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HEALTH PLANS: From the AHIP fields (Ignagni loves Shalala and vice versa–Newt’s just watching!)

AHIP’s annual conference last week, and Karen Ignagni was recently spotted in USA Today slagging off Michael Moore as part of that newspaper’s “fair and balanced” look at the topic, and telling yet more lies about “Canadians coming to the US for health care.” Apparently her research team doesn’t subscribe to Health Affairs. I meanwhile was at Meditech having way more fun (more about that anon). But an anonymous THCB reader did indeed make it to Vegas. And considering AHIP’s somewhat risky current political tactics, I’d think Vegas was an appropriate place for them to have the show! Here’s his report:

The AHIP (America’s Health Insurance Plans) conference was everything that you would expect from a group of health insurance executives and the people who want to sell them stuff. Held at the posh Wynn resort in Las Vegas, it brought together the who’s who in health insurance, although fewer CEO-level folks than the World Health Care Congress. Unlike HIMSS, which is both much larger and pushing to include payers, purchasers and health information exchanges, AHIP doesn’t seem to be pushing such democratization. This is the business of health insurance.

Of course the triple 800-pound-gorillas in the room were the release of Michael Moore’s “Sicko,” the public awareness that CDHP wasn’t panning out to be the panacea that it was positioned to be, and the Democratic takeover of Congress.

Karen Ignagni, AHIP’s fearless leader, opened the conference with a less than rousing invitation for the assembled attendees to pat themselves on the back for all of the good work that they are doing to improve healthcare…and to consider themselves among “the patriots” on July 4. Maybe it was the early hour, but I believe that I counted exactly twelve people clapping.

Ignagni introduced her “close personal friend” former Secretary of Health and Human Services Donna Shalala (under President Clinton) and current president of University of Miami. I think that Shalala was chosen as a way of demonstrating that AHIP has connections with Democrats as well as Republicans. Shalala told the audience to support AHIP because Ignagni is among the most connected people in Washington on health issues…and – again to a smattering of applause – echoed the sentiment that those in the audience were somehow “patriots” in the cause of improving healthcare. Shalala continued about her co-chairmanship (with Senator Bob Dole) of the commission looking into the mistreatment of troops at Walter Reed. It’s a very difficult problem because there are very few experts on the military health system. But, she told us, that it was an example of a single payer, government run system…and look, look…at all of the problems, especially in transitions of care (that I’m sure have nothing to do with the rivalries that exist between military branches and are all about the MHS being “single payer” and government run). She went on to speak about how unlikely it was that there would be transformational change anytime soon because while there is widespread agreement that healthcare needs reform that there is not widespread agreement on how to fix it. We could expect incrementalism or worse, and that she (and the Clintons) had mis-read the public’s desire for change in 1993. (Ed’s note: It appears that the time and options Shalala has acquired on the United HealthGroup board have softened her liberal credentials somewhat!)

Next up was Newt Gingrich, who began by recommending Nicholas Sarcozy’s new book and focused on the new French President’s admission that the French people need to “work harder”. He said that he might run for President but was waiting for the current group of those “interviewing” for the position to narrow a bit. He declared the Medicare drug benefit and the sign-up process a success because of the power of consumer choice. Using a metaphor he dubbed “Medi-Cruise” for government run or single payer healthcare, he likened the ability of senior citizens to navigate the complexities of choosing vacation cruises with their abilities to choose optimal drug benefits. Seniors – according to Newt – did a much better job of choosing a benefit than if the government had chosen a one-size-fits-all benefit: Just imagine if the government chose your cruise for you – “Medi-Cruise”…and if everyone was forced to have the same-type room! As if a cruise – paid for on a voluntary basis by people themselves and health benefits – necessary and paid for by the government – are the same thing. Gingrich – on a positive note – said that the National Health Information Network (including digitization of individual providers) should be viewed on the same importance and scale as the national highway projects under Eisenhower. He rationalized this huge government project because it was for national security. He also focused on ferreting out fraud and abuse instead of making wholesale rate cuts. Ultimately, Gingrich is among those who believe that transparency of cost and quality information and consumer incentives will make healthcare a functioning market. He expects consumers to lead transformative changes in healthcare. There was no mention of the recent CDHP story in the WSJ.

Possibly fearing disruption or protest, Q&A at both sessions was short, seemed tense, and required clear identification by name and affiliation…not unreasonable…I had the feeling that any overtly accusatory questioner would be cut off, ushered out, and pilloried by the crowd. Ignagni seemed loaded for bear.

 

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HEALTH2.0/PHARMA:Drug Companies & Social Media

The ever wonderful Jane Sarasohn Kahn has a great article up at IHealthbeat on the use of Social Media and Health2.0 by drug companies. Her conclusion is that Drug Companies Lag in Adopting Social Media To Communicate With Consumers but that there’s great opportunity to go after compliance and adherence via social media. These BTW are good things for drug companies and patients. Read her article.

And if you can’t get enough JSK (and who can?) Jane will be moderating the kick-off panel with the likes of Google, Yahoo, WebMD and Microsoft explaining their take on Health2.0 at the conference of the same name on September 20th. But she’ll also be talking about social media (along with another "veteran" of that world Joyce Flory) at Dimtriy’s Blogging & Social Networking track in the Marketing to the Health Care Consumer Summit in Chicago earlier that same week.

TECH: Why physicians don’t want email from patients

Headline: Patient-Doctor E-mail Could Cut Income for Physician Practices. Kaiser Permanente Northwest’s Clinical Systems Planning and Consulting group did a study on its patient-physician email use in its NorthWest region and found that it worked as it was supposed to. Visits down 7-10%. Phone calls down 15%.

This is of course great news. Productivity goes up, patients are happier and their care is probably better. Of course in the bizzaro world of health care that we live in, this would translate into a 7–10% decline in primary care physicians’ incomes. Which is why RelayHealth et al raise suspicion of their potential customers, and why we have to get them off the fee-for-service treadmill ASAP.

POLICY/HEALTH PLAN: Karen Ignagni lie of the day

AHIP’s response to Sicko. Lined up in “cut to” style with answers but no questions so that it can be dropped into local news (check out the weird “B-roll” at the end). And again some of what she says is reasonable, if not a real reflection of what most of her members have been doing for the last 7 years.

But always the lie, always. She just can’t help it!  Go to minute 1.00 of the video. Note what she says about Canada. And then take a look at the data.

POLICY: Jonathan Weiner, pulling no punches on what’s wrong

Jonathan Weiner, Professor of Health Policy and Management at Johns Hopkins, tells it like it is in a great interview at Managed Care magazine. It’s so good I’ve extracted several real zingers. I particularly love the last one about “getting the government out of the way of the market.” Here’s a selection:

“Other developed countries have come to two realizations that we have not come to. One is that it is immoral — or at best, amoral — not to provide health care to everybody if we believe that basic health care is a sign of a developed country.”

“The second realization is that other countries acknowledge that the collective — social insurance programs like the sickness funds of Germany, government agencies, or third parties that look very much like our insurance or managed care companies — cannot provide everything for everybody.”

“When managed care plans, working mainly as agents for employers and government, tried to make some necessary changes and do the right thing, nobody would let them. We shot the messenger. We’re lousy at doing what’s necessary in our health care system. Tightly controlled managed care as envisioned in the ’90’s in the Clinton reform plan is not managed care today. I’m a big supporter of good forward-thinking managed care on the part of executives and clinicians, and I definitely support the appropriate role of the market and consumerism. But we can’t lose sight of population-based care and public policy issues that don’t come naturally to managed care organizations facing pressure every quarter to make a profit and keep investors happy.”

“Within a generation or two, we’ll see the positive side of health information technology. Health care will actually get more humane, with more human interaction and more communication, because the technical side of what doctors do now will be handled by the electronic box. Things like figuring out what tests should be ordered, what drugs should be used, looking at an EKG and comparing it to the evidence will all be done better by electronic systems, using algorithms developed by doctors at places like Cleveland Clinic and Johns Hopkins. Doctors will need to be communicators, facilitators, coordinators, and coaches. I believe that model will favor women doctors, because they happen to be better at those skills.”

“Every advanced HIT system I’ve studied — the British, Hong Kong, Kaiser Permanente, and Geisinger Health System in the U.S. — has a centralized rational entity that looks at the big picture and sees itself as being in this for the long haul.”

“Our health care system is the most expensive in the world by a factor of two, and the most inefficient probably by a factor of three. Yes, we pay our doctors and administrators more and patients who get care get a lot more, but a lot of the cost difference is due to waste. We need clinical research of the type funded by NIH, and we need more operational population-based research. The Agency for Health Care Research and Quality is terribly underfunded now, and once genomics come more fully on line, research into cost effectiveness will become even more important”

“I serve on the Medicare Coverage Advisory Committee, an academic group, and I can tell you that Medicare has nowhere close to the authority it needs. There’s a lot of good people at CMS trying to do a good job, but their hands are tied by legislation. In most cases, they are not allowed to look at cost-benefit issues.”

“Q: Who’s persuading Congress to maintain the status quo? WEINER: Device manufacturers, pharmaceutical companies, everybody and their mother. God bless Big Pharma for keeping the new technology coming out. We may all need it one day, but it doesn’t all work equally well, and it certainly isn’t all cost effective. We cannot as a society pay for everything for everybody. That is absolutely impossible and totally unethical as long as we have 18,000 people a year dying — the equivalent of fifty 747’s going down — because they lack health insurance. My tone and tune will change once we have basic health care for all. We are a rich country and we absolutely can afford it, as long as we operate within a budget.”

“When a young doctor or medical school dean tells me that in this country the market does what the market should do, and government should keep out of it, I tell them that’s fine, as long as they’re willing to return the million and a half dollars in federal and state subsidies for each doctor trained. A plastic surgeon practicing in the fanciest suburb in any city gets more of a subsidy than the family doctor practicing in an inner city or rural area, and that’s not right. Moreover, the plastic surgeon can make a half million dollars a year, while the inner city doctor is making a hundred thousand.”

POLICY: Beating up on the loony right once Moore

So there’s a movie called Sicko out and it has the right really riled up. Why? Because Michael Moore has adopted their tactics of using somewhat out of date anecdotes without any real data. At the least he’s made a teeny TV celebrity of Stuart Browning who’s now been on shouting matches on cable twice according to emails he’s sent me. And then into my email box the other day plopped this review at the American Thinker from someone called Peter Chowka, who apparently doesn’t like socialism and the bunch of know nothing, greedy Americans who are apparently ready to abandon the paragon of market efficiency that is our health system, because they think that some other approach might just cover a few more people at a lower cost—I mean just because all those foreigners do it how dare anyone think that we Americans might? Here’s some of Chowka’s rant:

From start to end, SiCKO, the latest "documentary" from notorious writer and filmmaker Michael Moore, is a stunning example of the Big Lie. Almost shockingly devoid of fact and context, it’s instead based on highly selective, emotionally-driven, and deeply flawed anecdotes, strung together by writer-director-producer Moore’s trademark folksy, soft-spoken, whimsical personal narrative. SiCKO (the unusual capitalization is Moore’s conceit) is not a documentary at all, but a naked propaganda exercise on behalf of full-bore socialism. A better title for it would be Pinko.

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TECH: Google trying to use Sicko to sell keyword advertising

Does negative press make health care companies Sicko? The solution is to buy a Google adword…Yup, that’s the headline of a come-on post on the Google Health Advertising Blog!

Wonder if the “health advertising team” at Google isn’t trying a little too hard given that the folks working on the separate health project at Google have also been more than a little negative on the current state of the health care system (to say the least!). Mind you this approach did work (for Google at least) in the middle of the KP HealthConnect Justen Deal drama, when the KP PR team bought the words “Justen Deal” and put up an a Google adword explaining their side of the story.

Much more over at ZDNet. More from me on Sicko tomorrow, and no I still haven’t seen it yet!

POLICY: A roadmap for reform by Maggie Mahar

Maggie Mahar is an award winning journalist and author. A frequent contributor to THCB, her work has appeared in the New York Times, Barron’s and Institutional Investor. She is the author of Money-Driven medicine: The Real Reason Why healthcare costs so much, an examination of the economic forces driving the healthcare system.

In its June
2007 report to Congress
, MedPac (the
Medicare Payment Advisory Commission) highlighted one of the dirty secrets
of our healthcare system:  as a nation, we are currently spending billions
on drugs, devices, surgical procedures and diagnostic tests without
having a clue as to whether they are effective. The reason, MedPac explained:
we have very little “comparative-effectiveness research” that provides
head-to-head comparisons of various treatments for a particular malady.

Meanwhile,
the Medicare commission observes, “Many new services disseminate quickly
into routine medical care without providers knowing whether they outperform
existing treatments, and to what extent. For example, a recent study
showed that inexpensive diuretics may control hypertension as effectively
as expensive calcium-channel blockers (ALLHAT 2002).”

One might think
that the FDA would require that a manufacturer show that its new drug
or device is better than existing treatments—at least for some patients. 
After all, new medical technologies are almost always more expensive,
so wouldn’t you think they would have to be “improved” in order
to be “approved”?

Think again.
That’s not the FDA’s job. The FDA exists simply to decide whether
the benefits of a particular treatment outweigh its risks. Thus, in
order to pass FDA scrutiny
manufacturers need only test their product against a placebo—which,
as MedPac notes, is what most do. In other words, they demonstrate their
treatment is “better than nothing.”

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