PNHP

Critics challenge health reform plan

Critics challenge health reform plan

By Nancy Remsen
Free Press (Burlington, VT)
Originally Published February 15, 2006

MONTPELIER — Dr. Deborah Richter hoisted a megaphone and addressed a group of 50 supporters of universal health care gathered Tuesday outside the Statehouse to protest the health reform plan drafted by the House Health Committee.

“Go back to the drawing board and consider a different bill,” Richter bellowed toward the windows of the state capitol. She and the other demonstrators object to the limited scope of the committee’s reform plan, which calls for expanding state-subsidized health coverage to many of the state’s uninsured and promoting better management of chronic diseases among all Vermonters.

The recently organized Concerned Vermonters for a Universal Health Care System prefers the bill the House Health Committee recommended last year, which set out a roadmap to move all Vermonters to a government-financed health care system. Gov. Jim Douglas derailed the broader reform proposal with a veto last spring.

The House Health Committee expects to wrap up work on its new health reform bill this week.

Richter, who has a family medicine practice in Cambridge, blamed politics for the committee’s scaled-back proposal: House Democrats are trying to accommodate the demands of the Republican governor and avoid another veto in an election year.

“They have crafted a bill he would have no choice but to sign,” she told the crowd.

Inside the Statehouse, however, representatives of the Douglas administration found plenty to criticize in the latest draft of the House Health Committee’s bill.

Joshua Slen, director of the state Office of Vermont Health Access, posed the biggest challenge to the bill when he questioned the way the committee proposed to pay for the new Catamount Health program for the uninsured and the bill’s chronic care initiatives. The cost of the proposal isn’t set because the committee continues to study options that change how many uninsured could be expected to enroll.

The House bill specifies that the new programs would be paid for in part with dollars the state will receive under its new agreement with the federal government for funding Medicaid. This is the funding source Slen questioned.

Under the Global Commitment for Health agreement, the federal government has promised Vermont $4.7 billion over five years for state-subsidized health care. State officials project the Medicaid will require at least $4.2 billion in those years. Slen said the administration has plans for another $300 million, and he wants to hold at least $100 million in reserve in case Medicaid costs are higher than projected. The committee has been considering using $70 million from this fund.

“My recommendation to the governor has been we can’t be in a position that eats into that cushion,” Slen said.

Some committee members weren’t convinced of the administration’s math or Slen’s conclusion that their plan would consume the cushion. They had their own financial experts reviewing the numbers.

A parade of other witnesses, mostly advocates with special interests, offered the committee their comments on the bill.

“You did a good job setting the stage to move forward,” said Richard Davis, executive director of the Campaign for Health and a registered nurse.

He praised the comprehensive health coverage that would be offered to the uninsured and the plan to better manage treatment of people with chronic diseases such diabetes.

Davis questioned the requirement that someone who has insurance now would have to go a year without insurance before becoming eligible for Catamount Health. “I don’t understand that, if you want to promote access.”

Dr. Marvin Malek questioned the committee’s assumptions about how much money might be saved with the bill. “I don’t see administrative savings,” he said, noting that it wasn’t the single-payer system he advocated.

“If you are expecting there will be a lot of savings because of chronic care management, I’m not optimistic,” Malek added. He and others warned the system might not reap financial benefits from revamping chronic care for years.

Richter addressed the committee, too, before joining the noon rally. She told the panel they were repeating the mistake made by lawmakers in the 1990s by recommending repairs rather than reform of a broken health care system.

“Nothing in the bill offers cost relief in the near future,” she said. “It will result in more uninsured. And the bill makes no provisions for the under-insured.”

The committee will consider today how to react to all the comments it heard about the bill.

Vice Chairman Malcolm Severance, R-Colchester, observed late Tuesday, “We heard a lot today we have to listen to very carefully.”

Health care: the single payer vision

Letter
Louisville Courier-Journal
Friday, February 17, 2006

America has wonderful hospitals, clinics, and doctors. We conduct brilliant research. But there is a missing link: access to health services.

Some day, however, financial barriers to health care in America will be removed, and, finally, we will provide health care for all. Every resident will have affordable, high quality comprehensive health care. Infant mortality rates will fall, immunization rates and life expectancy will rise, and the World Health Organization will rank the efficiency of American health care first, instead of 37th. Health care will be disengaged from employment, freeing millions of health care hostages to pursue jobs they want, rather than jobs they take for health benefits.

Self-employment and entrepreneurship will become financially feasible. American business and manufacturing again will be competitive with countries that have national health plans. Without health benefits as a hiring issue, small businesses will compete equally with large ones for good employees. Medical bankruptcies — now half of all bankruptcies, and especially affecting the middle class — will vanish. Ninety-five per cent of Americans will pay less for health care than they do now.

Malpractice issues will diminish. Physicians will spend more time with patients and people will choose physicians and hospitals freely, rather than being forced into a market network. Money will not change hands between patients and providers, again improving doctor-patient relationships and leading to fewer claims. Since 60 percent of current settlement costs are for future medical care and everyone already will have medical care, settlements will go down and professional liability insurance costs will go down proportionately. Overhead in doctors’ offices will plummet because of vastly simplified billing to a single payer. Primary care physicians will be valued and reimbursed accordingly.

There will be no Medicaid crises, no unreimbursed care for doctors, hospitals or other providers, and no cost-shifting. Health-related issues associated with natural disasters, such as hurricane Katrina, or pandemic influenza, will be managed seamlessly.

A national electronic medical record system will detect medical errors quickly. Half a million Kentuckians are uninsured, 85,000 in Jefferson County. The dire straights of unhealthy Kentuckians have been dramatically portrayed in The Courier-Journal. Uninsured people forego doctor visits and necessary medicine; they postpone medical attention until illness is far advanced, more expensive to treat, and some cannot be helped.

Eighteen thousand Americans — six 9/11 bombings — die every year because they cannot afford medical care.

Privatization of traditional Medicare is a Trojan horse bringing more pain to a critically ill American health care system. Health insurance companies increase profits by raising premiums, reducing benefits, shifting costs to consumers, and providing coverage for only the healthiest.

The Medicare Prescription Drug Act specifically prohibits negotiation for volume discounts and requires private administration. It is an example of the difficulties of mixing profit-taking with health care delivery. It provides lucrative profits to insurance and pharmaceutical industries; but a high cost is borne by the American people. Dr. Oliver Fein, New York City internist, says: “I was outraged when one of my patients required hospital admission after stopping her medications, because she couldn’t afford the $45.57 co-payment demanded by [her new plan].” Health Savings Accounts, tax credits, consumer-directed health care, voucher sytems, etc. are Band-Aids for a failed experiment in health care delivery; they cannot control costs effectively, and they will not provide comprehensive universal affordable health care.

We have the highest health costs in the world, more than twice that of other developed nations that provide care to all of their citizens. We spend more, but we get less. We have the money now to provide excellent health care for everyone. A bill in the U.S Congress, HR 676, describes the details of a single payer national plan. The majority of American citizens support a national health program, and data indicate that the majority of physicians do so as well. We need non-profit single payer health care reform now.

GARRETT ADAMS, M.D., M.P.H.
State Coordinator
Physicians for a National Health Program — Kentucky
Louisville 40206

Louisville Courier-Journal: Readers' Forum

Originally published February 13, 2006

READERS’ FORUM

Providing health care for everyone: ‘Everybody in, nobody out’

I’m writing to thank state Rep. Joni Jenkins and her colleagues who raised their voices in support of HCR 40, a resolution that urges Congress to pass House Resolution 676, the United States National Health Insurance Act, which provides a system of universal single-payer health care insurance.

HR 676 is a publicly funded, privately delivered plan to address the current immoral system, which rations care to those who can afford it. The health care meltdown is accelerating, threatening families, stifling job growth and squeezing funds for education and housing. The solution is HR 676: Everybody in, nobody out.

The deep-pocketed interests that profit from the current collapsing system demonize the single-payer alternative as a form of socialized medicine, which it is not. The current system is bankrupting families, but not industry CEOs and their collaborators.
Ten years ago, Taiwan moved from a system similar to our current system to a single-payer model. Coverage was expanded from less than 60 percent to 97 percent of Taiwan’s residents. What’s the deal? Taiwan can figure this out, but we can’t?

Our current system leaves 46 million out, and millions more underinsured. George Washington wrote: “The admiration of justice is the firmest pillar of government.” Rather than shuffle and make excuses, Jenkins and HCR 40 supporters have taken a giant step forward for justice.

MARK McKINLEY
Louisville 40204

‘The right thing to do’

Thank you for the Jan. 30 article on single-payer health insurance. Most everybody knows someone who needs medical treatment but cannot afford it.

Before thinking that health insurance for all Americans is too good to be true, read U.S. Rep. John Conyers’ bill, HR 676, which outlines the financing. With the money that can be saved from the administrative costs and advertising of privately owned insurance companies, the U.S. government could provide health care services to all, as do Britain and Canada.

Federal and state funding of existing health care programs would involve a modest payroll tax on all employers of 3.3 percent, a 5 percent health tax on the top 5 percent of income earners, and a small tax on stock and bond transfers.

HR 676 would give us more ownership for health care. We could afford it and would be able to choose our own doctors. Morally, it is the right thing to do, and it makes good business sense. . . .

If you want this, ask your Kentucky state representative and senator to vote yes on HRC 40, which endorses the U.S. House bill, HR 676.

JILL HARMER
Louisville 40205

‘We’re all in this together’

In the Jan. 9 Readers’ Forum, single-payer health insurance was endorsed by a local Democratic club. As major corporations . . . crash under their commitments to employees, health insurance and pensions are of equal interest to Republicans.

Thanks to economy of scale, the cost to employers to provide health insurance was less than equivalent salaries, and it guaranteed a healthier workforce. Employees, in turn, bought it as a money-saver.

Today, our national piecemeal attempts to provide health insurance through employers are collapsing. The wonderfully proficient medical treatment available has made the gamble of health care insurance a game too expensive to get into.

Originally, employee pensions looked profitable if company profits increased to cover the eventual cost or if valued employees worked longer to collect the deferred compensation. Employees trusted management to hold part of their pay as savings for old age.

Today, so many companies are going bankrupt or ending up without the projected resources that even the U.S. Treasury can’t cover the needed pensions. . . . Republicans and Democrats, we’re all in this together.

PRUDENCE TODD MOFFETT
Masonic Home, Ky. 40041

Is medical care lacking but equal?

Who Is at Greatest Risk for Receiving Poor-Quality Health Care?
By Steven M. Asch, M.D., M.P.H., Eve A. Kerr, M.D., M.P.H., Joan Keesey, B.A., John L. Adams, Ph.D., Claude M. Setodji, Ph.D., Shaista Malik, M.D., M.P.H., and Elizabeth A. McGlynn, Ph.D.
The New England Journal of Medicine
March 16, 2006

We have previously reported that Americans receive about half of recommended health care and that there is remarkably little geographic variation in this rate. The present study demonstrates that the differences among population subgroups in the quality of health care, even when they are statistically significant, are small in relation to the gap between actual and optimal performance. These results underscore the profound and systemic nature of the quality-of-care problem.

We found that health insurance status was largely unrelated to the quality of care among those with at least minimal access to care. Although having insurance increases the ease of access to the health care system, it is not sufficient to ensure appropriate use of services or content of care. Indeed, within systems where access to care is more equitable, disparities in quality due to race or ethnic group or to other characteristics are often reduced or even reversed, but substantial gaps between observed and optimal quality remain.

To make substantial improvements in the quality of health care available to all patients, we must focus on large-scale, system-wide changes. Our previous study of the quality of care delivered in the Veterans Affairs health system illustrates some of the potential for improvement. In that system, with one of the country’s most mature electronic medical-record systems, decision-support tools at the point of care, automated order entry, routine measurement of and reporting on quality, and financial incentives for performance, we found that participants received 67 percent of recommended care, a considerably better rate than the 55 percent observed in the current study.

We have previously shown substantial deficits in the quality of care nationally and in metropolitan areas with very different market profiles. In this study, we have now shown that individual characteristics that often have a protective effect do not shield most people from deficits in the quality of care. As the Institute of Medicine has concluded, problems with the quality of care are indeed widespread and systemic and require a system-wide approach.

http://content.nejm.org/cgi/content/full/354/11/1147

Working Paper (technical appendix to “Who Is at Greatest Risk for Receiving Poor-Quality Health Care?”): http://www.rand.org/pubs/working_papers/2006/RAND_WR174-1.pdf

And…

Medical Care Lacking but Equal
By Rob Stein
The Washington Post
March 16, 2006

Blacks and Hispanics tend to receive slightly better day-to-day medical care than whites when they see a doctor, a large and surprising study has found, sparking new debate about the impact of race on health in America.

The study, the most comprehensive examination of the quality of primary care in the United States, found no significant differences among patients from different ethnic groups or incomes once they get to see a doctor, but a slight trend toward better care for blacks and Hispanics.

The researchers stressed, however, that other disparities in health care do exist. Poor people and minorities, for example, are less likely to see a doctor in the first place and they receive far less expensive care. In addition, the minor variations among racial groups found in the study are swamped by the low level of care everyone gets, they said.

“The obsession with racial disparities is a distraction from what we really need to do, which is improve health care for everyone,” said Sally Satel, who studies health care at the American Enterprise Institute, a conservative think tank. “This shows us that, if anything, minority groups actually have even somewhat better outcomes.”

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/15/AR2006031502120.html

Comment: By Don McCanne, M.D.

To understand what was measured in this study, you should glance at the technical appendix at the link above. Some of the quality indicators listed are clearly high priority items and most of those do have a very high mean score for compliance. Some items are low priority, and it would be unreasonable to expect them to be included in every medical record for the given clinical event. Some are controversial and should not be included as arbitrary measures of quality. Many others may be addressed during the clinical interaction but might be included in the record only if the clinician were compulsive about detailed charting even though the item is of only nominal significance.

If you were to go through the list and weight the relative importance and effectiveness of each quality indicator, the scores would be much higher than the 55 percent reported. Nevertheless, we can do better, and we should attempt to do so.

A major concern about this study is that the overestimation of quality impairment was used to demonstrate that the lack of insurance or the presence of unfavorable sociodemographic factors had little bearing on these quality parameters. Thus, Sally Satel of AEI makes the outrageous statement that “minority groups actually have even somewhat better outcomes.” In fact, their broad sweep of what they define as recommended care was so broad, and so bluntly focused, that it obliterated well documented differences in access and outcomes.

Innumerable studies have proven that health disparities and the lack of insurance maim and kill people. This study should not deter us in the least from continuing our fight for health care justice.

America's quality care is going to the dogs

Toronto Star
Mar. 5, 2006
Canadian taxpayers should have full access to the system – and doctors – they pay for By Linda McQuaig

The wonderful thing about the Canadian system is that it operates on a higher principle than the marketplace; access is determined by human need, not money. We can improve it without tampering with this profoundly important principle.

The baffling question is why (Alberta Premier Ralph) Klein wants to be remembered for moving us closer to the U.S. system, where a rich person’s dog can get better medical treatment than tens of millions of Americans.

http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1141426212450&call_pageid=968256290204&col=968350116795

Comment: We’ll probably have to continue to accept inadequate health care for low-income American dogs, but how can we continue to accept that for our people?

Los Angeles Times notes momentum of single payer

Why pick on Wal-Mart?
Editorial
Los Angeles Times
March 2, 2006

Although healthcare spending is expected to jump to $4 trillion in the next decade – to 20% of the nation’s gross domestic product – the number of uninsured is increasing by more than a million people a year, and Americans are no healthier than citizens of countries that spend half what we do. That’s the definition of bad medicine.

Fortunately, the public appears to be growing so tired of the problem that national healthcare reform is all but inevitable. Proposals range from a comprehensive overhaul to minor tweaks. More moderate reforms could simply increase the number of low-income adults eligible for existing public programs. And even after President Clinton’s disastrous healthcare reform proposals a decade ago, momentum is growing again for a “single payer” government agency that would insure everyone in the country.

http://www.latimes.com/news/printedition/opinion/la-ed-walmart02mar02,1,4847708.story

Comment: By Don McCanne, M.D.

Although the primary thrust of this editorial was to criticize the Wal-Mart targeted employer mandates as inadequate and misdirected measures, the significance of this excerpt cannot be understated.

This is not an endorsement of single payer, but rather it is a much more important comment on the momentum of the single payer movement. The editorial staff of one of the nation’s leading newspapers has observed that “momentum is growing again for a ‘single payer’ government agency that would insure everyone in the country,” and they have done so without adding the heretofore obligatory phrase, “but it is not politically feasible.”

Single payer is looking more and more like the only option that will work. Feasibility becomes a moot point when it is ever more clear that you just have to go ahead and do it.

Interview with Dr. David Himmelstein

Healthcare for All: The Campaign for Single-Payer Health Insurance in Massachusetts and the United States
Multinational Monitor
Originally published December 2000
Volume 21, Number 12

INTERVIEW

David Himmelstein is an associate professor of medicine at Harvard Medical School and co-founder of Physicians for a National Health Program. The author of numerous studies and books, he is a leader in the movement for universal health care. He was also an author of the recently defeated Question 5, a Massachusetts initiative that would have delivered universal health care for the citizens of the Commonwealth.

Multinational Monitor: Why does the United States need universal health care?

David Himmelstein: Forty-three million people in the United States have no health insurance at all, and tens of millions more have such inadequate coverage that if they were seriously ill, they would be bankrupted. Millions of Americans don’t get the care they need. And simultaneously, we are throwing away huge resources on useless bureaucracy, outrageous profits, outright fraud and unnecessary overtreatment for many patients. We need a thorough revision of our system to deliver the care to the people.

We now have the most expensive health care system in the world. We pay money to middlemen – private insurance companies and HMOs – who do nothing useful. These private insurers act on behalf of employers to limit care to patients and simultaneously extract profits for themselves and other health care providers.

MM: But the insurance companies do provide coverage to tens of millions of people in the United States, right?

Himmelstein: They pass some of the money paid in premiums along to the doctor or to the hospital, but they charge an extraordinary fee for doing that. The average private insurer in this country takes about 13 to 14 percent of the total premium dollar for their overhead.

By contrast, Medicare runs for about 2 percent overheard. The Canadian national health insurance program runs for less than 1 percent overhead.

In the sense that the private insurance companies spread risk and carry out the insurance function, that’s a useful function. But they do it in an extraordinary inefficient way that enriches themselves and their business partners.

MM: You support a Canadian-style single payer system?

Himmelstein: Right, but a national health service like Britain’s would be fine, also.

MM: What’s the difference between Canadian and British systems?

Himmelstein: Canada has provincial health insurance plans. In each province, everybody is covered under a single government-run health insurance plan. You pay your taxes, and your taxes go to cover everybody. That plan then negotiates with all of the hospitals in the province on what each of their budgets is going to be. Instead of paying for hospital care band aid by band aid, aspirin tablet by aspirin tablet, they negotiate with the hospital their entire budget for the year, and they pay them one check a month for that budget.

Doctors submit all of their bills to the public plan, and get paid on a fee-for-service basis. The fees are negotiated between the doctors and the provincial health plan.

In Canada, the doctors have remained in private practice, though they are paid by the public system. Hospitals have remained mostly private, although again, they receive their payments from the public insurance system.

In Britain, the hospitals are owned by the government. The specialists are employed on salary by government as employees of the hospitals.

MM: Why not fix the system here in the United States?

Himmestein: We ought to fix the current system, but there is nothing that will work short of national health insurance.

We have had a series of patchwork reforms over the last 20 years now, and we have more uninsured people today than we had 20 years ago. And despite the economic boom, we have made no dent in the number of people who are uninsured.

We passed the children’s health insurance program two or three years ago, but there are as many uninsured children now as there were two or three years ago, because health care costs keep rising, and fewer people can afford private coverage. The public expansions don’t keep pace with the cutbacks in private coverage most years.

Basically, as a private insurance firm, the way you make money is to avoid sick people. There has been no effective way of policing that.

The problem is that unless you require that either an employer buy coverage for an employee, or that an individual buy coverage, there is no way of making universal coverage in a private insurance system. Moreover, poor people are least likely to be able to afford medical care, and are often the sickest people in the society.

MM: How many uninsured people are there in the United States?

Himmelstein: Forty three million – that’s about 15 percent of the population.

MM: What happens when an uninsured person gets sick? Who pays?

Himmelstein: It depends on where they are and exactly what they are sick with. It varies from community to community. If you are sick enough to be in imminent danger of dying, then a hospital is required to stabilize you or risk a fine from the federal government. Several dozen hospitals get that kind of fine every year, so it does happen that even very sick people are denied care.

If a hospital treats an uninsured patient, the hospital tries to collect from you, and if they can’t collect from you, then they write it off as free care. In some states, there are some state funds available to subsidize that care, in others not. In some cities there are some public hospitals available to help subsidize that care and others not.

If you are not very ill, in some places, you may not be able to get any care. In other places, there are some systems of care for the uninsured, either locally subsidized or at reduced rates.

There are 300,000 people refused care in hospital emergency rooms every year because they can’t pay.

MM: Under a system of national health insurance, what happens to the insurance companies?

Himmelstein: They are eliminated.

The total health budget in the United States is about $1.2 trillion. About $300 billion is administration, and you could probably eliminate about $175 billion of it with rational health insurance system.

It is very clear that if you streamline the system and took the administrative waste out of it, you could give Cadillac care to everybody in the country for what we are now spending. The General Accounting Office has studied the question, and confirmed that. The Congressional Budget Office found that. A right-wing consulting firm made estimates that are in line with that.

MM: Can national health insurance supporters in the United States overcome public distrust of government?

Himmelstein: Most Americans have some distrust of government. One of the organizations they like even less than government is private insurance companies. And those are the only two options for running our health insurance system.

Surveys show that universal coverage is enormously popular. If you give a reasonable description of a Canadian-style health care system, about 55 to 60 percent say they support that.

MM: So why doesn’t the United States have a national health insurance system?

Himmelstein: First, national health insurance means a major redistribution of income. At present, the poorer you are, the larger the proportion of your income you spend for medical care. And if you go to a tax-funded national health insurance plan, presumably you are going to fund it out of a vaguely progressive tax. And rich people are going to pay a higher proportion of their income and poor people are going to pay a lower proportion of their income. It implies a substantial redistribution of income.

Second, national health insurance attacks a major concentration of corporate power. Some of the largest and richest firms in the country are health care firms. You are putting out of business HMOs and health insurance companies.

And you are severely affecting the profits of others. The drug industry, which has been the most profitable industry among the Fortune 500, would be faced by a single national purchaser of their drugs. And they wouldn’t get away with the rip-off prices that are routine for them now.

The government will say to the drug companies, “We are not willing to pay for the $12 billion a year that you spend to miseducate doctors.” That’s the marketing and sales force, which they would presumably have to justify as a cost, if they were bargaining with the government. The drug companies would not be in a position to justify those costs.

MM: Question 5 was a universal health care proposition on the ballot in Massachusetts in November. What would it have done?

Himmelstein: It would have done three things.

First, it would have required our state legislature to pass universal coverage by July 1, 2001 and implement it by July 1, 2002. The system was required to eliminate barriers to care. It had to maintain a free choice of provider for patients. It had to minimize incentives for overcare and undercare.

Question 5 didn’t specify how universal coverage should have been carried out. And clearly, if it had passed, there would have been a major debate in our state about exactly how to do it.

It would have set up a commission to advise the legislature on how it ought to have been done. And on the commission would have been several advocates of a Canadian single payer system.

MM: Why weren’t you explicit about how the single payer system would have worked?

Himmelstein: Under the laws in Massachusetts, you can’t appropriate money with a ballot initiative. We couldn’t actually put in place a new tax structure to fund health care and specify that degree of detail. Second, specifying a system in detail would have required many pages of detailed text. We knew we were going to be tremendously attacked by the insurance industry and others. And we thought that the possibility of having a reasonable debate about the detailed structure of the system was almost nil given the political system in our state.

For tactical reasons, we decided that the first step was to say, “There needs to be universal coverage, and here are some broad outlines. Let’s set up a commission that includes a majority of single payer advocates. And then within six months, let’s proceed to the next step.”

There were two other clauses. One would have banned conversions of hospitals and HMOs to for-profit businesses. The other would put in place some restrictions on HMOs immediately. They would have to spend at least 90 percent of premiums on medical care. It would also have required them to allow patients to go to any doctor licensed in the state. And it would have outlawed financial incentives to doctors to restrict care.

MM: Who in the state supported Question 5?

Himmelstein: Question 5 was initially proposed by an ad hoc group of doctors, nurses, psychologists and other health professionals. We went around and started to build a broader coalition with some friends and colleagues who had some more political sophistication that we did.

They rounded up a number of groups that were going to support it, including the AFL-CIO and some consumer advocacy groups including Health Care for All, which has Families USA as its Washington, D.C. counterpart.

The groups collected the signatures to get the thing on the ballot – 120,000 signatures. Those signatures were collected last fall. And this spring we collected another 15,000. Under Massachusetts law, you have to collect two sets of signatures.

The legislature started to panic about this initiative being on the ballot. And the HMO industry did as well.

A patient protection bill, which had been stalled by the HMO lobby in the legislature for three years, suddenly began to move. And it was clear the HMOs had instructed the legislative leaders that they needed that thing to pass, and they wanted the ballot initiative to be removed. A last minute deal was struck between the HMOs and the major groups that had signed on to the initiative. The patient protection bill would become law and in exchange, the initiative would be pulled off the ballot at the last moment.

That left only the League of Women Voters and the original ad hoc group of doctors, nurses and other individual professionals supporting it. We were left with no organization, no money and little political savvy.

MM: What did the patient protection act do?

Himmelstein: It put in place the right to appeal if an HMO denied you care. It put in place a structure to regulate for-profit conversions of hospitals and HMOS. It set up a commission to advise the legislature on universal coverage, although there was no mandate that the legislature had to do anything about it.

We rejected the deal because the patient protection act was more or less the same reforms they put in place in 30 other states, and those laws have had no noticeable effects on health care in those states. Instead of prohibiting conversions, it laid out how an HMO or hospital could be converted to an investor-owned organization.

Third, it set no deadlines, and no requirement for universal coverage. It just set up a commission that was not likely to act. So, we thought the deal was nothing but a sham and didn’t effectively accomplish anything.

MM: But once on the ballot, the AFL -CIO and Health Care for All could not remove the initiative?

Himmelstein: They felt they could. The negotiations on the deal were being conducted right around the time when the final signatures were due earlier this year. Our allies turned the sheets with the signatures in because the patient protection act legislation was dragging. And they thought they were turning in the signatures as a stick to put over the heads of the legislative leaders to conclude the legislative wrangling.

They turned them in to the Secretary of State. Then they tried to withdraw them. At that point, the rest of us who had been involved said, “No, you can’t withdraw them.” And the Secretary of State ruled in our favor.

MM: So, you get on the ballot. At that point, who was supporting you and who was opposing you?

Himmelstein: Our major supporters were colleagues. The biggest organization was the Massachusetts Nursing Association. The League of Women Voters was important. And individual doctors and nurses. That’s about it.

The opposition was the business community and particularly the HMOs in Massachusetts. The HMOs kicked in at least $5 million. Organizations like Raytheon and some other big businesses kicked in money. They saturated the television and radio airwaves.

MM: What was their argument?

Himmelstein: They argued that this proposal would raise costs tremendously. They commissioned a study that claimed that universal coverage would increase costs by 40 percent in Massachusetts. That is a fairly bizarre notion. We are already 30 percent above the national average in our state.

We are spending $6,000 per capita in Massachusetts on health care. The notion that we would raise that to something like $8,000 per capita is bizarre. There is no place else in the world that spends more than $2,500 per capita on health care. In the United States, we are spending $4,000 per capita.

There is no serious health policy person who believes that under universal health care we would be spending $8,000 per capita. But they commissioned studies that purported to show that and the news media covered those studies as if they were true.

There have been two serious studies of what statewide health insurance program in Massachusetts would cost. Both of those were commissioned by the Massachusetts Medical Society, by no means a left-wing organization. And both concluded that you either save money, or it might increase costs a little in the first year, and then you start to save money.

MM: They spent $5 million, you spent $60,000. They had ads all over the airwaves, you had no ads. You relied on free media. Did you get much publicity?

Himmelstein: A fair amount. The last week or two, when it became clear that we had a serious chance of winning this, the press actually began to cover it. The problem was that the folks working on the campaign for us were doing it in our spare time, after working full-time jobs. And we were not in a position to spend our days thinking up lies to tell, like the opposition was doing.

They would put out a raft of lies, which the press would report, and we would then try and counter those, but by no means have the time or resources to go after each one.

MM: What were you expecting in terms of percentage of the vote?

Himmelstein: We didn’t know what to expect. The polls showed that we were ahead 75 to 25 at the beginning. We thought we would probably go down fairly fast from there, but a week before the election, the polls showed us at 60 to 40. We started to think that we might win it, especially after Senator Ted Kennedy said he was going to vote for it. And during the last week, a few politicians began to filter to the front of the parade, since they apparently thought the thing might pass.

If we had only a minimally competent campaign, it would have passed. We lost in the end 51 to 49.

If we had signs at half the polling places in the state that said – Ted Kennedy says vote yes on Question 5 – we would have won easily. But we weren’t organized enough to do that.

MM: Are you bitter about this?

Himmelstein: No, we are tremendously energized by this. We made every conceivable mistake. We ran the most incompetent campaign possible. We were deserted by all of our allies.

And we still got 49 percent of the vote. We feel like all we need to do is do this right and we will win easily.

MM: Do you plan to do it again?

Himmelstein: Yes, in 2002.

MM: When is the United States going to get universal health care?

Himmelstein: We are going to have a major debate about this in the next three or four years. When we are going to get it is more difficult to say. We’ll have opportunities for it in a major way. The system is becoming unstable. Costs are rising very rapidly. In the early 1990s managed care firms said to employers, “We will hold down your costs if you give us control of the system.”

From 1994 to 1997, health care costs rose more slowly than they did in the late 1980s and early 1990s. And big employers closed ranks behind the existing health care system. While patients were dissatisfied, the system was fairly stable at that point.

Now, you have the re-emergence of health care inflation. And that is a major destabilizing force. Now it is clear that HMOs have not succeeded in containing costs and are not likely to. We are going to have to have some other major reform of our health care system to contain costs.

That creates divisions in corporate America and allows for an opening for debate that otherwise is difficult to create. The implementation of HMO control of the system in the early 1990s was quite brutal, not only for uninsured patients but for many insured patients. That spread a reaction among not just the poor, but many middle class people who are now dissatisfied with the system.

It creates an opportunity for a broad coalition for change. Surveys show that something like 55 to 60 percent of doctors now are in favor of national health insurance. The majority of all medical school deans in the United States have explicitly endorsed single payer health insurance.

MM: Why isn’t that support being translated into political support in Washington?

Himmelstein: No firm in the U.S. has ever advocated the nationalization of any industry. General Motors is upset that its health care costs are going up, but they are not yet ready to say that the preferred solution is the elimination of a private capitalist industry.

MM: Has legislation been introduced in Congress?

Himmelstein: Yes, regularly since 1948. But it never goes anywhere. In the early 1990s, 70 or 80 members of Congress supported it. Now there are about 20 or 30 members who actively support it. If there were a serious organizing effort, we could get back to 50 or 60 members supporting it.

But, the Congress is going to be the last place to act. We are going to need to create a major groundswell for change before Congress acts.

Medicaid's Health Opportunity Accounts

Medicaid to offer HSA pilot program
By Amy Snow Landa
American Medical News
March 13, 2006

Health savings accounts aren’t just for the private market anymore.

President Bush has signed legislation that will allow up to 10 states to offer Medicaid recipients “Health Opportunity Accounts” that are similar to health savings accounts available in the private market.

The provision allows participating states to test whether HOAs encourage Medicaid recipients to be more cost-conscious about their health care decisions by giving them a stake in their health care spending.

“That’s especially needed in Medicaid, because people on Medicaid have had very little exposure to the actual cost of their health care consumption,” said Grace-Marie Turner, president of the Galen Institute, a health policy research organization in Alexandria, Va., that advocates for consumer-driven health care.

HOA enrollees who leave Medicaid can use their remaining account funds to pay for health care services or coverage, or even job training and tuition expenses.

That makes sense, said the Galen Institute’s Turner.

“If you don’t need the money for health care, allow people to use the money for something they value — that’s part of the savings incentive,” she said.

The federal program is limited to 10 states in the first five years, but the secretary of Health and Human Services is allowed to extend the program nationwide after the five-year period ends. If that occurs, the program’s costs will triple over the second five years to a total increase in federal Medicaid spending of $265 million over 10 years, the CBO estimates.

http://www.ama-assn.org/amednews/2006/03/13/gvsa0313.htm

And…

Health Opportunity Accounts for Low-Income Medicaid Beneficiaries: A Risky Approach
By Edwin Park and Judith Solomon
Center on Budget and Policy Priorities
November 1, 2005

Conclusion

While the scope of the Health Opportunity Accounts demonstration project is limited for the first five years, the use of such accounts for low-income Medicaid beneficiaries poses a significant risk of reducing beneficiary access to medically necessary services. The Health Opportunity Accounts could leave some beneficiaries, particularly those in poorer health, responsible for out-of-pocket costs related to health services they need when they have exhausted their accounts but not yet met the deductible. These costs would be on top of the standard copayments that beneficiaries would have to pay once the deductible was exhausted, which themselves would be increased by other Medicaid provisions of the Energy and Commerce reconciliation package. Research indicates that increased cost-sharing particularly affects the ability of low-income individuals to access health care.

At the same time, the Health Opportunity Accounts would add to federal Medicaid costs. By allowing former beneficiaries to keep balances held in their accounts, the federal government would essentially be paying for benefits provided to individuals and families no longer eligible for Medicaid. The demonstration project also would permit, at state option, the use of federal Medicaid dollars to pay for health care services not covered under Medicaid and even for non-medical services.

Despite these substantial risks, after five years, the demonstration project would become permanent, and the Secretary of Health and Human Services could extend it nationwide to all states and all beneficiaries, without review and further action by Congress. All of this leads to a conclusion that the demonstration project in the Energy and Commerce Committee’s reconciliation package is seriously flawed in a number of respects and that its enactment would represent neither sound health care policy nor sound fiscal policy.

(Now enacted.)

http://www.cbpp.org/10-26-05health.htm

S.1932, Sec.6082 Health Opportunity Accounts:
http://thomas.loc.gov/ (Enter S.1932, click “Bill Number” and then “Search.”
Click on S.1932.ENR. Click on Sec.6082.Health Opportunity Accounts.)

Comment: By Don McCanne, M.D.

What lunacy!

Is European-style insurance the answer?

Universal Health Coverage Does Not Require Single-Payer System, Op-Ed States
Kaiser Daily Health Policy Report
July 3, 2006

“Many proponents, as well as opponents, of health care reform equate universal coverage with a Canadian-style, government-run, single-payer system,” but “a survey of successful health care systems around the world shows this is an incorrect assumption,” Steven Hill, a director of the New America Foundation, writes in a San Jose Mercury News opinion piece. According to Hill, a number of nations without a single-payer health care system — such as Austria, Belgium, France, Germany, Japan and the Netherlands — provide universal health coverage and quality health care “at a fraction of what we pay” in the U.S. Hill writes that the health care systems in those nations share “many similarities with the recent bipartisan health care legislation passed in Massachusetts that mandates a ‘shared responsibility’ between employees, employers and the government,” adding that the “key difference is that the Massachusetts plan does not include cost controls, which understandably are difficult to enact on a state level.” Hill writes, “The evidence is clear that cost controls are extremely important to any successful health care system,” and “the experiences of the public-private hybrid systems in France, Germany, Belgium, Japan and elsewhere show that it is possible to have your cake and eat it too.” The “take-home lesson for health care reformers is that it is important to expand the debate and recognize that universal health coverage does not mean single-payer,” Hill adds (Hill, San Jose Mercury News, 6/30).

http://www.kaisernetwork.org/daily_reports/print_report.cfm?DR_ID=38290&dr_cat=3

From Steven Hill’s Op-Ed referenced above:

The funding for health care in these nations is best described as a “shared responsibility” — employees, employers and the government all contribute a pre-determined amount. Both workers and their employers are subject to mandatory payroll deductions, and government chips in any shortfalls for poorer individuals, depending on income level or employment status.

The contributions from individuals, employers and government are deposited into private insurance funds that are non-profit and government-regulated (sometimes known as Sickness Insurance Funds, or SIFs). Additional private insurance can be purchased for premium services, such as a private room in the hospital.

But here’s the key part: the SIFs sit down at the bargaining table with the government and representatives from professional associations of doctors and health care professionals to set exact fee structures. They negotiate strict cost controls that have prevented expenditures paid by consumers from approaching anywhere near exorbitant U.S. levels. Cost controls are essential to the success of these “shared responsibility” systems.

http://www.mercurynews.com/mld/mercurynews/14937478.htm

Comment:

By Don McCanne, M.D.

Judging from my email, single payer advocates around the nation are quite concerned about this Op-Ed from Steven Hill of the New America Foundation. He suggests that we should dismiss consideration of single payer
and move forward with the “shared responsibility” approach of European-type private insurance funds which he parenthetically acknowledges are Sickness Insurance Funds (SIFs).

Ida Hellander, M.D., Executive Director, Physicians for a National Health Program, in a personal communication provides this helpful insight:

“I think the important thing to note is that the ‘sickness funds’ in France, as in Germany, Switzerland, etc – are nothing like a U.S. insurance company. The main reason people usually propose the German (or French, etc.) model for the U.S. is that they believe it will be more ‘politically feasible’ than single payer because we could avoid a showdown with the private insurance industry. But that’s false. Aetna has nothing in common with a sickness fund: Sickness funds are, after all, non-profit, and so tightly regulated that they don’t set either fees or premiums. U.S. insurers would resist being turned into ‘sickness funds’ exactly as much as they would fight single payer. So, there’s no political advantage. Plus, having multiple payers (even non-profit ones) does increase administrative overhead, and decrease ability to control costs.”

The mission of the New America Foundation is to bring new, innovative thinking into the public discourse. It is ironic that they are promoting the oldest approach to universal coverage, sickness funds, while rejecting the newest and most efficient form of universal coverage, single payer.

They use the rhetoric of shared responsibility, as if this were a new concept. Of course, all universal systems depend on shared responsibility. A single payer system partners a public funding system with a private health
care delivery system.

If they believe that highly regulated and controlled sickness funds administered by multiple insurers is a great idea, then maybe they might be interested in a newer innovation of that concept. Establishing a single, universal sickness fund, administered regionally by a single public entity, would improve the efficiency and efficacy of the sickness fund concept.

Does someone want to tell Steven Hill and his colleagues at the New America Foundation that the take-home lesson is that we don’t have to settle for the ancient model of multiple private insurers and sickness funds, when we have
the opportunity to adopt an improved universal system by applying modern single payer innovations?

Note: There will be no Quote of the Day messages during the remainder of July. They will resume in August.

Stretching the brittle Medicaid dollar

Can States Stretch The Medicaid Dollar Without Passing The Buck? Lessons From Utah
By Samantha Artiga, David Rousseau, Barbara Lyons, Stephen Smith and Daniel S. Gaylin
Health Affairs
March/April 2006

In some states, Medicaid restructuring has already begun through waivers. In 2002 Utah became the first state to use a new waiver approach, under which the state financed an expansion in primary care coverage, called the Primary Care Network (PCN), with “savings” obtained from benefit reductions and cost-sharing increases for parents already covered by Medicaid.

Utah financed an expansion in primary care coverage for low-income adults by limiting benefits and raising cost sharing for very poor parents receiving Temporary Assistance for Needy Families (TANF) (with incomes below 54 percent of the federal poverty level, or $8,964 per year for a family of three in 2006), parents who recently left TANF because of employment, and parents with high medical expenses who “spent down” to qualify for Medicaid.

These reductions offset the costs of a coverage expansion to uninsured parents and other adults with incomes below 150 percent of poverty ($24,900 per year for a family of three in 2006) who were not previously eligible for Medicaid. These people became eligible for the new PCN program offering only primary care coverage, with no coverage for hospital (other than ER), specialty, or mental health care.

Although the PCN enrollees appeared to be benefiting from their coverage, their major health care needs and limited resources raise concerns that a package covering solely primary care falls short of providing adequate insurance. More than three-quarters of enrollees said they needed health services that were beyond the scope of their coverage. Further, compared with the Non-Traditional Medicaid enrollees, who have broader coverage and more limited cost sharing, they were more likely to report missing or postponing getting needed medical care because of cost or lack of coverage. When compared with national survey findings for adults with incomes below 150 percent of poverty, PCN enrollees’ reports of missing or delaying care were much higher than national rates for adults covered by Medicaid (36 percent versus 12 percent) and were closer to national rates for uninsured adults with incomes below 150 percent of poverty (29 percent).

http://content.healthaffairs.org/cgi/content/abstract/25/2/532

And…

Arkansas Set to Undertake a Novel Effort in Health Care
By Robert Pear
The New York Times
March 7, 2006

The Bush administration is poised to approve an innovative health insurance program, proposed by Arkansas, for 80,000 low-income uninsured people in the state, officials said Monday.

Arkansas will carry out the program, to be announced on Tuesday, under a waiver allowing the state to receive federal Medicaid money for coverage that does not meet the usual Medicaid standards for eligibility and benefits.

The employer-based program is novel in two ways. The benefit package is extremely limited, much more austere than Medicaid’s. In addition, if an employer wants to participate, it must guarantee that all its employees, regardless of income or other factors, will be covered.

People who sign up for the program will receive a basic benefit package covering six doctor visits a year, seven days of inpatient hospital care a year, two outpatient hospital procedures or emergency room visits a year and two prescription drugs a month.

Federal officials said the Arkansas program could be a model for other states that want to expand coverage without substantially increasing costs.

http://www.nytimes.com/2006/03/07/politics/07health.html?_r=1&oref=slogin

Comment: By Don McCanne, M.D.

Michael Leavitt, when he was governor of Utah, introduced innovative restructuring through the Medicaid waiver process that produced the plan described in the Health Affairs article above. The results of this study demonstrate that Leavitt’s innovative program resulted in beneficiaries missing or delaying care at rates comparable to the uninsured.

Now, as secretary of health and human services, Michael Leavitt is poised to approve the Medicaid waiver for Arkansas’ innovative program. What is particularly disconcerting is that this new innovation not only replicates to some extent the flawed plan adopted by Utah for low-income individuals, but this plan also establishes the principle that employees of small businesses are entitled only to the same, almost worthless coverage.

Unfortunately, our nation’s leaders have defined the problem as a need to reduce the numbers of uninsured, when the real problem is that we need to reduce the numbers who cannot afford access to health care. To expand insurance coverage without spending more, consumer-directed innovations are being used to shift more of the costs to patients. These Medicaid innovations establish an inverse relationship between income levels and the amount of cost shifted to the patients. Very low income patients are having almost all of the costs shifted to them.

In 2000, the World Health Organization ranked the United States 54th in the fairness of funding of our health care system. At least our administration will be able to show us an upward sloping curve as they graph out the growth of that number. Or maybe they’re looking at the inverse as they try to become # 1, the most inequitable system of all nations.

The health care crisis and what to do about it

The Health Care Crisis and What to Do About It
By Paul Krugman, Robin Wells
The New York Review of Books
March 23, 2006

The good news is that we know more about the economics of health care than we did when Clinton tried and failed to remake the system. There’s now a large body of evidence on what works and what doesn’t work in health care, and it’s not hard to see how to make dramatic improvements in US practice.

The bad news is that Washington currently seems incapable of accepting what the evidence on health care says.

1. Is health care spending a problem?

2. The unraveling of employer-based insurance

3. Medicaid and Medicare

4. The “consumer-directed” diversion

5. Single-payer and beyond

6. Beyond reform: How much health care should we have?

7. Can we fix health care?

A mere shift of power from Republicans to Democrats would not, in itself, be enough to give us sensible health care reform. Even liberal economists and scholars at progressive think tanks tend to shy away from proposing a straightforward system of national health insurance. Instead, they propose fairly complex compromise plans. But the main reason for not proposing single-payer is political fear: reformers believe that private insurers are too powerful to cut out of the loop, and that a single-payer plan would be too easily demonized by business and political propagandists as “big government.”

These are the same political calculations that led Bill Clinton to reject a single-payer system in 1993, even though his advisers believed that a single-payer system would be the least expensive way to provide universal coverage. Instead, he proposed a complex plan designed to preserve a role for private health insurers. But the plan backfired. The insurers opposed it anyway, most famously with their “Harry and Louise” ads.

We believe that the compromise plans being proposed by the cautious reformers would run into the same political problems, and that it would be politically smarter as well as economically superior to go for broke: to propose a straightforward single-payer system, and try to sell voters on the huge advantages such a system would bring. But this would mean taking on the drug and insurance companies rather than trying to co-opt them, and even progressive policy wonks, let alone Democratic politicians, still seem too timid to do that.

So what will really happen to American health care? Many people in this field believe that in the end America will end up with national health insurance, and perhaps with a lot of direct government provision of health care, simply because nothing else works. But things may have to get much worse before reality can break through the combination of powerful interest groups and free-market ideology.

http://www.nybooks.com/articles/18802

Comment: By Don McCanne, M.D.

You likely do not have the time right now to read this very long article. The sections are listed above simply to demonstrate that it really does address the health care crisis and what to do about it, as promised in the title. Save this for your next break.

Do not be deterred by the fact that this is a book review, actually a review of three books. It is a stand-alone article on our health care crisis, not constrained by the subject matter of the books reviewed.

You should encourage others who are concerned about our health care system to take the time read this article. You can assure them that most authors would have required an entire book to communicate the messages that Krugman and Wells have presented here in a single article. In this day of information overload, you’ll rarely find a bargain like this: a lucid perspective of the basics of our health care crisis with a very modest commitment of time.

Tell everyone to read it.

Remedy for ailing system sought

Forums to examine possible solutions to health care cost crisis
By Matt Pacenza
Times Union, Albany, New York
Monday, March 6, 2006

ALBANY — The bill gets bigger every day. By 2015, one out of every five dollars spent in America will pay for health care — $4 trillion, according to a recent study.

There has to be a better system than the current U.S. hodgepodge of private and public insurance, which is unnecessarily costly yet also leaves millions with inadequate care, according to a diverse group of activists and business people that has come together in recent years to seek an alternative.

Four forums to debate transforming the health care system will be held over the coming month at WAMC’s Linda Norris Auditorium at 318 Central Ave. The lunchtime symposiums, open to the public, won’t just bring together those who back universal health care.

“People are participating from different points of view,” said Dr. Paul Sorum, chairman of the Capital District chapter of Physicians for a National Health Program and event organizer. “We expect a lot of interesting and passionate exchanges between them and members of the audience.”

The first session — from noon to 2 p.m. on Tuesday — includes Dr. Oliver Fein, a Cornell medical school dean who backs universal health care, Dr. Jeremy Lazarus from the American Medical Association, which supports free-market approaches, and the chief of the Capital District Physicians Health Plan, Dr. William Cromie. Rounding out the panel — called “What is wrong with the current system? Would ‘Medicare for All’ remedy these deficiencies?’ ” — is Albany Med’s well-known bioethicist, Glen McGee.

Each forum will be moderated by WAMC President Alan Chartock and edited for broadcast.

The time is ripe for an in-depth debate on health care, said Sorum, who is also a professor of internal medicine and pediatrics at Albany Medical College. He listed the issues grabbing headlines across the country: “The rising cost; the number of people who don’t have health insurance; the screams of business people who can’t afford to provide insurance, even if they would like to; the rising cost of Medicaid, and its burden on county taxpayers.”

Anyone interested in attending the forums is asked to pre-register by e-mailing pnhpalbany@verizon.net or by calling (518) 391-2508. The other three panels will be held on:

March 27, 1 to 3 p.m. “What lessons can we learn from other countries?”

April 10, noon to 2 p.m. “What would an expanded Medicare for all look like?”

April 24, noon to 2 p.m. “Can we institute Medicare for all in a single state, namely New York?”