Legal Commentary

Dems Do Not Know How To Bargain: Example XXX

By Big Tent Democrat

Matt Yglesiasdemonstrates again that Democrats do not know how to bargain. In this case, he points to the fact that insurance companies are running ads against the health bill. Yglesias states that:

The fact of the matter is that even though the new mandate/subsidy structure will give at least some insurers a bunch of new customers, the medium-run trajectory of reform is bad for private insurers.

Let's suppose it is. That has little to do with the health insurance industry's strategy here. They are bargaining STILL. Let's accept that the status quo is their preferred result. That does not mean that they will not try and shape the bill to be more to their liking. Indeed, that is what they have done and will continue to do. More . . .

Yglesias adds:

[I]t’s also worth saying that though we’ve mostly heard about opposition to the tax on “Cadillac” health plans from unions, this policy will be very bad for insurers. The non-taxability of compensation received in the form of health insurance constitutes a gigantic and totally undeserved subsidy for the insurance industry.

It is more worthy of note to understand that the proposal most feared and loathed by the insurance industry was a public insurance option. And that is out. Sure the insurance industry opposes the excise tax. And it hurts them. But it also hurts middle class workers.

Conversely, the higher the subsidies for purchasing private insurance, something we all support, will HELP insurance companies. (That's probably why it may happen.)

The public option was the main proposal that had no losers but the insurance industry. And yet, it is out of the bill.

Having pocketed that win, the insurance industry is out for more. That's what good bargainers do. Bad bargainers celebrate the fact that good bargainers are still bargaining. You can look it up - it has a picture of a Donkey.

Speaking for me only

Full post as published by TalkLeft on January 13, 2010 (boomark / email).