current issues in health insurance uahu annual education symposium grace-marie turner galen...
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Current Issues in Health Insurance
UAHU Annual Education Symposium
Grace-Marie TurnerGalen Institute
May 12, 2010
Americans satisfied with own care
55% say the current system is good or excellent, up from 35% when Obama first proposed his reform ideas last May
75% say their own coverage is good/excellent
Only 7% say their coverage is poor
71% believe taxes will increase for the middle class under ObamaCare
“55% Rate U.S. Health Care System Good or Excellent,” Rasmussen Reports, May 3, 2010 at http://www.rasmussenreports.com/public_content/politics/current_events/healthcare/april_2010/55_rate_u_s_health_care_system_good_or_excellent.
Americans OPPOSE ObamaCare
54% - Want the health overhaul law repealed Rasmussen
52% - Say it will reduce the quality of care
56% - Believe cost of health care will go up
59% - Say it will increase the deficit
Two-thirds say it will increase the national debt Two-thirds say it will increase the national debt Fox NewsFox News
56% believe it will increase health costs56% believe it will increase health costs
Just 12% Just 12% think the bill should go into effect in its think the bill should go into effect in its current formcurrent form
Americans are Ideologically ConsistentHow U.S. adults responded to the question: Do you consider yourself to be liberal, moderate or conservative?
Source: Wall Street Journal/NBC News polls; margin of error for January 2010: +/-3.1 percentage points.
Architecture of the new lawMandate on individuals to buy insurance
Employer mandate to “Play or Pay”
Strict federal regulation of health insurance and care delivery
Major expansion of Medicaid
Cuts to Medicare
New and higher taxes to finance insurance subsidies and expanded entitlements
Early Warning Signs
Congressional members voted themselves out of health insurance
$14 billion in company write downs – Rep. Waxman summons companies then admitted
“the companies acted properly…These one-time charges were required by applicable accounting rules.”
They learned that major companies are considering dropping employee health benefits
More Danger SignsReport from Medicare Actuary Rick Foster validates fears– People will lose coverage– Huge fines for companies– Spending increases– You can’t keep your doctor– Coverage but no care
CBO – ObamaCare will raise family premiums by $2,100 in 2016.
ObamaCare So Far
41 states have filed various challenges against ObamaCare
19 states opt out of high-risk pools
$115 billion higher price tag
RAND study – health premiums could rise 17% for young adults
Businesses required to file 1099 with the IRS for every business transaction totaling more than $600
Push-back coming from…Doctors and patients: Losing control over medical decisionsSmall businesses and big employers: New taxes, penalties, and mandatesStates: Higher costs for MedicaidConsumers: Higher costs for insurance and fewer choicesSeniors: Cuts to MedicareConstitutionality of the individual mandate
It’s Not Government’s JobMore Americans now say it’s not the federal government’s responsibility to make sure all Americans have health care coverage than say it is – a first in Gallup’s polling of this question that started nearly a decade ago.
Do you think it is the responsibility of the federal government to make sure all Americans have health care coverage, or is that not the responsibility of the federal government?
Source: Newport, Frank. "More in U.S. Say Health Coverage Is Not Gov’t. Responsibility." Gallup. 13 Nov 2009. Gallup, Web. 27 Jan 2010. <http://www.gallup.com/poll/124253/Say-Health-Coverage-Not-Gov-Responsibility.aspx>.
Some realitiesSome realities
Source: Mercer's National Survey of Employer-Sponsored Health Plans; Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April) 1990-2009; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April) 1990-2009.
What we know for sure
SCOPE: Americans are frightened about sweeping changes in any 2,800-page law – whether offered by Democrats or Republicans
TRANSPARENCY: They want to be engaged and consulted in an open debate
COMPLEXITY and COST: This is a huge, far-reaching law that was poorly-drafted and that most Americans don’t believe we can afford
R-E-P-E-A-LRRepeal ObamaCare’s massive new taxes epeal ObamaCare’s massive new taxes
EEliminate job-killing mandates on businessesliminate job-killing mandates on businesses
PProtect citizens from IRS enforcers by repealing rotect citizens from IRS enforcers by repealing the individual mandatethe individual mandate
EEliminate cuts in benefits to seniors on Medicare liminate cuts in benefits to seniors on Medicare AdvantageAdvantage
AAvoid crippling the states with expensive void crippling the states with expensive mandatesmandates
LLimit government intrusion into personal medical imit government intrusion into personal medical decisionsdecisions
R-E-P-L-A-C-ERReal help for people to purchase health insurance they eal help for people to purchase health insurance they
choose choose
EExpand states’ ability to help people with pre-existing xpand states’ ability to help people with pre-existing conditions conditions
PPut Medicare savings into saving Medicare ut Medicare savings into saving Medicare
LLawsuit abuse reform awsuit abuse reform
AAllow doctors and patients to control medical llow doctors and patients to control medical decisions decisions
CControl costs though consumer-friendly health reform ontrol costs though consumer-friendly health reform
EExpand access through cross-state purchasing of xpand access through cross-state purchasing of health insurance health insurance
Starting a fresh conversation
Engaging patients as partners in managing health costs and getting the best value for health care dollars
Putting Patients FirstMoney for the uninsured: Expand access to health insurance through fairness in tax subsidies, starting with the uninsured
More options for coverage: Allow opportunities to buy affordable, portable insurance, including from other states
Help for those with pre-existing conditions: Funding for states to create guaranteed access to help those with higher health risks purchase and maintain insurance coverage
The future?There is a global move toward consumerism, driven by greater patient demand for information and more control over decisions. Democracy and innovation must prevail.
Health overhaul is law and would fundamentally change the relationship between government and citizens. Americans don’t want it!!!
J. Michael McGinnis, Pamela Williams-Russo, and James R. Knickman. The Case For More
Active Policy Attention To Health Promotion. Health Affairs, March/April 2002; 21(2): 78-93.
New Incentives McKinsey & Co. says CDHC plans increase
consumer awareness of cost and value. Consumers are:
20% more likely to comply with treatments for chronic conditions 25% more likely to engage in healthy behaviors30% more likely to get annual physicals50% more likely to seek less expensive care
“If I catch an issue early, I’ll save money in the long run.”
McKinsey & Company. “Consumer-Directed Health Plan Report – Early Evidence is Promising.” June 2005. Available online at http://mckinsey.com/clientservice/payorprovider/Health_Plan_Report.asp.