By ROGER COLLIER
I’ve been reading a recent paper from the Committee for Economic Development, one of the less doctrinaire business research groups, that should give health care reform advocates (and opponents) food for thought.
“ Health Care in California and National Health Reform,” authored by health care economist Alain Enthoven and CED’s Joseph Minarik, was apparently written during the course of the lengthy debate on reform, with updates inserted after passage of PPACA. With an emphasis on CED’s own earlier proposals for reform rather than the new law, the timing of the paper’s publication was obviously less than perfect, but, even so, the findings are well worth examining.
The paper’s scope is limited to California, clearly not a typical state, given its considerable HMO enrollment and relatively low per capita health care spending, but one with the largest non-federal employer insurance exchange (CalPERS, the state employee benefit system), and the largest delivery system HMO (Kaiser), both of which have made great efforts to make health care more cost-effective. The paper includes reports of interviews with CalPERS administrators and employee benefits managers of major academic and business employers offering a range of health care coverage options to their employees, including a number who have adopted a managed competition model with fixed dollar employer contributions and choice of coverage from among a limited number of competing options.
There’s both good and bad news for health care reformers.Continue reading…