Pages

Saturday, May 24, 2014

Health Care Reform Articles - May 24, 2014

A progressive alternative to Obamacare

By Geoffrey Cowley
MSNBC, May 23, 2014
BURLINGTON, Vermont—Al Gobeille is not your garden-variety health advocate. For the past two decades, he and his wife have hawked fried clams, liquor and ice cream on the Lake Champlain waterfront. He’s a big man with an impish grin and a can-do spirit rooted in an earlier career as a military officer. “Running a restaurant is a lot like being an army lieutenant,” he observes as locals queue up for Maple Creemees at the Burlington Bay Market & Café, one of his company’s four venues. “You stay alive by staying alert, and you lead by getting people to believe you care about them.”
It’s an apt description of the new job Gobeille stumbled into last fall. As the chair of Vermont’s Green Mountain Care Board, this plainspoken entrepreneur is overseeing one of the boldest social experiments in Vermont’s history, or the nation’s for that matter. Under his board’s guidance, the state is creating a health care system that will insure every Vermonter—regardless of income or employment—through a public entity that defines benefits, sets uniform prices for medical services, and covers patients’ bills.
That’s the dream anyway. President Obama’s Affordable Care Act gives private insurers control of the market through 2016, but Vermont lawmakers have voted to adopt a single-payer system as soon as that federal mandate expires. If state officials can devise a viable financing plan—and keep all the critical stakeholders onboard—the transformation could come as soon as 2017.
“We’ve already agreed we want universal health care,” Gobeille says. “The challenge is to fund and deliver it in ways that everyone can live with. Some groups will benefit more than others, but we can’t leave anyone feeling ripped off. The winner-loser issue is the place where the alligators live.”
A bold alternative to Obamacare
Vermont’s plan is a radical departure from Obamacare, but it embodies the bolder vision the president once embraced as a candidate. “I see no reason why the United States of America, the wealthiest country in the history of the world, is spending 14 percent—14 percent!—of its gross national product on health care and cannot provide basic health insurance to everybody,” Obama told an AFL-CIO audience in 2008. “A single-payer health care plan, a universal health care plan—that’s what I’d like to see.”
By the time he signed the Affordable Care Act in March 2010, Obama had ditched that idea—along with the more modest one of letting consumers choose between public and private insurance plans. The advent of Obamacare was an epochal achievement, to be sure, but it leaves commercial insurers a dominant role, bets on market forces to control spiraling costs, and keeps large employers in charge of most people’s health care. Beyond the small subset of Americans (about 7% of those under 65) who buy insurance on the individual market, Obamacare simply preserves the status quo.
So four years ago, Vermont elected Democratic Gov. Peter Shumlin to pursue a bolder alternative. The legislature hopped on board, and in 2011 Shumlin signed Act 48, a law that defines health care as a basic public good, like roads, schools or potable water. It gets employers out of the insurance business by sponsoring coverage for everyone. And instead of making consumers choose among four levels of coverage with different premiums and cost-sharing formulas, as Obamacare does, Act 48 seeks to cover at least 80% of people’s essential health care costs. Under the ACA, only those who can afford gold or platinum plans get that level of security.
“I don’t think we can nibble around the edges to fix our health care system,” the governor declared again last winter, as the state scrambled to launch its private insurance exchange. “We should look at how regressive and unfair the current system is. And we should embark on the path of designing a new system that is built upon equity, fairness and common sense.”
Act 48 grew out of a report by William Hsiao, a Harvard health economist who has helped remodel health care systems in a dozen countries. Four years ago, state officials asked Hsiao’s team to assess several routes to universal care. The object of the game was to cover all Vermonters without (a) raising overall health spending, (b) cutting providers’ earnings, (c) forfeiting any federal support, or (d) increasing burdens on workers or employers.
Hsiao’s analysis, detailed in a 130-page report and summarized in a 2011 statement and journal article, make a compelling case for a single-payer system. In keeping with past national studies, his team found that if doctors and hospitals could submit claims to one central payer instead of dozens, the administrative savings alone would cut health care costs by 7% over 10 years. If the new system also took proven steps to promote wellness, curb fraud and reduce waste and duplication by medical providers, the cost of care would fall by a quarter.
Hsiao showed that by reinvesting those savings in its health system, Vermont could cover the 32,000 residents who remain uninsured under Obamacare, boost everyone’s benefits, and expand the clinical workforce—all while reducing the total amount that businesses and employees spend on care.
Taxpayers could balk
The initiative will count as a victory if it works even half that well, but alligators lurk at every turn.
The state’s first challenge is to coordinate its plans with federal agencies that administer Medicare and Medicaid and subsidize private health coverage for people without job-based plans. Medicare will remain separate from Green Mountain Care. But if the feds grant the necessary waivers, the state will pour all its other federal disbursements into one pot, starting in 2017. Those negotiations are underway and reportedly going well.
The state also needs to raise a staggering $2 billion in new taxes.  While it’s not really a tax increase—just a different way to amass the same money individuals and employers now spend on private insurance—$2 billion is still a staggering sum for a state whose entire tax base is now just $2.7 billion.
Hsiao suggested that the state levy a new payroll tax and earmark the proceeds for health care, but no one expects Shumlin to do that. “It’s too blunt,” says Gobeille. “If you suddenly started taxing every employer at 7% to finance health care, the shock would tip a lot little companies over.”
The financing plan will be a hard sell no matter how deftly Shumlin spreads the burden. But proponents believe resistance will fade if they can show people the true cost of employer-sponsored coverage.
http://www.pnhp.org/print/news/2014/may/a-progressive-alternative-to-obamacare

New Augusta hospital to lay off 16 workers

Chief Executive Officer Chuck Hays says the hospital that opened in November is overstaffed.

By Susan McMillan
Kennebec Journal
AUGUSTA — MaineGeneral Health will lay off 16 employees in July because of lower patient volumes and overstaffing at the new regional hospital.
Chief Executive Officer Chuck Hays said the fiscal year 2015 budget, which starts in July, eliminates 128 full-time jobs, most of which are vacant. Sixteen people will lose their jobs, however.
Hays said only two of the positions involve direct interaction with patients, and most are in management. Some departments will be consolidated under the supervision of one manager.
MaineGeneral has about 4,300 employees and a budget of $456 million for this year. The organization opened its $312 million north Augusta hospital, the Alfond Center for Health, in November and is making $10 million in improvements at the Thayer Center for Health in Waterville, which will consist of outpatient care offices.
Hays said the new hospital is overstaffed.
“The new hospital is more efficient, so as you get used to the building and give people time to acclimate, now it’s time to go back and right-size the staffing,” he said.
MaineGeneral also anticipates lower inpatient volumes because MaineCare – the state’s Medicaid program – is not being expanded, and the organization’s providers are managing the care of high-cost patients in new ways. Changes to a diabetic’s care, for example, may mean they need less health care overall because they don’t have to go to an emergency room or be admitted to a hospital.
The occupancy rate for beds at the Alfond Center for Health is still high, at 88 percent. It was 86 percent in December, a month after the hospital opened.
The patients being admitted have more acute needs and are staying longer, Hays said, but reimbursements are per patient.
“So whether you stay here three days or you stay here nine days, we get the same reimbursement,” Hays said.

Remarks of PNHP President Dr. Andrew Coates at single-payer summit

The following is an unofficial transcript of the remarks of Dr. Andrew D. Coates, president of Physicians for a National Health Program, at a summit on single-payer health care convened by Sen. Bernie Sanders, I-Vt., on May 21, 2014, at the Dirksen Senate Office Building in Washington.
Sen. Bernie Sanders: Dr. Andrew Coates is president of Physicians for a National Health Program. He is assistant professor of medicine and psychiatry at Albany Medical College, and practices hospital medicine at a community hospital in Upstate New York. Dr. Coates, thanks for being with us.
Dr. Andrew D. Coates: Thank you, Senator Sanders. It’s a great honor.
I’m representing Physicians for a National Health Program, 19,000 physicians who have been advocating for national health insurance for over 25 years.
Physicians have a special relationship with society. As the profession has evolved, our relationship with society has become profound, but also tangled with business. And what I has happened is almost bewildering to my colleagues many times.
We know from studies, very good research, that the majority of American physicians want national health insurance. And we know that from our daily practice because patients should have access to all necessary care when they need it. I think that question is absolutely settled in this country.
Right now there’s a scandal in the Veterans Administration, and there’s a scandal because those patients should have everything they need. And the entire country knows it. And we should all make it our responsibility to make that happen. That’s the starting point for the dialogue in our nation, and it’s the same starting point among the physicians.
What’s happened lately is that costs have been completely out of control in terms of aggregate, but the plan about what to do about those costs has been to shift them onto individuals.
So in our hospital I understand that emergency room visits are down, they’re falling. The administrators think it’s because of the co-pays, the co-insurance, the deductibles – the new forms of insurance that the patients have. But as the visits to the emergency room are going down, the number of admissions to the hospital are climbing. So the patients who are coming to the hospital are much sicker.
We practice near the southern Vermont border. Many of staff and some of our patients come from Vermont. We know this community well. It’s a community with a heroin epidemic. The needs are colossal. The poverty is severe. And we see the presentation of very advanced disease from people who have not had access to adequate primary care every day.
Patients don’t have the choice of where they can go. This system shunts them and schleps them wherever. My own doctor, several years ago, cancelled my health insurance, wouldn’t take my health insurance, because she couldn’t come to terms with the company that my employer had chosen.
And so, when you lay out the evidence, like Rob [Weissman] did, the system actually indicts itself. It doesn’t make any sense at all. If the goal were to provide all necessary care for everyone in the United States, the system we have is a failure. Way too many people are left out, there are hideous disparities, African Americans do not get the same care that white patients get, immigrants are actually left out in all kinds of different ways -- the most hideous violations of human rights in our country are the medical deportations of undocumented patients who are sick and who are sent back by air ambulance to their home country by the hospital.
And through this, it’s clear to me that physicians want to do their best as caregivers. We want to do what we learned to do. We want to apply the medical science and the human arts at the bedside in the best and exemplary way, and yet our society doesn’t organize to give us those resources.
The farther I go in this advocacy for national health insurance, I think, Why is it that the mainstream of our society is so interested in single payer? Why is it that we’re in The New York Times every week, or The Washington Post, or the U.S. Senate? And I know that the wonderful educational efforts of senators like yourself and representatives are crucial to keep the discussion going, but it’s also the simple fact that this would work.
Single payer would work. We could do this. It would be completely feasible. It could happen rather quickly. We have what it takes. We have the excellent caregivers, we have the infrastructure, and we have the know-how. So it’s something we could do.

Public Citizen’s president speaks at Sanders’ panel on single payer

Insurance News Net, May 21, 2014
Public Citizen issued the following statement by Robert Weissman, the organization’s president, on May 21:
WASHINGTON – Thank you, Senator Sanders, for your leadership in paving the way so that our country finally receives the health care it deserves, through a single-payer, Medicare-for-All system.
Today’s panel discussion is important because we know that single-payer wins the health care argument on the merits. We know that it wins with the American people, and the more they learn about single-payer, the stronger will be their support.
The problem in Washington is that we haven’t had a merits argument on single-payer. Policymakers have decreed it “off the table,” because it’s not “realistic.” By realistic, they mean, it will be too hard to defeat the health insurance industry. That can’t be the way we do policymaking, especially when the stakes are so high.
No other industrialized country follows the U.S. insurance-driven model of high-pay, bad-results. Although the details of their systems vary in important ways, every other industrialized country provides guaranteed coverage to its citizens.
As a result, those countries have far better health outcomes. The Commonwealth Fund finds that the United States performs last among industrialized countries in the rate of mortality amenable to health care -- deaths that might have been prevented with timely and effective care with a rate 68 percent higher than the rate in the leading countries. Infant mortality is so high in the United States that the best-performing U.S. states have rates twice as high as those in some industrialized countries.1
These countries get better results at far lower costs. As a proportion of GDP, we spend at least 50 percent more on health care than every other rich nation. Per person costs in the United States, by World Bank figures, are $8,608. In Germany, it’s $4,875. In neighboring Canada, $5,630.
There are many ways that our health care payment system can be improved. Indeed, the list is seemingly endless, precisely because there are so many problems. But fixing particular problems will only get us so far, because that long list of problems is a direct outgrowth of the multi-payer, private insurance system, with all of its complexities and profit-driven irrationalities.
Here are three illustrative problems that will be fixed when we move to a single-payer, Medicare-for-All system.
First, balance billing.2 This widespread problem refers to bills for the difference between the amount that an insurance company is willing to pay for treatment and a provider’s total charges. Providers who are not members of a patient’s insurance network have charged patients as much as 9,000 percent of what Medicare would have paid for the same procedure.
Patients can be subjected to balance bills despite making their best efforts to avoid them. For instance, they might receive care at an in-network facility, only to find out later that an out-of-network doctor -- even a pathologist with whom the patient never interacted -- was involved in their treatment.
This problem is a direct result of the multi-payer system, and the complicated and multiple pricing schemes between providers and insurers. Medicare and Medicaid have both essentially banned balance billing for their beneficiaries. The problem goes away with a rational payment system.
Second, executive compensation. The New York Times reported earlier this month on executive compensation at insurance companies and hospitals, noting that “the biggest bucks are currently earned not through the delivery of care, but from overseeing the business of medicine.”
Asked about extraordinary compensation for insurance company and hospital executives, the New York Times reported, “Hospitals and insurers maintain that large pay packages are necessary to attract top executives who have the expertise needed to cope with the complex structure of American health care, where hospitals and insurers undertake hundreds of negotiations to set prices.”3
One might dispute whether this really justifies the need for exorbitant compensation of hospital and insurance administrators and executives, but we know this: With a single-payer system, that “complex structure” and “the need to undertake hundreds of negotiations to set prices,” is eliminated.
And, indeed, it is the case that hospital administrators are much more modestly compensated in other countries.
Third, drug prices. The company Gilead has a new hepatitis C drug (brand name: Sovaldi) that may dramatically improve care and health outcomes for hepatitis C patients. The company is charging roughly $90,000 for a course of treatment. An estimated 3 million people in the United States have hepatitis C. The math is jaw-dropping: the country cannot afford to provide Gilead’s hepatitis C treatment at this price level. Gilead’s price is so outrageous that insurers are revolting - but with what final result, we do not know. What we do know is that it won’t be a rational result; the final price will be too high, and some people -- maybe very many people -- will very likely be denied treatment.
This example is exemplary of drug pricing trends. As drug prices, especially for biologics, skyrocket, insurers are aiming to reduce pharmaceutical use by imposing huge co-pays,4 which is certainly the wrong way to stop excessive prescribing and deliver appropriate care.5 Drug companies are circumventing these co-pays by providing coupons and direct reimbursements to patients. And so the irrational system goes.
A single-payer system would eliminate these problems by providing a fair and rational system for compensating drug makers and incentivizing new research. At minimum, it would involve a single negotiation over price where negotiating power rested with the single-payer; ideally, it would involve replacing the system of compensation via patent monopolies with something that better pays and incentivizes innovators, while avoiding the unjustified consumer rip-offs of the patent monopoly system.6
These problems, and many more, are endemic to our current health care system.
We have a cure: It is called a single-payer, Medicare-for-All system.
With a single-payer, Medicare-for-All system, we would eliminate all of this wasteful and deadly irrationality. We would - we will - finally recognize that health care is a human right, and that no one should be denied needed care because they can’t afford it.

Remarks of Dr. Margaret Flowers at single-payer summit

By Margaret Flowers, M.D.
May 21, 2014 
Thank you for inviting me to participate in this important discussion today.
The first step in the work to move to a single payer plan must be to take stock of where we are and where we are headed. We must do what we can to prevent further damage while we organize for the real solution to our healthcare crisis: a national single payer health system.
We are continuing a trend that began in the 1980s of privatization of every facet of our healthcare system. This is the opposite direction from where we need to go. If we viewed the U.S. healthcare system as an experiment, which it largely is – one that defies sound health policy – we would see that it has failed. If we treated our system as an experiment, we would be required to stop it because of the high number of preventable deaths, wide health disparities and financial ruin caused by illness and medical costs. These are our outcomes despite the fact that the U.S. spends the most per capita each year on health care, two and a half times more than the average OECD nation.
There is no affordable market solution to the healthcare crisis even though the public is being steeped in market rhetoric as we speak. The private health insurance industry has proven for decades that it defies regulation. Our market-based system will continue to increase healthcare spending, leave people out and result in poor health outcomes because the bottom line is profit, not health.  Until we change this fundamental dynamic, we will continue to fail to significantly improve the health of our population.
It is time for an honest national conversation about our healthcare system. We must ask ourselves whether we want to continue to treat health care as a commodity so that people receive only what they can afford or whether we want to join the rest of the industrialized world and create a healthcare system that treats health care as a public good so that people receive the health care they need.
The primary obstacle to a national single payer health system is political will. But we know from past experience that political will can change through public pressure. To effectively create this pressure we must recognize that the U.S. is not a legitimate democracy. It is an oligarchy, or more accurately a plutocracy. Health spending is almost one fifth of U.S. GDP. The medical industrial complex wields tremendous political influence. Therefore, single payer will only be on the table when the public puts it there. There is no easy way to do this, no secret back door. A national single payer health system will come from steadfast determination and strategic organizing and action.
As we are educating, organizing and mobilizing the public to demand a single payer health system, we need to take steps to challenge further privatization of our health system. I have three major areas of concern: the privatization of our public insurances, the trend towards more people being required to purchase inadequate insurance through the exchanges and increasing subsidies to private insurers that will be used as justification to cut social programs.
One harmful trend that should be addressed immediately is the privatization of our public insurances, Medicaid and Medicare. Currently at least 75 percent of Medicaid enrollees are in Managed Care Organizations, private administrators that act like private insurers by keeping a high percentage of their payment for administration, profits and salaries and cherry picking the healthiest patients. This percentage is expected to grow. It is no coincidence that WellPoint moved to buy AmeriGroup after the ACA was passed. They saw a huge profit opportunity in the Medicaid expansion.


No comments:

Post a Comment