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Jul
10

Health reform – I still don’t see it

Word from Washington this morning is the 52 members of the House Blue Dog (moderate Democrat) caucus are none too happy with the high cost, employer mandate, and public option provisions of the House bill.
Meanwhile, Politico is applauding the Senate Finance Committee for actually making progress on a bill that they admit will never pass the full Senate. That’s laudable? Seems more like Politico is awarding a medal for showing up for practice…
Among the Blue Dogs there are both short term concerns (can I get re-elected if I vote for a bill that’s going to either a) add a trillion dollars to the deficit over ten years; b) raise taxes to avoid a deficit explosion, or, heaven forbid, c) both, and long term concerns – adding 50 million more people to the rolls of the insured would drive up demand, increasing the nation’s health care costs, and there are no credible cost containment measures in any of the bills (except Wyden Bennett’s Healthy Americans Act) under serious consideration.
It is likely the Blue Dogs, and perhaps a few Republicans as well, could hold their noses and vote for a bill that had a mandate if there were savings that were scored as such by CBO.
Most think there’s going to be a comprehensive health reform bill.
I’m less sure – much less.

Without meaningful cost containment, Senators and Congresspeople will balk at the price tag, and the long term implications for the deficit.
As well they should.
The deals struck to date with hospitals and pharma are nowhere near enough to get us where we need to be – a dramatic reduction in medical cost trend. There’s a lot more heavy lifting to be done before we have a bill that’s viable.


6 thoughts on “Health reform – I still don’t see it”

  1. The current Leadership in Washington has been a disappointment. They talk pretty yet seemed focused on passing anything. Their first mistake was trying to do too much at once. They wasted surplus currency on a wide variety of issues and now may walk away with very little that folks will be paying off for decades. Second mistake was to believe you are above the laws of politics, no one is and loyalty is fleeting. I never thought we would be in this position so soon. The “mo” for change in health care was there, even the Republicans were there, not that there is many of them. In change management you need to understand the issues prior to prescribing solutions and ideology usually kills any viable solutions.

  2. Hey Joe: Here’s a take of how it looks right now from some of us in the trenches (subject to change daily, of course) based on some of the latest twists:
    — not likely to get anything this summer, will push to fall at best
    — employer plans likely to remain a primary vehicle
    — if any modification to tax exempt status, it will be only be at the very high end and on the margins. Unions and government worker plans (robust benefits) will remain exempt.
    — public option really starting to suck wind, unlikely to survive
    — recent Emmanual comments indicate direction toward admin just wanting to sign “something” and declare victory
    — in the end, best guess is as part of solution it will be agreed to establish some type of non-partisan technocrat-panel ala Fed Reserve to oversee healthcare, establish health policy, regulate the practice and business sides of the equation and begin attempt to incrementally stem the tide of costs (evolution not revolution). Only then will the really tough issues that politicians don’t want to touch but necessary for change begin to be addressed.

  3. Will we have a health bill that is viable for the 50 million Americans, that have no health insurance?? I wonder. I simply don’t trust congress. The big insurance people will be the ones who will benefit.

  4. Will we have a health bill that is viable for the 50 million Americans, that have no health insurance?? I wonder. I simply don’t trust congress. The big insurance people will be the ones who will benefit.

  5. Joe, I always enjoy reading your comments, and the updates on Healthcare debate.
    To add to the mix, I still don’t understand the rush to a healthcare bill that might cause so many unintended consequences. If all the uninsured somehow were covered tomorrow, the supply and demand will be off regarding treating providers and the cost is going to go up on healthcare. That seems pretty common sense to me.
    I have two examples of why I don’t want to pay for everyone’s healthcare. I had an employee a month ago plop in my office and drop his healthcare ($82 month) to pick up full Dental. I couldn’t talk him out of it. Another person tells me of an ACL tear of a soccer leage player that didn’t have group coverage by choice, but paid to be in an adult soccer league.
    As I have said often, my company has about a 4% increase each year for Health premiums. We are a responsible company. A rush to a bill that will essentially punish the smart companies and reward the crazy people that just choose to not have insurance seems mis guided.

  6. Oh, you will see a bill Joe, unfortunately it will not be a good one. At this point, the White House just wants to see a BILL, because they promised us we would see one. It will be NOTHING like what was initially intended, and it will be rushed,expensive, and have very little, if any cost containment and filled with pork. But that’s ok, as long as a Bill is passed, right? So sad……

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Joe Paduda is the principal of Health Strategy Associates

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