McCain Could Be ‘Best Hope’ for Health Care Reform
If you were playing a drinking game while watching the Democratic National Convention this week and had to take a swig of alcohol every time a speaker uttered the word “change,” you would get plastered each night. Your hangover would last until well into the Republican National Convention next week.
Democrats are promising the most change in health care. In her rousing speech on Tuesday, August 26, Sen. Hillary Rodham Clinton, D-New York, assuaged supporters disappointed that she didn’t win the presidential nomination by promising them that Sen. Barack Obama, the soon-to-be Democratic standard-bearer, would usher in universal health care if he is elected president.
One expert in Washington cautions against such optimism. Paul Hewitt, executive director of Americans for Generational Equity, a group that promotes entitlement reform, says Obama would likely get hamstrung by Democratic majorities in Congress.
They will prevent him from making the compromises necessary to enact legislation that will undoubtedly require a lot of complex negotiations. In the same way that it took a conservative president—Richard Nixon—to open relations with China in the early 1970s, it could take a conservative president today—John McCain—to make headway on an intractable domestic issue.
“Our best hope for health reform is McCain,” Hewitt says. “A Democratic Congress is going to tie Obama’s hands. If you’re going to broker the deal, you are going to get a lot of your partisans mad.”
McCain has the advantage in that sense. The conservative Republican base is perpetually upset with him because he has made a career of compromising with Democrats on major legislation. If he wins the presidency, he’s less beholden to conservatives than ever.
McCain could cobble together a majority in favor of health care reform by combining at least one-third of the GOP congressional caucus with enough Democrats to get over the top, Hewitt says.
I took advantage of the quiet in Washington this week to meet Paul for lunch. He is a novel thinker and straight shooter, a combination that is sometimes difficult to find in Washington.
Full disclosure: Paul is a former colleague of mine. He headed the Global Aging Initiative at the Center for Strategic and International Studies when I was the think tank’s director of communications.
Entitlement reform will define the next president’s term, Hewitt says. The favorable demographic trends—e.g., more U.S. workers than retirees—that allowed political parties to squabble mindlessly over health care and Social Security for the last 25 years have dissipated. Copping out by cutting taxes while increasing entitlement spending was possible in the past.
With baby boomers potentially retiring in droves, hard choices now face President Obama or President McCain. Currently, health care spending accounts for 17 percent of U.S. economic output. The health care bite is set to grow to 30 percent of GDP by 2030.
Bringing down those numbers, Hewitt says, can’t be done by a policy that is being embraced by Obama—raising taxes on the wealthiest Americans.
“In order to solve the problem, we’re going to have to create new wealth,” Hewitt says. “The only way you can create new wealth is by not beggaring the people who make it. You cannot means-test your way or progressively tax your way to a solution. You’re going to have to go after the households getting benefits or their kids.”
He also recommends raising the eligibility age for entitlements. He also backs reducing the amount of money paid to doctors and eliminating their incentive to run more tests to increase revenue.
If raising taxes becomes central to health care reform, Hewitt says that could eventually undermine support for Obama from one of his strongest constituencies—young people in college or who have recently graduated.
Earlier this summer, Hewitt hosted a Capitol Hill summit on entitlement reform featuring about 100 young leaders.
“When you present them with the facts, they make some pretty tough calls,” Hewitt says. “Obama is going to be confronted by a group, if they focus on [entitlement reform], that is going to set themselves in opposition to a core Democratic strategy for the last 30 years, which is pandering to senior citizens.”
The supremely confident, aggressive and impatient Generation Y could blanch at the soaring costs of caring for geriatric baby boomers. “They’re going to resist having the benefits of their college education taxed away,” Hewitt says.
Either Obama or McCain is going to inherit a tough job.














