Posts Tagged ‘minimum benefit standards’

Cross-coast Post: Real Choices

Thursday, June 10th, 2010

From our friends over at the Health Access Blog comes a great post about a California bill, SB890, that would implement many of the consumer protection pieces of national health reform early, like setting up strong medical loss ratios, so that insurers spend dollars on caring for people, not admin and profits, and creating minimum benefit standards in the private insurance market to help consumers make good comparisons. Here’s an excerpt:

By standardizing the benefits in the insurance market, consumers can make real apples-to-apples comparisons, forcing insurers to compete on price and quality rather than avoiding sick people. It ensures people know the kind of coverage they are buying, and what that plan actually covers. It prevents consumers from finding out too late that what their ailment isn’t covered. It prevents the worst forms of “junk” insurance, where patients are paying premiums and finding little value in return.

Read the rest of the post about how standardizing benefits allows for real choice at the Health Access Blog.

–Kate Petersen, Health Policy Hub

The Point

Tuesday, February 9th, 2010

While we were encouraging folks to write letters to local newspapers, telling stories about what health care reform means for people they know, we realized each of us here knows someone who would be helped by health reform passing.  Who reminds us that words like premium subsidy, out-of-pocket maximums and minimum benefit standards actually stand for other words: friend, parent, child, colleague.

So this week we begin to share why we’ve been drinking so much office coffee this past year, and spending more time connecting with the Congressional switchboard than with our families.

The first story is from Ann Rudy, a field coordinator here.

My mom, who is 60, works as a hairdresser in Texas. Her employer does not offer insurance to employees so my mom and her husband, who is self-employed, purchased policies on the individual market.  She has worked since she was 16 and has always been healthy.  Like many without an affordable insurance option, she rolled the dice when she purchased a high-deductible plan.  Unfortunately, she lost.

Several months later, my mother fell. By the end of the day, she was in pain and was having trouble moving one of her legs.  She thought she could ‘walk it off,’ but eventually she went to the ER in pain. She had shattered her hip.  After major surgery and a hospital stay, my mom is now chipping away at her $10,000 credit card bill.

National health reform could prevent this from happening to others, or to my mom again. Small businesses like my mom’s salon would get tax credits for offering insurance to their employees. And if they didn’t offer an affordable insurance option, she would be able to shop for a plan in the insurance Exchange, where companies would be required to make clear what a plan covers and how much it costs. (In Texas and other states, no such requirement exists right now.) My mom might have qualified for new subsidies to help with her premium and out-of-pocket costs. And new rules in the federal bills would set limits on out-of-pocket expenses, so someone who falls sick—or a healthy person who takes a fall—would never be asked to pay $10,000 of her medical costs from her paycheck, or on her credit card.


If you have a story to share about how health care reform matters to you, please email us at hub@communitycatalyst.org.

History lesson

Thursday, November 19th, 2009

Richard_Nixon_campaign_rally_1968When we talk about lessons learned, today’s health care reform efforts are often held up to the measuring stick of President Bill Clinton’s failed health reform proposal in 1993.

But an earlier national reform experience—President Richard Nixon’s attempts to pass a comprehensive health insurance plan in 1971 and again in 1974—provide an equally important cautionary tale as we reform supporters look at Majority Leader Reid’s bill today, with all its imperfections, and look at getting from here to the Rose Garden.

In 1971, Nixon came before Congress proposed a national health strategy that would have required all employers to provide employees coverage with minimum benefit standards, created subsidies for low- and middle-income families, established caps on cost-sharing for families, built state exchanges or pools for those ineligible for Medicaid or employer plans, and instituted cost containment measures. But Democrats rejected Nixon’s proposal.  It wasn’t universal health care, they said, and what we needed was universal health care.  By ’74, the common wisdom was that Watergate would sweep Nixon out of office, and the country would elect a Democratic president who would shepherd in Real Health Reform.

It’s been 35 years since Nixon proposed his Comprehensive Health Insurance Plan. Then, health care costs were just over 7 percent of the Gross Domestic Product; today, they account for over 16 percent.  In 1974, there were 25 million uninsured Americans Nixon sought to cover. Estimates suggest there are almost twice that many today.

While not perfect, Nixon’s bill is one that most any Congressional supporter of reform would call a big victory if passed today.  But it didn’t, in part because of opposition from progressives. And that opposition, so vocal then, can be heard again in today’s debate, saying this isn’t universal health care, and what we need is universal health care. And until we get that, we’ll just wait. “I would rather see us do nothing now,” former New England Journal of Medicine editor Marcia Angell wrote after the House bill came out, “and have a better chance of trying again later and then doing it right.”

But commentators like Ezra Klein have pointed out that things tend not to go like that. With each generation that passes on health reform, the vision gets smaller, and the political hurdles bigger.

“For a growing number of Americans, the cost of care is becoming prohibitive.  And even those who can afford most care may find themselves impoverished by a catastrophic medical expenditure…Things do not have to be this way. We can change these conditions–indeed, we must change them if we are to fulfill our promise as a nation. Good health care should be readily available to all of our citizens.”

That was Nixon, in 1971. His words and his health reform proposal came in the wake of the Great Society, when it was still widely accepted that government was on the side of the people.  It’s hard to imagine anyone in Republican leadership making such a promise today. With the exception of Sen. Snowe, those who lead the GOP today seem to deny, as dogma, a constructive role for government in the lives of ordinary people.

History should be corrective agent enough to show that scrapping the possible in favor of some more ideal plan at some future time is not the moral ground—it’s the opposite. Waiting means leaving millions of people at risk; people who are right now uninsured, who are unprotected by inadequate plans, or who are desperately holding onto employer coverage they risk losing in the worst jobs economy in generations.

History (and the ghost of Nixon’s health reform proposal) asks that we stay at the table and make these bills as good as possible.  But sometimes we need to remind each other of history, and how close it still is, and what is asking us to do.

–Kate Petersen, Health Policy Hub blogger

Photo credit: Wikimedia commons