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AHIP: Politicos Talk Health Reform to Insurers

SAN FRANCISCO -- In a speech filled with zingers, Republican presidential hopeful and Minnesota governor Tim Pawlenty said he respects Rep. Paul Ryan (R-Wis.) for broaching the topic of Medicare reform, and says he'll have his own plan out this summer.

But first, Pawlenty joked to those meeting here for America's Health Insurance Plans' (AHIP's) annual conference, "All you really need to know about healthcare reform or government reform more broadly, on any given weekend, is go to an open bar where the refreshments are free. Then go to a cash bar where people have to pay for their drinks. If people don't have financial incentives to make wise decisions ... they consume it very differently."

Pawlenty said open-bar weddings are certainly more fun, but the government can't afford to give out all that free booze.

The open bar in this scenario, he said, is the current healthcare system, in which patients don't really know how much medical goods and services cost, because their insurance company gets the bill. The costs of healthcare need to be more transparent so patients can make informed choices, Pawlenty said.

"No business will ever work where consumers are unaware of costs and providers bill totally on volume," he said.

And the Affordable Care Act (ACA) just makes things worse, he said, and called for the law's repeal.

"Repeal the whole thing and start over," he said.

Pawlenty focused much of his speech on the need to pay doctors and other healthcare providers for providing high quality care rather than for providing high quantities of care.

When asked whether he supported provisions in the ACA that seek to test new methods of paying healthcare providers, he brushed them off as mostly "pilot programs run by the government."

Nor did he offer any support for the Independent Payment Advisory Board (IPAB), a panel of government-appointed experts established by the ACA that will be tasked with cutting costs of Medicare while maintaining its quality.

Former senator Tom Daschle (D-S.D.), who took to the stage with former senator Judd Gregg (R-N.H.) later in the day, defended the IPAB and said it's crucial because Congress "is not constructed" to make difficult decisions on Medicare.

"I can't think of anything in the ACA that is more important than ultimately giving some real authority to someone to make these tough decisions," Daschle said.

When asked about the Ryan plan to reform Medicare, Pawlenty said he agrees with it "directionally" and congratulated Ryan for taking the risk of introducing it.

Paul Ryan Considering Run For Open Wisconsin Senate Seat | TPMDC

Rep. Paul Ryan (R-WI), who's become a national figure thanks to his role as budget guru for the House leadership in the 112th Congress, says he's considering making a run for the U.S. Senate being vacated by Sen. Herb Kohl (D-WI).

"I was surprised by Senator Kohl's announcement," Ryan said in a statement posted to his Congressional campaign website . Ryan said he's going to "take some time over the next few days to discuss this news with my family and supporters before making any decision about how I'm best able to serve my employers in the First Congressional District, our state and nation."

The Wisconsin race is already expected to be a highly nationalized one, with Democrats battling to keep the seat in the midst of fallout from this year's epic fight between state workers and Gov. Scott Walker (R). Ryan's entry into the contest would add another level of national focus, as Ryan's plan to end Medicare as we know it, as part of the House budget plan he wrote, has become a national rallying cry for Democrats.

For their part, Democrats say they've got a full field of potential candidates at their disposal, including former Sen. Russ Feingold and Rep. Tammy Baldwin.

Read Ryan's full statement:

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