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Wednesday, September 3, 2014

Health Care Reform Articles - September 3, 2014

Follow this link to see what went on at the single-payer conference in Oakland.

http://singlepayer2014.wikidot.com/




The following clipping is fascinating. I've copied the "headlines" and pasted them below, but to get the full story, follow the hot-link at the end of the clipping. And take the time to follow the video links in the online version. Well worth the time.

8 facts that explain what’s wrong with American health care

1) Americans pay way, way, way more for health care than anyone else

Health care in the United States is expensive. Insanely, outlandishly expensive.
We spend $2.8 trillion on healthcare annually. That works out to about one-sixth of the total economy and more than $8,500 per person — and way more than any other country.

2) We pay doctors when they provide lots of health care, not when they provide good health care

The best way for a doctor to make money in the United States right now is simple: prescribe treatments.
The American health-care system by and large runs on what experts describe as a "fee-for-service" system. For every service a doctor provides — whether that's a primary care physician conducting an annual physical or an orthopedic surgeon replacing a knee — they typically get a lump sum of money.
That's how most businesses work. Apple gets more money when it sells more iPads and the Ford gets more money when it sells more cars. But health care isn't like iPads or cars. Or, at least, it's not supposed to be.

3) Half of all healthcare spending goes towards 5 percent of the population

Americans are not equal health care spenders. There's a handful of patients who use lots of medical services — and tens of millions of people who barely go to the doctor at all.
The National Institute for Health Care Management estimates that, in 2009, about half of health spending ($623 billion) went towards 5 percent of the population. On average, these are people who use $40,000 of health care annually.

4) Our health insurance system is the product of random WWII-era tax provisions

If you want to understand why we are the only developed country with an employer-based health insurance — really, the only one — then you had better get familiar with the 1954 Internal Revenue Service Tax Code.
The 1954 Internal Revenue Service Tax Code is the document in which the federal government codified into law that companies can provide health insurance benefits to workers tax-free. This affirmed a 1943 IRS Tax Court ruling that had also decreed health benefits to be non-taxable.
The early decisions were made in the context of a wartime tax code. There were overwhelming taxes meant to stop wartime profiteering and keep unions from shutting down production to extract wage gains. But when health care was protected from these taxes, it immediately became incredibly valuable to workers, and companies were able to keep it tax-free even after the war. The result is that a dollar in health benefits is worth more to a worker than a dollar in wages, because the dollar in health benefits is untaxed and the dollar in wages is taxed.
"That's a huge discount off the price of health insurance," says Melissa Thomasson, an economist at Miami University who has written extensively on the history of health insurance. "And it happened very quietly. I looked a few years ago to find out the name of who made the decision, and it's been lost to history."
Flash forward about 80 years or so, and the health insurance tax break is the biggest in the federal budget; the government loses out on $260 billion annually by not taxing health benefits. The majority of non-elderly Americans get their health insurance at work, and with good reason: the tax-free dollar can buy a lot more medical care.

5) Insurance companies have small profit margins

Health insurance companies are an incredibly easy target for any antipathy towards the American health care system. They're the ones that deny claims for the care that we want, but still charge an always rising premium for their coverage.
But here's one fact about insurers that often gets lost in the debate over health care: their profit margins tend to be relatively small. Yahoo Business estimates that the health-care sector as a whole runs a 15.4 percent profit margin. Health plans, meanwhile, have an average profit margin of 3.2 percent.

6) Getting health care in the United States is dangerous

We don't know exactly how many Americans are killed in hospitals each year, but we do know that it is a lot.
In 1999, the Institute of Medicine published a seminal report titled To Err is Human, which estimated that at least 44,000 patients — and as many as 98,000 — die in hospitals each year as results of medical errors.
Even using the lower-bound figure, that would mean medical errors in hospitals kill more people annually than "such feared threats as motor-vehicle wrecks, breast cancer, and AIDS."

7) One third of healthcare spending isn't helping

The United States spends $765 billion annually (about one third of our overall health care dollars) on things that do not make Americans any healthier.
"I'm always amazed at these conversations I have with physicians," says Amitabh Chandra, a health economist at Harvard. "They'll openly say that about 50 percent of what happens in medicine is waste, but it's hard to always know which care was wasteful and which wasn't."
Much of the waste in our system has to do with the fact that we run an inefficient health-care system, in which hundreds of health insurance plans all charge different prices for the same surgeries and scans. That requires lots of billing staff: for every three doctors in the United States, there are two administrative staff to handle all the paperwork. That's unique to the US system.

8) Obamacare is not universal health care

The United States does have a very recent, very large expansion of health insurance coverage — that's the program we all call Obamacare. It's expected to cover an additional 26 million people by 2024.
What the United States does not have, however, is universal coverage.
Obamacare doesn't eliminate uninsurance in America; instead, it cuts the number of people lacking coverage about in half. Even after Obamacare is fully implemented, budget forecasters still expect that 31 million Americans will lack insurance coverage — a bigger group than the people buying coverage on the exchanges. Our uninsured rate will still be in the double digits, hovering around 11 percent.

Massachusetts wants to upend health care. Again.

Massachusetts is running the country's most aggressive experiment in controlling health-care costs — and the first year results suggest it could be working.
Two years ago, Massachusetts set what seemed like an ambitious goal: it would be the first state in the entire country that would put a firm cap on health-care spending. By 2017, the state planned to have health-care costs grow slower than the rest of the economy — something that never happens anywhere in the United States.
Massachusetts' budget cap kicked in last year and, earlier this morning, the state reported a victory: it stayed within the 2013 growth limits.
Massachusetts set a target to have health-care costs grow no faster than 3.6 percent in 2013. New data from the Center for Health Information and Analysis (or, as its known by its amazing acronym, CHIA), shows that health costs grew by an average of 2.3 percent per person in Massachusetts.
The good news: per capita health-care costs grew slower than Massachusetts had hoped. The bad news: medical spending still grew faster than overall inflation in the state. And all of this is happening in an era when, across the country, health-care costs are growing at a slower-than-normal pace.
So while growth in health-care costs "was below the benchmark, it is also notable that the state economy also grew slowly over this period," the report notes. "Moreover, health care expenditure growth has been slowing nationwide. It is difficult to distinguish the effect of Massachusetts-specific policy … because the observed trend is broadly consistent with national trends."
The next few years will likely be a better test of Massachusetts' ability to control costs. By 2017, the state aims to have health-care costs growing 0.5 percent slower than the rest of the economy. That's a much more challenging goal to hit — and, if Massachusetts can pull it off, one that lots of other states will want to copy.

Bracing for New Challenges in Year 2 of Health Care Law

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