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May 31, 2006

Study: Canadians Healthier Than Americans

By MIKE STOBBE
Associated Press Writer
May 30, 2006, 10:53 PM EDT

ATLANTA — You can add Canadians to the list of foreigners who are healthier than Americans. Americans are 42 percent more likely than Canadians to have diabetes, 32 percent more likely to have high blood pressure, and 12 percent more likely to have arthritis, Harvard Medical School researchers found. That is according to a survey in which American and Canadian adults were asked over the telephone about their health.

The study comes less than a month after other researchers reported that middle-aged, white Americans are much sicker than their counterparts in England.

“We’re really falling behind other nations,” said Dr. Steffie Woolhandler, a co-author of the Canadian study.

Canada’s national health insurance program is at least part of the reason for the differences found in the study, Woolhandler said. Universal coverage makes it easier for more Canadians to get disease-preventing health services, she said.

James Smith, a RAND Corp. researcher who co-authored the American-English study, disagreed. His research found that England’s national health insurance program did not explain the difference in disease rates, because even Americans with insurance were in worse health.

“To me, that’s unlikely,” he said of the idea that universal coverage explains international differences.

Woolhandler said her findings were different in at least one important respect: In the Canadian study, insured Americans and Canadians had about the same rates of disease. It was the uninsured Americans who made the overall U.S. figures worse, she said.

The study, released Tuesday, is being published in the American Journal of Public Health. It is based on a telephone survey of about 3,500 Canadians and 5,200 U.S. residents in 2002-03. Those surveyed were 18 or older.

The results are based on what those surveyed said about their health. In contrast, the researchers in the American-English study surveyed participants and also examined people and conducted laboratory tests on them.

The new study found that 6.7 percent of Americans and 4.7 percent of Canadians reported having diabetes; 18.3 percent and 13.9 percent, respectively, reported having high blood pressure; and 17.9 percent and 16.0 percent said they had arthritis. The Americans also reported more heart disease and major depression, but those difference were too small to be statistically significant.

About 21 percent of Americans said they were obese, compared with 15 percent of Canadians. And about 13.5 percent of the Americans admitted to a sedentary lifestyle, versus 6.5 percent of Canadians. However, more Canadians were smokers — 19 percent, compared with about 17 percent of Americans.

About 42 percent of the Americans rated their quality of health care as excellent, while 39 percent of Canadians did.

Also, 92 percent of American women said they had a Pap test within the last five years, while 83 percent of Canadian women had. But Canadians have lower death rates from cervical cancer. “It’s a little hard to interpret,” Woolhandler said.

One more plus for the Americans: Fewer than 1 percent said they were unable to get needed care because of long waits, compared with 3.5 percent of Canadians.

However, about 80 percent of Americans had a regular doctor, while 85 percent of Canadians did. And nearly twice as many Americans said there were medicines they needed but couldn’t afford (9.9 percent versus 5.1 percent).

Copyright 2006 Newsday Inc.

Study shows U.S. residents are less healthy, less able to access health care than Canadians

Press relase: Study shows U.S. residents are less healthy, less able to access health care than Canadians (pdf)

Read the study (pdf)

May 30, 2006

USW's Gerard Speaks on Union Action, Single Payer Health Care and HR 676

Link: http://www.dc37.net/news/radioshows/radioshows.html

We are pleased to be able to make available a far reaching talk by Leo Gerard, International President of the United Steelworkers (USW) delivered May 18th in New York City at an event sponsored by the Central Labor Council and other progressive organizations.

Gerard’s speech, “The Labor Movement and United Action for Health Care for All,” is an important statement by the leader of America’s largest industrial union.

A shortened version of the full speech was broadcast on the weekly radio show of AFSCME District Council 37 produced by Ken Nash on WNYE.

HR 676 has been endorsed by 141 union organizations including 24 central labor councils, two state AFL-CIO’s (KY and PA), and two area labor federations.

For further information and a complete list of union endorsers contact:
Kay Tillow
All Unions Committee For Single Payer Health Care-HR 676
c/o Nurses Professional Organization (NPO)
1169 Eastern Parkway, Suite 2218
Louisville, KY 40217
(502) 636 1551, (502) 459-3393
email: nursenpo@aol.com.

May 26, 2006

The World Bank report on health financing

Health Financing Revisited: A Practitioner’s Guide
The World Bank
May, 2006

This report provides an overview of health financing policy in developing countries. It is a primer on major health financing and fiscal issues, intended to assist policy makers and all other stakeholders in the design, implementation, and evaluation of effective health financing reforms. The health sector is an extremely complex one, and reformers must be prepared to deal with its complexities when designing and implementing health policy reforms.

Learning from high-income countries

High-income countries have a rich history of health financing reforms as their systems have evolved from community-based voluntary insurance arrangements to formal public insurance funds to social or national health insurance-based financing systems. Nearly all high-income countries, with the exception of the United States, have achieved universal or near universal health coverage. The tax-financed systems have been in place for some time, the social insurance systems more recently. Political will was critical to achieving universal coverage, along with economic growth. As most high-income countries have achieved universal coverage, recent reform activities have tended to focus on efficiency gains through purchasing arrangements, rather than on revenue collection and pooling.

Although high-income countries operate in very different contexts from low-income countries, their experiences furnish some lessons for lower-income countries:

  • Economic growth is the most important factor in the move toward universal coverage.
  • Improved management and administrative capacity is critical in expanding coverage, as is strong political commitment.
  • For low- and middle-income countries transitioning to universal coverage, general revenues and social health insurance contributions are the two principal sources of public funding. Both accumulate public revenues into one or several pools. Because the critical issue is pooling, whether a social health insurance or national health service system is ultimately chosen is of secondary importance.
  • Voluntary and community-based financing schemes can serve as tests for countries as they seek to expand the role of prepaid health coverage schemes.
  • Broader risk pooling mechanisms, instead of fragmented, smaller risk pools, can contribute significantly to effective and equitable financing of health coverage.

Products and services must be evaluated for their effectiveness and cost-effectiveness within the context of particular countries’ coverage systems. To facilitate the affordability of such efforts, cooperation among similar countries should be encouraged, possibly led by one or more international organizations.

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTHEALTHNUTRITIONANDPOPULATION/EXTHSD/0,,contentMDK:20200211~menuPK:376811~pagePK:148956~piPK:216618~theSitePK:376793,00.html

Comment:

By Don McCanne, M.D.

As developing countries design and implement their health financing policies, they can learn from high-income countries… “with the exception of the United States.”

May 25, 2006

How to keep young adults uninsured

Rite of Passage? Why Young Adults Become Uninsured and How New Policies Can Help
By Sara R. Collins, Cathy Schoen, Jennifer L. Kriss, Michelle M. Doty, and Bisundev Mahato

The Commonwealth Fund
May 2006

Young adults (ages 19 to 29) are one of the largest and fastest-growing segments of the U.S. population without health insurance: 13.7 million lacked coverage in 2004, an increase of 2.5 million since 2000.Young adults often lose coverage under their parents’ policies, Medicaid, or the State Children’s Health Insurance Program at age 19, or when they graduate from high school or college. Nearly two of five college graduates and one-half of high school graduates who do not go on to college will be uninsured for a period during the first year after graduation. Three policy changes could extend coverage to uninsured young adults and prevent others from losing it:
extending eligibility for Medicaid and the State Children’s Health Insurance Program beyond age 18; extending eligibility for dependents under private coverage beyond age 18 or 19 regardless of student status; and ensuring that colleges and universities require full- and part-time students to have insurance, and that they offer coverage to both.

http://www.cmwf.org/usr_doc/Collins_riteofpassage2006_649_ib.pdf

Comment:

By Don McCanne, M.D.

It has long been recognized that young adults are the largest and fastest growing group of the uninsured. As a result, policymakers in public and private sectors have been adopting changes designed to expand coverage of young adults. Some of those efforts have been identified in this report, and they include the specific policy recommendations listed.

Although we recognize that these policies would increase coverage, converting them into action on a widespread basis has been and will remain elusive. If you doubt that, look at the recommendations again and decide what rules and regulations you would need, how they would be enforced, and how they would be funded. Confirming the difficulties encountered, efforts to date to adopt these incremental changes have resulted in an INCREASE of 2.5 million in the numbers of uninsured young adults.

Incremental efforts have already been tested, and they have failed. Only fundamental structural reform will accomplish our goal of equitably-funded, comprehensive coverage for everyone. Policymakers need to abandon the path of incrementalism that is leading us to more uninsured, greater medical debt, and more barriers to care. A single payer program of national health insurance is the obvious solution. Can’t the policymakers find that path?

May 24, 2006

Health care reform lesson from Hungary

Health care reform to follow Socialist model until 2008
Hungary Around the Clock
May 23, 2006

Health care will operate in line with the Socialists’ plans until late 2007, when the Free Democrats’ preferences will take priority, according to an agreement outlined to the media on Monday by Free Democrat chairman Gábor Kuncze.

He said the ground work for converting to a competitive health insurance system will be completed by late 2007. The coalition parties will then examine whether everything is in place for introducing the Free Democrat model of several competing health insurers. The two parties have agreed to convert the National Health Insurance Fund into a shareholding company.

Kuncze said the coalition parties are working to build a system in which it will be irrelevant whether the state or private capital operates the health service. The essence, he said, is that patients will receive a higher standard of health care.

There are also plans to base health care contributions and service packages on a three-tier health insurance system. Patients will be protected against what Népszabadság calls the “jungle” of market competition by an insurance supervisory body.

http://www.caboodle.hu/index.php?id=12&no_cache=1&tx_ttnews%5Btt_news%5D=698&tx_ttnews%5BbackPid%5D=11&cHash=8cab2a67df

Comment:

By Don McCanne, M.D.

Market competition? Several competing health insurers? Private capital? Three-tier health insurance system? Converting the National Health Insurance Fund into a shareholding company?

As Hungary surveyed the various health care models in other nations, they decided to adopt the U.S. model - the most expensive, least efficient, least equitable, and most wasteful system of all, but one that richly rewards the private insurance industry.

The lesson from Hungary is that a democracy requires an informed plebeian input. Failing that, the government could fall into the hands of individuals who cater to those with money and power, such as those who have mastered the process of diverting health care funds away from health care. That scenario is all too familiar to us in the United States.

Whose fault is this? Our citizens will never fully understand the benefits of a publicly-funded and publicly-administered insurance program until we tell them. Let’s not be part of the problem by remaining silent.

May 23, 2006

What do the affluent believe about health care?

Citigroup Smith Barney
Affluent Investor Poll

May 17, 2006

The cost of health care is a major concern for affluent investors, more so than quality of care available perhaps because investors believe they will bear the brunt of on going drug and insurance costs while they discount the probability of being subject to an on going need for doctor and hospital care. The national health care issues of greatest concern are the cost of prescription drugs, the cost of health insurance, and the cost of long-term care (with about half of all investors saying they are very concerned about each of these issues). Only about one in four express strong concern about the quality of care provided by doctors or hospitals.

Health insurance companies, pharmaceutical companies, lawyers, and the federal government all share some of the blame for what investors see as the problems in the nation’s health care system, with the largest shares naming attorneys (23%) and the federal government (21%) as most responsible. The most affluent group of investors are noticeably less likely than others to assign blame to health insurance companies or pharmaceutical companies, and are noticeably more likely to say that lawyers are a major contributor to the problems in the health care system.

Vast majorities would support any type of change to the current health care system, with most saying they strongly favor the idea of malpractice limits (56% strongly favor), allowing small companies and individuals to join together to purchase health insurance at better group insurance rates (69%), and allowing low and middle income workers to deduct the cost of health insurance premiums from their taxes (50%). Nearly as many favor easing restrictions on imported prescription drugs and establishing tax incentives for those who use high deductible health plans.

Affluent investors were also asked about the health insurance reform recently passed in Massachusetts, in which all citizens are required to have some type of health coverage. While two out of three overall express support for this type of plan, the most affluent do not necessarily feel that way. Those who have assets of $1 million or more are more likely to oppose this idea (46%) than they are to support it (43%).

http://www.smithbarney.com/pdf/pollMay06.pdf

Comment:

By Don McCanne, M.D.

Since the wealthy have greater political influence, it is important to understand their views of our health care system and its reform.

It is not surprising that affluent investors are not well informed on the problems with our health care system, as their biased views reflect those that are prevalent in the pages of the Wall Street Journal and other similar resources.

What is clear is that, like the rest of us, they do want affordable access to comprehensive care. The solutions they support fail to address the real cost drivers and will leave them facing ever escalating costs. Those costs will not be contained until we agree to adopt structural reform of health care funding that addresses the actual inefficiencies and waste in our system.

The problem is that the affluent do not know what they do not know. It is our task to educate them on the real problems and the various policy approaches available. It just happens that the most effective policies that would achieve their goal of health care value are the same policies that would achieve our additional goals of universality, comprehensiveness and equity. They need to understand that.

UAW's Gettelfinger Again Calls for Single Payer Health Care

It’s time for nation health insurance
Ron Gettelfinger, President United Auto Workers (UAW)
The Detroit News, Friday, May 5, 2006

U.S. needs to fix crisis and stop sticking millions with medical debt

You’ve probably noticed more media attention than usual focused on America’s dysfunctional health care system during the past several days thanks to “Cover the Uninsured Week,” an initiative of the Robert Wood Johnson Foundation.

“Cover the Uninsured Week” is a uniquely American event-uniquely American because the United States is the only advanced industrialized nation without some form of universal health care coverage.

Why? The conventional wisdom, of course, is that we can’t afford it. Well, the conventional wisdom is just plain wrong. It’s not that we don’t have the money; it’s that we’re spending our health care dollars inefficiently and foolishly.

America’s foolish spending

With its patchwork health care system, the United States spends a higher proportion of its gross domestic product or total economic output and far more per capita on health care every year than any other industrialized nation. In fact, America’s health care bill of about $5,267 per capita is nearly two and a half times the industrialized world’s median of $2,193.

Yet for all that spending, some 46 million Americans-including more than 8 million children-don’t have any health insurance and an estimated 16 million more are underinsured.

What’s more, despite having the best doctors, nurses and other health care professionals in the world, the United States ranks near the bottom among industrialized nations on life expectancy, infant mortality and virtually every other measure. In fact, the infant mortality rate in our nation’s capital is more than double the infant mortality rate in Beijing.

Most of us would agree that nothing is more valuable than our family’s health. But the harsh reality is that a large and growing number of lower- and middle-income working Americans are forgoing preventive care and putting off medical treatment because they can’t pay for both health care and basic necessities like food, housing, gas and electricity.

Medical debt grows

A newly released study by the Commonwealth Fund found that slightly more than one in five of all working-age Americans, both uninsured and insured, have medical debt they are paying off over time. Nearly one in four uninsured adults say they had used up all their savings to pay medical bills.

The Commonwealth Fund survey also found that nearly three in five uninsured adults with chronic conditions like asthma or diabetes didn’t fill a prescription or skipped taking their medications because they couldn’t afford them. And, not surprisingly, uninsured Americans are far less likely than their insured counterparts to get mammograms and other cancer screenings, dental exams, blood pressure and cholesterol tests, and other preventive care.

The situation is nearly as bad among underinsured Americans.

Treatments get delayed

A recent survey by the Reader’s Digest found that among underinsured middle-class Americans (defined as having household income of $25,000-$100,000, health insurance and deducted medical expenses on their 2004 federal income tax return), about half say they’ve put off or refused medical treatment for a serious condition, or delayed taking or renewing prescription drugs. Nearly one-fourth say they’re behind on medical bills-and nearly half have used credit cards to meet health care costs.

How much worse can it get? Some health care experts predict that if insurance premium increases continue to outpace growth in wages and income, 56 million Americans-including 27.8 percent of working Americans—will be uninsured by 2013, just seven years from now. And those of us fortunate enough to have coverage (and jobs) will be faced with higher premiums, co-pays and deductibles.

There’s a better way

But isn’t there a better way? Of course.

The UAW has long advocated single-payer national health insurance as the fairest and most cost-efficient way to provide affordable, quality, comprehensive health care to every American regardless of income.

Sound impossible? It shouldn’t. We already have more than 40 years experience with a single-payer system in America. It’s called Medicare, and it may not be perfect, but it sure works better than the privatized part of our health care system.

Medicare provides model

Medicare spends nearly 98 percent of its funds (our tax dollars) on actual medical care. In contrast, as economist Paul Krugman noted in his recent New York Times column, Aetna, one of America’s largest health insurance companies, “spends less than 80 cents of each dollar in health insurance premiums on actually providing medical care.”

The rest goes to profits, marketing and administrative costs-including screening out people likely to have big medical bills. In short, health insurance is one area where a government program has proven not only fairer but more cost-effective than the private sector.

National health insurance made sense when President Harry Truman proposed it in 1948. Today, it may be the only sensible way to fix America’s health care crisis.

___________________________________________________

Distributed by:
All Unions Committee For Single Payer Health Care-HR 676
c/o Nurses Professional Organization (NPO)
1169 Eastern Parkway, Suite 2218
Louisville, KY 40217
(502) 636 1551, (502) 459-3393
email: nursenpo@aol.com.

May 22, 2006

Medicare Advantage plans often shift costs to the sick

Medicare Beneficiary Out-of-Pocket Costs: Are Medicare Advantage Plans a Better Deal?
By Brian Biles, Lauren Hersch Nicholas and Stuart Guterman

The Commonwealth Fund
May 2006

(Medicare Advantage) plans may be able to provide more benefits than traditional fee-for-service Medicare because the Medicare Modernization Act included provisions that set MA payments greater than per capita fee-for-service costs in every county in the nation. These extra payments to MA plans averaged over 11 percent ($800 per enrollee) in 2005.

The analysis reported here indicates that the benefit packages offered by MA plans often result in substantial out-of-pocket costs for beneficiaries in poor health: in more than 20 percent of the MA plans we examined, located all across the nation in 15 cities in 10 states, enrollees in poor health would have had greater out-of-pocket costs in 2005 than if they had been in traditional fee-for-service Medicare with Medigap Plan F. If not for the extra payments provided to MA plans across-the-board, this pattern could have been even more pronounced.

Even with the completion of the transition to fully risk-adjusted MA payment rates and planned improvements in the risk adjustment methodology, the incentives for plans to avoid enrollees in poor health are unlikely to disappear. Moreover, as increased pressure to control Medicare spending makes continuation of the current level of extra payments to MA plans more difficult to justify, the incentive to shift costs from healthy to sick enrollees will become stronger.

Issue Brief:
http://www.cmwf.org/usr_doc/927_Biles_MedicarebeneOOPcosts_MA_ib.pdf

KFF webcast:
http://www.kaisernetwork.org/health_cast/hcast_index.cfm?display=detail&hc=1743

Comment:

By Don McCanne, M.D.

The cruelest mechanism of containing health care costs is to increase out-of-pocket spending for those with the greatest health care needs. It is shocking to see that many of the private Medicare Advantage plans, in spite of being granted extra payments by the government, are shifting more of the costs to sick enrollees than they would have to pay in the traditional Medicare with Medigap program, despite the well-documented shortcomings of Medigap coverage. In contrast, the Medicare Advantage programs have lower out-of-pocket costs for their targeted market - healthy Medicare beneficiaries who use few services.

In the KFF webcast on the release of this report, Karen Ignagni, president and CEO of America’s Health Insurance Plans, supported repeal of the lock-in to allow patients the freedom to “vote with their feet” whenever their plans displeased them. Obviously, the greater success the plans have in placing a financial burden on sicker patients, the quicker they would exit thereby relieving the plans of the need to cover them.

Private health plan strategy is, and always has been, to insure the healthy and dump the sick. The private Medicare Advantage plans are no different.

And for this the taxpayers are rewarding them with extra payments?! Enough!!

The price of insurance

Amid War, Troops See Safety in Reenlisting By Faye Fiore
Los Angeles Times
May 21, 2006

(Staff Sgt. Matthew Kruger) looked around the job market, and it didn’t take long to figure out that leaving the Army held its own perils. Nothing offered him the financial security of his military job - especially the generous health coverage for his wife and three small children.

“We had nothing. We were scared,” (his wife) Maggie said recently… “We suddenly realized there was no way to take the kids to the doctor or dentist for any little reason, as we had been used to.”

For Kruger, who returned to a war zone for his third tour in December, the danger of losing his family’s health insurance was more real and immediate than the danger of dying in combat.

http://www.latimes.com/news/nationworld/nation/la-na-enlist21may21,0,3414020,full.story?coll=la-home-headlines

Comment:

By Don McCanne, M.D.

.… (silence)

May 19, 2006

Mandating Cover Tennesee insurers to bear all risk for $150per month

State Senate strikes blow to Cover Tennessee
By Tom Humphrey

Knoxville News Sentinel
May 16, 2006

As proposed by (Gov. Phil) Bredesen, Cover Tennessee would provide a $50 per month state subsidy toward group health insurance for people who have no coverage now and who earn less than 2.5 times the federal poverty level, which works out to $24,500 per year for a single person and $50,000 for a family of four.

The plan would be available to small businesses - those with less than 50 people - that do not offer coverage to employees now. Under the plan, the average employee would pay $50 per month, the state would pay $50 a month and willing employers would pay $50 per month. If employers decline, the individual would pay $100.

The state would solicit bids from major insurance companies and select the one offering the best available insurance package for $150 a month.

The Republican-controlled Senate voted 17-14 along party lines for (Sen. Jim) Bryson’s amendment, which declares that insurance companies would bear all risk of financial losses in operating the program.

“This plan is going to be risky,” Bryson said. “This amendment says we’re not going to take on the risk. (Without it) we run the risk of having another TennCare situation. This will force the plan to be self-sustaining.”

(Finance Commissioner Dave) Goetz said major insurance companies have told him that making them liable for any and all losses means they will not bid on the contract. That will be true especially in the startup year, he said, since there are some uncertainties in going with a new program of limited coverage at relatively low cost.

“It kills Cover Tennessee,” said Goetz after the vote. “Insurance companies will not bid and will not participate if they have to cover all the risk.”

http://www.knoxnews.com/kns/politics/article/0,1406,KNS_356_4701509,00.html

An update from The Tennessean (5/18/06):

A compromise was reached when a House amendment put 2010 as the date when contractors would assume any risk - giving state officials and insurance companies time to see how the plan evolves.

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20060518/NEWS0201/605180408

Comment:

By Don McCanne, M.D.

There are two important policy issues here.

This proposal perpetuates the fiction that making health insurance premiums affordable will make health care affordable. A $150 monthly premium cannot begin to cover comprehensive services and would leave the beneficiary exposed to unaffordable out-of-pocket expenses if a significant medical need were to arise. Even a $50 to $100 per month premium would be a hardship for those earning under $24,500 per year.

The second issue is that private insurers quite understandably no longer want to accept the risk of catastrophic health care losses. They do so only if they can control spending through contracting of provider rates, limitation of benefit coverage, and shifting more out-of-pocket expenses to the beneficiaries. But then they do so only if the premium structure is actuarially sound. Asking an insurer to bear all risk for a $150 premium that is to cover primary care, hospitalization and modest specialized services is a total non-starter.

One of the most prevalent proposals today would be to establish a government-funded reinsurance program to protect insurers against catastrophic losses. For that to work, it means that all major acute problems and all significant chronic diseases would have to be funded, at least in part, by the government. That is close to 80 percent of health care costs today.

If we are going to shift most of the risk of paying for health care to the government, then why should we continue to tolerate the profound administrative waste of the private insurers which direct their greatest efforts to devious means by which they can duck out of their responsibility to pay our medical bills?

In fact, the taxpayers are already paying 60 percent of the health care tab.

The insurers don’t want to insure our risk pools, and we don’t want to waste our funds on their administrative excesses. The solution seems obvious. Throw them out and establish our own publicly-funded and publicly-administered health insurance program.

In an equitably-funded public insurance system we would never again have to ask how a person with a $24,500 per year income could afford either health care or the insurance to pay for it.

May 18, 2006

Now President Clinton gets it

Clinton warns Canadians against letting ‘finance tail wag health care dog’
By Angela Pacienza

The Canadian Press
May 15, 2006

Asked about the growing interest by some for a privatization of the health-care system, former U.S. president Bill Clinton said Monday night that Canadians should think long and hard before making any move.

But (at the inaugural World Leaders Forum in Toronto) Clinton said the last thing anyone would want to do is let the “health care finance tail wag the health care dog.”

He said America did just that and the system is a mess.

He said the U.S. spends 34 per cent of its health-care costs on administration, equalling $280 billion “to pay two million people to go to work every day for all the providers and insurers and play tug-of-war.”

“It is insane,” said Clinton. “It is a colossal waste of money. Don’t go down that road. Don’t do anything that will lead to increased administrative costs.”

http://www.canada.com/topics/news/national/story.html?id=bb96af6f-595b-406f-8ba1-115627805cc2&k=51462

Comment:

By Don McCanne, M.D.

Now President Clinton gets it. But he’s no longer president.

The important question: Does Senator Clinton get it? Or for that matter, do any of the other would-be presidents?

May 17, 2006

A Pennsylvania state senator proposes universal coverage for state residents.

Healthy Choice
Philadelphia Weekly
(May 17-23)
by Jesse Smith

Last month Massachusetts garnered national attention for legislation heralded as an answer to the state’s-and possibly the nation’s-problem of health coverage gaps. Requiring that all residents have health insurance, the state will subsidize coverage for the poor but will force others to purchase theirs through private insurers.

In Pennsylvania, legislators led by state Sen. Jim Ferlo and healthcare advocates are working on their own plan for universal coverage, one that would take private insurers out of the mix entirely.

“We needed a model bill out there for public debate,” Ferlo says. “Change isn’t going to happen in a vacuum. This is our plan, and now the legislature, governor and candidates can react to it.”

Now in the Public Health and Welfare Committee, Senate Bill 1085-the Balanced and Comprehensive Healthcare Reform Act-proposes the establishment of a state-run healthcare trust as a means of repairing a system Ferlo describes as a “sick patient in need of radical surgery.”

Funded by a 10 percent payroll tax on employers, a 3 percent individual wellness tax on personal income and federal money, the program would cover most medical services (with the exception of cosmetic procedures) and make no exclusions of preexisting conditions. Unlike most traditional insurance plans, the proposed system would cover those services without a beneficiary co-pay or deductible.

The program’s reach would extend beyond universal coverage in a state with an uninsured population of approximately 1.5 million. It would establish a malpractice payout program that essentially eliminates the notoriously high premiums providers currently pay. It would provide transitional employment assistance to workers affected by the shift from private insurers. And in an attempt to strengthen the state’s volunteer emergency responder network, it would offer those volunteers a $1,000 annual tax rebate.

The single-payer Medicare-like plan would exempt employees with collective bargaining agreement benefits equal to or greater than those of the state plan, but would automatically enroll all other Pennsylvanians, including out-of-state students, the homeless and migrant agricultural workers.

Under Ferlo’s proposal, private insurers would operate in Pennsylvania only to serve collective bargaining units and individuals seeking coverage for those treatments (mainly cosmetic) not covered by the state plan.

His attempt to drop private insurers from the healthcare equation is in stark contrast to the high-profile Massachusetts plan, a program the senator describes as “a marketing scheme” and “fraudulent” for its connection to the profit-driven sector.

That industry views the situation differently. Sam Marshall, president and CEO of the Insurance Federation of Pennsylvania Inc., agrees the cost of healthcare is a “real problem,” but says eliminating private insurers isn’t the solution. Marshall says instead, increasing their presence will drive down the cost of coverage by creating more competition, a scenario he believes is achievable through a prohibition of non-competition clauses among current insurers.

Marshall says the presence of cost-conscious private insurers also encourages more efficient innovation and keeps costs low, something he doubts the government can do. “Is it realistic to think a government spending $600 on toilet seats is going to deliver cheaper healthcare coverage?” he asks.

But Dr. Adam Tsai, a University of Pennsylvania researcher and member of the Pennsylvania Health Care Solutions Coalition-an advocacy group that helped draft the bill-says private insurers’ obligation to both their investors and customers creates a “built-in conflict of interest.” Profit, marketing and overhead costs, fueled by what Tsai sees as an administrative bureaucracy that seeks to deny claims, raise healthcare costs far above what they would be under a single-payer system, he says.

These costs account for 16.7 percent of claims costs for private insurers, as opposed to approximately 5.2 percent for Medicare, according to a report released earlier this year by the Council for Affordable Health Insurance, an association of carriers that advocates for marketplace solutions.

Tsai emphasizes the proposed system isn’t a publicly funded/publicly delivered socialized system, but rather a publicly funded/privately delivered system of social insurance that allows consumers to still choose providers while ensuring that quality isn’t compromised.

That doesn’t mean such a radical plan’s time has arrived just yet. Tsai is skeptical of the bill’s chances for passage, but he believes the attempt is a necessary first step. “It may not be viable in election year, but I think states in general are ripe for trying this sort of reform,” he says. “If we don’t try, we’ve already lost.”

David Baltimore on national health insurance

Science For Life: A Conversation With Nobel Laureate David Baltimore By Barbara J. Culliton
Health Affairs
May 16, 2006

(David Baltimore is the new president of the American Association for the Advancement of Science, soon-to-retire president of the California Institute of Technology, former president of Rockefeller University, and founding head of the Whitehead Institute at the Massachusetts Institute of Technology.
Baltimore shared the Nobel Prize in Medicine in 1975.)

Barbara Culliton: One of the questions is this: If the economists, the health policy people, and the health services research people could talk to the scientists, might we devise entirely new ways of approaching projects and problems?

David Baltimore: We might. It’s worth trying. Let me comment on one place where I think this is critical. We talk about universally available health insurance that would not depend on a person’s particular history but would provide health care coverage for everyone-the arguments that are made about this are arguments about availability, about cost. There’s another argument, which overwhelms all of those; it has to do with what the genomics revolution will produce in the future. The genomics revolution that we’re just living through is making it clear that we are all genetically hamstrung in one way or another. And the only way to treat people who have genetic diseases, and we all do, is to think about universal coverage. We can’t hold individuals responsible for their genetics. We must insure them nationally.
If we do hold people responsible for their individual genetics, then we will have a completely unacceptable level of discrimination. It’s inevitable, because insurance companies will say, I need to know your genetic constitution before I insure you. And they’re right.

Culliton: That is what the insurance industry does.

Baltimore: That’s what they’re about. That’s what they’re trying to do. That’s what they’ve always tried to do. And now we’ve given them this very powerful tool that could enable them to really discriminate. I think the implications of that powerful tool are that there should no longer be an insurance system that holds people responsible for inherited diseases, whether they be so-called Mendelian diseases, such as sickle cell or cystic fibrosis or Tay-Sachs, or complex diseases, such as cancer or heart disease.

Culliton: So that means you’d go to universal health insurance?

Baltimore: Absolutely, I think that it does.

http://content.healthaffairs.org/cgi/content/full/hlthaff.25.w235v1/DC1

Comment:

By Don McCanne, M.D.

“We must insure (everyone) nationally.”

Tinkering incrementalists, listen up!

May 16, 2006

Dartmouth Atlas - Major overhaul of health care required

The Dartmouth Atlas of Health Care
In the News
May 16, 2006

New Study Shows Need for a Major Overhaul of How United States Manages Chronic Illness

Staggering variations in how hospitals care for chronically ill elderly patients indicate serious problems with quality of care and point toward unnecessary spending by Medicare. Lower utilization of acute care hospitals and physician visits could actually lead to better results for patients and prolong the solvency of the Medicare program, according to a new study by the Center for the Evaluative Clinical Sciences (CECS) at Dartmouth Medical School.

Three issues drive the differences in the cost and quality of care, according to principal investigator John E. Wennberg, M.D., M.P.H.

“Variation is the result of an unmanaged supply of resources, limited evidence about what kind of care really contributes to the health and longevity of the chronically ill, and falsely optimistic assumptions about the benefits of more aggressive treatment of people who are severely ill with medical conditions that must be managed but can’t be cured,” said Wennberg.

The Dartmouth Atlas Project studied the records of 4.7 million Medicare enrollees who died from 2000 to 2003 and had at least one of 12 chronic illnesses. The study demonstrates that even within this limited patient population, Medicare could have realized substantial savings - $40 billion or nearly one third of what it spent for their care over the four years - if all U.S. hospitals practiced at the high-quality/low-cost standard set by the Salt Lake City region.

The new research is based on Medicare claims data for more than 4,300 hospitals in 306 regions, released today in a new database available at www.dartmouthatlas.org.

“The problem of overuse of acute care hospitals and medical specialists in the management of chronic illness is rapidly getting worse,” said Wennberg.

He points to finding that the resources per capita allocated to managing chronic illness during the last two years of life are increasing steadily each year. For example, the nation’s health care providers were using 13.6 percent more ICU beds in 2003 than they did in 2000. Physician labor used to manage chronic illness also increased substantially: 13.4 percent for medical specialists and 7.7 percent for primary physicians. The acceleration was greatest in regions that were already using the most care, so the gap between high and low rate regions grew greater over the four years.

Both doctors and patients generally believe that more services - that is, using every available resource such as specialists, hospital and ICU beds, diagnostic tests and imaging etc. - produces better outcomes.

Based on this assumption, the supply of resources - not the incidence of illness - drives utilization of the services. In effect, the supply of hospital beds, ICU beds, and specialty physicians creates its own demand, so areas with more resources per capita have higher costs per capita.

“This report should end the ‘more is better’ myth in health care,” said Donald M. Berwick, M.D., M.P.P., president and CEO of the Institute for Healthcare Improvement (IHI) and a leading national authority on health care quality and improvement issues. “The nation can do a lot to improve the quality and lower the cost of health care once providers, policymakers, payers and the public share an understanding that ‘more care’ is not by any means always ‘better care,’ and that new technologies and hospital stays can sometime harm more than they help.”

Press release:
http://www.dartmouthatlas.org/press/2006_atlas_press_release.shtm

>From the Executive Summary

The reallocation of resources from the acute care sector to create a population-based, community-wide integrated system for managing severe chronic illness is today only a thought experiment. It should become a national goal. Realizing the savings that better organized care can bring requires building community-wide systems of coordinated care. In most communities, such systems do not now exist. The benchmarks from efficient practice indicate that Medicare already invests more than enough money to build and maintain such a system. The problem is that the resources are now largely locked in by Medicare’s reimbursement policy. To meet their payrolls and amortize their debts, acute care hospitals are dependent on utilization; reduced utilization results in loss of income. In many regions the reduction in utilization required to meet efficiency benchmarks would have serious - indeed, devastating - consequences for acute care hospitals. Finding a solution will require payers, particularly Medicare, to develop new methods of financing care that provides a fiscal “safe landing” for hospitals and retained savings for use in building community-based systems for managing severe chronic illness. It will also require accountability for system integration. With proper reform of financial models, large group practice and integrated care systems should be able to provide this accountability for the populations they serve in regions where such practices exist.

Through economic incentives, existing large group practices might be persuaded to accept responsibility for organizing such care in regions where it does not now exist. Traditionally, hospitals have served as the focus for coordinating community resources. They are the only locus of organized care available throughout the United States; perhaps acute care hospitals could take on the mission of integrating providers into community-based systems for managing chronic illness.

Executive Summary:
http://www.dartmouthatlas.org/atlases/2006_Atlas_Exec_Summary.pdf

The full report (121 pages);
http://www.dartmouthatlas.org/atlases/2006_Chronic_Care_Atlas.pdf

Comment:

By Don McCanne, M.D.

Can you imagine the private insurance industry leading the process to reform the management of chronic illness? Our fragmented model of competing payers is not capable of promoting system integration. Not even Medicare has the clout to reorganize the health care delivery system.

If we had a single, publicly-administered national health insurance program, a Medicare-for-All, then we would be in a position to allocate our health care spending in a manner that would integrate our entire health care delivery system. If that would result in a savings for Medicare alone of $40 billion over three years, just think of how much that would save for our entire health care system. And that doesn’t even include the other savings possible though a single payer system such as reduction of administrative waste and efficiencies through negotiated purchasing.

This report makes it clear that action is mandated. It is difficult to see where we could begin without the crucial first step of establishing a program of national health insurance.

May 15, 2006

Target targets employee health plans

Tough health care medicine for Target workers
By Chris Serres

Star Tribune
May 11, 2006

Stung by rising health costs, Target Corp. is now offering private health accounts funded in large part by individual employees. The Minneapolis-based retailer also is considering taking the unusual step of dropping its traditional health insurance coverage altogether for high-deductible plans coupled with private savings accounts.

One of Target’s two new alternatives is a high-deductible plan coupled with health savings accounts (HSAs), which let users set aside money in accounts to spend as they see fit on medical needs. Unspent money stays with the employee from year to year and job to job and grows tax-free.

The other option is a high-deductible plan coupled with health reimbursement accounts, which are similar to HSAs, except these accounts are funded by the employer and do not transfer if a worker changes employers. This plan has much higher premiums, but the deductibles are lower than in Target’s HSA.

(For the HSA option) Target annually will contribute $400 for individual employees and $800 for families. Monthly premiums will drop to as little as $20 for individuals with Target covering the rest of the insurance plan premiums.

But deductibles will be much higher than Target’s traditional plan: up to $5,000 for families, including Target’s contribution. So a Target worker who incurs a $5,000 medical bill but has only $1,000 socked away in a health savings account must pay the remaining $4,000. Target pays 80 percent of expenses beyond the deductible and all expenses once a maximum out-of pocket level is reached — up to $8,800 for families.

Documents provided by Target employees to the Star Tribune offer a rare, detailed window into how one company is trying to resolve the problem. In the documents, Target touts the changes as part of a broader effort to encourage employees to take increased responsibility for their health care spending, which the company believes will help reduce costs.

“Think of it like the retail business — when people are spending their own money, they want the best value at the best price,” says a guide given to employees.

http://www.startribune.com/535/story/427778.html

Comment:

By Don McCanne, M.D.

So Target wants its employees to “take increased responsibility for their health care spending.” How many Target employees do you suppose can afford to pay $4200 out-of-pocket after the $800 health savings account is depleted? Target is really asking them to take personal responsibility for the medical debt they accrue.

The decline in protection provided by private insurance plans is a one-way street. It will only get worse.

Health Care Spending and Use of Information Technology in OECD Countries

Commonwealth Fund - Publications - May 2006

U.S. health spending per capita significantly and consistently outpaces that of other industrialized nations. One proposal for lowering health spending and improving quality is the adoption of health information technology (HIT). Yet the United States lags behind other countries by as much as a dozen years in its efforts to implement HIT.

Heeding lessons from other countries’ experiences with HIT development could facilitate U.S. implementation, finds a new analysis supported by The Commonwealth Fund. In “Health Care Spending and Use of Information Technology in OECD Countries,” (Health Affairs, May/June 2006) the authors present U.S. spending and HIT initiatives within an international context. They also discuss the key issues surrounding HIT implementation: creating incentives, ensuring interoperability, and easing the public’s privacy concerns.

U.S. Health Spending Highest
The U.S. continues to have the highest per capita health care spending among industrialized countries, according to the most recent data from the Organization for Economic Cooperation and Development (OECD). In 2003, U.S. spending per capita ($5,635) was two-and-a-half times the comparable median for OECD countries ($2,280) It also represented a significantly greater percentage of gross domestic product (15% vs. 8%).

Higher prices, not higher utilization or resources, appears to be the main driver. More spending does not translate into more services. In 2003, the U.S. had fewer physicians, nurses, and hospital beds than the median OECD country. And while the U.S. adopts many clinical technologies earlier than other nations, ultimately it does not make them more widely available, nor does it always provide the most sophisticated procedures compared with other countries.

Savings Potential of HIT Investment
The health spending disparity could widen as other countries begin to reap savings from national HIT systems. Although no firm data exist to quantify potential savings, one estimate calculates the adoption of electronic health records could produce efficiency and safety savings of $142 billion in U.S. physician offices and $371 billion in U.S. hospitals over the next 15 years. Yet the long-term savings come with a hefty initial price tag. Establishing a national HIT network would cost the U.S. an estimated $156 billion over five years, with an additional $48 billion in operating costs.

Other OECD countries have already begun making substantial investments in HIT, although the scope and type of systems vary widely. The Canadian government, for instance, originally provided $420 million in funding but now expects to spend $1.2 billion to implement its system. In 2002, the United Kingdom announced that its HIT system would cost $4.3 billion over three years, but later more than doubled its estimate and timeframe to $10.8 billion over 10 years. In Australia, more than $1.1 billion in HIT projects are in the works.

In the U.S., pending legislation would authorize a total of $280 million in the next two years, with unspecified funds through 2010. While not yet law, the legislation would also establish a cooperative to adopt standards and authorize grant programs to encourage HIT adoption.

Other Nations Have Head Start on HIT
It was not until April 2004 that the U.S. established the Office of the National Coordinator for Health Information Technology. Several OECD nations are many years ahead in their efforts. Germany, which in 1993 became the first country to begin investing in HIT, expects to complete this year a national network, including “smart card” technology. Canada, whose efforts date back to 1997, expects to have electronic health records for half the population by 2010. The United Kingdom’s program, the most expensive and comprehensive internationally, plans by 2014 to have incorporated an integrated care record service, electronic appointment and prescription transmission systems, and a national network for all providers. Meanwhile, Norway and Australia have at least a six-year jump on the U.S.

The U.S. could gain ground, the authors say, by avoiding the problems that have plagued other nations’ efforts. For example, lack of interoperability among various providers’ HIT systems has presented difficulties in many countries. In addition to creating standards to ensure interoperability, many governments have made public subsidies contingent upon interconnectivity.

To counter privacy concerns, each country engaged in HIT is developing standards that govern how patient data are collected, used, and disclosed. In Germany, for example, the collection of administrative data (e.g., copyament status) is required, but patients can decide how clinical information\such as diagnoses and drug usage\is used and disclosed.

Other countries also recognized early on the importance of involving physicians. England and Australia, for instance, identified early adopters and used them to convince their colleagues of the value of HIT. In the U.S., proposals suggest paying physicians for each EHR submission or incorporating HIT rewards into pay-for-performance systems.












































Efforts to Implement Health Information Technology in Six Countries,
2003

U.S. Australia Canada
Germany
Norway
U.K.
Initial year of national IT
effort
2006 2000 1997 1993 1997 2002
Expected year of complete
implementation
2016 Undefined 50% by 2009 2006 2007 2014
Estimate of total investment (as of
2005)*
$125M $97.9M $1.0B $1.8B $52M $11.5B
Total investment per capita (as of
2005)**
$0.43 $4.93 $31.85 $21.20 $11.43 $192.79
*In U.S. dollars. Exchange
rates as of September 2005: $1 U.S. = $1.31 AUS; $1.19 CAN; $0.80 EURO;
$6.21 NOR; $0.54 U.K.
** In U.S. dollars. Per capita is based on 2003
population numbers from the Organization for Economic Cooperation and
Development (OECD).
Source: Adapted from G. F. Anderson et al, “Health
Care Spending and Use of Information Technology in OECD Countries,”
Health Affairs, May/June 2006
25(3):819–31.

Citation
G. F. Anderson, B. K. Frogner, R. A. Johns, U. E. Reinhardt, Health Care Spending and Use of Information Technology in OECD Countries, Health Affairs, May/June 2006 25(3):819-31

www.cmwf.org/publications/publications_show.htm?doc_id=372221

May 12, 2006

Answer to health care issue

By Dr. Susanne King
Berkshire Eagle

Wednesday, May 10

SMALL BUSINESSES are a mainstay of the Berkshires \ restaurants, stores, garages, contracting and landscaping businesses, and many more, including doctors’ offices. Small business owners are suffering under the weight of the costs of providing and administering health care insurance for themselves and their employees.

Last week I was talking about health care with the chef of one of my favorite restaurants in the Berkshires. He is unhappy about the new health care law passed last month in Massachusetts. He recognizes that the bill will do nothing to reduce his health care costs, but will add millions to the profits of the private insurance companies who helped to craft the bill. He asked about single-payer health care, which would remove the responsibility from businesses to provide health insurance for their employees.

Single-payer health care means that the government (a single payer) would administer the health care funds, rather than the numerous private insurance companies that now administer the funds and keep a significant percentage of the health care dollar for their profits.

In 2005, health plans in Massachusetts reported large profits, posting increased profits from the previous year. United Health Group CEO William McGuire grabbed attention last month with his $1.6 billion (yes, billion) in unexercised stock options. Profit for the company in 2005 was $3.3 billion; United Health had retained 21.4 percent of premiums paid for its own use.

There is no accountability or oversight for the health insurance industry. A recent report from the American Medical Association (AMA) states that while health insurers “are posting record profits, premiums for consumers have increased without any increase in benefits. Instead consumers are paying more out-of-pocket for their health care, through increased deductibles, co-payments and co-insurance.” The AMA did a study which showed that because of mergers and the consolidation of health insurance markets, the health insurance industry is not a competitive industry. In 95 percent of the markets they surveyed, one insurer accounted for at least one-third of the market. This is not a free market.

If we had a single-payer health care system, small business owners would be off the hook. Health care funds would come from a modest payroll tax, and would be administered by the government, at either a state or a national level. It would be like improved Medicare for all. Medicare’s administrative costs are 3 percent: the current system of health insurance consumes 30 percent of the health care dollar.

There would be much more choice in such a system. Patients could chose their own doctors. Patients and doctors would make health care decisions, rather than non-clinical employees of the health insurance industry. And small business owners would be relieved of the financial and administrative burden of trying to provide health insurance for themselves and their employees.

Just imagine such a single-payer system. You go to the doctor, and the office secretary swipes your card \ no deductibles or co-payments. For the doctor, there would be no paperwork or three-month wait for reimbursement or denial of payment from the insurance company: with electronic funds, payment could be immediate. Instead of the headaches and frustrations of dealing with insurance companies, doctors could get back to the job they do best, taking care of their patients.

Small businesses could remain competitive, as they would not have to worry about the financial drain of providing health care insurance for their employees and themselves. And everyone would have much more comprehensive health care insurance, including medical, mental health, dental, prescription drug, and long term care coverage.

Single-payer legislation is the real health care reform that the Massachusetts Legislature should enact, to save the small and struggling businesses that make up the fabric of the communities in our state.

Single payer's bold move into the political arena

California Democratic Party
2006 Platform
Adopted At The Democratic Party State Convention, April 30, 2006

California should lead the nation in providing comprehensive quality health care to all our people by transitioning to a single-payer public health care system.

http://www.cadem.org/atf/cf/{BF9D7366-E5A7-41C3-8E3F-E06FB835FCCE}/2006_platform_final.pdf

Comment:

By Don McCanne, M.D.

When the largest political party in the largest state in the nation explicitly endorses single payer, political feasibility becomes ever more real.

Now that the business community is beginning to understand better the benefits of the single payer model, maybe there will be interest in placing it in the Republican platform as well. We don’t want to hold our breath yet, but…

Let’s keep working to be sure that the business community fully understands all options for reform. A model that finally truly contains costs while allowing the additional luxury of providing comprehensive coverage for everyone just might be what they are looking for. Let’s be sure that they know what single payer really does, and that it’s available now.

May 11, 2006

Editorial Independence and the Canadian Medical Association Journal

John Hoey, M.D.
NEJM
May 11, 2006

On February 20, after almost 10 years as editor-in-chief of the Canadian Medical Association Journal (CMAJ), I was fired without cause.

I packed up my few personal belongings and left the editorial offices for the last time. Anne Marie Todkill, the Journal’s senior deputy editor and a 12-year veteran, was fired the same day. Deputy editor Stephen Choi was named acting editor-in-chief. Steve, a former editorial fellow of the CMAJ, conditioned his acceptance of the position on adoption by the CMA of 10 principles of editorial independence that he laid out. The CMA refused to adopt the principles, and he resigned, as did the CMAJ’s current editorial fellow, Sally Murray. Other resignations followed: Anita Palepu and Claire Kendall, both associate editors of the CMAJ; Laura Eggertson, associate news editor; Nick Barrowman, a biostatistician; and most of the CMAJ’s editorial board.1

The CMA gave no reasons for the firings other than, initially, to “freshen” the CMAJ and, later, for “irreconcilable differences” (so far unspecified) between me and the CMA. The most striking irreconcilable difference was the censoring by the CMA of a report describing the difficulties Canadian women had in obtaining Plan B (a nonprescription drug) from pharmacists.1

This action by the CMA was a clear violation of the principle of editorial independence, as formulated by the World Association of Medical Editors and adapted integrally by the International Committee of Medical Journal Editors (ICMJE), of which the CMAJ is a founding member. As required by this statement of principle, I and my colleagues publicly described the transgression in a lead editorial.2

Clearly, our ability to edit the CMAJ had been severely and, as subsequent events revealed, fatally compromised.

“Independence,” like “freedom,” is a word etched deep in human history. Although both evoke and provoke human emotions and actions, the words themselves are intangible abstract nouns, like “love.” Our understanding of these words comes with experience \ through falling in love or, in contrast, by having our freedom and independence curtailed by opposition and resistance. In Virginia Woolf’s To the Lighthouse, Lily Briscoe (not commenting on editorial independence) notes, “All that in idea seemed simple became in practice immediately complex; as if the waves shape themselves symmetrically from the cliff top, but to the swimmer among them are divided by steep gulfs, and foaming crests. Still the risk must be run; the mark made.”3

Thus, it is highly probable that each editor of a journal and each publisher and owner will have different views of editorial independence. In fact, it may be necessary for them to have differences, else the concept of editorial independence remains an abstraction, empty of meaning.

My experience is limited to editing a general medical journal owned by a national medical association. Journals owned by commercial publishers (for example, the Lancet) and those owned by other types of associations, such as the Public Library of Science (PLoS) journals, swim, perhaps, in different seas. But a common element is that editors and publishers have different perspectives on journal ownership. Owners see their legal rights and responsibilities, their corporate objectives, whereas editors gaze on authors, peer reviewers, editorial boards, journalists, and above all, interested readers, both professionals and members of the broader public. For an editor, the journal is much more than legal ownership. As some of my former colleagues and I have said, a journal is fundamentally about ideas: “The dissemination of medical science is, or should be, ultimately a humanitarian project, and not merely the special preserve of professional associations.”4

Editors must understand this broader journal ownership and convert its traditions, hopes, and aspirations into an editorial direction by recruiting editorial staff and editorial boards with the talents needed to achieve their goals both in the long term and day to day. Failure by journal owners to understand this larger constituency forced the American Medical Association to establish an independent journal oversight committee for its journal, JAMA. In Canada, former members of the CMAJ editorial board and others recently announced that they will launch their own general medical journal as early as this fall.

Medicine can be defined narrowly or broadly. In 1855, Thomas Wakley, founder and editor of the Lancet, editorialized on the Dickensian factory owners who were polluting London and lobbying the government “for the conservation of their right to fatten upon the injury of their neighbours . . . reeking in putrid grease, redolent of stinking bones, fresh from seething heaps of stercoraceous deposits.”5 Wakley saw medicine broadly and wrote about it unflinchingly. Do we? Should we?

For journal owners and publishers, generally risk avoiders, such a wide compass may be perceived (wrongly, I believe) as of little interest to their dues-paying members and as potentially damaging to their political or economic priorities. Owners may wish to limit the scope of their journal, to restrict its editorial perspective to matters of bedside medicine and the narrower interests (as perceived by the usually nonphysician publishers) of their physician readership.

This is neither my vision nor that of the other editors who were fired or resigned from the CMAJ. For Foucault, medicine is a political act. The notion that politically sensitive topics can be expunged from a medical journal is folly. It is also irresponsible. Physicians and their patients must have faith that professional journals facilitate a discourse unencumbered by the economic and political interests of their owners.

“Still the risk must be run; the mark made.”3 This effort must be made by the editor-in-chief and the senior editorial staff on a daily basis. Editorial decisions cannot be discussed or even divulged to the publisher until the articles have been published. To do otherwise, to enter into an operational partnership of some sort with the publisher, is to gut the editorial independence of a journal. The ability of an editor to edit depends to an important degree on the editor’s own outlook and self-assurance (often mistakenly interpreted as arrogance). An eager propensity to poke a stick into something or somebody is also useful. It is a characteristic so widespread, at least among the editors I have known, members of the ICMJE and others, that it may be essential. But the defining characteristic of an editor is quixotic idealism, a characteristic that makes publishers nervous.

The interests of publishers and owners need to converge on the shared objective of maintaining a profitable operation. A journal editor will not last long if the journal does not break even. For the editors of the few journals that make money, the pressures to agree on budgets are similar, since owners want profits maintained or increased.

But once a budget is negotiated, how should the money be spent and the resources allocated? It is here that the objectives of owners (both economic and political) can influence broad editorial direction. Usually, journal budgets have been based on previous years, with slight increases or decreases based on the bottom line. Now, however, even at journals where relations between owners and editors have been tranquil, dramatically expanding online readerships and the growth of open-access journals are beginning to threaten that tranquility, altering the relationship between editorial content and financial success.

Readers of the CMAJ, before it went full-text and free online in mid-1999, were mainly Canadian physicians, members of the CMA, who received the print journal as a benefit of membership. Online readers now outnumber print readers by more than 6 to 1, and only about a third are residents of Canada \ ratios that are undoubtedly similar to those of other general medical journals. Contributing little or no revenue, online readers now contribute most of the CMAJ’s content (manuscripts and letters), interest, and general buzz.

Online readers are a puzzlement to traditional journal publishers, who tend to concentrate on print readers and their associated revenue streams, derived from classified and display advertising. Are what they are reading Canadian, British, and American medical journals, or are they global medical journals? As journal editors stroke eagerly into the more open seas of worldwide readership, will owners be able and willing to follow?

I hope they will. In a world where political correctness obfuscates and public discussions are managed by public-relations firms and paid experts, there is a desperate need in medicine for open, plain-spoken discourse. Without it, the current erosion of public trust in science and medicine will continue and will ultimately translate into poorer individual and population health.

As an editor, I worked with wonderful people at the CMAJ and around the world. I’ll miss it.

Source Information

Dr. Hoey, former editor-in-chief of the Canadian Medical Association
Journal, lives in Perth, Ontario, Canada.

References

1. Shuchman M, Redelmeier DA. Politics and independence — the
collapse of the Canadian Medical Association Journal. N Engl J Med
2006;354:1337-1339. [Full Text]
2. The editorial autonomy of CMAJ. CMAJ 2006;174:9-9. [Full Text]
3. Woolf V. To the lighthouse. New York: Harcourt, Brace & Company,
1929:235.
4. Hoey J, Caplan CE, Elmslie T, et al. Science, sex and semantics:
the firing of George Lundberg. CMAJ 1999;160:507-508. [Full Text]
5. Wakley T. Editorial. Lancet 1855;1:634-635. [CrossRef]

Robert Bazell on health care reform

Bubba blew it. But can U.S. health care be fixed?
Other government programs, healthier nations show it’s possible
By Robert Bazell, NBC News’ Chief Science and Health Correspondent

MSNBC
May 9, 2006

Back in 1992 when Clinton first won the presidency, American health care reform dominated the campaign. When Clinton took office, the Republicans were ready to compromise. Some moderate Republican senators even told me they were willing to discuss extending Medicare, which covers everyone 65 and over, to the entire population. Presto! We would have had universal health insurance.

But Clinton refused to accept it. Instead he allowed Hillary Clinton to set up one of the great farcical bureaucratic efforts of all time - her commission to reform health care.

Why repeat this history? Because health care reform will become a big deal again soon. Right now the Iraq war and gas prices are dominating the political discussion, but lack of affordable heath care impacts so many Americans that it must rise to the top of the agenda again.

Call me old-fashioned (or many other things), but I believe the government can do some things well, and financing health care is one them. That might be worth remembering if someone like Clinton has another shot at universal reform.

MSNBC online survey (not scientific):

Should universal health care coverage be a priority for the U.S. government?
(1446 responses)

80% - Yes. What could be more important than the health of its citizens?
12% - No. It costs too much and isn’t the government’s job.
7.5% - Unsure. It’s a grand idea, but seems like a pipe dream.

http://www.msnbc.msn.com/id/12703029/

Comment:

By Don McCanne, M.D.

When a highly credible representative of the mainstream media is willing to speak up in support of government financing of health care… well… we’re making real progress.

May 10, 2006

Why employer-sponsored coverage is unstable

Why Employer-Sponsored Insurance Coverage Changed, 1997-2003
By James D. Reschovsky, Bradley C. Strunk and Paul Ginsburg

Health Affairs
May/June 2006

Four and a half million Americans gained employer-sponsored health insurance coverage during 1997-2001, while nearly nine million lost coverage in the ensuing economic downturn (2001-2003), after population growth was accounted for. Macroeconomic trends affecting employment, job quality, and incomes drove most of the coverage changes, although key factors varied during the two periods. Take-up rates affected coverage, mostly reflecting the interaction of premium cost trends and labor-market tightness, but take-up also was influenced by the implementation of the State Children’s Health Insurance Program (SCHIP) during 1997-2001. Coverage among low-income people was most affected by economic conditions and premium costs.

http://content.healthaffairs.org/cgi/content/abstract/25/3/774

Comment:

By Don McCanne, M.D.

As if we didn’t have enough reasons to be concerned about using employer sponsorship as a basis for providing health insurance, this study clarifies several of the reasons behind one more important deficiency.
Employer sponsorship provides an unstable source of insurance coverage, in a large part due to factors beyond control of either the employer or the employee.

Once you are insured through an employer-sponsored plan, you have no assurance that you will remain covered until retirement, as this study and others demonstrate.

Once you are insured through an individual plan, you have no assurance that coverage will continue, especially since it has been shown that over two-thirds have left their plans by three years.

Once you are insured by Medicare after reaching age 65, you are assured that you will have coverage for the rest of your life. That’s stability.

We should all have a stable source of health care coverage, throughout life.

Only the government can make that possible.

How To Fix The System

By DONALD BERWICK
Time www.time.com web exclusive
Monday, Apr. 24, 2006

Donald Berwick is a Massachusetts pediatrician and president of the Institute for Healthcare Improvement.

Ask a doctor what’s wrong with America’s healthcare system, and be prepared to pull up a chair. You’ll hear a litany of complaints about Kafka-esque bureaucracies, litigious patients, unreasonable insurance companies, too few nurses, never enough time, too much testing and not enough talk. But complaining gets us nowhere—we need solutions. Here are my top seven reforms for health care.

1. Make Health Care in America a Human Right

The US spends almost twice as much in health care as the next most costly nation, and our system is not even close to the best on earth. The assertion that making health care a human right isn’t feasible — isn’t affordable — makes me mad. It’s just not true; in fact, we are the only developed Western country that fails to view health care as a human right. Leadership for change must come from the President and Congress. Without the promise of health care for all, we aren’t likely to muster the energy and political will we need to meet the needs of our entire population. We’ll limp along, instead, with defects in care and gaps in management that we have trained ourselves to regard as inevitable.

2. Pay for the Care of Populations, Not Events

Our current system of fragmented payment — for hospital stays, office visits, lab tests, drugs, and therapists — destroys the patterns of care that patients need, and leaves them confused and, too often, simply abandoned. Funding care for people over time, instead of for specific medical events, reduces the burden of illness by focusing on high quality preventive care. We need “managed care” as it was originally intended to be — the good kind, not the evil, mutant twin that just tried to cut costs, restrict choice, and limit available care. Correctly conceived, “managed care” addresses the real needs of patients over time and place, guiding them through the technological thicket of modern medicine, and making sure that they get exactly what they want and need, exactly when and how they want and need it.

3. Put the Patient in the Driver’s Seat

The more control patients have over their own care—the more they know, the more involved they are in the design of their care—the better. We haven’t even begun to plumb the real potential of patients who have been taught how to become their own physicians (to the extent that they want to). Despite the rhetoric, most people can’t even get access to their own medical records, and it’s often next to impossible to find data on how one’s own hospital or physician performs compared with others. Some people fear that, given choices, patients will not choose wisely or will demand too much. I doubt it—one study found that when patients actively shared in decisions about whether to have surgery, the rate of surgery fell 23% and satisfaction and outcomes both improved.

4. Computerize Medical Records, Once and for All

My pizza parlor is more thoroughly computerized than most of health care. It’s high time to put the paper medical record where it belongs — in the Smithsonian, next to the typewriter. Proper use of modern information systems for medical records will support much more integrated care, and will allow patients to feel better supported and remembered as they move from place to place and over time. Importantly, a computerized medical record [could] be, and should be, accessible to patients directly, and under their control.

5. Use Modern Engineering Science to Make Health Care Safer and Smoother

The same sciences that allow airplanes to fly safely, that keep the lines moving at Disney World, and that continually reduce the costs and improve the reliability of computers and consumer goods, can help in health care too. To a large extent, health care systems were not designed with any scientific approaches in mind. Too often there are long waits, high levels of waste, frustration for patients and clinicians alike, and unsafe care. A bold effort to design health care scheduling systems, process flows, safety procedures, and even physical space will pay off in better, less expensive, safer experiences for patients and staff alike.

6. Re-Energize Primary Care and Nursing

Our current care system is hospital-centric and physician-centric. We cannot have excellent, coordinated, patient-centered, economical health care without a strong backbone of primary care, and without a vibrant, proud, and joyful nursing workforce. Yet fewer and fewer young people are choosing to go into primary care careers (instead, we are getting an oversupply in specialties like ophthalmology, radiology, anaesthesiology, and dermatology) and the average age of an American nurse is now over 47 years.

7. Give Up the “More Is Better” Myth

Good evidence now shows that the areas in the US with the highest rates of use of hospital beds, intensive care units, specialist consultations, and invasive testing don’t have the best quality of care and outcomes. In fact, they often have the worst. It would be a great advance in both quality and cost if somehow the American public came to understand that “more care” is not by any means always “better care,” and that new technologies and hospital stays can sometime harm more than they help. Patients need to ask more, “Are you sure I need that?” and to trust that, often, the best care is the most conservative care.

May 09, 2006

A doctor speaks out

Dr. Stack wants “Medicare for everyone”
by David Hoppe

Until his retirement in 2004, Dr. Christopher Stack was known as one of the city’s leading orthopedic surgeons. Stack graduated from the Indiana University School of Medicine in 1979 and began his practice at the IU Medical Center. He subsequently practiced at the Hamilton Orthopaedic Clinic, Indiana Orthopaedics and Sports Medicine and, after 1997, Drs. Ireland and Stack Orthopaedics.

Stack was appointed by Gov. Kernan to the Indiana Mandated Benefits Task Force and served as its chairman. Stack is a member of Physicians For a National Health Program, as well as Hoosiers for a Commonsense Health Plan. He is an active advocate for single-payer health coverage, the idea of “Medicare for everyone.” Stack recently spoke to NUVO about what’s wrong with our approach to providing health care - and what can be done about it. Here are his thoughts on the issue, in his words.

What’s always puzzled me is why businessmen don’t go down to Anthem and say, “Hey, what are you guys actually doing for us?” They don’t do anything. Employer-based health insurance amounts to a huge middleman.

Socialized medicine, rationing, two-tier health systems - all of these labels are thrown out to scare people. But the truth is we ration health care now. It’s just unofficially rationed by income. You get the health care you can afford. If you can’t afford it, you don’t get good health care.

If you have no insurance you can’t go into a lot of doctor’s offices - unless you’re going to die.

Private health insurance is dealt with as actuarial, not as social. Medicare is a social insurance. The understanding is that the larger number of healthy people are going to have to pay for the smaller number of unhealthy people. Actuarial insurance is not based on that notion. It says that if you can afford to protect yourself against this contingency, good for you. And if you can’t, too bad.

Medicare’s administrative overhead is 5 percent or less, depending on who you read. Compare that to 20-30 percent in the private sector health insurance industry. The calculations I’ve read, done by people who promote a single-payer idea, would eliminate the current insurance industry and provide enough money to cover everyone at current levels.

The idea that people are sloppy with their health care because they have health insurance is nonsense. They make it sound like if you have good health insurance you’re going to step out in front of a car and get hit because you won’t care.

Medicare for everybody makes the most sense. If you want continuity of care, if you want choice, Medicare is the only way to go. I’ve heard Anthem say the reason why a single-payer plan doesn’t work is because it’s one size fits all, whereas they have thousands of programs to meet your specific need. But that costs them a fortune to administer and it’ll cost you a fortune to pay for it.

Medicare for everybody is not socialized medicine. It is simply a single-payer, which means all your reimbursements are going to come from one place. Medicare is not a sign on the door that says: National Health Service, Dr. Stack. It’s not government ownership of anything. It’s the only way, in my opinion, we can control costs.

There’s a lot of talk about paying for performance and paying for quality, but the fact is that quality is so hard to measure in medicine - and it’s usually being measured by the people who do the work. Every doctor and every hospital will rigidly maintain that they are three standard deviations above the mean.

People will be paying less for fancy procedures and more for a family doctor who will take an hour with somebody to find out exactly what the hell is wrong with them, instead of spending five minutes and trying to guess.

Medicare is one of the most lucrative things that ever happened. We started getting paid for stuff that used to be considered charity work. My father was a doctor in Chicago and I saw that first-hand. He’d get payment-in-kind sometimes.

Every hospital has a charge master, which is their list of what they charge for everything. You can’t get these right now. If St. Vincent’s put their list online you could shop before you went there. But you don’t know what you’re going to need and you don’t know what it’s going to cost. It’s like going to buy a car and saying, “Maybe I should buy this limousine.” It turns out you don’t really need it, but it’s a nice car.

Doctors don’t know what things cost. When I was practicing, I could get some information from the hospital about what an operating room charge was. But you didn’t know what any of the items on the bill would cost. You didn’t
know what an anesthesiologist was going to charge. Radiology is completely separate. All you can say is, “Here’s my bill for this procedure.”

We spend more on health care than we do on primary education, and our health isn’t any better compared to other industrialized nations.

Between 50 and 60 percent of health expenditures are tax-funded. So we’re more than halfway there. There’s nothing radical about what’s being proposed, it’s just a different form.

If everybody had Medicare, you would never be obliged to change your family doctor. Nobody’s going to tell you where to go. They don’t have closed panels of providers. A few doctors don’t see Medicare patients. But the rest
of the world has to take care of sick people and sick people, by and large, are enrolled.

Dr. Stack is a member of Hoosiers for a Commonsense Health Plan, a group of citizens that support a statewide universal health plan. HCHP is working to develop and promote a bill in the 2007 Indiana State Legislature to achieve that goal. In Indiana, over 800,000 people have no health insurance, and significantly more are under-insured, all of whom face barriers to getting needed medical care and financial ruin if they get sick. The HCHP meets the first Friday of every month at the Monroe County Library, 303 E. Kirkwood Ave., Bloomington, at 4 p.m.

For more information, or to get involved, visit these Web sites:

Physicians for a National Health Program: www.pnhp.org

Healthcare - NOW!: www.cnhpnow.org

The Conyers bill for single-payer national insurance:
www.house.gov/conyers/news_hr676_2.htm

Chris Stack, MD, stackc@aol.com

Proof that insurers selectively advertise to healthy

The Relationship Between Health Plan Advertising And Market Incentives:
Evidence Of Risk-Selective Behavior

Health Affairs
May/June 2006

By Ateev Mehrotra, Sonya Grier and R. Adams Dudley

Previous Medicare managed care efforts were undermined by risk selection or “cream skimming,” in which health plans selectively enrolled healthier patients and avoided sicker ones.

Most of the time, health plans are paid a fixed premium for each enrollee, regardless of the enrollee’s health status. In such a situation, patients with chronic illnesses are a potential financial liability, because they are more likely to incur high costs. Compared with reducing costs or improving quality, risk selection is a relatively easier mechanism for health plans to increase profits. A substantial body of research demonstrates that Medicare managed care enrollees are, on average, healthier than Medicare fee-for-service (FFS) enrollees. Provisions in MMA attempt to deter risk selection, but there is concern that these provisions are insufficient and that health plans will still have an incentive to engage in risk selection.

Some believe that health plans actively recruit healthier patients through advertising, but this has never been empirically demonstrated. Others believe that health plans deliberately structure their benefits so that sicker patients voluntarily leave the plan. However, since risk selection is seen even at the time of initial enrollment, pre-enrollment factors such as advertising probably contribute to it a great deal.

We found that the use of ads that are attractive to healthy patients increased nationally from the 1970s through the 1990s as HMOs became more common and gained market share. Furthermore, in 2000, the use of such ads was more common in markets with higher HMO market share than in those with lower market share.

These correlations suggest that as competition increases, health plans attempt to risk-select through advertising.

…health plans spent more than $70 million on newspaper advertising alone in 2000. The total advertising budget is much higher if all media types are included. Our findings imply that health plans are using that advertising to attract healthier patients. From a societal and clinical perspective, these resources are being misused.

http://content.healthaffairs.org/cgi/content/abstract/25/3/759

Comment:

By Don McCanne, M.D.

Advocates of free markets insist that competition between private health plans (e.g., Medicare Advantage) will always result in lower costs than is possible through a single public insurance program (e.g., traditional Medicare). All evidence to date indicates that this is simply not true. The government spends more per Medicare beneficiary in private plans than it does for Medicare beneficiaries, with equivalent health status, in the traditional public program.

One reason that private plans may spend more is the inclusion of pharmaceutical benefits. A much more important reason is the very high administrative costs plus profits that are not characteristic of the public Medicare program. The meme that markets always produce relatively lower prices through greater efficiency has been disproved when applied to health insurance.

Health insurance has a unique feature which allows the administrators to reduce prices without the necessity of increasing efficiency. That feature is risk pooling. If insurance administrators can keep higher risk individuals out of the pool that they are insuring, then costs per beneficiary can be reduced.

This study is important because it confirms, through objective evidence, what we’ve surmised all along. Private insurers are targeting their advertising to a healthy subset of the population.

Where do we draw the line? Is this merely smart business practice in the private market? Or is this a dishonest effort to shift a significant portion of the costs of health care to purchasers of other plans and to the taxpayers through public programs? Whether it’s labeled smart business or a method of cheating the rest of us, it’s clearly wrong!

Some contend that the answer is in risk adjustment, but prior efforts have been feeble or ineffective. Regardless, the success of the private insurance industry primarily has been due to the ability to keep patients with significant needs out of their risk pools. If we are ever successful in ending this perversity of risk pool manipulation, the private insurers will have to charge premiums that will price them out of competition with a publicly-administered program such as Medicare.

It is ironic that an equitable system would require private insurers to charge premiums that are so high that they would result in a death spiral, requiring them to withdraw from the market. But isn’t that the way markets are supposed to work?

May 08, 2006

Making a Case for a Single-Payer System

A CONVERSATION WITH QUENTIN YOUNG, M.D.

Leaving health care in the hands of a market groping for direction is feeding a public outcry that this physician says is…Making a Case for a Single-Payer System
Originally Published by MANAGED CARE March 1999. ©1999 Stezzi Communications

Quentin Young, M.D., is careful to point out that he doesn’t oppose markets or organized health care systems. But Young, national coordinator for Physicians for a National Health Program, thinks that combining the two to create a market-based health system has been a disaster. He points to turmoil among for-profit health care companies and increased public sentiment for tighter regulation of managed care as signs that the current system is heading for a fall. He believes a single-payer plan should replace it.

Young’s views are grounded in more than 40 years as a practicing internist, including a stint as chairman of the internal medicine department at Cook County Hospital in Chicago. In 1980, Young founded the Health and Medicine Policy Research Group as an advocate for poor and medically underserved residents of Chicago. He is immediate past president of the American Public Health Association.

A long-time activist, Young recently shared his thoughts on health reform with Senior Contributing Editor Patrick Mullen.

MANAGED CARE:
After the Clinton health plan failed in 1994, a lot of politicians concluded that large-scale health reform is impossible.

QUENTIN YOUNG, M.D.:
That is the prevailing wisdom.

MC: Another piece of prevailing wisdom today is that market-based health care is here to stay. What’s your view of those two premises?

YOUNG: I believe both are flawed. We at the Physicians for a National Health Program advocate a national single-payer health system. Regarding the notion that this country can’t have such a program, I defend the argument that we can’t have anything but. It’s the only solution, because of problems created by the transformation of health care into a corporate-dominated sector. I feel that we’re on the eve of the failure of marketplace strategies.

MC: Why?

YOUNG:
There remain only three issues: cost, quality, and access, and the system is failing on all three. More than 43 million Americans lack health insurance, and a larger group has such poor insurance that a serious illness would wreck them. Those numbers are going up by an average of 125,000 per month. This was predictable. As costs went higher and competition got greater, it became less attractive for employers to cling ideologically to being the center of finance for health care. The paradox is that business, because of its honest and profound mistrust of government and its hostility to taxes, has clung to a task that is unique to America. In every other industrial democratic country, health care, on one level or another, is the responsibility of society, and usually that means government.

MC:
Why are you confident that single payer would work here?

YOUNG:
We have a spectacular health work force, with nine million of the best health workers at every level: scientists, technicians, specialists, doctors, nurses. The one major flaw is that we way overshot in training specialists. So physicians are 70 percent specialized, 30 percent primary care, and that’s a burden. The case can be made for 60 percent primary care and 40 percent specialists, but certainly 50/50. There are all sorts of costs associated with the excess. Everything specialists do costs more. Just as anteaters eat ants, specialists do what they were specially trained for. It’s a self-fulfilling arrangement that is very costly to the system. That phenomenon was one of the large stimuli for managed care replacing the old laissez-faire system. We certainly have the money for universal coverage. In 1997, the last year for which figures are complete, health care spending in this country reached $1,170,000,000,000. That is $4,005 for every person in the country, more than any other nation. The next country is Switzerland, at $2,400 per capita. Germany spends $2,300 per capita. Canada, with its universal system that has its flaws, spends $2,200.

MC: How is the present system irrational?

YOUNG: The irrationality is essentially a definition of the power of the forces that, for economic or ideological reasons or both, like the way things are. My thesis is that we’re in a time of gathering dismay with the current system, a kind of a protophase.

MC: How is the dismay playing out?

YOUNG: First, the rush toward oligopoly, toward combinations of bigger and bigger companies, some of which have fallen of their own weight. Take these physician practice management organizations. Their collapse is a fantastic thing. It isn’t as though we had a bad storm last week. Practices were disrupted. Organized medicine and the profession as a whole largely created the conditions for this catastrophic event in American health care. Then there is the accumulating, almost cascading public dismay with the system. The turning point came when the mainstream press ceased writing as if HMOs and the marketplace solution were foregone and immutable. Press coverage changed to something quite different, to a frontal critique. It started with the gag clause. A doctor with a gag on his face on Time magazine’s cover is the kind of thing that captures the public’s imagination. Since then, the press coverage has been harsh, although I don’t necessarily think unfair. There’s no more sense that managed care is inevitable or is the highest form of human health endeavor.

MC: Yet the political debate today is over ways to fix managed care. I don’t sense much of a debate over broad national reform.

YOUNG:
The main form of political protest has been the so-called “patients bill of rights,” which is on the national agenda and a form of which I understand is in every single state legislature. Lawmakers pass a reform or a series of things, like giving women two days in the hospital after a delivery or 36 hours after a mastectomy. Even though I identify with those efforts and support them, they are not solutions. It’s one of the bad fallouts from this whole era. It’s a mistake to have 50 state legislatures and the federal government rewrite each state’s Medical Practice Act, which says that medical practice standards are defined by the profession. That’s a profoundly important professional ethic. There are characteristics of the medical profession besides having an M.D., such as peer review and guaranteeing a standard of practice. I would argue that the profession has honored many of these crucial social compacts, these commitments to society. Peer review and discipline of our colleagues who are incompetent or venal or criminal — and all those kinds exist — have only laterally gotten any attention, largely because of consumerist demands. That failure to guarantee the product was a prelude to the managed care event, as was the huge number of unnecessary operations as recently as the early 1980s. These elements clearly were grist for the managed care mill. Even as harsh a critic of managed care as I can say managed care plans had every reason to assault that misconduct and, to the extent possible, eliminate it.

MC: In your view, where did managed care head down the wrong path?

YOUNG: The fatal event was in the operation of the HMO Act during the Reagan years. It opened the doors to venture capital and corporate investment in health delivery, notably HMOs and hospital chains. From an investor’s point of view, it was like a gold mine waiting to be tapped. The health system was very bloated, had no controls, and was inefficiently run. Most of the doctors who ran it were notoriously poor business people. Hospitals were run on a cost-plus basis, so the more inefficient they were, the more money they made. These arguments are legitimately made by many managed care proponents and I can’t resist that part of the argument. They are absolutely right, but I hasten to point out that it doesn’t make sense to put it in the marketplace.

MC: Why not?

YOUNG: Just as I don’t oppose organized prepaid medical systems, I don’t oppose markets. You’d have to be pretty doctrinaire and probably blind not to notice how market-based economies, product development, and production have spectacularly benefited this country. But in health care, based on my experience, it just doesn’t make sense. Say the people who own the company, the investors or their designated executives, hire a prudent and efficient manager. The manager’s goal, again putting the best face on it, is to deliver the best product for the least dollars to the clients, who usually are the employers who bought the health plan. The employer has an interest in a happy and healthy work force. On the plus side, a for-profit health plan is going to do more or less what the not-for-profit prepaid group practices did: Give the best product for the least amount of expenditure.

MC: And on the minus side?

YOUNG: Enter venture capital, and the people who have taken their hard-earned money and put it at risk. In keeping with the basic laws of Adam Smith, they want maximum profits. The pressures, then, are toward what can best be summed up as denial of care. The ways you do that vary greatly and are getting ever more sophisticated. There are some basic ways. One, you avoid sick people. That’s documented in the experience with Medicare HMOs. Data underscore how people joining Medicare HMOs use less of the system even though they pay the median annual expenditures in their region. Another remarkable fact is that people who leave the HMOs become much higher utilizers. The system works to get rid of high utilizers. That is elementary good sense when the bottom line is what you’re looking at. But it’s the exact opposite of what a health system should do.

MC: How has market-based medicine changed patient-physician relations?

YOUNG: The biggest thing that I deplore is that it has adversely transformed the terms of engagement in the consultation room. This has happened in a very brief period. We’re talking about 20 years max of high HMO reality. I’m invoking my long years of practice in Cook County Hospital Clinic, in my own practice in a middle-class neighborhood in Chicago, and in the variety of other venues where I’ve worked. There was, in that one-on-one environment, almost invariably an optimistic, hopeful, friendly, even affectionate mood. The doctor had your interest in mind and was going to try to help you — not always, not invariably, but that was the prevailing mood. That has been transformed. I don’t mean 100 percent, but I do think that there’s a growing feeling among patients that the doctor’s interest can somehow become contrary to theirs. That is to say the doctor will make money or be rewarded for withholding care. I’m not arguing that it’s universally true.

MC: But patients feel that it might be true.

YOUNG: That’s right. That’s what intruded. In the early days of the debate, the marketeers had a model of the health care consumer as kind of a kid in a candy store. The argument was that if you don’t put economic barriers in front of them, they’ll want everything. They’ll want to have their appendix out every day, and prenatal care before they’ve become pregnant. The reality is, people don’t like health care. If you’re going to the doctor when you’re sick, there’s apprehension, there’s nervousness. Did I have a heart attack? What’s he going to be like? Is he going to hurt me when he examines me? If the patient learns happily that things are going to be all right, there are still those needles and tubes and X-rays. Thank God, we doctors have convinced the public that health care may be a way of achieving health, or at least diminishing illness and relieving pain and suffering. That’s the basis of the compact between doctors and patients. The notion that people, if given a chance, would become gluttons for health care, was just fictional, up until recently. That has changed. Now we have patients actually demanding things because they think you’re keeping them from them.

MC: So the bond of trust that patients have for physicians is being frayed.

YOUNG: The irony is that what the market people were saying all the time has come true — thanks to them. They created the aura and the structure of denial. You can’t go to a consultant until you get approval from somewhere.

MC: How do you think a single-payer program would change that?

YOUNG: First, you would get rid of the absolutely useless mountain of paper that has inflicted the American health system. That mountain was growing even before the marketplace thing, just from the plethora of insurance companies and their motivations to be accurate or to avoid payment or whatever the purpose. Making this system work requires that an enormous work force be dedicated to nonproductive work that costs somebody something. Eliminating that would be a huge saving, not to mention the saving in Sturm und Drang.

MC: When Canada’s system is held up as an example, its critics respond by pointing to such things as long waits for elective services. The argument boils down to the view that it does not work there, and it would not work here.

YOUNG: The first downside is one you didn’t mention. It’s the abuse that’s inherent if doctors get paid for everything they do. All you have to say is, “I saw Jimmy Jones and did this and that for him. Send me the money.” In this case, I would hope physicians would take responsibility, the absence of which contributed to the imposition of managed care. Also, in a single-payer system, a doctor who is gaming the system is taking money out of all his honest partners’ pockets, because there is only so much money. So the colleagues would have an economic motivation, in addition to ethical and professional ones, to prevent that. The system would work to prevent it.

Say you have a physician — we’ll just arbitrarily set some criteria — a GP in Calgary, with a panel of 2,000 patients. The age, gender, and illness profile of each patient is easily computerized, and would predict how many electrocardiograms that doctor should do, how many hospitalizations, and so on. Let’s use the example of electrocardiograms. If he does a lot of ECGs, he makes a lot of money. Let’s say the profile suggests he does 350 a year. Two months into the year, he has already billed for 150. For that kind of variation, he might be called by the Health Ministry and told, “You seem to be running a little high. Do you have an explanation?” I am told that on occasion he or she can end the discussion right there. “I admitted 10 people to the hospital with arrhythmias and they need frequent ECGs and I can document this.” If there is not a satisfactory answer, the doctor is invited to meet with a group of his peers appointed by the medical society of Alberta. It’s not an inquisition or a grand jury panel. He will be reviewed by GPs who are, we hope, leaders of their profession. Every two or three weeks, they meet and listen as doctors make their cases. They can conclude that a case is reasonable or unreasonable. Let’s say they find he made some blunders. He’s not shot. They know him. These are his peers. He is urged to take a refresher course in ECG, or maybe get more consultation from his colleagues. The point is that there are prudent ways to control a great deal of the excess we see now, mostly using professional peers.

MC: Let’s talk a bit about the politics of health reform, past and present. Give us your post-mortem on President Clinton’s reform effort.

YOUNG: Clinton’s finest moment, possibly his only fine moment, came when, before both houses of Congress, he held up his pen and said, “I want you to send me a health care bill and I tell you I will not sign anything that is not universal.” It was exciting, no matter where you stood, because he seemed to be putting the maximum weight and prestige of his office behind that commitment. And then nothing happened. It was almost a handbook on how not to get a popular mandate. You do not take 500 people, most of them government employees, and put them behind locked doors to come up with a 1,370-page monstrosity. You can’t wisely write a bill on such an enormous area with so much detail. Every page invited another set of opponents, and Clinton got them.

MC: What did you think of the bill’s content?

YOUNG: The idea had grandeur but it was wrongheaded. I had a lot to criticize about the actual bill. We at Physicians for a National Health Program were critical of it from the beginning. Our single-payer proposal has a simplicity that was starkly absent from Clinton’s proposal. Mrs. Clinton was asked why she didn’t support single payer. She responded, knowledgeably but wrongly, that it’s the best way but it’s unfeasible politically. There’s a huge irony in that. How feasible was their laboriously put together plan? It couldn’t even get out of committee.

MC: How could the Clintons have done things differently?

YOUNG: Instead of working from the premise of feasibility, the president and his wife and the congressional leaders could have had a strategy for victory, by backing the single-payer bill introduced by Rep. Jim McDermott. It had 95 cosponsors in the House, and I would venture the president’s support would have picked up another 50 or 60. It would have been defeated in the House by about 235–200 or something like that. In the Senate, with five sponsors, it might have gotten 10 votes. We would have come to the 1994 elections with a very different script. Here’s a president who promised universal health care. His bill was defeated by a coalition of Republicans and conservative Democrats, thanks to lobbying by the insurance industry and the American Medical Association and all the rest. Clinton could have said in 1994, “This is it, American people, I want you to give me a Congress that will pass this bill.” Rather than the 1994 debacle for the Democrats, he might have gotten a mandate for national health reform.

MC: But that didn’t happen. What’s your political road map for reform today?

YOUNG: Increasingly, I think we’re going to get universal coverage in one or two states, and they may not be the most liberal states, however you define that. Here in Illinois, we have a tailwind behind a proposal to enact a constitutional amendment, the Bernadin Amendment, which is not a commitment to single payer, but to universal coverage. Joseph Cardinal Bernadin [the former Catholic archbishop of Chicago], a highly regarded cleric who died quite graciously from a terrible pancreatic cancer in 1996, wrote and preached extensively on the health matter. He addressed, by invitation, the AMA House of Delegates, Harvard Medical School, and others, and he wrote magnificent pastoral letters on it. Obviously, he wrote from a moral and ethical viewpoint, but also from a good old-fashioned health policy viewpoint. He said, to roughly paraphrase, that health care is so vital to human dignity that society has a responsibility to find health care for all people. In other words, health care is a human right. A lawyer who was at a memorial on the first anniversary of Cardinal Bernadin’s death teased a version of what I just said into a proposed amendment to the state constitution.

MC: What would push states to enact universal coverage?

YOUNG: As much as I’d like it to be, change won’t happen out of altruism or high moral purpose. It will happen out of stern economic necessity and stern health care need. We’re going to see an intensification of the failings of the present system. These include failing to actually deliver care, and the result, for instance, will be that you get a lawsuit because the mastectomy wasn’t done in time because the lump was ignored. Look at how many major companies have backed off of Medicare HMOs. Not least is the debacle that’s assaulting the hospital chains, with Columbia/HCA in the lead. They are still looking at indictments charging billions of dollars of fraud. This is not peanuts, where you just settle and go on. These are destabilizing events. The change will be political in part. You wouldn’t need 250 people elected to Congress on the basis of this issue, but you would need 20 or 30 to win for it to become an issue. Pressure for health reform, a kind of maturing of the reform demand, which was a kind of a wail in the wilderness, is now becoming politically pertinent.

MC: Thank you.

Consumer decisions in the individual insurance market

Consumer Decision Making In The Individual Health Insurance Market
A study in California suggests that the individual market is an important source of long-term coverage for many who purchase it.
Health Affairs
May 2, 2006

by M. Susan Marquis, Melinda Beeuwkes Buntin, José J. Escarce, Kanika Kapur, Thomas A. Louis, and Jill M. Yegian

Abstract:

This paper summarizes the results from a study of consumer decision making in California’s individual health insurance market. We conclude that price subsidies will have only modest effects on participation and that efforts to reduce nonprice barriers might be just as effective. We also find that there is substantial pooling in the individual market and that it increases over time because people who become sick can continue coverage without new underwriting. Finally, we show that people prefer more-generous benefits and that it is difficult to induce people in poor health to enroll in high-deductible health plans.

Study Results

Continuity of coverage.

Our study of the California market… suggests that the market is an important source of long-term coverage for a sizable fraction of those who purchase it. About 60 percent of new coverage episodes continue more than one year, and more than 30 percent continue for more than three years.

Access for poor health risks.

Underwriting might prevent some high-risk market candidates from obtaining insurance because insurers are free to deny coverage. Those who obtain health insurance are in better health than those who remain uninsured.

Turnover and pooling of health risks.

Although the individual market is a source of long-term coverage for a large share of subscribers, as reported above, it also serves a population of people who enroll for only a short period of time.

The role of price in consumers’ decisions.

Although price has only a small effect on the decision about whether or not to buy, it has a bigger effect on the decision about which product to buy.

The role of benefit design on demand.

Consumers in poor health are more likely than healthier consumers to demand generous benefits.

Nonprice barriers to purchasing coverage.

Choice in the individual market means that the complexity of the shopping task is also high.

http://content.healthaffairs.org/cgi/content/full/hlthaff.25.w226v1/DC1

Comment:

By Don McCanne

This RAND study celebrates the fact that only 69 percent of beneficiaries in the individual insurance market have left their plans by the end of three years. Their finding that substantial pooling takes place over time certainly does not apply to the great majority of these individuals.

Rather than the positive message of how well the individual market is working, the other results reported only further confirm the inequities and deficiencies of the individual insurance market. The flaws won’t be repeated here since you can read several of them above.

The article also “offers some lessons for policymakers looking for strategies to encourage more of the uninsured to participate in this market.” The suggestions offered constitute minimal tweaking of the plans, only perpetuating the injustices permeating the individual insurance market.

The primary lesson for policymakers should be that we need efficient, affordable, comprehensive coverage for everyone through a single, national health insurance program. As a think tank, RAND should go back and do some more thinking on this one.

Massachusetts' 'Universal Coverage' Bill is No Such Thing

By Kip Sullivan
In These Times, May 8, 2006

Odds are good that Romney will rue the day he took credit for this bill.

Legislators around the country are looking to the law recently passed in Massachusetts for answers on how to cope with the health care crisis in their states. Will Massachusetts really be the first state to achieve universal health insurance? Should Republican voters across the country see this legislation as evidence that Republican Governor Mitt Romney, who is likely to seek his party’s nomination for president, is an effective leader, or a “Republican In Name Only” who believes in too much government?

Proponents of the new law say it will result in near-universal coverage in the state by 2010, reducing the uninsured rate in Massachusetts to 1 percent from its 2004 rate of 11 percent. Beginning July 1, 2007, the law will require uninsured Massachusetts residents to either buy health insurance or face fines. Romney signed the bill on April 12.

The law has drawn an enormous amount of media coverage, much of it superficial. On April 12, the Associated Press reported, “The bill, intended to extend coverage to Massachusetts’ estimated 550,000 uninsured, is being touted as a national model, thrusting the state to the forefront of the national debate about how to provide near-universal health care coverage without creating a single government-controlled system. It’s also a political coup for Romney as he weighs a potential run for the Republican presidential nomination in 2008.”

Romney, who has repeatedly stated that the bill represents his thinking more than that of the Democratically controlled House and Senate, told the New York Times, “This is really a landmark for our state because this proves … that we can get health insurance for all our citizens without raising taxes and without a government takeover. The old single-payer canard is gone.”

However, Romney’s expectations of the law are going to be dashed, and his obituary for single-payer will prove to be premature. The fundamental flaw of the Massachusetts law is that it does little to reduce health care cost inflation. The bill attempts to improve coverage by funneling money through the bloated insurance industry. Insurance companies allocate roughly 20 percent of their revenue to cover their administrative costs (which include marketing, telling doctors how to practice medicine, providing dividends, and financing high management salaries). That is 10 times the overhead of Medicare, which allocates only 2 percent of its expenditures to overhead, and about 20 times that of Canada’s single-payer system, which allocates 1 percent. Moreover, a system of multiple insurers drives up the administrative costs of clinics and hospitals. This is especially true if all or most of the insurers practice managed care.

Nor is it likely that lowering the uninsured rate in Massachusetts will lower total health spending and premium inflation. Although the argument is often made that the cost of extending coverage to the uninsured will be more than offset by the reduction in medical costs due to improvements in the health of the formerly uninsured, there is little evidence for this claim. It is true that having health insurance is associated with better health. But it is also true that the insured use many more medical services than the uninsured do—some studies have estimated nearly twice as many.

The failure of the Massachusetts law to cut health care costs will be aggravated by its method of reducing the number of uninsured: It requires all Massachusetts residents to buy health insurance. Health insurance, in other words, will be treated like car insurance—you have to have it or youfll be in violation of state law and subject to a fine.

This provision, known as an “individual mandate,” is supported primarily by Republicans. AFL-CIO president John Sweeney characterized it as a regressive measure that only Gingrich Republicans would support. “Forcing uninsured workers to purchase health care coverage or face higher taxes and fines is the cornerstone of Mr. Gingrich’s health care reform proposals,” Sweeney said. “It is unconscionable that Massachusetts has adopted this misguided individual mandate.”

To meet their obligations under the mandate, most employed Massachusetts residents will continue to buy health insurance from their employer. But because the law does little to reduce premium inflation, employer flight from the health insurance market will continue, forcing more and more employees to purchase insurance on their own. In Massachusetts today, it costs employers about $4,000 per year to insure an employee without dependents and $11,000 a year to insure an employee with dependents.

So, how will the state’s uninsured be able to afford such a big-ticket item? The law requires the state to pay the entire premium for those under the federal poverty level (about $10,000 in annual income for an individual), and to provide sliding scale subsidies for those between poverty level ($20,000 for a family of four) and 300 percent of poverty (about $29,000 for an individual). Unfortunately, it is impossible from reading the law to know what the minimum level of coverage will be, how much insurance companies will charge for it, and how much the subsidy will be for any given income level. The law merely tells us that a state board with the odd name “board of the connector” will determine what constitutes “minimum creditable coverage,” and that this board will determine how big the subsidies have to be to make the coverage “affordable” to residents. (The term “connector” in the board’s title reflects its central task of assembling individuals who don’t have insurance through work and small employers into a large pool so that they can purchase insurance at the lower rates large employers get.)

To get some sense of how the law is going to work, we must turn to statements by the lawmakers who wrote it. They claim they can reduce insurance premiums for individuals, for example, from $4,000 down to $2,400 a year. This seems extremely unlikely. The only way the Massachusetts insurance industry can reduce premiums even a little, never mind by 40 percent, will be by offering substantially reduced coverage. This will not endear residents to Governor Romney and his “model” legislation. If, on the other hand, coverage is not reduced and premiums therefore remain near current levels, subsidies will have to be raised, which means taxes will have to go up, which won’t endear Romney to Massachusetts residents or to voters, especially Republican voters, in other states.

What will probably infuriate residents most will be the enforcement of this bill. The bill requires employers, providers, and residents to make reports to the government about who has insurance, and it punishes the uninsured with fines enforceable by the Department of Revenue. Residents who donft have insurance in 2007 will lose their personal income tax exemption (worth about $150). In succeeding years they will be fined half the price of the cheapest health insurance policy that the “connector” deems to be creditable coverage about $1,200 if premiums indeed fall to the $2,400 range, and closer to $2,000 if premiums are in todayfs $4,000 range. Penalties for families will apparently be even higher.

The spectacle of hundreds of thousands of Massachusetts residents having to buy insurance with awful coverage that they cannot afford, and many refusing to buy insurance and taking steps to avoid paying their fines (such as not filing income taxes) will come into focus in the latter half of 2007 and the first half of 2008—that is, in the year leading up to the 2008 Republican national convention. The media, in short, will have plenty of time to unearth horror stories about Romney’s “model” legislation. Odds are good that Romney will rue the day he took credit for this bill.

Kip Sullivan sits on the steering committee of the Minnesota Universal Health Care Coalition. He is the author of The Health Care Mess, available at authorhouse.com.

Unions Should Break With Managed Care

by Kip Sullivan
May 2006

During the 1980s and ‘90s, cost-control tactics pioneered by HMOs spread throughout the entire health insurance industry. Those tactics, known collectively as “managed care,” were applied by the insurance industry first to employees of large-employers, and then to small-employers.

Even though it has been obvious since the mid-1990s that managed care has failed to cut costs or improve quality of care for private-sector employees, the insurance industry is attempting to take over the last islands of unmanaged medicine – the nation’s Medicare and Medicaid programs. They argue that managed care is just the ticket for what allegedly ails these programs, and their arguments are succeeding. About half of all Medicaid recipients, and at least 13 percent of Medicare recipients, are in HMOs, and the percents grow every year.

UNIONS EMBRACED HMOS

The AFL-CIO helped create this mess. It did so by endorsing the concept of the “health maintenance organization” when it was first proposed by Richard Nixon in 1971, and, over the ensuing decades, by repeatedly endorsing the diagnosis of the health care crisis promoted by HMO advocates (namely, that doctors order too many services and someone has to do the dirty work of telling doctors and patients no).

The Nixon administration concocted the phrase “health maintenance organization” in February 1970. In March 1970, the administration announced that this new-fangled form of insurance would be the centerpiece of Nixon’s health policy. With the critical support of the AFL-CIO, Nixon’s proposal, known as the HMO Act, became law in 1973. This is the law that created the planet’s first HMO industry. The HMO Act subsidized the formation of HMOs and required employers with more than 24 employees to offer an HMO to their employees if an HMO existed in their area.

The definition of an HMO in the 1973 law was extraordinarily vague. Informally, experts said then, and say now, that an HMO is an insurance company which uses managed care tools – financial incentives to get doctors to deny care and second-guessing of doctors if the financial incentives don’t work – and which imposes restrictions on choice of doctor. HMOs limit choice of doctor because that enhances the power of managed-care tools (doctors with higher proportions of their patients insured by an HMO are more likely to cooperate with the HMO).

BIPARTISAN SUPPORT

Because Democrats controlled Congress at the time, Nixon obviously needed considerable Democratic support to get his HMO Act passed. He got it, in part because the AFL-CIO was so enthusiastic about HMOs. Democrats such as Senators Ted Kennedy, Walter Mondale, and Warren Magnuson, and Representatives Wilbur Mills and Paul Rogers, all lent their names to HMO legislation introduced during the 1971-73 period.

In testimony presented to the Senate Subcommittee on Health on October 5, 1971, the AFL-CIO heaped lavish praise on HMOs. The testimony was presented by Andrew J. Biemiller, then director of the federationfs Department of Legislation. Biemiller, a former member of Congress himself, opened his testimony with this statement: “Let me say at the outset that the AFL-CIO has had differences … with this [the Nixon] Administration. However, we are in complete accord on the importance of utilizing public funds to stimulate the development of … Health Maintenance Organizations.”

Biemiller went on to say that HMOs “can provide better quality medical care at lower cost than the fragmented fee-for-service system” and that the savings HMOs could achieve were “enormous.” His only significant reservation about Nixonfs HMO bill was that it would have subsidized for-profit HMOs. But because there is no evidence that managed care is less toxic in the hands of nonprofit than for-profit HMOs, this reservation was of little significance.

At the time that Biemiller testified in favor of HMOs, there were only three dozen HMOs in existence in the country. In part because of AFL-CIO support, the 1973 HMO Act passed, and that in turn facilitated the takeover of the U.S. health insurance industry by managed care insurers.

Whereas there was no powerful industry promoting HMO propaganda in 1971, today there is, thanks in part to the AFL-CIO. Today, virtually the entire health insurance industry promotes managed care.

BLOCKING SINGLE PAYER

Today the insurance industry uses its great economic power to oppose single-payer legislation (which would drastically reduce the size and influence of the industry) and to support further privatization of Medicare and Medicaid. They support their arguments the same claim Andrew Biemiller presented in 1971 – that managed care is a necessary tool in the fight against health care inflation.

Despite solid evidence that turning Medicare and Medicaid over to HMOs raises the costs of these programs and damages quality of care, politicians of both parties continue to support the further privatization of both programs.

To give you some idea of how solid the data against privatization of Medicare and Medicaid are, consider just two studies. A 2003 study of California’s Medicaid program, which is partially privatized, by a University of Maryland economist concluded that privatization raised that program’s cost by 20 percent.

In a 1999 report to Congress, the U.S. General Accounting Office stated, “[N]umerous studies conducted by us … and others demonstrated that the Medicare program spent more on beneficiaries enrolled in health plans than it would have if the same individuals had been in FFS [‘fee for service,’ which refers to the traditional Medicare program].”

Unions do not wield as much influence with Democrats today as they did in 1971, but they remain a critical part of the Democratic base and could play a very important role in sharpening and strengthening Democratic health policy. The AFL-CIO could help the nation extract itself from this health care mess if it were to renounce its endorsement of managed care and undertake a campaign to roll back the privatization of Medicaid and Medicare.

It would be even more helpful if the federation would also endorse single-payer legislation that has been introduced every year in the U.S. House of Representatives since 1991. But the mere renunciation of the AFL-CIO’s longstanding support for managed care would be very helpful to the single-payer movement.

Kip Sullivan is the author of The Health Care Mess: How We Got Into It and How We’ll Get Out of It.

May 04, 2006

Massachusetts' health plan is not single-payer

By Matthew W. Petty
Op-Ed, The Forum (Fargo, ND)
May 4, 2006

The single-payer national health insurance system described by Josh Swanson in his April 23 opinion in The Forum is the best solution to America’s health care crisis. Unfortunately, the Massachusetts legislation Swanson describes is not single-payer, nor does it solve the health care crisis.

The Massachusetts proposal mandates that people buy their own coverage - with little or no help from employers - or pay a hefty fine. Swanson compares health insurance to auto insurance, arguing that if every driver is required to buy auto insurance, it is fair to make every person buy his or her own health insurance. But this argument ignores the critical fact that people have a choice to own a car but no choice about being an all-too-human mortal.

Extending the auto insurance argument to social policy fails to address real crises. For example, no one wo uld suggest ending homelessness and hunger by mandating that all homeless people buy a house and all hungry people buy food.

Requiring the uninsured to purchase health insurance will simply result in a proliferation of health insurance policies not worth the paper they are printed on. A 2005 Harvard study shows that three-quarters of people bankrupted by illness had health insurance when they first became ill. That percentage could skyrocket if the country adopted a Massachusetts-style individual-mandate law thanks to cheap and skimpy insurance policies.

Swanson is correct that many studies show single-payer to be the most cost-effective solution to the health care crisis. Unfortunately, the Massachusetts plan only adds to the health care system’s administrative waste. Massachusetts’ health care system already devotes $13.3 billion to billing, marketing, and other administrative costs. If the state devoted the same percentage as Canada’s single-payer system to bu reaucracy, the state’s health care system could save $9.5 billion annually, enough to cover all that state’s uninsured and to improve coverage for everyone else.

The Massachusetts health care proposal purports to provide health insurance to nearly all state residents. In reality the proposal promotes shoddy coverage with more holes than Swiss cheese. Insurance will remain unaffordable even with tax subsidies, forcing state residents to spend as much as 20 percent of their income for health insurance. The proposal will do nothing to stop employers from dropping coverage for workers, control costs, or reduce paperwork.

Nations with single-payer systems (e.g., Canada, Sweden, Norway, Germany, etc.) have better health outcomes while spending less per capita. Adopting a true single-payer system is the real solution to America’s health care crisis.

Petty is a 2001 graduate of Fargo’s Shanley High School and a 2005 graduate of Northwestern University with a bachelor’s degree in social policy and specialization in health policy. He is currently office manager and research associate with Physicians for a National Health Program, a 14,000-physician-member national nonprofit organization based in Chicago. E-mail matt@pnhp.org.

Higher-income uninsured do not receive recommended services

Use of Health Care Services by Lower-Income and Higher-Income Uninsured Adults

By Joseph S. Ross, MD, Elizabeth H. Bradley, PhD, and Susan H. Busch, PhD
JAMA
May 3, 2006

Our study provides recent, nationally representative estimates of the use of recommended services for cancer prevention, cardiovascular risk reduction, and diabetes management for insured and uninsured adults with varying annual household incomes. We found that high numbers of uninsured and lower-income adults are not receiving recommended care-challenging the views of a majority of people in the United States who believe that the uninsured are able to get the care they need from physicians and hospitals.

In addition, our findings indicate that even among higher-income adults, lacking insurance was associated with significantly decreased use of recommended health care services; we found that increased income did not attenuate the association between being uninsured and using fewer recommended health care services for cancer prevention, cardiovascular risk reduction, and diabetes management. The gap in the use of recommended care between uninsured and insured adults did not narrow significantly as income increased for any recommended service we examined. In fact, we found that the gap in the use of recommended care between uninsured and insured adults significantly widened as income increased for use of cervical and breast cancer screening, serum cholesterol screening, and eye examination and influenza and pneumococcal vaccination for diabetes management. In these cases, income not only failed to attenuate the association between being uninsured and using fewer recommended health care services, but the effect of lacking insurance was more pronounced for the higher-income uninsured than the lower-income uninsured. Moreover, when using the comparison between successive income levels rather than the trend across income, we found that for nearly every comparison, increased income did not significantly attenuate the association between being uninsured and using fewer recommended health care services. Thus, our findings are not limited to inferences regarding the highest-income uninsured, but are relevant for uninsured adults of all incomes.

Currently, many of the proposed health care reforms from both the public and private sector involve increased out-of-pocket cost-sharing or deductibles, such as the recent authorization of health savings accounts through the 2003 Medicare Modernization Act. The results of our study suggest that such reforms may increase the number of adults not receiving recommended health care; adults using out-of-pocket funds to purchase health care services, whether they are enrolled in health savings accounts, employer-sponsored high-deductible insurance plans, or plans with substantial cost sharing, may not purchase recommended chronic and preventive care at levels comparable with adults enrolled in traditional health insurance plans.

It is important to note that it is possible that in situations in which the net benefit to the individual is low, the net benefit to society may still be high.

http://jama.ama-assn.org/cgi/content/full/295/17/2027
Abstract:
http://jama.ama-assn.org/cgi/content/abstract/295/17/2027

Comment:

By Don McCanne, M.D.

There is no dispute. Regardless of income level, either the lack of insurance or excessive cost-sharing results in decreased utilization of clearly beneficial health services, with resultant impaired health outcomes.

Some contend that personal choice must prevail over all other considerations. If a person does not want to contribute funds to a risk pool (i.e., health insurance) then the individual should have the freedom to make that choice.

Others, including many conservatives, do not believe that health care costs should be shifted from “free riders” who do not contribute to risk pools, to the rest of us who will bear the cost of those who lose the bet they placed when they declined to participate. Most agree that some form of government intervention is required to be certain that would-be free riders contribute equitably to the costs.

Government precedence over individual choice is certainly not a new concept. We already have in place many requirements that are designed to protect the public from the costs of individuals who make bad choices. Seat belt and helmet laws protect society from financial losses due to injury of others. Auto insurance mandates also prevent free rider status by enforcing risk pooling.

This new study shows that individuals who can afford health insurance are avoiding care that can prevent health care spending that might well be shifted to the rest of us through higher taxes and insurance premiums. When speaking of rights, we should have the right to require that the free riders reduce our exposure to their potential monetary losses from their adverse health events.

Some of us are passionate supporters of national health insurance simply because we believe that everyone should have the right to affordable health care. For those who don’t really share this belief, just the simple concept of fairness dictates that we should eliminate free riders by including everyone in an equitably funded risk pool. And common business sense dictates that the most efficient and effective method would be through a single payer system. We should all be able to agree on this.

Barbara Ehrenreich: President Bush, Meet Lorraine

By Barbara Ehrenreich
Published on The Progressive (http://progressive.org)
April 2006 Issue

Here’s the news that rocked my little world this month: We got a message that a family friend, let’s call her Lorraine, who was in an ICU, barely able to breathe on her own. In the last few weeks, there’d been some mumblings about “not feeling a hundred percent,” but no hint of anything seriously wrong. The diagnosis came back in a couple of days: fourth-stage breast cancer, which has spread to a number of other organs, including her lungs. If you know anything at all about breast cancer “staging,” you know there is no fifth stage.

Lorraine has no health insurance. We didn’t know that. In fact, we’d been content to believe that her consulting business was going as well as she said it was. In her late forties now, she’s a former accountant who never could find another decent job—also a news junkie, an avid reader, and an energetic volunteer in a number of worthy causes. But it turns out she’s been struggling with the cell phone bill and the rent. A few weeks ago, unbeknownst to us, she’d moved out of her apartment and into a free room offered by one of the nonprofits she volunteers for. The cost of a mammogram—well over $100—must have been out of reach.

President Bush, in his State of the Union address, said we should each have a “catastrophic” health insurance policy for the big ticket items like breast cancer, plus a tax-deductible savings account for the little things, like mammograms. If we have to take “personal responsibility” for our doctor visits and routine care we’ll be thrifty about it—or so the thinking goes—and the nation’s medical expenditures will stop spiking like an Ebola fever.

It’s an old idea, going back at least to the Clintons, that the problem with the American health system is that we, the consumers, just consume too much. Make us mindful of the costs by raising co-payments and other out-of-pocket costs, and we’ll stop indulging in blood workups, MRIs, prostate exams, and all those other fun things.

President Bush, meet Lorraine. Her problem wasn’t that she feasted on unnecessary care, but that like so many of the forty-five million uninsured Americans, she was’t getting any care at all. Maybe, when she first noticed the lump, she should have staged a sit-in at the nearest clinic until it sprang for a free mammogram. But her idea of “personal responsibility” was not to be a bother to anyone.

And how much does the “personal responsibility” theory even apply to the insured population? I have insurance—at enormous cost, because I’m not part of a group plan and I’m an ex-breast cancer patient myself—but that doesn’t mean I choose what care I get. It’s not my idea to have an annual mammogram and pap smear. The doctor had to threaten tears before I’d submit to a bone scan, and they’ll have to drag me in for a colonoscopy. No one aside from the rare victim of Munchausen’s syndrome goes looking for recreational medical care.

The fact is there’s a big difference between the economics of health care and that of, say, costume jewelry. We the consumers control the demand for costume jewelry; we can splurge on it or leave it alone. But we have precious little control over our demand for health care. Sure, we can exercise and refrain from smoking and sky-diving and swimming with sharks. We can eat right, too (whatever that may mean, with the dietary advice fluctuating from month to month). But it’s the medical profession that determines how often we need our blood drawn, our breasts squished, our cervices scraped, or any of the other nasty interventions they have to offer.

If the medical care we consume was under our own control, I’d say, sure, save up for it and use it wisely. But it’s no more in our control than the wind and floods we insure our homes against.

You think it’s too expensive to have universal health insurance? Let’s be hard-headed about Lorraine’s case. If she’d been diagnosed earlier, she might have gotten by with a mastectomy and a bout of chemotherapy instead of burning up Medicaid dollars in an ICU. She might be out volunteering for the needy right now, instead of lying in terror in a hospital bed.

Barbara Ehrenreich is a columnist for The Progressive. Her latest book is “Bait and Switch: The (Futile) Pursuit of the American Dream.” Her website is www.barbaraehrenreich.com.

Unions Back Single-Payer Health Plan

SINGLE-PAYER GOVT. HEALTH CARE BILL GAINS UNION BACKERS AS ‘COVER THE UNINSURED’ WEEK RUNS


By Press Associates, Inc. Staff Writer Mark Gruenberg

WASHINGTON (PAI) – A bill establishing a government-run Canadian style single-payer health care system for the U.S., built on Medicare, is gaining union backers, coincidentally as “Cover the Uninsured” week ran from May 1-7. The measure, H.R. 676 by Rep. John Conyers (D-Mich.), would eliminate the private for-profit health insurance industry by establishing a government-run system.

The “United States National Health Insurance Act” would be funded through the federal budget, says a fact sheet from the Robert Wood Johnson Foundation, which covers health issues and which sponsors the week spotlighting the uninsured.

Momentum for Conyers’ bill – plus the week-long observance and a planned Senate debate the same time on health care issues – comes just after the Massachusetts legislature voted to require every state resident to buy insurance.

GOP Gov. Mitt Romney, who plans to seek his party’s presidential nomination, signed the bill, but used his line-item veto to ax its provisions that required corporations to pay their fair share of health care bills. That prompted AFL-CIO President John J. Sweeney to say “it is simply ridiculous” for Romney to “try to solve Massachusetts’ health care problems by dumping them on the backs of working people.”

“An individual mandate to buy insurance can only work if it is paired with a guarantee of affordable, comprehensive coverage, and the legislation falls dangerously short of that goal,” Sweeney added. He said the result is that a single worker earning $28,000 a year would have to pay $350 a month – or 15 percent of pre-tax income – for health care. Health care now takes slightly more than one-sixth of U.S. gross domestic product – the measurement of the value of all goods and services in the country.

Other health care advocates in the Bay State point to a proposed universal health care state constitutional amendment, to be discussed at a May 10 conference.

The latest backers of Conyers’ bill were the Ohio legislative board of the Brotherhood of Locomotive Engineers and Trainmen/IBT, Letter Carriers Branch 3126 of Royal Oak, Mich., and Graphic Communications Conference/IBT Web Pressmen’s Local 4N of San Francisco. The Ohio BLET said it will take the cause to its conference convention in June and – if it wins – to the Teamsters convention immediately afterwards.

Their endorsements, in late April, came just after that of the Pennsylvania AFL-CIO, on April 6, after lobbying by USW Local 3567 member Janet Hill, who is also secretary of the Pittsburgh-area Coalition of Labor Union Women. Both the Pittsburgh and Philadelphia CLUW chapters had earlier endorsed Conyers’ legislation.

The Pennsylvania AFL-CIO, which claims 900,000 members, is the second state fed to back H.R. 676, after Kentucky’s. Conyers also has 68 U.S. House co-sponsors.

And Amalgamated Transit Union Local 825, which represents bus drivers, mechanics and other workers at New Jersey Transit, also voted to ask its parent international to back Conyers’ bill.

“We believe this is a very important program and we urge our international executive board to consider endorsing HR 676,” Local 825 President Muhsin Rasuul wrote ATU President Warren S. George about the localfs executive board and membership endorsements of the legislation.

But Conyers’ bill may not see the light of day in the GOP-run Congress, which instead is considering legislation – in the Senate – that would supposedly help small businesses band together to get health insurance.

In reality, the AFL-CIO said, that measure, pushed by the so-called National Federation of Independent Business – a key section of the ruling Republicans’ Right-Wing coalition – could raise the premiums on people who are insured and increase the number of the uninsured, now 46 million.

Itfs those uninsured people who are the focus of the week-long “Cover The Uninsured” drive, with the backing of the AFL-CIO, SEIU, several health care groups and even the U.S. Chamber of Commerce. But while the groups all agree there is a health care coverage problem, they are silent on how to solve it.

Conyers’ bill would mandate comprehensive coverage of all medically necessary services primary care and prevention, inpatient and outpatient care, long term care, emergency care, mental health services, prescription drugs, durable medical equip-ment, full dental services (except cosmetic dentistry), substance abuse treatment, chiropractic services and basic vision care and vision correction, the summary says.

“No cost-sharing would be imposed and benefits would only be available from public or non-profit providers,” it adds. “Non-profit HMOs that deliver care in their own facilities and employ clinicians on a salaried basis could participate.”

And there would be no insurance premiums.

Hospitals and nursing homes would get monthly lump-sum payments while doctors and nurses would get fee-for-service payments under a negotiated fee schedule based initially on current prevailing fees or reimbursement, the foundation says.

Data from Americafs Agenda: Health Care For All, a group headed by former UFCW President Doug Dority, shows health insurance premiums rose 60 percent since the year 2000, but “the proportion of premiums that insurers paid out for medical costs declined” in the same time.

The money went into insurers’ profits and claims processing – paperwork. Other data shows private insurers spend approximately one-fifth of their revenue on overhead, including processing. Medicare – the basis for Conyers’ bill – spends three percent.

Cover the uninsured

New Jersey, EDITORIAL
Sunday, April 30, 2006

Tomorrow begins the fourth Cover the Uninsured Week, a nonpartisan, national effort to urge U.S. leaders to make health coverage for Americans their top priority and to facilitate the enrollment of uninsured people who are eligible for subsidized health-care programs. With some 1,000 public events scheduled nationwide, Cover the Uninsured Week will be the largest such campaign in history. Among those who will make the case for national solutions in forums in Washington, D.C., and around the nation will be business leaders who will describe how rising health expenses limit their ability to provide health insurance for their employees and drive up the cost of competing on a global basis.

Nearly 46 million Americans lack health coverage. New Jersey feels the consequences more harshly than most; our state ranks ninth among the states in the percentage of its residents who are uninsured, according to a report issued last Wednesday by the Robert Wood Johnson Foundation, one of the chief sponsors of Cover the Uninsured Week. The state’s 1.3 million uninsured — 15.3 percent of its population — are four times more likely than its insured residents to have no personal physician or health-care provider, which makes them less likely to receive preventive services, such as mammograms, pap smears, prostate screening tests and colonoscopies. That, in turn, leads to sickness that costs many times to treat — usually at public expense — than the cost of prevention would have been. A similar report last week by the Commonwealth Fund showed a rising number of uninsured among moderate-income and middle-income families: Two in five working-age Americans with annual incomes between $20,000 and $40,000 were uninsured for at least part of 2005, the report said, and 70 percent of the uninsured were in families with at least one working adult.

— — —

Many states are intervening on behalf of their citizens. Earlier this month, for example, Massachusetts forged a bipartisan coalition to adopt the nation’s first universal health-insurance law, requiring all residents to obtain coverage and providing ways to make that coverage affordable for everyone. It’s encouraging that two of New Jersey’s legislative leaders on health care, Sen. Joseph Vitale, D-Woodbridge, and Assemblyman Neil Cohen, D-Union, have promised to meet with employers, consumer groups, insurance firms, hospitals, doctors, drug firms and other key players over the next six months to determine whether the Massachusetts approach could be adapted for this state, possibly as an expansion of New Jersey’s existing FamilyCare program, which provides health coverage to 139,000 working-poor parents and 112,000 children.

Bravo for the states that are trying. But the problem is a national one and must be solved nationally. Our preference, as we have said many times, is for a single-payer system like Canada’s that eliminates the administrative costs that make up such an enormous part of the overall cost of health care. However, any serious attempt by Congress and the White House to cover America’s uninsured would be vastly preferable to the indifference they display today.

© 2006 The Times of Trenton

May 03, 2006

Private Care Is No Cure

To view Medicare Watch’s February 2006 newsletter, click here. (PDF file)

May 02, 2006

FOX NEWS on the single-payer solution

In U.S Hospitals, Emergency Care in Critical Condition
By Don Snyder

FOX NEWS
May 1, 2006

Data from the American College of Emergency Physicians, which represents 23,000 ER doctors, paints a chilling picture of a system in decline. The capacity of the nation’s emergency systems has decreased by 14 percent since 1993, ACEP says, as more than one thousand hospitals have closed their emergency departments nationwide. Meanwhile, demand continues to increase, with 114 million ER visits reported in 2003, the highest number the CDC has ever recorded.

Single-Payer Solution?

Doctors interviewed for this article unanimously decried the deterioration of emergency care and see a single-payer universal health plan as the answer. They point out that government programs could meet important health needs and operate with less overhead than private plans designed to make profits and satisfy stockholders.

For example, according to (Dr. Peter Viccellio, the head of the emergency department at Stony Brook University Hospital), Medicare operates with a 3 percent overhead compared to private insurers who spend 30 percent on overhead.

Stony Brook University Hospital spends $15 million dollars a year on billing because the private plans are so different and criteria for payment so complex. A single payer system would eliminate the need for each hospital to operate its own billing department.

“I could vaccinate a lot of kids with the $15 million our hospital would save,” said Dr. Viccellio.

However, the medical community is itself divided on this issue of universal health care.

In August 2003, the prestigious Journal of the American Medical Association proposed a national health insurance program that had been endorsed by more than 8,000 doctors, including two former surgeons general.

The American Medical Association, the largest medical organization in the United States, immediately distanced itself from the article. It said that while JAMA was associated with the AMA, the publication is editorially independent. The AMA has historically opposed a national health insurance system.

AMA president Donald Palmisano, responding in 2003 to the JAMA proposal, acknowledged that “a solution is desperately needed.” However, he said that a national health care system would “ration care, increase bureaucracy and demoralize doctors and patients.”

Doctors who support a national health care plan acknowledge that a prerequisite for adoption of universal health care in the United States is a fundamental change in attitude by Americans.

“The commitment to health care is a commitment by an entire society,” said (Dr. Angela Gardner, head of the task force that studied the nation’s emergency health care facilities). “I think at the moment Americans struggle with how much they are committed to health care for everyone.”

http://www.foxnews.com/story/0,2933,193883,00.html

Comment:

By Don McCanne, M.D.

By including a comment by former AMA president Donald Palmisano dredged from their 2003 files, FOX NEWS has provided a “fair and balanced” report. But even FOX NEWS couldn’t deny that all physicians interviewed for this report were unanimous is seeing “a single-payer universal health plan as the answer.”

May 01, 2006

Krugman - Death by Insurance

Death By Insurance
By Paul Krugman

The New York Times
May 1, 2006

For lower-income working Americans, lack of health insurance is quickly becoming the new normal. That’s the implication of survey results just released by the Commonwealth Fund, a nonpartisan organization that studies health care. The survey found that 41 percent of nonelderly American adults with incomes between $20,000 and $40,000 a year were without health insurance for all or part of 2005. That’s up from 28 percent as recently as 2001.

Many of the uninsured reported spending their entire savings on health care and/or that they were having difficulty paying for basic necessities. And most uninsured adults reported cutting corners on medical care to save money - failing to fill prescriptions, skipping medications, going without preventive care.

Here’s the other side of the same coin: health insurers’ business is lagging, reports The Wall Street Journal, as “rising premiums and medical costs push more of their traditional-employer customers to shun or curtail company health benefits.” And some investors are feeling the pain. Aetna’s stock price fell sharply last week, on news that its “medical cost ratio” - a term I’ll explain in a minute - rose from 77.9 to 79.4.

Taken together, these stories tell the tale of a health care system that’s driving a growing number of Americans into financial ruin, and in many cases kills them through lack of basic care. (The Institute of Medicine, part of the National Academy of Sciences, estimates that lack of health insurance leads to 18,000 unnecessary American deaths - the equivalent of six 9/11’s - each year.) Yet this system actually costs more to run than we would spend if we guaranteed health insurance to everyone.

How do we know this? The medical cost ratio is the percentage of insurance premiums paid out to doctors, hospitals and other health care providers.

Investors are upset about Aetna’s rising ratio, because it leaves less room for profit. But even after the rise in the cost ratio, Aetna spends less than 80 cents of each dollar in health insurance premiums on actually providing medical care. The other 20 cents go into profits, marketing and administrative expenses.

Other private insurers have similar ratios. And here’s the thing: most of those 20 cents spent on things other than medical care are unnecessary.
Older Americans are covered by Medicare, which doesn’t spend large sums on marketing and doesn’t devote a lot of resources to screening out people likely to have high medical bills. As a result, Medicare manages to spend about 98 percent of its funds on actual medical care.

What would happen if Medicare was expanded to cover everyone? You might think that the nation would spend more on health care, since this would mean covering 46 million Americans who are currently uninsured. But the uninsured already receive some medical care at public expense - for example, treatment in emergency rooms that would have been both cheaper and more effective if provided in doctors’ offices.

And Medicare manages to spend much more of its funds on medicine, as opposed to other things, than private insurers. If you do the math, it becomes clear that covering everyone under Medicare would actually be significantly cheaper than our current system.

And this calculation doesn’t even take into account the costs our fragmented system imposes on doctors and hospitals. Benjamin Brewer, a doctor who writes an online column for The Wall Street Journal, recently commented on the excess expenses he incurs trying to deal with 301 different private insurance plans. According to Dr. Brewer, he currently employs two full-time staff members for billing, and his two secretaries spend half their time collecting insurance information. “I suspect,” he wrote, “I could go from four people in the paper chase to one with a single-payer system.”

Many pundits see red at the words “single-payer system.” They think it means low-quality socialized medicine; they start telling horror stories - almost all of them false - about the problems of other countries’ health care. Yet there’s nothing foreign or exotic about the concept: Medicare is a single-payer system. It’s not perfect, it could certainly be improved, but it works.

So here we are. Our current health care system is unraveling. Older Americans are already covered by a national health insurance system; extending that system to cover everyone would save money, reduce financial anxiety and save thousands of American lives every year. Why don’t we just do it?

http://select.nytimes.com/2006/05/01/opinion/01krugman.html?hp

Comment:

By Don McCanne, M.D.

Why don’t we?