Tag: obamacare
When Will Democrats Bring A Fresh Vision To Our Debate Over Health Care?

When Will Democrats Bring A Fresh Vision To Our Debate Over Health Care?

As we head toward the mid-term elections, affordability has seized center stage in the health care debate, and for good reason. Americans of every class and health status are upset about the amount of money they must shell out to buy insurance and pay the extra bills that arrive after they get sick.

The ruling Republican regime is making things worse. Not only has it launched a full-scale attack on Medicaid, which covers nearly a third of all Americans, the latest White House initiative allows the insurance industry to sell low-cost plans on the Affordable Care Act exchanges that will pay only a fraction of the bills people receive after being hospitalized. If the regime gets its way, comprehensive insurance — the previous requirement for all Obamacare plans — will become unaffordable for almost everyone but the well-to-do.

Democratic Party-oriented think tanks and commentators continue to crank out proposals for making insurance more affordable. A new report from the Searchlight Institute, first reported by Jon Cohn of The Bulwark, calls for limiting private equity’s role in health care; limiting insurers’ ability to abuse prior authorization or hide profits at their wholly-owned physician practices; and wielding antitrust law to bust up hospital and pharmacy benefit manager monopolies.

Last week, Nobel laureate and substacker Paul Krugman laid out his path forward for dealing with the affordability crisis. His three-part explainer started by laying out “why universal healthcare is a desirable objective, and why some type of government intervention is essential to achieve it.”

His second installment described the ongoing Republican assault on Obamacare and its successes. But his final piece, rather than offering a bold or unique plan, or even something like the European countries to which he unfavorably compared the U.S., repeats most Democrats’ long-standing plea for including a public option on the exchanges.

A public option would allow people to buy into Medicare. Progressive groups have been advocating this for decades. The House-backed version of the Affordable Care Act in 2009 included a public option. He imagines many employers would encourage their employees to avail themselves of this new option (presumably providing them with some or most of the cost of the buy-in). “If they like what they get, which they probably would, we could transition over time to a single-payer system without forcing Americans into it,” he wrote.

Shortcomings

Krugman fails to address the virulent opposition that would be mounted against the public option by the hospital, insurance, drug and medical device industries, and the many other types of providers (nursing homes, hospice, ambulatory surgical centers, etc.) that make up the medical industrial complex. Nor does he take into account the main reason employers resist jettisoning their role: It keeps many employees from job-hopping.

Krugman assumes public anger over rising costs will overwhelm their opposition, a dubious proposition in my view even if the Democratic Party wins control over both houses of Congress and the White House. Why do I say dubious?

It is well known that health care accounts for 18 percent of gross domestic product, far more than other industrialized countries. What is less well known is the fact that direct health care provision accounts for 12 percent of all employment in the U.S. It is the largest or second largest employer in almost every city and town. In at least one recent month, the nation would have shed jobs had it not been for growth in the health care sector.

If you throw in employment in the health insurance industry, manufacturers of drugs, medical devices and durable medical equipment, and the small army of consultants, medical educators, think tankers and other health care hangers-on, about one in six American jobs flows from our bloated health care sector. Moreover, they are evenly distributed throughout the country, constituting a powerful voice in every Congressional district.

Reformers need a way to win providers — not the hospital system administrators, not the insurance company executives, not the nursing home operators; but the physicians, nurses and nurse aides, support staff, and more — to their side.

That’s why I am committed to a strategy that provides the health care sector with an off-ramp from its unproductive and wasteful ways. The system is tremendously successful at generating new technologies and treating highly complex cases. But it stinks at almost everything else that the general population needs.

It consumes more societal resources than any country on earth. It doesn’t cover everyone. Its multi-payer complexity requires enormous administrative overhead. Its specialty-driven, fee-for-service payment system delivers more pricey tests and operations than people need. It shortchanges primary care and prevention. It generates worse outcomes than other countries whether measured by longevity, infant and maternal mortality or chronic disease levels. And those lousy outcomes are extremely unfair, with minority populations suffering far worse outcomes than their white fellow Americans. (I will address this issue in my next article.)

I agree with Krugman that the Obamacare exchanges need a public option for the uninsured and for any employer that wants to join. But the details, which he doesn’t address in his article, matter. Its pricing will have to be set at a percentage somewhat larger than what Medicare pays, which is what Washington state did when it became the first state to roll out a public option in 2021 (at 160 percent of Medicare prices). Colorado and Nevada have followed suit with their own higher-than-Medicare priced public options.

Providers need a guaranteed off-ramp. They and their millions of employees can’t absorb the sudden shock to the system required by the mass migration to the public option at Medicare rates, which, according to the Medicare Payment Advisory Commission, are somewhat below breakeven rates. Therefore, in addition to creating the public option, providers need to be regulated through government-set budgets that are set at current levels and guaranteed to grow, but only at a slower rate than the rest of the economy.

Over the past several decades, health care spending has risen faster than the rate of economic growth, ballooning from 13 percent of GDP at the start of this century to 18 percent of GDP today. If budgets are allowed to grow at one to one-and-a-half percentage points above inflation (that’s about half the economic growth rate), U.S. health care spending will gradually decline to international norms.

Invest in health

What else would guaranteed budgets accomplish? It would free hospitals, physician practices, clinics and other provider organizations from the treadmill of fee-for-service medicine, where the more you do the more you make. It would free up resources to invest in the nation’s woefully underfunded primary care and behavioral health providers.

It would encourage provider organizations to invest in community outreach to underserved populations suffering from undiagnosed and untreated diseases (think hypertension, pre-diabetes, obesity, and drug, alcohol and tobacco addiction). If we treat disease before its complications set in, people will spend less time in the emergency room, where care is costliest, and often comes too late to affect the trajectory of their chronic condition.

In short, the nation’s health care system needs to transform itself into one that promotes health, not one that profits when more people get sick. The Make American Healthy Again movement has that part right. Reformers on the left should grab that page from their playbook by providing a positive vision for how to produce healthier individuals as well as a plan to reduce how much the public has to spend.


Gallup Poll: Public Satisfaction With Health Care Costs Hits New Low

Gallup Poll: Public Satisfaction With Health Care Costs Hits New Low

Public satisfaction with the cost of health care plans has hit a record low in a new Gallup poll released Monday—just as GOP legislation begins to go into effect, increasing costs for millions.

The poll found that just 16 percent of respondents are satisfied with the costs of health care—the lowest recorded number in the 24 years that the pollsters have asked the question. In fact, 29 percent of respondents said that cost is the “most urgent national health problem,” followed by access to care at 17% and obesity at eight percent.

Following the passage of President Donald Trump’s “One Big, Beautiful Bill,” Affordable Care Act subsidies are set to expire at the start of 2026, effectively raising the cost of health care for millions. And KFF estimates that, for people with marketplace plans, premiums will double if the credits expire.

No Democrats voted for the bill in the House or Senate.

Respondents who answered "Don't know" are excluded.Chart: Andrew ManganSource: KFF Health Tracking PollCreated with Datawrapper

...

Republicans have also opposed legislative attempts to fix the premium problem before the new year.

On December 11, Senate Republicans opposed a Democratic bill that would have added a three-year premium extension, meant as a stopgap until further congressional action. The proposal was filibustered by the party majority with a vote of 51-48 preventing further debate.

The defeat of the bill falls in line with decades of GOP opposition to health care reform. The party has spent more than a decade trying to repeal the ACA and has failed to offer a serious alternative.

At the same time, Trump has argued that the issue of affordability—which includes concerns about health care costs—is a hoax invented by Democrats. This is not true, and—as polls are showing us—Americans know it.

Reprinted with permission from Daily Kos

Trump Van Winkle, Obamacare And The 'Money-Sucking' Health Insurance Industry

Trump Van Winkle, Obamacare And The 'Money-Sucking' Health Insurance Industry

There is an old child’s tale about Rip Van Winkle. He fell asleep for 20 years and wakes up after the American Revolution and finds the world has changed in big ways. Donald Trump seems to be doing his own Rip Van Winkle routine. Yesterday, Trump suggested as an alternative to Obamacare, which he said feeds the “money sucking” insurance industry, that we just give money directly to people and let them buy their own healthcare.

This is a Rip Van Winkle story because Trump seems to think he has come up with a new idea. He apparently has missed the debate around healthcare reform that led up to Obamacare. He also apparently missed the debate on developing an alternative during his first term.While we don’t know exactly what Trump has in mind -- the plan will be ready in two weeks :), I hear -- there are fundamental problems with this sort of "just give people cash" idea. These problems push serious people, who have been awake, towards something like Obamacare or universal Medicare.

The basic problem of providing healthcare coverage is that some people have health conditions that are very expensive to treat, but most people are relatively healthy. If we just left things to the market, insurers will only cover healthy people. These people are very profitable for the industry, since they are basically just sending their insurer a check every month.

The problem is with the tens of millions of people who have health issues like diabetes, heart disease, cancer, or other conditions. These people are big money losers for the industry. They will avoid insuring them if they can or alternatively charge them tens of thousands a year for coverage. They may also contest making payments by claiming people had failed to disclose their health condition when they applied for insurance. I briefly went through the problems of the pre-ACA insurance market a few weeks back.

If Trump just gives people cash, it will do nothing to get around these problems. First, it is not clear which people he wants to give cash, and which cash. If he just means the enhanced subsides, he has around $35 billion a year to play with. Currently, around 22 million people get the enhanced subsidies, so that would imply checks of around $1.600 a year.

But there are another 28 million people currently without insurance, and another 2 million getting insurance in the exchanges without subsidies. Surely these people should be eligible for the Trump checks also. That would come to 52 million people sharing $35 billion, giving them each a check of less than $700.

Making the story even more complicated, people gain and lose coverage all the time, as they or a family member gets hired or leave a job with insurance. They may also gain or lose coverage for a government program like Medicaid. This means Trump has to figure out whether he will be sending out his checks once a year, giving many people a huge bonus and screwing those who lose their job after the cutoff date. Alternatively, this would have to be some sort of recurring payment, monthly or quarterly.

Perhaps Trump intends to take all the money going to Obamacare, not just the enhanced subsidies, which the Center on Policy Priorities puts at $125 billion, and roll it into his Trump checks. That would make them around $1,900 a year.

The next question is what Trump expects people to do with their money. A young healthy person may be able to cover their healthcare costs with $1,900 a year, but even these people would likely want insurance against the risk they may incur a serious illness or be in some sort of accident. Good luck finding insurance for $170 a month.

And the problem is far worse for older people and people with major health issues. In an unregulated insurance market, these people would be paying thousands of dollars a month for their insurance. Their Trump check will not go very far towards covering a premium of several thousand dollars a month.

Perhaps Trump plans to keep the Obamacare restrictions that require insurers to cover everyone, regardless of health condition, and prohibits discriminating based on health condition. That would limit the payments for people with health problems but still mean premiums that dwarf the size of the Trump checks, especially for those in the oldest pre-Medicare age bracket 55-64.

That would also put us basically where we are now except the checks would be smaller and untargeted, since all people without insurance, not just those enrolling in the exchanges, would be getting checks. Also, the current payments are adjusted by income. We don’t know whether Trump plans his checks to be income-based.

And in this story, the money would still be going to money sucking insurance companies, except presumably with less regulation so that the money sucking insurance companies could suck up more money. Under Obamacare, insurers have to pay out at least 80 percent of what they collect in premiums to providers, otherwise their customers get a rebate. Since Trump wants to get the government out of the picture, the insurers could presumably pocket even more money.

If Trump really wants to go after the money sucking insurance companies, getting them out of Medicare would be a great start. They mostly add cost to the program. He can improve the traditional program, adding dental, eyecare, and hearing coverage, and also imposing an out-of-pocket cap, and stop paying money sucking insurers in the Medicare Advantage program. Due to their higher administrative costs and profits, Medicare Advantage costs the government at least $100 billion a year compared to the traditional Medicare program.

If we’re really serious about cracking down on the money sucking insurance companies, why not go all the way and just provide universal Medicare. This would not only save the money directly paid to insurers, it would also eliminate much of the cost that hospitals, doctors’ offices and other providers have to incur dealing with complex forms from multiple insurers. This could save as much as $1 trillion a year ($8,000 per household) compared to what we pay now for administrative costs and insurance industry profits.

A universal Medicare system would also mean that everyone has access to healthcare regardless of where they work, what government program they qualify for, or if they remembered to pay their insurance premium last month. Not many would have expected Donald Trump to be the person to get us to Medicare for All, but if he really wants to crack down on money sucking insurance companies, that would be the way to go. Welcome aboard, comrade!


Mike Johnson

Republicans Still Yearn To Kill Obamacare, But Fear 'Political Disaster' If They Do

The standoff over the federal shutdown has exposed deep fractures within the GOP, particularly around health care — a longstanding vulnerability for Republicans.

The New York Times highlighted in a report Sunday that while Democrats insist they will not support a spending deal without extending the expiring tax credits under the Affordable Care Act (ACA) that safeguard coverage for millions, Republicans are split between ideology and electoral reality.

On one end, hard-line conservatives still press to eliminate the ACA outright; on the other, pragmatists recognize that wiping it out without a credible replacement could inflict “a political disaster” on their party, per the report.

The shutdown has forced the GOP into a public tug-of-war over what to do with a law they largely oppose but cannot realistically undo without major risk.

House Speaker Mike Johnson (R-LA) insisted the dispute is not about health care, calling Democrats’ insistence on subsidies a “red herring” that distracts from the funding fight.

At the same time, top Republicans such as House Majority Leader Steve Scalise (R-LA) pledged to vote against extending the credits, arguing they would “bail out insurance companies,” even as many recipients live in GOP-held districts.

At least 14 House Republicans and several senators signaled they would support a renewal of the credits through 2027, recognizing what some advisers called “a potential political catastrophe for the G.O.P.” if coverage were lost.

The report noted that the broader dynamic reveals why the party remains stuck. Even though Republicans have long pledged to “repeal and replace” the ACA, they have repeatedly failed to articulate what “replace” means in practice. The 2017 Senate health care bill collapsed amid conservative-moderate splits, leaving GOP leaders without an alternative mapped out.

According to the report, Democrats "have forced the G.O.P. to wrestle publicly with its divisions about what to do with the health care law, which most Republicans revile but many recognize would be impossible to unravel without bringing political disaster to their party.”

Reprinted with permission from Alternet


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