With all the squabbling about healthcare, there's one fact on which all sides can agree: American medicine costs too much, especially when you consider what we're getting for our money. And as experts look toward the future, they don't see costs dropping dramatically any time soon.
"We spend more on healthcare than any other country in the world, and the quality is uneven at best and dangerous at worst," said Anne Weiss, director of the Quality/Equality Health Care team with the Robert Wood Johnson Foundation in Princeton, N.J.
Americans spent $2.6 trillion on medical care in 2010, or about $8,233 per person. That's more than any other country spends to keep its citizens healthy, dwarfing the per-person price tag of even the second-biggest spender on health, Switzerland, by nearly 60%.
The price of healthcare in the U.S. is generally expected to remain high. According to the Centers for Medicare and Medicaid Services, spending will climb to $4.6 trillion by 2020. If that happens, health spending will consume nearly 20% of our gross domestic product.
Curbing the rise in healthcare costs depends on our ability to gain control of the many forces causing them to climb today.
"Probably the most important thing in understanding why we keep spending more and more money on healthcare is technology and the way patients get treated," said Sean Nicholson, a healthcare economist at Cornell University in Ithaca, N.Y. "Generally, the newer technologies tend to be more expensive than the things they replace."
Technology has helped other industries lower costs by eliminating waste and increasing efficiencies, but it's done the opposite in healthcare, said Michael Thompson, a principal in PricewaterhouseCoopers' health and welfare practice in New York. Although engineers keep building more powerful CT and MRI scanners, for example, there's no evidence that more scans are helping to prevent disease.
http://www.latimes.com/business/la-fi-future-of-healthcare-costs-20120908,0,2252590,print.story
Posted Sept. 07, 2012, at 5:58 p.m.
AUGUSTA, Maine — The state will face an estimated $20 million budget shortfall if federal officials don’t sign off on plans to reduce state Medicaid spending. Lawmakers Friday pressed the state’s Medicaid director for answers on how the state Department of Health and Human Services will fill the potential budget gap if cuts to the state’s Medicaid program are rejected by the Centers for Medicare and Medicaid Services.
The state Medicaid cuts in question would affect 36,000 people by eliminating coverage for 19- and 20-year-olds, tightening income eligibility requirements for low-income parents and scaling back Medicaid access for elderly residents who also qualify for Medicare benefits.
A spokesman for the Centers for Medicare and Medicaid Services has said only a portion of those cuts — changing the income threshold at which residents qualify for MaineCare from 200 percent of the poverty level to 133 percent — are likely allowed under the Obama administration’s Affordable Care Act, which largely prohibits states from cutting Medicaid before a 2014 expansion of the program.
The state needs federal approval before it can implement any of the cuts, which lawmakers approved as part of two separate budget packages this year.
Republicans and Democrats on the Appropriations Committee quizzed MaineCare Services director Stefanie Nadeau on Friday on the size of the budget gap they might have to make up if parts of the state’s Medicaid request are approved and others aren’t.
“The federal government seems to have indicated they’re not in a rush to make a decision,” said Rep. Kenneth Fredette, R-Newport. “We’ve booked savings. If we were to get a denial in November or December, we would essentially have a shortfall for some of the savings that we booked.”
Nadeau said the Department of Health and Human Services expects its Medicaid cuts ultimately will be approved, but a contingency plan is “something that the department is looking at and working on currently.”
“This was one of the reasons — this irresponsible budgeting — one of the reasons the Democrats would not go along with the Republicans on this issue,” said Rep. David Webster, D-Freeport.
ACA vs. single payer: Bury the hatchet? An exchange
The Nation, Aug. 28, 2012
PNHP note: The following exchange among PNHP co-founders Dr. Steffie Woolhandler and Dr. David Himmelstein, attorney Oliver Hall, and former health-insurance-executive-turned-whistleblower Wendell Potter was prompted by an article by Potter titled “Healthcare advocates: Time to bury the hatchet” in the July 11 online edition of The Nation. A link to Potter’s original article appears at the end.
By Steffie Woolhandler and David Himmelstein
Wendell Potter’s insightful critique of his former bosses in big health insurance was marred by his reprimand of his newfound friends in Physicians for a National Health Program and the rest of the single-payer movement for failing to adopt the political style of his erstwhile employer.
Potter incorrectly implies that PNHP urged a no vote on President Obama’s health reform by the Supreme Court. Some PNHP members condemned the ACA for boosting private insurers’ financial (and future political) power with a trillion-dollar infusion of public subsidies and mandated premiums. Others welcomed its expansion of Medicaid. All agreed that the reform would leave at least 26 million Americans uninsured and most others underinsured; that it would accelerate the corporate takeover of medicine and increase costs; and that single-payer reform remains an urgent necessity.
http://www.pnhp.org/print/news/2012/september/aca-vs-single-payer-bury-the-hatchet-an-exchange
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