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Yet another reason to abolish the Senate

Ezra Klein, feeling a little soft, interviews Kent Conrad—he of the co-op feed stores for health care idea.

My take on the interview is that I seriously believe Conrad's entire knowledge of health care comes from his time being lectured on the vagaries of Medicare reimbursement by a local rural hospital lobbyist, his one visit to a co-op seed store where he found the farmers chatting happily, and his reading the cliff notes (prepared by his staff) of TR Reid's good but not too sophisticated book focusing on the Beveridge v Bismarck distinction—which is high school civics lesson stuff.

Yet he gets to meet 61 times with the Gang of six that was really going to get it all right before time ran out, and he gets to make policy!

And you wonder why the Senate should be abolished.

What would actually work? Driving down the cost of health care

If competition actually drives the cost of health care up rather than down, what would bring lower costs?

What provisions in a “health reform act” would actually drop costs in health care? Let’s leave aside for the moment all the myriad other arguments – some might be seen as too much government intrusion, some would destroy the health plan industry, some would be cripplingly difficult for providers, and so on – and just focus on cost. Given the real structure of health care markets in the United States at this moment, what could be written into federal law and regulation that would actually reduce cost?me of these changes are massive, some would be invisible to those outside the industry, but all could be legislated or regulated, and all would “bend the curve” toward lower costs. Choose any you like, though some are “and” choices, others are “or” choices:

  1. Single payer: Eliminates insurance company overhead, increases medical loss ratio (the percentage of dollars put in returned as medical resources) to perhaps 95%, and gives the government (probably some rate-setting commission) the power to dictate prices and availability, like Medicare on steroids.
  2. “Robust” public option: All providers must take its payments as full payment, rates tied to Medicare rates (perhaps plus a percentage), Medicare rates decided by an independent rate-setting commission.
  3. Limiting medical loss ratios: Many European countries dictate that health plans must return 85% or 90% or 92.5% of the premium paid in as medical services paid out.  U.S. health plans, in contrast, compete on (and brag to Wall Street analysts about) how low their medical loss ratio is. Some are as low as 60%.

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Interview: John White, Director IT, AHRQ

Last week I got to spend some quality time in Washington DC including moderating a panel looking at new research behind physician-patient communication at the annual AHRQ conference. AHRQ will play a significant role in comparative effectiveness research, as it basically is channeling the $1 billion or so in the stimulus package for that. But AHRQ is also pretty active in trying to figure out what works and what doesn’t in health care IT, and has an online resource center about that too.

The man running AHRQ’s initiatives in IT is John White, who’s affable, amusing and has an interesting point of view or two. So to let you know a little more about the mysteries of government, here’s my interview with John.

Regina Holliday: Fred’s life & death at 73 cents a page

If you ever wonder why the efforts to make it easier for patients and families to get information and be treated as equals in their care by the medical care system matter….

If you need convincing that the concept of participatory medicine is important enough for its own society, advocates & journal….

If you wonder whether it’s OK to wait to phase in the possibility of patients actually having rights to their own data….

Read Regina Holliday’s story about Fred’s illness and the way she and he were treated.

Commentology: Obama and End-of-Life Care

THCB reader Molly Holmes wrote us to say:

As a member of a hospital geriatric emergency team, I’m on the front lines of a major health care issue that need immediate attention. The costs of keeping a person barely alive during their last few weeks of life easily run into the millions. The procedures undertaken at such times are painful and poorly thought out, and do not at all increase the quality of one’s life. The unfortunate senior who falls into the end-of-life emergency medical cycle can expect his or her final days to be miserable and lonely, with family relegated to the sidelines, while medical people rush around administering “care.” Such a person is robbed of dignity, and robbed of the right to die with loved ones nearby.

The reason why medical teams are pressured to perform endless procedures on our most ill seniors is because the legal and ethical issues at stake are in limbo. That’s because the questions raised are not just for individuals to answer, but for society as well. They are questions for a nation.

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A Remedy for Healthcare Organizations

The switch to electronic health records can be a daunting task. To make the shift less painful, healthcare organizations should first consider taking control the number of documents flowing through the organization – and the costs associated with printing, sharing and updating them. Developing proactive ways to better manage both hard copy and electronic documents will better equip these organizations for the 2014 EHR deadline.

A recent survey of healthcare professionals found that nearly half (46 percent) of respondents chose document and records management as the most inefficient area within healthcare organizations.1 In fact, the survey revealed that document inefficiencies trump traffic woes – 58 percent said that searching for information at work is worse than being stuck in traffic.

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Aneesh Chopra, Federal CTO, talks Health 2.0

Aneesh Chopra is the new and first CTO of the Federal Government, and he’s also going to be the keynote speaker for the Health 2.0 Conference (Oct 6-7,register here!). I caught up with him for a quick interview yesterday where he discussed his role, Health 2.0 and the new apps.gov site. Off camera we had a great chat and Aneesh both forced me to give a brain dump on exciting companies in Health 2.0 and showed that he knows plenty about the space and has really big ambitions. I can’t say more yet, but let’s say he’s very interested in using new sources of data to improve decisions. I think that it’s great that someone so committed to making technology work for people (and not vice versa) is in such a strong position to influence Federal policy. Here’s the interview

“Reform” Means Higher Costs, Not Lower

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A reader asks: “If the current bill passes are my health insurance costs likely to go up, down, or remain about the same?”

If the form that I believe most likely to pass actually passes (insurance reforms, individual mandate, weak or no public option or co-ops), I believe that they will continue to go up. There simply is nothing in the bill that would make things more affordable. In health care markets, for a convoluted nest of reasons, more competition causes prices to go up, not down.

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Health Care Outlook Not Improving

 Sen. Max Baucus (D-Mon) released his much-anticipated healthcare proposal Wednesday morning.

Sen. Max Baucus (D-Mon) released his much-anticipated healthcare proposal Wednesday morning.

The next big test for a health care bill in 2009 (notice that I did not call it health care reform) will come in Senate Finance.

The
final vote in that committee will tell us a lot about whether the
Democrats have any chance for 60 votes in the full Senate. So far, it
does not look good.I have the greatest respect for Senators
Baucus and Grassley and their good faith efforts to find a bipartisan
health care solution. But I also think their efforts were fatally
flawed from the beginning.I think the problem is that Baucus
and Grassley were trying to bridge the wide chasm between liberal and
conservative ideas. Finding the fine balance necessary has created an
unwieldy compromise—no one is happy. Most striking, the compromise
reached between cost and premium subsidies has yielded an $880 billion
bill that requires middle class people to buy health insurance they will in no way will be able to afford. On top of that, the policies have big deductibles and out-of-pocket costs.

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