“Senator Grassley, throughout this session of Congress, has consistently sided with right wing elements which are acting as a blocking force in the Senate.  This group has fought several pieces of legislation needed by Iowans –  including the stimulus package (that he has been taking some credit for) and key 'equal pay for equal work' legislation,” said Krause.

 “Now, substantive health care reform as supported by a majority of Iowans in most opinion polls, may be the next,” added Krause.

Krause noted that late last week, Republican Grassley announced that he would oppose including a public provider (government administered plan) option on universal health care reform.   “The Grassley health care option of having only private care payers for universal health care has many problems that people need to research and find out about,” said Krause.

“This is not the first time that Senator Grassley has championed the interests of the private insurers over the welfare of the taxpayer.  The 2003 Medicare Advantage plans, which move seniors from traditional Medicare to private plans, cost taxpayers $54 billion more from 2009 to 2012 than traditional Medicare.  This was another instance of Grassley opening the barn door and letting the special interests munch on taxpayer hay,” said Krause.

“Now, Senator Grassley wants to throw these guys a few more bales,” said Krause.  “A government administered insurance plan option like Medicare will likely have relatively low overhead cost – 3 percent –  vs. 15-20 percent for private insurances.”

“I thought we had a budget crisis in health care, but in one fell swoop Grassley eliminates a bare-bones cost option for health care administration.  This reduces the pressure on private providers to keep administrative costs down and guarantees accelerated costs.  That equates directly into more fees and taxes for the taxpayer and for the patient,” said Krause.

“Grassley's plan also perpetuates the high cost of prescription drugs by eliminating the government as a strong negotiator to reduce the cost of drugs to the taxpayer and the patient.   The costs of commonly used prescription drugs are 30% to 300%  higher for Medicare, which does not negotiate drug prices (thanks to an earlier Grassley action), as compared to the Department of Veterans Affairs which does negotiate.

Third, it allows private insurance companies to “cherry pick” the best clients and leave the rest, thus creating a mosaic of high profit and low profit clients.  Iowans living in rural areas may be hurt by this mosaic simply because rural costs of service delivery are often higher because of the dispersed population.  Rural residents would likely be better protected financially under a public payer option (government administered plan) that by its nature would not be allowed to cherry pick.

I urge Senator Grassley to play the part of the statesman today – reverse his opposition to the public provider option in the upcoming health care reform package and use his position to pass – not obstruct – health care reform this year.