Tuesday, December 22, 2009

Senate OKs Health Bill Amendment, Limits Debate On Full Bill

By ALLISON BELL
Life & Health Magazine
12/22/2009


Members of the Senate today voted 60-39 both to approve a major manager's amendment to H.R. 3590, the Senate health bill, and to protect the bill from a filibuster.

The 383-page Reid-Baucus-Dodd-Harkin amendment, Senate Amendment 3276, was unveiled Saturday. It would make many major changes to the underlying Patient Protection and Affordable Care Act bill, such as replacing a proposed public health plan to be run by the U.S. Department of Health and Human Services with a system of regional plans to be provided by private companies but administered by the U.S. Office of Personnel Management.

The PPACA bill amendment also would cut Medicare physician reimbursement rates 21% in 2010, rather than increasing reimbursement rates 0.5%; restructure a proposed system for imposing annual fees on health insurers; increase a proposed hospital insurance payroll tax on high-income workers; encourage states to establish medical malpractice dispute resolution pilot programs; index a proposed $2,500 annual cap on flexible spending account contributions for inflation; and require the HHS secretary to study whether self-insured health plans achieve any cost savings through efficiency or by skimping on benefits.

The vote on protecting the full PPACA bill from a filibuster, or endless round of debate by opponents, was really a vote for cloture for Substitute Amendment 2786 to H.R. 3590.

Senate Majority Harry Reid, D-Nev., used an existing House bill, H.R. 3590, which originally was intended to create a tax break for members of the armed forces who were buying homes, as a vehicle for introducing the PPACA bill. Technically, the PPACA bill is an amendment to H.R. 3590.

After the party-line votes on the manager's amendment and cloture, Reid urged members of the Senate to think about the spirit of Christmas over the next few days and set any personal animosity aside.

"To quote Rodney King, 'Let's all try to get along,'" Reid urged.

Senate Minority Leader Mitch McConnell, R-Ky., said he gets along well with Reid, that there is no personal animosity as a result of the health bill debate, and that he expects to work out a deal to provide certainty about when work on H.R. 3590 will end.

Senate Democratic leaders now are suggesting that the Senate may hold the final vote on H.R. 3590 at 7 p.m. Thursday, on Christmas Eve. Members of the Senate today voted 60-39 both to approve a major manager's amendment to H.R. 3590, the Senate health bill, and to protect the bill from a filibuster.

Senate Democratic leaders now are suggesting that the Senate may hold the final vote on H.R. 3590 at 7 p.m. Thursday, on Christmas Eve.

Monday, December 14, 2009

Health Reform Update

December 14, 2009
NAHU News


Media coverage of the Sunday talk shows note Senate Majority Leader Harry Reid (D-NV) faces a difficult task in cobbling together a 60-vote majority to advance the healthcare legislation. The newest challenge came as Sen. Joe Lieberman (I-CT) announced he would not support a compromise Medicare buy-in provision, which several media reports suggested contradicted Lieberman's commitment to Senate leaders during the previous week.

The Washington Post (12/14, Murray) reports that the "next 48 hours will be critical to the fate of healthcare reform in the Senate, as Democratic leaders struggle to settle disputes that stand in the way of holding a final vote this year on the massive package." By mid-week, Senate Majority Leader Reid "must begin the process of ending debate on the $848 billion bill or risk missing his deadline of final passage by Christmas, pushing the contentious healthcare debate into early 2010." Most of the "undecided lawmakers have refused to commit until the Congressional Budget Office delivers a cost analysis on the coverage alternatives offered last week by a group of five liberal and five conservative Democrats to replace the government insurance option originally included in the legislation."

Lieberman threatens to oppose bill if it includes Medicare buy-in. The AP (12/14, Woodward) reports that Sen. Joseph Lieberman (I-CT), "whose vote is critical to the bill's prospects, threatened Sunday to join Republicans in opposing healthcare legislation if it permits uninsured individuals as young to 55 to purchase Medicare coverage." The Senator "expressed his opposition twice during the day: first in an interview with CBS, and more strongly later, according to Democratic officials, in a private meeting with" Majority Leader Reid. Democratic aides, "speaking on condition of anonymity, said Lieberman later told Reid he would support a Republican-led filibuster against the bill if it contained the Medicare provision or permitted the government to sell insurance in competition with private companies."

The New York Times (12/14, Pear, Herszenhorn) reports Lieberman's statement was a "surprise setback for Democratic leaders," and "supporters had said earlier that they thought they had secured Mr. Lieberman's agreement to go along with a compromise they worked out to overcome an impasse within the Democratic Party." Senate Democratic leaders, "including Mr. Reid and Senator Charles E. Schumer of New York, said they had been mindful of Mr. Lieberman's concerns in the last 10 days and were surprised when he assailed major provisions of the bill on television Sunday." A Senate Democratic aide, "perplexed by Mr. Lieberman's stance, said, 'It was a total flip-flop, and leaves us in a predicament as to what to do.'"

The Wall Street Journal (12/14, Williamson, Hitt) reports that in addition to Lieberman, Sen. Ben Nelson (D-NE) also expressed concerns about the Medicare buy-in proposal, noting that he called it "the forerunner of single-payer, the ultimate single-payer plan, maybe even more directly than the public option." The Washington Times (12/14, Lobianco) and The Hill (12/14, Zimmermann) also cover the story.

McCaskill to vote against bill if CBO score shows costs up. Politico (12/14) reports Sen. Clare McCaskill (D-MO) "says she'd 'absolutely' vote against healthcare overhaul legislation if it raises costs and the deficit." On Fox News Sunday, McCaskill said, "My statement all along is it has to slow down the increase in healthcare costs over time, and that is bending the cost curve and secondly that it has to be deficit neutral."

McConnell says Democrats in "serious trouble" on healthcare. The AP (12/14) reports Senate Minority Leader Mitch McConnell (R-KY) "says it's a stretch to think the Senate can finish its massive healthcare legislation before Christmas." On CBS' Face the Nation, McConnell said Democrats "are grappling with internal divisions and negative public opinion about the overhaul taking shape," and added "they're in serious trouble on this."

Monday, December 7, 2009

2010: The Year of the Health Savings Account

November 26, 2009
By Robert Hopper, Ph.D.


If you were the CEO of a large corporation and knew premiums would continue to rise, what actions would you take to prepare for the future? An October 23, 2009 report in the Consumer Driven Market Report, a subscription insurance newsletter, provides some insights.

"The huge Blue Cross Blue Shield of Florida will offer only an HSA product to employees next year in the latest sign that larger employers, government workers and unions will be a major source of total replacement offerings in 2010." Total replacement means that companies eliminate traditional HMO and PPO plans and replaces those plans with an HSA-qualified health plan.

Stop and consider the implications of this quote. Who knows more about insurance than insurance companies? And why are they switching totally to HSA-based plans? The answer is simple. Like all businesses they are looking for ways to control their health care costs while still attracting and retaining the best and brightest employees. They think HSAs are the solution.

The above-mentioned report also noted that General Motors just announced it would only offer HSA-based plans to its salaried employees. That's big news. When GM declared bankruptcy, the American taxpayer -- you and me -- bailed them out. Now we expect GM to be smart about controlling health care costs and they respond by choosing HSA-based plans.

Here's an interesting parallel. Instead of traditional health plans, GM will offer its employees a hybrid health plan that couples an affordable high deductible health plan for large and unexpected medical bills with a tax-efficient health savings account for the routine and expected medical expenses. Similarly, GM will offer the American public new hybrid cars that couple a gasoline engine for highway driving, and electric motor for stop-and-go city driving. Hybrids will play a big role in the future.

Wednesday, November 25, 2009

"Cancer of Fraud" Permeates U.S. Healthcare System

Nov 25, 10:43 AM EST

MIAMI (Reuters) - It's a crime so profitable that even dead people are in on the act.

A U.S. Senate committee revealed last year that public health insurer Medicare had paid as much as $92 million from 2000 to 2007 for medical services or equipment ordered or prescribed by doctors who were dead at the time.

Many had died more than five years before the date when they supposedly ordered or authorized the service.

Healthcare fraud said to cost U.S. taxpayers hundreds of billions of dollars a year has garnered increased attention amid the congressional debate about overhauling the U.S. healthcare system -- especially since President Barack Obama wants to cover some of the cost of reforms by fighting abuse.

Yet interviews with several law enforcement and healthcare experts indicate the president may be disappointed.

Some fear the focus on fraud may come as too little, too late after years of government complacency and inaction.

Experts like the FBI's John Gillies say the problem has been getting worse all the time, as mob figures and violent criminals are lured by fabulously easy money and relatively light prison sentences into fraud targeting Medicare, the federal health insurer for more than 43 million elderly and disabled Americans.

"There are so many schemes involved. Take any aspect of the healthcare industry and there's a fraud going on in there right now," Gillies, special agent in charge of the FBI Miami Division, told Reuters in a recent interview.


GROUND ZERO FOR FRAUD

Florida has long been known for its unsavory association with cocaine cartels, political shenanigans and swampland real estate deals.

Gillies says the state is also now "ground zero for healthcare fraud" since so many elderly Americans have retired to end their days in its famous sunshine.

Hardly a week goes by without authorities in Florida reporting another arrest, indictment or conviction for Medicare fraud, which has replaced the drug trade as the crime of choice among many criminals.

The cases often involve multimillion-dollar schemes featuring bogus suppliers of wheelchairs, or other so-called durable medical equipment devices, and sham infusion therapies for the treatment of HIV and AIDs patients.

One case filed recently in South Florida included the indictment of 11 members of New York's Bonanno crime family, and prosecutors say the crimes are becoming more elaborate, involving kickbacks, stolen identities and manipulative billing practices.

"When we shut down one scheme they just move onto the next scheme," said Gillies, referring to fraudsters perpetrating one of the most lucrative financial crimes in America today.

"I do not see it slowing down any time soon," he said.

The FBI estimates that fraud accounts for 3 percent to 10 percent of U.S. healthcare expenditure per year, and Gillies said it could easily cost about $200 billion annually.

That is broadly in line with a Thomson Reuters report released on October 26. The report said that in 2007, when the United States spent nearly $2.3 trillion on healthcare and both public and private insurers processed more than 4 billion health insurance claims, fraud was estimated to reach as much as 10 percent of annual healthcare spending.

At that rate, due largely to fraudulent Medicare claims, kickbacks for referrals for unnecessary services and other scams, the losses in 2007 would have been more than $220 billion.

The National Healthcare Anti-Fraud Association, an organization of about 100 private insurers and public agencies, estimates that some $60 billion, or about 3 percent of total annual healthcare spending, is lost to fraud. But the Thomson Reuters report said that figure is considered conservative.

Sunday, November 22, 2009

Ohio 10th Fattest State, According to Obesity Report

Journal-News
Tiffany Y. Latta, Staff Writer
November 22, 2009


Ohio is tied with Arkansas with 28.6% of adults obese, joining a top 10 list that included three states that border Ohio — West Virginia, Michigan and Kentucky.

The annual report, “F as in Fat: How Obesity Policies Are Failing in America” by Trust for America’s Health and the Robert Wood Johnson Foundation, ranked Ohio 17th fattest last year.

The report this year also says Ohio’s youth are among the nation’s fattest as well. The foundation ranked Ohio 15th in the nation with 33.3 percent of youth ages 10 to 17 overweight.

“Our health care costs have grown along with our waistlines,’’ said Jeff Levi, executive director of Trust for America’s Health. “The obesity epidemic is a big contributor to the skyrocketing health care costs in the United States. How are we going to compete with the rest of the world if our economy and work force are weighed down by bad health?”

Adult obesity rates increased in Ohio and in almost half the states in the nation and didn’t decrease in a single state in the past year, according to the report.

Expanding waistlines are predicted to get worse in the next year due to the economic downturn. Dr. Brad Watkins of Cincinnati Weight Loss Center in West Chester Twp. said emotional eating and depression are major factors in obese patients. “Obesity is a very intensely complicated disease. It’s not simple,” he said.

Watkins said doctors need to discuss fitness and nutrition education and address emotional issues, such as depression, sexual abuse and other factors that can lead to obesity.

The Office of Healthy Ohio released an obesity prevention plan earlier this year. The plan has three goals: 1) improve physical activity options and opportunities; 2) improve nutrition and access to healthy food choices and limit access to unhealthy food and beverage choices; and 3)improve the coordination of policy and resources directed to the prevention and reduction of obesity especially among those populations most at risk.

“This plan is a road map to use in our efforts to make Ohio the state of living well,” said Ohio Department of Health Director Dr. Alvin D. Jackson. “It took us a long time to get to this unhealthy state, and it will take time and effort to reverse these troubling trends. Doing nothing is not an option.”

Friday, November 20, 2009

This Week in Health Reform: November 20, 2009

This week focused on the unveiling of Senate Majority Leader Harry Reid's (D-NV) proposed health care reform legislation.

House and Senate Negotiations

Senate Majority Leader Harry Reid unveiled his version of health care reform legislation on Wednesday night after receiving cost estimates from the Congressional Budget Office (CBO). With a price tag of $849 billion over ten years, the bill will reduce the deficit by $127 billion over a decade and cut Medicare spending by $500 billion, while increasing taxes by $500 billion. In addition, the bill will:

* Provide coverage for 31 million Americans who currently lack health insurance,
accounting for 94 percent of eligible Americans

* Offer a government-run option of which states can opt out

* Expand Medicaid

* Require most Americans to carry health insurance, providing subsidies for those
who cannot afford it and imposing weak penalties for violations

* Bar insurance companies from denying coverage based on pre-existing conditions or
dropping coverage for those who become sick

* Impose penalties on medium and large sized employers for not providing health
insurance to employees

* Increase the Medicare payroll tax on higher-income workers

* Imposes fees totaling $101.9 billion on insurance companies, drug makers, and
medical device manufacturers over ten years

* Impose a tax on high-cost health insurance plans provided by employers to their
employees.

While Democrats remain committed to passing the legislation, it is not certain that Reid has the 60 votes needed to bring the measure to the floor for debate. Several moderate democrats, including Sens. Mary L. Landrieu of Louisiana, Blanche Lincoln of Arkansas and Ben Nelson of Nebraska have expressed concerns over the inclusion of a government-run plan. Sen. Sherrod Brown (D-OH), however, expressed in a meeting Monday night with Reid that liberal lawmakers had conceded enough ground on the government-run plan and that he should push forward with the bill.

Members of the Senate will convene on Saturday for a rare weekend session to hold a procedural vote, deciding whether or not to bring the legislation to the Senate floor for debate.

Immigration and Abortion Remain Central to the Debate

Access to care for illegal immigrants will continue to be contentious as lawmakers work to reconcile the health care legislation passed by the House and pending in the Senate. Under the bill approved by the House, illegal immigrants would not be barred from using their own money in the newly-created insurance exchanges. White House officials and members of the Senate Finance Committee, however, pledged that undocumented workers be barred not only from receiving subsidies but also from buying insurance through federally sponsored exchanges - even with their own money.

As Senate Majority Leader Harry Reid works to finalize the legislation, he will also need to address the question of federal funding for abortions, an issue that has proved starkly divisive. Because of pressure from the Catholic Church and anti-abortion groups, the House-approved bill restricts the use of taxpayer funds for abortions, a decision that has sparked a heated debate among pro-choice and pro-life advocacy organizations. In contrast, the Senate's proposed bill would allow the use of federal funds for abortion in cases of rape and incest, requiring insurers that cover elective abortions to segregate money from Americans who get government subsidies.

Public Opinion

A new Washington Post-ABC News poll shows that Americans are deeply divided over the current health care proposals and that the majority believes costs will rise. 48% say they support the proposed changes to overhaul the health care system, whereas 49%are opposed. In addition, 52% say an altered system would probably make their own care more expensive, and 56% see the overall cost of health care in the country going up as a result of the reform.

Furthermore, a recent Associated Press (AP) poll shows that Americans are split (43 percent opposed; 41 percent support) over the health care plans being discussed in Congress. The AP poll also suggests that the public is becoming more attuned to the details of the proposals, including the cost implications and the public option. And, according to a Quinnipiac University poll released Thursday, 53 percent of voters disapprove of President Barack Obama's handling of health care reform.

However, a new CBS News poll shows that only one in four Americans prefer to have no health care legislation at all, while 51 percent support a bill with a public option.


CMS Report Indicates Costs Would Rise Under House Bill

According to a report issued by Richard Foster, the chief actuary at the Centers for Medicare and Medicaid (CMS), overall spending on health care would rise as a result of the legislation approved by the House. Specifically, the measure to reduce more than $500 billion from future Medicare spending would sharply reduce benefits for some seniors and may jeopardize access to care for millions of others.

Drug Makers Increase Price, Anticipating Health Reform

The media has reported that the drug industry has been raising prices at its fastest rate in years, in anticipation of the costs associated with health care reform. These costs include the $80 billion in fees over the next decade that the industry agreed to in order to help pay for coverage of the uninsured.On Wednesday, Democrats in Congress asked for two separate investigations of drug industry pricing.

Economists Endorse Health Care Reform Bill: Twenty-three high profile economists from universities and think tanks sent a letter to President Obama on Tuesday to support four important elements of health reform legislation critical to its success: deficit neutrality, an excise tax on high-cost insurance plans, an independent Medicare commission, and delivery system reforms.

Looking Ahead

The Senate will convene on Saturday for a procedural vote, deciding whether or not to bring the legislation to the Senate floor for debate. Debate could continue throughout the weekend.

Thursday, November 19, 2009

Senator Calls for Investigation Into Report That Drugmakers Sharply Raised Costs

Fox News
November 19, 2009


Democratic Sen. Bill Nelson of Florida is urging the Department of Health and Human Services inspector general to investigate reports that prescription drug makers are raising prices ahead of Congress' sweeping health care overhaul.

Sen. Nelson is urging the inspector general of the Department of Health and Human Services to investigate reports that prescription drug makers are raising prices ahead of Congress' sweeping health care reform bill.

In a letter sent to Health inspector Daniel R. Levinson on Wednesday, Nelson said he is proposing an amendment that would force the country's biggest pharmaceutical companies to offset more of the costs.

Nelson cited a recent AARP study that found that drugmakers have dramatically upped the cost on commonly used brand-name drugs. "I want to know if there's a back-door move under way by the drugmakers to recover some of the concessions they've promised for health care reform," Nelson said.

The analysis by AARP's Public Policy Institute released Monday found that the price of many prescription drugs used by Medicare beneficiaries rose by 9.3 percent from October 2008 to September 2009 -- a rate that's higher than usual when compared to previous years.

The study reported that prices increased for 96 percent of brand-name drugs over the last year -- despite a negative general inflation rate.

"This report confirms what most older Americans already know: drugmakers are raising their prices and enjoying windfall profits, even as the rest of the economy is suffering," AARP Executive Vice President John Rother said in a press release Monday.
"The pharmaceutical industry should be embarrassed when it sees its own price increases put side by side with the general inflation rate. Even as the cost of most goods and services drops, a person taking just one brand-name drug now pays $200 more per year than a year ago," said Rother.

Nelson called the increase "troubling" and is pressing Levinson to fully investigate AARP's findings. "As you know, President Obama reached an agreement with the Pharmaceutical Research and Manufacturers of America, which pledged $80 billion in support of health reform efforts," Nelson wrote in his letter to Levinson. "A significant portion of this support was in the form of rebates to the Medicaid program and discounts offered to seniors in the Medicare Part D coverage gap," he wrote.