Posts Tagged ‘uninsured’

Insider Update: Summing up the Summit

Friday, February 26th, 2010

After seven hours of debate, parties agree to disagree on whether they are close to agreement

As expected, no new consensus emerged yesterday from the seven plus hours of debate between top Congressional Democrats and Republicans and the President about what was wrong with the nation’s health care system and how to fix it. Despite the Democratic mantra that “we’re not that far apart,” what did emerge was greater clarity about exactly where the differences lie and why they cannot be bridged.

First, there is a fundamental difference between the parties on the issue of how to address problems in the health insurance industry. The proposal being advanced by President Obama and Congressional Democrats contains a strong program of insurance reform including:

  1. Eliminating pre-existing condition exclusions
  2. Setting minimum standards for coverage
  3. Requiring insurers to spend at least 80% of the premium dollars they collect on health benefits
  4. Prohibiting insurers from charging people more because they are sick (or because they are female) and limiting variation based on age
  5. Increasing the ability of state and federal regulators to block excessive and unjustified rate increases

In stark contrast, the proposals advanced by Congressional Republicans would give insurers increased ability to create pools of healthier enrollees, which would lower costs for some but would result in higher premiums for people who are older or sicker.

Anyone? Anyone?

The second major difference is on coverage. According to the Congressional Budget Office, the president’s plan would reduce the number of uninsured by more than 30 million people while the ideas offered by Republicans would insure only around three million (Community Catalyst’s latest paper explores these issues). The President might as well have been the teacher in “Ferris Bueller’s Day Off” given the deafening silence that followed when he asked if there was any way the Republicans could see themselves moving beyond the minimal coverage expansion in their plan.

At the close of the summit, President Obama offered to continue the dialog with Republicans but with the precondition that they rethink their position on these two key issues. House and Senate Republican leaders were quick to decline the invitation, leaving only one path to real reform: Democrats in Congress have to come together to pass a bill by majority vote; the sooner the better.

Moving Right Along

Over the next few days House and Senate leaders will need to consult with their members and with each other to lay out the parliamentary path forward. This “inside baseball” will have to get worked out by the House and Senate leadership and the White House. What matters most is not the sequence, but the outcome.

Keep fighting the good fight

Advocates need to continue to make the case for comprehensive reform. You can help by signing this online petition that is being sponsored by the American Cancer Society/ Cancer Action Network, Community Catalyst, and many other national organizations:
www.healthcarepetition.org/10707_communitycatalyst

-Michael Miller, director of strategic policy

Health Reform and the Education of David Stockman

Monday, January 11th, 2010

You have to be of a certain age to remember David Stockman (fame being fleeting and all).  Back in 1980, Stockman was a young conservative Congressman from Michigan, a true believer in supply side economics, who became Ronald Reagan’s first OMB Director.  Stockman thought that he could shrink the federal budget by “curtailing weak claims instead of weak clients,” a phrase he coined at the time to allay fears that he would trim the budget on the backs of the poor.

But powerful entrenched special interests repeatedly thwarted his efforts to cut down on their federal gravy train, eliminating even the appearance of balance to the cuts the Reagan administration made to on federal assistance to the poor.  “The Education of David Stockman,” a candid 1981 portrait of his efforts and growing disillusionment that ran in The Atlantic Monthly, kicked up a political firestorm and landed Stockman in the Reagan doghouse. In the end, Stockman found out it was much easier to curtail weak clients after all.

Enter health reform.  In an effort to keep the cost of reform down, keep powerful special interests at the table and unable to agree on sufficient revenue sources anyway, Congress has deferred the start of most of the coverage provisions in health reform for three to four years. Mindful that this is a weakness in the proposal, both Congress and the Obama administration have been working to identify provisions that could begin to make a difference for people in the short-run without running up the price tag of the bill.  Most of what they’ve come up with is improvements aimed at helping those who are un- or under-insured as a result of a major medical condition.  Admirable as these provisions are, they’re no answer to the tens of millions of Americans who lack coverage not because of their health status, but because they simply can’t afford the premiums.

One exception is a little remarked-on provision that would require non-profit hospitals—recipients in billions of dollars in federal tax advantages—to be more transparent in their provision of charity care and set some modest limits on what hospitals can charge the uninsured (for instance, non-profit hospitals would be banned from charging the uninsured more than they charge the insured – a common practice now).  The provision, added by the Senate Finance Committee, has been non-controversial until now, but recently the powerful American Hospital Association has launched an effort to kill it.

In polling conducted by Lake Associates in November 2008, Community Catalyst found that an overwhelming majority of the American public support requiring non-profit hospitals to provide charity care to those who can’t afford it, be held to price regulations, and to communicate transparently with their communities about their policies–all provisions included in the Senate health reform bill. These are small measures with big impact, since charity care often means the difference between getting treated or going without for uninsured people with serious illnesses and conditions. The Institute of Medicine and other researchers have found that 20,000-40,000 people die every year from lack of coverage while millions more suffer from unnecessary illness and financial distress—facts cited on the floor by Congressional leaders to support reform.

And yet, the uninsured are still standing at the back of the line when it comes to reform. These mostly low-wage American workers are the very definition of a politically weak client group, but one with a powerful moral claim.  Will what little short-term protection that remains on the table for them survive the legislative sausage-making process, or will the lessons David Stockman learned once again hold sway?

–Michael Miller, director of strategic policy

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

The elephants give birth to a mouse

Friday, November 6th, 2009

At the last possible moment, House Republicans have unveiled their alternative health reform package. The proposal is a jumble of old ideas that does next to nothing to address the rising numbers of uninsured, provide health security to middle-income families, or prevent insurers from cherry-picking only healthy risk.

Republican leaders defended their proposal’s meager impact on reducing the number of uninsured by saying that it is only meant to reduce costs, but even on these terms it does less than the Affordable Health Care for America Act (the House leadership plan).

According to the nonpartisan CBO, the House Republican plan would reduce non-group premiums by about 5-8 percent. MIT health economist Jonathan Gruber recently analyzed CBO data on AHCA, and found that even for those purchasing coverage without a subsidy, the House plan would do better, reducing premiums by about 12 percent while simultaneously providing better benefits. For those eligible for subsidies, the reduction is of course much greater.

CBO also found that the Republican alternative would only cover about 3 million people—compared to 36 million covered by AHCA—and still manages to reduce the federal deficit less than AHCA does.

So minimal is the Republican plan when weighed against the challenges confronting our health care system that one analyst dubbed it “the dollar store version of health reform.”

Since the plan has no chance of passage, one has to wonder if the primary motivation for introducing it was to further delay CBO scoring of the Senate measure. By this criterion, at least, it can be judged a modest success.

–Michael Miller, Director of Strategic Policy