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NAVIGATION PNHP RESOURCES
Posted on April 11, 2006

Approaches to Health Care for All

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Press Release

For Release: April 10, 2006
For More Info: Mark Dunlea, 518 434-7371, ext 1

New York Needs a Commission to Develop Cost-Effective Approaches to Health Care for All
New Massachusetts Health Care Plan is Seriously Flawed

Universal health care advocates said today that New York should followed the lead of the State of Massachusetts in taking action to provide quality, affordable health care coverage to all its residents.

The groups however said that the Massachusetts program is seriously flawed, focusing more on increasing payments to hospitals and insurance companies rather than on ensuring universal access to quality, affordable health care.

The groups called on NYS to join half a dozen other states in creating a Commission on Health Care Coverage to do independent cost-benefit analysis of the various ways NY could provide health care to all New Yorkers.

“Health care for all is an essential goal. We can not afford to spend one of out six dollars in our economy to prop up a patchwork, inadequate health care system that excludes tens of millions of America from coverage. Every other industrial country has already figured in out. America should be able to figure out how to put the public good ahead of campaign contributions from special interests. And with Congress stalling, individual states have to step forward to create their own universal health care plans to protect taxpayers and consumers,” stated Mark Dunlea of the Hunger Action Network of New York.

The Commission, endorsed by more than 250 organizations, would evaluate proposals such as Medicare for All (single payer); the new Massachusetts program; employer mandates; Medical Savings Accounts; and tax credits. This commission process was used in Maine to develop its proposal to provide health care to all residents.

Many of the groups support the proposal by the Physicians for a National Health Program to expand Medicare to cover all Americans. Such a single payer system would save hundreds of billion of dollars, starting with a major reduction in administrative costs. A recent study by the Lewin group estimated that a single payer system just for California would save $38 billion annually.

Dr. David Himmelstein, the national cofounder of PNHP, said that the recent Massachusetts proposal fell far short of providing quality affordable health care for all.

“The linchpin of the plan is the false assumption that uninsured people will be able to find affordable health plans,” observed Dr. Himmelstein. A typical group policy in Massachusetts costs about $4500 annually for an individual and more than $11,000 for family coverage. According to Census Bureau figures, only 12.4% of the 748,000 uninsured in Massachusetts are both young enough to qualify for low-premium plans (under age 35) and affluent enough (incomes greater than 499% of poverty) to readily afford them. Yet even this 12.4% figure may be too high if insurers are allowed to charge higher premiums for persons with health problems.”

“The legislation promises that the uninsured will be offered comprehensive, affordable private health plans. But that’s like promising chocolate chip cookies with no fat, sugar or calories. The only way to get cheaper plans is to strip down the coverage – boost co-payments,, deductibles, uncovered services etc. Hence, the requirement that most of the uninsured purchase coverage will either require them to pay money they don’t have, or buy nearly worthless stripped down policies that represent coverage in name only,”Himmelstein added.

“Finally, the legislation will do nothing to contain the skyrocketing costs of care in Massachusetts – already the highest in the world. Indeed, it gives new infusions of cash to hospitals and private insurers. Predictably, rising costs will force more and more employers to drop coverage, while state coffers will be drained by the continuing cost increases in Medicaid. Moreover, when the next recession hits, tax revenues will fall just as a flood of newly unemployed people join the Medicaid program or apply for the insurance subsidies promised in the reform legislation. The program is simply not sustainable over the long – or even medium – term,” he concluded.

“Access to health care is a matter of human dignity. It is about the stewardship of our resources. Our elected representatives must listen to the voices of all New Yorkers, especially those who have no access to decent medical care, whose voices are marginalized. These are the people whom we all have a special responsibility to support and protect. Enacting the Commission and the process of open hearings and public studies is an important step in ensuring that the best interests of all the people is our priority,” stated Rev. Cass Shaw, General Presbyter for the Albany Presbytery.

“Despite the fact that health care is now half of the state budget, the Governor and Legislature have failed to embrace comprehensive approaches to controlling costs while providing quality, affordable health care to all. The fact that millions of New Yorkers â€�g as many as one in three during any one year – lack adequate health care coverage is a huge factor in causing financial problems both for Medicaid and hospitals, yet state lawmakers refuse to tackle the problem due to the power of the insurance and drug companies. Instead, they continue to offer incremental changes in coverage while the overcall cost of health care continues to skyrocket,” said Mark Dunlea, Associate Director of the Hunger Action Network of New York State.

Legislation to establish such a commission has been introduced in New York by Assemblymember Richard Gottfried (A6575) and Senator John Marchi (S 4928), among others. In Illinois, the Legislature is required to adopt a universal health care program within a year after the Commissions studies are completed. Advocates want NY to adopt a similar model, with the commission to start on January 1, 2007 to meet objections by Senator Hannon that the Hospital Closing Commission should first finish its work. The groups agree with Senator Marchi that the Governor should appoint the Chairperson of the Commission.

“One of our main concerns in patient safety. What kind of patient safety do you have if you lack health insurance? 3 million people in New York State lack health insurance and patient safety. They have documented excess illness and deaths. Their preventive care is nil. Serious illness is unsafe for a family’s finances. Costly and inefficient healthcare is unsafe for the competitivensss of our economy. Society as a whole would benefit from a universal healthcare financing system that includes all citizens. The needs of patients and healthcare professionals must come first. A legislative commission is needed to study and act on our worsening healthcare non-system, concluded Richard Propp, MD, Chairperson, Capital District Alliance for Universal Healthcare.