Nolan Chart
Home Be a Columnist Logon Columns Survey FAQ Newsletter Contact Print Ads Banners Links

The Blinding Truth
columnist: Lonnie Dalton

Like This Article?
Thumb It!
2 thumbs so far

Topic: Health Care
In Memory of the HMO Maestro

The surprising champion of HMOs. Surprising because of his recent utter outrage over the very concept.
by Lonnie Dalton
(libertarian)
Friday, August 28, 2009

Usually, my articles have had an academic feel.  This one initially was a bit more "bloggy."  But then a commenter made a reasonable point which prompted me to edit and add.  Still more "bloggy" than usual.  

The timing of this is somewhat unfortunate but also quite coincidental.  Considering that health care is THE topic at this moment in time in America, I suppose it is no time to pull punches, or good information, just to be overly courteous.  And then I think further, and realize the other side is likely attempting to use the same unfortunate circumstance to their advantage, and I realize my pause (except to show that I do have a heart) is too silly to worry about.

Since I am attempting to resecure a position in radio, I was listening to an MP3 from me being on a radio show during my "political activist" phase in the midst of the 2008 primaries, and one of the things brought up was health care.  A fellow guest mentioned how Ted Kennedy was so outraged over the state of health care and particularly HMOs, even though he was as responsible as anyone for the rise of HMOs to begin with!

I decided to look into it, and it is true.


So here's a rough sketch for the makings of a great anti-ObamaCare commercial:

1. A video of Obama speaking in Virginia, saying how he's happy to take on the health care problem, but he doesn't want "the folks" who created the health care "mess" to do "a lot of talking." He wants them to "get out of the way so we can clean up the mess."
(many videos available, so its searchable, but here's a specific one available as of 8/27/09 ).

2. One of the things these "health care reformists" rail against is the EEEVIL HMOs. (No reference needed, but easy source to find)

3. Ted Kennedy was the sponsor of the 1973 HMO Act.
(as noted throughout the internet, but here's a specific page at the Kaiser Health News site available as of 8/27/09)

4. Five years after sponsoring the Act, Kennedy admits to being the proud sponsor of the '73 HMO Act, and sounds off on the virtues of HMOs. 
("Ted Kennedy on HMOs: Then and Now" available as of 8/27/09).

5. So... should the Democrats, who are the ones "responsible for creating the mess" stop doing "a lot of talking"? 


I think that'd be appropriate.  And indeed helpful.

It should be noted that Nixon signed the 1973 Act, but Kennedy was the sponsor.

It should also be noted that as the aforementioned commenter said, HMOs did exist prior to 1973, so Kennedy didn't "create" them.  What he did do was be as visible of a champion as anyone in the act that made HMOs prominent on the American landscape.  The 1973 act was used as a method to use the "gatekeeper" aspect of HMOs to get Medicare and Medicaid costs under control.  The act required employers above a certain size to offer HMOs as options if they were available.  HMOs were subsidized which resulted in artificially lower premiums and more HMOs being created.  Thus many people joined HMOs who would not have otherwise.  

The act also removed barriers to the spread of HMOs, including pre-empting state laws that kept doctors from being paid for not providing care.  

So the "lack of patient choice" so often cited in appeals for "health care reform" are very much a result of... previous government health care reform.

The original implied point of this article holds - considering Mr. Kennedy's emotional outrage at the topic, you certainly would think that if he had the ability to influence the decision of whether HMOs would prosper, he'd have tried to stop them in their tracks.  Yet, he was their champion.  

His lack of candor, humility, or responsibility about his historical role and responsibility is the point here, as much as anything.  

A supplemental point is Kennedy as a specimen of that political species that after showing no consideration of the potential negative consequences of legislation they support, will later use those negative consequences that they created to seed further government meddling.   

Obviously there are more specific reasons to oppose ObamaCare, but this info implies two simple points:

1. If the Democrats are right, and health care is facing real problems, in essence, considering history, their big solution is to just "use a bigger hammer."  Despite obvious proof of their inability to foresee problems, prior government involvement that didn't work just means its time for more government involvement.  

2. To the extent they're aware of their previous actions (always a good question), they are being disingenuous with their outrage, as though this situation has only come about because the government has not been allowed to control the situation.  But by any reading, one must conclude that this legislation changed the rules of the game and HAS to be credited with helping to cause the current situation.

One can make the previous two arguments without believing there is a "health care mess" - they are "even assuming you are right" arguments.  I for one believe there are problems that need to be addressed, but don't see how a FURTHER separation of customers from payment for the services and goods could ever solve a cost problem.

For a good background on the history of the HMO legislation, its context, effects (including cost), and other good stuff including Kennedy quotes, check out this well-cited article - "Blame Congress for HMOs", by Twila Brase, available as of 8/27/09).

Lonnie Dalton


An ealier article by Twile Brase -[link edited for length] 

The 1973 Act itself, as amended over time -[link edited for length] 

An article on the history of HMOs - [link edited for length]

HMO Wikipedia article - [link edited for length]

Nixon's statement upon signing the 1973 Act - [link edited for length]

Did you like this article?
If you did, Thumb It!
2 thumbs so far

©2009 Lonnie Dalton, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Friday, August 28, 2009
Last modified: Friday, August 28, 2009

The views expressed in this article are those of Lonnie Dalton only and do not represent the views of Nolan Chart, LLC or its affiliates. Lonnie Dalton is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.

Report violation by Lonnie Dalton of Nolan Chart LLC's terms of use policy.


More Articles By Lonnie Dalton

Be A Columnist
Tell A Friend About This Article
Leave A Comment

Reader Comments:

Posted By: Walt Thiessen
Date: 2009-08-28 04:53:15

I'm no fan of HMOs or Ted Kennedy, but this article needs some balance to it.

First, as the wikipedia article on the subject states, HMOs have been around since 1910, long before Ted Kennedy was born.

Second, Kennedy may have sponsored the 1973 bill, but ever since then HMOs were the darling of the conservative Republican Party (which also supports Medicare and Medicaid, not to mention the FDA, by the way), in preference to actually reducing government involvement in medicine. Trying to bury that fact by rewriting history to make it sound like it was all Kennedy's idea is disingenuous at best and just plain lying at worst.

Report violation


Posted By: gene
Date: 2009-08-30 11:11:16

not to mention neo-conservative rather the libertarian, which is the attempt to free us from special interests whether they originate from the left OR the right.

Report violation


Want to comment on this article? Leave your comment here. Your email address is required to track your comment. However, we will neither publish your email address nor distribute it to other organizations or persons. The only reason we might use it would be if we needed to contact you regarding your comment. All comments are subject to our terms of use policy.

Leave A Comment

Your Name:  

Your Email Address*:  

Your Comment: