Analysis: Republicans grapple with healthcare issue

WASHINGTON Wed May 18, 2011 2:09pm EDT

Former Massachusetts Governor and likely Republican presidential candidate Mitt Romney uses a powerpoint presentation as he speaks about the healthcare plans he backed as Governor during a stop at the University of Michigan Cardiovascular Center in Ann Arbor, May 12, 2011. REUTERS/Rebecca Cook

Former Massachusetts Governor and likely Republican presidential candidate Mitt Romney uses a powerpoint presentation as he speaks about the healthcare plans he backed as Governor during a stop at the University of Michigan Cardiovascular Center in Ann Arbor, May 12, 2011.

Credit: Reuters/Rebecca Cook

WASHINGTON (Reuters) - The troubled healthcare industry, recently a problem for Democrats facing voter anger over President Barack Obama's overhaul law, is now plaguing Republicans hoping to take the White House in 2012.

The health law proved a liability for Democrats in the November 2010 elections, as Republicans surged to big victories in Congress by labeling it and other Obama-backed programs as heavy-handed intrusions of big government.

But unhappiness over healthcare has begun to infect Republicans seeking their party's presidential nomination -- particularly concerns about Republican efforts to revamp Medicare, the popular government-run healthcare program for older Americans.

"Republicans have been so brilliant at framing what should have been a great Democratic success as too much government," said James Morone, an expert on politics and healthcare policy at Brown University in Rhode Island.

However, he added: "It's much harder to argue against big government when you're targeting popular programs. So they have a rather tricky argument to make."

The Republican most prominently caught in the debate has been Mitt Romney, considered a front-runner in the nomination race, who has struggled to separate himself from the state healthcare plan he crafted as governor of Massachusetts, dubbed "Romneycare" by the same conservatives who deride the president's revamp as "Obamacare."

Neither political party can dodge the issue of how to deal with healthcare costs, which are a staggering $2.5 trillion per year and growing as prices rise and the population ages. With government programs covering about half that cost, the system is a huge contributor to the yawning deficit.

Obama has cited the Massachusetts program as a model for the federal healthcare law he steered through Congress in March 2010. Similarities between the two programs are seen as the biggest challenge to Romney's presidential ambitions.

"The debate over Obamacare and the larger entitlement state may be the central question of the 2012 election," the Wall Street Journal wrote in an editorial slamming Romney on May 12, the day Romney gave a speech seeking to draw distinctions between his plan and Obama's.

"On that question, Mr. Romney is compromised and not credible. If he does not change his message, he might as we'll try to knock off (Vice President) Joe Biden and get on the Obama ticket," the newspaper wrote.

FUROR OVER MEDICARE

Opinion polls show a broader problem for Republicans is the party's push for cuts in Medicare, particularly a proposal by U.S. Representative Paul Ryan to turn the fee-for-service plan into a program of vouchers that the elderly would use to purchase subsidized health insurance from private insurers.

The Republican budget plan passed by the House of Representatives last month would repeal the Obama healthcare law, scale back spending on the federal-state Medicaid healthcare program for the poor and implement the plan from Ryan, chairman of the House Budget Committee.

With polls showing two-thirds of Americans prefer to keep Medicare in its current form, Democrats have been rushing to take political advantage.

"Ending Medicare as we know it is the new GOP litmus test," White House communications director Dan Pfeiffer crowed on Twitter on Wednesday.

The Democratic Congressional Campaign Committee has begun making automated calls about the Medicare plan in 20 districts. And party leaders are seeking to make a special May 24 congressional election in New York a referendum on the Republican Medicare plan.

"Candidates already are capitalizing on this issue and using it to say Republicans are outside the mainstream," Darrell West of the Brookings Institution think tank said.

The issue has caused a rift among Republicans. Newt Gingrich, the former House speaker who launched his bid for the presidency last week, called Ryan's plan "right-wing social engineering" and said there were other ways to save money from a program struggling with skyrocketing healthcare prices.

Ryan and other Republicans have struck back at Gingrich, saying he misunderstood the Ryan plan.

Gingrich also expressed support on a Sunday television show for the individual mandate, a core provision of the Obama healthcare law that requires individuals to purchase health insurance.

The mandate has enraged activists with the conservative Tea Party movement and has drawn legal challenges from opponents who say the government has no right to force Americans to buy insurance.

But in an about-face on Monday, Gingrich's campaign issued a statement saying he is committed to completely repealing "Obamacare." Gingrich also personally apologized to Ryan.

But Democrats still face a tough fight convincing the public to embrace Obama's healthcare law, well over a year since it passed, apart from the pending legal challenges.

Public opinion is split, with 41 percent of Americans favoring the law and 41 percent opposed, according to a Kaiser Family Foundation poll.

Morone said that if Democrats want to win the healthcare debate, they must convince Americans they will benefit from plan provisions, such as the ability to keep their children on their health policies until they are 26.

"Republicans want to say 'This is big government run amok.' That has always worked for them, and unless the Democrats get very specific, it will always work for them."

(Editing by Mohammad Zargham and Paul Simao)

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