Category Archives: Health care fallacies

Fed Chair Jerome Powell calls out massive US health spending, says Americans are ‘getting nothing’ in return; and What are Pete Buttigieg’s Plan for Health care? More on the Coronavirus and health care costs.

Josepj Zeballos-Roig reported that Federal Reserve Chair Jerome Powell said at a Senate hearing on Wednesday that Americans were “getting nothing” in return for what the US spends on healthcare.

“The outcomes are perfectly average for a first-world nation, but we spend 6% to 7% of GDP more than other countries,” he said. “So, it’s about the delivery. That’s a lot of money that you are effectively spending and getting nothing.”

Studies have indicated that the US spends far more on healthcare than other developed countries, only to achieve worse outcomes.

One study published last year in a medical journal estimated that nearly a quarter of the US’s $3.6 trillion health spending was wasteful.

Why the heck is this true??

The United States is one of the highest spenders on healthcare for its citizens, but it has very little to show for it, Federal Reserve Chairman Jerome Powell said on Wednesday.

Powell made the brutal comments during a Senate Banking Committee hearing on monetary policy.

Republican Sen. Ben Sasse of Nebraska asked the Fed chair to weigh in on the effect of healthcare spending on the economy, and Powell said the US was spending at far higher levels without much to show for it.

“The outcomes are perfectly average for a first-world nation, but we spend 6% to 7% of GDP more than other countries,” he said. “So, it’s about the delivery. That’s a lot of money that you are effectively spending and getting nothing.”

The Fed chair added that developed countries had been more successful in delivering quality healthcare for much less to their citizens.

“It’s not that these benefits are fabulously generous — they’re just what people get in Western economies,” Powell said.

It’s not the first time Powell has weighed in on the rising price tag of healthcare in America. In a 2018 interview with Yahoo Finance, he warned that it could hurt the country’s economy in the future.

“It’s no secret: It’s been true for a long time that with our uniquely expensive healthcare delivery system and the aging of our population, we’ve been on an unsustainable fiscal path for a long time,” the Fed chair said.

US health spending grew by 4.6% in 2018, reaching over $3.6 trillion, according to the Centers for Medicare and Medicaid Services. And it has been swelling for decades.

The US spent about $10,000 per person for healthcare in 2017, about twice as much as other developed countries, according to the nonpartisan Kaiser Family Foundation. But it has ranked poorly in health outcomes, particularly on infant mortality and deaths from preventable causes under age 75.

One study published in the Journal of the American Medical Association last year estimated that nearly a quarter of that spending — up to $935 billion a year— was wasteful, with failures of care delivery and coordination eating up most of the nation’s mismanaged health expenditures.

How do we change this and will a government run system solve these problems?

‘A godsend to my old industry’: A former insurance executive says Pete Buttigieg’s healthcare plan would keep huge profits for insurers and bankrupt Americans

I thought that as Pete Buttigieg is surging in the polls that we should look at his health care strategies. Joseph Zeballos-Roig further reported that Wendell Potter, a former insurance executive, ripped into Pete Buttigieg’s health plan in an interview with Business Insider.

Potter said he believes the plan is a “godsend” for the insurance industry and will allow it to maintain its grip over American healthcare.

“They’d be happy as clams on the Pete Buttigieg health plan,” he told Business Insider.

The Buttigieg campaign defended the plan in statement and noted the insurance industry has also spent millions attacking it.

A former insurance executive says Mayor Pete Buttigieg’s proposed healthcare plan would be “a godsend” for insurers and allow it to exert outsize power in the debate around healthcare reform.

Wendell Potter, President of Medicare for All, an advocacy organization, tweeted on Tuesday that Buttigieg’s effort to continue attacking a proposal to insure everyone in the US in the Democratic primary would massively benefit the health industry.

“This will thrill my old pals in the insurance industry, as Pete’s plan preserves the very system that makes them huge profits while bankrupting & killing millions,” Potter wrote.

He resigned from his position as a senior communications executive at Cigna in 2008 and went on to testify against the insurance industry in Congress.

In an interview with Business Insider, the former healthcare executive said he believed Buttigieg’s plan would be a “godsend” for the industry in a system designed to maximize profits at the expense of consumers.

“They’d be happy as clams on the Pete Buttigieg health plan,” he said. “It doesn’t change much.”

Potter criticized a mandate in the proposal compelling people to carry health insurance which could saddle people with multi-thousand-dollar fines at the end of the year, given a provision to cap premiums at 8.5% of income. It resembles the least popular part of the Affordable Care Act that Congress repealed under the 2017 Republican tax law.

The former Cigna executive has sought to generate support for universal healthcare, and met with the Sanders and Warren presidential campaigns. But he doesn’t plan on endorsing a candidate in the competitive primary.

The Buttigieg health plan mirrors the one that former Vice President Joe Biden unveiled last year, another moderate. Both candidates have faced off against Sens. Bernie Sanders and Elizabeth Warren’s support to create a single-payer system in the US, which would cost over $30 trillion over a decade.

Buttigieg’s $1.5 billion health proposal is a middle-of-the-road approach. It would create a government-managed plan for people who want it while allowing others to maintain their private insurance. He’s touted it as a “glide path” towards universal health coverage.

What the heck does that mean?

In a statement to Business Insider, Sean Savett, a spokesperson for the Buttigieg campaign, defended the plan and noted insurers have also spent millions of dollars slamming it.

“Pete’s ‘Medicare for All Who Want It’ plan would make some of the boldest, most progressive changes to our health care system in decades in order to achieve universal coverage for all Americans,” Savett said. “It has also been attacked by the health insurance industry because it would create competition and force insurers to lower costs and improve care or lose customers — so that claim doesn’t hold up.”

In recent months, the health industry has spearheaded a multimillion-dollar effort to throttle proposals for Medicare for All.

It often lumps modest attempts at reform — such as Buttigieg’s plan — alongside universal healthcare and industry groups warn it could lead to a “one size fits all” system with hospital closures and longer wait times to receive medical care.

Still, the effectiveness of a public option depends on its strength. It would likely still shake up the healthcare system and empower the government to negotiate with providers for lower costs.

Larry Levitt, executive vice president for the Kaiser Family Foundation, said to the New York Times last year: “The political appeal of the public option is it preserves the choice of private insurance. But the better it works, then the less likely it is to actually preserve a private insurance market.”

The glaring question continues to be how will the $1.6 billion be paid?

John Legend calls Pete Buttigieg’s ‘Medicare for All Who Want It’ plan a ‘trap’

Further, we had Eliza Relman of the BusinessInsider report that John Legend took issue with former Mayor Pete Buttigieg’s healthcare-reform proposal in a series of tweets on Thursday, saying the 2020 candidate’s plan doesn’t go far enough to protect Americans.

As if John Legend is someone whose evaluation on health care should be valued!

Buttigieg’s “Medicare for All Who Want It” plan would essentially add a public option to Obamacare. 

“It’s a trap for progressives to try to talk about healthcare as some sort of free market like they’re talking about TVs or cell phones,” Legend tweeted. “Healthcare is a necessity and there’s very little choice when you’re actually sick. You need treatment and you need it to not bankrupt you.”

Critics of a public option, including those who favor “Medicare for All,” say it wouldn’t adequately rein in healthcare costs and would leave the insurance industry with significant influence over Americans’ healthcare coverage.  

John Legend took issue with former Mayor Pete Buttigieg’s healthcare-reform proposal in a series of tweets on Thursday in which he said the 2020 candidate’s plan didn’t go far enough to protect Americans.

“This myth of freedom and choice sounds wonderful til you realize your boss has the freedom and choice to fire you from this union job,” the singer wrote, retweeting Buttigieg’s message promoting his “Medicare for All Who Want It” plan for union workers. 

Buttigieg’s plan, like the one proposed by former Vice President Joe Biden, would essentially add a public option to Obamacare, opening up Medicare for those who don’t have or want private insurance. Critics of a public option, including those who favor “Medicare for All,” say it wouldn’t adequately rein in healthcare costs and would leave the insurance industry with significant influence over Americans’ healthcare coverage.  

“It’s a trap for progressives to try to talk about healthcare as some sort of free market like they’re talking about TVs or cell phones,” Legend said. “Healthcare is a necessity and there’s very little choice when you’re actually sick. You need treatment and you need it to not bankrupt you.”

He added, “And the so-called ‘market’ for healthcare is so opaque, there are few if any perfectly informed consumers. And no one can predict what healthcare they’ll need in the future.” 

Spokespeople for Buttigieg’s campaign didn’t immediately respond to a request for comment. 

Health Insurance Premiums Continue to Increase. What Can You Do?

MoneyWise noted that according to the Kaiser Family Foundation’s annual employer benefits survey, the average annual health insurance premium for family coverage for employer-sponsored health plans was over $20,000 in 2019. That’s the first time premiums have reached the milestone. Premiums were 5% higher than the year before.

Meanwhile, a 2018 report from the National Association of Insurance Commissioners noted that the health insurance industry was continuing its “tremendous growth trend,” going from a profit margin of 2.4% in 2017 to 3.3% in 2018.

The numbers haven’t come in yet for 2019, but insurers in 2019 have posted record profits, and many individuals and families have experienced climbing health insurance premiums in recent years.

Why health insurance premiums are climbing

While a number of factors contribute to the rising cost, Melissa Thomasson, department chair and professor of economics at Miami University in Oxford, Ohio, has identified two main reasons for rising health insurance premiums: consolidation and billing.

Consolidation

Thomasson says that the increasing consolidation of health care is the main driver of rising premiums.

“People can look around, and they see physicians’ practices being purchased by hospitals. Well, every time that happens, those bills increase,” Thomasson says.

This is what you likely learned in high school economics class. “When competition is lowered, prices go up,” Thomasson says. “As hospitals merge, they have less competition and more leverage with the insurers, and the discounts get lower. Consolidation forces health care prices to go up.”

Billing

The second factor is “surprise billing,” Thomasson says. Every health care bill may seem like a surprise, given how you often don’t know what you’ll be charged. But Thomasson says that it’s becoming more common for consumers to receive extremely large bills for out-of-network care — even though they thought they were receiving care within their health insurance network.

“It doesn’t always occur to you to ask, ‘How much will it cost for somebody to read that X-ray?’” Thomasson says.

What you can do about rising health insurance premiums

Often, when you ask experts what can be done about rising insurance premiums, the answer is “not much.” But there are a few strategies you can use to try to tame your costs.

Tinker with your health insurance plan

Keep your plan, but talk to your insurance agent or the insurer directly about making changes.

Choosing a higher deductible and higher copays will lower your premium, says Matt Oves, an employee benefits account manager at Sahouri Insurance, an independent insurance brokerage located in Tysons Corner, Virginia.

“If you are healthy and do not anticipate any major health concerns, it may be smart to select a plan with higher deductibles,” Oves says.

However, it may not be a good idea if you often go to the doctor, or you anticipate needing to see a physician frequently in the near future. If you’re paying a smaller monthly premium but you’re shelling out higher copays two or three times a month throughout the year, you might wish you had kept your premium as it was.

Consider a health savings account (HSA) or flexible spending account (FSA)

This is one strategy that I have suggested to my family. Oves suggests taking advantage of an HSA or FSA if you can. Some people with high-deductible health insurance plans, as defined by the government, qualify for health savings accounts. Each year, you decide how much to contribute to your HSA, and that money is usually not subject to federal income tax. If you don’t use the money, it rolls over to the next year. That will help cover out-of-pocket costs. There are also investment options for HSA funds, providing an added bonus to those with high-deductible plans.

Flexible spending accounts are similar to HSAs, but the money doesn’t roll over to the next year and the account is owned by the employer. FSA contributions are deducted from your salary with pre-tax dollars. The employee usually receives a debit card to use for qualified health expenses. If you qualify for both an HSA and an FSA, you’ll likely find more flexibility and benefit from an HSA.

Look into a short-term health insurance plan

Adam Hyers, who owns Hyers and Associates, Inc., an insurance agency in Columbus, Ohio, says that many of his healthy clients have enrolled in short-term insurance plans that can last 12 months or longer.

“These policies now look much like what insurance plans did pre-ACA and can cover the insured for unknown, catastrophic types of issues. In many cases, premiums for short-term plans can be half as much as ACA-type policies,” Hyers says.

However, Hyers cautions, “short-term plans aren’t the solution for everyone as they don’t cover preexisting conditions, but they are a good option for those who just want to cover a bigger event that could happen throughout the year.”

In other words, it’s a stop-gap solution if you need a health plan while you look for a plan you can afford, you’re between jobs or you need coverage in case of an emergency.

Stay healthy

Eating your fruits and vegetables, exercising and not doing unhealthy activities, like smoking, can help lower your insurance costs today and over time. Obesity and other conditions can increase your costs over time. Using your preventative health insurance every once in a while, can help keep your health care costs lower in the future.

“Get routine checkups to catch health problems early and avoid paying for complex surgeries later,” Oves says.

Think of your body as a car. If you never change the oil because it’s expensive, eventually you’ll destroy your engine and be out far more money. If you don’t get an annual physical, you may pay for it later in a big way.

Talk to your representatives

Call your senator. Call your member of Congress. Thomasson recommends this if you’re looking for health care premium relief in the long run. If you feel that the government should be working to bring health care prices to more manageable levels — for you and your employer — then make your voice heard.

Your wages may be paying for insurance premiums

Thomasson notes that if your wages haven’t risen much lately, it may be due to your employer-provided health plan. “If your employer is paying for your higher and higher premiums, then you’re receiving compensation for that. And that’s the raise that your employer can’t give you,” Thomasson says.

There’s the chicken-and-egg irony in all of this. Your health plan is getting more expensive, which keeps your employer from offering you a higher salary, which makes your health plan even harder to pay for.

While it may be challenging to combat rising insurance premiums, knowing your options and taking small actions can help save you money today and in the future. While you may not be able to lower your premium, you can make changes to help offset the costs, or even inspire change in your workplace or community by understanding how insurance premiums work.

And now more on the Corona virus, or COVID-19!

More than 1,700 healthcare workers in Wuhan have gotten the coronavirus. A study found that 29% of infections were in medical staff.

Holly Secon reported that as the new coronavirus, now known as COVID-19, continues to spread, hundreds of healthcare workers are getting sick.

China’s National Health Commission announced Friday that 1,716 health workers had contracted the new virus. Six have died.

One study found that nearly a third of the patients involved were healthcare workers.

Healthcare workers on the front lines of the coronavirus outbreak are getting sick by the hundreds.

China’s National Health Commission said on Friday that 1,716 healthcare workers nationwide had been infected by the virus. Of that total, 87.5% are in the Hubei province, where the outbreak began.

In addition, Chinese authorities confirmed for the first time that six healthcare workers have died. That includes doctor Li Wenliang, who was censored by Chinese authorities after warning colleagues about the new virus.

The South China Morning Post Tuesday that at least 500 healthcare workers in Wuhan hospitals had contracted the virus, and approximately 600 more cases were suspected, but the official numbers reveal that the risk to medical staff is even more dire.

Research published last week in the Journal of the American Medical Association found that of 138 total patients studied, 29% were healthcare workers. In one case, a patient admitted to a hospital in Wuhan infected at least 10 medical workers and four other patients.

Together, these reports highlight a concerning threat both to the individuals working to curb this outbreak and to Wuhan’s already overstressed healthcare system.

Healthcare workers at risk

The coronavirus has infected more than 64,000 people and killed nearly 1,400. It has spread to 25 countries beyond China.

Healthcare workers are particularly vulnerable for a handful of reasons. First, the coronavirus is highly contagious, and medical staff members are exposed to more viral particles than the general public. Second, they’re facing shortages of supplies as the tide of patients rises. Third, a combination of stress and long hours could make their immune systems more vulnerable than normal. 

A lack of data and information about the new coronavirus is a fourth challenge. Gastrointestinal symptoms, for example, were not initially recognized as potential early indicators. That’s the reason one Wuhan patient infected 10 medical workers: The person came into the hospital with abdominal issues but was placed in a surgical ward, since the symptoms didn’t match known coronavirus red flags. Four other patients in the ward then caught the virus, too.

The threat to hospital staff isn’t limited to China: Two of four new coronavirus cases in the UK are healthcare workers, officials announced Monday.

“We are now working urgently to identify all patients and other healthcare workers who may have come into close contact, and at this stage we believe this to be a relatively small number,” Yvonne Doyle, medical director of Public Health England, said in a statement. 

At the Good Samaritan Hospital in San Jose, California, meanwhile, five employees were sent home and told to self-isolate for about two weeks after they came into contact with a patient later confirmed to have coronavirus.

Infection among healthcare workers has been a problem during outbreaks of other coronaviruses as well, including SARS (severe acute respiratory syndrome) and MERS (Middle East respiratory syndrome). Around 20% of people who got SARS were medical workers. One highly contagious patient — a “super-spreader” — infected 50 doctors and nurses.

“We’ve seen this before with MERS, we’ve seen this before in SARS,” Mike Ryan, the executive director of the World Health Organization’s Health Emergencies Program, said in a press conference on Friday. “If you look at the percentage of overall cases, although it’s a tragic situation for the health workers … it is a lower percentage than has occurred in other coronavirus outbreaks.” 

Overwhelmed by the coronavirus outbreak 

In Wuhan, where nearly 20,000 cases have been documented, hospitals have reported running out of beds, testing kits, and protective gear.

Chinese authorities sent 10,000 additional medical workers and more protective gear to the hospitals in the city and rapidly built two new hospitals there as well. Hotels, sports centers, exhibition spaces, and other local venues are also serving as temporary treatment centers.

But a doctor at one major hospital in China — who was kept anonymous due to fears about losing his job — told the South China Morning Post that curbing the outbreak and treating patients is exponentially more difficult when healthcare workers are getting sick. 

“Just a very rough estimate, 100 nurses and doctors can look after 100 ordinary beds and 16 ICU beds,” he said. “If they are sick, not only do they occupy 100 beds, but the staff taking care of 100 beds are gone. That means a hospital loses the capacity of 200 beds. That is why the authorities have to keep sending medics over to Wuhan, not only because there are not enough beds, but because of a lack of health doctors and nurses to take care of the sick beds.”

Hospitals and healthcare workers in other countries are preparing

In the US, which has confirmed 15 cases, many hospitals are preparing for potential coronavirus cases. 

“A lot of our patients are from many different countries and travel,” Kim Leslie, an emergency-department nursing director at Swedish Hospital in Chicago, previously told Business Insider. “The likelihood of us coming across it is high, so we’re trying to have a plan for what to do.”

Health authorities worldwide recommend standard preventative measures for healthcare providers: hand-washing, avoiding touching one’s face, and wearing a surgical mask when around sick patients.

The Central Hospital of Wuhan via Weibo/Reuters

The US Centers for Disease Control and Prevention also recommends that hospital staff put potentially infected patients in an airborne infection isolation room, wear eye protection, and immediately notify the CDC about any person under investigation.

Plus, US hospitals are already facing a bad flu season. At least 22 million people have gotten the flu since October 1, 2019, and 12,000 have died.

“It’s really hard because so much of US screening is relying on travel history, but it shows the importance of following the standard procedure of basic infection control practices,” Saskia Popescu, an epidemiologist specializing in infection prevention, told Business Insider, adding, “if you could put a mask on everyone who had a cough and fever, that would be huge.”

US Health-Care Prices Are Off the Charts, Pros and Cons of Public vs Private healthcare and possible Financing of Medicare for All

After listening to the debates and the House debating and finally voting to approve the Articles of Impeachment I can actually say that I am embarrassed for we Americas and our Country. We all look like such fools! I say this because I have read critically the transcripts of the phone call that President Trump made to the President of Ukraine, listened to the witnesses in the case and have found no credible data to support an Impeachment. But how can one argue with the Hate of the party that lost the 2016 election? But on to discuss additional information on healthcare.

Michael Rainey of the Fuscal Times reported that a CT scan of the abdomen typically costs more than $1,000 in the U.S., but the same procedure in the U.K. costs $470, while in the Netherlands it costs just $140. Those numbers come from a new report, released Tuesday by the Health Care Cost Institute and the International Federation of Health Plans, that compares private insurance health-care prices in the U.S. to those in a sample of other wealthy countries – and finds that the U.S. is just about always the most expensive.

“The median prices paid by private insurance for health care services in the United States was almost always higher than the median prices in the eight other countries included in the iFHP study,” the report says. “Figure 1 [below] shows the prices paid for medical services in each country as a percent of the US price.”

Note that U.S. prices are marked by the red dots. In almost every case, the prices in other countries are just a fraction of the U.S. price. (Avoid getting cataract surgery in New Zealand, apparently.) 

The report also looks at drug prices, and finds that with only one exception, prices in the U.S. are the highest in the group. Harvoni, used to treat hepatitis C, costs $4,840 in South Africa and $12,780 in the Netherlands, but it costs more than twice that ($31,620) in the U.S. Similarly, a Humira pen, used to treat arthritis, costs $860 in the U.K., but $4,480 in the U.S.

“Drug prices for most countries were less than half the US price for most of the administered and prescription drugs included in the study,” the report says.

Writing about the report Tuesday, Vox’s Dylan Scott said that high medical prices in the U.S. have many causes, but one in particular stands out: “The US is still the wealthiest country in the world. It’s home to the world’s leading biopharmaceutical industry. It tends to have the most cutting-edge treatments. All this contributes to higher prices here than elsewhere. But one big and unavoidable culprit is the lack of price regulation.”

American health care is a farce

Rick Newman reported that the cost of private health insurance is skyrocketing. Medicare will run short of money soon. About 28 million Americans still lack health insurance.

Are your elected officials on it? NOPE! Why should they be. They get generous coverage through a choice of plans and enjoy taxpayer subsidies covering most of the cost. So they’ve taken care of themselves, which is the only thing that matters in Washington.

Wait, that’s not quite correct. Republicans are also determined to keep hacking away at the Affordable Care Act, now in place for 9 years. A GOP lawsuit—backed by the Trump administration—claims the entire ACA is unconstitutional, because in 2017 Congress repealed the penalty for people who lack insurance. It’s a convoluted argument, yet an appeals court recently upheld part of the case and sent the rest back to a lower-court judge, to assess which other parts of the ACA to kill. The law isn’t dead yet, and it might ultimately survive, but it could take the Supreme Court to rescue the ACA from its third or fourth near-death experience.

So here’s the story: There’s a health care crisis in the United States, with millions of people lacking care and many millions more facing costs that are rising far faster than their incomes. Health care costs are devouring both the family and the federal budget. And many workers stay in jobs they’re not suited for simply for the health benefits. Yet Republicans are trying to take care away from about 18 million Americans, and repeal the ACA’s prohibition against denying coverage to people with preexisting coverage. Their answer to giant problems of access and affordability is to make coverage even harder to obtain and drive up costs even more.

The Democrats have answers! Presidential candidates Bernie Sanders and Elizabeth Warren want to annihilate the private insurance system and create a government program, Medicare for All, which would be 15 times larger than the ACA Republicans hate so much. Sure, that’ll work. In response to obstinate political opposition, peddle a fantasy plan that generates even more furious resistance. And tell voters you refuse to compromise because it’s more important to stand for the right thing than to actually accomplish something that could improve people’s lives.

There are better ideas out there. Democrats such as Joe Biden, Pete Buttigieg and Amy Klobuchar favor enhancements to the ACA and a new public option that would provide coverage to nearly all the uninsured while leaving private insurance in place, for those who want to stick with that. It will never get Republican support, since Republicans favor the law of the jungle over government aid. But a Bidenesque plan could happen in the unlikely event a few reddish states grow momentarily sensible and elect a few pragmatic Democrats, including a majority in both the House and Senate.

If that doesn’t happen, we can look forward to posturing on both sides that will fool some voters into thinking politicians care, without accomplishing anything likely to help. The Trump administration is pushing a new plan that would allow states to import prescription drugs from Canada, which enforces price controls that make drugs cheaper. Great idea, as long as Canada has no problem diverting drugs meant for Canadians back to America, where many of the drugs come from in the first place. Why doesn’t America just impose its own price controls? Because pharmaceutical companies own Senate Majority Leader Mitch McConnell and many other members of Congress, who won’t let it happen. So Trump is hoping more principled Canadian legislators will help Americans gets cheaper drugs made in America by American companies.

At least you’ll be free of all these worries once you turn 65, and Medicare kicks in. Except Medicare is going to run short of money starting in 2026, and will eventually be able to pay only about 77% of its obligations. So here’s the real health care plan: Don’t get sick until you turn 65, and then, get just 77% as sick as you would have otherwise. Or just move to Canada.

Pros and cons of private, public healthcare

A study by Flinders University found that the rising cost of private health cover and public hospital standards raise concerns among heart patients to obtain the best outcomes.

In one of the few direct comparisons, medical researchers in South Australia have analyzed data from pacemaker and defibrillator implant surgeries in all public and private hospitals in New South Wales and Queensland between 2010 and 2015 to make an assessment of medical safety outcomes, including infection levels and mortality.

Overall the outcomes were quite similar, says lead researcher Flinders cardiologist and electrophysiologist Associate Professor Anand Ganesan, who joined other Flinders University and University of Adelaide researchers in a new article just published in the Royal Australasian College of Physicians Internal Medicine Journal.

“There is growing community interest in the value of private health insurance and, to date, there are few head-to-head studies of the outcomes of care in public and private hospitals to compare the same service with adjustments for differences in patient characteristics,” says Associate Professor Ganesan, a Matthew Flinders Research Fellow and National Heart Foundation Future Leader Fellow.

“We believe our results are of community interest for patients to assess the value and benefit of private health insurance, as well as for policymakers who decide on resource allocations between the public and private healthcare systems.”

He stressed that further “head-to-head” studies are needed across all major medical procedures to provide patients and clinicians in both the public and private system with the most up-to-date safety information.

The population level study of pacemaker complications found few key differences in overall major safety issues, although there were slightly higher infection rates in public hospitals but slightly lower acute mortality rates compared to the private hospital system.

This could be connected to the greater number of older, frail patients relying on private health cover—and greater number of people in the public system—although further studies were needed to explain these differences.

Associate Professor Ganesan says more regular comparative assessments of public versus private hospital care quality are very important, particularly for Australian health consumers.

Australia’s hospitals account for more than 40% of healthcare spending with a cumulative cost exceeding $60 billion per annum. Hospital care in Australia is delivered by a combination of 695 public (or 62,000 beds) and 630 private sector hospitals (33,100 beds).

The research paper, “Complications of cardiac implantable electronic device placement in public and private hospitals” has been published in the Internal Medicine Journal.

Budget watchdog group outlines ‘Medicare for All’ financing options

So, one of my oppositions to the program Medicare for All has been the question as to financing the program. The Committee for a Responsible Federal Budget (CRFB) on Monday released a paper providing its preliminary estimates for various ways to finance “Medicare for All,” as the issue of how to pay for such a health plan has taken center stage in the Democratic presidential primary.

“Policymakers have a number of options available to finance the $30 trillion cost of Medicare for All, but each option would come with its own set of trade-offs,” the budget watchdog group wrote. 

The issue of how to pay for Medicare for All — single-payer health care that eliminates premiums and deductibles — has become a key discussion topic in the Democratic presidential race.

Sen. Elizabeth Warren (D-Mass.), one of the top tier 2020 hopefuls, recently said that she would release a financing plan for her Medicare for All proposal after being criticized by some of her rivals in the primary race for refusing to give a direct answer about whether she’d raise taxes on the middle class to pay for the massive health care overhaul. 

CRFB said most estimates find that implementing Medicare for All would cost the federal government about $30 trillion over 10 years.

“How this cost is financed would have considerable distributional, economic, and policy implications,” the group wrote.

CRFB provided several options that each could raise the revenue needed to pay for Medicare for All. These included a 32 percent payroll tax, a 25 percent surtax on income above the standard-deduction amount, a 42 percent value-added tax, mandatory premiums averaging $7,500 per capita, and more than doubling all individual and corporate tax rates.

The group estimated that Medicare for All could not be fully financed just by raising taxes on the wealthy.

CRFB also estimated that cutting all nonhealth spending by 80 percent, or by more than doubling the national debt, so that it increased to 205 percent of gross domestic product, could finance Medicare for All.

The group said that the financing options it listed could be combined, or that policymakers could reduce the cost of Medicare for All by making it less generous.

“Adopting smaller versions of several policies may prove more viable than adopting any one policy in full,” CRFB wrote. 

CRFB said that most of the financing options it listed would on average be more progressive than current law, but most of the financing options would also shrink the economy.

Out-of-pocket costs for Medicare recipients will rise in the New Year

Dennis Thompson reviewed the future costs of Medicare since the Democratic primary discussion seems to point to Medicare or All. He noted that the standard monthly premium for Medicare Part B would rise $9.10, to $144 a month, the U.S. Centers for Medicare and Medicaid Services (CMS) announced.

The annual deductible for Part B also will increase $13 to $198 per year, CMS said.

Both increases are relatively large compared to 2019, when the Part B premium rose $1.50 a month and the deductible $2 for the year.

“This year there’s an unusual tick up in the Part B premium that could be a real concern for people living on a fixed income,” said Tricia Neuman, director of the Henry J. Kaiser Family Foundation’s Program on Medicare Policy.

The Part B premium increase will affect people enrolled in original Medicare as well as those who are covered under Medicare Advantage, said David Lipschutz, associate director of the Center for Medicare Advocacy.

“One thing I definitely wanted to make clear is that the increase in the Part B premium itself also applies to everyone on Medicare Advantage,” he said. “People on Medicare Advantage have to continue to pay the part B premium.”

Some, but not all, Medicare Advantage plans cover the Part B premium as part of their package, Lipschutz added.

The annual inpatient hospital deductible for Medicare Part A is also increasing to $1,408 a year, up $44. In 2019, the increase was $24.

These cost increases will wipe out much of the 1.6% cost-of-living (COLA) increase for Social Security benefits in 2020, CBS News reported. The COLA amounts to about $24 extra a month for the average retiree.

Medicare Part A covers inpatient hospital stays, nursing facility care and some home health care services. Part B covers doctor visits, outpatient hospital treatment, durable medical equipment, and certain home health care and medical services not covered by Part A.

Unless Congress acts, the prescription benefit in Medicare Part D also will start drawing a lot more money out of the pockets of seniors taking pricey drugs, the experts added.

The Affordable Care Act (ACA) included a provision that limited how much a senior with Part D would pay out-of-pocket after reaching a “catastrophic coverage” threshold, Neuman and Lipschutz said.

Once they reach that threshold, seniors pay 5% of their prescription costs. Until then, they pay 25% of the costs for brand-name drugs and 37% of generic drug costs.

But that ACA provision expires this year. When that happens, the catastrophic coverage threshold will jump $1,250, the Kaiser Family Foundation estimates. People will have to pay $6,350 out-of-pocket before reaching the threshold.

“There will be a jump up in the threshold, which means that people with high drug spending will have to pay more before they can get this extra help,” Neuman said.

Both the Senate and the House of Representatives have bills in the works that could address this Part D increase, but it’s hard to predict whether Congress will be able to cooperate on a solution, Neuman and Lipschutz said.

“No matter what your allegiances are, everyone agrees something should be done about the high cost of prescription drugs,” Lipschutz said.

It’s not all bad news, however.

Folks with Medicare Advantage are expected to pay lower premiums, even with the increase in Part B, according to the CMS.

On average, Medicare Advantage premiums are expected be at their lowest in the past 13 years, and 23% lower than in 2018, the CMS said.

Medicare Advantage enrollees also will have more plans to choose from. The Kaiser Family Foundation estimates that the average beneficiary will have access to 28 plans, compared with a low of 18 in 2014.

Original Medicare is the traditional fee-for-service program offered by the federal government, while Medicare Advantage plans are an alternative provided through private insurance companies.

Medicare beneficiaries spent an estimated $5,460 out-of-pocket for health care in 2016, according to the Kaiser Family Foundation. About 58% went to medical and long-term care services, with the remainder spent on premiums for Medicare and supplemental insurance.

So, the ultimate question is :

Equal health care for all: A philosopher’s answer to a political question

The University of Pennsylvania staff asked the question-Should access to health care, especially in life-threatening situations, depend on whether you can afford it? Absolutely not, says Robert C. Hughes, Wharton professor of legal studies and business ethics, who compared health care systems in the U.K., Canada, and Australia. He writes about this question and other issues in a recent paper titled, “Egalitarian Provision of Necessary Medical Treatment.”

Hughes identifies two key features of an egalitarian health care system. First, he argues, it would protect people’s liberty to ensure that access to money does not decide if people get the health care they need. Second, it would promote stability and encourage people to be law abiding. “The central finding of [my research] is that it’s morally necessary to make sure that people’s finances don’t affect their ability to get truly medically necessary treatment,” he says.

Hughes favors universal health care coverage in the U.S. Further, in order to ensure that everybody has access to the medical care they need, he says one option is to eliminate private health insurance for coverage provided under “Medicare for All,” the solution that Democratic presidential candidates Elizabeth Warren and Bernie Sanders have proposed. Hughes explores what legislators, the pharmaceutical industry, and other health care providers could do to ensure a fair health care system where private parties don’t get to decide who is eligible for what treatments.

I mentioned my embarrassment and disappointment in our political system we all have to give thanks for all the good things in our lives. As Christmas approaches we all should reflect on the good in our lives and enjoy the Holiday including family and friends. Merry Christmas, Happy Hanukkah, and Happy Kwanzaa! And I hope Santa leaves coal in all the stockings of our politicians who can’t even do the job that we the voters asked them to do when we voted them in. Oh, how you are making a mockery of the system in the games that you all are playing!

I have been avoiding the discussion regarding single payer system, what it is, how it would work and what are the consequences, etc.? More to come! 

Elizabeth Warren’s Number-Crunchers Out of Sync With Her on Some Big Plans and Is Soaking Rich the Answer. And How Did It Work Out for the French?

73495095_2337220289740950_8378943902677204992_nAs a physician and an economist, I am amazed at the lack of knowledge of both medicine and finance by Ms. Warren and her Team as well as the rest of the Democrats running for President as they tout Medicare for All and give up on Affordable Health Care/ Obamacare. Sahil Kapur and Katia Dmitrieva pointed out that Elizabeth Warren is careful to cite economic experts to back up the costs of her multi-trillion-dollar policy plans. But even those experts disagree among themselves about how or whether those plans will work.

University of California Berkeley economists Emmanuel Saez and Gabriel Zucman advised Warren on her wealth tax and say she could raise $2.75 trillion over a decade by imposing a 2% tax on wealth worth $50 million or more, going up to 3% for a wealth of more than $1 billion.

But Mark Zandi, chief economist at Moody’s Analytics who Warren’s campaign asked to review her separate Medicare-for-All funding plan, which includes an additional 3% tax on wealth over $1 billion among other levies, is skeptical it would bring in that much money.

On health care, Zandi has projected that Warren could raise the $20.5 trillion she estimates it will cost to give everyone free health-care without any new middle-class taxes, even though he disagrees with her vision. Saez and Zucman support her policy in general but their funding approach does raise taxes on the middle class.

The disagreements among those who helped shape and gauge her policies highlight the challenges for Warren as she tries to convince voters that she can generate enough revenue to provide free health care, free public college, universal childcare, forgive a portion of student loans and mitigate climate change, among other ambitious policies.

Saez said in an email that Warren’s health care numbers are “reasonable” — with a caveat.

“Scoring is not hard science, and much will depend on the quality of enforcement. Her numbers assume that enforcement will be excellent,” he said. “We believe this is possible but it will require a big and successful push (a big policy change in and by itself).”

Zandi said the Warren wealth tax will be difficult to enforce, with billionaires likely to use multiple loopholes to avoid it. Several European countries experienced this issue when implementing their own tax programs. Warren has said she would empower the Internal Revenue Service to enforce collection, a promise made by many presidential candidates over the years.

“When considering all of Warren’s policy proposals, which includes a number of different tax increases on the wealthy, tax avoidance may be higher than she is assuming. But this doesn’t mean Medicare-for-All or any of other plans won’t be paid for,” Zandi said in an email.

Warren’s plan to pay for her Medicare-for-All proposal, which she released this month under pressure from rivals, increases her wealth tax and is predicated on avoiding any tax increases on the middle class in the hope of avoiding the political blowback such a move would likely bring.

Under Medicare for All, 98% of the money companies now pay for employees’ health care would be shifted to the government instead.

But Saez and Zucman, who priced out Warren’s tax plan, have floated a different way to pay for Medicare-for-All — a progressive tax that may hit some in the middle class, but would compensate by requiring companies to put the money they would have provided to their employees’ health care into higher paychecks.

Saez said Warren’s employer tax “is a tax on the middle class as economists pretty much all believe that such taxes are effectively borne by workers.” But he said workers are already bearing that cost. “Hence, if you count existing premiums as a pre-existing tax, the Warren plan effectively does not ‘increase’ taxes on the middle class.”

A campaign aide said that Zandi was only scoring her health care plan, while Saez and Zucman were advising her on the wealth tax. Warren tweeted Wednesday, “I knew Mark Zandi was skeptical, so I had him check the numbers on my plan to pay for #MedicareForAll. He confirmed they add up.”

Senator Bernie Sanders, who wrote the Medicare-for-All bill that Warren campaigns on, has released his own suggestions for how to fund it. His ideas include a more aggressive wealth tax than Warren’s and a 4% payroll tax which would hit many Americans though overall they would pay lower costs because of health care savings. He has acknowledged the middle-class would pay more in taxes.

Overall, Zandi backs up Warren’s health care math. He said in the email that Warren can finance her plan without raising taxes on the middle class, even though he doesn’t agree with the policy. And even if the rich don’t pay their fair share, she could find those funds elsewhere.

“Warren’s Medicare for All plan isn’t the only way to provide health insurance to all Americans, rein in growing health care costs and improve health care outcomes,” Zandi wrote in a CNN op-ed that was published on Wednesday. “A more tractable approach in my view is to allow those who like their private health insurance to keep it and to build on Obamacare by giving everyone else an option to get Medicare.”

Mark Cuban: Elizabeth Warren’s Medicare-for-all will take years to achieve

Frank Connor pointed out that Elizabeth Warren unveiled a massive overhaul of the U.S. health care system in her single-payer Medicare-for-all plan. However, Dallas Mavericks owner Mark Cuban believes the proposal will take years to accomplish.

“Getting from where we are, to getting there is not something you can accomplish in 4, 8, 12, or even 20 years,” Cuban told FOX Business’, Maria Bartiromo.

Cuban does, however, believe that health care is a right for everyone and that there is a need for people with lower incomes to have access to healthcare. This, he suggested, may indicate an opportunity for a “hybrid plan.”

“Maybe we can expand Medicaid and Medicare and still have a good capitalist system for health care in the middle,” Cuban said.

Business, he argued, cannot operate when there are communities where there is “disruption and social unrest” and so these areas need a basis of health care.

One of the problems with the health care industry, according to Cuban, is a misalignment of incentives between payers and providers.

“The goal of, hopefully, a health care system is to make people healthy,” he said. “And so you don’t get that, you know, when payers, the insurance companies, and the providers work together.”

Cuban described this as a “malicious circle,” suggesting that the parties involved charge each other more in order to make more money.

“None of their metrics have to do with making people healthier,” he said.

The billionaire businessman does not believe the rise of high deductible insurance programs will lead to the growth of a consumer market in health care or lead to customers shopping for health care pricing. He argued high deductible programs are problematic because they make up such a high percentage of their actual income making it more difficult for them to get care.

Additionally, he noted that people don’t shop for care, they make these decisions based on who they trust.

He also believes that artificial intelligence will help the industry.

“As you get more into artificial intelligence and be able to use data more smartly, then you’re going to see a lot of benefits, particularly in radiology,” he said.

France Tried Soaking the Rich. It Didn’t Go Well.

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What about the idea that Elizabeth Warren pushes that the rich should be taxed to the fullest? Noah Smith noted that in recent years, several prominent economists have brought attention to the problem of growing inequality. These scholars include Thomas Piketty, author of the best-selling book “Capital in the Twenty-First Century,” and Emmanuel Saez and Gabriel Zucman, who in a new book chronicle the rise in American wealth inequality. All three embrace the same solution:  much higher taxes. Piketty has declared that billionaires should be taxed out of existence, and he called for a global wealth tax, while Saez and Zucman helped Democratic presidential candidate Elizabeth Warren design her proposal for a U.S. wealth tax. Piketty and Saez have also suggested taxing top incomes at a rate of more than 80%.

Other economists have struggled to evaluate dramatic proposals like this. Studies on the effects of taxation when rates are moderate might not be a good guide to what happens when rates are very high. Economic theories tend to make a host of simplifying assumptions that might break down under a very high-tax regime. Historical experience is of some help because the U.S. had very high top income taxes in the 1950s, but economic conditions could be very different now.

One way to predict the possible effects of the taxes is to look at a country that tried something similar: France, where Piketty, Saez, and Zucman all hail from.

During the past few decades, as income inequality rose in most rich countries, it stayed relatively constant in France. The biggest reason is government redistribution in the form of taxes and social-welfare spending. France leads its rich-country peers, including the legendarily egalitarian Scandinavian countries, on both measures:

France, therefore, shows that inequality, at least to some degree, is a choice. Taxes and spending really can make a big difference.

But there’s probably a limit to how much even France can do in this regard. The country has experimented with both wealth taxes and very high top income taxes, with disappointing results.

France had a wealth tax from 1982 to 1986 and again from 1988 to 2017. The top rate was between 1.5% and 1.8%, with the total tax rate on fortunes larger than 13 million euros ($14.3 million) hovering at about 1.4%. This is much less than the 6% top rate proposed by Warren (not to mention the 8% proposed by her fellow candidate, Senator Bernie Sanders), but it’s close to the 2% rate Warren would impose on fortunes larger than $50 million.

The wealth tax might have generated social solidarity, but as a practical matter, it was a disappointment. The revenue it raised was rather paltry; only a few billion euros at its peak, or about 1% of France’s total revenue from all taxes. At least 10,000 wealthy people left the country to avoid paying the tax; most moved to neighbor Belgium, which has a large French-speaking population. When these individuals left, France lost not only their wealth tax revenue but their income taxes and other taxes as well. French economist Eric Pichet estimates that this ended up costing the French government almost twice as much revenue as the total yielded by the wealth tax. When President Emmanuel Macron ended the wealth tax in 2017, it was viewed mostly as a symbolic move.

Another French experiment was the so-called supertax, a 75% levy on incomes of more than 1 million euros. Introduced by socialist President François Hollande in 2012, the supertax added to the exodus of wealthy individuals, most notably actor Gerard Depardieu and Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton. Star soccer players threatened to go on strike, and there was fear that France would become a wasteland for entrepreneurs. Meanwhile, the supertax raised much less money than even the wealth tax had — only 160 million euros in 2014. The unpopular tax was repealed two years after its adoption.

France’s experiments with taxing the wealthy at very high rates didn’t raise much money and didn’t prove politically sustainable. The flight of wealthy individuals from the country probably helped reduce inequality on paper, but it’s not clear that their departure left France better off.

It’s possible that similar tax experiments in the U.S. might be more successful than in France. The U.S. economy is much larger than France’s; although a French business owner who moves to Belgium can still do business and move about freely within the European Union, an American mogul who moves to Canada might find access to one of the world’s largest markets restricted. That might allow the U.S. to raise more money from high taxes than France ever could.

But it’s also worth noting that France’s wealth tax and supertax ultimately weren’t that important. Despite repealing the supertax, France managed to increase government revenue and to reduce inequality. The end of the wealth tax will probably be a similar story. France simply didn’t need these flamboyant taxes on the rich to have very high levels of taxation and social spending. That means the U.S. probably doesn’t need them either. Tax increases across the board — on top incomes, capital gains, estates, pass-through businesses, corporations, and so on — might not excite populist firebrands, but they’re probably a more effective strategy for fighting inequality.

‘Save public hospitals’, French health workers urge Macron

Gabriel Bourovitch, Clare Byrne and Aurelle Carabiin looked at the French healthcare system and noted that thousands of French hospital workers demonstrated Thursday over years of cutbacks they say have harmed care in a country with a health system once the envy of the world. Also, remember what I pointed out as Medicare for All pays all doctors and hospital Medicare rates- about 50-60 cents on the dollar. You think when Medicare for All reimburses physicians and hospitals that doctors can pay their staff, their medical education bills, malpractice bills as well as run the hospitals? I think not!

Public hospitals in France have been forced to cut 9.0 billion euros ($9.9 billion) off their debts since 2005, leading to the scrapping of hundreds of beds and dozens of operating theatres while stagnant salaries have fuelled a flight to the private sector.

Calling on President Emmanuel Macron to “save public hospitals”, thousands of hospital doctors, nurses, students, and administrative staff held protests in Paris and a dozen other cities on Thursday.

The protests began in March when emergency room staff, who complain of elderly patients being left for hours on trolleys in corridors while waiting for a bed, began strike action.

Over 260 emergency rooms nationwide are still affected by work stoppages.

On Thursday, staff from other hospital departments joined in the protests.

In Paris, organizers said that some 10,000 demonstrators marched through the city waving placards with a message such as: “Exhausted caregivers = endangered patients”, “Public hospitals in a life-threatening emergency” and “The hospital is suffocating, let’s save it.”

In the southwestern city of Toulouse, 3,000 staff took to the streets, around 400 in Brest and Quimper in the northwest, and a few hundred each in other cities such as Nantes, Lyon, Bordeaux, Lille, and Marseille.

Jean-Michel Carayol, a hospital technician who demonstrated in the Mediterranean port city of Marseille, said the staff were “at the end of their tether and exhausted”.

Monique Aubin, a 61-year-old nurse who also joined the protest, complained of a “lack of materials, even medication” and of being swamped in paperwork which left her little time for patients.

In 2000, the World Health Organization ranked France’s health system the best of 191 countries.

But a study by the Institute for Health Metrics and Evaluation published in The Lancet medical journal in 2017 placed it in 15th place for quality of care.

The country is still one of Europe’s biggest spenders when it comes to healthcare.

In 2016, France spent 12 percent of its GDP on health, well above the western European average of 10 percent, and was also the country where the patient’s share of the health bill was the lowest.

– New winter of discontent? –

The protests have created jitters in the government, which fears that hospital staff could band together with other disgruntled groups such as transport workers who are planning mass strike action in December over pension reforms.

Three health plans in the past two years have failed to appease the anger of beleaguered hospital staff.

In an attempt to head off another winter of discontent, a year after the start of the “yellow vest” revolt, Macron said Thursday the government would unveil plans next week for “substantial” hospital investments.

While arguing that his centrist government had inherited an ailing hospital system, he said he had “heard the anger and the indignation over working conditions” in hospitals.

The protesters are demanding 3.8 billion euros in emergency investment in public hospitals — twice the amount set aside in the draft 2020 budget currently before parliament.

On Thursday, the upper house of the parliament, the right-wing dominated Senate, threw out the draft social security bill at its first reading in protest over what some senators described as Macron’s “disdain” for the workers in the sector.

Economy Minister Bruno Le Maire has warned that hiking health spending will mean having to make cuts elsewhere.

France’s budget deficit is expected to breach an EU limit of 3.0 percent of GDP this year, reaching 3.1 percent.

I am amazed at how easy the voters can be swayed and convinced that everything will be free if “you vote for me!” I say be very wary of what you all wish for because you and the rest of may have to live with the results, as we are all sold a bill of false goods. Be very careful voters!!

 

The 3 Reasons the U.S. Health-Care System Is the Worst, the AMA and more on Medicare for All and an angry teenager scolding the United Nations!

healthcare158[788]The head of the Commonwealth Fund, which compares the health systems of developed nations, pinpoints why America’s is so expensive and inefficient.

Olga Khazan reviewed the three reasons that the U.S. Health Care system is the worst. A woman has her blood pressure taken at the Care Harbor four-day free clinic, which offers free medical, dental, and vision care to around 4,000 uninsured people in Los Angeles.

According to the Commonwealth Fund, which regularly ranks the health systems of a handful of developed countries, the best countries for health care are the United Kingdom, the Netherlands, and Australia.

The lowest performer? The United States, even though it spends the most. “And this is consistent across 20 years,” said the Commonwealth Fund’s president, David Blumenthal, on Friday at the Spotlight Health Festival, which is co-hosted by the Aspen Institute and The Atlantic.

Blumenthal laid out three reasons why the United States lags behind its peers so consistently. It all comes down to:

  1. A lack of insurance coverage. A common talking point on the right is that health care and health insurance are not equivalent—that getting more people insured will not necessarily improve health outcomes. But according to Blumenthal: “The literature on insurance demonstrates that having insurance lowers mortality. It is equivalent to a public-health intervention.” More than 27 million people in the United States were uninsured in 2016—nearly a tenth of the population—often because they can’t afford coverage, live in a state that didn’t expand Medicaid or are undocumented. Those aren’t problems that people in places like the United Kingdom have to worry about.
  2. Administrative inefficiency.“We waste a lot of money on administration,” Blumenthal said. According to the Commonwealth Fund’s most recent report, in the United States, “doctors and patients [report] wasting time on billing and insurance claims. Other countries that rely on private health insurers, like the Netherlands, minimize some of these problems by standardizing basic benefit packages, which can both reduce the administrative burden for providers and ensure that patients face predictable copayments.” In other words, while insurance coverage, in general, is great, it’s not ideal that different insurance plans cover different treatments and procedures, forcing doctors to spend precious hours coordinating with insurance companies to provide care.
  3. Underperforming primary care.“We have a very disorganized, fragmented, inefficient and under-resourced primary care system,” Blumenthal added. As I wrote at the time, in 2014 the Commonwealth Fund found that “many primary-care physicians struggle to receive relevant clinical information from specialists and hospitals, complicating efforts to provide seamless, coordinated care.” On top of a lack of investment in primary care, “we don’t invest in social services, which are important determinants of health” Blumenthal said. Things like home visiting, better housing, and subsidized healthy food could extend the work of doctors and do a lot to improve chronic disease outcomes.

Together, these reasons help explain why U.S. life expectancy has, for the first time since the 1960s, recently gone down for two years in a row.

Two Experts Debunk Four Big Health Care Fallacies

Yuval Rosenbery of The Fiscal Times reported that in a The New York Times op-ed, Ezekiel Emanuel, a health policy expert, and a former adviser in the Obama administration, and Victor Fuchs, a Stanford health economist, look to clarify what they call “four fundamental health care fallacies”:

  1. Employers pay for workers’ health insurance.“Since 1999, health insurance premiums have increased 147 percent and employer profits have increased 148 percent,” they write. “But at that time, average wages have hardly moved, increasing just 7 percent. Clearly, workers’ wages, not corporate profits, have been paying for higher health insurance premiums.”
  2. Medicare for All is unaffordable. As I have mentioned in previous posts Medicare for All is too expensive. “True, Medicare for All would increase federal health care spending. But that is not the same as increasing total health care spending, which was over $3.5 trillion last year,” Emanuel and Fuchs said. “We have our doubts about Medicare for All. But unaffordability is nota reason to oppose it. … When you hear a health care price tag in the trillions, know that the existing system has already brought us there.”
  3. 3. Insurance company profits drive health care costs.“The fact is, we could eliminate those profits and it would hardly matter to the cost of health care. You would not notice it in your premiums. … True, $22.1 billion is a lot of money — but it is 0.6 percent of health spending. And last year alone health care costs increased over $130 billion — six times insurance company profits. Health care spending would not be significantly cheaper if all insurance companies’ profits were zero.”

4. Price transparency can bring down health care costs.“Over 80 percent of the cost of medical care is paid by private and public insurance. Patients have little incentive to seek out the cheapest provider. When pricing websites exist, few patients use them. … Furthermore, price considerations are useful for choosing only about 40 percent of procedures — routine services like colonoscopies, M.R.I. scans and laboratory tests. Most of the expensive services — think heart catheterizations, cancer chemotherapy, and organ transplants — are not the kind of thing you decide based on price.”

AMA President: It’s Still ‘No’ to Single Payer

Shannon Firth, Washington correspondent of the MedPage, noted that Dr. Barbara McAneny still doesn’t believe in the Single Payer system for health care but she and the AMA applauds a ban on pharmacy gag clause and APMs.A single-payer healthcare system in the U.S. would break her practice, said the president of the American Medical Association (AMA), who argued that Medicare and other government programs as currently structured simply don’t pay enough.

“We need a payment system that the country can afford,” said Barbara McAneny, MD, AMA president, and a practicing oncologist/hematologist in New Mexico.

McAneny pointed out that in the portion of her practice that serves the Navajo Nation, 70% of payments are from governmental payers, and “I have struggled for the last 10 years to keep that practice breaking even.”

Medicare payments are designed to cover about 80% of the cost of doing business, McAneny said. If all her commercial patients were to pay Medicare rates, there would be no other place from which to shift costs, she explained. “My doors would be closed. I would no longer be able to make payroll.”

Moving to a single-payer healthcare system won’t fix what’s broken, she said during a meeting with reporters Tuesday to discuss a variety of issues, including drug pricing, value-based payments, and turf battles.

While she said she strongly supported Medicaid expansion in New Mexico, McAneny expressed skepticism about the possibility of a Medicaid “buy-in,” which would allow people to purchase Medicaid-based public insurance plans.

She pointed out that only about a quarter of the population in New Mexico has commercial insurance, and “Medicaid and Medicare do not cover the expenses of providing care.” With fewer patients to cost-shift from, independent practices and small rural practices “would not be able to keep the lights on.”

AMA policy supports patients buying “individually selected health insurance,” subsidized with advanced or refundable tax credits that correspond inversely to income, McAneny said.

McAneny also discussed the Trump administration’s recent efforts to curb drug prices and the challenge of transitioning from fee-for-service to value-based care.

She called the latest bill banning pharmacy gag clauses”really important. When patients discover that they can pay less than the co-pay to buy the drug, they need to know that because patients are going broke out there, trying to buy their drugs.”

Gag clauses prevent pharmacists from telling customers whether paying for their prescription might be cheaper if they paid the cash price instead of using their insurance.

Earlier this week, the Department of Health and Human Services (HHS) announced that drug makers would need to include the list price of any drug paid for by Medicare or Medicaid in their TV advertisements. In an AMA press release, McAneny stated that the HHS move seemed like “a step in the right direction,” although the AMA is opposed to direct-to-consumer advertising in general.

McAneny said greater transparency was a “first step” toward addressing such high drug costs.

“There’s so much the public doesn’t understand about the market, including the true costs of research and development and the role of middlemen, like pharmacy benefit managers and insurance mark-ups, she said.

“Before we suggest any sort of treatment, we think it’ s a good idea to make the diagnosis, and that means really understanding that entire process, which means they’re going to have to pull back the curtain and let us, the healthcare community, really take a look at that and figure out what adds value and what doesn’t,” she said.

McAneny was less supportive of changing the way Part B drugs are bought and paid for. In May, HHS Secretary Alex Azar suggested moving some Part B drugs administered in a physician’s office into the Part D program, in an attempt to negotiate more competitive prices.

“People cannot afford a 20% co-insurance on a drug that costs $5,000 a month,” she said.

In terms of value-based payment, McAneny said she’s excited about the work the physician-focused Payment Model Technical Advisory Committee (PTAC) is doing. Doctors are well-positioned to help design alternative payment models, she noted.

“We see all the time places where healthcare dollars get wasted, and patients don’t get what they want,” she said, so allowing doctors to come up with new methods of care delivery, which incorporate things they’ve always wanted to do for their patients, has “tremendous potential.”

McAneny said she hopes Azar will test as many pilots projects as possible, and see what works, but not penalize groups who fail. “If you’re trying something innovative … sometimes you’re going to be wrong, and those people shouldn’t have to lose their practices… they should be allowed to fail quickly, and move on to something else,” she stated.

McAneny said she will present an alternative model to the PTAC in December.

Her proposed model integrates clinical data from a group of oncology practices with claims data “to set accurate and realistic targets that reflect what oncologists can actually control, rather than the total cost of care,” McAneny told MedPage Today in an email.

“We will measure quality by compliance with physician derived pathways that reflect the best care in the medical literature… [and] improve patient satisfaction by getting patients the care they need, when they need it, at a practice site that knows them and understands what they are going through.”

The model saves money by reducing hospitalizations and “aggressively managing or preventing” adverse effects.

Another challenge in healthcare is the scope of practice, with some physicians expressing concern that nurse practitioners and physicians assistants (PAs) are encroaching on their territory.

McAneny acknowledged that concern, noting that primary care physicians must be “incredible diagnosticians,” she said. “They need to know when a sore throat is a sore throat and when it’s really cancer.”

“In my own practice, where we have everyone working to the top of their license, I value my nurse practitioners and I value my PAs immensely, but I don’t expect them to be oncologists, and I don’t really expect them to be primary care doctors,” she added.

“Everybody has a place in healthcare,” McAneny stressed, “but I do not feel that a nurse practitioner who has gone to nursing school and done one extra year… and has not practiced in that post-doc process, has the same level of expertise to be that diagnostician.”

A new report from the AMA’s Council on Medical Service, “Covering the Uninsured Under the AMA Proposal for Reform,” also reaffirms that stance, calling for improvements in the Affordable Care Act — increasing subsidies, and expanding eligibility and the size of cost-sharing reductions — rather than “threatening the stability of coverage for those individuals who are generally satisfied with their coverage.”

There will be resolutions calling on the AMA to support federal laws that would not eliminate the private health insurance market and to collect data comparing Medicare reimbursement to the cost of delivering services.

ACTION ALERT: The A.M.A. must support Medicare for All!

But we find out that the President of the AMA may not reflect the total view of the national organization of physicians. On June 8, 2019, at 1:30 PM CST, students, physicians, nurses, allied health care workers, and activists from around the country will unite in Chicago to protest the annual meeting of the American Medical Association (A.M.A.).

Representatives of a rapidly growing coalition of Medicare for All supporters, including National Nurses United, Students for a National Health Program, Physicians for a National Health Program, People’s Action, Public Citizen, The Center for Popular Democracy, The Jane Addams Senior Caucus, various labor unions, teachers, activists, and more, will be taking a stand AGAINST corporate greed, misleading advertising, and the profit motive in health care.

And for a system that guarantees quality health care and choice of provider for all Americans, regardless of income.

The action recalls similar campaigns waged throughout the 1960s in which members of the African-American-led National Medical Association, the Medical Committee for Human Rights and the Poor People’s Campaign picketed the A.M.A.’s annual meetings because of its refusal to take a stand against segregated medical services and for allowing local medical societies to discriminate against physicians and patients of color.

When we join together, we can send a powerful message to the A.M.A. and corporate medicine that we won’t stop until every American is guaranteed quality medical care without going into debt or bankruptcy.

Everybody in, nobody out!

Also, I need to comment on that sixteen-year-old who was invited to a United Nation session where she berated the countries all about not taking up the environmental banner and cleaning up the world. She is a spoiled “child” who knows nothing about economics as well as politics and what it would take to move ahead with cleaning up the environment. Where are all the countries to get the trillions of dollars or Euros, etc. to make the changes that she demands?

Greta Thunberg excoriated world leaders for their “betrayal” of young people through their inertia over the climate crisis at a United Nations summit that failed to deliver ambitious new commitments to address dangerous global heating.

If world leaders choose to fail us, my generation will never forgive them

In a stinging speech on Monday, the teenage Swedish climate activist told governments that “you are still not mature enough to tell it like it is. You are failing us. But the young people are starting to understand your betrayal.”

But Thunberg predicted the summit would not deliver any new plans in line with the radical cuts in greenhouse gas emissions that scientists say are needed to avoid catastrophic climate breakdown.

“You have stolen my dreams and my childhood with your empty words,” a visibly emotional Thunberg said.

“The eyes of all future generations are upon you. And if you choose to fail us I say we will never forgive you. We will not let you get away with this. Right here, right now is where we draw the line.”

Suggestion for Miss Thunberg, get an education! Go to the university and get the real facts. Get an education so you can understand the system and the only ways that we can truly deal with our environmental issues! Instead, you sail around the world! Must be nice instead of working or going to school!

And back to health care next week.