Health Care

5 Moves to Watch in Healthcare Reform

Published October 19, 2009 @ 06:00AM PT

Whats Next

With the frenetic activity of the last few months, you may be wondering what’s going to happen next in the healthcare reform carnival. First there was the breathless buildup to bill … after bill … after bill. Then the ensuing media circus took over. Tea partyers continue to spout hyperbolic nonsense we hope bears no resemblance to 18th century history, and many members of Congress regularly emit scaremongering tripe that has nothing to do with campaign contributions from the insurance industry. Really. Meanwhile private insurers progressively expose their ugly underbellies. What’s next?

Take a deep breath and take heart: there is an actual semi-logical legislative process. And you can follow it, in between sideshows. In fact, here is a simplified outline of the complexities, adapted from the National Health Council (you can also download the entire Health Reform Legislation: Potential Impact on Patients PDF):

That final orange step you can’t read is “President signs or vetoes the bill.” Thanks to the NHC for actually putting patients first in this debate and trying to make the process understandable. Now that you’ve got a feel for the overall process (and that there’s a long way to go by the end of the year) here are the five things to watch in the next few weeks.

Senate

  1. Medicare Sustainable Growth Rate (SGR): Consideration of bill to repeal it will be early this week. The SGR, enacted in 1997, has been overridden every year since. Why? It mandates significant cuts to physician Medicare reimbursement rates, which would negatively impact physician willingness to continue treating Medicare patients. One year cost: $11 billion. Ten year cost: $230-247 billion. So why is money to expand patient insurance coverage so hard to come by?
  2. Committee of Three combine HELP and Finance Committee bills: Harry Reid, Max Baucus, and Chris Dodd (and lots of White House reps) first met last Wednesday. Will Reid insert some sort of public option into the combined bill – meaning it would take 60 senators to remove it and only 41 to defend it? Stay tuned.
  3. Threats of anti-trust reform: Late last week Senate Majority Leader Harry Reid responded to AHIP’s pseudo-report promising skyrocketing premiums in an unusual way. He appeared as a witness before the Judiciary Committee to argue that insurers’ anti-trust exemption should be repealed. The potential effects? Large insurer positions would be weakened versus providers, and small insurers (the few that exist) would be weakened versus large ones, as rate-setting information could no longer be shared. Given a nearly identical 2nd insurer study (this time from Blue Cross Blue Shield Association), it’s a good threat, but it doesn’t seem very smart.

House

  1. Medicare +5% for hospitals: House legislation currently offers physician reimbursement under the public option at Medicare +5%, but not hospitals. Nancy Pelosi is now proposing that hospitals also receive that rate, due to rural hospital pushback. Added cost: $20 billion. Will centrist Democrats bite? We’ll see.
  2. Pelosi calls for caucus: Last week’s meeting was cancelled to discuss Medicare +5% instead. But Pelosi wants Democrats to lay their cards on the table regarding a public option. She will ask which of the various public options members can support, or if they cannot support any at all. That feedback will determine which plan she includes in the legislation for a final floor debate.

Meanwhile we can expect more idiotic sound bites like Chuck Grassley’s assertion that healthcare reform is unconstitutional or at least in violation of the 10th Amendment. Funny, medical bankruptcies don’t seem to violate the 10th Amendment. Maybe they don’t have those in the capitol.

Photo Joe// CC BY 2.0

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Comments (27)

  1. Lawrence Mazzuckelli

    I didn't find this article to be particularly helpful since it offered no analysis of any of the proposed legislation. Without that analysis there really is no basis for judging the content of this article.

    Posted by Lawrence Mazzuckelli on 10/19/2009 @ 07:33PM PT

  2. CherokeeGirl  for Change

    I found this really helpful, Gillian, thank you. This is the first bill I've watched go through congress and that flow chart helps me see where we are and how far we have to go. The details are also very helpful, knowing who's working on what. I will use this as reference. Thanks again.

    Posted by CherokeeGirl for Change on 10/20/2009 @ 05:05PM PT

  3. Lawrence Mazzuckelli

    Here's the problem. There is not one bill but five bills that are currently under consideration and will somehow need to be reconciled. That vastly complicates the standard road map for legislation that is reproduced here. In addition the staffs of only three Congress members are working on a "compromise" bill which ostensibly reconcile the differences. The problem is that these members are working in a vacuum and so it becomes extraordinarily difficult for the public to have input in a process that's occurring in darkness.

    One significant problem that Gillian alluded to but didn't completely flesh out are the proposed savings in MediCare. While those cuts may produce some amount of cash for the reform measures being considered, the unintended consequence is that physicians and hospitals will do one of two things to offset the cuts. They will either increase the fees that they charge to MediCare patients or they will no longer accept Medicare. 

    One of the more significant problems that is not addressed in this article is ..How will this whole thing be paid for? So far no one has given a realistic answer to that question.

    Posted by Lawrence Mazzuckelli on 10/21/2009 @ 04:32AM PT

  4. CherokeeGirl  for Change

    Doctors have a certain amount of patients they have to take that are on medicare. Once that quota is reached, they no longer have to accept them. This makes it hard to switch primary care docs, but with older people, this rarely happens anyways. It's the new medicare folks that have a hard time.  Hopefully that will be addressed as part of reform.

    As to paying for it, there are a number of easy ways to do that.

    1. Allow the Bush Tax cuts to expire (390 bill/yr)

    2. Eliminate the half a trillion in subsidies that go to insurance companies from tax dollars, 70 bill each year.

    3. Ask that those who make over a million a year pay an extra tax. Last I heard it would be 2 or 3%.

    Posted by CherokeeGirl for Change on 10/22/2009 @ 10:54AM PT

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  5. Lawrence Mazzuckelli

    But these are all taxes. The problem with taxation is that it gives the government incentive to spend more and we're already in debt and its a dis-incentive to grow business and hire people and unemployment is already marching past 10%.

    Were I fortunate enough to be earning a million dollars a year and I knew that my efforts would be punished by higher taxes, I'd make certain that I only earned $999,999.00. 

    If you really want to fund a Trillion dollar program, cut a Trillion dollars from the federal budget. The president did say that he wanted a plan that was "deficit neutral."

     

     

    Posted by Lawrence Mazzuckelli on 10/22/2009 @ 11:46AM PT

  6. CherokeeGirl  for Change

    Okay, let's cut the defense budget. At least Obama put the wars "on the books" which makes everything seem like it's his fault. I also find it interesting that people bring up the deficit except when it's about war. Anything that's for the people it's "how we gonna pay for it?" I think I've shown, that even without Horzag, I have identified some low hanging fruit.

    I don't like paying 25% of my pay to taxes, believe me! Canadians pay about 35% and they get healthcare for $50 a month. What's up with that?

    They also get 6 weeks off a year paid vacation, and so do they in Europe. Americans had low self-esteem, but we're getting it back.

    There are many things to fix, and Obama is pay as you go. This bill will be paid for, but not on the backs of the middle class (for once.)

    Posted by CherokeeGirl for Change on 10/22/2009 @ 12:05PM PT

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  7. CherokeeGirl  for Change

    oh, and the half a trillion in subsidies of our tax dollars to insurance companies who make 426% profit, that's not a tax, it's a tax paid subsidy to an industry that doesn't need it or deserve it.

    If you are in insurance, you should think about what you would really like to do for a living if you had your wish. You could go back to school and retrain for a new career, that's what I'm gonna do.

    Posted by CherokeeGirl for Change on 10/22/2009 @ 12:07PM PT

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  8. Michael Langley

    CherokeeGirl,

     

    I don't know where you get your information, but I do not think doctors have been required, by law, to take a certain number of Medicare patients, yet.  In reality, no doctor can afford to not take Medicare, but many do not "accept assignment" which means the patients is responsible for what Medicare will not cover.  The big question is , exactly how many doctors will just retire early and say, "the heck with all this stuff!"

     

    The insurance industry has been telling doctors and patients what was acceptable for along time. The only change will be, is that it will be the government paying. Everybody expects that to be able to cover the huge cost of the program.  We shall see.

    Posted by Michael Langley on 10/25/2009 @ 02:42PM PT

  9. CherokeeGirl  for Change

    75% of doctors polled want a public option

    10% of those docs would prefer a single payer system.

    Posted by CherokeeGirl for Change on 10/27/2009 @ 10:28AM PT

  10. CherokeeGirl  for Change

    Hi Michael, I get my information from a hodge podge of places. Much of it is my own experience working in healthcare as well as just being a patient. My mother did have a tense moment when a doctor told her he wasn't accepting any more medicare patients. He explained that they only have to accept a certain number. She eventually got a doctor that accepts medicare, but she probably won't switch docs again. That's scarey.

    Posted by CherokeeGirl for Change on 10/27/2009 @ 11:09AM PT

  11. Reply to thread
  12. Gillian Hubble

    Only the two Senate bills that passed their committees require reconciliation, the HELP and Senate Finance Committee bills. These have been included on the diagram above, which has been adapted for the healthcare reform legislative process.

    A better question to ask regarding cost is how to sustain the status quo when it will require 30% of GDP by 2040. Families USA found that insurance prices have risen 92.2% since 2000, while income has risen only 17.5%. How will we continue to pay for that?

    Posted by Gillian Hubble on 10/21/2009 @ 10:29AM PT

  13. CherokeeGirl  for Change

    here here! the cost of no action is a disaster. I don't want half of my income going to healthcare costs in ten years. I don't know why the tea partiers aren't protesting that!

    Posted by CherokeeGirl for Change on 10/22/2009 @ 10:56AM PT

  14. Reply to thread
  15. Lawrence Mazzuckelli

    I don't think anyone has said maintain the status quo, that notion is a simple fiction. If the problem is healthcare insurance then "fix" healthcare insurance but don't tinker with healthcare delivery to do it. Its like replacing your cars engine when all you really need is an oil change. 

    Your response while providing food for thought avoids the whole question of how do we pay for it? Whether its the 2300 or the Baucus "bill" neither has adequately answered that question.

     

    Posted by Lawrence Mazzuckelli on 10/21/2009 @ 01:16PM PT

  16. CherokeeGirl  for Change

    The Baucus bill is a joke, they are just trying to figure out how to save face for him, but I think it's too little too late. I just don't like the way Dodd, Baucus and Reid were laughing it up yesterday.

    If Dodd is our advocate, I'm not very optimistic. We may have to push him aside and be our own advocates, as usual.

    Posted by CherokeeGirl for Change on 10/22/2009 @ 10:57AM PT

  17. Lawrence Mazzuckelli

    I have a question and a comment. The question is:Why is the Baucus "Bill" a joke?

    My comment is that democracy in a republic such as ours demands that we be our own advocate and, in fact, empowers us to do so.

    Posted by Lawrence Mazzuckelli on 10/22/2009 @ 11:20AM PT

  18. CherokeeGirl  for Change

    Google "Wendell Potter". In case you may have been in a cave for the past 6 months, he has called the Baucus bill "a gift to the insurance industry". And it's really not a gift, it has been bought and payed for. See http://opensecrets.org for a quick lookup by senator. Also, here's a good change.org article to get you up to speed.

    http://healthcare.change.org/blog/view/the_baucus_health_care_plan_here_be_accounting_tricks

    Posted by CherokeeGirl for Change on 10/22/2009 @ 11:37AM PT

  19. Lawrence Mazzuckelli

    "Google "Wendell Potter". In case you may have been in a cave for the past 6 months, he has called the Baucus bill "a gift to the insurance industry". 

    I was asking for your personal opinion. I didn't expect to have to wonder why you would think I lived in a cave.

    I'm still at loss as to why you would refer me to a journalist (Wendell Potter) for analysis of proposed legislation. I simply assumed that you had read the so-called "Baucus Bill" and had formed your own opinion.

    Posted by Lawrence Mazzuckelli on 10/22/2009 @ 03:20PM PT

  20. CherokeeGirl  for Change

    please excuse my rudeness, Larry. I just can't believe you haven't heard about Wendell Potter, the former Cigna Executive turned insurance industry whistleblower. He had a moment of "clarity" while trying to gather information on the free health clinics (freeclinics.us). When he saw the people standing in line, and his son was with him, he had an epiphany.

    http://www.time.com/time/politics/article/0,8599,1920893,00.html

    Posted by CherokeeGirl for Change on 10/22/2009 @ 03:45PM PT

  21. Reply to thread
  22. Gillian Hubble

    I encourage you to explore the year's worth of posts archived on this site, which will answer your questions. US healthcare has systemic issues, from insurer to patient to provider. Tinkering around the edges got us to this point.

    By the way, discussing these issues with our community members is faster than asking me, because as the editor I post so others can discuss!

    Posted by Gillian Hubble on 10/21/2009 @ 08:16PM PT

  23. Mary Acosta

    Funny........it's odd nobody asked how much will it cost to bail out Wall Street??

    Posted by Mary Acosta on 10/22/2009 @ 11:45AM PT

  24. Lawrence Mazzuckelli

    Ask the White House because that's where a majority of the small amount of TARP money that was spent has gone--to Wall Street.

    It was supposed to create jobs but it hasn't. It was supposed to buy "toxic assets" but it didn't. Unemployment is increasing and so are foreclosures.

    Posted by Lawrence Mazzuckelli on 10/22/2009 @ 11:50AM PT

  25. CherokeeGirl  for Change

    Larry, you have your talking points, but have you questioned the source? It is no longer called news.

    I'm ticked about the tarp too. I'm ticked at Geithner and I'm ticked at Holder, but I don't watch Faux news for fake reasons to be mad. There are plenty of real valid reasons.

    The Recovery Plan will go down in history as saving this country. You are too impatient. And, you are welcome.

    Posted by CherokeeGirl for Change on 10/22/2009 @ 12:10PM PT

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  27. Lawrence Mazzuckelli

    So let me get this straight.......the only way anyone could possibly have the views I have or you think I have is if all I do is watch FOX News all day and memorize. Wow!

    That's pretty insulting.

    Mary Acosta asked a question. I gave her answer. As far as the content of my answer it can be found in the all the major media outlets including wire services, newspapers, TV, and the internet, yada, yada, yada. I don't think Fox owns all of those. And I certainly don't remember my third grade teacher telling me to not do my own research.

    Fact is Cash for perfectly good cars didn't create jobs and didn't get GM or Chrysler out of financial trouble. Ford didn't take that money. Ford made a profit. I did'n need anyone on Fox to explain that to me.

    Unemployment figures are available from the government. I didn't need Fox for that.

    Housing data is available from several sources including the government and National Association of Realtors. So I didn't need Fox News for that either.

    Many only conclusion is that you believe that because I have a different opinion I'm either a shill for Fox or too stupid to figure things out all on my onesies. 

    I resent both of those conclusions.

    How patient is the person who was promised a job this year but hasn't gotten it? How patient is the person whose home was saved from foreclosure only to find that they're facing the same problem for the same reasons again after being "rescued" by the feds.

    Tell me something, if you will. When you find yourself in personal debt (its happened to virtually every one) how do you get out of debt? Borrow more money?

    Posted by Lawrence Mazzuckelli on 10/22/2009 @ 03:32PM PT

  28. CherokeeGirl  for Change

    Larry, again, apologies for my impatient tone. The problem is, there are actually people who get paid to come on progressive sites and cause disruptions, derail the conversation by asking questions. Their purpose is to distract from a real conversation. They are called Trolls.

    People who think for themselves and have genuine arguments are always welcome here, but your stuff sounds so much like the latest talking points, that it's hard not to assume that you are a troll.

    Again, my apologies. I'm always open to a genuine conversation.

    To answer your last question. I lost my organic coffee bar in 2006 after a major grocery chain closed down next door. I didn't get a bail out. I had to lose the good credit I had worked for years to build, lost my IRA and 401k, lost my house.

    To answer your question, thousands of people file bankruptcy every day due to medical bills. This is not the America I dream of.

    I would like parks, universities, post office, and hospitals to all be a public service. I want profit out of our care, and I want an end to the real death panels.

    Posted by CherokeeGirl for Change on 10/22/2009 @ 03:50PM PT

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  29. CherokeeGirl  for Change

    Thanks Larry. It's a valid question. There are problems with medicare that need to be solved. But don't you agree that at least WE have control over that by means of our so called representatives in congress, than we do to expect the insurance company monopoly to do the right thing. Medicare being in the red, as I understand it, is solved in the House bill, so that it is extended for many years to come. I don't know the details of the medicare reform, but there are people I trust, like Howard Dean and Rep. Anthony Weiner to keep a close eye on the legislation for me.

    I am peeved at having to tell congress to do their jobs and represent the people, but I think we are closer than ever to advocating finally for the people. But we did take our eyes of the ball. When we go to sleep, the wolves creep in.

    peace out... :)

    Posted by CherokeeGirl for Change on 10/23/2009 @ 09:55AM PT

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  30. Reply to thread
  31. I ask people to consider signing these health care petitions at change.org for either a strong  public option that will work like HR676 but allow private plans and the other petition for those who want single payer.

    Sign these

    http://bit.ly/public_option

    http://bit.ly/HR676

    Thank you.

    Posted by Liberal Democratic Party Of The United States on 10/25/2009 @ 09:53AM PT

  32. CherokeeGirl  for Change

    Thanks FDR, I hadn't seen these yet. I also passed them on to my friends. Thanks again. :)

    Posted by CherokeeGirl for Change on 10/27/2009 @ 11:13AM PT

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Author
Gillian Hubble

Gillian Hubble is owner of Actively Fused, a consulting and healthcare advocacy firm, and a partner in KDG, a business development firm.

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