Sen. Jay Rockefeller has made no bones about letting Max Baucus and the world know that he's unhappy that he and all but five of the other members of the Finance Committee have been shut out of the process of negotiating what is supposed to be the committee's healthcare reform bill. Earlier in the week, he blasted Baucus's proposal in the New York Times because the bill, unbelievably, would do away with SCHIP.
Last night on the Ed Show, Rockefeller took on another bad aspect of the proposal, the substitution of a strong public option with Kent Conrad's goofy co-op idea.
Here's the snippet (full transcript below the fold):
SCHULTZ: ...Would you sign onto a co-op? Or is that unacceptable?
SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: That`s unacceptable, and I can almost prove it.
We`ve been in touch with the folks that oversee all the -- represent all the co-ops in the country on all subjects, and they point out that there are probably less than 20 health co-ops in the country. There are only two that really work that well, one in Puget Sound, one in Minnesota.
Except for those two, they`re all unlicensed. All present health co-ops are unlicensed, they`re unregulated, nobody knows anything about them, nobody has any control over them. And nobody`s ever, they said, which is a stunning thing to me, no government organization or private organization has ever done a study on what effect they might have in terms of bringing down insurance prices.
SCHULTZ: Well, Senator, they`re talking about, if I have this correctly, putting $6 billion in start-up money.
ROCKEFELLER: Well, that all to tell you something. In other words, put $6 billion out on the table in 50 states, and then hope that somebody comes in and picks it up to start it.
Look, health insurance is complex, it has a long history. There`s billions and billions of dollars involved.
These little tiny entities that will be starting up in states where there have never been any before -- remember, there aren`t any in the South, there aren`t any in the Northeast, there aren`t any in the Mid-Atlantic, there aren`t any in the Southwest. They`re only in the upper Midwest and the Northwest.
They`re not a good idea. They`re untested. They are unlicensed. They`re unregulated. They`re unstudied.
Why would we even think about putting them in as a control on this massive insurance industry instead of the public option?
SCHULTZ: So, Senator Rockefeller, you were at serious odds then with Max Baucus and Kent Conrad on this.
ROCKEFELLER: I would guess that would be the case, yes.
Rockefeller's fight for the public option in Finance's bill has gone beyond just going on tv and talking smack about co-ops. He's also asked the GAO to investigate healthcare co-ops, since no research has actually ever been done on them to prove their effectiveness. Which would have been a task that the full commiitee would have undertaken before adopting them as a model for competition to the private insurers, if the full committee was actually writing this bill. Rockefeller writes:
Some have suggested that, instead of creating a strong public plan option, Congress should adopt a cooperative approach to health insurance coverage. Like so many Americans, I have set about the task of learning more about cooperatives--with a specific focus on how such cooperatives might be relevant to the discussion on comprehensive health reform. I have been alarmed to learn that there is a dearth of reliable information available about health care cooperatives.
He goes on to ask the GAO what specific regulatory measure exist at the federal and state level to ensure consumer protection and efficient operation of the co-op model, asking for answers by August 5.
That the Baucus Committee plowed on ahead with the co-op idea without providing any of the basic research into the model, without examining any of the existing evidence about co-ops and exploring whether they would even be feasible on a national level and with a scope that could compete nationally, is proof of Baucus's lack of interest in a public option, and lack of interest in providing far-reaching system reform. He wants to work around the edges, regulate the very worst of insurance industry practices, but basically keep his many, many friends and benefactors in the industry happy, while slapping his big red "bipartisan" bow on the thing and calling it reform.
Which is precisely why there's a growing sentiment in the Senate that committee chairs need to be voted on in secret ballot every two years. Last night on the Ed Show, Rockefeller joined with fellow Dem Tom Harkin in endorsing the idea:
SCHULTZ: And finally, could this cost Max Baucus his chairmanship? Because there`s a lot of Democrats across the country who feel like they have been undeserved, misserved, with his leadership, because no one was talking about a co-op during the campaign, and there`s talk about changing these chairmanships every couple of years.
Would you go along with that?
ROCKEFELLER: Yes, I would, but not because of Max Baucus. I mean, I just think it`s a good idea.
I`m chairman of the Commerce Committee, and I think people ought to review me every two years and decide whether they want to keep me on. But I do think it`s a good idea, but I wouldn`t knock Max.
I mean, I think he`s been wrong in his approach on this, but he surely is sincere in his approach on this. I mean, he`s worked harder than anybody I`ve ever seen. I just don`t want to have a co-op taking on the big insurance companies. I don`t want that.
Hopefully Rockefeller will be more inclined to "knock Max" in private, and help lead a revolt by the Dems on Finance who, like him, have been completely shut out of the process. They should, just on the principle that legislation coming out of their committee should actually be debated by the full committee, reject the Baucus Committee's bill. They should also reject it because it's going to be utterly inadequate to the task at hand, as should the full Senate and the White House.
SCHULTZ: There are other developments today. In the Senate Finance Committee, chairman Max Baucus is working on his own compromise with Republicans. Of course, they killed the public option all together in that committee. They have signed onto what is known as a co-op plan which I have said all along is an absolute joke.
It`s not going to work. There`s really no successful model out there to support the basis of them signing onto a co-op. Maybe I`m wrong on this. I mean, I don`t think I am.
Joining me now is Senator Jay Rockefeller, a member of the Senate Finance Committee and a supporter of a public option.
Senator, great to have you on.
Would you sign onto a co-op? Or is that unacceptable?
SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: That`s unacceptable, and I can almost prove it.
We`ve been in touch with the folks that oversee all the -- represent all the co-ops in the country on all subjects, and they point out that there are probably less than 20 health co-ops in the country. There are only two that really work that well, one in Puget Sound, one in Minnesota.
Except for those two, they`re all unlicensed. All present health co-ops are unlicensed, they`re unregulated, nobody knows anything about them, nobody has any control over them. And nobody`s ever, they said, which is a stunning thing to me, no government organization or private organization has ever done a study on what effect they might have in terms of bringing down insurance prices.
SCHULTZ: Well, Senator, they`re talking about, if I have this correctly, putting $6 billion in start-up money.
ROCKEFELLER: Well, that all to tell you something. In other words, put $6 billion out on the table in 50 states, and then hope that somebody comes in and picks it up to start it.
Look, health insurance is complex, it has a long history. There`s billions and billions of dollars involved.
These little tiny entities that will be starting up in states where there have never been any before -- remember, there aren`t any in the South, there aren`t any in the Northeast, there aren`t any in the Mid-Atlantic, there aren`t any in the Southwest. They`re only in the upper Midwest and the Northwest.
They`re not a good idea. They`re untested. They are unlicensed. They`re unregulated. They`re unstudied.
Why would we even think about putting them in as a control on this massive insurance industry instead of the public option?
SCHULTZ: So, Senator Rockefeller, you were at serious odds then with Max Baucus and Kent Conrad on this.
ROCKEFELLER: I would guess that would be the case, yes.
SCHULTZ: OK.
And who`s going to win this fight? Is this just going to come out of the Senate Finance Committee with a co-op, we`re going to end up on the floor, and then it`s going to be a donnybrook and then it`s going to go over to the conference committee and that`s where it`s going to be written?
Is that where we are?
ROCKEFELLER: I don`t think so. I don`t think so.
Look, you already have two House committees that have come out with a public option, you have one Senate Committee, the Education and Labor and Health. They`ve come out with a public option. Then you have the Senate Finance, which hasn`t come out with anything yet, and we`re meeting in about 20 minutes to see where we are.
I have a feeling the tide is beginning to move against the co-op plan, and whether that means it`s moving towards public option in the Finance Committee, I`m not sure. But if it moves again the co-op, by definition it`s got to be having an effect to help the public option. So maybe the Finance becomes irrelevant, and it`s done by the HELP Committee and the leadership, and the public option`s put in.
SCHULTZ: Yes.
And finally, could this cost Max Baucus his chairmanship? Because there`s a lot of Democrats across the country who feel like they have been undeserved, misserved, with his leadership, because no one was talking about a co-op during the campaign, and there`s talk about changing these chairmanships every couple of years.
Would you go along with that?
ROCKEFELLER: Yes, I would, but not because of Max Baucus. I mean, I just think it`s a good idea.
I`m chairman of the Commerce Committee, and I think people ought to review me every two years and decide whether they want to keep me on. But I do think it`s a good idea, but I wouldn`t knock Max.
I mean, I think he`s been wrong in his approach on this, but he surely is sincere in his approach on this. I mean, he`s worked harder than anybody I`ve ever seen. I just don`t want to have a co-op taking on the big insurance companies. I don`t want that.