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A confounding, confusing regulatory regime after health reform kicks in

Good luck to stakeholders in navigating the health-regulatory labyrinth once health reform is implementing in the U.S. A report from PricewaterhouseCoopers (PwC) predicts, “A number of existing regulators will also have expanded roles as a result of the legislation.” These will be in addition to the new regulators identified by the law, which include but won’t be limited to: CMS Innovation Center Independent Payment Advisory Board Health Insurance Reform Implementation Fund Patient-Centered Outcomes Research Institute National Prevention, Health Promotion and Public Health Council Task Forces on Preventive Services and Community Preventive Services Community-based Collaborative Care Network Program Community Living Assistance

 

$18,074 is the medical cost for a typical family four in the U.S. in 2010

Today, $18,074 could cover… A new 2010 Honda Civic A year of college at Hampton University in Virginia The per capita income in Waterloo, NY. Or, you could cover health insurance for a typical family of four in America. In the past year, the average cost of health care for a family of four in the U.S. has increased by $1,303, the large single dollar increase seen in the past 10 years since the start of the Milliman Medical Index (MMI). The total medical cost for a family of four is $18,074 in 2010. Employers will pay, on average, 59% of the

 

Half of employers will offer consumer-directed health plans in 2015

The growth of consumer-directed health plans (CDHPs) continues as employers look for ways to rationalize their health spending in the midst of annual double-digit health cost increases. By 2015, 61% of large employers will off CDHPs. Overall, 45% of employers think they’ll be offering CDHPs in five years. These data were found through the Mercer National Survey of Employer-Sponsored Health Plans, sponsored by the American Association of Preferred Provider Organizations (AAPPO), published in April 2010. In 2009, 15% of all employers offered a CDHP: this grew from 10% in 2008. 18% of employers are likely to offer a CDHP this

 

Health cost increases will hit double-digits in 2010 – another reason for real health reform

So much for America’s ability to manage health care costs without health reform: health costs will increase in the double-digits this year, according to Buck Consultants‘ 21st National Health Care Trend Survey. This annual survey monitors medical trend — the factors that drive cost increases. These include inflation, service utilization, technology, adding new programs, changes in service mix, and benefit mandates. The chart illustrates that medical trend varies across plans — but not my much. High-deductible consumer-driven health plans expect growth of 10.4%: hardly a significantly lower rate of growth than for the most open, rich plans (PPO, POS). Buck

 

We’re #1: now, let’s behave like it

By Jane Sarasohn-Kahn on 14 October 2009 in Health Economics, Health reform, Public health

  Once again, the U.S. has earned a cup of goodwill from the world – and we can, once again, blow it, big time.   The 2009 Anholt-GfK Roper Nation Brands Index(NBI), which measures the brand equity of the world’s nations akin to product brand value, found that the U.S. is now #1 — rising to the top after languishing at #7 in 2008. Behind us are France, Germany, the U.K, Japan, Italy, and our sister to the north, Canada. Commenting on the study, Simon Anholt who founded the study observed, “What’s really remarkable is that in all my years

 

Geography is health insurance destiny

By Jane Sarasohn-Kahn on 12 October 2009 in Health disparities, Health Plans, Health reform, Public health

Where you live is a determining factor in whether you have health insurance. The darker green on the map illustrates states with the highest percentage penetration of people with private health insurance among people under 65. Note the concentration in the Upper Midwest, scattered Midwest, and bits of the northeast. It’s also helpful to live in Utah when it comes to health insurance coverage. The lowest proportions of privately insured Americans are in much of the south, from Florida west to Texas and into southern New Mexico, Arizona and much of California. The Urban Institute has studied health insurance coverage

 

What does a conservative shift in Americans mean for health reform?

By Jane Sarasohn-Kahn on 6 July 2009 in Health Economics, Health reform, Health regulation

Four in 10 Americans say they’ve become more conservative in the past 2 years. By a factor of 2:1, more Americans have turned more conservative versus more liberal. The shift for members of all three political parties has been to the right.     This right-shift finding comes from the Gallup Poll of June 14-17, 2009, on annual trends in Americans’ political ideology.   As of June 2009, 40% of Americans call themselves conservative compared to 37% in 2008. This is the highest level of self-described conservativism among Americans since 2004.   Why might this mean for health reform in 2009?

 

$16,771 is the cost of health care for a family of four in 2009

$16,771 is roughly the cost of health care for an American family of four in 2009, according to the Milliman Medical Index. If the median family income in 2008 was about $67,000, then health care costs represent about 25% of the annual household paycheck (remember, that’s gross, not net, income). As the chart illustrates, 1 in 3 health care dollars goes to physicians, with another third paid to inpatient services. Outpatient services and prescription drugs consume 15-17 cents on the health dollar in 2009. The greatest increase in cost trends in 2008-9 is with hospital outpatient services, which grew more

 

Health reform and healthy food

While the policy wonks and economists and legislators and lobbyists convene to come to “yes” on a coherent approach to health reform for America, there is some (literally) low-hanging fruit that will help the nation bend the health cost curve: it’s healthy eating. Last year, the only two stocks on the Dow Jones Index that moved in a positive direction were Walmart and McDonald’s. Both have received bad raps concerning their role in the nation’s diabesity. Surprisingly, McDonald’s ended up on Health magazine’s list of the Top 10 America’s Healthiest Fast Food Restaurants this week. With 14,000 locations, this chain

 

Wal-Mart’s wearing a new hat: health care advocate

Nearly 100% of Wal-Mart’s staff is covered by health insurance, either through the company itself or through another source. Covered “associates” reached a total of 94.5% this month, compared with 92.7% last year.   The total proportion of Wal-Mart employees covered by Wal-Mart’s plans at the end of open enrollment was 51.8%. Uninsured Wal-Mart employees fell to 5.5%, a 40% drop from 2007 to 2009.   The most recently gauged national uninsured rate for employed Americans was 16.8%.   Wal-Mart’s role in health care is growing both in terms of its approach to employee health benefits within the company, and

 

How to find $150 billion for health care: get rid of paper

Paper, Benjamin, Paper. The lowest-hanging fruit opportunity in reforming health care today is paper. Getting rid of it, that is. In their Recommndations to the Obama Administration and 111th Congress, Ingenix says that, “Administrative cost savings are win-win propositions, benefiting all stakeholders.” Health Populi’s Hot Points: As Congress continues to wrestle with what $20 billion can do for electronic medical data in the U.S., addressing administrative waste is in health is an opportunity to mine some found money which won’t require a 10-year wait for an ROI. The point here is to move toward administrative efficiency in parallel with migrating

 

Universal coverage and controlling costs – health priorities for President Obama

The most important elements of the economic stimulus package for health would be investing in health information technology, providing COBRA funding assistance for recently laid-off workers, and allowing unemployed Americans access to a public health insurance program. In the longer-run, getting to universal coverage while controlling costs and improving quality and efficiency should be the health care reform priorities for President Obama, according to 2 in 3 opinion leaders. These are the results of the 17th Commonwealth Fund/Modern Healthcare Health Care Opinoin Leaders Survey, conducted by Harris Interactive. The poll was conducted among 194 health care opinion leaders culled from

 

Health disparities: options for getting even

By Jane Sarasohn-Kahn on 19 January 2009 in Health disparities, Health literacy, Health reform, Public health

“A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual doom.” So spoke Martin Luther King, Jr. on April 4, 1967 — one year before his assassination.   In this week that’s sure to be inspirational and aspirational, I ponder Dr. King and the state of health care in America.   Health disparities continue to mar the State of American Health Care. “Race remains a significant factor in determining whether an individual receives care, whether an individual receives high quality care, and in determining health outcomes,” according

 

Affordable care and better information: what Americans want from a new-and-improved US health system

Anxiety about health care costs tops American citizens’ concerns about health care in the U.S. Rich, poor, insured or un-, 2 in 3 Americans worry about the affordability of health care in America.   So it follows, then, that among those without health insurance, 57% blame their uninsured state on the fact that they simply cannot afford it, as shown in the table on the right. Beyond this group, 30% of the uninsured cite the employer’s role in health insurance: 14% aren’t employed, 9% have employers who don’t offer coverage, and 7% are “between jobs.”   These findings come from

 

Nearly 1 in 2 women delayed health care in the past year due to costs – the economic impact on a woman’s physical, emotional, and fiscal health

Nearly 1 in 2 women put off seeking health care because the cost was too high. The kinds of services delayed included visits to the doctor, medical procedures, and filling prescription medications. The fourth annual T.A.L.K. Survey was released this week by the National Women’s Health Resource Center (NWHRC), focusing on the declining economy and its impact on women and three dimensions of their health — physical, emotional, and fiscal. 40% of women say that their health has worsened in the past five years due to increasing stress and gaining weight, according to the survey. One of the most interesting

 

We’re officially in a Recession; momentum for health reform grows

By Jane Sarasohn-Kahn on 2 December 2008 in Health Economics, Health reform

We’re in a recession; actually, we’ve been in one for the past year, but no official agency decided to tell us. Perhaps “they” wanted to wait until after the November ’08 Presidential election?   The declaration of recession is the official news from The National Bureau of Economic Research (NBER), whose mind-numbingly-titled press release, Determination of the December 2007 Peak in Economic Activity, provides the following important details:   The Business Cycle Dating Committee of NBER met by conference call on 11/28 to discuss whether the U.S. economy was in recession. The group figured out that the U.S. economy “peaked”

 

A statistical profile of the US on election day 2008; and freebies, galore!

By Jane Sarasohn-Kahn on 4 November 2008 in Health politics, Health reform, Popular culture and health

Go get your treats today while you make your way to the polls: Starbucks is offering free coffee, Dunkin‘ Donuts has star-shaped cakes, and Ben & Jerry’s will offer free scoops between 5 and 8 pm. While you’re enjoying some sweet stuff, ponder some important statistics on this Election Day 2008….    Toyota will probably be crowned the #1 automaker in the world this week, as GM slips to second place. GM’s sales fell to their lowest level in 17 years. Last year, it outsold Toyota by a mere 3,000 cars. The U.S. GDP fell.   Unemployment is expected to further

 

A majority of employers who don’t sponsor health would be unwilling to contribute over $50 per employee per month for coverage

By Jane Sarasohn-Kahn on 23 October 2008 in Employers, Health Consumers, Health Economics, Health reform

The U.S. employer sponsored health system is experiencing some bipolar behavior: there is a cadre of large employers who want to continue sponsoring health benefits as part of overall compensation. But, for at least one in 3 employers, most would not be willing to pay $50 per member per month to cover health for an employee.   According to Mercer‘s survey of employers released October 21st, 2008, What Price Universal Health Coverage?, the rejoinder is: any price is too high.   4 in 10 employers say the main reason they do not offer health coverage is simply that they cannot

 

It’s tough to be a governor: managing the health care lab

The National Governors Association (NGA) is meeting in Philadelphia this week, where my City of Brotherly and Sisterly Love is witnessing some sobering discussions about health care.   On the one hand, Bill Clinton called in his opening keynote speech for the states to be laboratories of democracy.   But how much health-democracy can each governor afford when balancing their budget in the face of declining revenues? According to the NGA’s 2008 Fiscal Survey of the States (published June 2008), not a whole lot.   Medicaid covers comprehensive and long-term care for over 62 million low-income Americans. Costs are shared

 

In the health system popularity contest, the U.S. loses

By Jane Sarasohn-Kahn on 10 July 2008 in Global Health, Health Quality, Health reform, Public health

In this season’s Health System Idol contest, the U.S. loses to most other developed countries. One in three Americans would like to “completely rebuild” the U.S. health system, according to The Harris Poll conducted in ten nations.   And another 50% believe that, “fundamental changes are needed to make it work better.”   Harris also measured ‘unpopularity’ with another metric: asking whether, “the system works pretty well and only minor changes are necessary.” Adding this yin to the other yang, the mash-up is still the same: the U.S. plays last fiddle to the rest of the world’s health system orchestra.

 

Health care inflation: thoughts on PwC’s health cost forecast for 2009

2009 will see health cost inflation of nearly 10%, according to PricewaterhouseCooper’s (PwC’s) report, Behind the Numbers: Medical Cost Trends for 2009. Medical inflation ran about 10% in 2007, as well.   PwC says that since the mid-1960s, the biggest jumps in the percentage of GDP allocated to health care in the U.S. happen during and leading up to recessions. Thus, health care becomes more of a burden for both the private sector (employers and consumers) and for the government (public sector).   Underneath this double-digit increase are both cautionary and hopeful trends:   The recession: PwC notes that if

 

The CBO dissects health cost growth: it’s not all about aging

Growth in spending on Medicare and Medicaid is a function of (1) the aging of the population and (2) trends in the cost of health care. The Congressional Budget Office (CBO) has published an issue brief, Accounting for Sources of Projected Growth in Federal Spending on Medicare and Medicaid, which finds that health care cost growth per beneficiary relative to GDP growth will be a greater driver of health spending than the aging of the population.   The bottom-line: over half of the growth in federal spending on Medicare and Medicaid is attributable to health care costs per person growing

 

Prelude to HIMSS — follow the money, especially Medicare

On this eve of the annual meeting of the Healthcare Information and Management Systems Society (HIMSS) in Orlando, I’m meditating and getting myself prepared for the next three days at the Orange County Convention Center. Why? Medicare. Last week, President Bush has already announced a budget cutting hospital funding for fiscal year 2008. The President proposes cuts in Medicare and Medicaid spending by $196 billion over five years, with hospitals in the bulls’-eye of the reductions. Hospitals are a primary target audience attending HIMSS. HIMSS is akin to a shopping mall with stores featuring every conceivable aspect of health IT:

 

Market Justice vs. Social Justice in Health Care – Our National Identity Crisis

An outstanding commentary in this week’s Journal of the American Medical Association succinctly traces the history of U.S. health care in the context of “market justice.” Peter Budetti, MD, PhD, who teaches health policy at the University of Oklahoma, observes, “Fragmented and struggling to come to terms with externally imposed pressures, medicine is losing both its political force and moral compass.” Those so-called externally imposed pressures come from stakeholders behaving according to their own self-interest in the health market: employers, physicians, hospitals, suppliers, insurers, public officials, and of course, consumers. Dr. Budetti concludes that, “Market justice may have outlived its

 

Health Populi’s Tea Leaves for 2008

I “leave” you for the year with some great, good, and less-than-sanguine expectations for health care in 2008. These are views filtered through my lens on the health care world: the new consumer, health information technology, globalization, politics, and health economics.  Health politics shares the stage with Iraq. Health care is second only to Iraq as the issue that Americans most want the 2008 presidential candidates to talk about, according to the latest Kaiser Health Tracking Poll. Several candidates have responded to the public’s interest with significant health care reform proposals. But major health reform – such as universal access

 

A new and improved FDA – for 3 cents more

A strong FDA is crucial for the health of our country. The benefits of a robust, progressive Agency are enormous; the risks of a debilitated, under-performing organizaiton are incalculable.   These are the findings of the latest critical analysis of the Subcommittee on Science and Technology prepared for the FDA Science Board, FDA Science and Mission at Risk. FDA Commissioner von Eschenbach requested a hard look at the FDA one year ago, and this report is the sobering culmination of that effort. The Subcommittee included leading members of the scientific community familiar with emerging science, the external marketplace, and the

 

Health Care IT by way of Hollywood and Hip-Hop

The double-barreled news of Dennis Quaids’ twins receiving heparin doses 1,000x the prescribed dose while receiving medical treatment at Cedars-Sinai Medical Center, coupled with the tragic death of Kanye West’s mother following cosmetic surgery, focuses this health care paparazzi’s lens squarely on the role of information technology in health care. The Cedars-Sinai Chief Medical Officer has termed the Quaid event a “preventable error.” Donda West’s doctor has been described by the likes of People magazine and the Los Angeles Times as a clinician with at least 2 DUI’s and an assortment of malpractice suits — as well as a recommendation

 

Hammers, nails and health spending – regional variations in the U.S.

There is more money spent on health care for each citizen of Massachusetts and Pennsylvania than for a citizen in Utah, Arizona or Nevada. In fact, per capita health spending was 59% lower in Utah than Massachusetts in 2004. The latest state-by-state spending variations are highlighted in Health Affairs’ web-exclusive feature. Welcome to the statistical phenomenon in health care known as “regional variation.” The guru-researcher of regional variation is John Wennberg, who has detailed these trends in fhe Dartmouth Atlas.   New regional health spending data were published in Health Affairs, which we health economists and policy wonks eagerly anticipate