Blumenthal backs Medicare for all
As Sen. Richard Blumenthal navigates his way through a thicket of universal health care plans in Congress, he’s backed one that would end a role for much of private insurance, a key industry in Connecticut that packs political punch.
His endorsement of a Medicare for All measure advanced by Sen. Bernie Sanders of Vermont is one of several routes to universal health care, a priority of his, Blumenthal said in an interview.
Blumenthal said the debate shouldn’t “preclude private insurance from coming to the table and offering solutions.”
“They have failed to do so so far, and if they want to be part of this conversation, they need to change their business model because it’s no more business as usual,” he said.
“My goal is universal health insurance,” Blumenthal said. “And that’s why I’ve endorsed a variety of different solutions. Any one of them will be tremendous progress toward that goal. I am not in favor of abolishing or eliminating private insurance for its own sake.”
Aetna, Anthem, Cigna, ConnectiCare, Harvard Pilgrim and United HealthCare employ more than 17,000 people directly and support another 31,000 indirectly in Connecticut, according to a recent study by the Connecticut Economic Resource Center.
Combined, the insurers generate $15 billion a year in economic output, according to the study.
The Connecticut Association of Health Plans, an industry group, did not respond to requests for comment.
Julie Chubet, a Southington health broker and president of the Connecticut chapter of the National Association of Health Underwriters, said she has lobbied regularly against Medicare for All in meetings with members of the state’s congressional delegation.
Asked if she believes she has gotten through to Blumenthal, she said, “I’ve tried.”
America’s Health Insurance Plans, an industry group, said in congressional testimony in April that the “Medicare for All Act of 2019” and similar proposals would force government insurance systems on Americans and “do nothing to address our top challenge: a growing health care affordability crisis.”
“These proposals will mean higher taxes on all Americans, higher total premiums and costs for the hundreds of millions of people enrolled in private coverage, longer wait times and lower quality of care,” AHIP said. “To put it simply, patients would pay more to wait longer for worse care.”
The Sanders bill backed by Blumenthal would establish a single, governmentrun health plan to provide coverage to all Americans, similar to traditional Medicare, which provides coverage to those 65 and older.
As he rolled out his proposal in April, Sanders — a candidate for the Democratic Party’s presidential nomination — blasted the insurance industry. “It’s all about greed and profiteering,” he said.
Other measures Blumenthal has endorsed include one introduced by Sen. Debbie Stabenow, D-Mich., that would allow those between the ages of 50 and 64 the option of buying into Medicare.
Blumenthal also backs a plan proposed by his Connecticut colleague, Democratic Sen. Chris Murphy, and Sen. Jeff Merkley, DOre., allowing individuals to enroll in Medicare before turning 65, the current mandatory age.
Asked if he feels the political impact of Connecticut’s insurance industry, Murphy said his approach is no more popular with the industry than legislation proposing to abolish private insurance.
“Insurers don’t want to be legislated out of business, but they’re not super-enthusiastic to compete with Medicare,” he said.
Gary L. Rose, professor and chairman of the Department of Government, Politics and Global Studies at Sacred Heart University in Fairfield, said Blumenthal — elected five times as Connecticut attorney general and twice to the U.S. Senate — is “very comfortable and has a safe seat.”
Still, he said, “It’s risky to talk about a public option and Medicare for All.”
“I think it does put him in a more vulnerable position should he decide to run again,” Rose said. “It’s really quite surprising. Normally, he’s pretty cautious. It’s somewhat a little surprising he’d go out on a limb.”
Rep. John Larson sees a similar reaction from the public. His House district includes Hartford and the headquarters or offices of Aetna and United HealthCare and Cigna Corp. in Bloomfield.
“I don’t see a clamor, ‘Hey, can you change me?’” he said.
Larson backs a Medicare buy-in because he said it’s revenue-neutral, making it a “more affordable plan.” In addition, “it keeps insurers in the game,” he said.
Connecticut and Hartford have been home to the insurance industry, including health carriers and property casualty companies, since America’s early years. Aetna, now a subsidiary of CVS Health Corp., was founded in Hartford in 1853.
The industry can fight back, too, when it feels threatened. State legislation this year calling for more extensive government involvement in health insurance with subsidies and an individual mandate fell apart in the General Assembly under pressure from the industry.
John Aloysius Cogan Jr., an associate professor of law at the University of Connecticut, said the two biggest risks for members of Congress from Connecticut are backlash from state-based insurance companies and moderate Democrats who favor a market-based approach to health care.
He cited the role of thenSen. Joseph Lieberman, IConn., in killing a public option portion — direct government involvement in health insurance — of the Affordable Care Act in 2009.
“Threats to the insurance market are taken very seriously,” Cogan said in an email. “A Connecticut member of Congress who seriously pushes for (Medicare for All) risks unleashing the wrath of the insurance industry.”
Blumenthal acknowledges that major health insurance legislation will not be approved before Congress ends its session in January 2021. Any initiative that passes the Democraticled House of Representatives would die in the Republican-controlled Senate. President Donald Trump also would block health reform moves advanced by Democrats.
Without a chance of becoming law, Medicare for All presents no risks to elected officials who support it, said Spencer Perlman, an analyst at Veda Partners in Bethesda, Md. He called it “kind of a free pass” because of GOP opposition.
“It’s a brilliant branding exercise,” Perlman said. “It’s an empty vessel. It can mean anything you want it to mean.”
U.S. politics have changed since the Affordable Care Act, or Obamacare, was enacted in 2010, making more extensive government involvement in health care acceptable, particularly among young voters, Perlman said. Still, he warned against overstating support for Medicare for All.
Sanders’ measure drew 14 cosponsors, far short of the 60-vote threshold required by Senate rules to enact legislation.
“You can triple the support and you’re still not going to win,” he said. “There’s still a long way to go.”