U.S. healthcare stocks seen maintaining momentum after strong 2018
by Lewis Krauskopf - Reuters - January 14, 2019
NEW YORK (Reuters) - One of the rare market bright spots last year, the
U.S. healthcare sector remains a Wall Street darling despite a slow
start to 2019.
As 2019 begins, healthcare .SPXHC is the most favored of the 11 main
S&P 500 sectors, according to a Reuters review of ratings from 13
large Wall Street research firms, which recommend how to weigh those
groups in investment portfolios.
Healthcare shares overall rose
4.7 percent last year, one of only two S&P 500 sectors, along with
utilities, to post positive returns in 2018 as the benchmark index fell
6.2 percent.
Proponents cite the healthcare sector’s reasonable
valuations, strong balance sheets and dividend payments among many
companies, as well as the group’s upbeat outlook for earnings, which are
less susceptible to economic cycles than other businesses.
If
economic growth is slowing, some investors are wary of being too
invested in cyclical sectors that thrive during an upswing, but do not
want to be too defensive either.
“We are trying to find things
that skirt both of those two categorizations, and healthcare is a really
nice diversified earnings stream,” said Noah Weisberger, managing
director for U.S. portfolio strategy at Bernstein.
Such diversity
stems from the variety of companies comprising the sector:
manufacturers of prescription medicines, makers of medical devices, such
as heart valves and knee replacements, health insurers, hospitals and
providers of tools for scientific research.
From a stock
perspective, that means the sector includes potential fast-growing
stocks, such as biotechs that can carry more risk and more reward, or
large pharmaceutical companies and others that offer steadier, slower
growth.
Investment advisory firm Alan B. Lancz & Associates
sold some pharmaceutical holdings late last year that had posted big
gains, such as Merck & Co (
MRK.N), to move into biotech stocks it believed were undervalued, said Alan Lancz, the firm’s president.
“We
have maintained our overweighting, which is unusual for us with a
sector that has outperformed so dramatically,” Lancz said. “But mainly
there are segments within the sector that still offer opportunity.”
(GRAPHIC: Healthcare is most favored sector on Wall Street -
tmsnrt.rs/2HaLYKT)
For
2019, healthcare companies in the S&P 500 are expected to increase
earnings by 7.5 percent, ahead of the 6.3 percent growth estimated for
S&P 500 companies overall, according to IBES data from Refinitiv.
Health insurer UnitedHealth Group Inc (
UNH.N), the sector’s third-largest company by market value, kicks off fourth-quarter earnings season for healthcare on Tuesday.
“Healthcare
is one of the few sectors with high quality, above-market growth and
it’s relatively immune to the array of macro headwinds that we see out
there,” said Martin Jarzebowski, sector head of healthcare for Federated
Investors.
Healthcare shares could also benefit from
anticipation of increased dealmaking activity after two large
acquisitions of biotechs were already announced this year.
Despite
healthcare’s outperformance last year, the sector is trading at the
same valuation as the S&P 500 - 14.5 times earnings estimates for
the next 12 months - whereas healthcare on average has held a premium
over the market for the past 20 years, according to Refinitiv data.
The
sector also is valued at a discount, by such price-to-earnings
measures, to defensive sectors, including consumer staples .SPLRCS,
which trades at 16.6 times forward earnings, and utilities .SPLRCU,
which trades at 15.8 times.
(GRAPHIC: Healthcare stocks, by the numbers -
tmsnrt.rs/2H7Mnxw)
According
to the Reuters review of sector weightings, healthcare is followed by
financials .SPSY, then technology .SPLRCT. Real estate .SPLRCR ranks as
the most negatively rated group.
The healthcare sector has lagged
in the early days of 2019, rising less than 1 percent against a 3
percent rise for the S&P 500.
Some investors doubt healthcare
will maintain its outperformance. JP Morgan strategists downgraded the
sector to “underweight” last month, pointing in part to political
rhetoric possibly turning “more negative on healthcare leading up to the
2020 presidential elections.”
The healthcare sector struggled
ahead of the 2016 election, with the high U.S. cost of prescription
medicines a prominent issue during the presidential campaign. With
renewed scrutiny on drug pricing, such concerns linger.
UBS, global growth worries send European shares into the red
The
sector could suffer if investors become more optimistic about economic
growth and flee defensive stocks, while the popularity of healthcare as
an investment could work against it if the trade becomes overly crowded.
“There is risk there,” said Walter Todd, chief investment
officer at Greenwood Capital in South Carolina. But given issues
affecting other sectors, he said, “when you look around the market...you
arrive by default at healthcare, and so I think that’s why a lot of
people are interested in the sector.”
https://www.reuters.com/article/us-usa-stocks-healthcare-idUSKCN1P82A6
After Falling Under Obama, America’s Uninsured Rate Looks to Be Rising
by Margot Sanger-Katz - NYT - January 23, 2019
The number of Americans without health insurance plunged
after Obamacare started. Now, early evidence suggests, it’s beginning to
climb again.
New polling
from Gallup shows that the percentage of uninsured Americans inched up
throughout last year. That trend matches other data suggesting that
health coverage has been eroding under the policies of the Trump
administration.
Gallup estimated that the uninsured rate for
adults increased by 1.3 percentage points. That would mean an increase
of more than three million people without insurance between the first
quarter of 2018 and the end of the year. Gallup said this was a
four-year high, although a major methodology change a year ago may make
such longer-term comparisons less precise.
“There’s no question
that some of the reductions in the uninsured rate that we have measured
over the course of Obamacare has now been given back,” said Dan Witters,
the research director for the survey.
That may not be a surprise given the White House’s
approach to health policy. It has consistently criticized the Affordable Care Act. And it has sought to weaken it legally,
pulling back on funding to publicize coverage opportunities, and approving policies that make it
harder for eligible people to enroll and stay enrolled in state Medicaid programs.
The administration has signaled that the use of certain public health insurance programs, like Medicaid, might
count against immigrants applying for green cards. Other, more complex policy changes
increased the cost of individual health insurance last year, although prices were on track to
fall slightly, on average, this year.
Still,
the increase in uninsured Americans could be a new pattern, even for
the Trump administration. Although earlier surveys from Gallup and the
Commonwealth Fund, a health research group, measured a rising uninsured rate, big government surveys from the
census and the
Centers for Disease Control and Prevention found coverage rates that were holding steady.
The
employment picture has continued to improve during the Trump
presidency, and more Americans have found full-time jobs. That trend is
usually associated with improvements, not declines, in health coverage.
Data
about initial sign-ups for last year’s Obamacare marketplace plans
showed a decline of about 1.2 million people. There is less information
about the number of Americans who buy their insurance directly from
health insurers. But
a report
from the Department of Health and Human Services suggested that about
one million fewer people bought coverage in 2017 than 2016,
largely because of price, and declines may have continued last year.
The
federal government has allowed states to impose new barriers to
Medicaid, and enrollment declines appear to be occurring there, too.
States have asked people to provide more documentation to enroll, or to
verify their eligibility more often, policies that
have been shown to depress enrollment.
Two states have
imposed work requirements
for some users of their programs, with five more about to start.
Overall numbers from federal reports on Medicaid enrollment show 1.5
million fewer people insured through the program from December 2017 to
October 2018, the most recent month with available data. The biggest
declines came in Tennessee and Texas, which have begun to
reconsider eligibility more often. In both states, Medicaid numbers fell by 11 percent.
Eliot
Fishman, the policy director at the consumer health advocacy group
Families USA and a former Medicaid official, has been tracking the
Medicaid numbers. He said the big drops in several states were largely
the result of state policy changes that might have attracted more
federal pushback under the Obama administration.
“There’s a number
of states where you’re looking at a high proportion of Medicaid
enrollment and a high proportion of the state’s population losing health
insurance flying under the radar,” he said. “That has public health
effects.”
Several states
will expand their Medicaid programs this year, after voters approved
ballot initiatives, so further declines from work requirements and other
policies in some states may be balanced out by gains in coverage
elsewhere.
Measuring the precise shape of any coverage declines
may take some time. It will be several months before results from the
federal surveys on 2018 are final. Benjamin Sommers, an associate
professor at the Harvard School of Public Health,
who has worked
extensively with Gallup data, said he was waiting for more research
before drawing firm conclusions about how many Americans had lost
coverage, given the recent changes in the Gallup survey. (After years of
conducting its surveys by telephone, Gallup in 2018 changed to mail and
internet responses.)
“It’s suggestive, and definitely merits us digging deeper into this,” he said.
https://www.nytimes.com/2019/01/23/upshot/rate-of-americans-without-health-insurance-rising.html
Health-care industry preps offense against Medicare-for-All
by Paige Winfield Cunningham - The Washington Post - January 22, 2019
With support growing for universal health coverage, just what does "single-payer" mean? Here's the breakdown.
(Jenny Starrs, Danielle Kunitz/The Washington Post)
Democrats newly in control of the House are sending
quivers of fear throughout the U.S. health-care industry as they begin
advancing Medicare-for-All measures that could result in a big financial
blow to private health insurers, hospitals and doctors.
Industry
leaders — who have united to fight what they view as a threat to the
country’s existing patchwork system of public and private payers — told
me they're planning to ramp up advertising and lobbying efforts this
year to argue against such a dramatic overhaul of the health insurance
system, saying education is all that’s needed to turn more Americans
against the idea.
“I get the sense that progressives
have gotten a total free pass. There is no pushback against those
calling for Medicare-for-All,” said David Merritt, executive vice
president for public affairs at America’s Health Insurance Plans.
“The
people who are going to be impacted, like patients, like doctors who
treat patients, like insurance plans that cover patients — no one has
started to say in an organized and sustained way, ‘Here are the
consequences if we do go down that path,' ” Merritt said.
Last
summer, AHIP joined with the Federation of American Hospitals, the
American Medical Association, the Pharmaceutical Research and
Manufacturers of America, and 14 other groups in what
they’ve named the Partnership for America’s Health Care Future.
Their
mission: to convince Americans that a single-payer system would deeply
hurt their access to vital health-care services. Their aim is to
dissuade Democrars from fully embracing Medicare-for-All -- once a
progressive hobby horse that has moved mainstream as House Democrats announced they'll hold hearings on such proposals this year.
Their
argument goes like this: If the government is the sole payer, it could
deny coverage for certain services and demand lower rates from
providers, potentially forcing them out of business altogether. A
single-payer option, especially one as dramatic as the
Medicare-for-All plan offered by Sen. Bernie Sanders (I-Vt.), would also cost the government considerably more money, probably requiring tax hikes.
“It became quite clear [Medicare-for-All] was something a small but
increasing number of policymakers were pushing for,” said Jeff Cohen,
executive vice president for public affairs at the Federation of
American Hospitals. “And so we all looked at each other and said, ‘We
might have a problem on our hands if we’re not doing the education and
awareness campaign we need to be doing.' ”
As the Intercept
detailed
in November, a leaked planning document from the group says its
campaign is intended to “change the conversation around Medicare for
All” and “minimize the potential for this option in health care from
becoming part of a national political party’s platform in 2020.”
The U.S. Chamber of Commerce has also vowed to use its deep lobbying pocket to fight single-payer proposals. Government-run
health care “just doesn’t work,” Chamber CEO Thomas Donohue said in his
annual “State of American Business” address this month. “We’ll use all
our resources to make sure that we’re careful there.”
It’s
certainly true there’s an unprecedented level of enthusiasm among
Democrats for making publicly backed health insurance more widely
available. About half of all Democrats in contested House races backed a Medicare-for-All approach,
according to a count by National Nurses United.
Fifteen Senate Democrats and 124 House Democrats have signed onto Medicare-for-All bills.
Included among them are all four members of Congress who have so far
announced presidential bids: Sens. Elizabeth Warren of Massachusetts,
Kirsten Gillibrand of New York, Kamala Harris of California and Rep.
Tulsi Gabbard of Hawaii. Aides to Harris, who was the first
senator to sign onto Sanders's bill, said Medicare-for-All will be
included in her campaign platform,
per my colleague Jeff Stein.
And
polls
have found a majority of voters favor the idea of Medicare-for-All —
although support fades somewhat when respondents hear arguments that it
could give the government too much control over health-care or require
more taxes.
But industry leaders contend that Medicare for All didn’t sell nearly as well on the campaign trail as some have imagined.
They
point to the most competitive House districts, where the winning
Democrats largely didn’t run on — or even support — the idea.
Of the the 35 Democrats who seized Republican-held seats, 23 didn’t
support Medicare-for-All, and seven more who did support it nonetheless
didn’t run on it, according to an analysis by Forbes Tate Partners, a
public affairs and lobbying firm founded by former Democratic
administration officials that is managing part of the coalition.
Highly
publicized candidates such as freshmen Reps. Alexandria Ocasio-Cortez
of New York and Rashida Tlaib of Michigan embraced Medicare for All.
But
in moderate districts and swing states, Democrats such as Reps. Lauren
Underwood of Illinois and Donna Shalala of Florida kept the idea of a
single-payer system an arm's length away.
Republicans
helped contribute to the narrative that Democrats are overwhelmingly in
favor of Medicare-for-All, running ads on the issue against even
candidates that hadn’t endorsed it, as my colleague
Dave Weigel reported in the fall.
Some
backstory here: At the start of the cycle, many Rs thought that D
voters would back only the most left-wing candidates in primaries. In
nearly every swing race, they didn't. Solution: Pretend they did!
— Dave Weigel (@daveweigel) September 26, 2018
There
are a variety of Medicare-for-All ideas being floated by lawmakers,
ranging from a dramatic shift to a single-payer system to merely
lowering the age for Medicare eligibility. The partnership is opposed to
virtually any idea that would result in fewer people getting private
coverage — for the obvious reasons that the government would
then pay providers and insurers a lot less money.
But
they also make this point: Why upend a system in which 92 percent of
Americans already have health coverage to expand it to the 8 percent who
don’t? Merritt and Cohen said they’re pushing Congress to
focus on expanding coverage to the remaining uninsured while advancing
measures to improve care and cut costs for everyone else.
“It’s
not sexy, it doesn’t fit on a bumper sticker, and perhaps it’s hard to
rally around,” Cohen said. “But there are things Congress can do that
will begin to chip away at the anxieties people currently have regarding
their health care. There are things people will see materially, sitting
at home at the kitchen table, I think we shouldn’t discount.”
https://www.washingtonpost.com/news/powerpost/paloma/the-health-202/2019/01/22/the-health-202-health-care-industry-preps-offense-against-medicare-for-all/5c44c7701b326b29c3778c54/?utm_term=.0429ecbdb83f
Meeting Individual Social Needs Falls Short Of Addressing Social Determinants Of Health
Brian Castrucci and John Auerbach - Health Affairs - January 16, 2019
Until recently, efforts to improve the health of Americans have
focused on expanding access to quality medical care. Yet there is a
growing recognition that medical care alone cannot address what actually
makes us sick. Increasing health care costs and worsening life
expectancy are the results of a frayed social safety net, economic and
housing instability, racism and other forms of discrimination,
educational disparities, inadequate nutrition, and risks within the
physical environment. These factors affect our health long before the
health care system ever gets involved.
Hospitals and health care systems have started to address these
social determinants of health through initiatives that buy food, offer
temporary housing, or cover transportation costs for high-risk patients.
The prevalence and initial success of these efforts are clear in
headlines such as: "
What Montefiore’s 300% ROI from Social Determinants Investments Means for the Future of Other Hospitals," "
Social Determinants of Health Gain Traction as UnitedHealthcare and Intermountain Build New Programs," and "
How Addressing Social Determinants of Health Cuts Healthcare Costs."
But when you take a closer look, these articles aren’t about improving
the underlying social and economic conditions in communities to foster
improved health for all – they’re about mediating patients’ individual
social needs. If this is what addressing the social determinants of
health has come to mean, not only has the definition changed, but it has
changed in ways that may impede efforts to address those conditions
that impact the overall health of our country.
In 2008, the
World Health Organization’s Commission on the Social Determinants of Health defined those determinants as
the “conditions in which people are born, grow, live, work, and age”
and “the fundamental drivers of these conditions.” This term prioritizes
a broad, community-wide focus on the underlying social and economic
conditions in which people live, rather than the immediate needs of any
one individual. While health care leaders have realized that programs to
buy food, offer temporary housing, or cover ridesharing programs are
less expensive than providing repeat health care services for their
highest cost patients, such patient-centered assistance does not improve
the underlying social and economic factors that affect the health of
everyone in a community. While targeted, small-scale social
interventions provide invaluable assistance for individual patients, we
must also remain focused on the social determinants that perpetuate poor
health at the community level.
A recent
speech
by Health and Human Services (HHS) Secretary Alex Azar highlighted the
dichotomy between individual-level “social needs” and community-level
“social determinants.” Secretary Azar emphasized that factors like
housing and transportation have an important effect on Americans’
health. He asked rhetorically, "How can someone manage diabetes if they
are constantly worrying about how they’re going to afford their meals
each week? How can a mother with an asthmatic son really improve his
health if it’s their living environment that’s driving his condition?”
And he appropriately noted that we “can’t simply write a prescription
for healthy meals, a new home, or clean air.”
In his discussion of how to address health-related community
conditions, Secretary Azar, like a growing number in health care,
focused on the social needs of individual patients. In his speech, he
recounted the success of the
Accountable Health Communities
model, noting that “participating providers screen high utilizers of
healthcare services for food insecurity, domestic violence risk, and
transportation, housing, and utility needs. If needed, patients are set
up with navigators, who can help determine what resources are available
in the community to meet the patient’s needs.” He even went so far as to
suggest that
Medicaid may allow hospitals to pay for housing, healthy food, and other services.
But in order to improve our nation’s health, we must look beyond
“superutilizers,” Medicaid recipients, and those who are already sick.
Secretary Azar appropriately noted that health care navigators “can help
determine what resources are available in [a] community.” However,
while growing in popularity, health care navigators and similar
enhancements to health care can’t actually change the availability of
resources in the community. They can’t raise the minimum wage, increase
the availability of paid sick leave, or improve the quality of our
educational system. These are the systemic changes that are necessary to
truly address the root causes of poor health.
Even if they don’t address broader social conditions within
patients’ communities, health providers’ efforts to meet individuals’
non-medical needs are praiseworthy and potentially life-saving. In
Chicago,
Advocate Health Care saved nearly $5 million by
screening for malnutrition risk factors and establishing an enhanced
nutrition care program. In Boston, a six-months-or-longer,
home-delivered meals
benefit for dual Medicare-Medicaid eligible patients was associated
with significant reductions in emergency room visits and overall health
care cost savings. An initiative to link
WellCare Medicaid and Medicare Advantage plan members to social service organizations resulted in an annual savings of $2,400 per person. In
Hennepin County, Minnesota,
millions of dollars were saved by offering unconventional services to
patients with complex health, housing, and social service needs. The
University of Illinois at Chicago reduced
costs by 18 percent by identifying homeless patients who could benefit
from housing support. These are just a few of the studies and reports
documenting the health care system’s efforts to go beyond its own walls
to improve health outcomes, decrease consumption of medical services,
and reduce costs.
While individual-level interventions are beneficial, characterizing
them as efforts to address social determinants of health conveys a false
sense of progress. These strategies mitigate the acute social and
economic challenges of individual patients, but they do so without
implementing long-term fixes. They are often limited to a small segment
of the population – those who are in the worst health and have the
greatest health care costs. Meanwhile, those patients who do not rank
among the “sickest and most expensive” are ignored.
Policy makers have the power to address the social and economic conditions that affect community health. For example, in
Kansas City, Missouri,
voters recently approved a ballot initiative empowering health
inspectors to respond to tenant complaints about a broad range of
housing conditions, funded by an annual fee of $20 per unit for
landlords. Earlier this year, the City Council of
Alexandria, Virginia
voted to raise the city’s meal tax to fund affordable housing. These
communities and others like them have embraced the need for policy
intervention to improve the social determinants of health for their
citizens.
National initiatives offer states and local communities a roadmap for
identifying and implementing gold-standard strategies to improve public
health. In an initiative known as
Health Impact in 5 Years (or HI-5),
the Centers for Disease Control and Prevention (CDC) developed a list
of 14 evidence-based policies to improve population health.
CityHealth, an initiative of the
de Beaumont Foundation and
Kaiser Permanente, provides city leaders with a package of nine policy solutions that can help millions of people live longer and better lives.
Hospitals and health systems may be stepping up by referring a
patient with mold in his or her apartment to a tenant’s right advocate,
feeding a patient who needs food, or providing an on-site exercise
program. But these interventions do not address the mold in that
patient’s next-door neighbor’s apartment, community access to healthy
food, or the availability of low-cost exercise options. These
community-level changes can only be made through policy action. While
they work to address their patients’ immediate needs, hospitals and
health systems would do well to recognize and support community-level
policy actions.
This isn’t about picking one approach over another – we need social
and economic interventions at both the community and individual levels.
We often discuss health using the metaphor of a stream, with upstream
factors bringing downstream effects. Social needs interventions create a
middle stream (Exhibit 1). They are further upstream than medical
interventions, but not yet far enough. Social needs are the downstream
manifestations of the impact of the social determinants of health on the
community. Improvements in our nation’s health can be achieved only
when we have the commitment to move even further upstream to change the
community conditions that make people sick. The demand for social needs
interventions won’t stop until the true root causes are addressed. This
should ring especially true as the movement to Accountable Health
Communities and value-based care gains momentum. Any success these new
payment structures enjoy will be short-lived if the underlying social
conditions in the communities where they work remain unchanged. While
the allure of short-term economic gains from mediating patients’ social
needs nearly ensures media and stakeholder attention, the
incentives to advance policy, legislation, and regulation to improve health more broadly are often less clear.
Redefining the meaning of “social determinants” to be mostly or only
about the immediate social needs of expensive patients makes it harder
to focus on the systemic changes necessary to address root causes of
poor health.
In 2003,
David Kindig and Greg Stoddart
offered a comprehensive definition of population health. Twelve years
later, Kindig expressed concern that the use of the term had grown too
broad, writing that it’s “
growing
use, most notable in the Triple Aim and in clinical settings, has
resulted in a conflicting understanding of the term today.” Is the
term “social determinants” heading for a similar fate? If we, even
inadvertently, imply that the social determinants of health can be
solved by offering Uber rides to individual patients or by deploying
community health navigators, it will be challenging, if not impossible,
for public health advocates to make the case for proven policies like
alcohol sales control, complete streets, and healthy food procurement.
Words matter. Common definitions ensure that we understand each
other. When health care leaders and public health officials use “social
determinants of health” to mean different things, it becomes more
difficult for us to engage meaningfully with community partners, who
will struggle to differentiate between these complementary but different
approaches. This may seem like semantics, but when we use this term too
broadly, we risk losing the specificity needed when calling on partners
to make far-reaching social change, and we weaken our ability to
implement the community-level efforts necessary to improve community
health. And, ultimately, that doesn’t help any of us get healthier.
https://www.healthaffairs.org/do/10.1377/hblog20190115.234942/full/?
Donald Trump Did Something Right
His
administration has ordered hospitals to reveal their prices. If
patients and politicians pay attention, this could be a big deal.
As Donald Trump was fighting with Congress over the
shutdown and funding for a border wall, his administration implemented a
new rule that could be a game-changer for health care.
Starting this month,
hospitals must publicly reveal
the contents of their master price lists — called “chargemasters” —
online. These are the prices that most patients never notice because
their insurers negotiate them down or they appear buried as line items
on hospital bills. What has long been shrouded in darkness is now being
thrown into the light.
For the moment, these lists won’t seem very
useful to the average patient — and they have been criticized for that
reason. They are often hundreds of pages long, filled with medical codes
and abbreviations. Each document is an overwhelming compendium listing a
rack rate for every little item a hospital dispenses and every service
it performs: A blood test for anemia. The price of lying in the
operating suite and recovery room (billed in 15-minute intervals). The
scalpel. The drill bit. The bag of IV salt water. The Tylenol pill. No
item is too small to be bar coded and charged.
But don’t dismiss
the lists as useless. Think of them as raw material to be mined for
billing transparency and patient rights. For years, these prices have
been a tightly guarded industrial secret. When advocates have tried to
wrest them free, hospitals have argued that they are proprietary
information. And, hospitals claim, these rates are irrelevant, since —
after insurers whittle them down — no one actually pays them.
Of course, the argument is false, and our wallets know it.
First
of all, hospitals routinely go after patients without insurance or
whose insurer is not in their network. When Wanda Wickizer had a brain
hemorrhage in 2013, a Virginia hospital
billed her $286,000
after a 20 percent “uninsured” discount on a hospital bill of $357,000 —
the list price, according to chargemaster charges. Medicare would have
paid less than $100,000 for her treatment.
Second, those list
prices form the starting point for negotiations, allowing hospitals and
insurers to take credit for beneficence, when there is none.
I
recently received an insurance statement for blood tests that were
priced at $788.04; my insurer negotiated a “discount” of $725.35, for an
agreed-upon price of $62.69 “to help save you money.” My insurer’s
price was around 8 percent of the charge. Since my 10 percent co-payment
amounted to $6.27, my insurer happily informed me, “you saved 99
percent.”
Not!
If a supposedly $1,000 TV is “on sale” for $80, it’s not really a discount. It’s an absurd list price.
Just as airlines have been shown to
exaggerate flight times
so they can boast about on-time arrivals, hospitals set prices crazy
high so they can tout their generous discounts (while insurers tout
their negotiating prowess).
Another rationale for those prices is just plain greed. Dr. Warren Browner, the chief executive of California Pacific Medicine,
describes this as the “Saudi Sheikh problem”:
“You don’t really want to change your charges if you have a Saudi
sheikh come in with a suitcase full of cash who’s going to pay full
charges,” he said.
But in an era when American patients are
expected to be good consumers and are paying more of their bills in the
form of co-pays and deductibles, they have a right to the information on
list prices. They have a right to make sure they are reasonable.
Although
making chargemaster pricing public will not, by itself, reform our
high-priced medical system, it is an important first step. Maybe, just
maybe, a hospital will think twice before charging a $6,000 “operating
room fee” for a routine colonoscopy if its competitor down the street is
listing its price at $1,000. Making this information public should
bring list prices more in line with what is actually paid by an insurer,
a far better measure of value.
And while the lists are far from
user-friendly, researchers and entrepreneurs can now create apps to make
it easier for patients to match procedures to their codes and crunch
the numbers. With access to list prices on your phone, you could reject
the $300 sling in the emergency room and instead order one for one-tenth
of the price on Amazon. You could see in advance the $399 rate your
hospital charges for each allergen it applies in a skin test and avoid
the
$48,000 allergy test — with an $8,000 deductible.
As
a next step, regulators should insist that these prices be easily
accessible on hospitals’ home pages — perhaps in the place of “PAY YOUR
BILL NOW” — and translated into plain English. Seema Verma, the head of
the Centers for Medicare and Medicaid Services,
has suggested that she may well do so.
Patients
can help, too: Check out your hospital’s price list. If it’s not
detailed or complete enough, demand more. For discrete items, like an
M.R.I. of the brain or a vitamin D blood test, take the trouble to scan
the chargemaster for the item. Reject an overpriced procedure (even if
your insurer is paying the bulk of the bill) and take your business
elsewhere.
Justice Louis Brandeis famously said, “Sunlight is said
to be the best of disinfectants; electric light the most efficient
policeman.” But, in this case, the reform will work only if people take
the trouble to look — and to act — now that the lights are turned on.
https://www.nytimes.com/2019/01/21/opinion/trump-hospital-prices.html
Trump Proposals Could Increase Health Costs for Consumers
by Robert Pear - NYT - January 21, 2019
WASHINGTON
— Consumers who use expensive brand-name prescription drugs when
cheaper alternatives are available could face higher costs under a new
policy being proposed by the Trump administration.
The proposal,
to be published this week in the Federal Register, would apply to health
insurance plans sold under the Affordable Care Act.
Health plans
have annual limits on consumers’ out-of-pocket costs. Under the
proposal, insurers would not have to count the full amount of a
consumer’s co-payment for a brand-name drug toward the annual limit on
cost-sharing. Insurers would have to count only the smaller amount that
would be charged for a generic version of the drug.
For example,
if a consumer filled a doctor’s prescription for a brand-name drug with a
$25 co-payment, rather than using a generic medicine with a $5
co-payment, the consumer might get credit for only $5 in out-of-pocket
spending. Consumers would have to spend more of their own money before
reaching the annual limit on out-of-pocket costs.
In
addition, insurers would not have to count the value of coupons and
other financial assistance provided to consumers by drug manufacturers
if generic alternatives were available. This change could significantly
increase consumers’ out-of-pocket costs for some of the more expensive
prescription drugs and has prompted protests from groups representing
patients.
President Trump has repeatedly vowed to reduce drug
prices and to lower out-of-pocket drug costs. But for some consumers,
the latest proposal could have the opposite effect.
The proposal
highlights a potential conflict between patients with a particular
disease, who may benefit from the use of coupons, and other consumers
more generally. Economists say that coupons can raise health care costs
by encouraging people to use more expensive drugs.
“The
availability of a coupon may cause physicians and beneficiaries to
choose an expensive brand-name drug when a less expensive and equally
effective generic or other alternative is available,” the Trump
administration said in explaining its proposal. “When consumers are
relieved of co-payment obligations, manufacturers are relieved of a
market constraint on drug prices.”
Moreover, it said, “coupons can
add significant long-term costs to the health care system that may
outweigh the short-term benefits.”
But Bari
Talente, an executive vice president of the National Multiple Sclerosis
Society, said, “Many people with M.S. rely on co-pay assistance, even
for generic medications.”
In the last few years, she said, generic
versions of the drug Copaxone have become available, but even they have
high prices. One of the generic medicines costs $60,000 to $65,000 a
year, she said.
Carl E. Schmid II, the deputy executive director
of the AIDS Institute, a public policy and advocacy organization, said
the administration’s proposal could sharply increase out-of-pocket
costs, so that a consumer who now pays virtually nothing might have to
pay $3,500 a year or more for a drug to treat H.I.V.
“That increases the likelihood that people won’t pick up their drugs, won’t take their drugs,” Mr. Schmid said.
Leyla
Mansour-Cole, the policy director of the Diabetes Patient Advocacy
Coalition, a nonprofit group, said the Trump administration proposal
“caused trepidation” for some patients.
“In theory, co-pay coupons
could encourage people to take higher-priced drugs,” Ms. Mansour-Cole
said. “In reality, people use them to get the medicines that their
doctors prescribe, despite astronomically high deductibles.”
The administration is proposing several other changes that could increase costs for consumers.
Under
the proposal, fewer people would qualify for federal subsidies, and
those who qualify could be required to spend a larger share of their
income on insurance premiums.
In addition,
the proposal could lead to a small increase in out-of-pocket costs,
which include co-payments and deductibles for doctors’ services and
hospital care.
The changes would result from a new method of
calculating inflation in health insurance prices — a factor used in
computing the amount of premium subsidies and the annual limit on
consumers’ out-of-pocket costs.
The Trump administration estimated
that the changes would save the government $900 million annually in
subsidies in 2020 and 2021 and $1 billion a year in 2022 and 2023. In
addition, it predicted that 100,000 fewer people would have coverage
through the insurance exchanges created under the Affordable Care Act.
The
administration said that some of the 100,000 people might buy
short-term insurance policies, which do not have to cover pre-existing
conditions or provide all the benefits required by the health law. But,
it said, most are “likely to become uninsured.”
Either way, the
administration said, “these individuals will be bearing a larger share
of the costs of their own health care consumption.”
The proposed
rule may reduce federal spending and the need to collect taxes in the
future, the administration said. “However,” it added, “the increased
number of uninsured may increase federal and state uncompensated care
costs.”
The administration estimated that premiums — after
subsidies, in the form of tax credits — would be 1 percent higher as a
result of its proposal.
The limit on
out-of-pocket costs is already high; a consumer can be required to spend
as much as $7,900 a year. Under the formula now in use, the limit would
rise to $8,000 next year. Under the Trump administration proposal, it
would increase to $8,200.
Administration officials said their
proposal would more accurately measure insurance price inflation. But
Democrats refused to accept that explanation, noting that Mr. Trump had
tried to repeal the Affordable Care Act during his entire first year in
office.
Senator Ron Wyden of Oregon, the senior Democrat on the
Finance Committee, described the new proposed rule as “Trump’s latest
attempt to sabotage health care.”
The Trump administration is also
proposing a new requirement to increase the number of health insurance
plans that omit coverage of abortion services.
Under the proposal,
insurers that provide coverage of abortions would also have to offer at
least one plan providing the same benefits but excluding coverage of
abortions.
The administration said it was concerned that some
people who wanted to buy insurance under the Affordable Care act
refrained from doing so because they had religious or moral objections
to abortion coverage. The administration acknowledged that some states
like California, New York and Oregon generally required insurers to
offer abortion coverage on the exchange, and it appears that the
proposed federal requirement would not override such state laws.
https://www.nytimes.com/2019/01/21/us/politics/trump-obamacare-drug-costs.html
Can a Nice Doctor Make Treatments More Effective?
By Lauren Howe and Kari Liebowitz - NYT - January 22, 2019
In the age of the internet, it’s easier than ever to pull
together lots of information to find the best doctor. And if you’re like
most patients, the metric you probably rely on most is the doctor’s
credentials. Where did she go to school? How many patients has he
treated with this condition?
You might also read some Yelp reviews
about how nice this doctor is; how friendly and how caring. But all
that probably seems secondary to the doctor’s skills; sure, it would be
great to have a doctor whom you actually like, but that’s not going to
influence your health the way the doctor’s competence will.
But
our research in the psychology department at Stanford University
suggests that this view is mistaken. We found that having a doctor who
is warm and reassuring actually improves your health.
The simple things a doctor says and does to connect with patients can make a difference for health outcomes.
Even a brief reassurance to a patient from a doctor might relieve the patient’s symptoms faster. In
a recent study that one of us conducted,
our research group recruited 76 participants to receive a skin prick
test, a common procedure used in assessing allergies. The provider in
this study pricked participants’ forearms with histamine, which makes
skin itchy and red.
Then, the doctor examined the allergic
reactions. For some patients, the doctor examined them without saying
much. But for other patients, the doctor had some words of
encouragement. He told them: “From this point forward, your allergic
reaction will start to diminish, and your rash and irritation will go
away.” It turns out that this
one sentence of assurance from a
provider led patients to report that their reactions were less itchy —
even though the doctor didn’t give any medication or treatment along
with his words. Words alone from the provider relieved patients’
symptoms.
This tells us that a physician’s words might be more
powerful than we normally realize. And research shows that it is not
only when patients are taking placebos that demeanor matters. In fact,
provider words influence the efficacy of even our most powerful drugs and treatments.
But
as anyone who has been on the receiving end of a terse “You’re fine”
knows, it’s not just what you say, it’s how you say it.
In
another study one of us worked on,
we assessed whether the same words from a doctor influence patients
differently depending on how warm or competent the doctor seemed. Again,
patients received a histamine skin prick. Depending on what
experimental group they were assigned to, patients met a provider
trained to act in one of two very different ways. One group met the
provider many of us dream of: she acted both warm and competent, calling
patients by name, smiling, chatting and making eye contact. Her office
was spotless, she spoke clearly and confidently, and she pulled off the
medical procedures without a hitch.
The
other group, however, met the kind of doctor all too many of us have
encountered: glued to the computer screen throughout the exam, the
provider didn’t bother introducing herself and asked questions only to
gather practical information. She also stumbled through some of the
procedures in the messy exam room and sounded rather unsure of herself.
In
both groups, the provider gave patients a cream that she said was an
antihistamine to reduce the allergic reaction and decrease itching. The
cream was merely unscented hand lotion: a placebo. (A benefit of doing
this research in the lab is that for the purposes of the study, we can
temporarily lead patients to believe something that is untrue, something
doctors could never do in a real clinic visit.)
Decades of
robust literature
on placebo effects demonstrate that, even without any active
ingredients, this cream should reduce the allergic reaction. But no one
had examined how the doctor’s demeanor might influence the effects of a
placebo treatment.
Our study revealed that the placebo cream reduced participants’ allergic reactions
only
when the provider projected warmth and competence. When the provider
acted colder and less competent, the placebo cream had no effect. It
seems that it’s not just what the doctor says about a treatment that
matters. It matters how the doctor who says it engages with patients.
Doctors who are warmer and more competent are able to set more powerful
expectations about medical treatments. Those positive expectations, in
turn, have a measurable impact on health.
So, we saw that when the
provider projected both desirable qualities of warmth and competence,
her words had an effect. When she projected neither, they did not.
What
about a provider who seems competent, but not warm? One other group of
patients met a provider who seemed highly competent but remained
businesslike and distant throughout the interaction, and they did not
respond to the placebo cream as much as when the provider acted warm and
competent.
Patients of even the most accomplished and skillful doctors may benefit more when that doctor also connects with them.
All
of this research suggests that doctors who don’t connect with their
patients may risk undermining a treatment’s success. Doctor-patient
rapport is not just a fluffy, feel-good bonus that boosts Yelp reviews,
but a component of medical care that has important effects on a
patient’s physical health. Particularly as artificial intelligence
promises a world where we don’t need to go to the doctor for minor
questions, we should not overlook the value of interacting with a human
doctor and hearing words of encouragement.
And while physicians
may worry that building rapport with patients requires too much time in a
health care setting with visits that are already too short, there are
simple ways to build warmth and competence — such as smiling, looking
patients in the eye and asking their names — that don’t tax doctors
beyond their limits.
We often think the only parts of medical care
that really matter are the “active” ingredients of medicine: the
diagnosis, prognosis and treatment. But focusing only on these
ingredients leaves important components of care underappreciated and
underutilized. To really help people flourish, health care works better
when it includes caring.
https://www.nytimes.com/2019/01/22/well/live/can-a-nice-doctor-make-treatments-more-effective.html
by Kay Tillow - Daily Kos - January 25, 2019
Rep. Pramila Jayapal has been re-writing HR 676, the
model improved Medicare for all legislation that has united and advanced
a growing single payer movement since it was introduced into Congress
in 2003. HR 676 is evidence-based and written to enact the Physicians
Proposal for a National Health Program.
Unless the movement acts quickly to assure HR 676’s ban
on for-profit institutions is maintained, Jayapal’s new bill will remove
this vital section of HR 676.
It’s a compromise that there is no need to make. We are
getting hearings in this Congress. Why should we take the impact of the
for-profits out of the discussion before the debate starts? We gain
nothing. The ban on for-profits has been in HR 676 since the beginning.
It did not stop 124 congresspersons from signing on to it. It did not
stop unions, organizations, cities, counties, and many others from
endorsing it. It was one of the popular provisions that all of those
who have dealt with these for-profit hustlers welcomed.
HR 676 included in Section 103 the following:
“
No
institution may be a participating provider unless it is a public or
not-for-profit institution. Private physicians, private clinics, and
private health care providers shall continue to operate as private
entities, but are prohibited from being investor owned.”
And
“For-profit providers of care opting to participate shall be required to convert to not-for-profit status.”1
That was placed in HR 676 for good reason. Physicians for a National Health Program states in their proposal that “
…because
investor ownership of health care providers is known to compromise
quality and divert funds from clinical care to overhead and profits the
NHP (National Health Program) would not include such providers.”
2
The consequences of for-profit institutions in health
care are stark—even deadly. In a review by researchers involving 15
observational studies of 26,000 hospitals and 38 million patients by
Devereaux et al, the writers stated: “
Our
pooled analysis of the adult population studies demonstrated that
private for-profit hospitals were associated with a statistically
significant increase in the risk of death.”
3
In the United States, said co-author Dr. Holger Schönemann, assistant professor at the University of Buffalo,
a
2% increased risk means that 14,000 people die each year at for-profit
hospitals who would have lived if treated at non-profit hospitals.
4
Preventing the deaths of 14,000 people a year is a pretty
good reason to take a stand on this rather than write it off as a minor
detail.
“
According to CMS,
for-profit nursing homes are cited for quality deficiencies 28 percent
more often than non-profits, and for deficiencies that place residents
in immediate jeopardy 53 percent more frequently,”
5 say health policy experts Drs. Steffie Woolhandler and David Himmelstein.
“
For-profit hospitals spend less on nurses and other clinical aspects of care, but more on administration and financial management; for-profit chains have often been cited for questionable business practices and have been repeatedly implicated in large scale fraud,”
6 assert Woolhandler and Himmelstein.
The evidence is overwhelming. So why would the ban on for-profit institutions in HR 676 be removed in the rewriting?
Some mistakenly say they don’t want to remove the
for-profits because they don’t want to “bail out” those giant
corporations. But this is not a bail out.
A bail out is a situation in which the government uses public money to save a corporation or industry from failing.
7
Hospital Corporation of America (HCA) and Tenet are far from failing.
In the first quarter of 2018 HCA saw their profits double to $1.1 billion.
8
In the same quarter,
Tenet reported a surprise $99 million profit after expanding a cost-cutting plan.
9
Florida’s new Senator Rick Scott walked away (scot free) from the charges that his Columbia/HCA hospital corporation
defrauded
Medicare by paying only $1.7 billion dollars in fines and using the
rest of the ill-gotten gains to promote his successful political career.
10
These giants don’t want to be bought out. They want to stay in the system for the massive profits they make.
It is not a bail out when HR 676 converts them to non-profit so that their facilities can be used for the benefit of patients.
11
Some assert that paying compensation for the hospitals
will cost too much. It will save lives and even money in the long run
and is
totally affordable by the use of 15 year bonds as set forth in HR 676.
12
Taking out the ban on for-profit hospitals will not make
our single payer legislation any easier to pass, yet it removes from the
discussion the extremely important issue of what profits do to a health
care system, to patients, to the costs. Taking the discussion of
profits in health care off the table will deprive the nation of the
ability to debate the issue in the upcoming fight.
Some assert that Rep. Jayapal is going to leave the
for-profits in the system but somehow regulate them. Our system would
then be burdened by the massive administrative task of trying to rein in
the giants. And it won’t work. Single payer is supposed to simplify
administration so that we can use those wasted funds for expansion of
care.
If the for-profits are in, they will make profits and they will harm patients, and they will cost all of us.
Don’t weaken the bill before we get started. Call Rep.
Jayapal and ask her to put patients before profits and keep the ban on
for-profit institutions in her Medicare for All bill.
Her number is Phone: 202-225-3106.
https://www.dailykos.com/stories/2019/1/20/1828017/-Removing-investor-owned-hospitals-is-not-a-bail-out-it-s-the-right-thing-to-do?_=2019-01-20T17:38:49.574-08:00
Progressives Warn Against Democrats Pushing 'Diluted' Half-Measures as Alternative to Medicare for All
by Jake Johnson - Common Dreams - January 22, 2019
With Medicare for All polling at an
unprecedented 70 percent support among the American public and headed toward its
first-ever congressional hearing,
Politico on Tuesday
reported
that there is a growing effort among congressional Democrats—including
some 2020 presidential hopefuls—to "water down" the grassroots push for a
transformative single-payer program by offering up more incremental
approaches to solving America's for-profit healthcare crisis.
"Only improved Medicare for All, aka single-payer, could accomplish
those goals, reining in costs while achieving first-dollar universal
coverage for everyone in the nation."
—Dr. Adam Gaffney, Physicians for a National Health Program
The proposals listed above, which
Politico encapsulated with
the term "Medicare for More," are just a handful of ideas Democratic
lawmakers have put forth as ostensibly more "pragmatic" paths to
achieving a humane healthcare system.
But grassroots Medicare for All advocates and campaigners—whose voices were absent from
Politico's
report—strongly objected to any plan that leaves intact central
elements of a status quo that has produced enormous profits for the
insurance and pharmaceutical industries, while leaving millions of
Americans with soaring costs or entirely uninsured.
"Improved Medicare for All has support from an overwhelming majority
of Democratic voters, so why the sudden proliferation of public option
proposals? We should be very skeptical of these sorts of bills," Dr.
Adam Gaffney, president of Physicians for a National Health Program
(PNHP), told
Common Dreams.
"They would not solve the fundamental problems of the American
healthcare system, such as uninsurance, underinsurance, enormous
administrative waste, or sky-high drug prices," Gaffney added. "Only
improved Medicare for All, aka single-payer, could accomplish those
goals, reining in costs while achieving first-dollar universal coverage
for everyone in the nation. This should be the moment that lawmakers
coalesce behind the single-payer bills in the House and the Senate."
According to
Politico,
Democratic leaders
as well as rank-and-file lawmakers like Sens. Sherrod Brown, Tim Kaine,
and others are refusing to throw their support behind Medicare for All,
instead backing plans that "range from modest Medicare reforms to more
ambitious restructurings that would extend government-run care to
millions of new patients—an array of options that fall short of campaign
trail promises for full Medicare for All."
Michael Lighty, a founding fellow of the Sanders Institute, told
Common Dreams that
such incremental approaches completely fail to address the fundamental
crises at the heart of the U.S. healthcare system, which is the
most inefficient and ineffective in the industrialized world.
"The dilution of improved Medicare for All remains the greatest
threat to guaranteeing healthcare for all," Lighty said. "Without
eliminating all barriers to care—starting with the huge out-of-pocket
costs workers must pay—we cannot create a just healthcare system. We
cannot reduce the huge administrative costs if we continue a fragmented
system dominated by commercial insurance companies. This diluted
approach would institutionalize big profits, high executive salaries,
and political clout for the healthcare industry."
Lighty concluded that Democrats should stop pushing half-measures and work to "improve Medicare for everybody."
In addition to efforts by some Democrats to undercut Medicare for All
with non-universal plans that critics say would fail to deliver badly
needed results, the insurance industry and major business lobbying
groups like the Chamber of Commerce are
ramping up their own campaigns to crush single-payer before it gets off the ground.
"What will the Democratic Party (in the aggregate) do in response?
Will it support the health and welfare of the American people, or
continue the abuse of the American people by supporting those who
extract wealth from suffering?"
—Thomas Neuburger
Thomas Donohue, the president and CEO of the Chamber of Commerce,
vowed earlier this month to use all of the resources at his disposal to "combat" Medicare for All.
As part of the effort to overcome this deep-pocketed opposition, National Nurses United (NNU) is holding
nationwide Medicare for All "barnstorms" next month to help "build the mass collective action we know we'll need to win."
In a
Tuesday op-ed on Common Dreams,
essayist Thomas Neuburger wrote that Democrats will soon be forced to
pick a side in the immensely consequential fight over the future of the
American healthcare system.
"When Medicare for All becomes a bill, the fight will be a cage match
with the bright lights on," Neuburger noted. "What will the Democratic
Party (in the aggregate) do in response? Will it support,
whole-heartedly and by its actions, the health and welfare of the
American people, or continue the abuse of the American people by
supporting those who extract wealth from suffering?"
https://www.commondreams.org/news/2019/01/22/progressives-warn-against-democrats-pushing-diluted-half-measures-alternative
Mass. General Hospital plans large addition
Massachusetts General Hospital, the busiest medical center in the
state, plans to spend more than $1 billion to build a large addition to
its crowded campus to keep up with the demand for high-end medical care
and compete for patients from around the globe.
The project is
likely the largest ever proposed by a hospital in the state, and
promises to reshape a busy stretch of downtown Boston between Government
Center and the Longfellow Bridge.
It would include two connected
12-story towers on Cambridge Street, with hundreds of private patient
rooms, a heart center, a cancer center, operating rooms, and other
clinical areas. Mass. General expects to be able to treat at least 100
to 200 additional patients when the building — spanning 1 million square
feet — is complete in about seven years.
The project comes as other hospitals in the city are expanding as well.
It is expected to be bigger than the more than $1 billion expansion now
underway at Boston Children’s Hospital. Beth Israel Deaconess Medical
Center is also planning a smaller 10-story tower in the Longwood Medical
Area.
Mass. General’s addition, with a completion date of 2026, would be
built on property the hospital already owns. Hospital officials would
demolish the existing Parkman Street parking garage and construct
underground parking below the new building. They expect the project will
involve 4,500 construction jobs and allow them to hire new hospital
employees.
Mass. General will file its preliminary plans with the city
Wednesday. The project requires city and state approvals and is likely
to face scrutiny because of its significant cost — and the worry that
the costs could trickle down to local patients and consumers. Mass.
General, owned by Partners HealthCare, is widely renowned and among the
state’s most expensive hospitals.
In interviews, hospital
officials described the expansion plan as critical to supporting the
growing numbers of patients who need cancer treatment, cardiac care,
transplant surgeries, and other services.
The hospital’s
facilities are largely outdated, they said. Most Mass. General patients
have to share rooms. Only 38 percent of rooms are private, among the
lowest percentages in the city, said Dr. Peter Slavin, president of
Mass. General.
“If this region wants a world-class academic medical center like MGH,
we have to renew our campus and keep it modern and terrific for our
patients and competitive not only with local competition but the
national competition as well,” Slavin said.
Mass. General
currently has more than 1,000 beds and is usually filled almost to
capacity, officials said. On any given day, dozens of beds may have to
go unused because of infection control and other reasons.
During a
tour one recent afternoon, the emergency department was full, as
patients spilled into the hallways. More than 30 were waiting to be
admitted, but no beds were immediately available.
“We always have
patients down here waiting to be admitted,” said Dr. David Brown, chief
of emergency medicine. “More beds will help to relieve that pressure.”
While
most of Mass. General’s patients are from Massachusetts or New England,
the hospital also competes for patients with complex medical needs from
all over the world. About 3 percent of its patients are from states
outside the region, and 1 percent are from other countries, hospital
officials told the Globe.
Patient numbers have been growing, as have profits: Mass. General earned $252.4 million in income from operations last fiscal year, on revenue of almost $4.1 billion.
Founded more than two centuries ago, Mass. General’s
campus is a mix of old and new. Some patient floors still in use today
were constructed around the time of World War II. Patients in those
areas are paired up, separated by just a curtain.
By comparison, the hospital’s last big addition, the
Lunder building, has spacious single rooms, giving patients and families
more privacy, and a quieter place to recover.
The proposed new
building, which has yet to be named, would be twice as large as Lunder,
which opened in 2011. It would include 450 single patient rooms, but
hospital officials also plan to close and repurpose older patient areas,
so they ultimately expect to gain about 100 to 200 new patient beds,
they said.
Mass. General, which is structured as a nonprofit,
recently began a campaign to raise $3 billion from private donors for
the hospital’s programs over seven years. Hospital officials expect that
about 20 percent to 30 percent of the cost of the new building would be
paid for by donations.
The project still needs approval from
several agencies including the Boston Planning & Development Agency
and the state Department of Public Health. It also could be reviewed by
the Health Policy Commission, which studies issues that affect the cost
of health care.
In 2016, the commission warned that Boston Children’s Hospital’s expansion was likely to
raise medical costs by drawing patients from other lower-priced hospitals. The Department of Public Health later
approved that project with conditions. Mass. General’s project could face similar scrutiny.
Mayor Martin J. Walsh, in a statement Tuesday, voiced initial support for Mass. General’s plans.
“It’s important that our hospitals are making the
improvements needed to keep Boston at the global forefront of health
care,” Walsh said. “We look forward to closely reviewing Mass. General
Hospital’s proposal once it is filed and beginning the comprehensive
public process with input from the community.”
City Councilor Josh Zakim, whose district includes Mass. General,
noted the hospital is not trying to acquire new land but is staying
within its existing footprint.
“It’s certainly a significant
project, but it’s not encroaching on the neighborhood,” Zakim said. “We
do need to make sure we have modern facilities, enough beds for people
from around the world to get treatment here.”
Zakim added that
he’d like to see the hospital contribute to traffic improvements on
Cambridge Street, which is often congested.
“They’ve generally been a good neighbor,” he said. “I’m looking forward to seeing where this goes.”
https://www.bostonglobe.com/business/2019/01/22/mass-general-hospital-plans-large-addition/bGugz9Fr5E7HoZ88IHFTdM/story.html?camp=breakingnews:newsletter
Mills right to reject failed GOP policy on health care
by David Farmer - Bangor Daily News - January 23, 2019
In a major victory for sound public policy over naked politics, Gov.
Janet Mills continued her efforts to expand access to health care to
Maine people.
This time, she bucked the Trump administration and former Gov. Paul LePage by
rejecting a change to the state’s Medicaid program, which would have erected unnecessary barriers to health insurance for low-income families.
The policy changes, which LePage sought and the Trump administration
granted, are often referred to as “work requirements,” meaning that a
person receiving health care through Medicaid has to work or volunteer
to get coverage.
In reality, the focus-group tested, polling-approved moves are all
about denying health care to people. The idea is driven by the misguided
idea that people who are poor are lazy and don’t want to work.
In truth, there are real barriers to work for many of the people for
whom the requirements would have applied, including a lack of training
or education, lack of transportation or the need to care for a sick or
disabled child or relative.
Last summer, the
Kaiser Family Foundation
examined four states that had implemented waivers similar to the one
sought by LePage and rejected by Mills. It’s not a pretty picture.
The research found that most people who receive Medicaid and can
work, already are, but the jobs they have don’t pay enough to lift them
out of poverty. There’s no incentive to find work – because most folks
are already punching the clock.
Instead, the requirements set up a difficult-to-navigate bureaucracy
that makes it hard for some with steady, long-term employment to comply,
putting their health care at risk.
Simple fact: Sick people – and those without access to health care tend to be sicker – have a hard time holding down a job.
Arkansas is one of the first states in the country to put in place these new restrictions, and the results have been terrible.
Nearly 17,000 people lost access to health care.
The
Indianapolis Star
took a look at the horrible consequences in Arkansas and asked if
Indiana might suffer the same fate: “If the experience of Arkansas is
any guide, Indiana’s plan to require people on Medicaid to work could
wind up creating more problems than it solves.”
The Des Moines Register
also weighed in on Iowa’s exploration of so-called work requirements:
“The GOP idea to add a work requirement to Medicaid is a lame
justification for pursuing bad policy. It would erect a barrier for
Iowans seeking health insurance, not solve the state’s labor shortage.”
And the left-leaning
Center on Budget and Policy Priorities put it this way: “Medicaid work requirements can’t be fixed. Unintended consequences are inevitable result.”
Most of those losing coverage, the center found, are people who are
already working or should be exempt but lose coverage because of
increased red tape, bureaucracy and paperwork.
Work requirements might sound good, especially to some of the state’s
more conservative voters, but Mills made the right decision to put
sound policy ahead of sloganeering.
In fact, she’s taking a proactive approach to helping knock down the
barriers that prevent some people on Medicaid from working. She’s
directed the Maine departments of Labor and Health and Human Services to
help Maine people develop the skills they need and help them to find a
job.
“Ensuring that Maine people have access to health care and are
healthy is the first step to getting them back into the workforce,”
acting DHHS Commissioner Jeanne Lambrew said.
As can be expected, LePage – tanned, rested, ready and always eager for the microphone –
weighed in on Twitter. Needless to say, he’s not a fan of Mills and her commitment to expanding access to health care.
Beyond that, it was just more blah, blah, blah from a former governor desperate to stay in the spotlight.
Once again, Mills – an accomplished political brawler in her own
right – is showing that she won’t let GOP talking points or the ghost of
a governor past haunt her into doing the wrong thing.
Just three weeks in, Mills is setting a high bar and showing that she
heard voters when they said they wanted more health care, not less. And
on that, she’s delivering.
http://davidfarmer.bangordailynews.com/2019/01/23/republicans/mills-right-to-reject-failed-gop-policy-on-health-care/
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