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Health care reform: What to do now?
This document summarizes a presentation by Grace-Marie Turner of the Galen Institute on options for health care reform. It discusses the views of Americans on the Affordable Care Act after the Supreme Court decision, penalties for employers under the law, subsidies available in the exchanges, potential impacts on doctors and medical practice ownership, and options for states to pursue market-based solutions like defined contribution plans, high-risk pools, and consumer-driven health care. It argues for focusing on personal responsibility, better care coordination, and giving doctors rather than bureaucrats control over decisions.
Health care reform: What to do now?
- 1. A not-for-profit healthand tax policy research organization Health Care Reform: What To Do Now? Grace-Marie Turner October 12, 2012 The CHAMBER Round Rock, Texas /GalenInstitute www.galen.org
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- 15. Source: Ari Melber,”POLL:Half of Americans Don’t Know How Court Ruled on Healthcare,” The Nation, July 4, 2012, http://www.thenation.com/blog/168720/poll-half-americans-dont-know-how-court-ruled-healthcare#.
- 16. Americans agreed ongoals for health reform… • The U.S. needs health reform to: – make coverage more affordable – assure quality, and – expand access to insurance • Most people rate their own coverage as good or excellent • They want stability. Change is for others. www.galen.org
- 17. Americans’ views ofhealth law after Supreme Court decision • Americans say it will make things worse rather than better for taxpayers, businesses, doctors, and those who currently have health insurance. • Health care will be an extremely or very important issue for 82% of Americans in deciding their vote for the president in November. • Opposition to the law is higher now than before the Supreme Court decision. Sources: “Americans: Healthcare Law Helps Some, Hurts Others ,” Gallup, July 16, 2012, http://www.gallup.com/poll/155726/Americans-Healthcare-Law- Helps-Hurts-Others.aspx?utm_source=add%2Bthis&utm_medium=addthis.com&utm_campaign=sharing#.UARkmBS6osE.twitter. The New York Times/CBS News Poll, July 11-16, 2012, http://s3.documentcloud.org/documents/402362/jul12a-ocr.pdf. “Kaiser Health Tracking Poll,” The Kaiser Family Foundation, July 2012, http://www.kff.org/kaiserpolls/upload/8339-C.pdf
- 19. A not-for-profit healthand tax policy research organization /GalenInstitute www.galen.org
- 20. What supporters highlight: – “Free” preventive care – Allowing “children” up to age 26 on parent’s policies – Pools for pre-existing condition policies – $250 for seniors with high drug costs
- 21. The health lawin one graph Source: Avik Roy, “Fact-Checking the Obama Campaign's Defense of its $716 Billion Cut to Medicare,” Forbes: The Apothecary, August 16, 2012, http://www.forbes.com/sites/aroy/2012/08/16/fact-checking-the-obama-campaigns-defense-of-its-716-billion-cut-to-medicare/.
- 25. Employer mandate penalties For companies with +50 employees • $2,000 per year per employee for not providing coverage (minus first 30) • $3,000 per year for any employee getting insurance through the Exchanges * If an employer offers employee-only coverage that’s “affordable” to the worker, family members are not eligible for Exchange subsidies www.galen.org
- 26. Some things tothink about 1. Employers with <50 FTE EE’s have no 3k/2k penalty 2. Employers with no employee’s accessing a subsidy face no penalty 3. But employers offering qualified and affordable coverage can actually be hurting their employees Example SCOTUS Success Boot Camp
- 27. Generous Subsidies in Examples:Exchanges • A person earning $42,000 a year with a family of 4 qualifies for $14,759 in new health insurance subsidies • A single person earning $20,600 qualifies for $5,156 in new health insurance subsidies But only if employer doesn’t offer coverage or if it’s not “affordable” (costs >9.5% of income) www.galen.org
- 29. Source: Frank Hill,“The High Cost Impact of More Regulation and Admin/Executive Staff on Health Care Inflation,” Telemachus, July 22, 2012, http://www.telemachusleaps.com/2012/07/the-high-cost-impact-of-more-regulation.html.
- 30. Medical Practice Ownership 40%of doctors say they will quit practice in 2014 if the law takes “When the Doctor Has a Boss. More Physicians Are Going to Work for Hospitals effect Rather Than Hanging a Shingle” By ANNA WILDE MATHEWS. The Wall Street Journal Nov. 8, 2010
- 31. Health care in2012 • Legislation Depends upon the outcome of the election • Regulation 13,000+ pages so far • Legal Other court challenges continue The voters will ultimately decide on Nov. 6 www.galen.org
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- 33. Other nations movetoward change Consumerism Value of private enterprise and competition Doctor/patient relationship Decentralized decision-making
- 34. What we knowfor sure • CHOICE: Americans value innovation, diversity and choice to accommodate 300 million people • FOCUS ON THE PATIENT: They want doctors and patients, not government, to make health care decisions • VALUE IN HEALTH SPENDING: To realize the promise of personalized medicine and achieve overall cost saving, break down payment silos
- 35. Starting a freshconversation Engaging patients as partners in managing health costs and getting the best value for health care dollars
- 36. A market-based solution “Definedcontributions” for health coverage A system that puts doctors and patients in charge of medical decisions Restructuring financing for a 21st century health sector • Medicare • Medicaid • Private Insurance
- 37. Common themes Focus on: Personal responsibility by recipients Better coordination of care Incentives for patient participation Doctors, not bureaucrats, decide Greater focus on patients
- 38. Better incentives forstates Allow more choices for workers • Association Health Plans work! • Better safety net with functional high-risk pools • More competition that gives workers more choices of affordable coverage • Value the role of employers in facilitating a healthier workforce www.galen.org
- 39. Growth of HSA-QualifiedHigh-Deductible Health Plan March 2005 to January 2012 Note: Companies reported enrollment in the large- and small-group markets according to their internal reporting standards, or by state-specific requirements for each state. The “Other Group” category contains enrollment for companies that could not break down their group membership into large- and small-group categories within the deadline for reporting. The “Other” category was necessary to accommodate companies that were able to provide information on the total number of people covered by HSA/HDHP policies, but were not able to provide a breakdown by market category within the deadline for reporting Source: AHIP Center for Policy and Research (May 2012).
- 40. CDHC is manythings… • A constellation of offerings that give consumers more power and control over health care decisions • New tools include: – HSAs, HRAs – New chronic care management programs – Consumer-focused centers such as MinuteClinics and RediClinics – Information support tools
- 41. CDHC plans are moderating costs Consumer-directed health plans show that realigning incentives can help states, employers, and consumers save money while boosting prevention and wellness
- 42. Source: Mercer's NationalSurvey of Employer-Sponsored Health Plans; Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April) 1990-2009; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April) 1990-2009.
- 43. Americans agreed ongoals for health reform… • The U.S. needs health reform to: – make coverage more affordable – assure quality, and – expand access to insurance • Targeted subsidies for the uninsured • Portable insurance, equal tax treatment • More functional high-risk pools • Cutting Medicaid’s red tape www.galen.org
- 44. The future? • The global move toward consumerism is real, driven by greater patient demand for more control over decisions. • Health overhaul is law and will fundamentally change the U.S. health sector. But it’s not over yet!!
- 45. Grace-Marie Turner A not-for-profit health and tax policy research organization Galen Institute 703-299-8900 [email protected] twitter.com/GalenInstitute facebook.com/GalenInstitute Subscribe to our free email alerts at /GalenInstitute www.galen.org www.galen.org/subscribe
- 46. Why ObamaCare IsWrong for America How does the health care law drive up costs? Is your doctor really in charge of your health care decisions? Are your Constitutional rights threatened? Discover the law’s impact on your life in a new book from four nationally recognized health policy experts Published by Broadside Books, an imprint of HarperCollins www.WrongForAmericaBook.com www.galen.org
- 47. Options for states… •Smart Medicaid reform – Healthy Indiana Plan – Florida’s Medicaid Reform Pilot – Rhode Island Global Waiver • Vulnerable populations in danger – Those already on Medicaid face more competition for fewer physicians – More on Medicaid shifts costs to private payers, forcing more to drop coverage