Harry Reid defends the deal made with Sen. Ben Nelson for the so called "Cornhusker Kickback" that the media and especially Fox has been happy to pile on about as proof of the entire process of negotiating the health care bill has being nothing but dirty back room deals and Democratic corruption. During this interview Greta Van Susteren hammers Reid about why the deal wasn't offered to all of the states right off the bat.
Harry Reid shoots back at her for Fox loving to "berate anything that is Democratic in nature" and he's right, especially in this instance. Dave Dayden at FDL wrote this post back in January about what's been wrong with the media narrative on the Nelson deal:
Why The Cornhusker Kickback Raised So Much Attention:
Karen Tumulty picks up on a general awareness out in Massachusetts of Ben Nelson’s Nebraska Medicaid deal, which was used as a symbol for the tainted process of the health care reform debate. [...]
Based on my own conversations, that seems accurate, and also completely insane. Ben Nelson’s Medicaid deal is about the least offensive thing he’s ever done in the United States Senate. He got poor people in his state a good deal for health care, and ensured that enough state governors would vocalize their frustrations about it that this Medicaid expansion would essentially be federalized, which is really good policy. No liberal validators tried to contextualize that element of the deal. [...]
The reason that conservatives seized on the Nelson deal was because it applied to a narrow sliver of easily demonized poor people in a red state. A lot of powerful people in right-wing media saw the opportunity to use the kickback to define the legislation as giving benefits to “other” people. It turns out that the bill pays for the “other,” with the other defined as pharmaceutical company profits, for example, in a multitude of different ways, but only the Nebraska deal fits with a right-wing critique of government as helping the hated poor who should be able to help themselves. That’s why it lodged in the minds of conservatives who heard about it endlessly on Fox News and AM talk radio.
As Dave also wrote before anyone knew how the negotiations were going to go back in January, Ben Nelson’s Medicaid Deal About To Get Much Better Or Much Worse:
It’s clear that the so-called “Cornhusker Kickback,” Ben Nelson’s deal to have the federal government pick up the cost for the expansion of Medicaid in Nebraska, will not survive to the final bill. What form the kickback will eventually take is not clear, and according to Live Pulse, Nelson is in negotiations to move it in one of two directions, which are truly diametrically opposed from one another. [...]
Expanding the deal to all states would essentially federalize the Medicaid program at a certain income level. To maintain quality across the nation and streamline the program, it should ALL be federalized, but this would be a step in the right direction. [...]
Incidentally, I want to reiterate what I said yesterday about this deal, and how telling it is that it’s practically the only piece of pork that Republicans have decided to criticize. [...]
More than “telling,” it’s actually expected – anything that helps poor people is “outrageous spending,” while the run-of-the-mill corruption and huge public subsidies from corporate welfare are hardly ever criticized. It’s stunning not only that Republicans are getting away with this, but that liberals are actively helping them.
As Dave noted in both posts, there are plenty of other things to be upset about with the way this bill was negotiated and who it benefits. Why the Democrats didn't do a better job on this Nelson deal and their messaging is beyond me. Harry Reid attempts to do that here but it's a bit late now. The damage is done and even though the Nelson deal went the right way and ended up being applied to all states, the media is going to use this nonsense as an example of Democratic corruption. One which harms poor people if the Republicans would attempt to roll it back later. Reid at least is standing by the decision and explaining it now. He needs to be doing this somewhere besides ClusterFox. Their viewers are going to hear nothing but "Cornhusker Kickback" being used as a talking point for the next year or two with no context ever given to it.
Transcript below the fold via Nexis Lexis.
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