers and individuals.

Sounds like the Obama proposal.

Interestingly, Nixon offered nothing in the way of malpractice reform, which today’s Republicans insist is essential.

Nixon has also earlier signed into law the HMO act which was designed to bring down health care costs by ‘managing care,’ an attempt to change the fee-for-service behavior of physicians.

Something, almost all health economists say we must do.

Nixon’s reasons for wanting health care reform?

Some direct quotes:

Across the Nation, the average cost of a day of hospital care now exceeds $110.
The average cost of delivering a baby and providing postnatal care approaches $1,000.

The average cost of health care for terminal cancer now exceeds $20,000.

For the average family, it is clear that without adequate insurance, even normal care can be a financial burden while a catastrophic illness can mean catastrophic debt.

Beyond the question of the prices of health care, our present system of health care insurance suffers from two major flaws :

First, even though more Americans carry health insurance than ever before, the 25 million Americans who remain uninsured often need it the most and are most unlikely to obtain it. They include many who work in seasonal or transient occupations, high-risk cases, and those who are ineligible for Medicaid despite low incomes.

Second, those Americans who do carry health insurance often lack coverage which is balanced, comprehensive and fully protective.

Now 35 years later, one night in a hospital is over $1,000.

Prenatal care and delivery is over $2,000.

Terminal cancer care treatments (stem cell transplant) can cost $250,000 and more.

The 25 million uninsured in 1974 is now nearly 50 million of all Americans under age 65, not to mention the underinsured.

As health care costs increase, more voting middle income families are no longer able to afford the costs of health care.

At CodeBlueNow! we’ve worked with the public for seven years conducting surveys and convening meetings asking them what they value in health care reform.

What they say is consistent with what Nixon proposed more than three decades ago and what Obama proposes today:

On key elements of reform there is general consensus.

These can be summarized as:

  • Assure everyone has coverage.
  • Keep a private insurance market, but build in accountability. Hold insurers accountable for cost, quality, efficiency and customer service. Doctors keep private practices and individuals see their licensed provider of choice.
  • Define a basic benefit package all would have. That would lead to administrative simplicity and savings, which could be redirected toward patient care and greater opportunity and freedom because people could choose any job, without fear of losing benefits. Those wanting more benefits can buy more, as they do now. And everyone pays — individual, employer and government.
  • Reward patients and providers for supporting the health of the patient, improve care for chronic conditions, create incentives to keep people well, while not penalizing those with conditions beyond their control.
  • Use existing agencies to manage the benefits at the state level and let people choose health savings accounts like 401(k) plans that they can use for health care and long-term care.

That consensus remains intact, even after a year of rancorous debate. Congress would recognize that it it take the time to listen to what the public values.

It’s time for Congress to be part of the solution, not the paralytic, partisan body it has become.

Health care costs are truly bi-partisan, which Congress should keep in mind as it nears a vote on health care.

For Congress to walk away from this issue would be an incredible slap in the face to the American people.

CodeBlueNow! is a national, nonpartisan grassroots, 501(c)3 nonprofit organization based in Seattle dedicated to giving the public a voice in shaping a new health care system.

To learn more:

  • Read President Nixon’s health care proposal.
  • Read CodeBlueNow!’s report.
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Category: Healthcare Reform

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