PNHP

Affordability concerns are moving up the income ladder

Affordability concerns are moving up the income ladder

The Commonwealth Fund Commission on a High Performance Health System August 2006 Public Views on Shaping the Future of the U.S. Health System
By Cathy Schoen, Sabrina K. H. How, Ilana Weinbaum, John E. Craig, Jr., and Karen Davis
The Commonwealth Fund

Abstract:

On behalf of The Commonwealth Fund Commission on a High Performance Health System, Harris Interactive surveyed U.S. adults to determine the public’s perspectives on ways to improve patient care and on health policy priorities facing the President and Congress. Overall, the representative sample of 1,023 adults ages 18 and older revealed strong public support for efforts to improve care coordination and access to information. There is a shared belief that expanded use of information technology, care teams, and improved delivery of preventive services could improve the quality of care. Patients reported recent experiences of wasteful, inefficient, or unsafe care. In addition, half of middle-income and lower-income families reported serious problems paying for care and insurance coverage. Three-quarters of all adults said the U.S. health care system needs either fundamental change or complete rebuilding. Expanding insurance and controlling costs, they said, should be top priorities for federal action.

Affordability concerns are moving up the income ladder

Half of middle-income ($35,000-$49,999 annually) and lower-income (less than $35,000 annually) families said they have had serious problems paying for care in the past two years. With the median U.S. household income at $44,000, the findings indicate that more than half of all households are experiencing stress when paying for medical care.

A similarly high proportion of middle- and lower-income adults reported difficulties paying for health insurance.

Affordability is a now a concern at even higher-income levels. One-third of adults with annual incomes between $50,000 and $74,999 reported serious problems in paying for care.

Shared Views, Values and Concerns

Across income groups and regions of the country, there was resounding agreement that ensuring reliable health insurance and controlling rising costs are the most pressing health policy issues for the President and Congress to tackle. The majority consistently ranked coverage and costs as their top two priorities.

http://www.cmwf.org/publications/publications_show.htm?doc_id=394606

Comment:

By Don McCanne, MD

This report is highly credible (Harris Interactive) and is current (survey conducted June, 2006). It confirms many other reports about pubic views on the U.S. health care system.

From the perspective of reforming health care financing in the United States, the most important finding in this report is that the concerns about affordability of health insurance and health care have moved up the income ladder. The concerns of average-income families are now as great as lower-income families (more than half!), and now even higher-income families are concerned (one-third!).

The other issues addressed are very important, especially the need for a medical home. But they will be very difficult to address until we fix the financing of health care by providing comprehensive coverage for everyone.

U.S. capacity for mammograms adequate, but…

United States Government Accountability Office (GAO) July 2006 Mammography Current Nationwide Capacity Is Adequate, but Access Problems May Exist in Certain Locations

Closures of certified mammography facilities outpaced openings during a recent 3-year period, and financial considerations were most often cited as the reason for facility closures.

Although key elements that make up mammography capacity have decreased and the use of screening mammography has grown, current nationwide capacity is adequate.

The loss or absence of machines in certain locations may have resulted in access problems, including problems for women who are medically underserved, such as those who have a low income or lack health insurance.

http://www.gao.gov/highlights/d06724high.pdf

Comment:

By Don McCanne, MD

So the United States has the capacity to provide every women with appropriate mammography screening, except for those who have low income or lack health insurance.

How much longer are we going to sit back and just talk about this. Have we no decency?

Aetna's "Vital Savings on Health"

Aetna to offer discount cards, starting in Denver, New Jersey The insurer’s move is part of a trend in which big health plans are looking for new ways to serve small employers.
By Jonathan G. Bethely
American Medical News
Aug. 14, 2006

Vital Savings on Health would allow companies to offer their employees prepaid cards good for 10% to 50% discounts off the cost of routine health expenses, when payment is made at the point of service. The company said the discount represents the range of discounts under Aetna’s PPO plans, and that physicians would not be expected to provide additional discounts. Physicians would call a toll-free number or check a Web site to determine the rates for various services.

Christine Skelly, Aetna’s vice president of health-related financial solutions, said Aetna will target employers who want to offer their employees some medical coverage, but just can’t afford a traditional insurance plan. Money will be deposited into the debit card via contributions from employers and/or employees.

Aetna will require its member physicians to opt out of the program if they don’t want to participate. Without that notice, they’re in.

http://www.ama-assn.org/amednews/2006/08/14/bisc0814.htm

Aetna’s release on Vital Savings on Health:
http://www.aetna.com/news/2006/pr_20060712.htm

Comment:

By Don McCanne, M.D.

So Aetna’s “Vital Savings on Health” program is the next best thing to insurance: a card ensuring that patients will receive the same discount that Aetna receives from its PPO contracted physicians. This program should appeal especially to small businesses since the cost is lower than PPO plans which small businesses are finding to be less and less affordable each year.

The most important difference from a PPO plan is that the contracted rate for services is paid from the patient’s own debit card account rather than from a risk pool maintained by Aetna. Aetna bears absolutely no risk in this program. Patients will have the same choices of physicians as in Aetna’s PPO plans since physician enrollment is automatic, unless the physician initiates an opt-out process.

So what is the product that Aetna is selling here? Aetna is selling the right to dictate which patients will receive a discount and what the amount of the discount will be. What? That is a right that belongs to the physician and not to Aetna. So they are selling a product, a discount, that doesn’t belong to them but that they have stolen from the physicians. What chutzpah!

And we still insist on national policies that leave the private insurers in charge? What chutzpah!

PacAdvantage failure a bad omen for small business coverage

Insurance-pool plug pulled
By Gilbert Chan
The Sacramento Bee
August 12, 2006

Citing the pullout of three major health plans, California’s pioneering small-business health insurance pool is shutting down.

“PacAdvantage exhausted every possible approach to keep the voluntary partnership together. Unfortunately, market forces prevented that from happening,” said Peter Lee, chief executive officer of the Pacific Business Group on Health, which created PacAdvantage eight years ago after taking over the landmark small-business insurance pool established by the state in 1992.

Moving to boost employer-purchased health insurance in California, lawmakers launched the pool 14 years ago to make coverage more affordable businesses with fewer than 50 workers. Once off the ground, the law called for the program to be privatized. In the meantime, lawmakers also guaranteed the availability of coverage for small businesses.

PacAdvantage’s downfall began to take shape in the spring after Blue Shield said it was losing money in the program and announced plans to withdraw after this year.

Subsequent talks with Blue Shield, Kaiser and Health Net failed to work out a solution. With Blue Shield leaving, Kaiser and Health Net opted to follow suit.

http://www.sacbee.com/content/business/story/14294947p-15141048c.html

And…

Health Pool to Close for Lack of Insurers
By Daniel Yi
Los Angeles Times
August 12, 2006

Combining small business’ buying power has done little to increase affordability, (Marian Mulkey, an analyst with California Healthcare Foundation) said, because a voluntary program’s “fundamental flaw is that people will participate only when it is in their best self-interest.”

No amount of pooling can stop rising healthcare costs, experts said.

The only way a pool of buyers would have enough power to significantly influence costs, most sources agreed, is if it included virtually everyone in a form of universal care brought about by mandate or government subsidy.

http://www.latimes.com/business/la-fi-health12aug12,1,7477954.story

Comment:

By Don McCanne, MD

The proponents of association health plans (AHPs) claim that they will make health insurance affordable for small businesses by using the power of group purchasing in the private insurance market. The Pacific Business Group on Health, through PacAdvantage, has demonstrated that group purchasing by itself has no impact on controlling health insurance costs.

AHPs will achieve premium reductions only by stripping plans of benefits and shifting more out-of-pocket expenses to patients. Destroying the financial security provided by insurance is no solution to our nation’s health care financing crisis.

There are two important lessons from PacAdvantage’s downfall. Establishing separate pools for selected sectors creates inequities since pools that cover higher-risk individuals will inevitably fail (death spiral). More importantly, a fragmented system of multiple pools (e.g., private insurers and public programs) has almost no control over the systemic problems that result in continuing health care cost escalation. In contrast, the administrators of a single universal risk pool could use their monopsony to finally bring health care costs under control.

It's time for healthcare for everyone

By Frederick S. Mayer, R.Ph., MPH
Aug 7, 2006

The United States will spend more than $2 trillion on health care this year, which is more than enough to pay for comprehensive health care for everyone. That includes $200 billion (10%) on prescription drugs. Yet we will continue to see adverse health outcomes, including death, because millions are finding that health care is simply unaffordable. It is a national disgrace that people will die merely because they could not afford to purchase their prescriptions and other essential care, even though we are spending enough to provide for them.

The problem is not the affordability of drugs; the problem is the highly flawed and fragmented system with which we fund all health care, including drugs. We depend not only on public programs such as Medicare and Medicaid, but also on private plans, both employer-sponsored and individually purchased. Charity, intended or not, and public clinics and hospitals represent other major sources of funding.

Rather than the affordability of health care, much attention has been directed to the affordability of insurance plans. For tens of millions of Americans, insurance is simply unaffordable, and they go without coverage. For those who do have insurance, more costs are being shifted to the individual to control the prices of premiums. Some of this is in the form of reduced benefits, such as more restrictive formularies, but a greater portion of the shift is in the form of increased cost-sharing. Typical of these user fees that are applied at the time of accessing services are the high co-pays, out-of-pocket expenses, and step formularies required with upper-tier drugs.

The problem with these trends is that health care has become unaffordable for precisely those individuals with the greatest healthcare needs. Medical bills are a major cause of half of all bankruptcies in this country, and two-thirds of those individuals had insurance. Health plan innovation has slowed the rate of premium escalation, but it has done so at the expense of greatly diminishing the financial security that insurance should be providing.

Since we are spending enough to provide comprehensive care for everyone, and yet so many fail to receive the care they need, it is obvious that much of our health spending is not providing value. Where is the waste? One major source of waste is that our fragmented system of funding care is administratively complex for the payers, and it places an even greater administrative burden on the healthcare delivery system. Hundreds of formularies administered by innumerable PBMs are obviously much more burdensome than a single, comprehensive, national formulary for evidence-based Medicare (EBM), which would automatically include everyone and would use a single automated billing system.

Healthcare systems with a strong primary care infrastructure have been demonstrated to provide higher quality care at a lower cost. Yet primary care is in dramatic decline in the United States. A unified system of funding care would establish incentives to encourage expansion of the primary care infrastructure.

Many studies have confirmed that allocation of our healthcare resources is flawed. Some geographical regions are underserved, but others have excess capacity in high-tech services. It has been shown that this excess capacity results in a significant increase in the delivery of high-tech services without any commensurate improvement in health outcomes—and frequently with lower quality and patient-satisfaction ratings. A single funding system would provide data that would identify these wasteful deviations, enabling the application of appropriate adjustments in resource allocation.

We spend more for health care here than in other countries. A single monopsonistic purchaser for the healthcare system could negotiate fair prices. For pharmaceuticals, negotiations would cover costs, fair profits, innovation, and research expenses but would exclude waste such as excessive marketing expenses. Physicians would be able to negotiate appropriate rates, and hospitals would negotiate global budgets. Americans want a first-class healthcare system, so they’d support the funding of legitimate costs and fair profits, just as they support the funding of schools, highways, and police and fire protection.

Several decades of reform efforts have demonstrated that building on our flawed system of funding health care has only increased costs while leaving too many without access to affordable care. We have enough money to pay for health care for everyone. We need only the political will to dismiss the incompetent insurance middlemen running the system and replace them with a single national health insurance program. With our own public system, we would finally be in a position to demand high-quality healthcare products and services for everyone.

THE AUTHOR is past president of the California Public Health Association and president of Pharmacists Planning Service Inc. (PPSI), San Rafael, Calif., ppsi@aol.com

Blue Cross comingles professional fees and business referralfees

Judge Denies Preliminary Injunction In CHA Lawsuit
Medical News Today
August 4, 2006

Los Angeles County Superior Court Judge Carl J. West has rejected a request from the California Hospital Association (CHA) to prohibit Blue Cross of California (Blue Cross) from paying differing fees to physicians who perform colonoscopies in hospitals and ambulatory surgical centers (ASCs).

The CHA filed suit against Blue Cross in June, claiming its practice of paying an additional fee to network physicians who perform colonoscopies at ASCs and less for those performed in hospitals amounted to an unfair business practice that could prove harmful to patients.

In denying a request for a preliminary injunction against Blue Cross, Judge West declared that the CHA has “provided no evidence demonstrating that the policy will interfere with a physician’s medical opinion as to what is best for his or her patient.”

According to Blue Cross, the price range for these procedures is dramatic.
Hospitals typically charge two to three times more for a colonoscopy compared to ambulatory surgery centers.

“Judge West’s ruling goes a long way toward recognizing that the CHA lawsuit is really a matter of potential lost revenue for hospitals, not about patient safety,” said Josh Valdez, senior vice president of health care management for Blue Cross of California. “We strive to ensure our more than
7 million enrollees statewide receive quality health care. This policy is intended to eliminate cost barriers for our members and create an environment where patients can receive this important procedure in as convenient a manner as possible. Encouraging procedures such as colonoscopies to be performed in an ASC is consistent with that mission.”

http://www.medicalnewstoday.com/medicalnews.php?newsid=48758

Comment:

By Don McCanne, MD

Advocates of universal public insurance often dismiss, or maybe even condemn, one of the attributes of private, for-profit insurers: they make excellent business decisions. Paying physicians a modest fee for agreeing to use a lower cost facility saves Blue Cross millions of dollars, part of which will be used to slow the rate of premium increases for Blue Cross members, and part to improve the return for their investors. In the amoral world of the business community, this is exactly what they should be doing.

What about the physician? Is accepting an explicit payment that is dependent on which competing facility you will use, and not related to the professional services rendered, an amoral act? If the physician also has a proprietary interest in that facility, is accepting profits for this self-serving referral also an amoral act?

Commingling business income with professional income is troubling. Many of us would insist that the physician fee be the same for the same service, and not dependent on the facility used. Some of us would insist that the competing facility be non-profit thereby avoiding the self-referral conflict of interest. Others would take the opposite view that, in this age of third party control of compensation, any additional business arrangement that can increase physician income should be acceptable.

Under a single payer system, during price and fee negotiation, it is difficult to know the extent to which an amoral business ethic would be interjected. But one thing is certain, the process would be based on what is in the best interests of the patients and what is fair for the health care providers, and not what is in the interests of the private insurers.

Doctor's Order: Tell It Like It Is

Seven Days – Vermont’s Alternative Newsweekly www.sevendaysvt.com
(published 08.09.06)

Republican two-term Lt. Gov. Brian Dubie has been leading a pretty charmed life as a GOP candidate in the anti-George W. Bush Green Mountains, and there’s no sign of his luck changing anytime soon.

In fact, same goes for that other guy on the GOP ticket, Gov. Jim Douglas. The Vermont Republican Party’s electoral success at the top ranks of state government in the post-Howard Dean age is one of the GOP’s greatest and most unheralded outside-the-Beltway success stories.

And many local pundits saw Doobie-Doo’s Lite-Gov reelection odds improve significantly with the surprise entry into the race of a particularly articulate and well-educated Progressive Party candidate. In fact, Marvin Malek, M.D., is a real-life doctor on the front lines of health care. He wears the hat of director of Barre Internal Medicine.

A doctor running for lieutenant governor? Hmm. That’s pretty rare. Let’s see, it happened once before — 20 years ago. A little guy from Burlington. Made house calls.

What ever became of him, anyway?

Seriously, folks, Candidate/Dr. Malek is not, like his medical predecessor, harboring secret dreams about one day calling 1600 Pennsylvania Avenue “home.” He does, however, intend to be around long enough to see the universal health-care system he dreams of come into existence in the land he loves. And the straight talk Doc Malek offers just might be medicine to everyone’s fears.

Look, yours truly has been writing about “health-care reform” since the 1980s. This “commission” here, that “task force” there.

But 20 years later, America still has the most bloated, expensive, complicated and wasteful health-care system on Earth. Only lately have a few brave souls decided they will no longer ignore the 800-pound gorilla in the corner of the room — the private health insurance industry that simply has to take its cut.

David Sirota, one of the leaders of a new generation of straight-talking political writers with Capitol Hill experience (he served on Bernie Sanders’ congressional staff), hit the ol’ health-care nail on the head in a Monday column in the Washington Times.

“Here’s an idea rarely discussed in our nation’s capital,” began David. “Health insurance should not be a for-profit industry.”

Sirota noted that study after study shows government-run health-care systems such as Medicare and the Veterans Administration deliver “better, more cost-efficient health care” than does the for-profit health-care industry. The patients are happier and healthier, too.

And poll after poll shows that’s the way Americans want to go. Everybody knows the for-profit insurance companies will always try to squeeze out the biggest profit possible. It’s the nature of the beast. As Sirota put it, “Follow the money.”

That explains why in the last six years the health insurance industry has donated more than $370 million to politicians. And Sirota points out that Pennsylvania Republican Sen. Rich Santorum was last year’s No.
1 recipient. Guess who was No. 2?

New York Democrat Hillary Clinton!

Obviously, folks, Big Health Insurance has had this game wired for a long, long time. But Sirota, a brave new voice himself, cites other new voices such as Sen. Byron Dorgan of North Dakota and Physicians for a National Health Care Program — www.pnhp.org.

“These and other leaders are breaking the silence and addressing the taboo subject of making health care off-limits to profiteers,” writes Sirota. “And the louder their voices get, the closer this country will be to getting the not-for-profit health-care system its citizens want and deserve.”

Dr. Malek, the rookie Progressive in the Gov-Lite contest, told us he is a member of Physicians for a National Health Care Program. Surprise, surprise! There are thousands more like him.

Malek is single and originally from the Buffalo, New York, area, a blue-collar kid who went to medical school. He moved to Vermont almost six years ago. Likes the people and the mountains. He calls it the “best decision of my whole life.”

Turns out Doc Malek has been asking the Sirota Question for quite some time. Why do we need this useless layer of bureaucracy jamming things up so that Big Insurance can profit from healing the sick?

Legalizing booze, you may recall, put bootleggers out of business.
Ending Prohibition in 1932 meant booze in America became available and affordable again.

Wouldn’t legalizing universal health care, making it a right of citizenship, do the same for the health insurance bootleggers, while making health care available and affordable to all Americans?

“The biggest source of waste in the health-care system that you can get rid of without anybody missing a doctor visit or anything is the waste in the insurance companies,” said Doc Malek. He mentioned all the “advertising” and “lobbying” they do.

And when they do “strategic planning,” the Progressive physician told us, “what they’re really doing is figuring out which people they don’t want to insure, which people they do want to insure because they’re better health risks, and whether to have a $10-thousand deductible or a $3-thousand deductible.”

Candidate Malek called the for-profit health insurance industry “a complete waste.” He told us of the extra cost, staff-wise, it adds to his medical practice and that of every doctor out there. Each insurance company has different forms, requirements and procedures.

A great system, eh?

Incidentally, the two Ds in the race, House Health Care Committee Chairman John Patrick Tracy of Burlington and State Sen. Matt Dunne of Windsor County, are not conceding defeat.

Tracy scoffed at the suggestion that Malek the Prog would be good for at least 10 percent of the popular vote in November.

“If you want determination, look at what I’ve done!” said Tracy, referring to the Catamount Health legislation that Gov. Douglas signed.
Tracy’s “damn proud” of it, though he readily concedes, “It’s not perfect.”

“We could have walked away from the table,” he said, “but it would have meant 20,000 uninsured Vermonters would not be getting insurance starting in October of next year.”

Sen. Dunne acknowledged he voted for the bill Tracy calls “landmark”
legislation on his website. But Dunne did not share John-John’s enthusiasm.

“I don’t think anyone believes it’s a solution to the health-care crisis we have,” said Dunne, “and I share many of Dr. Malek’s concerns that it’s not financially sustainable.” Dunne added, “No one should be putting up a banner that says, ‘Mission accomplished.'”

Interesting.

Union of Government Workers Seeks to Build Political Muscle

By STEVEN GREENHOUSE
The New York Times
August 11, 2006

The American Federation of State, County and Municipal Employees announced plans yesterday to spend $60 million more a year to campaign for universal health coverage, to unionize 70,000 workers annually and to register 280,000 union members to vote.

The union, the largest of the 53 unions in the A.F.L.-C.I.O., announced what it called a 21st Century Initiative, pledging to become one of the most aggressive unions in organizing and in politics.

With this initiative, the union appears to have taken to heart criticism that organized labor has been lackadaisical about seeking to reverse its decline.

“We looked at ourselves in the mirror and decided that we needed to change,” the union’s president, Gerald W. McEntee, said in a news conference in Chicago. He said the union planned to increase members’
dues by $12 million in 2007, $36 million in 2008 and $60 million in 2009. That would give it a far larger budget to build political power, increase public support for public services, expand the union, and intensify member involvement.

Mr. McEntee, who is chairman of the A.F.L.-C.I.O.’s political committee and has been one of labor’s foremost critics of President Bush, said his union would get 40,000 union volunteers to work in this fall’s campaign and to ensure that 90 percent of the union’s 1.4 million members were registered to vote. Currently, 70 percent are.

“The simple fact is workers are under attack by the most antiworker president and Congress in our history,” he said. “We face budget cuts, service cuts and benefit cuts.”

He said too many workers have had to forgo wage increases to maintain their health benefits. He also complained that Republican governors in Indiana and Missouri had stripped many government workers of their ability to bargain collectively.

The union is planning a campaign to tell the public and government leaders about the value of public employees and services. As a union of government employees, the state, county and municipal employees are especially hurt by budget cuts and the privatization of services.

To increase its political clout, Mr. McEntee said the union hoped to persuade a quarter of its members to donate at least $100 a year to the union’s political action committee, which would yield about $35 million a year.

Mr. McEntee said the union organized 33,000 workers last year, and in the past two years, tens of thousands of home health care workers and child care workers in California, Iowa, Oregon and other states.

The union took the lead among labor unions in beating back Mr. Bush’s plan for a partial privatization of Social Security. Mr. McEntee said his union would push for Canadian-style universal health coverage but acknowledged that the nation might not be ripe for such an idea.

HSA/HDHPs may actually reduce price sensitivity

How Much More Cost Sharing Will Health Savings Accounts Bring?
By Dahlia K. Remler and Sherry A. Glied
Health Affairs
July/August 2006

Proponents of health savings accounts (HSAs) contend that they will reduce medical expenditures. In practice, however, the effect of HSAs, and the high-deductible health plans that must accompany them, will depend on the actual provisions of those plans and of the plans they replace. We show that typical plans in the market today already contain substantial cost sharing.

We find that many HSA/high-deductible arrangements would actually reduce cost sharing for many groups. In particular, the group responsible for half of all medical spending would see no change or a decline in cost sharing at the margin and on average.

http://content.healthaffairs.org/cgi/content/abstract/25/4/1070

Comment:

By Don McCanne, MD

The rationale given for health savings accounts (HSAs) with HSA-qualified high deductible health plans (HDHPs) is that the HSA controls excess health care spending by making the patient sensitive to the costs while the HDHP simultaneously provides protection against catastrophic financial loss. Does it work?

This study demonstrates that insurance products have already evolved into models that create price sensitivity through deductibles and coinsurance.

For the 80 percent of individuals who use 20 percent of health care services, the HSA component provides about the same amount of financial disincentive to care as do our other current insurance products.

Much more important is the maximum out-of-pocket (OOP) spending that is required before the HSA-qualified HDHP provides “100 percent coverage” of all remaining costs (though only theoretically). Once the maximum is reached, price sensitivity is removed from the 20 percent of people who use 80 percent of our health care services. Obviously then, under the HSA/HDHP model, price sensitivity has almost no impact on much of our health care spending. In fact, the coinsurance of current PPO-type coverage actually may provide greater cost sensitivity for the larger medical bills since the maximum OOP spending is frequently greater or even without limit.

So what would you have to do to create HSA/HDHP cost sensitivity for where the real spending occurs? You would have to establish a very high OOP spending maximum before 100 percent coverage kicks in. Even then, a sick person wants relief, not discounts. The problem is that anyone who needs a significant amount of health care would then be exposed to catastrophic losses. The model doesn’t work.

The good news is that the policy community understands the fatal flaws in the HSA/HDHP model. Now we need to get the politicians to quit flogging that dead horse and get on with real reform. Maybe we can convince them that we’re serious – this November.

SCHIP's success, and failure

Number of Uninsured Kids Declines as Enrollees in State Health Insurance Programs Increase
Robert Wood Johnson Foundation
Aug 9, 2006

Even though the total number of Americans without health insurance is on the rise, a new study analyzing government data suggests good news for the nation’s children. The percentage of uninsured kids in America has decreased by 20 percent since the government-funded State Children’s Health Insurance Program (SCHIP) was approved by Congress in 1997.

“The State of Kids’ Coverage” was released today by the Robert Wood Johnson Foundation (RWJF). The report shows that the number of uninsured children has decreased by 2 million since the creation of SCHIP and recent expansions in public programs. In the same period, the number of uninsured Americans has increased by nearly 5 million people.

The percentage of children who have private health insurance has fallen by five percent since 1997-98. That means 1.4 million fewer kids have private health insurance.

The report shows that even though the number of kids with private insurance is declining, public coverage programs have expanded, resulting in more kids being insured. The percentage of kids enrolled in public health coverage programs has increased by 31 percent since SCHIP programs began-meaning at least 5 million more kids now have public coverage.

Despite the success of public programs, millions of children remain uninsured. The latest Census data show that nearly 8.3 million children remain uninsured nationwide. Experts say that more than 70 percent of these children are likely eligible for low-cost or free health care coverage through SCHIP or Medicaid, but have not yet enrolled.

Additional findings show that being uninsured for all or part of the year can have serious consequences for kids:

* Uninsured kids are twice as likely not to receive any medical care in a given year, compared to children with insurance (12.3 percent insured vs.
25.6 percent uninsured).

* More than one in three (35.0 percent) uninsured children do not have a personal doctor or nurse-which is significantly higher than children who have health coverage (13.5 percent).

“This report confirms that uninsured children face a disadvantage in their ability to access health care, compared to children who have health coverage,” said Sarah Shuptrine, national program director for the Covering Kids & Families program. “When children do not make regular visits to the doctor, or receive medical attention when it is needed, they risk minor illnesses becoming major ones. Children need health coverage so that they receive all the care they need, when they need it, to grow and thrive.”

http://www.rwjf.org/newsroom/newsreleasesdetail.jsp?id=10424

Comment:

By Don McCanne, MD

Expanding health insurance coverage for children is good. Program design that results in over 8 million children being left without coverage is bad.

Some of the reasons that not all children are covered include the fact that the programs have a family income limit for eligibility, SCHIP usually requires the payment of a premium, and participation is voluntary and requires action on the part of the parents to enroll. Barriers such as these will always prevent 100 percent participation. In spite of greater efforts to expand enrollment, four-fifths of previously uninsured children remain without coverage.

All barriers should be removed. Health insurance enrollment should as automatic as the recording of a birth certificate, not only for all children, but for everyone.

San Francisco Mayor Signs Health Access Program Into Law

Coverage & Access | [Aug 09, 2006]

San Francisco Mayor Gavin Newsom (D) on Monday signed into law a program to expand health care access to the estimated 82,000 uninsured city residents, the San Francisco Chronicle reports (Vega, San Francisco Chronicle, 8/8). The San Francisco Health Access Program, proposed on June 20, would not provide health insurance but would give uninsured adults access to the same network of doctors and hospitals, as well as surgeries and drug benefits that other workers in the city have. The goal is to reduce health care costs by emphasizing primary and preventive care, according to Newsom. San Francisco’s Board of Supervisors will vote on the plan later this month, though Newsom said he does not need the board’s approval to proceed with the program’s implementation. The program would cost the city an estimated $200 million in the first year, much of which would be redistributed from existing city programs serving the uninsured and low-income residents. Newsom said he “assume[s] costs will increase” but hopes that the city will not “need to do this in five or six years” because the program will be “replaced by some rational national strategy” (Kaiser Daily Health Policy Report, 7/7). Newsom said implementing the program will be “the most complex” aspect of the plan (San Francisco Chronicle, 8/8).