HAPPY HOLIDAYS TO ALL!
I will see you all after the first of the New Year!
Note: I am currently heading towards beautiful Tennessee and will be truly out of pocket until after the holidays.
The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists.The article goes on to debunk other oft-repeated fables, such as the one that U.S. made cars are unreliable junk.****** 1: Nobody buys their vehicles.
Reality: General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of nearly 700,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide - about 3,000 more than Toyota.
Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year. Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.
Reality: The creaky, leaky vehicles of the 1980s and '90s are long gone. Consumer Reports recently found that "Ford's reliability is now on par with good Japanese automakers."And this one, which will be an eye opener for my fellow environmentalists.
The independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet, Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high as or higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and Volvo.
J.D. Power rated the Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford Fusion scored better than the Honda Accord and Toyota Camry.
Myth No. 3: They build gas-guzzlers.And this one, also important to those of us concerned with climate change, renewable energy, and energy conservation.
Reality: All of the Detroit Three build midsize sedans that the Environmental Protection Agency rates at 29-33 miles per gallon on the highway.
The most fuel-efficient Chevrolet Malibu gets 33 mpg on the highway, 2 mpg better than the best Honda Accord. The most fuel-efficient Ford Focus has the same highway fuel economy ratings as the most efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same city fuel economy and better highway fuel economy than the most efficient nonhybrid Honda Civic.
A recent study by Edmunds.com found that the Chevrolet Aveo subcompact is the least expensive car to buy and operate.
Myth No. 5: GM, Ford and Chrysler are idiots for investing in pickups and SUVs.And finally, for the union-busting anti-labor critics on the right, this should finally put to rest their favorite whipping boy.
Reality: The domestics' lineup has been truck-heavy, but Toyota, Nissan, Mercedes-Benz and BMW have spent billions of dollars on pickups and SUVs because trucks are a large and historically profitable part of the auto industry.
The most fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA fuel-economy ratings than Toyota and Nissan's full-size pickups.
Myth No. 6: They don't build hybrids.
Reality: The Detroit Three got into the hybrid business late, but Ford and GM each now offers more hybrid models than Honda or Nissan, with several more due to hit the road in early 2009.
Their union workers are lazy and overpaid.I actually find the union's capitulation to the two-tier system that leaves new workers not only earning half the amount of older GM workers, but also bereft of a pension when they retire, appalling. I understand why the union had to agree to this to be competitive. But it means that America, far down the road, is going to have a looming crisis for that generation of blue collar workers when they hit retirement age that will make the concern over the baby boomers pale.
Reality: Chrysler tied Toyota as the most productive automaker in North America this year, according to the Harbour Report on manufacturing, which measures the amount of work done per employee. Eight of the 10 most productive vehicle assembly plants in North America belong to Chrysler, Ford or GM.
The oft-cited $70-an-hour wage and benefit figure for UAW workers inaccurately adds benefits that millions of retirees get to the pay of current workers, but divides the total only by current employees. That's like assuming you get your parents' retirement and Social Security benefits in addition to your own income.
Hourly pay for assembly-line workers tops out around $28; benefits add about $14. New hires at the Detroit Three get $14 an hour. There's no pension or health care when they retire, but benefits raise their total hourly compensation to $29 while they're working. UAW wages are now comparable with Toyota workers, according to a Free Press analysis.
But then what's the source of that $70 hourly figure? It didn't come out of thin air. Analysts came up with it by including the cost of all employer-provided benefits--namely, health insurance and pensions--and then dividing by the number of workers. The result, they found, was that benefits for Big Three cost about $42 per hour, per employee. Add that to the wages--again, $28 per hour--and you get the $70 figure. Voila.Cohn also points out the main reason the Big Three automakers have such high legacy costs for retirees is that, after being in business on U.S. soil for over a hundred years, domestic car makers simply have more retirees than auto companies that have only been here since 1980. In fact, as of 2007, Toyota only had about 1,000 retirees. Of course, their legacy costs are less. Further, if you factor in Detroit’s overseas competition, foreign workers get their health insurance from single payer plans, so car companies outside the U.S. are more competitive. Domestic manufacturing, in general, is hamstrung by our out of control health care system, which is eating away at profits.
Except ... notice something weird about this calculation? It's not as if each active worker is getting health benefits and pensions worth $42 per hour. That would come to nearly twice his or her wages. (Talk about gold-plated coverage!) Instead, each active worker is getting benefits equal only to a fraction of that--probably around $10 per hour, according to estimates from the International Motor Vehicle Program. The number only gets to $70 an hour if you include the cost of benefits for retirees--in other words, the cost of benefits for other people. One of the few people to grasp this was Portfolio.com's Felix Salmon. As he noted yesterday, the claim that workers are getting $70 an hour in compensation is just "not true."
ALEXANDRIA, VA – Patrick C. Muldoon, an attorney and farmer from Virginia's "fighting 9th" Congressional District, today officially announced his candidacy for Lieutenant Governor of Virginia.What's interesting about this official release is that Muldoon is harkening back to the conservative legacy of Barry Goldwater. Although the late senator from Arizona was the father of the modern conservative movement, he is not the person usually invoked by modern conservatives. They usually look to Ronald Reagan, a truly iconic figure for them, for their inspiration.
Muldoon, no stranger to challenging political contests, joins Republican incumbent Bill Bolling in seeking his party's nod for the Commonwealth's second statewide office. The 43 year old specialist in intellectual property law has a message for the Republican Party.
Muldoon referenced former Republican presidential candidate Barry Goldwater as he opened his campaign, saying: "I offer a choice not an echo"
"I am running for the Republican nomination for Lieutenant Governor of Virginia because I believe the brightest days for our Commonwealth are ahead. These are difficult times – a massive budget deficit has replaced the surplus we once enjoyed. College costs are rising and family incomes are shrinking. Local governments are raising taxes on cash-strapped families to compensate for their own budget shortfalls. And hard-working Virginians are left wondering whether the changes coming in 2009 will be better or worse for them personally."
"Republicans face a choice between business as usual and being consigned to minority status for the foreseeable future or returning to our core principles and fighting for the honest, open, limited government our fellow citizens expect."
"I grew up in rural Virginia but I work right outside our nation's Capitol. I've found that the political elites have a tendency to complicate things. I learned a few simple truths growing up: 'when you're in a hole; stop digging' At the grassroots level, Virginia Republicans know that it is time to stop digging and start changing the way we do business in Richmond."
"I understand the rough and tumble of politics. I know a convention challenge is a bit like stirring a bees' nest. But we simply cannot continue the path we are on."
"No one is entitled to a nomination. And, as the highest-ranking elected Republican in our Commonwealth, the incumbent has an unfortunate record of passivity at a time when we need forward-thinking leadership."
"For the future of the party and the good of the Commonwealth we need to regain the focus, passion and unity of purpose fostered through healthy debate. I believe in the core Republican principles of limited constitutional government, the sanctity of life, the 2nd Amendment, free enterprise and protecting our Constitutional liberties for the next generation. I am committed to advancing those principles to the best of my abilities."
"Sadly, a handful of political operatives in Richmond wish to forestall any internal discussion about the direction of the party. From the top down, they want to slate candidates based on traded favors, brokered promises, and their own career plans. This government of the insiders, by the insiders, for the insiders costs our party what it cannot afford – the trust of the voters across our beloved Commonwealth."
"The Republican creed recognizes the intrinsic benefits of competition. In education and healthcare and business, competition is the consumer's friend. Can any less be the case in American government? Now is the time for a debate across Virginia with my opponent on what it means to be a Republican and conservative. Over the next several months I look forward to this debate of the principles that are the backbone of the Republican Party."
"My life has been about bringing different aspects of what makes Virginia work together. I worked my way through college, grad school and law school as a construction worker and maintenance man. I grew up raising beef in rural Virginia. Now I help turn great ideas into reality through patent law. I'm a Republican but a Conservative first.
As Senator Barry Goldwater so memorably said in his 1964 presidential campaign, I am offering "a choice, not an echo." To my fellow Virginians, I pledge to work with all people of good faith to guide our Commonwealth through the difficult changes ahead to a prosperous future. And, I will never put personal gain ahead of the principles that unite us."
"Over the next six months, I will be traveling around the Commonwealth. I look forward to in depth discussions with local Republican volunteers who are already leading our party into a victorious 2009. I ask for your support and your renewed commitment to work for the future of shared ideals."
November 11. Ms. Lueth is the sister Elizabeth Crum, one of my blogging acquaintances.I hope Leslie doesn't mind that I put this up. But I can't imagine the grief and fear that family must be feeling, not to mention what that young woman is going through.
A student at Michigan State University, Ms. Lueth is white, stands 5 feet 4 inches tall, and weighs about 125 pounds. She has brown hair and blue eyes.
More information is available at Ms. Crum's blog.
If you have any information regarding Krista Lueth's disappearance, please contact the Michigan State Police at (517) 322-1907.
"And keep praying," asks Ms. Crum.
Below is a phot of Ilryong Moon, Fairfax school board member. I took that photo with my new Canon Elph. It was my birthday gift from Dan. Although the photo above was also taken with the Elph, needless to say, I'm not the one who took it.
1) Passage would be a political gamechanger. Recently, I stumbled across this analysis of how nationalized healthcare in Great Britain affected the political environment there. As Norman Markowitz in Political Affairs, a journal of "Marxist thought," puts it: "After the Labor Party established the National Health Service after World War II, supposedly conservative workers and low-income people under religious and other influences who tended to support the Conservatives were much more likely to vote for the Labor Party when health care, social welfare, education and pro-working class policies were enacted by labor-supported governments."Basically, Paul Krugman, New York Times columnist and Nobel winning economist, made the same point in his recent book, The Conscience of a Liberal. According to Krugman, conservatives will fight tooth and nail to prevent a national health care system because if the government is successful at implementing a program that delivers universal health care, it will give lie to the conservative argument that "government is the problem not the solution."
Passing Obamacare would be like performing exactly the opposite function of turning people into investors. Whereas the Investor Class is more conservative than the rest of America, creating the Obamacare Class would pull America to the left. Michael Cannon of the Cato Institute, who first found that wonderful Markowitz quote, puts it succinctly in a recent blog post: "Blocking Obama's health plan is key to the GOP's survival."
Like so many others who began reading Raising Kaine during the Webb campaign, I came to rely on that site for news and opinion about Virginia and national politics. Lowell also was one of the most supportive people to me in my own blogging efforts. He constantly gave me encouragement and was generous in linking to this blog. In addition, he frequently front paged my RK diaries. And he often added illustrations to those diaries that made them livelier and more eye catching to readers. Lowell has always been generous with his support and encouragement to fellow bloggers.
Our decision to wrap up RK after four years was not a precipitous one at all. In fact, since Jim Webb's victory over George Allen, we have seriously considered shutting down this blog on several occasions. For whatever reason, maybe masochism (more charitably, we could say "dedication" and "commitment" - ha), we decided to continue through the 2007 General Assembly cycle and also the 2008 federal year. Overall, it was a lot of fun, although extremely time consuming (I haven't taken a real vacation in several years now...) and certainly not financially lucrative (so much for there being a "business model" for state-level bloggers - at least not for many years to come, I think). Also, as in any line of work, there are good people (lots of them) in blogging and politics, and there are...well, other people. :) But for myself, I'd rather focus on all the positive experiences and great people I've met the past 4 years.
At some level, it would be nice if this could continue forever, but I've got other things I want to accomplish and, frankly, this is making that more, not less, difficult to accomplish. The bottom line is this: today, Eric and I believe we are at the most natural of "natural breaking points" and - in keeping with the theme of the past year - that it's time for a change.
Personally, my #1 goal is to get back to what i was doing prior to March 2006; working on international energy, energy-related environmental, and energy security issues for the federal government. Currently, I'm in the middle of a job hunt, and we'll see how that works out, but I definitely want to devote all my attention to that and stop being distracted by the daily demands of blogging. I also, frankly, don't want to get sucked into the 2009 Virginia election season, because if I do get sucked in, something tells me I'll never get sucked back out again. :) And, also frankly, I simply don't want to start another 4-year political cycle (the expression, "been there, done that" springs to mind), especially now that I am eager to get back in the federal government, soon to be under new - and infinitely better - management!
In fact, it is precisely this fact -- that unionized automobile manufacturers provide their workers with middle class incomes -- that makes it critical for government to assure the long-term survival of this industry in particular and the U.S. manufacturing sector in general.As I pointed out, Creamer is not naïve and he’s not willing to give away the whole store to the large auto companies. His bailout would come with strings.
The core failure of the radical-right-Bush economic policy is that the "markets uber alles" economic philosophy led them to lower incomes for most Americans while siphoning off all of the fruits of economic growth for the top two-percent of the population. Of course, that is a terrible outcome because the point of our economy should be to improve the lives of everyone -- not just the gang on Wall Street. But it has also been a disaster because widely-spread income growth is necessary to provide the demand that fuels long-term economic growth in the entire economy.
It's really simple: good economic policy requires that more and more Americans make higher wages, not that more and more Americans make lower wages.
Unfortunately, market forces by themselves do not yield that result. For that to be the case, you have to have strong unions like the United Auto Workers -- whose demands for good wages helped create the American middle class after World War II.
If we allow the unionized American automobile industry to collapse, we will accelerate the reduction of middle class incomes for everyone. That collapse would start a tidal wave of lower wages and, in turn, lower buying power throughout the economy. The auto industry and its suppliers represent a huge chunk of the American manufacturing sector. The collapse of GM or Chrysler would throw hundreds of thousands of workers onto the shrinking job market. It would start a domino effect of bankruptcies and layoffs among suppliers and dealers all over the country.
Should the government make capital available without strings? Absolutely not. The taxpayers should demand a plan that guarantees the American auto industry has long-term viability. But that doesn't mean it should become a low wage industry. Its problems have very little to do with "bloated union contracts." And they certainly were not caused by "overregulation" or the intrusion of government into the decisions of the "private sector."Meanwhile, also at Huffington Post, Robert Borsage chimes in with an article declaring the following:
The economic problems of today's American auto industry are grounded in two catastrophically bad management decisions -- both rooted in the view that unregulated markets always yield correct outcomes. These have been exacerbated by the recent collapse of the financial markets.
This week Congress needs to do what is necessary to prevent the short-term collapse of the American auto industry. But over the long term a viable auto industry requires more than capital for auto companies. It requires a federal program to guarantee health care for all, a new approach to private pensions and a crash program to free us from our dependence on oil-powered vehicles.
It will also require a renewed commitment to strong unions and a high-wage economy that grows from the bottom up. After all, the health of every American business is ultimately grounded in the existence of consumers with enough money to buy their products.
The era of big government is over is over. In the crisis, we are, as Richard Nixon once said, "all Keynesians now." Former Clinton Treasury Secretaries Robert Rubin and Lawrence Summers, until recently notable deficit hawks, now call for substantial fiscal stimulus -- deficit funded federal spending -- to get the economy going.I think this is the opening salvo in a new progressive narrative about the role of the government and unions in protecting the economic interests of the average citizen. It’s long overdue too. The argument is that just as in the 1930s, it took a combination of government programs, union activity, and a progressive alliance to jump start an ailing economy and usher in an era of unprecedented prosperity, not just for the Astors, Rockefellers and DuPonts but for the Joes and Jills who toil in the factories, kitchens and shops of America too.
Summers whose alliterative guidelines for this year's earlier $150 billion stimulus -- "timely, temporary and targeted" -- helped to fix its mistaken focus on tax rebates, has changed his consonants. Now he says the stimulus should be "speedy, substantial and sustained," noting that some estimates on Wall Street have gone as high as "$500 to $700 billion." Rubin agreed, saying "we need a very substantial stimulus," while mumbling about needing to reduce the budget deficit over the longer run.
A major recovery program -- featuring substantial public investment -- will be inevitably the first initiative of the Obama administration. It should feature more spending than tax cuts -- investing in renewable energy and conservation, in rebuilding everything from schools to bridges to a smart electric gird, in helping cities and states avoid crippling cuts of services, in keeping college affordable, providing health care to children, and aiding those most in need.
The pick of the former presidential contender and Senate Armed Services Committee member would go a long way toward healing any remaining divisions within the Democratic Party after the divisive primaries. Also, Clinton has long been known for her work on international women's issues and human rights. The former first lady could also enhance Obama's efforts to restore U.S. standing amongst allies worldwide.
"The public has a positive view of the Democratic Party, while the GOP 'brand' is hurting. Overall views of the Democratic Party have gone from 53 percent favorable in October to 62 percent favorable now; the GOP overall has seen a 5-point drop in its favorable rating," Holland said.It then goes on to add
The 62 percent figure is the "the highest opinion of the Democrats in at least 16 years, since before Bill Clinton got elected," said Bill Schneider, a CNN senior political analyst.
"Democratic congressional leaders, much maligned this fall, have also seen a boost in their approval rating. Nearly half of those polled now approve of how congressional Democrats are handling their job, up from just a third who felt that way a month ago," Holland said.The one ray of hope for the Republicans is that the public does not want to see them completely shut out of the process. Instead, they want to see the Democrats include the Republicans in passing legislation.
"Same thing happens when you ask them about House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. Good-bad, 50-50, among voters who even know who they are," Schneider said.
It's a different story for the GOP, with just 24 percent approving of how Republican leaders are handling their jobs with nearly three in four disapproving.
Increased public support for the social safety net, signs of growing public concern about income inequality, and a diminished appetite for assertive national security policies have improved the political landscape for the Democrats as the 2008 presidential campaign gets underway.Furthermore, a lot of policies and programs initiated and supported by Democrats, going back to FDR’s New Deal are still incredibly popular. For example, most Americans still support Social Security, a favorite target for the axe by conservatives. Don’t believe me? Then consider this.
At the same time, many of the key trends that nurtured the Republican resurgence in the mid-1990s have moderated, according to Pew's longitudinal measures of the public's basic political, social and economic values. The proportion of Americans who support traditional social values has edged downward since 1994, while the proportion of Americans expressing strong personal religious commitment also has declined modestly.
Right now, many commentators are urging Mr. Obama to think small. Some make the case on political grounds: America, they say, is still a conservative country, and voters will punish Democrats if they move to the left. Others say that the financial and economic crisis leaves no room for action on, say, health care reform.Here’s what Dionne says.
Let’s hope that Mr. Obama has the good sense to ignore this advice.
About the political argument: Anyone who doubts that we’ve had a major political realignment should look at what’s happened to Congress. After the 2004 election, there were many declarations that we’d entered a long-term, perhaps permanent era of Republican dominance. Since then, Democrats have won back-to-back victories, picking up at least 12 Senate seats and more than 50 House seats. They now have bigger majorities in both houses than the G.O.P. ever achieved in its 12-year reign.
Bear in mind, also, that this year’s presidential election was a clear referendum on political philosophies — and the progressive philosophy won.
The worst advice will come from his conservative adversaries, the people who called him a socialist a few days before the election and insisted a few days later that he won because he was really a conservative. The older among them declared after the 1980 election that the 51 percent of the vote won by Ronald Reagan represented an ideological revolution, but argue now that Obama's somewhat larger majority has no philosophical implications.Yes, those two are correct in their analysis. Let’s face it. There was no ambiguity about this election. People knew what both Obama and McCain stood for. The voters weighed both candidates’ plans and policies and made a clear choice. In addition incumbent Congressional Republicans were unseated in reliably red states that had gone for Republicans for decades. Voters decisively rejected the failed conservative policies of the last eight years. For Obama to go slow, to govern from some imagined center right that is more Bush lite than progressive would truly be a betrayal of those voters. In fact, it would be a dreadful bait and switch to pull on them.
These conservatives are trying to stop Obama from pursuing any of the ideas that he campaigned on -- universal access to health care, a government-led green revolution, redistributive tax policies, a withdrawal of American troops from Iraq, more robust economic regulation.
Their gimmick is to insist that the United States is still a "center-right" country because more Americans call themselves conservative than liberal. What this analysis ignores is that Americans have clearly moved to the left of where they were four, eight or ten years ago.
Democrats won big on Tuesday but not big enough. The voters' rebuke of the GOP was brutal, though not so cruel as to hand Mr. Obama and Senate Majority Leader Harry Reid the 60 votes they needed to grease a sweeping agenda. The GOP still owns a filibuster, and that is as big a factor in this new "era" as is our president-elect.And then she adds
Mr. Obama and his party are meanwhile now the sole political proprietors of a major financial crisis. Revenues will contract, even as Mr. Obama promises tax cuts. That alone may temper ambitions on issues like health care, which Democrats may now have to approach piecemeal. But also expect to see the GOP rediscover a devotion to fiscal responsibility. Any Democratic proposal, for anything, will elicit howls of "deficit spending." Some Republicans are actually looking forward to January.Actually, Ms. Strassel is right that it won't be easy. But it's her party that will suffer if it continues to play the childish game of obstructionism. That's not the same as principled opposition, which is not only the right but the duty of the opposition party.
And let's not forget that the left has spent eight years helpfully showing Republicans how they might make life difficult. Democrats have insisted a filibuster for judicial and cabinet positions is "essential" and that a president "must" consult with the opposition. Mr. Obama himself voted to filibuster Bush picks. They don't call these things "precedents" for nothing. Democrats have also highlighted procedural tools that the right could now use to slow Senate business to a slug's pace.
So yes, it is a new day in Washington. Just don't go thinking it will be an easy one.
"She was the cornerstone of our family, and a woman of extraordinary accomplishment, strength, and humility. She was the person who encouraged and allowed us to take chances."
I assumed most people already knew that I had supported Obama. Anyone who has spent five minutes listening to my program would have known that. But if it helped to make it official, I'm happy to make it so.While I'd say that Ron Reagan has left his father's and mother's political views behind, other scions of conservatism, like Christopher Buckley, who also have endorsed Obama, have not. They simply consider Obama the better candidate in this particular race.
In the 31 months since the experiment here began, the share of working-age people without health insurance has plunged -- from 13 percent to 7 percent by one estimate -- more sharply and quickly than anyone expected, leaving Massachusetts with the lowest uninsured rate in the country. But the unexpected number of people also has translated into higher-than-expected costs. Massachusetts has been forced twice to scrounge for extra money, totaling more than $250 million this year and last, from state funds and other places.But even its biggest supporters agree that it’s less than perfect.
"It isn't like you come up with a perfect plan and turn it on and see how it works," said Brian Rosman, research director at Health Care for All, the nonprofit that runs the state's largest private health help line. "Washington needs to understand that as well."John McCain’s plan, however, could be so much worse. For starters, some believe that it would be more expensive than the Massachusetts plan. And the major part of it is completely untested. Here’s the run down of how McCain’s plan works.
Here in Minneapolis, Lynn R. Gruber, MCHA's president, said: "We treat them like gold. It's all we do, focus on these chronically ill members, what their needs are." Members get discounts on specialty drugs. Those who are particularly sick get letters or phone calls coaching them on how best to manage their ailments.Despite that the drawbacks to high risk pools are significant. Most importantly, they cost more than Obama’s plan. They cost the state more and they cost the consumer more too. Here are some quotes.
The Maryland Health Insurance Plan, the only high-risk pool in the Washington area, has been growing so fast that it needed to raise the fees on hospitals that help pay for the program and require new members to wait longer for coverage of existing illnesses -- or pay extra for it.And referring to Minnesota:
Its finances are strained and getting worse, but less so than in other states. California's high-risk pool is so strapped that it put a limit on enrollment this year and lowered the maximum it would spend on anyone's treatment. Tennessee's pool has had to eliminate low-income subsidies for new members. Florida's pool has not let in anyone since 1991.And the burden of high costs are also borne by those enrolled in the pool.
No one in Minnesota can say for certain how many people who need MCHA stay away because of the price or the waiting period. But the American Cancer Society says that only a tiny fraction of the more than 100 Minnesotans it has referred to the program because they were rejected by insurance companies ever signed up, according to Stephen Finan, the society's associate director of policy.So, higher costs for the state and the consumer and also higher deductibles and less coverage. It is, of course, better than nothing. But as even one of its own top administrators admits, this is a stopgap measure, not a solution to the health care crisis.
As another sign of the financial burden, an increasing number of MCHA's members lately have been choosing to pay more out of their pockets -- deductibles as high as $10,000 -- in order to have less expensive monthly premiums.
Still, even MCHA's most ardent supporters believe a risk pool is not the best solution for those who are hard to insure. "It is not a panacea. . . . We need to be moving in the direction of universal coverage," said Gruber, who has run MCHA for 18 years. "No one should be rejected because of their health conditions. Our federal government has failed us . . . if we are still here in five or 10 years."As I said at the beginning, the contrasts in these two different approaches couldn’t’ be more different. Nor could the response of those most intimately involved with them. On the one hand, there’s the Massachusetts approach that Obama favors. Both citizens of that state and those who work with the program are enthusiastic about it. Its main drawback is higher than anticipated cost.