PNHP

Medical group challenge of getting paid

Medical group challenge of getting paid

Bottom line blues

By Karen Caffarini
American Medical News
November 17, 2008

Medical Group Management Assn. members were asked to name the tasks their practices found most challenging.

50.1% Collect from self-pay, high deductible and/or health savings account patients

28.7% Collect from commercial payers

14.5% Collect from Medicare

http://www.ama-assn.org/amednews/2008/11/17/bisa1117.htm

Comment:

By Don McCanne, MD

Medical groups certainly have many challenges, but one of the more important is getting paid. This survey of Medical Group Management Association members provides some important lessons.

Twice as many groups found that collecting from private health insurers was very challenging compared to the challenge of collecting from Medicare. This is not a surprise. Previous studies have confirmed that private insurers do place a significant administrative burden on the health care delivery system. It is difficult to comply with the various rules and procedures of a multitude of private plans, especially when those plans use innovative methods to delay (work the float) or avoid altogether paying claims for legitimate services.

Medicare does contribute to a lesser degree to this burden. Medicare is much more consistent in applying their rules, and they do not engage in behavior designed to avoid paying for services rendered in good faith. But Medicare does add to the complexity by using rules and administrative procedures that differ from those of the private plans. If Medicare were the only payer, the one set of rules designed to pay for legitimate services would greatly simplify the process for the providers of health care.

Much has been written about how out-of-pocket expenses have impaired access to beneficial health care products and services. Although cost sharing has caused some patients to decline services that they perceive to be of marginal value, many have also declined services that they know they should have. Many in the policy community oppose cost sharing because it is a blunt instrument that impairs access, and because it has only a negligible impact on our total health care spending.

This survey reveals another problem with patient cost sharing. Medical groups have found that collecting the patients’ share of the payments has been even more challenging. About twice as many groups find that this is a challenge compared to that of collecting from private insurers, and almost four times as many as that of collecting from Medicare. Cost sharing represents another excessive, inappropriate administrative burden placed on the health care delivery system.

The solution? A single payer national health program. (Yes, this is repetitive, but isn’t anyone listening?)

U.S. health care ranks first – as worst value

Health Spending In OECD Countries: Obtaining Value Per Dollar

By Gerard F. Anderson and Bianca K. Frogner
Health Affairs
November/December 2008
In 2005 the United States continued to spend much more on health care than any other OECD country. In spite of myriad cost containment initiatives during the past thirty-five years, the annual rate of increase in real U.S. health care spending is slightly above the average annual rate of increase in the median OECD country. And the United States experienced the largest increase in the percentage of its GDP dedicated to health care among all OECD countries during 1970-2005. What does the country have to show for this higher level of spending? U.S. life expectancy is lower than would be predicted based on U.S. per capita income. The United States is just as likely to be in the bottom or top half on a series of health indicators. The value per dollar for health care in the United States is further complicated by limitations in access to care; the country is not able to provide universal insurance coverage, despite its high levels of private and public spending per capita. Health reform efforts should focus on improving the value per dollar spent on health care, in addition to other reform goals of extending coverage to all and reducing unnecessary health care spending, so that Americans get the health care system they are already paying for.
http://content.healthaffairs.org/cgi/content/abstract/27/6/1718

The United States spends far more per capita on health care than any other nation, yet we are obtaining very poor value for our spending. How many times have we heard that? And it doesn’t change.
Although much of the discussion on reform has been on how we can get everyone covered, many in the policy community have cautioned that universal coverage is not enough. We need to introduce reforms that will result in a high performance system.
Some have used this to dismiss single payer as being inadequate because it only expands coverage without addressing the serious deficiencies in our health care system. Nothing could be further from the truth. Single payer not only covers everyone, it also creates our own public monopsony, or single purchaser of health care services and products. The single payer system, functioning as our own purchasing agent, finally would be in a position to demand value for our health care investment. We will never receive that from the private insurance industry, even though we have given them over half of a century to try to provide us with value.
We’re paying for a high performance system. It’s high time that we get it.

U.S. health care ranks first – as worst value

Health Spending In OECD Countries: Obtaining Value Per Dollar

By Gerard F. Anderson and Bianca K. Frogner
Health Affairs
November/December 2008

In 2005 the United States continued to spend much more on health care than any other OECD country. In spite of myriad cost containment initiatives during the past thirty-five years, the annual rate of increase in real U.S. health care spending is slightly above the average annual rate of increase in the median OECD country. And the United States experienced the largest increase in the percentage of its GDP dedicated to health care among all OECD countries during 1970-2005. What does the country have to show for this higher level of spending? U.S. life expectancy is lower than would be predicted based on U.S. per capita income. The United States is just as likely to be in the bottom or top half on a series of health indicators. The value per dollar for health care in the United States is further complicated by limitations in access to care; the country is not able to provide universal insurance coverage, despite its high levels of private and public spending per capita. Health reform efforts should focus on improving the value per dollar spent on health care, in addition to other reform goals of extending coverage to all and reducing unnecessary health care spending, so that Americans get the health care system they are already paying for.

http://content.healthaffairs.org/cgi/content/abstract/27/6/1718

Comment:

By Don McCanne, MD

The United States spends far more per capita on health care than any other nation, yet we are obtaining very poor value for our spending. How many times have we heard that? And it doesn’t change.

Although much of the discussion on reform has been on how we can get everyone covered, many in the policy community have cautioned that universal coverage is not enough. We need to introduce reforms that will result in a high performance system.

Some have used this to dismiss single payer as being inadequate because it only expands coverage without addressing the serious deficiencies in our health care system. Nothing could be further from the truth. Single payer not only covers everyone, it also creates our own public monopsony, or single purchaser of health care services and products. The single payer system, functioning as our own purchasing agent, finally would be in a position to demand value for our health care investment. We will never receive that from the private insurance industry, even though we have given them over half of a century to try to provide us with value.

We’re paying for a high performance system. It’s high time that we get it.

Unhealthy Solutions: Private Insurance, High Costs and the Denial of Care

Multinational Monitor

SEP/OCT 2008 — VOL 29 No. 2

An Interview with Steffie Woolhandler

Steffie Woolhandler is a co-founder of Physicians for a National Health Program, a not-for-profit organization for physicians, medical students and other healthcare professionals who advocate a national health insurance program. She is an associate professor of medicine at Harvard University and co-director of the Harvard Medical School General Internal Medicine Fellowship program. Woolhandler is a co-author of Bleeding the Patient Dry: The Consequences of Corporate Healthcare (2001).

Multinational Monitor: How many people are uninsured in the United States?

Steffie Woolhandler: Forty-seven million Americans were uninsured as of 2006.

MM: What are the health impacts for those without insurance?

Woolhandler: The Institute of Medicine estimates that there are about 18,000 excess deaths in the United States every year due to lack of health insurance.

In addition, people without insurance may not die, but suffer needlessly from a stroke, an amputation or kidney failure, things that could be prevented by good care. The United States has a high infant mortality rate. Our infant mortality rate is about twice the infant mortality rate in Sweden. Children are dying and being born with disabilities because they’re not getting the healthcare they need. So the biggest cost is really in terms of human suffering and loss of human life.

MM: What are the financial costs of the U.S. health insurance system?

Woolhandler: The United States has the world’s most expensive healthcare system on a per capita basis. We spend about twice as much as other developed nations spend on healthcare. And of course those other developed nations all use some form of nationalized health insurance.

MM: What are the financial costs to individuals and families, including especially the uninsured?

Woolhandler: We have looked at bankruptcy to see what share of all U.S. bankruptcies are due to medical illness and medical bills. It turns out that at about half of all U.S. bankruptcies are due at least in part to illness. The most surprising thing in our study on bankruptcy was that the overwhelming majority of those American families pushed into bankruptcy by medical bills had insurance, at least at the onset of the illness that bankrupted them. About 76 percent of all people in the U.S. pushed into medical bankruptcy do have health insurance when they first get sick.

There are two ways that they are bankrupted. Sometimes people have insurance through their job, but they become too sick to work, or have to take off work to care for a very sick child, and they lose their health insurance. So they have health insurance and then lose it because of the illness itself.

But another very frequent scenario in our bankruptcy data involved people who held onto their insurance, usually private insurance, throughout the illness that bankrupted them. They were insured the entire time, but were bankrupted anyway by gaps in their coverage — uncovered services, co-payments and deductibles.

Private health insurance is a defective product. On one hand, you may lose it when you need it most — when you get sick. On the other hand, even if you are able to hold onto private insurance, the gaps in the coverage mean that you may be bankrupted anyway.

MM: How does the current system of private insurance affect doctors?

Woolhandler: The main thing with private insurance is there are dozens, sometimes hundreds, of different rules — payment rules and eligibility rules that doctors have to keep track of. The doctors often feel that they spend a tremendous amount of time on paperwork and the administrative side of things because of private insurance and all the conflicting rules.

Going to a Medicare-for-All system — a single-payer, national health insurance system — would mean that doctors would have only one set of payment rules. Everyone would automatically be eligible, and no one would lose their insurance half-way through an illness. It certainly simplifies the paperwork and administrative side of medicine for doctors.

MM: One of the big arguments against single payer is that it would require the rationing of care. What kind of rationing exists under managed care and the current system for those with insurance?

Woolhandler: With managed care, people are very restricted in where they can go for care. That’s often a problem. A very common insurance plan in Boston, for instance, is one that doesn’t let you go to teaching hospitals for care. You have to go to less expensive hospitals. That’s not a very good way to distribute resources. Teaching hospitals should be reserved for more complicated patients and community hospitals should be used for patients with the more routine kinds of illnesses that we know community hospitals do a good job taking care of. But with this Boston plan, if you pay more money, you can get full access to all the hospitals, including teaching hospitals. And if you can’t afford to pay the full amount, you are stuck going only to community hospitals, even if you have an illness that would be better cared for in a teaching hospital. Community hospitals do a great job with certain types of illnesses, but if you get a rare or complicated disease, it’s not a good idea to be restricted.

That’s the major form of restriction that is currently being placed on patients in the Boston area. At other times and in other places, there have been many other types of restrictions.

I think the main way the insurance industry is rationing is by trying to avoid enrolling sick people in the first place. A lot of what the insurance companies are doing is trying to avoid the high-cost cases, which means avoiding people who have been sick in the past. There have been some recent stories, for example, about people who are unable to buy insurance because the insurance company went and bought the records from a pharmacy benefits company and discovered that the applicant for insurance had once filled a prescription for high blood pressure medication or for an antidepressant.

This undermines the whole idea of insurance. Insurance is supposed to be there when you’re sick. When the insurance companies decide that they’re going to focus on avoiding sick people, then they no longer play any socially useful role.

MM: One idea from within the current system about how to deal with rapidly rising costs is disease management. What is disease management and how effective is it as a cost-containment strategy?

Woolhandler: Disease management is one of these concepts that at some times and in some contexts is a great idea. But it has been transformed and reworked into something that is probably not a very good idea.

We have a lot of evidence that in a nonprofit setting, where the goal of the organization is to provide better care, if you use a team approach with social workers and nurses actively planning and scheduling and managing the care, particularly with chronic illnesses, patients will get better care. For instance, if a nurse is assigned to a diabetic patient, to assist in the teaching, to call them every couple of weeks to find out how their blood sugar is doing, to answer their questions — we know in a nonprofit setting that results in better quality of care. Similarly, there is very good evidence that, again in a nonprofit setting, having a nurse call patients with severe heart failure on a frequent basis and asking them if they are retaining fluids, or having breathing problems — so that they are intervening early — can help people avoid having to come into the hospital so often. That’s the nonprofit, patient-centered idea of disease management.

What happened is for-profit companies took that information and said, Ć¢ā‚¬Å“Why don’t we change this into a for-profit business? We’ll hire some nurse managers to call up the patients, call up the doctors and see if we can make money.Ć¢ā‚¬Ā It turns out that the for-profit businesses didn’t save any money. It isn’t clear that they improved the quality of care, either.

We know they didn’t save any money because Medicare got the idea that they were going to try disease management. Medicare recruited some for-profit companies to enroll Medicare patients. After many months of trying, it became clear that these for-profit disease management companies could not deliver financial savings.

I’m all for using teams — nurses, doctors, social workers, community people — to try and improve care of patients. I’m all for scheduling and planning care of people with complex diseases. But that is very different from what these for-profit companies are talking about — which is something that probably doesn’t do any good for the patients and clearly doesn’t save any money.

MM: John McCain’s health plan has three parts: one is individual options so individuals have more ways to buy health insurance; second, consideration would be given to a state plan of pool coverage for people who otherwise couldn’t get insurance; third, he would do various things to control costs. How well would that set of policies address current problems?

Woolhandler: The policy of allowing individuals to shop around is really worthless. Individuals try to shop around now. The problem is, if you have an illness like diabetes, you can’t get private insurance at an affordable price. And being able to choose between three private plans, or six private plans, is not going to reduce the price of your insurance. That idea has nothing to do with actually improving access to care.

The second issue deals with high-risk pools, where a person with diabetes who couldn’t get private insurance might be able to go to a high-risk pool. There is substantial experience at the state level with high-risk pools and they haven’t worked very well. They are very expensive and require either huge taxpayer subsidies or very high premiums. Most of the high-risk pools have had to put caps on the number of people enrolled because the costs are so high. The states’ experience with high-risk pools suggests that they don’t solve this problem.

We recently released a study where we found that nearly a third of all uninsured people have a chronic illness. So we’re talking about a situation where a really large share of all uninsured people in the United States might be too high a risk to qualify for routine purchase of insurance and might need to use some sort of high-risk pool if we went in that direction.

I don’t think McCain has proposed anything that is a meaningful cost control. There’s just no evidence that there is any cost control in disease management.

The emphasis on information technology is similar in some ways to disease management. That is, in the right setting, with the right leadership, information technology can improve care. But no one has ever proven that information technology reduces the cost of care, with one small exception. In Indiana, where there was a really good nonprofit system, with really good leadership, they did see a small decrease in the use of lab tests. In all the studies that have been done, that was the only place where there was any evidence of cost savings. There are other studies that have looked and found no evidence of cost savings with information technology. That doesn’t mean we shouldn’t do it. In the right setting, it might help us improve care, but there are no cost savings available.

Everyone likes to talk about disease management and information technology because they look like easy ways to save money. They don’t save money, and we need to get rid of the idea that we can save money through information technology and disease management.

MM: Obama says similar things on cost control, but the much more prominent piece of his proposal is for expanding coverage. How would he go about doing that and why have you been critical of it?

Woolhandler: Obama has said that he will mandate that children get coverage, that he will mandate that parents go out and buy coverage for the children. Obama has also talked about expanding Medicaid and similar programs which have been cut back under the Bush administration. And certainly Medicaid for poor people is better than nothing. But we’ve seen over the last decade numerous attempts to reduce the number of uninsured people by expanding Medicaid and that effort has really been unsuccessful.

He is not planning to do a mandate on anyone other than children. That was part of Hillary Clinton’s proposal, but Obama is not pushing the individual mandate, I think correctly. I think individual mandates are actually a terrible idea.

He also talks about making available a Medicare-like program that people could buy their way into. I guess for poor people it would resemble Medicaid. More affluent people would be able to buy their way in.

There’s no reason to think that would work. I think the private health insurance industry is not going to allow the government to run a program that really competes with them. That’s not just my opinion. If we look historically, when state governments have tried to run public programs side-by-side with private programs, the private health insurance industry has intervened to make sure that the public program is very low quality, with very limited coverage, because the private insurance industry doesn’t want the competition.

I think Obama would like to have a very good public program that would be better than the private programs and out-compete them. But experience has shown that the private health insurance industry won’t let you do that.

MM: By contrast, many supporters of the Obama plan say that this is the best that can be achieved given the political power of the private health insurance industry.

Woolhandler: What they are really saying is that it’s politically feasible, which may or may not be true. The problem is it’s not economically feasible. If you try to get to universal coverage, but leave the private health insurance industry in the middle, it’s incredibly expensive. You have to pour lots of money into the system and it becomes prohibitively expensive to cover everyone.

A key reason is that the private health insurance industry imposes massive administrative costs on the healthcare system. Administrative costs in U.S. healthcare are about 31 percent of total health spending. In nations with single payer national health insurance, the overhead costs are about 16.5 percent of spending. The possible administrative savings in going from a multipayer system to a single payer system are about $350 billion annually. That means that by going from the current multipayer, private insurance-dominated system to a nonprofit single-payer system, you have a built-in cost savings of about $350 billion.

We don’t believe you should take this out of the health system. We think you should take this $350 billion in money saved from paperwork costs and use that to cover the uninsured and improve coverage for people who only have partial coverage. The single payer system lets you expand coverage without expanding spending.

The type of plan that Obama is proposing is very similar to plans that have passed and been partially implemented at the state level, only to fail because they are too expensive to continue. The Obama plan is going to have exactly that problem. That is, when you go to implement this program, you’re left with the wasteful private health insurance industry in place. You try to add new coverage and you’re going to end up adding billions and billions in costs and it’s no longer economically feasible.

What people are really saying is, we’re going for political feasibility with the Obama plan, but we’re completely abandoning economic feasibility. I just don’t think that that can happen in the long run. The United States should not be spending any more than we’re already spending on healthcare. We spend plenty, we just need to be spending that money more wisely.

MM: Do you think that weakness would prevent that plan from being enacted in the first place or would you expect it instead to collapse some time after implementation?

Woolhandler: Historically at the state level, plans have passed, usually during an economic boom time. The states come up with a complicated plan that involves a lot of new government spending, put a whole lot more money into the healthcare system, adapt some sort of temporary expansions of Medicaid coverage, but over a year or two things collapse because the price is too high and it’s not sustainable economically. As soon as the next recession hits, the states say, Ć¢ā‚¬Å“This is so expensive, we can’t possibly keep subsidizing these public plans; we can’t enforce employer mandates or individual mandates because employers or individuals can’t afford this.Ć¢ā‚¬Ā When the recession hits, the plans have been rescinded.

That has happened over and over.

That happened in Massachusetts in 1998. We had both an employer and individual mandate along with Medicaid expansion. It happened in Oregon, Tennessee and Minnesota in 1992. It happened in Washington State in 1993. And I think we’re seeing the beginning of the same dynamic with the 2006 Massachusetts law.

At a federal level, would it pass and then collapse, or would it collapse before passing? I don’t know. But I do know that the plan that Obama is proposing is simply not economically feasible. The only mechanism he has for getting more coverage is pouring more money in, and the cost containment things he’s suggesting are really laughable.

MM: If single payer faces the serious political obstacles that come from calling for wiping out the private health insurance system, are there incremental things that can be done to take us in that direction?

Woolhandler: The only incremental thing that one can do that makes any sense at all would be placing all hospital care into a single payer system as a first step, and then later placing other types of care into a single payer system. That’s what happened in Saskatchewan. They initially enacted a single payer system that covered all the hospitals and then a few years later enacted a single payer system that covered everything.

That will work, because if you do the whole sector at a time, you can get the administrative savings. The thing that won’t work is a patch here, a patch there, because you don’t get any of the administrative savings.

MM: What about expanding Medicare to cover other age groups — down to age 55, say, or all children?

Woolhandler: Medicare by age group would be a much better idea than most of the rest of what’s on the table right now. It would be an expansion of a public program that’s not perfect, but it’s administratively efficient and fair in the way that it covers people. But it’s not really on the table right now.

AS I SEE IT: Health-care system needs more primary-care physicians

By Josh Freeman, MD
Kansas City Star
Monday, Nov 10, 2008

National discussions about which system of universal health coverage — and yes, we need a system of universal health coverage — will be the best to adopt often miss the point. The goal is not simply to “cover everyone,” but to provide universal access to high-quality, cost-effective care.

We need health professionals to practice in the right locations and a payment system that reimburses for providing the care we want and need. We now have too few primary care physicians and not enough physicians practicing in rural and underserved urban areas. And the situation is getting worse.

The Journal of the American Medical Association recently reported that only 2 percent of senior medical students planned careers in general internal medicine. It is one of three specialties providing primary care; the other two are general pediatrics and family medicine. The number of students entering all types of primary care training is dropping rapidly. Because family medicine residencies are having more difficulty finding U.S. graduates to enter that specialty, half are currently international graduates.

These trends create tremendous problems. Massachusetts has too few primary care doctors to see all the people now insured under its new health plan. Many studies have demonstrated that health systems built around primary care provide higher quality care at lower cost. The Commonwealth Fund’s recent “health scorecard” shows the U.S. scores very poorly, and our worst score is for “efficiency,” the area where primary care has the greatest impact.

The main reason for the precipitous drop in primary care doctors is that they earn much less than sub-specialists. Students deep in debt are choosing higher-paid specialties. We need to pay primary care doctors more and pay them for what we want them to do: provide us a medical home and manage our health care. This can be done by a change in Medicare policy, because most payers base their reimbursement on Medicare. Students would choose specialties based on what kind of doctors they wanted to be, not salary expectations. We would begin to produce the primary care physicians we need. This can happen. For our health, and our pocketbooks, it has to happen.

How Universal Health Care Changes Everything

By Sara Robinson
Campaign for America’s Future
October 28th, 2008

With one fell stroke, giving Americans universal access to health care will undermine some of the deepest and most persistent myths of the conservative worldview.

We’ve worked hard to build a progressive political juggernaut that will, God willing and the creek don’t rise, put us in control of both Congress and the Executive Branch starting just a week from now.

But it’s one thing to get power, and another thing to keep it.

Someone (OK, it was Rick Perlstein) recently asked a group of friends to name the single most important policy step progressives could take to solidify a long-term grip on the government — the kind of extended run we had from 1932 through to the Age of Reagan.

There were a lot of good answers. Ending privatization was, I thought, the best answer of all. Reinvesting in education is important if we want to ensure that the next generation will support and sustain our work and values. (I like to joke that the reason they call it “liberal education” is that the more of it you have, the more liberal you’re likely to be. It’s not quite accurate, but it’s true enough.) Ensuring that people’s interactions with government are useful and positive was another: In a lot of states, one afternoon at the DMV is enough to make the most ardent good-government partisan turn into Grover Norquist. (Maybe we don’t want to drag the whole government into the bathtub to drown it, but that SOB at Window 11 would be a fine place to start.)

But in the end, I settled on “provide universal health care–preferably single-payer” as my final answer. I chose this not just because health care is an important public good (though it is), but because I’m convinced that this single step will do more to rapidly and permanently undermine the conservative worldview than anything else we could possibly do.

How Universal Care Changes Everything: The Canadian Example

I’ve seen this happen, at very close range. Over the course of nearly five years living in Canada, I’ve been continually impressed by the durable, far-reaching role universal health care plays in expressing and reinforcing the entire country’s political philosophy. It’s probably not overstating things to say that the health care system is at the very core of the Canadian sense of national identity, right up there with the Mounties and the Hudson’s Bay Company and well above the Queen. Every time my neighbors go to the doctor, the experience reaffirms a set of cultural assumptions that, over time, have made and kept the country unwaveringly progressive.

First, they’re reminded that taking care of each other is a core Canadian value–a cherished piece of who they are. In the Harper era, the conservatives up here have tried hard to sell American-style rugged individualism and the belief that “you’re on your own” (or should be), beholden to no one, needing no one. Most Canadians reject this as a peculiar form of insanity: Their interdependence is so patently obvious to them that it’s like denying the existence of gravity. They’re so proud of their health care system–and what it says about them as a nation–that, when asked to name the greatest Canadian in history a few years ago, they chose Tommy Douglas, the provincial premier (governor) from Saskatchewan who was the father of the first single-payer plan.

Second, they’re reminded that their government does useful and important things that add immensely to their quality of life, and thus deserves their ongoing support. And their high hopes also lead to high expectations. They not only expect a lot from their health care system; they also expect that their police will be respectful and law-abiding, their city parks will be well-tended; and their public buildings will be beautiful. If it takes money to make that happen, they’ll spend it–but those who’ve been trusted with it had better be damned careful. Where Americans believe in “life, liberty, and the pursuit of happiness,” the Canadian Constitution calls for “peace, order, and good government.” And that set of aspirations is reinforced every time they walk into a doctor’s office and get the treatment they need.

Third, they’re reminded that certain rights are inalienable, and certain levels of inequality are intolerable–and that every Canadian has an intrinsic and equal entitlement to shelter, food, education, and health care. In the conservative era, America’s hypercompetitive society has been very quick to throw away people who haven’t made the cut in some way–people without money, connections, or education; people with disabilities that make them economically less viable; people who come from the wrong racial or religious group or the wrong part of the country. You only deserve what you, personally, are capable of earning. If you’re badly equipped to do that, it’s your own damned fault. If you can’t afford health care, you deserve to die. In no case is it the taxpayers’ job to step in and make it right.

That attitude is completely foreign up here. It’s notoriously hard for immigrants to find good jobs here, but even immigrants get health care. There’s a heroin problem in downtown Vancouver, but even junkies get health care. You don’t lose your insurance just because you got sick, or got disabled, or had to quit your job; even the unemployed get health care.

Nobody falls through the cracks, no matter what condition their condition is in. Nobody is chained to a job they hate because they can’t afford to lose their health care. Nobody has to pass up the chance to go back to school, or take a year abroad, or stay home with their kids. Nobody hesitates before starting their own business, either. The result is a healthier, more skilled, better-traveled, more fulfilled, more entrepreneurial and ultimately more competitive workforce.

A lot of Americans seem downright threatened by the idea that everybody deserves the same level of health care, delivered by the same doctors. It sounds like wild-eyed socialist ranting (all this crazy talk of “rights”!). For Canadians, though, that right is such a basic assumption that it’s not even up for discussion. A civilized country does not turn any of its citizens away from the table. And that idea, once set, opens up a broader sense of what we owe each other. Health care is the social contract in daily action. Ultimately, having that contract reaffirmed so intimately and so often affects how my neighbors do business, how they treat the environment, and how they relate to the rest of the world. The effects of this affirmation ripple out into everything Canada touches.

Which brings us to the last observation: sharing a common health care system reminds Canadians that they’re all in this together. From the richest to the poorest, everyone arrives and dies in the same hospitals, tended by the same doctors. It’s in nobody’s interest to let that system fail. (Prairie folks — Canada’s version of Midwesterners — will tell you that the northern climate extremes also encourage people to look out for each other. And that makes some sense, too: denying help to neighbors and strangers during the winter in places like Edmonton or Winnipeg can all too easily become an act of negligent homicide. In extreme conditions, free access to good hospitals becomes a critical piece of that caretaking.)

The upper classes occasionally try to introduce privatization options in one province or another; but the citizens/patients, the government, and the health care unions have usually brought tremendous pressure to bear to limit or end these experiments. Everybody understands that if the wealthy bail on the system, there won’t be the political will to keep the quality high. This conversation is ongoing–and the very fact that they keep having it also helps keep the symbolic importance of the system front and center. Everybody understands very clearly what’s at stake.

How Guaranteed Health Care Could Change America

If we could get Americans thinking along similar lines, all manner of impossible things will become possible. With one fell stroke, providing universal access to health care will instantly undermine some of the deepest and most persistent myths of the conservative worldview. People will, very quickly, remember that we cannot function as a democracy unless we’re deeply invested in common wealth and a common future–that “you’re on your own” is simply a conservative lie that allows the rich to divide and conquer. We’ll be startled at first to see just how much a single well-run government program can actually deliver–and then, as our confidence grows, we’ll start expecting more of other government efforts, and become more willing to experiment with other kinds of programs. It’s quite likely we’ll start asking hard questions about programs that divert taxpayers’ money away from these essential goods, and re-prioritize our spending. Thrown together into a shared health care system, we may even learn some compassion for each other, and start to heal some of the deep social and political rifts that have divided us for so long.

If it works in the U.S. half as well as it does in Canada, the conservatives will be forced to give up on all those plans for that big 2012 comeback they’re so eagerly anticipating right now. With roughly a third of the country either uninsured or under-insured; and everybody else at risk of losing their coverage at a moment’s notice, the sheer relief at having that burden lifted from 300 million souls is going to make the old conservative nostrums sound absolutely insane. Anybody who suggests that there’s something wrong with universal care, or that it was better the old way, or that this is that Pure Communist Evil they’ve been warning about since the days of McCarthy, is going to be dismissed out of hand as an ideological crank. Because only people who buy their Kool-Aid by the barrel could even think about going back to the awful way things were in 2008.

It’s all happened just this way before, of course. Social Security did all these same things in its time. It shut up the economic royalists and reintroduced Americans to the value of social contracts and a belief in the common good. Americans accepted these ideas so completely that liberals were able to seize control of the country’s political discourse, and dominate it for the next four decades. On most issues, the conservatives had no choice but to follow their lead.

Unfortunately, though, all this happened over 70 years ago–so far in the past that most Americans can’t even imagine what life was like before we had a guaranteed retirement income. We take that much too much for granted now. Creating a long-term 21st-century progressive renaissance depends on our ability to bring these same lessons home to a whole new generation in the most vivid and unforgettable way possible. Guaranteed health care will do that. It has the potential to become the catalyst for a new season of American progressivism that could last another 40 years.

This notion is no secret to conservatives, who figured out 15 years ago that universal health coverage could well become their undoing. In the heat of the 1993 debate over the proposed Clinton health care plan, Bill Kristol wrote a famous strategy memo in which he argued that “passage of the Clinton health care plan in any form would be disastrous. It would guarantee an unprecedented federal intrusion into the American economy. Its success would signal the rebirth of centralized welfare-state policy at the very moment that such policy is being perceived as a failure in other areas.”

Conservatives are already acutely aware that if we get health care that works, they’re going to be shut out of power and out of the conversation for decades to come. They also know that, come January, they may find themselves too weak to put up a fight.

Presidential candidate Barack Obama knows it, too, which is why he’s made universal health care a central part of his agenda. If he succeeds, I think people are going to be surprised at the depth and speed of the resulting leftward shift in American values. Seeing the government deliver such an essential and powerful good to so many people will permanently discredit many of the most fundamental assumptions of the conservative worldview–and in doing so, will make it much, much harder for the cons to ever make themselves politically relevant again.

There’s nothing else that will do so much for so many so quickly–and, at the same time, lay down the sturdy foundation for a long, strong progressive future.

Uwe Reinhardt explains family health care costs

The Health Care Challenge: Sailing Into a Perfect Storm

By Uwe E. Reinhardt
The New York Times
November 7, 2008
Even if the financial markets had not gone into a tailspin and the economy had not slouched toward a prolonged recession, non-elderly Americans in lower-middle-income families — those with family incomes between $20,000 and $60,000 — would have sailed into a perfect storm brewing in health care. Roughly one-third of American households fall into that category.
Consider a family headed by two income earners each with a gross wage base of $30,000. One might be a taxi driver, and the other a sales clerk in a department store or at, say, Home Depot.
By “gross wage base” is meant here the sum of all of the debits that an employer makes to the account “Payroll Expense” for an employee. It includes the employee’s cash take-home pay, all the income taxes and Social Security taxes and other deductions — for example, the employee’s contributions towards health insurance and pensions — withheld from the employee’s paycheck, as well as the employer’s share of Social Security taxes and the employer’s contributions toward the employee’s health insurance, pension, vacation pay, sick days and so on. It is a sum that supports all taxes paid by or on behalf of the employee and all fringe benefits earned by the employee, whether formally paid by the employer or taken out of the employee’s paycheck.
It follows from this definition of gross wage base that it must support all of the health expenditures made by or on behalf of the family in a given year — that is, the employer’s contribution to premiums for the employee’s health insurance, the employee’s own contribution and the employee’s out-of-pocket health spending.
According to the Milliman Medical Index, this total health spending figure for a typical non-elderly American family of four had reached an average of $15,600 by 2008. It had grown at an average compound growth rate of about 8.6 percent from $11,192 in 2004.
To return to our family with an assumed gross wage base of $60,000: If that gross wage base grew by, say, 3 percent per year over the next decade, to $80,600 by 2017, while total family health spending grew by, say, 8 percent per year over the same time frame, to $33,700 by 2017, then about 41 percent of the family’s gross wage base would be taken up by health care alone, before any deductions for taxes or fringe benefits. If the wage base grew by 4 percent, health spending still would absorb about a third of the family gross wage base.
These numbers, which are realistic, suggest that before long the gross wage base earned by American households will become too small a donkey to carry the load of the family’s spending on health care. It will put before Americans an uncomfortable choice.
Either Americans in the higher income strata must step up to the cashier’s window to help subsidize, with higher income taxes, the health care of the most hard-working members of the lower income classes, or the United States will have to evolve toward a noticeable two-tiered or multi-tiered health care system, with bare-bones, low-tech health care for families in the bottom half of the income distribution and increasingly superior, high-tech health care for families in the upper-income strata.
It is one of the several unpleasant trade-offs facing President-elect Barack Obama.
http://economix.blogs.nytimes.com/2008/11/07/the-health-care-challenge-sailing-into-a-perfect-storm/?hp

And…

2008 Milliman Medical Index

The total medical cost in 2008 for a typical family of four is $15,609.
http://www.milliman.com/expertise/healthcare/products-tools/mmi/pdfs/milliman-medical-index-2008.pdf

If we are truly serious about establishing an affordable system that would provide all necessary care for everyone, we have to seriously look at the Milliman Medical Index numbers. We are already spending an average of $15,609 for a family of four, with a typical family income of maybe $60,000. Those numbers no longer compute.
If we include everyone, how should we pay this bill? Should we attempt to continue with an administratively wasteful and inequitable system of private health plans with unaffordable premiums? Or should we adopt an efficient and equitable single payer national health program.
Regardless, if we want everyone to have the health care that they should have, higher income individuals must help pay for the care of those with modest incomes, as Uwe Reinhardt explains.
If we used private health plans, we would have to depend on an unstable and administratively burdensome system of sliding scale subsidies to help pay these high premiums (tax credits, vouchers, employer and/or individual indexed mandates, etc.).
If we established a single payer national health program, it would be simple to finance it with an equitable, stable and administratively efficient system of progressive taxes.
$15,000 means a lot to a great many of us and forces us to make choices that we shouldn’t have to make. For the wealthy, the progressive tax that they would pay would not force them into any difficult choices at all. It would merely be reflected in some numbers that would appear in the forms provided by the accountant. The emotional trauma of being exposed to some numbers on a sheet of paper is not a very big price for them to pay.

Uwe Reinhardt explains family health care costs

The Health Care Challenge: Sailing Into a Perfect Storm

By Uwe E. Reinhardt
The New York Times
November 7, 2008

Even if the financial markets had not gone into a tailspin and the economy had not slouched toward a prolonged recession, non-elderly Americans in lower-middle-income families — those with family incomes between $20,000 and $60,000 — would have sailed into a perfect storm brewing in health care. Roughly one-third of American households fall into that category.

Consider a family headed by two income earners each with a gross wage base of $30,000. One might be a taxi driver, and the other a sales clerk in a department store or at, say, Home Depot.

By “gross wage base” is meant here the sum of all of the debits that an employer makes to the account “Payroll Expense” for an employee. It includes the employee’s cash take-home pay, all the income taxes and Social Security taxes and other deductions — for example, the employee’s contributions towards health insurance and pensions — withheld from the employee’s paycheck, as well as the employer’s share of Social Security taxes and the employer’s contributions toward the employee’s health insurance, pension, vacation pay, sick days and so on. It is a sum that supports all taxes paid by or on behalf of the employee and all fringe benefits earned by the employee, whether formally paid by the employer or taken out of the employee’s paycheck.

It follows from this definition of gross wage base that it must support all of the health expenditures made by or on behalf of the family in a given year — that is, the employer’s contribution to premiums for the employee’s health insurance, the employee’s own contribution and the employee’s out-of-pocket health spending.

According to the Milliman Medical Index, this total health spending figure for a typical non-elderly American family of four had reached an average of $15,600 by 2008. It had grown at an average compound growth rate of about 8.6 percent from $11,192 in 2004.

To return to our family with an assumed gross wage base of $60,000: If that gross wage base grew by, say, 3 percent per year over the next decade, to $80,600 by 2017, while total family health spending grew by, say, 8 percent per year over the same time frame, to $33,700 by 2017, then about 41 percent of the family’s gross wage base would be taken up by health care alone, before any deductions for taxes or fringe benefits. If the wage base grew by 4 percent, health spending still would absorb about a third of the family gross wage base.

These numbers, which are realistic, suggest that before long the gross wage base earned by American households will become too small a donkey to carry the load of the family’s spending on health care. It will put before Americans an uncomfortable choice.

Either Americans in the higher income strata must step up to the cashier’s window to help subsidize, with higher income taxes, the health care of the most hard-working members of the lower income classes, or the United States will have to evolve toward a noticeable two-tiered or multi-tiered health care system, with bare-bones, low-tech health care for families in the bottom half of the income distribution and increasingly superior, high-tech health care for families in the upper-income strata.

It is one of the several unpleasant trade-offs facing President-elect Barack Obama.

http://economix.blogs.nytimes.com/2008/11/07/the-health-care-challenge-sailing-into-a-perfect-storm/?hp

And…

2008 Milliman Medical Index

The total medical cost in 2008 for a typical family of four is $15,609.

http://www.milliman.com/expertise/healthcare/products-tools/mmi/pdfs/milliman-medical-index-2008.pdf

Comment:

By Don McCanne, MD

If we are truly serious about establishing an affordable system that would provide all necessary care for everyone, we have to seriously look at the Milliman Medical Index numbers. We are already spending an average of $15,609 for a family of four, with a typical family income of maybe $60,000. Those numbers no longer compute.

If we include everyone, how should we pay this bill? Should we attempt to continue with an administratively wasteful and inequitable system of private health plans with unaffordable premiums? Or should we adopt an efficient and equitable single payer national health program.

Regardless, if we want everyone to have the health care that they should have, higher income individuals must help pay for the care of those with modest incomes, as Uwe Reinhardt explains.

If we used private health plans, we would have to depend on an unstable and administratively burdensome system of sliding scale subsidies to help pay these high premiums (tax credits, vouchers, employer and/or individual indexed mandates, etc.).

If we established a single payer national health program, it would be simple to finance it with an equitable, stable and administratively efficient system of progressive taxes.

$15,000 means a lot to a great many of us and forces us to make choices that we shouldn’t have to make. For the wealthy, the progressive tax that they would pay would not force them into any difficult choices at all. It would merely be reflected in some numbers that would appear in the forms provided by the accountant. The emotional trauma of being exposed to some numbers on a sheet of paper is not a very big price for them to pay.

AMA's Heal that Claim Month

AMA wants physicians to stake a claim for accurate insurer payments this fall

AMA
October 29, 2008
As part of its national campaign to save the health system billions of dollars by improving the accuracy and efficiency of medical claims processing, the American Medical Association (AMA) today announced it has selected November for the first national Heal that Claim Month.
Many physician practices often experience an increase in claim denials from health insurers during the last quarter of the year, making November an ideal time to appeal inappropriately underpaid and denied claims. An estimated 90 percent of claim denials are preventable and 67 percent of denials are recoverable, according to the Advisory Board Company, a Washington-based research organization. Based on those estimates, physicians collectively lose billions of dollars a year of revenue to health insurers.
Heal that Claim Month is part of the AMA’s ongoing Heal the Claims Process campaign, which launched last June with the unveiling of the AMA’s first National Health Insurer Report Card, an objective comparison of the nation’s largest health insurers and their claims processing performance.
http://www.ama-assn.org/ama/pub/category/20209.html

And…

2008 National Health Insurer Report Card

AMA
Contracted payment rate adherence
On what percentage of records does the payer’s allowed amount equal the contracted payment rate?
Aetna – 70.78%
Anthem – 72.14%
CIGNA – 66.23%
Coventry – 86.74%
Health Net – not reported
Humana – 84.20%
UHC – 61.55%
Medicare – 98.12%
http://www.ama-assn.org/ama1/pub/upload/mm/368/reportcard.pdf

And…

Appeal that Claim

AMA
When a physician practice assumes that the reimbursement it receives from health insurers is always accurate, the practice may lose revenue. Even when a practice codes claims correctly, health insurers may still inappropriately deny, delay or significantly reduce payments. By implementing claims auditing processes, you can ensure that health insurers pay your practice appropriately for your physician procedures and services.
Step 1: Determine who will be responsible for auditing health insurer payments
Step 2: Collect recommended health insurer auditing resources
Step 3: Run monthly collection reports
Step 4: Review the health insurer explanation of benefits (EOB)/remittance advice (RA) on each claim identified on the collection report
Step 5: Identify the health insurer basis for the denied, delayed or partially paid claim
Step 6: Gather supporting documentation to corroborate reversal of the health insurer’s determination through the claims appeals process
Step 7: Develop a claim appeal letter and resubmit the claim to the health insurer
Step 8: Maintain a health insurer follow-up log
Step 9: Hold claims processing and review meetings
Step 10: Continue to appeal inappropriately denied, delayed or partially paid claims
Appeal that Claim (65 pages):
http://www.ama-assn.org/ama1/pub/upload/mm/368/appeal-that-claim.pdf

The AMA has selected November as the first national Heal that Claim Month. The problems that this addresses must be fairly significant if they are going to declare a special month to address them; so what are these problems?
The U.S. health care financing system is infamous for its profound administrative waste. Some of it is due to the fragmented system of a great multitude of private payers plus public programs with various rules and regulations which increase the complexity of the billing process. Besides the administrative costs of the insurers, which is typically about 18 percent of their premiums (i.e., medical loss ratio of 82 percent), the administrative burden that this system places on physicians and hospitals consumes about another 12 percent of the insurance premiums.
These numbers refer to the routine of claims preparation and processing. But the 2008 National Health Insurer Report Card demonstrates that the nefarious behavior of the private insurers has compounded the complexity by reimbursing at rates significantly below those that were established in contracts with the physicians.
The private insurers are cheating, and they depend on physicians being overwhelmed by this administrative burden to not get caught in their evil deeds. This goes far beyond the complex routine of private insurance administrative processes. This is racketeering.
In the ultimate of ironies, the AMA has responded with an additional, complex, burdensome administrative process to ferret out the private insurers that cheat (which is all of them!), so that they can demand reimbursement at rates that the insurers contractually agreed to. Understanding the element that they are dealing with, the final step recommended is to continue to assert compliance with these contracts agreed to by these recalcitrant crooks.
So what is the AMA recommendation for reforming this horrendous, highly wasteful system? More of it! They want to expand the market of private health plans and use our tax funds to provide credits for purchasing these plans.
The AMA should take a closer look at their own National Health Insurer Report Card. All of the private insurers are crooks, but our own public insurer, Medicare, has over a 98 percent compliance with contracted rates. Just imagine if Medicare were the only payer. The ease and transparency of the process would likely result in 99.99 percent compliance.
Instead of wasting more time and resources on a Heal that Claim Month, we need to proclaim January 2009 as a New and Improved Medicare for All Month!

AMA's Heal that Claim Month

AMA wants physicians to stake a claim for accurate insurer payments this fall

AMA
October 29, 2008

As part of its national campaign to save the health system billions of dollars by improving the accuracy and efficiency of medical claims processing, the American Medical Association (AMA) today announced it has selected November for the first national Heal that Claim Month.

Many physician practices often experience an increase in claim denials from health insurers during the last quarter of the year, making November an ideal time to appeal inappropriately underpaid and denied claims. An estimated 90 percent of claim denials are preventable and 67 percent of denials are recoverable, according to the Advisory Board Company, a Washington-based research organization. Based on those estimates, physicians collectively lose billions of dollars a year of revenue to health insurers.

Heal that Claim Month is part of the AMA’s ongoing Heal the Claims Process campaign, which launched last June with the unveiling of the AMA’s first National Health Insurer Report Card, an objective comparison of the nation’s largest health insurers and their claims processing performance.

http://www.ama-assn.org/ama/pub/category/20209.html

And…

2008 National Health Insurer Report Card

AMA

Contracted payment rate adherence

On what percentage of records does the payer’s allowed amount equal the contracted payment rate?

Aetna – 70.78%
Anthem – 72.14%
CIGNA – 66.23%
Coventry – 86.74%
Health Net – not reported
Humana – 84.20%
UHC – 61.55%
Medicare – 98.12%

http://www.ama-assn.org/ama1/pub/upload/mm/368/reportcard.pdf

And…

Appeal that Claim

AMA

When a physician practice assumes that the reimbursement it receives from health insurers is always accurate, the practice may lose revenue. Even when a practice codes claims correctly, health insurers may still inappropriately deny, delay or significantly reduce payments. By implementing claims auditing processes, you can ensure that health insurers pay your practice appropriately for your physician procedures and services.

Step 1: Determine who will be responsible for auditing health insurer payments

Step 2: Collect recommended health insurer auditing resources

Step 3: Run monthly collection reports

Step 4: Review the health insurer explanation of benefits (EOB)/remittance advice (RA) on each claim identified on the collection report

Step 5: Identify the health insurer basis for the denied, delayed or partially paid claim

Step 6: Gather supporting documentation to corroborate reversal of the health insurer’s determination through the claims appeals process

Step 7: Develop a claim appeal letter and resubmit the claim to the health insurer

Step 8: Maintain a health insurer follow-up log

Step 9: Hold claims processing and review meetings

Step 10: Continue to appeal inappropriately denied, delayed or partially paid claims

Appeal that Claim (65 pages):
http://www.ama-assn.org/ama1/pub/upload/mm/368/appeal-that-claim.pdf

Comment:

By Don McCanne, MD

The AMA has selected November as the first national Heal that Claim Month. The problems that this addresses must be fairly significant if they are going to declare a special month to address them; so what are these problems?

The U.S. health care financing system is infamous for its profound administrative waste. Some of it is due to the fragmented system of a great multitude of private payers plus public programs with various rules and regulations which increase the complexity of the billing process. Besides the administrative costs of the insurers, which is typically about 18 percent of their premiums (i.e., medical loss ratio of 82 percent), the administrative burden that this system places on physicians and hospitals consumes about another 12 percent of the insurance premiums.

These numbers refer to the routine of claims preparation and processing. But the 2008 National Health Insurer Report Card demonstrates that the nefarious behavior of the private insurers has compounded the complexity by reimbursing at rates significantly below those that were established in contracts with the physicians.

The private insurers are cheating, and they depend on physicians being overwhelmed by this administrative burden to not get caught in their evil deeds. This goes far beyond the complex routine of private insurance administrative processes. This is racketeering.

In the ultimate of ironies, the AMA has responded with an additional, complex, burdensome administrative process to ferret out the private insurers that cheat (which is all of them!), so that they can demand reimbursement at rates that the insurers contractually agreed to. Understanding the element that they are dealing with, the final step recommended is to continue to assert compliance with these contracts agreed to by these recalcitrant crooks.

So what is the AMA recommendation for reforming this horrendous, highly wasteful system? More of it! They want to expand the market of private health plans and use our tax funds to provide credits for purchasing these plans.

The AMA should take a closer look at their own National Health Insurer Report Card. All of the private insurers are crooks, but our own public insurer, Medicare, has over a 98 percent compliance with contracted rates. Just imagine if Medicare were the only payer. The ease and transparency of the process would likely result in 99.99 percent compliance.

Instead of wasting more time and resources on a Heal that Claim Month, we need to proclaim January 2009 as a New and Improved Medicare for All Month!

AMA’s Heal that Claim Month

AMA wants physicians to stake a claim for accurate insurer payments this fall

AMA
October 29, 2008

As part of its national campaign to save the health system billions of dollars by improving the accuracy and efficiency of medical claims processing, the American Medical Association (AMA) today announced it has selected November for the first national Heal that Claim Month.

Many physician practices often experience an increase in claim denials from health insurers during the last quarter of the year, making November an ideal time to appeal inappropriately underpaid and denied claims. An estimated 90 percent of claim denials are preventable and 67 percent of denials are recoverable, according to the Advisory Board Company, a Washington-based research organization. Based on those estimates, physicians collectively lose billions of dollars a year of revenue to health insurers.

Heal that Claim Month is part of the AMA’s ongoing Heal the Claims Process campaign, which launched last June with the unveiling of the AMA’s first National Health Insurer Report Card, an objective comparison of the nation’s largest health insurers and their claims processing performance.

http://www.ama-assn.org/ama/pub/category/20209.html

And…

2008 National Health Insurer Report Card

AMA

Contracted payment rate adherence

On what percentage of records does the payer’s allowed amount equal the contracted payment rate?

Aetna – 70.78%
Anthem – 72.14%
CIGNA – 66.23%
Coventry – 86.74%
Health Net – not reported
Humana – 84.20%
UHC – 61.55%
Medicare – 98.12%

http://www.ama-assn.org/ama1/pub/upload/mm/368/reportcard.pdf

And…

Appeal that Claim

AMA

When a physician practice assumes that the reimbursement it receives from health insurers is always accurate, the practice may lose revenue. Even when a practice codes claims correctly, health insurers may still inappropriately deny, delay or significantly reduce payments. By implementing claims auditing processes, you can ensure that health insurers pay your practice appropriately for your physician procedures and services.

Step 1: Determine who will be responsible for auditing health insurer payments

Step 2: Collect recommended health insurer auditing resources

Step 3: Run monthly collection reports

Step 4: Review the health insurer explanation of benefits (EOB)/remittance advice (RA) on each claim identified on the collection report

Step 5: Identify the health insurer basis for the denied, delayed or partially paid claim

Step 6: Gather supporting documentation to corroborate reversal of the health insurer’s determination through the claims appeals process

Step 7: Develop a claim appeal letter and resubmit the claim to the health insurer

Step 8: Maintain a health insurer follow-up log

Step 9: Hold claims processing and review meetings

Step 10: Continue to appeal inappropriately denied, delayed or partially paid claims

Appeal that Claim (65 pages):
http://www.ama-assn.org/ama1/pub/upload/mm/368/appeal-that-claim.pdf

Comment:

By Don McCanne, MD

The AMA has selected November as the first national Heal that Claim Month. The problems that this addresses must be fairly significant if they are going to declare a special month to address them; so what are these problems?

The U.S. health care financing system is infamous for its profound administrative waste. Some of it is due to the fragmented system of a great multitude of private payers plus public programs with various rules and regulations which increase the complexity of the billing process. Besides the administrative costs of the insurers, which is typically about 18 percent of their premiums (i.e., medical loss ratio of 82 percent), the administrative burden that this system places on physicians and hospitals consumes about another 12 percent of the insurance premiums.

These numbers refer to the routine of claims preparation and processing. But the 2008 National Health Insurer Report Card demonstrates that the nefarious behavior of the private insurers has compounded the complexity by reimbursing at rates significantly below those that were established in contracts with the physicians.

The private insurers are cheating, and they depend on physicians being overwhelmed by this administrative burden to not get caught in their evil deeds. This goes far beyond the complex routine of private insurance administrative processes. This is racketeering.

In the ultimate of ironies, the AMA has responded with an additional, complex, burdensome administrative process to ferret out the private insurers that cheat (which is all of them!), so that they can demand reimbursement at rates that the insurers contractually agreed to. Understanding the element that they are dealing with, the final step recommended is to continue to assert compliance with these contracts agreed to by these recalcitrant crooks.

So what is the AMA recommendation for reforming this horrendous, highly wasteful system? More of it! They want to expand the market of private health plans and use our tax funds to provide credits for purchasing these plans.

The AMA should take a closer look at their own National Health Insurer Report Card. All of the private insurers are crooks, but our own public insurer, Medicare, has over a 98 percent compliance with contracted rates. Just imagine if Medicare were the only payer. The ease and transparency of the process would likely result in 99.99 percent compliance.

Instead of wasting more time and resources on a Heal that Claim Month, we need to proclaim January 2009 as a New and Improved Medicare for All Month!