Commentary from Dave DurenbergerMarch 14 , 2008 |
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| NATIONAL HEALTH POLICY | ||||
THIS IS NOT A BILL What's new is that Cuomo has more power than the AMA and he just used it to force health insurance plans to use and disclose quality benchmarks. What's new is that he informs us that the Health Insurance Association of America developed the "This is Not a Bill" which they call Prevailing Healthcare Charges System (PHCS). It was sold to one of its members, United Health Group before HIAA merged into America's Health Insurance Plans, the trade association for health plans of every kind in America. What's not new is "reasonable and customary" or prevailing charges. They have been around since the old non-profit Blues used the term to describe what a community's physicians and hospitals were charging for a wide variety of medical goods and services. In 1965 the phrase was written into the Medicare law as the basis for reimbursement to bring the medical associations on board and assure them the government wasn't going to set prices. Blue intermediaries and carriers kept the "reasonable and customary" claims files and dutifully reported to Medicare. Many Blues then converted to for-profit companies and, along with other local insurance plans, followed the merger and acquisition course to national plans. Each had to find ways to determine what was reasonable and customary and thus the PHCCS. What's not new is that doctors and hospitals who disliked the system learned to live with it. At least until the advent of "out of network providers" and Preferred Provider Organizations (PPO) came into vogue as a way for some providers to avoid the scrutiny that comes with reasonable, customary and efficient health service networks. That was followed by the consumer directed movement with high deductible plans and increased use of "out-of-network" docs. So where are we? Congress decided in 2003 to enhance the market for high deductible indemnity insurance plans with greater tax subsidies for the premiums and the deductible (HSA). They also decided to spend whatever it takes to move the Medicare program out of HHS/CMS and into AHIP members, using Medicare money to provide a special preference for individually-owned fee-for-service indemnity insurance. The money the insurance company cannot make from CMS, they make from restricting access to provider networks with whom they've negotiated prices. This leaves the consumer who wants an out-of-network doc or hospital to pay the bill that UnitedHealth's Ingenix and the PHCS comes up with. The New York Attorney General's office calls this shared insurance data base "garbage in, garbage out" claiming insurers sometimes keep data from high-charge providers out of the data base to lower the reimbursement and raise the amount the consumer must pay. I have no idea where the truth lies. I know the work of Ingenix in other areas has been very good. I know that Richard Anderson believed the same when he was attracted out of the CEO position at NWA to run Ingenix – that is before a stronger force pulled him to run Delta Airlines and work on its acquisition of NWA. I suspect Cuomo will do a deal with the plans and UHG in which the Ingenix PHCS system is conveyed to some independent entity like an academic center. MORE ON NATIONAL HEALTH INSURANCE plans and their popularity. Besides the hearings this week on the disadvantages of Medicare Advantage in both House committees of jurisdiction, a California poll of hospital executives reveals that 91% disapprove of the way UnitedHealth Group does business with them. This compares with Wellpoint's 48% against 20% favorable, Cigna's 47% to 44%, and Aetna in the best shape with 57% approval and 37% disapproval. Wall Street also reacted negatively to earning reports from some of the big plans. Meanwhile, a study by Fidelity Investments showed that a 65 year old couple retiring this year without employer-paid health insurance, faces a total of $225,000 in out of pocket costs during their lives – compared with a 2002 estimate of $160,000. MEDICAL PRODUCTIVITY Small Example: The colonoscopy is an examination of the lower intestine made possible by flexible probe technology. It is administered by a gastroenterologist, a profession which has grown with the technology available to do routine diagnostic colonoscopy as well as polyp or other surgery. Most clinical systems believe that internists and/or ancillary health professionals can be trained to do the diagnostic colonoscopy, but the American Gastroenterological Association has successfully lobbied "safety" issues to prevent that from happening. They recently forced Aetna to back down from its plan to stop paying for the use of PROPOFOL, a powerful anesthetic which provides quick and reliable patient sedation, but must be administered by an anesthesiologist at an extra cost of $300 to $1,000. I am not covering the issue of how often and how extensive the diagnosis need be, and the AGA argument that people won't get needed diagnosis unless they can be assured it's a no pain/no discomfort/no time deal. I haven't researched how many diagnostic colonoscopies are performed every year. But you get the idea. I hope. You know what comes next? Athicon Endo-Surgery at J and J is seeking approval for a computer assisted sedation device to eliminate the anesthesiologist and MGI Pharma wants approval for Aquavan, a PROPOFOL variant which nurses can administer. Just like they can be trained to do the whole procedure!!! QUALITY AND EFFICIENCY LEADER JOSEPH JURAN died March 1st. Born Christmas Eve of 1904 in Romania, Juran came to Minneapolis in 1912, graduated high school at 16, and became the University of Minnesota chess champion before graduating with a degree in electrical engineering. In 1951 his book "Quality Control Handbook" marked him as the master of this new industrial science. Along with Edmund Deming he made the most important and lasting contribution to the rebuilding of Japan. The work of "quality circles" of lean manufacturing and the theory of six sigma perfection were all attributable to Juran. In 1979 he started the Juran Institute as his consulting firm and the Juran Foundation which, in 1998, merged with the Carlson School of Management at his alma mater UMN. Today Jim Buckman runs this quality control center as the Juran Center for Leadership in Quality. Those of us who have come to know both the Japanese and American medical systems assume neither Deming nor Juran were ever hospitalized in either country because there is so little evidence that what every other industry has learned has been transferred to hospital systems. The U.S. spends twice as much per capita as Japan on medical services and it shows in our inefficiencies and the Japanese generally poor performance. I know U.S. hospital leaders go to Japan to learn "Toyota lean" processes, but no one in Japan, except patients at Toyota's Hospital, know that the industrial processes which made Toyota the no. 1 auto producer in the world are nowhere applied in medicine. JOHN SYMANITZ DIES AT 103 A past President of every health underwriter or insurance association, he seized on every such opportunity to ask me, his Senator, to speak. I would always say, "What do they want me to speak about?" and John would say, "They want you tell them they will make more money. But you just tell them what they need to hear." John was widowed twice and took his now widow Estelle out for the first time on Valentine's Day in 1987. They married shortly, but only after he promised her "20 good years." She ended up with 21 and is a really happy person for each of them. MORE ON MINNESOTA RETAIL HEALTH CLINICS HOOSIER HEALTHWISE is Indiana's Medicaid program and has the lowest income eligibility standards for non-disabled adults in the country. Starting January 1, Indianans aged 19 to 64 who earn less than 200% of the federal poverty level and who have been uninsured for 6 months, are eligible for The Healthy Indiana Plan (HIP) powered by POWER – a Personal Wellness Responsibility Account valued at $1,100 per person per year. Contributions come from participants at 5% of gross family income ($0-$85 for individual and $0 to $105 for family of 4); up to 50% from employer withholding; and the balance from a state trust fund created with $129 million in new state cigarette taxes. Preventive benefits are free up to $500 and medical cost reimbursement kicks in at $1,101. The HIP is part of a larger and comprehensive state plan to improve access, costs and benefits which qualifies for federal matching funds thanks to a waiver. Also included is a tax credit for qualified employer wellness programs and for small employer Section 125 plans. DOING IT THE OLD FASHIONED WAY can have its problems even among labor unions. Andy Stern has been enormously successful in building the strength of the SEIU since taking over as President of the International in 1996. He capped that success by walking out of the AFL-CIO in 2005 with six other large unions charting an independent course to restore their national political power. Stern does it, critics and admirers say, by centralizing power, appointing his friends for key positions, and demanding loyalty from locals and state affiliates. He also does it by making friends from some natural adversaries around common interest political or policy issues, as in health care reform. I've found that he and his aides rarely miss a beat, leave a base uncovered, or seize an opportunity. They are always available, always interested in finding common ground, but tough as nails as negotiators. SEIU has had a great deal of success in lower-compensated health profession and semi-professionals and makes a lot of hospital c-suiters madder than hades. But, even at Catholic Health Association members, a unique target for union campaigns, they've earned grudging respect and some change of approach/policy. Then along came the California Nurses Association to do battle in Ohio against the SEIU and its efforts to organize 8,300 employees at nine Catholic Healthcare Partners hospitals. So tough are the California Nurses they forced the SEIU to back off a planned certification election and now the battle is engaged. The hospital system had to get restraining orders to keep the nurses from invading restricted areas of Ohio hospitals. Wow, this must remind some of those Ohio patients of the good old days of John L. Lewis and the United Mine Workers. This growth of unionization among healthcare employees is a phenomenon to be watched closely, especially by those concerned about the need for greater productivity and efficiency and lower costs in healthcare services. MY HOME MAY BE MY CASTLE, but my car is not my armor-plated humvee. Nor is anyone else's. Most health reformers have turned to health maintenance and accident prevention as inexpensive – and socially responsible – ways and means to reduce health care costs. Right. So let's get started. My productivity-guru friend Tor Dahl tells the story of a Norwegian named Kjell Uleberg who, on September 27, 2006, was arrested for drunk driving with a blood alcohol level of 0.7 which is legal in the U.S. He spent 30 days incarcerated, paid a $77,692 fine, and lost his driver's license for three years. 40% of U.S. highway fatalities are alcohol or drug related. If we had the same driving under the influence penalties as Norway, we would save 27,180 lives and multi-millions of dollars each year. Americans claim to have the right to health care and the right to resist the imposition of serious penalties for high risk behavior. We cannot have it both ways. CONSUMER DRIVEN HEALTH CARE
WHAT WE CAN DO ABOUT THE HEALTH CARE CRISIS |
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| POLITICS | ||||
WHAT AN ELECTION YEAR THIS IS THE FUTURE OF THE DEMOCRATIC PARTY is being shaped right before our eyes this winter and spring and it is a sight to behold. My friend John McCain, who cinched the GOP nomination last week, is a placeholder for what it means to be a 21st Century Republican. The 1995-2006 Republicans blew the chance to do it, just like President Bill Clinton blew it for national Democrats in the last eight years of the 20th century. When John Kerry asked McCain to run with him for vice president, and when McCain asks Joe Lieberman, as I predict he would love to, you know change is in the air. When Chris Dodd and Connecticut Democrats dump all over Joe as they did in his 2006 primary, and then Dodd endorses Barack Obama for President, you know change is in the air.
REPUBLICAN PRESIDENTIAL STRATEGY WHY THE HEAVY PRIMARY ELECTION TURNOUT Only a few of our representatives have suggested that the real villains (or distinguished officials) in this recession are corporate directors who design and approve these deals while running or governing other corporations which enrich them, spouses, and families. IT'S THE CAMPAIGNS, STUPID CONGRESS DEBATES FEDERAL BUDGET That's because the Democratic efforts to preserve and enhance entitlement programs, especially Medicare and Medicaid, are in irresolvable conflict with Republican commitments to reduce taxes. Complicating this year's effort is the Bush Wars and the executive's commitment to long term increases in spending on national security. Add to that the economic uncertainties we face as a nation making 5 and 10 year projections well nigh impossible and you have a classic exercise in fiscal futility. You and I are focusing on next year and beyond. Why would anyone want to be president? We are likely to get some idea about the answer to that. For the first time in many memories we have three members of the U.S. Senate fighting to take on the problems they couldn't find ways to resolve in the Congress. LARRY CRAIG, DON'T QUIT YET SENATOR TIM JOHNSON OF SOUTH DAKOTA |
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| NATIONAL NEWS | ||||
SENATOR HOWARD M. METZENBAUM (D-OH) TIGHTEN YOUR BELT WIND AND WHEAT And out in those wheat, soybean and corn fields across the road feeding the ethanol plants, are the wind farms – a multi-billion dollar industry growing right out of the grain fields and showering us with unbelievable prosperity. No one believes it is all going to last, but it does mean something about the flat world, the need for energy and environmental policies, and the need to eliminate tariffs and subsidies to make that flat world fairer to rich and poor alike. HOUSING POLICY In fact the higher income "savers" with the higher-income homes and the faster appreciation receive much larger tax subsidies than the rest of us in the form of real estate tax and mortgage interest deductions from our income tax liability. And, for the growing number of Americans priced out of home ownership by this inflationary policy, we have created federal income-related home ownership subsidies which used to be really good where much of the "subsidy benefit" went to the builder. So, a question raised by the way in which housing finance policy has driven down the value of homes in the last 6 to 9 months, is whether it is still necessary in a country like ours to subsidize home ownership the way we do. And whether it is still good policy to subsidize home ownership when we don't subsidize renters – many of whom are inner-urban dwellers, younger, older and fixed income or poorer. |
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| INTERNATIONAL NEWS | ||||
HOPE FOR AFRICA A few weeks ago at the University of St. Thomas, we hosted a new leader of the Congo who served as Vice President of the DRC from 2002-06. Azarias Ruberwa wasn't born when Larry Devlin ran Congolese politics. He is a 43 year old lawyer who ran for President in the first constitutional election for President in the DRC, and lost to Laurent Kabila's son, Joseph Kabila, who has been President since his father died. Ruberwa leads a national political party, runs an orphanage with his wife Chantal, and has organized the DR Congo National Prayer Breakfast for the last several years.
THE DEMOCRATIC REPUBLIC OF THE CONGO is a paradox. Life expectancy is low and poverty high. Literacy is low and contagious diseases high. Understanding of good governance is low and candidates for governance high. National revenue is low and national debt is high. On the other hand, the DRC has the largest reserves of precious minerals (like diamonds, gold, cobalt and copper), generous reserves of gas and oil in both east and west, and an over-abundance of hydro-power. It has no deserts but rich agricultural land and three harvest seasons a year. It has the second longest river in the world and the second largest forest (it produces 17% of the earth's supply of oxygen free to the rest of us carbon-producers). Lake Tanganyika rivals the world's "great lakes". The current national budget of DRC is $3 billion and 25% of the revenue comes from outside the country. Sub-national governments are cutting deals with foreign powers to sell off mineral reserves without any understanding of the value of what is being sold and with almost none of the revenue going to the 60 million people of DRC. China, specifically, is trading infrastructure construction - especially badly needed highways - for controlling interests in mining companies and mineral-bearing lands. While the World Bank, the International Monetary Fund (IMF) and other nations lend money to DRC with conditions such as reduce debt, reduce human rights abuse, reduce corruption, slow down HIV AIDS (1/3 for abstinence e.g) the Chinese have no such controls on their loans and so the governments prefer doing business with China and there goes accountability. The rule of law does not exist in the country even though courts do and thus laws of private property, intellectual property, contracts, anti-trust and the like are unenforceable. KENYA AND ZIMBABWE Robert Mugabe is another "president for life" figure in Zimbabwe who is being challenged by a strong member of his own Zimbabwe African National Union – Patriotic Front (ZANU-PF) party for election as President. Simba Makowi is widely respected and Mugabe is pulling out every trick to beat him and the Movement for Democratic Change (MDC) Party's respectable Mongan Tsuangini. And Cameroon is another country in which a 25-year presidency should be coming to an end, but for the stubbornness of President Paul Biya who insists on changing the 12-year old Constitution to allow himself a third seven-year term as President. "WE BROKE IT AND WE NEED TO FIX IT" The problem is we just aren't equipped to do it. NEVER ADMIT YOU ARE WRONG Does it bother you as it does me to know that more than a million Chaldean Christians have been forced to leave Iraq since the war started and that the outspoken Catholic Archbishop Paulos Faraj Rahlo, who refused to leave, was found murdered in Mosul this week? 100 YEARS IN IRAQ This is more than a McCain policy. It certainly accounts for the derisive comments President Bush made about Barack Obama's suggestion he would consider speaking with current Presidents of Cuba and Iran if necessary. Said Bush: "The decisions of the U.S. President to have discussions with certain international figures can be extremely counterproductive. It can send chilling signals and messages to our allies. It can send confusion about our foreign policy. It discourages reformers inside their own country. And, in my judgment, it would be a mistake." Tell that to Ronald Reagan who went out of his way, and around similar advice, to tell Gorbachev and his predecessors why and on what terms he could expect to restore relations. SUCCESS IN WAR NESTLE will invest $19.6 million in a Swiss chocolate research center to meet the growing demand for premium and luxury confections. |
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