Editore"s Note
Tilting at Windmills

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July 17, 2009

AP RESPONDS, DEFENDS HEALTH CARE PRICE TAG.... On Tuesday, House Democratic leaders unveiled a health care reform package, which they said cost about $1 trillion over 10 years. A CBO score agreed. On Wednesday, the Associated Press, initially citing an unnamed Democratic staffer, put the cost at $1.5 trillion. Yesterday morning, the AP simply repeated the higher figure as fact, making no mention of the dispute. Other news outlets, following the AP's lead, ran with the $1.5 trillion price tag.

I spoke yesterday with Paul Colford, the AP's Director of Media Relations, who offered this explanation for the wire service's reporting.

The Congressional Budget Office score of $1.04 trillion that the Democrats cite is the figure for the new health insurance "exchange."

However, that is a net figure, including about $237 billion in revenue raised from employer and individual mandates -- fees paid by those who don't provide or purchase care. Thus, if you look at costs, the score on that is about $1.27 trillion.

There is also a separate piece of the bill covering Medicare. It includes about $350 billion in new spending (the biggest single piece is for the so-called "doc fix," which involves the payment rate to doctors under Medicare).

Soon after, the AP published a report, explaining the cost estimates in more detail. It shows the reform package costing $1.65 trillion over 10 years.

I'm encouraged by the fact that the AP acknowledged the questions raised about its reporting, and took the time to communicate directly with bloggers like me. That said, the explanation does not necessarily put the matter to rest.

In fact, some of the original objections remain salient. As Greg Sargent explained yesterday, "[A]gain, the problem is that we don't yet know what the bill will cost in the end. Estimates differ. House Dems argue that it's reckless to assign a hard and fast cost before the CBO has completed its score. Yet the AP keeps describing the bill as a '$1.5 trillion plan,' without registering the Dem objection -- and without including the CBO's initial analysis. Even if you agree that the bill is likely to cost this in the end, it's still reckless of the AP to keep treating this number as established fact, when it simply isn't any such thing."

What's more, I'm also wondering about the timeline of events here. The AP began reporting the higher figure as fact on Wednesday, citing an anonymous staffer. Did the wire service come up with the more detailed analysis before or after it began reporting the number, or did it go back after the fact to justify the earlier reporting? (For that matter, if the more granular look at the costs pointed to a $1.65 trillion estimate, why not use that number?)

At a minimum, given the uncertainty or the process and the estimates involved, it seems only fair for the AP to at least acknowledge the basis of the dispute, rather than characterize the $1.5 trillion figure as established fact.

Steve Benen 8:05 AM Permalink | Trackbacks | Comments (14)
 
Comments

Ben Nelson of Nebraska is all over the networks this morning, does no-one in Nebraska need healthcare? He is fighting it tooth and nail, or perhaps he is getting too much money from the healthcare industry.
Would love to hear the comments from the people in his state.

Posted by: JS on July 17, 2009 at 8:23 AM | PERMALINK

This is shaping up to be the legislative issue of our time, and rightly so. Those who do not support it will forever be tarnished, with adversaries pointing to a 'nay' health care vote time and again. But it may not matter for many legislators (like Nelson), who have already weathered many seasons in Congress, who may be on their way out soon anyway, and who have buttressed their personal fortunes via largess from status quo interests. There is no defensible rationale for being against this other than the maintenance of greed.

Posted by: terraformer on July 17, 2009 at 8:34 AM | PERMALINK

Prediction: "price creep" will plague this bill and militant liberals will slander anyone who cites any study that shows the costs rising under this new health care bill.

Posted by: Al Jr. on July 17, 2009 at 8:37 AM | PERMALINK

1.0 trillion or 1.65 trillion, either one is dirt cheap. I think we spend something around 3 trillion per year on healthcare and have about 15% uninsured and plenty more underinsured. Doing the math, to extend coverage for the 15% one might expect to pay 450 billion a year. 100 to 165 billion sounds good to me, especially if the top 2%ers pay a more appropriate share.

Posted by: hopeful on July 17, 2009 at 9:14 AM | PERMALINK

Why do media outlets deliberately set out to damage the government's position this way? Simple. There's no punishment for doing it, and no penalty for being wrong.

Posted by: Mark on July 17, 2009 at 9:39 AM | PERMALINK

Hopeful argues the case properly Steve, while you do not.

Your storyline over the past couple of days has been "AP is the Villain!! (BOOO!! HISSS!!) And even when they are right, they are wrong!!"

I expect better than that from you & from Washington Monthly.

Posted by: sidewinder on July 17, 2009 at 9:42 AM | PERMALINK

Nebraska has two insurers that write almost 70% of the coverage in the state. Guess who gave a lot of money to him?

Posted by: ComradeAnon on July 17, 2009 at 9:50 AM | PERMALINK

If the AP wants to make that kind of media sausage, they also need to include the GDP gains from people provided with health care who are able to keep working.

Posted by: serial catowner on July 17, 2009 at 10:16 AM | PERMALINK

So the AP accepts the CBO score when it's high enough, but does its own estimates when it isn't high enough(i.e. enough to scare "moderates" and stop the legislation)?

Posted by: Allan Snyder on July 17, 2009 at 10:17 AM | PERMALINK

Please forgive my delusional spluttering. I simply need to maintain my delusions in order to function. When actual reality is revealed I of course realize I am nothing but a well used Repiglican Butt Plug. That is, indeed my sole and real function on this Earth.

Posted by: Al Jr. on July 17, 2009 at 10:43 AM | PERMALINK

In my humble opinion, this particular incldent by the AP is small potatoes compared to the larger damage it does on a daily basis by the slanted and incomplete nature of its overall coverage of the healthcare -- or any other -- public debate.

The once proud reputation of the AP is long gone.

Why ask the question? It is obvious to anyone with the least bit of life experience that someone fed them the $1.5 trillion number. The breakdown of that number was obviously important information but it took a while for their "source" to cobble together enough assorted bits of healthcare-related stuff to make that number.

But the bigger issue is -- so what if it's $1 trillion or $1.5 trillion? Go look up what we currently spend for healthcare. I thought the president's idea to remove some income tax deductions to fund part of this was excellent.

Posted by: karen marie on July 17, 2009 at 11:23 AM | PERMALINK

The AP is not to be trusted anymore regarding political news. They should be disregarded when it comes to anything political because they have an obvious axe to grind. This should have been obvious long before now. They are only good for learning about things such as plane crashes or other such disasters. If I want to know anything about politics, I certainly wouldn't go to the AP for it, at least for the past year or two.

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