Very big developments in the health care reform bill being considered by the Senate. The latest is that a bunch of Senators have negotiated away the Public Option in favor of: expanding the age of Medicare eligiblity down from 65 to 55; doing some regulatory ju-jitsu to allow nonprofit health plans to compete in the insurance exchanges; and requiring health plans to spend 90 percent of every health premium dollar on actual health care.
I think that last one might be the most interesting. By some estimates, plans now use 70 percent of every premium dollar on actual health services. That would be a big change, and in theory could make health care less expensive and more efficient. Health plans in MN are required to be nonprofit and are currently spending 91 percent of ever premium dollar on health services. So it can be done. But it will be a big change for some of these for-profit plans. IF this actually happens, it could be that health plans nationwide are going to rue the day they celebrated the death of the public option.
The change in Medicare is going to be bitterly fought by hospitals and providers, who insist that they can't get by on current Medicare reimbursements. If you expand the number of people using Medicare, then the dollars coming in will be even less.
I understand their concerns, but really, doesn't everybody agree we have to bring health care costs down? So how will we do it without someone taking a hit? If the medical community had united in insisting on stronger reforms for the insurance side (ie public option or something like it) then the dollars would've come from health plan profits. Now... well, they didn't want a big govt plan for everybody, so they won't get one. But they will get a larger chunk of the population on Medicare, and less reimbursement. Tell me, do you think physicians will throw their hands up, say "I quit" and take on a different job, like, say, public school teacher, or sanitation worker?
Sorry to be snarky, but I don't think so either. There is no fixing this system without someone experiencing a little less income. The Medicare change means that someone is probably going to be (some) doctors. I would rather it had been insurance company CEOs. Maybe with the new 90 percent rule, we'll see some changes there too.
The bottom line is; everybody to right of Evan Bayh (not the most liberal of senators by a long shot) was screaming about socialized medicine and the horrors of a public option.
Maybe they should've been careful what they wished for.
I continue to think that the public option, or something like it, will eventually be tried. But what we're looking at with this bill is: regulation of plans to force them to be more inclusive and more efficient, controlling payments to providers, subsidizing citizens to help them afford premiums, and some combination of taxes/subsidies for businesses--depending largely on the size of the business. There's a lot more, obviously. But all of that falls squarely in the "significant reform" camp in my opinion. And it is very much still a private/public mix with the emphasis on private insurance.
Still, a big improvement over the current death spiral; again, in my opinion.
Update: I've been gently reminded by a certain provider that low Medicare reimbursments are a real financial problem for many primary care physicians and hospitals. And there is an actual trend away from primary care as a career because of such financial pressures. As with all of the health care reform debate, it's complicated, and my "doctors won't take up ditch digging" snark was probably an unfair dig in itself. For the record, Medicare reimbursments are an issue that many health care reformers are trying to address, and there are various parts of the current reform bill that take on this issue. I'm not sure yet how those are faring in the latest negotiations, but I'll try to provide an update at some point. In any case, reform is an ongoing process that is going to need a lot of fine-tuning. Medicare certainly is going to have be tweaked as we go down this road. But it will be easier, not harder, to do that if reform passes.
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