Professional Documents
Culture Documents
Marcia Nielsen, PhD, MPH
Vice Chancellor for Public Policy & Planning
Office of Public Affairs
April 6th, 2010
2
Percent 75
50
32%
25 24%
0
2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009*
* 2008 and 2009 NHE projections.
Data: Calculations based on M. Hartman et al., “National Health Spending in 2007,” Health Affairs, Jan./Feb. 2009; and A. Sisko et al.,
“Health Spending Projections through 2018,” Health Affairs, March/April 2009. Insurance premiums, workers’ earnings, and CPI from
Henry J. Kaiser Family Foundation/Health Research and Educational Trust, E mployer Health Benefits Annual Surveys, 2000–2009.
Source: K. Davis, Why Health Reform Must Counter the Rising Costs of Health Insurance Premiums, (New York: The Commonwealth
Fund, Aug. 2009).
6
8000
United States
7000 Canada
France
6000 Germany
Netherlands
5000 United Kingdom
4000
3000
2000
1000
0
1980 1984 1988 1992 1996 2000 2004
Data: Organisation for Economic Cooperation and Development (OECD) Health Data 2009 (June 2009).
7
$210
NETH 1995
$422
2007
$228
AUS
$431
$317
GER
$542
$335
FR
$588 *
$319
CAN
$691
$385
US
$878
* 2006
Source: OECD Health Data 2009 (June 2009). Figures adjusted for cost of living..
8
complexity = high $516
transaction costs and $500
overhead costs
$400
▫ $90 billion per year*
$300
• Insurance and providers $247
$220
$198 $191
▫ Variation in benefits is $200
$140
hard to understand $86
$100 $76
▫ Expensive for doctors,
hospitals, and patients $0
US FR SWIZ NETH GER CAN AUS* OECD
Median
* 2006
Source: 2009 OECD Health Data (June 2009).
* McKinsey Global Institute, Accounting for the Costs of U.S. Health Care: A New Look at Why Americans Spend More
(New York: McKinsey, Nov. 2008).
ACCESS: ER Visit for Condition a Primary Care Doctor
Could Have Treated if Available, by Income
Percent
75 Below average income Above average income
50
19 21
25
12 14
9 11
6 5 6 6
0
United New Australia United Canada
Kingdom Zealand States
Source: 2004 Commonwealth Fund International Health Policy Survey of Adults’ Experiences
with Primary Care (Schoen et al. 2004; Huynh et al. 2006).
10
57
51 51
50 50
27 28
26
24 23
25 25
15
13
8 9
7 6
0 0
Source: 2006 Commonwealth Fund International Health Policy Survey of Primary Care Physicians.
11
1.5
1.0
0.5
0.0
Colorectal Lung Cancer Melanoma Breast Cancer
Cancer
NOTE: Odds ratios were adjusted for age, sex, race/ethnicity, facility type, region, and income and education on basis
of postal code. They represent the odds of being diagnosed with stage III or state IV cancer vs. stage I cancer.
Analysis based on cases occurring between 19982004.
SOURCE: Kaiser Family Foundation, based on Halpern MT et al, Association of insurance status and ethnicity with
cancer stage at diagnosis for 12 cancer sites: a retrospective analysis." The Lancet Oncology. March 2008.
12
22
20 20 20 20
20 19 19 19 19 19 19 19 19
20 18 18 18 18 18 18
18 17 17 17 18 18 17 17
17 16 16 16 16 16 16 16 16 16 16 16 16 15 15
15 15
14
10
0
ia
C ria
G ium
A ly
ce
D an d
he nd
U ing e
d
Sw i n
Po tes
Fr d
N ny
Fi d
Re ar k
Ir e l
itz an
te dom
us n
B da
Ic y
Ze ds
ic
a
c
an
an
n
a
al
e
Ita
ug
a
bl
ee
an
a
t
S w Jap
ew lan
a
la
ed
a
Sp
a
us
tr
m
m
g
l
nl
al
pu
el
an
St
or
rt
er
te Gr
el
en
er
d
A
K
et
ch
d
ni
N
ze
ni
C
U
50
0
Ze ria
Ca l ia
Au ta ly
Po o m
y
No da
y
De an d
Sw in
rk
n
l
ce
es
ite Ire d
Ki and
en
s
G ece
ga
th wa
an
pa
an
nd
ite m a
ra
t
na
an
at
ed
us
Sp
d
rtu
I
al
nl
Ja
re
l
r
la
st
St
ng
avg ian
Fr
n
er
Fi
er
d
w
d
Ne
Percentiles
Ne
Un
Un
8.1
6.0
5.2 5.4 5.6
5.0 5.0 5.0 5.0 5.1 5.3
5 4.4 4.4 4.5 4.5
4.1 4.1 4.1 4.2 4.2
3.3 3.5
3.0 3.0
2.2
0
ay
nd
St *
ly
nd
De um
Sw d
No n
Au ds
es
Ire l
nd
Po lia
Re tria
m
Fr n
Be ny
a
ng e
Ge lic
k
Fi n
ce
ga
ite and
U.S. 10th 25th Med- 75th 90th
ai
an
ad
ar
ec
pa
Ita
do
rw
ra
at
Ne erla
la
n
an
a
ed
b
a
rtu
i
Sp
nm
ec Aus
lg
ite Gre
rm
Ne Can
nl
la
pu
el
Ja
st
Un eal
avg ian
er
Ic
itz
d
Ki
Z
th
Sw
w
h
Percentiles
Cz
Un
* 2001.
Data: International estimates—O E C D H ealth Data 2005;
State estimates—National Vital Statistics System, L inked Birth and Infant Death Data (A H R Q 2005a).
16
Hispanic 5.6
10 9.5
Asian/PI 4.8 9.2
8.6
8.3
AI/AN 8.6
5.8
5.6
4.8
85
90
95
96
97
98
99
00
01
02
0 10 20
19
19
19
19
19
19
19
19
20
20
20
* For mothers age 20 and older.
PI = Pacific Islander; A I/A N = A merican Indian or A laskan Native.
Data: National Vital Statistics System—L inked Birth and Infant Death Data for infants up to one year (A H R Q 2005a; N C HS 2005).
17
A: Unfortunately, misinformation
abounds.
18
▫ a nonpartisan, nonprofit website… with “aims to
reduce the level of deception and confusion in U.S.
politics”
▫ A project of the Annenberg Center of Public Policy
at the University of Pennsylvania
▫ Directed by Brooks Jackson, a former Cable News
Network and Wall Street Journal reporter for 34
years
19
Dispute hinges on differing
interpretations of Commerce
Clause of the Constitution, which
gives Congress the power “to
regulate commerce with foreign
nations, and among the several
states, and with the Indian tribes.”
23
• Death panels • False finger pointing
▫ Paying for endoflife ▫ Illinois patient death not
counseling caused by insurance company
• Socialized medicine • Double trouble
▫ Wasn’t even considered
▫ Bankruptcy every minute
• Dictating to doctors
(not every 30 seconds)
▫ Comparative effectiveness
research • Puffedup premiums
• Breast cancer massacre ▫ Average family pays $200 for
▫ TV spot comparing US to uncompensated care shifted
Great Britain onto insured, not $1000
• “26 lies” emails • Saving $2500
▫ Viral email chain purporting ▫ Average family with group
untrue claims insurance would save from 0
to 3% on premiums
Source: www.factcheck.org
25
Final “questions” of
health reform debate
• Do insurance premiums up or down?
• Will we have government run health care?
• Can you keep your current health plan?
• Does the bill cut Medicare by $500 billion?
• Is this the largest middle class tax cut for health
care?
• Is medical malpractice biggest driver of health care
costs?
• Was the “Cadillac plans tax” a sweetheart deal for
unions?
Source: www.factcheck.org
26
• Will treat fewer uninsured • Agreed to give up at least $155
patients billion in Medicare funding over
• Millions more paying next decade
customers • A new independent commission
• Won guarantees to prevent will have broad authority over
Medicare spending, though
uncompensated care subsidies
doesn’t kick in until 2018
from drying up until the
number of uninsured decreases • Sharply expands Medicaid,
which reduces uninsured, but
• Medicare to pay high quality pays less than private insurers or
hospitals more Medicare
• Several pilot programs to test • Concerns about increasing
new payment schemes, patient census
including Accountable Care • Medicare to pay less for hospitals
Organizations with high readmission rates
33
Benefits Challenges
• Millions more paying • Industry will pay out $84.8
customers billion in new fees, rebates and
• Expensive biologic drugs get discounts over the next decade
12 years of exclusivity
protection from generics
• Prevented policies that make it
easier for Americans to buy
less expensive drugs from
abroad
• Prevented policies that allow
the government to negotiate
lower drug prices for Medicare
38
• Design and oversee insurance • Enroll newly eligible beneficiaries
Exchanges in Medicaid despite significant
• States allowed to tailor their budget cuts and limited
Exchanges allowing flexibility administrative resources (2014)
on abortion coverage • Coordinate Medicaid enrollment
with Exchanges
• Assistance with high risk pools
• Implement other Medicaid
for uninsurable adults
specific changes
• Maintain current Medicaid and
CHIP eligibility through 2019
• Implement new waste, fraud and
abuse provisions
• Consider demonstration projects
for tort reform
41
Bottom‐line:
• Federal health reform is not perfect – but real
progress, made of multiple compromises
• Health reform focused more on insurance than
health care – more on health care costs is
needed
• Health reform phased in over several years – but
some important provisions kick in this year
• Health reform included some provisions on the
health professions workforce – but there are
continued concerns about shortages
45