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November 28, 2002

Final report of the Commission on the Future of Health Care in Canada

Statement by Roy J. Romanow, Q.C, Commissioner
On the release of the final report of the
Commission on the Future of Health Care in Canada
November 28, 2002

Conclusion

In completing this report, I am acutely aware that the support of Canadians
for their health care system is not given freely. It is given in exchange
for a commitment that their governments will ensure that high quality care
is there for them when they need it.

If Canadians come to believe that their governments will not honour their
part of the bargain, they will look elsewhere for answers. And the grave
risk we will face is pressure for access to private, parallel services- one
set of services for the well off, another for those who are not. Canadians
do not want this.

Our reform agenda is an ambitious one, but at a time when one of our most
cherished national programs is at a crossroads, Canadians expect no less
than an ambitious plan.

I am always mindful of the lineage of Canada's medicare system. It began
with the CCF party in my home province of Saskatchewan. It was a
Conservative Prime Minister who appointed Emmett Hall. And that it was a
Liberal government that introduced legislation to create modern Medicare.
And it was politicians of all stripes, and from all regions, that joined
together to UNANIMOUSLY approve it.

Ideology was not an issue then, nor should it be today. Medicare was simply
the right choice to make, and it remains so. Is it a left-wing or a right
wing agenda to want to provide Canadian businesses with comparative
advantages in the global marketplace? Is it a left wing or a right agenda to
opt for an approach to delivering services that any detached, objective
examination of the evidence shows to be more efficient, more affordable and
more equitable?

Forty years ago, when visionary men and women came together to create
Medicare, we had private medicine in Canada. You paid out of pocket to
receive medical services if you could afford them, or relied on the dole if
you couldn't. If you needed an operation, you cashed in your savings,
mortgaged your home or sold your farm so you could pay, or you simply did
without. If you had the resources or good fortune, you were able to pay your
way to the front of the line; if you didn't, you waited and prayed for the
best.

Many of the so-called "new solutions" being proposed for health care-
pay-as-you-go, user and facility fees, fast-track treatment for the lucky
few, and wait-lists for everyone else- are not new at all. We've been there.
They are old solutions that didn't work then, and were discarded for that
reason. And the preponderance of evidence is that they will not work today.

In the coming months, the choices we make, or the consequences of those we
fail to make, will decide medicare's future. I believe Canadians are
prepared to embark on the journey together and build on the proud legacy
they have inherited.


http://finalreport.healthcarecommission.ca/pdf/HCC_Speech.pdf

The entire report is now available at:
http://finalreport.healthcarecommission.ca/

November 26, 2002

Healthcare system is due for transformation

BCBSHealthIssues.com
Healthcare System Is Due for Transformation
By Margaret Heldring, PhD
President and CEO, America's HealthTogether

At the top of the healthcare agenda for the 108th Congress could be the
transformation of our present healthcare system. According to a recent issue
of Health Affairs, nearly 60 percent of the national healthcare dollar is
now financed through taxes-for such programs as Medicare, Medicaid, SCHIP,
the Veterans Administration, tax-subsidies for workers, and public employee
benefit plans. The new Congress will be working hard to reduce that
percentage-by squeezing program revenues, cutting benefits, and forcing
individuals to pay for more of their own healthcare expenses.

At America's HealthTogether/Coalition Health First, we believe that there's
a better way. All Americans deserve quality, affordable healthcare.
Healthcare should be an essential service, such as public education and
national security that we all can count on. There is one insurance program
that includes everyone, regardless of income, race, ethnicity, gender, and
health status. One program that is administered efficiently and is simple to
understand and use. One program that guarantees choice of provider, and is
rated highly by a large proportion of its members. That program is called
Medicare for Americans aged 65 and older and millions of the disabled.

As more Americans are forced to drop their health insurance coverage because
of higher premium costs or to pay more out-of-pocket for their current
coverage, we predict that a new and improved Medicare program for all
Americans may start sounding like a winning solution in 2004.

Dr. Margaret Heldring served as the Director of Health Policy for former
Senator Bill Bradley's 2000 presidential campaign. She is a clinical
psychologist with more than 30 years experience in health care.

America's HealthTogether is a public policy organization devoted to assuring
affordable health care for all, unencumbered access to essential health care
services, and a belief that mental health is fundamental to good health.

http://bcbshealthissues.com/proactive/newsroom/release.vtml?id=35530

November 25, 2002

Healthcare System Is Due for Transformation

By Margaret Heldring, PhD
President and CEO, America's HealthTogether

At the top of the healthcare agenda for the 108th Congress could be the transformation of our present healthcare system. According to a recent issue of Health Affairs, nearly 60 percent of the national healthcare dollar is now financed through taxes-for such programs as Medicare, Medicaid, SCHIP, the Veterans Administration, tax-subsidies for workers, and public employee benefit plans. The new Congress will be working hard to reduce that percentage-by squeezing program revenues, cutting benefits, and forcing individuals to pay for more of their own healthcare expenses.

At America's HealthTogether/Coalition Health First, we believe that there's a better way. All Americans deserve quality, affordable healthcare. Healthcare should be an essential service, such as public education and national security that we all can count on. There is one insurance program that includes everyone, regardless of income, race, ethnicity, gender, and health status. One program that is administered efficiently and is simple to understand and use. One program that guarantees choice of provider, and is rated highly by a large proportion of its members. That program is called Medicare for Americans aged 65 and older and millions of the disabled.

As more Americans are forced to drop their health insurance coverage because of higher premium costs or to pay more out-of-pocket for their current coverage, we predict that a new and improved Medicare program for all Americans may start sounding like a winning solution in 2004.

Dr. Margaret Heldring served as the Director of Health Policy for former Sentor Bill Bradley's 2000 presidential campaign. She is a clinical psychologist with more than 30 years experience in health care.

America's HealthTogether is a public policy organization devoted to assuring affordable health care for all, unencumbered access to essential health care services, and a belief that mental health is fundamental to good health.

Problem of Lost Health Benefits Is Reaching Into the Middle Class

This article was reported by John M. Broder, Robert Pear and Milt Freudenheim and was written by Mr. Broder.

By JOHN M. BRODER
November 25, 2002

Diane MacPherson, of Lowell, Mass., lost her job at a relocation management company last November, and with it the health insurance for herself, her husband and their 4-year-old daughter. Her husband works in construction and does not have access to health care coverage at work.

Continuing her family health insurance under the federal Cobra program would have cost $931 a month, so the couple decided to insure only their daughter, at a cost of $270 a month. Two months ago, when Ms. MacPherson's unemployment compensation payments ran out, they dropped their health insurance altogether. Although her husband earns about $75,000 a year, construction work is seasonal and they could not be assured of enough income every month to pay for health insurance.

Then their daughter came down with strep throat. "That was rather humiliating, being in the doctor's office without insurance," Ms. MacPherson said. "You become very obvious to everyone."

The family represents a changing portrait of the 41 million Americans who do not have health insurance today. Once thought to be a problem chiefly of the poor and the unemployed, the health care crisis is spreading up the income ladder and deep into the ranks of those with full-time jobs.

According to recently released Census Bureau figures, 1.4 million Americans lost their health insurance last year, an increase largely attributed to the economic slowdown and resulting rise in unemployment. The largest group of the newly uninsured — some 800,000 people — had incomes in excess of $75,000. They either lost their jobs, or were priced out of the health care market by rapidly rising insurance premiums, or, like Ms. MacPherson, both.

While it is true that the number of uninsured people rises when unemployment goes up, it is also true that the rolls of the uninsured can expand even when joblessness is going down, as it did through most of the 1990's.

The numbers of uninsured during the last recession from 1990-92 jumped to 35.4 million from 32.9 million. But the number continued to rise even in the boom years of the mid- to late 1990's, reaching 40.7 million in 1998 before dipping slightly in 1999 and 2000.

Labor economists say that much of the job growth during the expansion of the 1990's came in small businesses and in service industries, low-wage, nonunion sectors that are much less likely to offer health insurance as a benefit to new workers. There was also a demographic bulge of young people and recent immigrants entering the work force during the decade, with many of them willing to take jobs that did not offer rich benefit packages.

The problem has long been acute among minorities, immigrants, part-time workers and employees in low-wage service jobs. What is different this time, analysts say, is that the problem is hitting middle-income and upper-income families harder because many of the job losses are in high-wage industries like technology and telecommunications.

Thirty million Americans in working families today — 16 percent of all those in families headed by a worker — lack health care coverage, according to a four-year tracking study by the Center for Studying Health System Change, a nonprofit research group financed by the Robert Wood Johnson Foundation. An additional 16 million Americans — mostly low-income workers — are offered health insurance through their jobs but decline because they get health care from government programs or it is too expensive, the study found.

"The failure of the economic boom to expand employer-based coverage for working families significantly is ominous," the center said in a recent study. It found that the current slowdown and the rising cost of providing health care to employees produced a double whammy: fewer companies are now willing to offer their workers health care coverage, and those that do will demand that employees shoulder a far higher share of the cost.

Rising Concerns


Policy makers and health care analysts say the United States is again confronting a crisis in its medical delivery system.

"The number of uninsured will continue to grow as long as health insurance premiums rise more rapidly than earnings, as they have for a decade," said Drew E. Altman, president of the Henry J. Kaiser Family Foundation, which tracks health coverage trends.

"Losing health benefits is becoming a middle-class issue," Mr. Altman said. "If it had not been for expansions in the child health program and Medicaid, we would have 10 million more uninsured."

The growing number of uninsured and the rising cost of health insurance have stimulated Congressional interest on a scale not seen since 1993 and 1994, when President Bill Clinton tried to remake the health care system and guarantee coverage for all Americans.

The major proposals being debated now fall into two main categories. One approach, favored by Republicans and some Democrats, would provide tax breaks to help individuals, families and small businesses buy health insurance in the open market. The other, preferred by many Democrats, would expand eligibility for Medicaid or the Children's Health Insurance Program to include the parents of some children who are already eligible.

Either plan could have eased the situation of Brian and Anna Brooks, who run a small electrical contracting business in Westminster, Colo. They gave up their health insurance for themselves and their 8-year-old daughter this year to keep their business afloat.

They had already let go four of their five workers and wanted to maintain health coverage for their remaining employee.

Ms. Brooks said that they dropped their health coverage in July after the family premium jumped to $989 a month from $489 a month. Business was slow, and their previous income of more than $60,000 a year had fallen by half.

The effect has been immediate. Mr. Brooks, 50, has stopped taking Lipitor to control high cholesterol and has started taking over-the-counter herbal supplements. Ms. Brooks no longer takes Singulair for asthma and has adopted an exercise program intended to regulate her breathing. Ms. Brooks estimates they are saving $150 a month by not using prescription drugs.

"We changed our diets a lot in order to help the effectiveness of the supplements, and maybe that's a good thing," she said. They are setting aside $30 a month for their daughter's medical needs, but one ear infection would quickly empty the pot.

The federal Cobra program, enacted as part of the Consolidated Omnibus Budget Reconciliation Act of 1986, is devised to provide a cushion for those who have recently lost their jobs. It allows workers to maintain their health care coverage for up to 18 months if they assume the full cost of the health coverage provided by their former employer. But many find the cost prohibitive, and only a quarter of workers say they would keep up their coverage under Cobra because of its high cost, according to a new survey from the Commonwealth Fund, a private research group.

Betting on Good Health

The high cost of Cobra coverage presents many people who have recently been laid off with a cruel choice. Audrey Robar of Milwaukee, 63, who lost her job at a private social services agency in September, decided to skip the $300 a month Cobra package in the expectation that she would soon find another job.

It was a gamble, and she lost.

"She was thinking she could get away with it," her daughter, Eva Robar-Orlich, said in an interview last week.

In the early hours of Oct. 23, Ms. Robar began to suffer chest pain and dizziness. She called her sister to ask whether she could seek medical care immediately and sign up for Cobra later. Her sister, Alden Egan, urged her to call an ambulance right away, but Ms. Robar set down the phone to look for the Cobra documents. Ms. Egan then heard over the open phone line the sound of her sister falling to the floor and quickly called 911. By the time paramedics arrived a few minutes later, Ms. Robar was dead of a heart attack.

"I think the fact that she hadn't paid for Cobra very well could have cost her her life," said Ms. Robar-Orlich. "She deliberated over calling an ambulance at a time when every minute was urgent."

Because the insurance crisis has hit high-income families and millions of middle-class Americans with jobs, advocates for the uninsured have expressed hope that Washington will finally resolve the problem. High-wage workers and small-business owners are a much more effective lobbying force than the unemployed, children and the poor.

Mary R. Grealy, president of the Healthcare Leadership Council, an industry coalition seeking coverage for the uninsured, said: "We are very optimistic. More and more people say that the uninsured will be a big issue in the next Congress."

"Lawmakers have seen the new face of the uninsured — it's not a welfare population — and will seek solutions for the employed uninsured," the many working families who lack insurance, Ms. Grealy said. "This is now an issue for Republicans," she added. "It's not just a one-party issue."

Ronald F. Pollack, executive director of Families USA, a consumer group, said that Republicans and Democrats could agree on proposals combining tax credits with some expansion of Medicaid and the Children's Health Insurance Program.

On the other hand, proposals to aid the uninsured could easily touch off a partisan brawl, in which lawmakers fight over the merits of government programs versus the private market.

President Bush has already proposed tax credits and is expected to offer more proposals to help the uninsured as part of his budget early next year.

In his first two budgets, Mr. Bush earmarked a large amount of money for health insurance tax credits: $89 billion over 10 years, for people who are not covered by an employer's plan and not eligible for public programs. The proposal languished in Congress, but Mr. Bush will have a greater incentive to push for action this year.

"The president wants to develop a record on health care to neutralize this issue going into the 2004 elections," Mr. Pollack said.

The issue is of particular concern to small-business owners, who say they would like to offer their employees health insurance but cannot keep up with the fast-rising premiums. They are a large and influential lobby and an important base for the Republican Party.

Martyn Hopper, the California state director for the National Federation of Independent Business, said that 42 percent of the state organization's 37,000 member businesses did not offer their employees health care coverage. He blames rising premiums and the high cost of doing business in California, which has imposed a number of expensive mandates on employers. Big companies, Mr. Hopper said, can move operations to cheaper locations or offshore, but mom-and-pop businesses are forced to lay off workers or make their employees pay an ever-increasing share of health care costs.

Tom Lucas, who owns two plant nurseries outside Los Angeles, said that he provided health coverage to his 70 employees until the mid-1990's, when the cost became crushing. Mr. Lucas said that some of his workers have spouses with jobs that provided insurance, some drove to Mexico to seek cheap treatment and drugs, and some did without.

He said that health coverage was particularly expensive in California because the legislature had imposed a number of mandates on the policies that employers must offer, including coverage for mental illness, comprehensive cancer screening, substance abuse treatment and weight loss programs.

"Health insurance is a luxury I can't afford for my people," he said. "It's a great perk, but in an industry like my own, it's not reality. There's not enough dollars to go around."

Roadblocks to a Solution

While there is continuing public concern about health care and gathering sentiment in Washington to do something about it, a number of constraints are limiting the likelihood that the growth in the numbers of the uninsured will be reversed any time soon.

Growing federal and state budget deficits will make it difficult to find money to subsidize coverage for the uninsured. The president and members of both parties have promised prescription drug benefits to the elderly, who vote in large numbers, and fulfilling that commitment is a higher political priority for most lawmakers than addressing the problem of the uninsured.

In addition, doctors, hospitals, nursing homes and other health care providers are demanding higher Medicare payments, which will eat up money that could be used to cover people with no insurance. Medical providers are much more effective lobbyists than are the uninsured.

A number of proposals on Capitol Hill would at least incrementally address the problem. One, sponsored by Senators Susan Collins, Republican of Maine, and Mary L. Landrieu, Democrat of Louisiana, would provide tax credits for the health insurance expenses of individuals, families and small businesses; allow small businesses to take a tax deduction for the full cost of their premiums; and allow states to cover low-income parents and legal immigrants under Medicaid and the Children's Health Insurance Program, know as CHIP. The bill would also provide federal money to the states to establish insurance purchasing cooperatives for small businesses and high-risk pools for people who cannot get insurance in the private market because of chronic illnesses.

As Congress debates, however, employers and workers continue to struggle with higher costs and more difficult access to health care.

Mitch Flinchum, the controller at a highway paving company in Burlington, N.C., sees the problems from both ends — as an executive in charge of benefits and as a consumer.

Mr. Flinchum pays more than 10 percent of his $65,000 annual salary for health insurance for his family, but he considers himself better off than most of his company's 350 workers. Only 119 of the employees accept the coverage, and two-thirds of those pay only for themselves and not their dependents. Mr. Flinchum says most of the workers who decline insurance do so because the premiums are costly and the coverage is so meager.

"When you look at your benefits, you've got massive deductibles, massive co-pays, and unless you have a heart attack or cancer, which would be devastating in itself, it's like you don't have any insurance," he said.

"I don't know where it stops," Mr. Flinchum added. "With a 20 percent increase each year, over time the only two people in this country who will be able to have health insurance are Bill Gates and Warren Buffett. No one else can afford it."

SINGLE PAYER BILL WILL BE REINTRODUCED ON DECEMBER 4, 2002

From MassCARE:

The Massachusetts Health Care Trust will be resubmitted on December 4, 2002.  Activists will be in the State House gathering signatures of legislative cosponsors on:
           
Tuesday, December 3rd – 10am to 4pm – call the office at 800-383-1973 if you would like to join us.  We will meet at the 4th Floor cafeteria

Wednesday, December 4th – 9am to 1pm in Room 222 at the State House. Join us if you can.

Senator Steve Tolman (D-Brighton) and Representative Frank Hynes (D-Marshfield) are the new lead sponsors for the bill.  Both legislators agree that the best strategy is to file the bill only in the Senate, this makes it easier to move.  Frank Hynes will be listed as the lead House sponsor and will sign right under Steve Tolman.  Representatives can sign onto a Senate bill, I am assured that Reps are used to doing this.

CALL YOUR STATE SENATOR AND STATE REPRESENTATIVE AND TELL THEM THAT YOU EXPECT THEM TO SIGN ON AS A COSPONSOR.

THANK YOU.

Al Gore on Single-Payer: New Republic

DAILY EXPRESS
The Single Guy
by Jonathan Cohn
Only at TNR Online | Post date 11.22.02

It looks like Al Gore wasn't kidding two weeks ago when he let slip his intentions to propose a single-payer health care system for the United States. In a piece about Gore published earlier this week, Ron Brownstein of the Los Angeles Times reports that Gore told him the very same thing--and in considerably more detail. Specifically, Gore told Brownstein that he would unveil his plan early next year, and that the plan would observe three principles: The actual practice of medicine would still be done through the private sector; Americans would have "choices"; and the plan would reduce spending by streamlining bureaucracy. "The system as a whole has reached a point of no return," Gore said. "It is collapsing. It is beyond saving in its current design."

Is Gore nuts? Not on policy grounds. In a single-payer system, the government becomes the nation's health insurance company. Instead of paying premiums to an insurer (either directly or through an employer), each American would pay that money to the government; in turn, the government would pay the providers of medical care--i.e., mostly private doctors and hospitals--in the same way insurance companies now do.

Make no mistake: It's a radical overhaul. But single-payer also has clear virtues: As a general rule, the more people who belong to an insurance pool, the more thinly you spread the financial burden of illness, which can be devastating if you face it alone or within a small group. By definition, single-payer spreads the risk pool across the largest number of people possible--namely, everyone in the country. In addition, while people may associate government with excessive bureaucracy, single-payer systems devote far less money to administrative overhead than private insurance. (Among other things, insurance companies spend a ton of money on advertising.)

Typically, opponents of single-payer insist it's better to have a private insurance system that promotes more "choice." But one of the chief advantages of single-payer is that it gives patients the kind of choice that matters--not choice of insurance plan, but choice of doctor. For example, if you switch plans today, you may discover your favorite physician doesn't take your new insurance. But in a single-payer system, virtually every physician would take government insurance, so that would no longer be an issue.

And, of course, single-payer systems by definition make coverage universal--i.e., they give insurance to every citizen as a birthright, regardless of employment status. This isn't just fair: It may also be more efficient, since it would allow people more freedom to change jobs and pursue better opportunities.

None of this means single-payer is ultimately the best way to go on health care. In fact, there are some pretty valid objections to it, though not necessarily the ones its critics are making today. But its virtues make it a credible alternative, one that deserves a major role in the debate over our health care system's future.

But what about the politics? No sooner had Gore introduced the plan than conservative critics pounced on him, calling him an extreme leftist and noting that this endorsement represented another Gore "flip-flop," given his opposition to Bill Bradley's health care plan in 2000. "This is ... Gore, the radical," Michael Kelly wrote in his Washington Post column. He then defined single-payer as "the idea [Gore] savaged his 2000 Democratic primary opponent, Bill Bradley, for supporting."

But the criticism about Gore's apparent reversal on Bradley actually shows why endorsing single-payer has a certain political logic to it. Bradley didn't propose a single-payer plan in 2000. On the contrary, the essence of Bradley's plan (which, by the way, this author lauded at the time) was to help uninsured Americans buy into the same system that now serves federal employees. In that system, federal employees choose from among a menu of private insurance plans, then pay premiums based on what the plans offer. Yes, lots of people attacked that plan for expanding the role of government. But, if anything, it actually reduced government's role, by getting rid of Medicaid (under which government insures the poor directly) and having those people buy private insurance instead.

The lesson is that even if you don't actually propose a radical overhaul of the health care system, critics from the right will still have an easy time denouncing it as medical socialism. Indeed, critics from the right have been known to level that charge at even piecemeal health reform measures--from the State Children's Health Insurance Program (S-CHIP), which merely allows states to subsidize coverage for kids living at or near the poverty line, to HMO reform, which doesn't expand coverage at all but simply regulates the way insurance companies make treatment decisions.

So if you're going to propose a large-scale change to the health care system and invite the "socialized medicine" charge anyway, you might be better off endorsing a single-payer system, which at least has the virtue of being easy to explain. Unlike, say, a hybrid public-private system, which involves all sorts of convoluted regulations, which then require all sorts of tortured explanations, the essence of single-payer can be reduced to three simple words: "Medicare for all."

After all, Medicare is essentially a single-payer system, only one that operates exclusively for senior citizens. While its lack of prescription drug coverage remains a major flaw--albeit one that both parties have now sworn to fix--it is also incredibly popular with the people who have it. And why not? If you're on Medicare, you never worry about losing your insurance. If you're on Medicare, you can see most any doctor you want--and get most treatments the doctors recommend. Medicare has a large bureaucracy, but most physicians today will tell you it's a more reliable payer--and a less onerous overseer--than private managed care companies. Indeed, far from true "socialism," Medicare allows doctors and hospitals to remain privately employed.

If there's a big problem with Medicare these days, it's the program's lack of long-term financial viability. But that's a flaw of the entire health care system, and will require resolution with or without major health care reforms. Indeed, single-payer advocates argue that their system makes that resolution easier, by introducing a more efficient system and allowing people to make trade-offs democratically. Enacting single-payer wouldn't necessarily mean expanding Medicare per se (although plenty of Democrats have proposed such schemes before). But a would-be reformer could certainly explain it that way.

This isn't to say single-payer is an easy sell. Quite frankly, it may be impossible to sell sweeping health care reform--any sweeping health reform--right now, given the nation's political mood and power of special interests with a stake in the status quo. But among the proposals out there, single-payer has compelling political advantages. Al Gore may turn out be wrong. But he isn't nuts.

Jonathan Cohn is a senior editor at TNR and a 2002-2003 Kaiser Family Foundation media fellow.

Woolhandler demands nationalized health care in U.S.

By Momoko Hirose: Herald Staff Writer

Dr. Steffie Woolhandler advocated a centralized, government-regulated system of national health insurance, urging members of the academic medical community to lend their support at a lecture Monday night at the BioMed Center.

Woolhandler is a co-founder of Physicians for a National Health Program and is also a member of the advisory board to Mass-CARE, the grassroots initiative for single-payer healthcare in Massachusetts.

Under the current U.S. health care system, numerous for-profit insurance companies operate with few regulations and little regard for patients, Woolhandler said. Regulating and centralizing the system would help cut costs and provide adequate care for most citizens, she added.

“The key conundrum in American health care and American health policy is allegedly the conflict between access and cost,” said Woolhandler. “It’s really elusory and, in fact, a single-payer health care system provides a mechanism through which we can improve access. We can improve quality and simultaneously control costs.”

Woolhandler presented over 20 slides, comparing the United States to other developed nations such as Germany, France and Italy. The United States lagged in life expectancy by two to three years, and its infant mortality rate was comparatively large with 12.2 deaths per 1,000 live births.

Almost every other developed country has 100 percent government-assured insurance, in contrast to the United States, which has only 45 percent, Woolhandler said. All developed nations except for the United States provide universal drug coverage.

“It’s true that we have wonderful hospitals, wonderful nurses, wonderful doctors, wonderful equipment,” Woolhandler said. “But the system as a whole is broken and functions very poorly.”

Across the nation, about 41 million people are uninsured, Woolhandler said. She said that the majority of uninsured citizens are the employed or the children of the employed. One out of every 12 Rhode Islanders is uninsured, according to the lecture pamphlet.

Woolhandler said that the overhead costs of insurance were the issue, pointing out that the CEO of AETNA insurance company makes $12.1 million annually.

“Tax-funded spending in the United States is higher than total spending in any other nation with the exception of Switzerland,” Woolhandler said. “Americans already through our taxes are paying the full cost of a national health insurance program in this country. And then they’re turning around and taking another $1,400 out of their pockets and paying privately.”

Woolhander added that 45.6 percent of all bankruptcies involve a medical reason or a large medical debt.

“It turned out that persons who said that their illness was a major financial problem to their family were much more likely than other patients to want to hasten their death in order to remove the burden from their families,” she said. “Think of what kind of adjective best defines that kind of health care financing system. I think ‘obscene’ is the most polite word that I can come up with.”

Woolhandler also used Canada as an example for the United States, saying that the implementation of a national health program would lower health costs.

“Through a universal system, you get leverage to do cost control that’s simply not available with a pluralistic — what I call ‘fragmented’ — health insurance system,” she said.

Outlining the basic goals of a national health program for the United States, Woolhandler listed the following stipulations: full payment for all needed care; free choice of doctor and hospital; independent, non-profit doctors and hospitals; local planning boards allocating expensive technology; progressive tax for funding; and a public agency to process all bills.

“National health insurance is affordable,” Woolhandler said. “It’s not a technical problem, it’s a political problem.”


This appeared in The Brown Daily Herald on Tuesday, November 5, 2002.

November 22, 2002

Gore favors 'single-payer' health plan

CNN/AP
Former vice president talks about 2000 race

WASHINGTON (AP) -- Noting that 40 million Americans now have no health insurance, Al Gore says he now favors "single-payer" national health coverage, a proposal that would require a massive change in the health insurance system.

With single-payer coverage, money to pay for health care -- such as insurance premiums and tax dollars -- would be collected by a single agency, which would then pay for comprehensive coverage for all citizens.

Gore, the 2000 Democratic presidential nominee and a potential candidate in 2004, offered his views in response to a question at a synagogue in New York during a tour promoting his book "Joined at the Heart," written with his wife, Tipper.

"I was planning to wait and make a major speech on this and I probably should, but I'll just answer your question candidly," Gore told the moderator.

Gore's comments Wednesday night were first reported by ABC News' Internet political report "The Note" and were confirmed by Gore spokesman Jano Cabrera, who said any details would come in a future speech on health care.

"I think we've reached a point where the entire health care system is in impending crisis," Gore said. "I have reluctantly come to the conclusion that we should begin drafting a single-payer national health insurance plan."

Depending on the details, calling for a single-payer plan could be a very dramatic step for Gore. During the 2000 primary campaign, Gore attacked Democratic rival Bill Bradley's central proposal -- universal health care -- calling it too expensive and not expansive enough to help poor people afford full coverage.

Another potential Democratic candidate for president, Vermont Gov. Howard Dean, pushed for health care for all Americans in a speech Thursday night to an education group in Washington. He wants to expand coverage under Medicare and Medicaid to cover people who don't have insurance.

Chastising Democrats for promoting limited goals, Dean said: "On health care, we argue about the patients' bill of rights when we should be pushing for health care for all Americans. On economic development, we talk about tax reform, but then Democrats support tax cuts which do little to help middle-class families afford college tuition and decent health care, when we should be moving away from subsidizing corporate America, and completely revamping American economic development policy to help small businesses grow."

Citing the Republicans' strong election gains, Dean said: "Last week the American people sent the Democratic party a powerful message: It is no longer enough for us as Democrats to blur the distinctions between our party and the Republicans. We need to offer a clear choice, an agenda that is our own. It's time for our party to once again stand for ideas that touch every American."

Gore, meanwhile, spoke about his failed presidential race in an interview with Barbara Walters that will air Friday night. He talked about his decision not to call on former President Clinton to campaign for him in the 2000 campaign. Some advisers felt Clinton's past sex scandals were a liability for Gore, while others in the party wanted Gore to take advantage of Clinton's political skills and popularity with the party's base voters.

"I felt that I had to sell myself," Gore said. Asked whether he would call on Clinton in a future campaign, Gore said, "I might very well ... because I think it would be a different situation."

-=-=-=
Followup Letter to the Editor:
"Gore's health plan idea"

Letter to the Editor, USA TODAY, 11/22/02

While sitting down for a bite of lunch recently, I read a newspaper report about Al Gore that was intriguing ("Gore wants feds to run health care for all," News, Nov. 15).

While certainly not a Gore fan, I'm impressed with his idea to have all Americans covered for health insurance under a single-payer, government-sponsored plan.

As a middle-class, self-employed professional with a wife newly diagnosed with a lifelong disease, I face numerous challenges in the years to come.  The irony here is that shortly after lunch, I opened my mail to discover that my current health-insurance carrier is planning to increase premiums nearly 50% next year, along with doubling the co-pay and quadrupling the prescription co-pay.

You can imagine what happened to my lunch.

Bruce G. Levitta
Phoenix

November 21, 2002

Romanow on "private" solutions

The Canadian Club of Winnipeg
November 20, 2002
Speech: Creating a National Health Care System for Canadians
Roy Romanow, Commissioner
Commission on the Future of Health Care in Canada

Friends, early in my mandate, I challenged those advocating radical
"private" solutions for reforming health care-- user-fees, medical savings
accounts, de-listing services, greater privatisation, a parallel private
system -- to come forward with evidence that these approaches would improve
and strengthen our health care system.

The evidence has not been forthcoming.

I have also carefully explored the experiences of other jurisdictions with
co-payment models and with public-private partnerships, and have found these
lacking.

There is no evidence these solutions will deliver better or cheaper care, or
improve access (except, perhaps, for those who can afford to pay for care
out of their own pockets). More to the point, the principles on which these
solutions rest cannot be reconciled with the values at the heart of medicare
or with the tenets of the Canada Health Act that Canadians overwhelmingly
support.

It would be irresponsible of me to jeopardize what has been, and can remain,
a world-class health care system and a proud national symbol, by accepting
anecdote as fact, or on the dubious basis of "making a leap of faith".

Tossing overboard the principles and values that govern our health care
system would be betraying a public trust. Canadians will not accept this,
and without their consent, these so-called "new" solutions are doomed to
fail. Canadians want their health care system renovated; they don't want it
demolished.

Some have described it as a perversion of Canadian values that they cannot
use their money to purchase faster treatment from a private provider for
their loved ones. I believe it is a far greater perversion of Canadian
values to accept a system where money rather than need, determines who gets
access to care.

My final report will address this issue in very direct terms, and in a way
that is consistent with what Canadians want and expect from their health
care system.

http://www.healthcarecommission.ca/default.asp?DN=cn=1380,cn=17,cn=3,cn=2,ou=Stories,ou=Suite247,o=HCC

Study urges single-payer health system

The Providence Journal
http://www.projo.com/health/content/projo_20021121_ccjstudy.5bf90.html

Administrative costs alone could be cut in half from their current $1.47 billion by establishing one source of financing, says the report by the Health Reform Program at the Boston University School of Public Health.

11/21/2002

BY FELICE J. FREYER
Journal Medical Writer

PROVIDENCE -- Rhode Island's expensive health-care system has enough money to provide for everyone's needs -- from the elderly who cannot afford medications to the low-paid worker who can't afford dental care -- according to a study released yesterday.

But redistributing the system's $7.2 billion to care for everyone will require a radical overhaul of financing, eliminating insurance companies and having all money flow to and from a central authority.

Such a "single payer" system, resembling those used in most Western countries, has been talked about for decades as a solution to U.S. health-care ills, but the political will for such vast changes in a long-entrenched system has never been mustered. This month, voters in Oregon overwhelmingly rejected a proposal to establish a taxpayer-financed single-payer system in that state.

The $10,000 study, by the Health Reform Program at the Boston University School of Public Health, was financed with a grant from the General Assembly and commissioned by the Coalition for Consumer Justice.

By coincidence, the study comes two days after Blue Cross & Blue Shield of Rhode Island released a $3-million report showing that Rhode Islanders are heavy users of health care and that the demand for nursing homes, hospitals and nurses will exceed supply by 2006.

And it comes a day after the National Academy of Sciences declared that the U.S. health-care system is in crisis and urged the Bush administration to allow a handful of states to test solutions, including universal coverage.

The Boston University study says that health-care spending in Rhode Island is the fourth highest in the nation, 21.5 percent above the U.S. average. Each year, more than $7,000 per person is spent on health care in this state.

"Isn't that a staggering sum?" said the report's chief author, Alan Sager, professor of health services at the Boston University School of Public Health. "It's four times what we spend on defense."

Despite all that spending, many people can't get the care they need, the report asserts, including insured people who can't afford dental care and elderly people who can't find adequate home care.

Meanwhile, as much as 20 percent of the health-care dollar is spent on clerical tasks. Sager talked of a hospital administrator in Massachusetts who said he had to fire a nurse to hire two clerks to chase down overdue reimbursements from the various insurers and government agencies.

"We have three choices in health care," Sager said. "We can suffer and die for lack of needed care. Or we can pay more year after year if we can somehow find the money. Or we can change the way we do things."

The study estimates that it would cost an additional $1 billion to cover all the people who have no insurance or whose insurance doesn't pay for all their needed care. But those additional costs can be more than offset by savings in a newly structured system.

Administrative costs could be cut in half from their current $1.47 billion by establishing one source of financing. That source could be the government, which would raise the money through taxes. Or it could be a separate central authority or trust fund. Everyone who now pays for health care -- employers, individuals, the government -- would funnel that money to this single entity, which would disburse payments to providers.

If there was one source of financing and all people were covered, providers would no longer need to hire staff to determine which patients are eligible for which services and to seek reimbursements from an array of private and governmental payers.

Additionally, the report says, cost savings could be realized if the state negotiated discounts on drugs for all its citizens and if doctors were charged with managing care responsibly. Sager proposes that doctors, as a group, be guaranteed 20 percent of health-care costs, with the understanding that they will direct the appropriate use of the remaining 80 percent, within a prescribed budget.

"These are not numbers we made up," Sager said of the projected administrative savings. "This is the experience of countries where simplified financing exists and where doctors aren't on the phone negotiating with managed care. If you speak with any doctor who's not on salary, who runs a practice -- the fury; you watch their blood pressure rise when they talk about this."

Dr. Jeremiah Schuur, a resident physician in emergency medicine, said that doctors would be amenable to "health-care reform that puts the patient first."

"The current system is swamping doctors in administrative hassle, preventing them from performing their duty of providing care to the sick," Schuur said at a news conference held to release the report.

Christine C. Ferguson, the former state director of human services who attended the news conference as a representative of Governor-elect Donald Carcieri, said that the study's findings about the current situation were correct, but that its proposed solution is unlikely to win a following.

"Are we in the middle of a serious problem? Yes, that is true," she said. But adopting a single-payer plan? "Not in the foreseeable future," Ferguson predicted. "People don't inherently trust the government to do that."

But Marti Rosenberg, of the Health Care Organizing Project, said that as costs keep rising and alternatives keep failing, people will be ready for fundamental change.

November 20, 2002

Patients more likely to die in private for-profit dialysis centers, major study finds

CONTACT:

Janet Maher (coordinator) cell: 416-770-1311
Dr. P.J. Devereaux pager number 905 521 5030 pager 2530
Dr. P.J. Devereaux office: 905-525-9140 ext. 22160
McMASTER UNIVERSITY, Faculty of Health Sciences, Clinical Epidemiology & Biostatistics

TORONTO, November 19, 2002 _ If Canada switched to for-profit dialysis centers, approximately 150 additional dialysis patients would die each year, according to a major study to be published in the Journal of the American Medical Association (JAMA) tomorrow.

The research builds on finding released by the same research group earlier this year that revealed statistically significant higher death rates in private for-profit hospitals.

“In both hospital and outpatient settings the profit motive drives up death rates,” said Dr. P.J. Devereaux, lead author of the study.

The systematic review and meta-analysis compared death rates in over 500,000 adult patients receiving care in either for-profit or not-for-profit American dialysis facilities. The study found an 8% greater risk of dying in a for-profit facility. The results were extremely consistent across all the studies surveyed. They showed that if American patients received care in private not-for-profit dialysis facilities instead of for-profit facilities, approximately 2,500 lives would be saved each year.

“The reason more patients are dying in for-profit facilities is that administrators must spend 10 to 15 per cent of all expenses satisfying shareholders and paying taxes.” said Dr. Devereaux. “For-profit providers cut corners to ensure shareholders achieve their expected returns on investment.”

The results of this review are directly relevant to over 12,000 Canadians receiving dialysis. First, the studies included patients receiving publicly financed care in private not-for-profit and private for-profit dialysis facilities, a situation identical to what Canadian policy-makers have been considering. Second, the results are consistent over time, despite changes in American health care. Third, if Canada moved to for-profit dialysis facilities, the same large American dialysis chains included in the review would be purchasing Canadian dialysis facilities.

The results come at a time when Senator Kirby is advocating a permissive stance with regards to private for-profit health care facilities and a number of provinces have allowed for-profit MRI facilities and surgical facilities. The study results suggest that the profit motive may be compromising care in all out-patient for-profit clinics and hospital.

“Our results should raise serious concerns about moves to private for-profit care, whether in hospitals, day surgeries, or other outpatient facilities. It is time to base health care policy on evidence, not ideology.”

# # #

Physicians for a National Health Program has been advocating for a single-payer national health program since 1987, with more than 12,000 members across the United States.
PNHP is headquartered in Chicago.

www.pnhp.org

Medical Student Education Damaged by Managed Care Says Survey of 500 Medical Professors

(Click to download as an Adobe PDF.)

CONTACT:

Amy Brodkey, MD
215-831-7949
brodkeya@fast.net

Fredrick McCurdy MD. PhD, MBA
402-559-2263
famccurd@unmc.edu

CHICAGO, ILLINOIS, November 14, 2002 _ A study to be published in the journal Academic Medicine on Friday, November 15, 2002 details the findings of a large survey of key medical student educators on the destructive impact of managed care on the education of future physicians. Faculty members from the disciplines of gynecology-obstetrics, internal medicine, neurology, pediatrics, psychiatry, and surgery perceive that the erosion of faculty support for teaching may have placed the foundation of the nation’s future health care in jeopardy.

The study was conducted by the Alliance for Clinical Education (ACE), a group composed of leaders of seven education organizations representing faculty who direct the core clinical clerkships in medical schools across the country. The clerkships are medical students’ first and primary exposure to clinical medicine and the foundation of medical education. By virtue of their role in developing and overseeing clerkships, and their close contact with students and the local educational environment, clerkship directors are in a unique position to observe the effects of managed care on clinical education in medical schools.

The 500 clerkship directors from across the nation who responded to the anonymous survey indicated particular concern about difficulty recruiting faculty to teach and to participate in other educational activities, as well as a decline in the quality of clerkship training sites. The survey also documented widespread diminished enthusiasm for teaching. The greatest negative impact on education was perceived in locations with the highest amount of managed care. Over 88% of the respondents stated that managed care has made health care more like a commodity, and 72% stated it had reduced professionalism in medicine.

Managed care has adversely affected academic medical centers financially, reducing the time and resources available for education and research. Tuition pays for only a fraction of the cost of medical students’ education. In addition, managed care companies frequently exclude students from patient care and the opportunity to learn physical examination and diagnostic skills. Many educators expressed concern over a possible decline in professionalism due to training in an environment of increasingly commercial values and reduced quality of care.

“The findings are impressive in part because of their strength and uniformity _ every specialty that was surveyed reported the same problems,” said Amy C. Brodkey, MD, the study’s lead investigator. “Many people think that the spread of for-profit managed care has made it more difficult to get good medical care, but most people don’t realize the impact it has had on the ability of academic medical centers to train future doctors. Our study respondents indicated that it is the current economic pressures associated with for-profit managed care, rather than the management of care itself, that is responsible for the damage. Given the further penetration of managed care into academic medical centers since the time of this study, I would predict that this situation will only get worse.”
# # #

Alliance for Clinical Education (ACE) was formed in 1992 to foster collaboration across medical specialties to promote excellence in the clinical education of medical students. Its mission is to foster collaboration across specialties to promote excellence in clinical education of medical students. Its member organizations include: Association of Directors of Medical Student Education in Psychiatry; Association of Professors of Gynecology and Obstetrics; Association for Surgical Education; Clerkship Directors in Internal Medicine; Consortium of Neurology Clerkship Directors; Council on Medical Student Education in Pediatrics; and Society of Teachers of Family Medicine.

Physicians for a National Health Program has been advocating for health care reform for 15 years with more than 10,000 members across the United States.
PNHP is headquartered in Chicago.
www.pnhp.org

Gore's gutsy gambit on health care for all American citizens

Published November 20, 2002

WASHINGTON -- Like a dateless and desperate guy who is calling up a girlfriend about two years late, Al Gore finally is expressing serious interest in single-payer health care. Better late than never. But before we can examine Gore's plan, he has to come up with one.

For the moment, though, it is enough that he has even put the issue on the table. Health care, like the economy and the environment, is one of the big issues onwhich polls show most voters look to Democrats for the best answers.

Yet Democrats oddly avoided these issues and just about every other galvanizing theme in their recently disastrous midterm election campaigns.

So while many Democratic activists consider a second Gore presidential campaign to be about as exciting as yesterday's pizza, a larger percentage of rank-and-file Democrats think the former vice president deserves a second chance, especially if he can arouse Democratic impatience with the Bush administration.

And besides, with less than a year to go before 2004 campaigning starts getting serious, no other likely Democratic contender comes close to Gore in the polls.
So you can't blame the guy for seizing an opportunity when he sees it.

Basically, single-payer coverage would collect insurance premiums or tax dollars in a single agency, which would pay for comprehensive coverage for all citizens. Canadians have a form of it and it constantly rankles conservatives and the health-insurance industry. They talk a lot about Canadians who come here for health care. They talk very little about Americans who go to Canada for cheaper drugs. Canada's program has its problems, and while there have been many moves to improve it and even privatize parts of it, there have been few moves to scrap it.

Centrist Democrats, of which Gore has been a leader in the past, along with the Clintons, have been scared of it. Sounds too much like socialism, they say. But so did Social Security, Medicare and Medicaid, which have been some of the government's most popular programs during much of the past half-century or so.
So, now, as Gore ponders whether to run again, he has broken "reluctantly" with his former centrist position on health care. In front of several hundred people in a Manhattan synagogue on Nov. 14, Gore said that he has decided that single-payer is the best solution to the nation's health-care crisis.

More details to come, Gore spokesmen said, along with Gore's announcement of whether he is running for president. In the meantime, he is behaving like a man who plans to run, including doing a stint as host of "Saturday Night Live," a leading platform for reaching that coveted late-night youth vote.

Health care is no laughing matter for 40 million Americans who don't have coverage. Nor is it a laugh riot for those who were frightened away from government intervention by the "Harry and Louise" TV ads in the early 1990s that warned of rationed health care.

Instead, growing numbers of covered Americans are receiving a different form of rationed health care in the name of "managed" health care.

So, if Gore, a former newspaper reporter, is as smart as he needs to be to win this time, he will remember the four initials countless editors have passed on to young reporters: "K.I.S.S. --Keep It Simple, Stupid."

First, he should stop using the clunky term "single payer" to describe his plan. Nobody except for us news junkies and policy wonks knows what that means.

Instead, he should describe it as a simple expansion of Medicare to cover everybody. Medicare is a program most Americans understand comfortably and want to keep. Building on that popularity and comfort level, many experts over the years have advocated expanding Medicare to cover everyone, regardless of age.

Of course, funding and administering a health plan to cover all Americans will be anything but a simple matter. But to start a national dialogue, grand ideas must be expressed in simple terms.

At least Gore is giving voters something serious to think about. I hope he keeps it up. Americans deserve to have a choice, not an echo. That was a slogan of conservative Republicans in the 1960s. They made a comeback. So can the Democrats--if they offer Americans something worthwhile to choose.

Rhode Island Can Afford Health Care for All

EXECUTIVE SUMMARY
(the full report can be found at http://www.healthreformprogram.org/)

This report finds that complete, comprehensive health care for all Rhode Islanders is already affordable.

Complete care means coverage for people who lack insurance coverage today.

Comprehensive care means thorough insurance for prescription drugs, dental care, and other services that are omitted from many insurance policies today.

Why is complete and comprehensive health care for all Rhode Islanders affordable today? For two main reasons:

The money is already available. Current health care spending in Rhode Island is fourth-highest in the nation, 21.5 percent above the U.S. average. And U.S. average spending per person is itself more double the western European average. Those nations cover all citizens and enjoy better health outcomes than do Americans.

Cutting administrative waste, cutting drug prices, acting to prevent some medical problems, and other efficiencies save enough money to finance full insurance coverage for people who are now uninsured or inadequately insured.

This report finds that the three main alternatives to health care for all are themselves unaffordable. These alternatives are more money for business as usual (without improving coverage), efforts to cover more people with band-aid additions, and efforts to cut health costs by cutting insurance coverage or asking families to pay more.

This report estimates the costs of universal health care in Rhode Island and contrasts those costs with a continuation of the current system. It shows that universal health care for the people of Rhode Island is affordable. It offers alarming new evidence that ever-higher spending for business-as-usual in Rhode Island health care is not sustainable for people who pay for it or for people who use it, and that business-as-usual is cheating the state’s people by wasting huge sums on the private sector’s payment bureaucracy at the expense of the care that all Rhode Islanders need.

Consolidated financing is essential to cutting administrative costs. (And cutting those administrative costs is essential to financing comprehensive health care for all.) Financing can be consolidated in one of two ways.

The first is the simple single payer approach. Here, private insurance simply ends, out-of-pocket payments are virtually eliminated, and taxes are raised to replace the lost revenue. This means big tax increases.

The second is to pool all revenues in one reservoir, which allows the same administrative savings as single payer but requires much smaller tax increases. This has the advantage of capturing dollars now paid through private health insurance by employers and employees. Today’s private insurance payments are frozen in today’s dollars. Checks are written to a new health care trust fund, not to private insurers. Increased health costs in future years are covered by public spending. This means much smaller tax increases.

Consolidated financing alone is essential to financing comprehensive health care for all Rhode Islanders today. Looking ahead, though, it is not enough—by itself—to ensure affordable medical security for years ahead.

That is because health care costs continue to increase as the population ages and as costly new medical advances are made—things like expensive new drugs, surgical treatments, and transplants.

But what good are these medical advances if Rhode Islanders can’t afford them? Rhode Islanders deserve medical security. This first requires deciding what “medical security” really means. It then requires making sure that we shape health care—delivery and financing—to reach this goal. If we don’t deliberately plan to succeed, we are surely planning to fail. And that would be a tragedy.

Ultimately, no state or nation can ever spend enough to win immortality for its citizens. So immortality is not the goal. Rather, the goal should be something like this:

All Rhode Islanders should be able to get the health care they need—high-quality health care that works—without having to worry about whether they can afford it.

Health care spending in the United States is vast. In the year 2000, health spending in the U.S.A. was more than four times as great as was spending on national defense. And spending in Rhode Island was 21.5 percent above the U.S. average, as noted earlier.

For the long haul, reaching the goal of affordable high-quality health care for all Rhode Islanders requires that we spend our vast but still finite health care dollars as carefully as possible. This requires going far beyond the simple but vital step of consolidating financing.

It requires that doctors, hospitals, and other caregivers be paid in financially neutral ways—in ways that encourage, liberate, and require them to spend money as carefully as possible. This means, certainly, that all needed caregivers be paid enough money to allow them to remain open in Rhode Island—as long as they operate efficiently.

It requires, further, that doctors—who make the key decisions about how the great bulk of health care dollars are spent—are particularly empowered to spend our money carefully. This should begin by recognizing that doctors traditionally get about one-fifth of the health care dollar. They should be assured this money, to be divided up among them in reasonable proportion to competence, kindness, effort, and other factors.

But doctors also should be encouraged, liberated, and required to marshal the bulk of the remaining 80 percent of the money (excepting only dollars needed by dentists, public health agencies, researchers, and other independent actors) to provide the care that all Rhode Islanders need. Doctors would have to spend all of that money on their patients, and could not spend more. They could not personally benefit by economizing on care. This approach encourages patients and payers to trust doctors’ decisions.

This has been called “professionalism within a budget.” It is one sensible way to balance the books in health care. If any patient is denied a service because it would be of small benefit to them, the aim would not be to enrich a physician or a for-profit HMO. Rather, the only reason for denying a service would be to make that service available to another patient who needed it more.

This is nothing more than spending money carefully—of getting as much health care as possible to the people who need it. This is nothing more than recognizing that all Rhode Islanders need health care but that dollars are always going to be limited. This is nothing more than a way to build trust in Rhode Island health care that offers medical security—durably affordable medical security—to all residents.

We offer this report in the hope that it will help the public and policy-makers to grapple with the complexity of our health care system, and to identify the benefits of universal access to comprehensive care with simplified administration.

-=-=-=

The American Medical Student Association (AMSA) is pleased to cite a report to the Rhode Island General Assembly proving that a single-payer universal health care system would save the state $270 million in health care costs. AMSA, the nation’s largest independent organization of physicians-in-training, believes that equal access to comprehensive health care is a basic human right. AMSA has supported single-payer national health insurance as a solution to the nation’s crumbling health care system since 1989. The AMSA Foundation’s 2002 American Health Care System Survey found that an overwhelming majority of first and fourth year medicals students believe that health care is a right.

“Healthcare is an issue that touches every American, regardless of age, race, or gender. Quality health care for all people through a single-payer system would help end the dramatic disparities that continue as long as we consider health care a privilege for those who can afford it,” says AMSA National President Eric J. Hodgson, M.D.

The results of the Rhode Island study conducted by Alan Sager, Ph.D., of Boston University School of Public Health’s Health Reform Program found that the state could provide, with a savings of 3.6%, complete care to its 75,000 uninsured residents and comprehensive care for residents currently with insurance but lacking coverage for prescription drugs, dental care, and other services.

The Rhode Island study is the latest to confirm that single-payer reform is not only a feasible solution, but also one that is more favorable than other, incremental approaches. The study comes a week after former Vice President Al Gore announced that he favors single-payer national health insurance as a solution to the health care crisis. AMSA supports Mr. Gore’s statement as a way to re-ignite the debate on needed health reform.

On November 18, four former Secretaries of Health & Human Services and former Surgeon General David Satcher described the nation’s health system as “too costly, inefficient, [and] unfair,” and in need of an “overhaul.” (Toner, Atlanta Journal-Constitution, 11/19) The Rhode Island study shows that such an overhaul is possible with a single-payer system, providing health insurance to the uninsured and to those with insufficient coverage. The study coincides with a report from the Institute of Medicine calling for 3-5 states to begin demonstration projects providing universal health care.

Earlier this year, the AMSA Foundation conducted the first-ever study of medical student knowledge and attitudes of issues surrounding universal health care and health disparities. The study found that about 90% of first and fourth year medical students agree that every American is entitled to adequate medical care regardless of ability to pay. A majority of students believe that some form of a universal heath care system would provide the best health care to the most people for the least amount of money.

Institute of Medicine loses credibility

The National Academies
Institute of Medicine
Fostering Rapid Advances in Health Care: Learning from System Demonstrations

State Health Insurance: Making Affordable Coverage Available to All
Americans

Demonstration projects in this category are intended to result in the availability of affordable insurance coverage to all Americans in a state.

Coverage expansions - Demonstration projects might expand insurance coverage
through either tax credits to be applied to an insurance plan, expanded eligibility for public insurance programs, or a combination of the two. Under the tax credit approach, the federal government would provide support to a demonstration site to be used for premium assistance, and the state would provide state tax credits to uninsured individuals. The state tax credit would likely be based on a sliding scale tied to income, and would need to be adequate to enable the individual to purchase a good insurance package. Under the approach of expanded eligibility for public insurance programs, the federal government would provide federal matching support for a significantly expanded eligibility program under a state Medicaid or SCHIP program.

http://books.nap.edu/books/0309087074/html/R1.html

Comment: Health and Human Services Secretary Tommy Thompson requested the Institute of Medicine to prepare a report on demonstration projects that would find ways to fix our health care delivery system, a system that is unable to meet current and future needs. It is probably no coincidence that the demonstration projects, including expansion of community health centers, and introduction of tax credits to purchase private health plans, reflect the policies already publicly supported by the Bush administration.

Recent reports have demonstrated the deficiencies of relying on community health centers, especially in their inability to provide access to adequate
specialized services, or even access to prescription drugs. And tax credits
primarily support the individual insurance market, noted for its higher costs, fewer benefits, excessive cost sharing, and especially for its underwriting practices that exclude those with the greatest health care needs. If a state were to establish a pilot project, certainly it should have the option of establishing a single insurance program that provides comprehensive services for everyone, made possible by eliminating the administrative excesses of the private insurance market.

By issuing a report that is designed to support the credibility of the Bush administration's highly inadequate and grossly flawed health policies, The Institute of Medicine has severely tarnished its own credibility.

Salvadoran Social Movement Declares Historic Victory Against Privatization: ASSEMBLY RATIFIES DECREE

New Law Will Outlaw Privatization, Concession of Health Care
Strike continues as unions negotiate rehiring of illegally fired workers
Friday, November 15, 2002

The applause of thousands of doctors, nurses, healthcare workers and their supporters hushed to a respectful silence as Ricardo Monge, Secretary-General of the STISSS healthcare workers' union, took over the bullhorn and addressed the crowd. "I want to thank each and every one of you for this historic victory," he proclaimed, holding back tears in his eyes. "We have proven today the truth of our most important rallying cry: the people united will never be defeated. Through struggle, the Salvadoran people have stopped the privatization of health care, and struck a decisive blow against the neoliberal model which strips us of our humanity." A deafening cheer rose up from the crowd that could hold its silence no longer. One after another, the leaders of the two-month health care strike stood up to voice the same sentiment: the people of El Salvador had won an historic victory in their struggle against privatization, one that would be remembered as the turning point in the war between the neoliberal model of human poverty and environmental destruction, and the alternative model of human equality and sustainable development.

Yesterday afternoon, the opposition parties in the Salvadoran Legislative Assembly united behind an FMLN decree outlawing the privatization of health care. They left ARENA standing alone, and voted unanimously to overturn Flores's changes to the "State Guarantee of Health and Social Security," effectively ratifying the original document as written by the STISSS and SIMETRISSS unions. Now, President Francisco Flores is constitutionally obligated to swallow his pride and sign the bill into law. The new law establishes as dominant legal principle the state's obligation to provide accessible quality health care to every Salvadoran near their home, regardless of ability to pay. It prohibits the privatization, concession, subcontract, licitation, or transfer of any health care or support service to private companies, and calls for all current concessions to be cancelled by the end of the year. According to Monge, "the "State Guarantee" provides the foundation on which we can begin a real reform of the healthcare system in El Salvador, benefiting the interests not of the multinational corporations but of the Salvadoran people, and always guaranteeing that health is a human right and will not be privatized or concessioned."

As a jubilant crowd left the Legislative Assembly and flooded the streets of San Salvador in a spontaneous celebration, strike leaders recalled that the struggle continues. Flores could take advantage of a number of procedural tricks to delay signing the decree, and unions will continue the strike until it is published in the Official Diary. Only then can real negotiations begin on the rehiring of illegally fired workers, the payment of withheld salaries, and a guarantee of no reprisals against striking workers. In order to ensure this third point, explained Monge, "[ISSS director] Mauricio Ramos will probably have to be removed." Also, while the new law only covers health care, Flores seeks to privatize many public services, and Monge called for the hundreds of thousands of Salvadorans who participated in the three "White Marches" to join in solidarity with the STSEL union's strike against the privatization of electricity. Finally, Monge warned the people of El Salvador of a new danger that could undo all of the work that they had done: CAFTA, a free trade agreement between the US and Central America that would supercede the new law and mandate the sell-off of public services like health care to multinational corporations.

That's the news this morning in El Salvador.

November 19, 2002

Data Update, Fall 2002

Download the PNHP Data Update here (MS Word Doc) or here (Adobe PDF).

November 15, 2002

Carlos Trotta's Argentina Speech

From PNHP Annual Fall Meeting, November 11, 2002, Philadelphia, PA
Speech of Dr. Carlos Trotta, MD

Argentina has a population of 37 million people living in a geographic area ten times larger than Japan’s. Argentina posted a trade surplus of 12 billion dollars in the first nine months of 2002.

Oil exports produces 6 billion dollars annually, but the rent thus generated is almost totally captured by the banks and financial institutions, by foreign oil companies, and by private firms. The money does not go toward social causes.

Our country has closely followed the demands of the World Bank and of the International Monetary Fund who have called us…“ their best pupil ” The IMF has forced privatization. In Argentina the national oil company, the national air lines, the water, the railways, the river and sea fleets, the telephones and the retirement contributions were all sold and became private enterprises. The result has almost bankrupted my country and has had a profound impact on our social, economical, educational and health areas.

Even after following the IMF advice, our present gross domestic product of 140 billion dollars is 23% lower than that of 1975 and has a foreign debt that consumes 23% of next year’s budget only for paying interests, not capital.

Our country produces enough food for 300 million inhabitants The agricultural sector exports 9 billion dollars coming from more than 23 million hectares of soybean, corn, wheat and sunflower. It annually exports 300 million dollars of beef.

Yet 53 % of our inhabitants live under the poverty line and 25% are indigent that is to say that in their homes the income is not enough to cover the minimum basic protein and nutrition needs.
Seven out of ten children in Argentina are poor.

These figures are greatly unfair for a country that produces and exports foods. They clearly show the consequences of a failed economic model.

We consider it a planned genocide because nothing, except a political decision, justifies that children’s mortality be 16 per 1000 (in Cuba it is 6 per thousand). In the province of Corrientes, it goes up to 30 per thousand.

The Argentine Pediatrics Association considers that 60% of this problem is due to avoidable reasons. More than 13 % of infants born in public institutions weigh less than 2.5 kilograms as compared to Sweden where the rate is less than 3% of newborns.

Cases of measles climbed nationally from 0 to 9,469 cases between 1996 and 1998.

Pathologies like dengue, malaria, leishmaniasis, trichinosis, Hantaan virus, typhus and tuberculosis have re-emerged or increased (the latter having increased 25% between 1995 and 2000 in the city of Buenos Aires).

It is getting more and more difficult to follow a proper treatment in chronic diseases due to the increasing cost of drugs

Life expectancy in Buenos Aires and outskirts, where 40% of the Argentine population lives is going backwards during the last ten years and has dropped 3%in males and 7%in females.

There has been an increase in family and social violence (the number of homicides has doubled during the last decade in Buenos Aires Province).
The suicide rate in teenagers has grown from 30 per 10,000 in 1991 to 64 per 10,000 in the year 2000.

It has been calculated that, daily, 40,000 people go through the garbage bins searching for food or for elements to recycle in the city of Buenos Aires.
The richer 10% of the population in Buenos Aires city earns 26 times more than the poorest 10%. In the 1970’s this difference, in Argentina, was only ten times greater.

Within this context and in opposition to what would be reasonable to expect from the government. It has not strengthened the social network; it has deserted its constitutional role of health warranter and its response is to lower the health budget (from 8% in 1996, to 6 % in the next year). Total health expenditures fell from 650 dollars per person per year in 1997 to 184 dollars per person per year in 2002 yielding to the pressure of multilateral lending agencies that demand contraction of public expenditures, control of monetary expansion and reform of the state itself which in the health sector means the gradual adoption of managed care tactics (Iriart, Merhy and Waitzkin).

These demands find a fragmented health sector, with strong inner struggles about distribution. This makes it specially vulnerable to these pressures.

We have neither a national health service nor a health insurance system

In Argentina the health sector is composed of three main subsectors-public, private and social security- that have been sequentially reformed wanting to impose an administrative financial logic, that is to say, new actors (i.e. insurance companies and other intermediaries), new forms of contracting (shift from a fee-for-system basis to a capitation-based system that concentrates the risk in the provider organization), and greater role of the private subsector.

The public subsector is financed by the government and provides services through the public network (public hospitals and community health centers) irrationally fragmented in municipal, provincial and national jurisdictions. After a prolonged process, many hospitals were decentralized in 1991 to force them into a self financial management.

The social security plans consist of a system of compulsory social insurance with financing coming from employer and employee. The government is expediting deregulation of the sector to foster competition between the social security plans and private (prepaid) health insurance companies. It only guarantees a basic benefit package.

The private subsector has two main sub-groups a) professionals who provide independent care services to members of the security plans and
b) health care facilities contracted by social security.
The abrupt and generalized empoverishment that Argentina is suffering as a consequence of these policies has had a negative repercussion on each of the previously named subsectors. The crisis generated by the policies of financial capitalism has spared nobody.

Nearly five million people have lost their social security as a consequence of the high rate of unemployment (already reaching 22 %) and to the fact that 40% of the people who receive a salary do not contribute to the system.

Private medicine has lost more than 12% of the subscribers or members since the beginning of the year 2000 and 20% have switched to less expensive plans.

More than 50% of the population goes to public state hospitals which are overcrowded. The State, trying to fulfill the obligation of managing them with the scanty budget imposed by the already mentioned economical policies has left the hospitals lacking medicines and the most simple things needed for the care of patients, even those as elementary as gloves and sponges.

There are long waiting lists of patients to be treated or operated on. Some of them do not even get to the hospital. They are admitted through the emergency room very late in the evolution of their problems with a lousy physical condition.

Doctors have already denounced our shortages before our judges and courts and even at the international level and some of our patients have died while waiting.

Obviously the physician a worker whose only asset is himself, suffers the consequences. He feels overwhelmed when facing the social and health problems brought to him by his patients. He must divide his time working exhaustingly in different subsectors to increase his income - in the city of La Plata, Capital of Buenos Aires Province, the most densely populated of the country, the average income collected from social security (which represents 80 % of its income) is 170 dollars. It is economically difficult (or should we say impossible) to keep updated going to meetings or buying didactic materials.

Generally physicians feels alienated- others decide how to treat their patients, and they do it with a strict criterion of profit. Physicians are frustrated because of our inability to provide proper care for our patients.

As I said before the government responses are not sanitary but only financial: reduction of costs, fiscal regulation, and a more or less hidden privatization.

I want to clarify what we understand by privatization:.
Even though , generally speaking, the word “privatization” refers to the selling or concession of some state enterprises to the private sector, we consider it a much broader phenomenon. We understand the word as meaning the process by means of which the logic of profit gets into the public field affecting its essence of property, provision or financing.

During the meeting that took place in Islas Baleares, Spain, in May this year debating public health, a final declaration was issued and one of its points says that the disassembling and privatization of public health systems are being applied by means of strategies disguised as apparently neutral proposals , like those of separating financing from provision and care making the health centers become enterprises, diversifying insurance or increasing the participation of the private sector . T heir aim is to divide and make private the most profitable areas of public health systems. This strategy known as public/private mix has shown an increase in inequality in every country where it has been applied, but mostly in Latin American countries. Our National States, very weakened by the neoliberal model are not able to minimally regulate the public/ private mix.

We believe that the public hospital which is deeply rooted in Argentina is the pet target of these policies and it is being submitted to a slow, silent and tortuous process of transformation through the lack of financing, the emptying, the outsourcing of services, the loss of prestige, and the flexibility of the contracts for health workers.
We center our action here, in the public hospital, but we realize that our resistance can only grow if we join with the other resistance demonstrations of our citizens.
In Argentina we have more than enough experience with this kind of neoliberal privatizing policies and their consequences in the social and health areas. That’s why resistance in Argentina is greater and a mobilized community expresses its rejection in various and creative manners.

We believe that the multiplicity of insurance plans which comes next in the agenda is a rather crude instrument for matching health care services with individual health care needs.

The group I belong to -CICOP- represents more than 60 public hospitals and community health centers and it has 8,000 professionals associated in Buenos Aires Province.
We understand that what is happening to health is part of a much greater package: the social area; that what is happening to us, health workers, is not disconnected from what is happening to other sectors of our community and that is why our fight must not be limited to the hospital or to the professionals.

We need the community in our fight to keep health as a right and they need us.
Every Monday, our professional union, has meetings with neighbors of our city. We make rounds inside the hospital showing them how patients are living, the precarious condition the hospital is in, and the working condition of the rest of the personnel and staff.

And they mobilize with us on the streets, and we claim for our rights in front of the Town Hall, in public hearings and we also caught the Health Secretary of State when he was trying to escape through a lateral door after visiting the hospital.
With them we occupied the hospital pharmacy claiming for the medicines that were not given to the patients because of absurd bureaucratic reasons.
Also with them we made a human chain of arms and we surrounded the hospital building in a symbolic embrace.

We get together with people from the university- for us public education and public health go hand in hand- hoping that working together our city can have its own plant to make cheaper medicines for all the population that needs them.

And we know that if our people, you and I, are not pressing them altogether, the resistance of the pharmaceutical companies will stop the project.

Every Saturday afternoon we also have meetings with assemblies of different neighborhoods to work in a health plan which includes new ways of participation, including community health educators and health councils of neighbors.

Every Saturday at 9 a.m.. we have a space on the radio, and we try to have the health subject permanently on the air and on the city agenda wanting to get a public discussion of our next budget.

We made stickers to place in every car that enters the hospital. We give away fliers. We have put signs in strategic places of the city and in football stadiums opposing privatization and support public health.

We have a web site on internet (www. elhospitalregional.com.ar)

We have taken our hospital case to our courts and we had a favourable verdict.

We have asked the students of architecture to collaborate in improving some areas of the hospital and the art students of Escuela de Artes Visuales (Art School) to paint allegoric murals on the walls of the central hall and of the emergency room.

Finally and not wanting to be boring, we got together with all the organizations in a Social Forum for Health that has just taken place at the School of Medicine in Buenos Aires with the motto “Another health is possible”

We know it is a long road but we know that we will finally get there, because in defending health we are defending life.

CICOP is trying to rebuild our health system supported by some fundamental issues:

Integrated health care equal and free for every body. Being a constitutional right for all the inhabitants it should be respected.

The State must create an instrument, a SINGLE PUBLIC PLAN whose mission will be to guarantee this right.

This SINGLE PUBLIC PLAN will converge all the available public resources, the public budgets and the resources of Social Security to guard them from the voracity of the financial investors putting it under the social control

WE KNOW THAT HEALTH IS A RIGHT OF OURS. WE ARE THE PEOPLE, AND WE HOPE TO JOIN WITH PNHP IN THAT DIRECTION.

November 14, 2002

Early Lessons from Oregon's 2002 Measure 23 Campaign

Early Lessons from Oregon's 2002 Measure 23 Campaign

by Mark Lindgren, Chair, Health Care for All-Oregon

Our experience in Oregon provides both a positive example of how much an under-funded, volunteer-based health care campaign can achieve, as well as the limitations of this approach. Volunteers collected most of the 98,000 signatures needed to place the initiative on the ballot (we did pay for signatures at the end of the signature-gathering phase, to ensure its success). After an October 11 poll showed a virtually dead heat, the insurance industry tripled its spending to at least $1.2 million, some from out of state; our campaign, by contrast, raised and spent about $90,000, $55,000 to qualify the measure for the ballot (about half of that to pay signature gatherers), and $35,000 for the subsequent campaign. The final yes vote was only 21%, just over a quarter of a million votes.

Measure 23. We proposed a single-payer model, firmly believing that this is the only way to achieve access to secure, affordable health care for all, with support from numerous studies, most recently California?s Health Care Options Project.

Measure 23 was to be financed in three ways. More than a third of the necessary funding would have come from money already being spent by federal, state, and local governments. A progressive income tax of up to 8% of taxable income exempted families with incomes 150% or less of the federal poverty level. Lastly, a progressive employer payroll tax from 3% to 11.5%.

The list of covered services was comprehensive, and included prescription drugs, inpatient and outpatient services, vision, dental, mental health, long-term care, and alternative medicine. The language said that the plan would cover "medically necessary services" "by licensed, certified, or registered health care practitioners." No copays or deductibles.

Oversight and administration would be by a publicly accountable nonprofit Board. Two members were to be elected from each congressional district, and five additional members (including a consumer advocate) would be appointed by the governor. The Board would negotiate compensation with providers.

Major strengths and weaknesses of our campaign. Obviously, our biggest problem was our lack of money to counter the deep pockets of the insurance industry. A poll in October showed us at 36%, the opposition at 39% and 25%
undecided, at which point the opposition, which had not taken us seriously before, began spending serious money. The state?s best-known independent pollster was of the opinion that we would have been able to run a competitive race if we had had as much money as our opponents.

We were also hampered by our lack of major institutional supporters. The AFL-CIO came out in opposition, and the organizations that did endorse us did little to actually help. People who would have benefited greatly from Measure 23 nonetheless failed to support us, in part because of the measure?s complexity and our inability to get our explanations out to them.

Our major strength was our volunteer base. Single-payer universal health care is an issue that brings out idealistic hard-working activists. The HCAO secretary died during the signature-gathering portion of the campaign; while he was in the hospital, he kept a signature sheet on his bed, and demanded all his visitors and medical staff sign it.

The unexpected recession was both a source of support and a problem for us.
On the positive side, more middle-class voters were feeling insecure in their employer-provided health insurance. But everyone was also feeling the economic pinch, and that made it much less likely that a majority would vote for additional taxes. In addition, the recession caused lower 2005 health plan revenue projections, leading to less progressivity in income taxes.

Problems with initiative language. A degree of blame for the defeat of Measure 23 lies with the language itself, which was written by a small language committee with insufficient input from stakeholders, none of whom took our campaign seriously enough at its start to choose to become involved. The initiative represented a broad policy outline, and several details that were left for the plan?s Administrative Board to resolve drew criticism.

Opponents seized on the vague phrase "covers medically necessary services"
"by licensed, certified, or registered health care practitioners" to portray the measure as providing unlimited services. Also, the coverage of alternative medicine offered an easy target for opponents, who claimed repeatedly that the measure would cover aromatherapy, music therapy, and marriage counseling, even hairdressing. Alternative medicine providers themselves generally were nervous about being treated as second-class citizens under the proposed system, and so did not contribute meaningful support.

Physicians and hospitals were nervous about getting adequate reimbursement,
fearing the Administrative Board would negotiate below-cost payment schedules to providers, as current government programs do, and not recognizing the system would have permitted higher reimbursement. There was also some question about whether anti-trust laws would permit group negotiations to take place.

Some physicians, a key stakeholder group, would likely have paid the highest
tax rate under the plan, which also did not make them happy about the measure.

Measure 23 depended on getting federal Medicare and Medicaid waivers. Some
critics said such waivers would be difficult to get, especially from an administration hostile to single payer.

Many voters and physicians were nervous about over-utilization, citing the lack of co-pays and the lack of a spelled-out gatekeeper system. While it costs far more to administer co-pays than they bring in, and they may cause low-income people to defer needed treatment, co-pays may have to be considered from a political standpoint in future legislation.

The cap on the health care tax that the very rich would pay was capped at $25,000 annually. Opponents seized on this number, claiming that many people would pay this much.

State legal counsel advised us that a state could not limit a health-care entitlement simply on the basis of time of residency. Critics claimed the
resulting vague definition of Oregon residency would result in a flood of
out-of-staters and illegal aliens seeking free care.

Campaign issues. As noted above, many of our problems were caused by the simple lack of adequate money and campaign workers.

The refusal of AFL-CIO leadership to become involved in the drafting of the language and its subsequent opposition to the measure scared off endorsement
by many office-holders and lowered our fundraising effectiveness. Labor's bottom line was that they did not want more than 20% of the new funding for the plan to come from income taxes (under the plan this number was about 43%). In Oregon, labor has an electoral machine at least as powerful as the Democratic Party?s, so labor?s opposition was devastating. In addition, as we approached many civic groups, labor usually had preceded us, spreading negativity about the initiative.

Since the campaign was so under-financed, we had to rely on the state Legislative Revenue Office to develop estimates of what individuals and business might pay under Measure 23 . Because the legislature was called to five special sessions to address budget shortfalls, the LRO was too busy to provide these until very late in the campaign.

Under-funding also did not allow us to do any polling. As a result, we did not know what messages would resonate with voters, which demographic groups
to target, etc. We finally went with "Secure, Affordable Health Care for All." The Tribune poll showed us up 8 points with women and down 4 points with men.

Our under-financed Yes on 23 campaign was not able to respond to insurance
industry media blitzes, so most voters only heard one side of the story, focussing on TAXES. About 100 of our ?Max and Maxine? seniors spots and attack ads costing $15,000 aired on extended cable in the last days of the campaign. This may have been a mistake. However, many voters already been swayed by prime-time network TV No on 23 ads by the time these aired.

Supporters and others. Notable endorsers included the Democratic Party of Oregon, Consumers Union (publisher of Consumer Reports), Ecumenical Ministries of Oregon, National Organization for Women (Oregon), a handful of courageous politicians, the Pacific Green Party, PNHP, and, of course, UHCAN. As noted above, we were disappointed by the opposition of much of organized labor, but a handful of individual unions did endorse and support our efforts.

Faith community organizing played little role. It was difficult to get churches involved in a specific piece of legislation. The Catholic Church did not participate, as Measure 23 would have provided funding for reproductive services and assisted suicide and put a nonprofit health insurance organization sponsored by the church out of business.

The Oregon Nurses Association remained neutral. Most of the medical organizations opposed the measure, though a good number of individual physicians endorsed it.

We were not able to do enough outreach to small businesses. The problem is that most small business owners are not joiners and so organizing them was a one-on-one process. J.L. Wilson of the NFIB, who became one of the main faces of the opposition, stated that businesses simply did not want a mandate to participate. (The insurance industry did not appear much in the public debate, but instead allowed business to fight their battle).

The National Association of Retired Federal Workers attacked Measure 23 in emails to its members, even though they would have been exempt under the plan.

How we campaigned.
The HCAO website has been vital in making campaign materials and information available around the state (and country). And the availability of email has been invaluable both in discussing issues among supporters and in organizing.

While HCAO printed materials have generally been professional-looking, they tended to be ?college-ey? in both language and appearance, and hence may not have appealed to some prospective voters. This problem was, of course, exacerbated by the difficult of explaining a complex issue in a few short phrases and soundbites. A summary of the initiative, backed with compelling facts and an expanding list of endorsers, was one of our most important handouts during the signature-gathering phase. During the electoral campaign, we relied on a more user-friendly brochure.

Canvassing and phonebanking efforts did not have enough volunteers to make them effective.

3000 bumperstickers were printed and most distributed. The left side featured  "Yes on 23," with "Secure, affordable health care for all" on the right, with white lettering on a green field. In future, we will use blue as a campaign color (as we did for the lawn signs). We are trying to be perceived as non-partisan, and green may reinforce a perception that this is only a "Green" issue.

2000 lawn signs were printed and most distributed. They were handsome,
durable and great for visibility events. 1500 buttons were produced and were
effective in one-to-one outreach.

House meetings did not work well, even after the measure qualified for the ballot. Therefore, we concentrated on making presentations to organizations and leafleting and tabling at events.

There are HCAO chapters in Portland, Corvallis, Eugene, and Ashland. Sheer driving distance made it difficult to organize effectively in rural areas that would have had significantly better health and economic outcomes under Measure 23.

The fundraising firm we put on retainer did a failed mail appeal to grocery store managers and simply relied on our existing donor and contact base thereafter.

A campaign manager and communications director were hired from a failed governor's campaign in June. Their main achievement was improving our press work. There was not enough money to establish a campaign office.

Oregon sends a Voters Pamphlet to every voter. We placed three times the number of Arguments in Favor than the Opposition placed. We even placed the first Argument in Opposition, a satire, that got good publicity and was fun, too. We used our awesome signature gathering machine to set an Oregon record by collecting enough signatures to place eight Arguments in Favor, instead of plunking down $500 for each one.

We were hurt by demographic voting patterns: poor uninsured people tend not to vote. But we tried to capitalize on widespread middle-class worry about health care, and not to portray this as only an effort to expand access to the uninsured. Clearly, this approach was more likely to resonate in the current uncertain economic climate. In a poll the Kennedy School of Government and the Kaiser Foundation conducted of more than a thousand people with health insurance, a full 28 percent said they are very worried they will no longer be able to afford their coverage. Another 22 percent are very worried that their benefits will be cut substantially and 18 percent are very worried they will lose their coverage altogether.

Achievements of the campaign. While other organizations have only complained about the problems of the current health-care system and suggested band-aid solutions, we put a concrete proposal on the table. Our campaign raised the visibility of the single-payer solution in the national media; articles on the campaign appeared in numerous newspapers nationwide, including the Christian Science Monitor, Wall Street Journal, L.A. Times,. etc. I spoke on radio talk shows nationwide putting the concept of a single-payer solution on people's radar screens. Bringing a concrete measure to the table was galvanizing, and inclusion of a funding mechanism forced people to think more critically about funding health care.

The campaign has made many valuable contacts and gained Oregon healthcare activists on-the-job political experience. The No on 23 campaign provides an opposition blueprint for HCAO and other single-payer activists around the country to refer to.

The public debate over the last few months has generated valuable feedback on what Oregonians want in their health-care system. Even some opponents encouraged us to modify Measure 23?s language and to try again. Single-payer universal health care was not taken seriously when we began this campaign. The successes of the Measure 23 campaign mean that many organizations that did not return our calls last time will do so in the future.

Next steps. It is my hope that, in the coming months, key stakeholder groups will work with Health Care for All-Oregon to shape a revised measure, perhaps for 2004. If so, we plan to incorporate members from these stakeholder groups in the our decision making structure. A partial stakeholder list would include: Oregon Nursing Association, Oregon Academy of Family Physicians, progressive business groups, AFL-CIO, The Oregon Association of Hospitals and Health Systems, Portland City Club, public health agencies, Pacific Green Party, the Democratic Party of Oregon, the American Federation of Teachers-Oregon, Oregon Education Association, Oregon School Boards Assn., etc.

A bill with modified language could be submitted again to the Oregon legislature, as we did with HB 3801. While it would probably have little chance of getting out of committee, it might get a hearing and could serve as an organizing tool.

HCAO is also considering other organizing avenues, although the group is split on organizing on issues considered to be incrementalism. It has been suggested, for example, that HCAO could put forward a municipal resolution supporting universal health care in Portland or Eugene, the most liberal cities in the state. SEIU's Oregonians for Health Security has several policy initiatives ongoing, as well as a goal of electing legislators supportive of health care reform. Some HCAO members are working with a coalition seeking to place a campaign finance reform initiative on the 2004 ballot, seeing this as a long-term solution.

Organized labor appears to be focussing on a possible "Health Care for All Children" initiative. Unions have already trimmed members' salaries, services, and choice of providers, and boosted their co-pays and deductibles; the next cost-cutting measure is likely to be to drop workers' dependents from their insurance. In anticipation of this, unions propose a measure that would cover all Oregon children from families under 300%  of the federal poverty level, funded by a 2% employer payroll tax.

If we want to get organized labor's support, we will need to find a funding source to lessen the percentage of funding paid by individuals. If we succeed, this would also have the practical effect of stabilizing system funding in lean times. Increasing the employer payroll tax is probably impractical.

Avoid reinventing the wheel. We were able to take some lessons from previous campaigns, such as Massachusetts? Question 5 and California's Prop. 186. I hope health care reform activists can learn from this campaign as well, and encourage them to contact us with questions.


-=-=-=-=
from Jim Ramsel:

Do You really want to get a health care initiative passed?

If You do then:

1. Leave the initiative alone except remove the income tax cap. The initiative, as written, is not the reason it didn't get passed; HCAO did not have the support of Oregonians and !!if you do your "homework" you will find that no matter what else you do without their support it WONT happen!! Study history to learn how Social Security and Medicare came into being and study our government to learn why programs that redistribute wealth to or for social programs either are under funded or don't become law.

2. Make a plan to educate Oregonians about how Measure 23 would make it possible for EVERYONE to get medically necessary treatment without copayments or deductables and that people in lower income tax brackets would pay less than the do now or nothing if they were at or below 150% of the federal poverty level. Study Chapter 8 of "Profit Fever" by Charles Andrews if you want to re-enforce the idea that this is the proper - the only - path to getting access to health care for all Oregonians.

3. Raise the money to fund your plan. See 4.

4. As per your plan, set an up organization with an organizer and staff at different points throughout Oregon. Talk to Don Bechler to come up with a set of instructions on how to manage house meetings. From this. the placement and the total number or organizers required can be derived once a time schedule has been set. !!Tell the organizers what you want them to do.!! DO NOT LET THEM TURN THIS INTO A POLITICAL CAMPAIGN. As Andrews says "Don't fight in TV
Alley." Isn't it obvious that no matter how hard you try you'll never raise enough money to win there.

ote well that wise council from a member of a Carpenters Union in the AFL-CIO said that the only way to get support from the top brass was to go to the branches and convince the workers to support you and then they would force the brass to support a Measure 23. Sounds like education to me.

Either you educate Oregonians and get a large majority supporting you or you will fail again to get universal health care passed; remember too that *evolution* wont succeed. No matter what anyone tells you, there is no other way. I know; I've done my homework.

jim r

P.S. Visit my websites to see where my knowledge comes from. Most
of the sources are shown on the two reading lists shown there which
represent hundreds and hundreds hours of study.
http://www.efn.org/~ramselj/

Gore Supports Single-Payer

ABC News
November 14, 2002
Gore Supports Single-Payer

On a stage in a synagogue on New York's Upper West Side Wednesday night,
Gore made this stunning announcement to several hundred people in response
to a question from the event's host.

Gore suggested he was hesitant to reveal his position at this forum - but
then declared that he had come "reluctantly" to the conclusion that
single-payer is the best solution to the nation's health insurance crisis.

Long supported by the left, single-payer plans involve all money spent on
health care being collected by some public agency or trust fund, which then
pays for comprehensive coverage, delivered privately and publicly, for all
citizens.

Issues of taxation, quality of care, availability of care, and medical
innovation are all implicated in such a system, with Canada's plan often
used as the basis for understanding and analysis.

For Gore, this represents a shocking switch. Although many of the people who
worked with Hillary Clinton and Ira Magaziner on the Clinton health care
plan at the start of the Clinton/Gore Administration were intellectually and
morally sympathetic to single-payer, it was rejected as being simply too
radical and too big a political target.

Even Bill Bradley, who frequently charged Gore during the 2000 presidential
primary with being timid on finding health care solutions, disappointed many
of his own supporters by not coming out for single-payer.

And if Gore is a presidential candidate for 2004, this gambit would allow
him to outflank on the left even Vermont Gov. Howard Dean, whose calls for
massive new spending on health care so far do not include support for
single-payer.

Gore's decision to go public with his new position could be viewed as part
of his reported avowal to speak more from the heart on big issues he cares
about, feeling less encumbered by what polls and focus groups might say is
popular.

Some surely will see Gore's switch as part of a series of calculated moves
perhaps intended lock up the left wing of the Democratic party in hopes of
securing the party's presidential nomination.

Others will say that Gore isn't even necessarily running for president, and
is feeling liberated enough to speak his mind and take bold policy positions
deriving from his nearly unparalleled experience in, and knowledge of, a
range of foreign and domestic policy issues.

It is surely the case, though, that potential 2004 rivals Gephardt, Edwards,
Kerry, Lieberman, Dean, and Daschle can all be expected now to take
positions in relation to single-payer.

http://abcnews.go.com/sections/politics/DailyNews/TheNote_Special2.html

Achieving Universal Health Care: Lessons from Other Countries, and Our Own

Len Rodberg, NY Chapter, PNHP
Currently in press, will be published in journals soon.

The series of papers in this issue identify the central characteristics of the longest-standing national health systems. In the course of the lectures and seminars in this series, the author prepared a series of commentaries addressing the lessons that could be learned for our own country. The central focus of these notes is: What can we learn from other countries in seeking to achieve universal access to health care in this country? Valuable insights are available; they are summarized in what follows

Several notes on terminology: I use the term “universal health care” to mean that no one faces financial barriers to health care at the time they need it and can seek care without concern that they will not be able to afford it. Once they do seek care, they can receive the care they need without facing further financial barriers. The term “single payer” refers to a system that is overseen, regulated, and, most important, standardized by government so as to assure the right to health care. The term does not refer to any specific plan.

1. Is There Any Way to Achieve Universal Health Care Other Than Through a Single Payer National Health System?

A study recently published by the Economic and Social Research Institute, and funded by the Robert Woods Johnson Foundation, looks at a range of innovative heath care financing options for the United States (Covering America: Real Remedies for the Uninsured, edited by Jack A. Meyer and Elliot K. Wicks; a detailed summary is available at www.esresearch.org/RWJ11PDF/ summary.pdf.). The ten options examined in this study aim at expanding insurance coverage. Of the ten plans examined, only the single-payer approach provides coverage for everyone while, at the same time, relieving the medical profession and the hospital industry of the administrative and financial burdens imposed on them by the insurance industry. All but the single-payer plans settle for the more modest goal of extending health care coverage to “most, if not all, Americans” or, as one author puts it, to “reduce the number of uninsured” (p.24).

All of the plans that try to increase coverage within a multi-payer private insurance environment use a form of means-testing, in which coverage received depends on income. Several authors recognize the complexity of such subsidy programs, which must be adjusted almost month by month as family incomes shift. We know from long experience with Medicaid the problems this creates for both patients and providers. Even the middle class no longer has lifetime jobs, so any plan that retains employer-provided insurance encounters the complexities and discontinuities of switching from one plan to another as policyholders move from job to job. Likewise, all retain the two-class system of care (what one author calls a “layered” system), with good coverage and access to quality services for those with high-end plans, and limited coverage and limits on access to quality care for the rest. Finally, they are exceedingly complex, as they attempt to avoid “crowding out” of private coverage -- employers’ abandonment of private coverage when they know the government will provide it instead, probably at lower cost. And all inject more money into the system, keeping current arrangements and adding money to provide coverage for more people.

The editors of the volume propose an innovative proposal that seeks to achieve universal coverage by requiring that every citizen obtain coverage, with a public Medicare-Plus plan as the bottom-line coverage of last resort. As they point out, “To ensure that everyone has coverage requires one of two conditions: either everyone must be required to buy coverage, or a public system must be in place that automatically covers everyone.” Under their plan, everyone would have to show proof of coverage when filing their income tax returns. Those who show up in the medical system without coverage would receive the care they need; they would then be billed for every month they had been without coverage. This would clearly discourage those without coverage from seeking medical care.

The lessons of this volume, then, are (i) that we can expand coverage, but not achieve universality, at the price of increased health care costs and retention of a complex multi-class system; (ii) we can achieve universality by imposing a regulatory regime on the insurance industry along with requirements and penalties on the population at large; or (iii) we can make access to health care a right of all those living in the U.S. while simplifying the system and greatly reducing its cost.

2. Do the German and French Health Care Systems Show That a Multi-payer System Could Provide Universal Health Care in the United States?

It has been argued that the ability of Germany’s and France’s health care system to achieve near-universal access to health care through a network of hundreds of “sickness funds”, which serve as fund collection and reimbursement mechanisms, demonstrates that a multi-payer system can work in the United States. Is this so?

The sickness funds in Germany and mutuelles in France differ markedly from the American private insurance companies. They are are non-profit entities. They cannot accumulate capital. Their staff salaries are strictly limited. And their coverage and benefits are determined by the federal government and are uniform across the country. Risk adjustment takes place across funds, and there is little competition among them. They are, in fact, far more like the fiscal intermediaries that handle reimbursement under the Medicare program, or even the provincial government in the Canadian single-payer system, than private insurance companies.

3. What Would It Cost to Achieve Universal Health Care?

A careful, quantitative study of alternative plans for reducing the numbers of uninsured in this country has now been carried out. The California State Legislature, using funding from the Federal Government, contracted with the Lewin Group, a Washington-based consulting firm, and its chief economic analyst, Dr. John Shiels, for a careful analysis of a set of plans designed to reduce the number of uninsured in California. The final report of the Health Care Options Project (available at www.healthcareoptions.ca.gov) confirms that (i) a single-payer, publicly-financed plan can provide universal access to care while reducing the overall cost of health care, and (ii) any other approach will cover fewer people while costing more than is now spend on health care.

This table summarizes the Lewin results:

Type of PlanReduction in Uninsured (%)Change in Total Cost (%)
 
Incremental (multi-payer public and private insurance)
California PacAdvantage Premium Program (Harbage et al)1.70.1
Cal-Health (Schauffler)5.60.1
Insure the Uninsured Project (Wulsin et al)18.51.4
Managed Care Expansion Plan (Brownstein et al)28.12.4
 
Employer Mandate
CHOICE (Schauffler)69.71.8
Health California (Brown & Kronick)86.42.0
 
Single-Payer
Cal Care (Spelman)100.0-2.4
California Single-Payer Plan (Kahn et al)100.0-5.0
California Health Service Plan (Shaffer)100.0-4.9

All of the multi-payer plans add to current costs while covering, in the case of the voluntary subsidized plans, a relatively small portion of the uninsured. The employer-mandate plans cover a larger portion of the uninsured, up to an estimated 86%, but at correspondingly greater cost. The single-payer, publicly-financed plans, on the other hand, reduce overall costs while covering everyone.

The Lewin study is valuable as well for its guidance in designing proposals. For instance, it shows that families at nearly all income levels would save money with the proposed single-payer plans. Employers who now provide insurance for their employees would save money, but employers (particularly small employers) who do not now provide insurance would spend significantly more than they now do, between $1,600 and $2,200 per worker. These plans might be modified so as to delay the savings to families and large employers and use the savings to phase in gradually additional spending by small employers.

One unexpected finding in the California study is that the employer mandate plans, under which employers either provide private insurance to their employees or pay a tax to cover them under a public insurance plan, cover between 70% and 86% of the uninsured but add only 2% to the cost. How can the total number of people covered increase by between 13% and 16% and yet the cost go up so little?

Upon examining the Final Report from the Lewin Group, the answer becomes clear: Most of those insured under the employer mandate would choose the public plan, with its much lower cost. In fact, many of those now covered by private insurance would choose the public, single payer plan, so that fewer people would be covered by private insurance after the plan is implemented than are now covered by that more-costly insurance. The result is a very small net increase in cost. (One recent response by advocates of private insurance is a requirement, in a plan proposed in the State of Maryland, that would prevent individuals from switching to the public plan unless they are without insurance for six months, in other words, a form of “insurance lock”.)

If it is true that a public plan is so much more cost-effective than the private plans (we already know this from experience with Medicare), why retain the multi-payer private insurance portion of the employer mandate at all? With the continuing high administrative cost of these private plans, their second-guessing of physician recommendations, the two-class access to care they create, the continuing complexity facing physicians and hospitals in seeking approvals and reimbursements, the absence of preventive care, the failure to foster coordination of care, and the many other deficiencies of a multi-payer private system, there seems no reason to retain these unnecessary middlemen. Keeping them in the system, as these “play or pay” plans do, offers continuing opportunities for them to undermine the system. They might attempt to retain their share of this new system by offering cut-rate plans to “cherry-pick” healthy workers, or they might offer plans initially at a loss to retain access to employers, only later increasing the price.

In short, if the success of the employer mandate depends on the existence of a large, effective single payer component, good public policy should seek all of the many known advantages of a single payer plan and support its growth and strength.

4. Conclusion: Final Lessons

This series of papers on the achievement of universal health care in other industrialized countries has illuminated many issues that we should consider in seeking a reformed health care system in the United States. Here are some that seem especially important:

The centrality of government: In every country examined, a strong national government presence defines universal health benefits, sets standards, and assures fairness and equity. Regardless of the specific manner in which revenues are raised or are disbursed, the national government oversees the entire process, providing a powerful public mechanism for sharing risks and working toward assurance that all residents have access to essential health care.

Health care must be a right, not a privilege to be purchased. Access to health care is assumed to be a basic right of all residents. It is not dependent on an individual choosing to participate, working for a particular employer, or paying at the time care is received. Instead, it is assumed that all contribute, and all benefit.

There is no need for a market system. Every universal system uses some combination of governmental and non-profit management. In none of them is there a market system, either in reimbursement or in the provision of care. And, contrary to some of the claims of market ideologues, these public non-profit systems are far more cost-efficient than our current market-oriented system.

Poor People's Economic Human Rights Campaign's New Freedom Bus Tour kicks off in Philadelphia

The New Freedom Bus Tour is traveling across the United States for a month bringing attention to communities struggling for Economic Human Rights. A diverse group representing organizations of the poor from across the country is carrying the message of Economic Human Rights around the country and, on December 12th, to the United Nations in New York city The Bus tour is gathering documention of economic human rights violations occuring in the United States to update our petition charging the US government with human rights violations against its citizens.

Hundreds of students, labor leaders, workers, healthcare professionals, social workers and community members gathered in Philadelphia for a march and rally demanding healthcare for all.

The march assembled at the convention center during the opening session of the American Public Health Association's Convention.

Over 45 million Americans are without health care. The United States is the only industrialized country without universal health care. However, our system costs far more than those other systems. For-profit health care companies were the single greatest contributor to political campaigns this past year. Over 1.5 million families declared bankruptcy last year due to health care-related issues.

KWRU member and actor Mark Webber (recently appearing in the movies Hollywood Ending and Chelsea Walls) lead the marchers in chants.

Congressman John Conyers, a leader in the US House of Representatives in the fight for universal healthcare, who is now working to introduce a national single-payer health care bill, said,"We want a single payer healthcare system because - guess what? - it saves money, and it saves lives."

Cheri Honkala, Director of KWRU and National Spokesperson for the Poor People's Economic Human Rights Campaign said, "We will use our national bus tour to expose the hidden war taking place in America. State by state we will witness the denials of basic human rights and we will document and listen to the stories of people who are living without the basics of food, housing, living wage jobs, education, and healthcare."

Mark Dudzic, National Organizer for the Labor Party spoke: "The Labor Party has made this struggle for Just Healhtcare at the top of our organizing agenda. And we salute the Kensington Welfare Rights Union, who are leaving today on a bus tour to carry this message of healthcare for all around the country.We belive that the only way that we are going to create a movement for national healthcare is to build a strong, independent movement of working people, of medical professionals, of poor people, of all the locked out, shut down, left out brothers and sisters around this country. Only then will the political parties listen to us and will do what every other country in this world has done for its citizens."

Other event speakers included:

Eric Hodgson - American Medical Student Association Bill Kane - New Jersey Industrial Union Council Quentin Young - Physicians for National Health Program / American Public Health Association Claudia Fegan - Physicians National Health Association Pedro Rodriguez - Action Alliance Ellen Isaacs - American Public Health Association Special Musical Guest: Foreign

November 05, 2002

Harry and Louise:  The Missing Years

October 31, 2002
Harry and Louise:  The Missing Years
Steve Genova

As Oregon's hotly contested single-payer initiative heads into the home stretch, it seemed like a good time to revisit my old pals Harry and Louise.  You remember them; they were the managed care industry's mascots in the early '90s and, according to industry observers, had more to do with sinking the 1994 Clinton health care proposal than all the rest of the negative campaigning combined.

Most people naturally assumed Harry and Louise were creatures of the PR and advertising industries.  They're very much alive, however; they were friends of my parents from way back when.  They were frequent guests at our house when I was a kid and we at theirs.

They were always doing just a little bit better than my folks, so we gradually drifted apart the way people seem to when their fortunes head in opposite directions.

Still, I had stayed in touch with them over the years and, when they ended up in Oregon, I thought it might be time to check in with them again.  I hadn't seen them since about 1997 and, at the time, things were going pretty well.  Their house was paid for, their stock portfolios were growing, Harry had been promoted to a regional management position, Louise had taken up quilting and golf, and Harry was making noises about retiring to a golf course community by 2004.

So you can imagine my shock when I looked them up at their new Oregon place a couple of months ago.  Gone were dreams of the bungalow on the seventh fairway.  They'd been replaced by a used doublewide in a squalid trailer park well within earshot of I-5.  Louise was at the doctor's and Harry brought me up to speed. 

He'd been laid off from his job in early 2001, which not only cut his income to near zero, but cut off his and Louise's health care coverage as well.  "My COBRA coverage ran out this June, but that's not even the worst part," he said.  "Louise has breast cancer.  She had a series of operations last December, while we still had coverage thank God, but she needs another operation and a round of chemo to stay in remission and I don't see how we can afford it.  We've sold the house to raise cash, but I don't even think that's going to cover her expenses.  I honestly don't know what the hell we're going to do."


Harry and Louise go Chapter 13
I picked up a copy of the local paper a few weeks ago and saw a brief news story describing how medical expenses drove Harry and Louise into bankruptcy court.  I called them up and they confirmed what I'd read.

I asked them if they knew medical expenses are the leading cause of bankruptcy in the US -- and nowhere else in the civilized world.  They hadn't heard that one, but they were less interested in stats than in where to come up with medical and legal fees. 

We rang off after a short conversation that I can only describe as surly and panicky -- a drastic change from the usual. 


Harry and Louise Turn to Crime
The news just gets worse.  Harry has been busted for sales of controlled substances -- in this case, Demerol, which Louise was using to try to control the pain from her untreated breast cancer. 

She and Harry agreed that they needed money more than pain relief, so Harry apparently joined the bangers and the mules on a well-known drug commerce corner.  The cops pulled a sweep and, of course, Harry was the only guy there who couldn't do the 60-yard dash in less than seven seconds.  So the cops rousted him. 

His bail was insanely high, given his age and the reasons for his behavior.  So he stayed in the local lock-up for 10 days until his case finally came up.  He was sentenced to time served and a $10,000 fine (which of course he can't possibly pay), and Harry and Louise were left wondering what the hell to do next.


Harry and Louise Found Dead in Apparent Murder-Suicide Pact
The end came abruptly but not unexpectedly.  Harry and Louise were always decent people with a profound sense of pride in the American system and their place in it.  When that very system boomeranged on them, they couldn't handle it.  Nor could they envision an old age of poverty, untreated disease and constant pain.

The papers and local newscasts gave the story minimal, though dignified, coverage.  But the suicide note got the headlines.  With their last earthly acts, Harry and Louise went down swinging, rejecting an "unworkable, utopian" single-payer system and defiantly embracing the U.S. employment-based health care model. 

"At least we didn't lose our choice of doctors or buy into a system that would have rationed health care, created an army of bureaucrats to make health care decisions and turned medical care over to the government," the note read.  Just so.


Next time:  Harry and Louise go to hell.  As John Prine might have written, their Blue Cross cards won't get them into heaven anymore.

# # #


The author is a freelance writer, communications consultant and member of the Portland Yes on Measure 23 steering committee.  Send comments to steveng@sonic.net

November 01, 2002

Economics at heart of Measure 23 debate

October 31, 2002
By Rebecca Merritt
The Bulletin

On the surface, Measure 23 looks to be a good deal for the average family struggling to keep up with escalating health insurance premiums.

If approved in Tuesday's election, Oregonians would create a health plan that would cover everyone. Residents would receive a rich benefit package that includes everything from chiropractor visits to nursing home care to mental health counseling. To pay for it, residents would be taxed up to 8 percent of their incomes, and businesses would face a 3 percent to 11.5 percent payroll tax. Those figures would be in addition to current taxes.

But can Oregon afford such a bold plan?

The plan's economics is at the heart of the debate over Measure 23. Supporters argue the system would save money by better controlling costs, while opponents point to a recent study that concludes the plan could increase health care expenditures in the state by as much as 30 percent.

For starters, the financial impact statement in the state voter's pamphlet underestimates the measure's potential cost, according to the state's report on Measure 23's fiscal impact.

The pamphlet states Measure 23 would cost the state not less than $1.7 billion per year while also taking in revenues of not less than $1.7 billion from income and payroll taxes.

The cost projection is based on the assumption of only covering the cost of about 460,000 people who are now on the Oregon Health Plan and another 420,000 Oregonians who have no health insurance.

But state budget analyst George Naughton said the state's cost would increase to about $10 billion if those with private insurance drop their coverage to be part of the universal plan. And that's likely to happen because people who pay for health insurance would be taxed for the new plan. Employers, faced with higher payroll taxes, would also almost be certain to terminate their employee health plans.

Naughton said the committee that puts together financial impact statements had their hands tied with Measure 23 because the committee cannot make assumptions about what may happen after a measure passes.

"We had to go with $1.7 billion because of what the measure says," said Naughton, who wrote the state's report. "The measure does not say people have to drop private insurance, but assuming they drop insurance would bring the cost up to $10 billion."

With the income and payroll taxes set by the measure, Naughton said the state could generate enough revenues to cover the $10 billion cost. Increased income taxes could generate up to $4.7 billion while payroll taxes could generate to $6.1 billion for a total of $10.8 billion.

That means to cover that $10 billion, businesses and residents would likely be taxed close to the maximum limits set by the measure, depending on what happens with the economy between now and when the plan would take effect in 2005.

In addition, the measure would create a state board to oversee the plan and the board would have bonding authority to raise additional money. Because there is no way to predict what the board might do, there is no way to project how much debt the state would face because of bonds.

Supporters of the measure admit it is going to cost even more than the $10 billion to provide comprehensive health care to everyone in the state. Mark Lindgren, chairman for Health Care for All Oregon, said the total cost would be $19 billion per year. The rest of the money would come from shifting state and federal dollars to the plan, including Medicare and Medicaid dollars and workers compensation fees, he said. The plan would also begin collecting a 1 percent payroll tax in 2003, before the plan is implemented in 2005, to set up a reserve of funds.

Lindgren and campaign supporters say the plan is economically feasible because of cost savings that would come from lower administrative costs and global budgeting. By keeping administrative costs to 5 percent, the plan could save $1.5 billion. The plan would also save money by working with pharmaceutical companies and buying prescription drugs in bulk. Also, he said, the plan would encourage people to see doctors for preventative care, saving them more expensive trips to emergency rooms.

Opponents argue that there is reason to believe Measure 23 could cause a financial hardship for the state. A study conducted by the economics consulting firm LECG concluded that Measure 23 could increase health care expenditures in the state by as much as 30 percent. The study was commissioned by The American Association of Health Plans, an opponent of the plan who represents managed care companies across the nation.

According to the study, Oregon's health care costs would rise by $2.2 billion to $6.5 billion once the plan is implemented. The study's authors argue that the elimination of co-payments would increase the amount of services demanded by participants. Also, the plan's comprehensive benefits and lack of a residency requirement may encourage people to move to Oregon for health care services.

The study concluded that increasing taxes to the plan's limits would still leave the plan underfunded by $3.5 billion to $10.4 billion. Therefore, the study said that Oregon would have to raise more money.

Karen Ignagni, chief executive officer of the American Association of Health Plans, said the study shows the estimated costs presented before the public are too conservative.

"It demonstrates the burden that would be placed on households in Oregon," Ignagni said.

"You would have an explosion of population in Oregon because of this," she added. "Why wouldn't people in surrounding states without health insurance and with a chronic disease move to Oregon?"

Supporters point to nine studies that say universal health care is economically feasible. One study, conducted by Boston University's School of Public Health, showed that universal health care would lower the cost of health care in Massachusetts by savings in administrative costs and more appropriate use of hospital care. The study done in 2000 concluded that a universal plan could cut administrative costs by $3.6 billion and redirect $2.4 billion to providing more health care to more residents, resulting in an overall savings of $1 billion.

Deborah Socolar, author of the Boston study, said a state's specific situation affects whether savings are achievable with universal health coverage. The uninsured population in Massachusetts is fairly low, and the government health spending per person is among the nation's highest so saving money may be easier there.

In Oregon, she said, the uninsured are a greater share of the population and the state is among the 10 lowest in the nation for health spending per person. But Socolar said it's encouraging for Oregon that a feasibility study showed universal health care coverage would save money in California, which has a higher number of uninsured residents and also has a lower spending per person.

Another study, supported by a grant from the U.S. Department of Health and Human Services, showed that Vermont would save $118.1 million in health spending with a single payer health system. The Vermont proposal, however, included a $10 co-payment for health services. Oregon's plan has no co-payments, which can help control unnecessary visits to the doctor.

Regardless of the outcome of Tuesday's election, Oregon is at the forefront of the debate over universal health care coverage. Six other states are working on similar proposals to offer single-payer health systems, said Rachel DeGolia, operations director for the Universal Health Care Action Network in Ohio.

"They've been successful in sparking a debate at a much higher level than you've had in the state," she said. "It really has helped raise the level of debate of the nation."

http://www.bendbulletin.com/news/story.cfm?story_no=8124