The Journal Editorial Report: 10/31

" This week on The Journal Editorial Report -- bat that house and senate both rollout health care plans with a public option. As dissident doctors make plans of their own. Is a revolt brewing against the Democrats France at the AM hey that's being is already starting so just how nervous is the White House. About Tuesday's governors' elections plus. As college costs continue to soar is that. Three year degree. The answer."

" Welcome to The Journal Editorial Report I'm -- go well the public option came back this week with a vengeance with both. Senate majority leader Harry Reid and House Speaker Nancy Pelosi. Unveiling plans and includes some form of a government run health insurance program it's a sore spot for many physicians who argue that the government's. Involvement diminishes the quality of care they can give their patients. The American Medical Association irked many of its members earlier this year by endorsing a plan by house Democrats that included a public option and next weekend a dissident group of doctors plans to try to force the AMA to drop its support for the healthcare overhaul. They're introducing a resolution at the AMA's semiannual. Meeting -- calls the legislation crafted so far quote anathema to doctors and patients. Doctor Donald Palmisano was the president of the AMA from 2003. To 2004 he's a spokesman now. For the coalition to protect patients' rights a group of more than 10000 physicians doctor Thomas on a welcome."

" Thanks for being here pleasure to be and you show -- thank you OK now you've got the house and the Senate bills introduced this week should they pass. No they should not pass in their present form. Physicians certainly the physicians. That work with want to see health system reform. They went but the patient and controlled the right to buy -- cross state lines to right to life insurance -- Russert and they don't want more government involvement affect the AMA policy I'm not speak for the -- but I was there for many years. When the policy was passed it says that they'll be no further government involvement in the practice of medicine and the goal is for people to own their own policy. The goal is for people to get tax credits and for people to be. The decision maker with a physician is trusted -- these bills do not do that they increase taxes in the long run and a decreased availability of."

" Careful patient I want to get to the game in little bit later but -- that this public option against really is is described by the people who are four and as Medicare for all or Medicaid for all. Why do some doctors have a problem with Medicare it gets down to the question of reimbursements does it not for the -- charging less pain less. To the actual service cost us."

" Well it first so government should not be in the business of price fixing whenever you have price fixing what you get. From recorded history is. Decreased availability. Of the product. Ought to serve especially Medicare works yes that's the way Medicare work but it wasn't that way in the beginning in 1965 and make that point in my book on leadership. It 1801 section 1801 says no federal interference for and the practice of medicine and then late in the government said all well that's what we started but we soon have to change so positions on have a lot of confidence that what passes in these giant bills will be followed in fact. There -- concerned that something's will be followed that will destroy liberty and the second thing is the things that look good will be removed from the bill later so you don't think."

" You think that if this passes those price controls that are now part of Medicare will spread through out the insurance system in the practice of medicine do you think that is going to actually effect. The quality of care."

" Absolutely made it doesn't matter if you have insurance it can't find a doctor an olive me. Everybody can have a Medicaid caught but what good is that if there's no long a neurosurgeon in -- community. What do you do if you have a Medicaid caught in you have a patient of physician who treats Medicaid patients. But no longer can stand the practice of medicine because the cost of delivering the service. Is more than the money received and so you lose those individuals union but long lines and rationing. We have examples Great Britain we have Canada. I just got back from Australia were elected on my book and in Australia the government is giving a subsidy to people by private insurance 30% subsidy and people can pay the difference the gap. We could fix the problem of government messes it up even more by saying. Patients and physicians have the right to properly contract. If I --"

" If I guess if if if if you take Medicare patients and I know what you -- to my surgery and only pay 80%. Of Medicare is only reimburse you 80% of what it cost and I -- I -- I want you to do it all pay you 110% you can't take --"

" I do it unless I can probably contract and that's where they they become -- this -- you can probably contract we can but you kicked out of Medicare for two years overly he has taken any other Medicare trying to continue the patient. You're not allowed to receive any money from the government for that meticulous service alcoholic coercion. I call -- something that's akin to un American and if it interferes with my choice to be able to choose that the absolutely the hallmark of the free and process -- probably contract and they destroyed that."

" And these bills are let's talk about the AMA yes you bring your former colleagues here. They they support this and they support this I guess because they say we've done -- deal with with with with congress has got to get back. Higher reimbursement rate what do you think of that deal."

" Well I certainly I came out early on and and told the air mass think that was a serious mistake I think the AMA is a wonderful organization it does much good. And I like the people who in the leadership of the M had to be made a mistake anybody can make a mistake but when you make a mistake which ought to do is acknowledge you made a mistake and you ought to say say what can I do to fix it. One thing they can do is remove their endorsement. They say it's not an endorsement it's a support well let's not get into company -- be -- language when Alice you know words mean -- about one it to me when I say it and that's what the government does that mean now we have. Unless the speaker Pelosi. Calling this you know that the consumer choice of some other name in the name changes every week. Why do that what it is is a government plan with coercion and taxes and it removes a choice from the."

" Patient but the but the but the and they would say look EU want higher reimbursements we've got a -- That's what we've negotiated is what's good for doctors probably -- primary care physician --"

" Nine negotiations. I don't want to let you set. -- that I don't want you to frame the -- to me because I'm gonna lose so what did the government has said we have in a small cell we have shackles on so he has the deal. We -- give you some more money but -- horrible price fixing formula you know dog and sustainable growth rate formula connected to that they you know the gross domestic product allied -- and what it means is they price fixed so now we gonna do is we're gonna wipe out the debt we should cut to 20% now and -- be up to 40% cut. What we've got to do is change it to another formula. The premise is wrong you don't have you government my government. Do not have the right to set my fees -- in other words you think Miami."

" Kidding themselves and they may cut a deal now but five years down the road six years whenever. That Powell did pouches and come back and say we're gonna cut it anyway is okay."

" It's gonna end up as a loss for the patients and and the physicians what they may need to say is look whatever you do first what we wanna take get a patients would allow us probably contract with the page and don't forget medical liability before when I was president the -- was not number one priority. And private contract is among the highest priorities. The public option the government option is really a government take over a Madison -- will destroy -- you could write a bill what about ten pages. By across state lines allow people to own their own and chart encourage health savings accounts those things are going to be destroyed -- these bills."

" All right doctor Thomas so much for being here. Still ahead a nervous White House gears up for Tuesday's elections but has this been already started what the governors races in New Jersey and Virginia will tell us about president Obama's first year. And the future of the democratic agenda when we come back."

" Well nobody will be watching election returns on Tuesday night with more interest than the president. Who has a lot riding on the outcomes of two governors races with democratic. -- he's running far behind his Republican rival in Virginia. The White House is best bet now seems to be in New Jersey where the latest polls and democratic incumbent governor Jon Corzine. Pulling even with Republican challenger Chris Cristi. To do contests are seen by many as a referendum. On the president's first year in office as well as an important indicator. Of the democrats' chances for passing a liberal domestic agenda. Not to mention winning in next year's congressional mid terms that Wall Street Journal's Dan hitting her. Jason Riley and Steve Moore have all been following the races. They join me now Jason so referendum on President Obama --"

" Well these are all places. That he won pretty -- a year ago 57% of the vote in New Jersey 53% in Virginia -- yes I think it's. A fair test of whether the democratic majority he ushered in a sustainable but it's also a test of whether. Republicans can regain some ground that they've lost in places like. Like Virginia we know Obama's proper policies are unpopular but whether that can be converted into -- victory at the polls is another story."

" Steve the White House is saying that in fact the democratic Canon Virginia ignored their advice he didn't bring in the president's soon enough he didn't mobilize African American voters. So this is really nothing to do with the president."

" Well I think that that's exactly wrong pollen I think you've got to put these two races in an historical context. You remember back in 1993. During Bill Clinton's -- first year of his presidency. What happened in the Virginia and New Jersey governor's races is that Republicans won both of us and you remember -- you were back to Washington backed down. Once those races are won over to the Republican column. After that the next year Bill Clinton was not able to pass a single piece of his domestic agenda and he was totally stymied and that's why you're exactly right. The about a demonstration has to be very nervous about both of these racist if they lose both of them. I think it it really puts them behind the eight ball on both health care reform and captain."

" Right the converse of that is that if they win one of them of course I'm just not a victory in New Jersey that they sell well -- on that -- we can get we can move full speed ahead. Well Leon and they should -- that same with New York 23 displays and now congressional district democratic state where there's a special election I think there's a lot at stake here all you remember at the NB. The presidential election. The press the media everyone was talking about beat Obama ascendancy the Democratic Party had found a figure for which they could ride. Bar into the future who was that figure smart charismatic and -- man of the middle that was the popular conception. In that ten months and he's governed he has proved himself to be solidly. A liberal. And I think if these losses occur it is going to question the basis of the Obama ascendancy it's going to be very difficult for them to go forward on that."

" On that basis our Jason you paid particular attention to New Jersey. But there and the Republicans been trying to make taxes an issue Chris Cristi has but. Without a lot of without a specific plan and that's a lot of independents to come in and carve out some of those votes because he's been saying all cut property taxes that the independent -- has. And I'll raise sales taxes even if Christie does pull out of victory here he really hasn't done himself any favors by running. Very vague campaign in terms of what he wants to do I mean he's going to be facing. A democratic legislature in Trenton problem and he won't have a mandate I mean how can you claim you elected to do something when you've been very unspecific. About what you plan to do so it's been a very. Bizarre campaign strategy has left an opening for this independent. The candidate. Chris that get to comment in and force -- to compete. Republican votes of course on strategy right now just. Divide and conquer and get they get the democratic base which in New Jersey could be anywhere from 3810 to 42% all right Steve you've been covering Virginia. Have taxes played a big role in that race because democratic governors there -- for eight years and they raise taxes a couple of times."

" Yet Texas have been an issue but really the big issue probably has been Obama despite the fact the administration. Has said that it's not about about a about a if you watch the TV ads especially on the Republican side of the -- what. What Bob McDonnell has been talked about over and over again. Is basically this is over a -- about the -- cap and trade legislation. On the health care and in fact creed do great -- has had a retreat from those policies because they're very unpopular and this is one of those states Virginia. There was a solidly red state in the eighty's and ninety's that's turned purple it's one of those battleground states for that for the next back."

" I believe so you're saying that if say if the Republicans do win that will test have demonstrated that in fact Virginia is not going to go the way of Pennsylvania or -- going become more solidly democratic."

" I -- I think it'll be that indication by the way there's one really interest thing. District up in the western part of the state it's been democratic for fifty years it went from Walter Mondale and Michael Dukakis and it looks like the Republican is gonna win there on the assembly race and the reason that's significant the number one issue and that district -- has been cap and trade where people -- those -- coal mining unionized workers who don't want gap -- right."

" And the Virginia races I think a pretty significant. When it comes to the cap and trade agenda and health -- will will the Democrats really not pass health care tables all these races I don't know I think it. Got to pass health care I mean may be done if they can do -- look this is a very dangerous moment for the Obama presidency. This is not 30 this is less than a year into his presidency if he loses these races the members of his party you're gonna start looking to their own interest and it's going to be I think difficult for him to govern going forward but they'll pass that their bloody minded about."

" I agree when we come back the topic on every parent's mind these skyrocketing cost of a college education so what's behind the last few speak. Tuition increases and is a three year degree. The answer."

" It's a trend that most parents are keeping an anxious eye on the skyrocketing cost of a college education according to a new report by the College Board those costs continued to rise last year despite -- Two point 1% decline. In the Consumer Price Index hit hard by state budget cuts four year public colleges raise tuition and fees by an average of six and a half percent. While prices -- private colleges rose four point 4% and room and board. And the average cost of attendance and a public four year colleges now more than 15000. Dollars a year at private colleges. The price biggest 35000. Dollars that sticker shock has led some including Tennessee senator and former education secretary. Lamar Alexander to push for a three year degree. Program at the college level. We're back with an -- and Steve Warren also joining us. The Wall Street Journal's deputy taste page editor Naomi Schaefer and we want to college costs keep rising even if the price level does for everyone."

" Well it's the third party Payer system I mean basically what you have is colleges know they can keep raising the price and they know that the government through financially programs in various grants that they get to universities both public and private. Is basically going to pick up the difference unfortunately for middle class parents it doesn't always work out that way they're not picking up all of the difference for the man. But colleges keep raising sticker --"

" Because there there's limited income limits on who gets the subsidies but the subsidies are vast their pell grants and direct grants for people there basically subsidize loans and when their subsidies for saving for school to which is how a lot of middle class parents. Parents help is so there's is facing as a kind of chasing your tail quality here yet. Tuition goes up subsidies follow and then that that people say tuition can -- again and then subsidies have to gulping."

" That's absolutely true and then in addition to that you also got a kind of arms race among the colleges and you get. A situation where first of all it turns out that parents think the colleges better if they raise -- a price so if you see a 50000 dollar cost on college which by the way it happened this year. -- on that Middlebury colleges cost 50000 dollar -- Jewish congressman bored yes that is here. Vermont you know very high cost of living -- FF a and you know that parents see that sticker price and they assume all that must be great college education so you know it's it's all the wrong incentives are in place -- colleges are spending money on things like. Landscaping and fancy food programs and Wi-Fi and bathrooms and it's really hard to figure out where inequality is."

" Have a hard time imagining I'd -- I barely used to PC we're not gonna get worse Paula College Board just reported that private loans last year for college dropped by 50%. While the public federally subsidized loans. Rose 15%. Now we also know that the congress has taken is going to disadvantage the private loan program which means that the federal program put out of business and -- got it right which means that basically colleges are gonna become a wholly owned subsidiary of the federal government you'll never get. Countervailing price pressure for those certain star Steve is this gonna lead you to a wanna -- send your kids don't college for only three years."

" Well you know Pollack haven't eighteen and sixteen year old I'm listening to these prices that name he's talking about not gonna need a big -- they erased the they're going to be equipment and other represented a magnet -- Had -- he said this is a real issue it's gonna cost about 200000 dollars to put kids through college you have to have to start asking yourself the question look I'll give up 200000 dollar just maybe that's about her way to start out your -- thing they going to college. But they only put her finger on the problem. The two areas I was looking at the inflation rates in health care and education both of those have booming cost education costs have gone triple the rate of inflation over the last decade is because the people are getting the service are the ones who were paying port and that leads to exploding costs --"

" I just isn't about the three year college cost that's funny if you go back to 1970s which we've been thinking about a lot lately. A lot of colleges actually reduce the length of their semesters and they said this was to save costs for parents. But of course the semester stayed shorter so kids not less education overall and the price is never went down. So I think you also have to kind of take -- you know big big ideas from schools about saving you money with the."

" The likelihood is that they'd find a way to charge the same amount anyway that he only -- back there a year earlier this -- Let's -- that would -- the -- that's an opportunity -- a bullet -- what would be -- but and that that the government is -- is is isn't gonna change and as if anything they're increasing the -- you -- pell grants and entitlement right now it has to be passed with an annual appropriation wanna make an automatic."

" You know there is a social aspect of this as well it's pretty well proven that. The pay off to a college education is higher lifetime earnings the demand for college now is tremendous people are just going to these colleges probably will we need is either on line. Colleges or more colleges that -- to meet."

" But -- college which college doesn't necessarily help does know now there are a lot of studies that show if you are person who got into both Harvard and city University of Arkansas and you chose the University of Arkansas your lifetime earnings would not be that much different course one solution is just improving K twelve education."

" That would that would help enormously you might get even get higher returns on people who done don't go to college or go to community -- to -- All right we have to take one more break when we come back our hits and misses of the week."

" Time now for our hits and misses of the week and first year."

" Paul I'm giving a hit to pays. Over the -- of the seven firms that he's responsible for now congress reacted as though a space aliens have landed among them were gonna give you more authority and you don't want it. No he did in fact I think we ought to establish the annual Feinberg award for federal official who -- uncommon modesty and doing the."

" The business that will be a one year prize nailed. And get a hit the Disney company that decide to give refunds to parents this week for. Who purchased the baby Einstein videos. These were supposed to of course turn your kids and to geniuses by having two year old watch a Mozart and all sorts of other shapes run across the screen and it turns out that. It didn't -- and so other nicely kind of giving a refund of course and I turned up for the average television watching for two to five -- this year this week this. Came up this week was for a 32 hours a week was that was. I'm so who knows what baby and sent."

" Jason this is a hit for Charter Schools on this study by the Manhattan institute finds the Charter Schools benefit even those kids that don't attend them. Because they put competitive pressure on surrounding public schools to improve so it turns out that competition works and public education. After all and I think opponents of school choice are running out of excuses Paul. To keep spreading threat to stop the belief that the spread of a charter school. -- the problem Feinberg in congress want to to have more power because they wanna give him over they wanna take any more responsibility that's right but he's pushing back got awesome. All right thanks and remember if you had your -- generous places that I say JR at foxnews.com. That's it. For this week's edition of The Journal Editorial Report thanks to my panel and to all of you for watching oncology -- what do -- right here. Next."