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Cost-containment missing piece of Mass. health reform

Niko Karvounis tracks the health care system for the Century Foundation. This post first appeared on the HealthBeat blog, one of our favorite health care reads.

The Massachusetts experiment in health care reform is all about expanding access.  But it doesn’t try to control costs. This, in a nutshell, is why it’s running into trouble.

The plan didn’t reform health care delivery, just coverage. Granted, in terms of bringing more people in under the tent, it’s been a success: Since the plan went into effect in 2006, 439,000 people have signed up for insurance — a number that represents more than two-thirds of the estimated 600,000 people uninsured in the state two years ago. This surge in coverage has reduced use of emergency rooms for routine care by 37 percent, which has saved the state about $68 million. (Going to the ER for routine care drives up health care costs by creating longer wait times and tying up resources that can be used to help patients who are critically ill).

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Health Reform Prospects Fade as Presidential Campaign Enters Homestretch


Jeff Goldsmith is President of Health Futures, Inc, and a professor of public  health sciences at the University of Virginia.

As presidential aspirants geared up their issue analyses last fall, health reform ranked as the number one domestic policy item the next President should address in many national public opinion polls. As the campaign season draws to a close, however, health reform has virtually disappeared from the headlines, supplanted by concern about gas prices, home mortgage foreclosures, soaring food costs and, most recently, the "Soviet" invasion of Georgia. Though you will hear campaign rhetoric  from both parties at their upcoming conventions, health reform has been demoted to the second tier of campaign issues. Their platforms and campaign pledges on health reform seem increasingly unlikely to decide who is the next president of the United States.

As previously argued in this space, "health reform" really meant doing something about "health costs for my family" to most voters, not reducing inequity in access to coverage. Ninety-three percent of the voting public has health insurance of some kind. It is clear now that  voter concern last fall about health reform was really a leading indicator of anxiety about the deteriorating economy and their own household economic insecurity. As Brian Klepper pointed out a few months ago in THCB, the purchasing power in real dollars of the American paycheck moved into negative territory last September, thanks to the rising price of energy, food and the resetting of home mortgages to higher rates. All these problems have worsened materially in the ensuing year

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Two Blues, two different Health 2.0 approaches

Two of the better behaved and more innovative health plans (both non-profit regional Blues) have been taking different approaches to Health 2.0, user-generated content, communities and all that. BCBS Minnesota created a separate company called Consumer Aware which created HealthCare Facts, and the Healthcare Scoop. Now the Healthcare Scoop is going national. (You can hear more about that in the podcast I did with CEO MaryAnn Stump last year).

Meanwhile, in the Pacific Northwest Regence has been beavering away creating its own communities within its core web site — and has been making a pretty job of it, too. They’re theoretically for members only, but you can get a guest pass. And there’s a good deal of activity there. Which kind of answers the question, should health plans get involved in Health 2.0?  These early adopters say, yes.

And, of course, I’d be remiss in my crass marketing duty if I didn’t tell you that Mary Ann Stump and Regence’s Joe Gifford will both be at the Health 2.0 Conference in October.

Cisco’s Frances Dare talks about Congressional action on health IT

Frances Dare is someone I’ve know for a long time in the health care IT world (sorry, Frances!). That means that she’s seen the painfully slow developments in many aspects of health IT since the 1990s, and has an experienced view of what’s coming along at what pace. These days Frances is a Director at Cisco focusing on health care, and more recently she’s taken an active role in Cisco’s health care lobbying efforts on Capitol Hill.

Given that we don’t spend much time on THCB talking about the impact of the Federal sausage-making process on health care IT, telemedicine, et al, I thought that getting the view of a major IT vendor about what they expect to come out of the current Congress would be pretty interesting. And it was. Here’s the Interview.

BTW, in the interview I get the name of Frances’ division at Cisco wrong, Frances is a Director in the ISBG which stands for Internet Business Solutions Group. (FD, I have done consulting work for Cisco in the past, even if I didn’t know the name of the group I was working for!).

Comparing Biden’s health reform plan to Obama’s

It’s the time in the political season to make way too much of the impact a vice president can have on the presidential contest.

So I hope you don’t mind if I extend that amusing parlor sport into the arena of health care reform and consider how how Joe Biden’s original proposal for health care reform compares to Barack Obama’s.

If nothing else, it’s a good way to parse a few of the issues likely to be magnified when Obama and McCain yammer back and forth about their health care plans in the coming weeks.

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In Online Health Content We Trust?

Late last week, Susannah Fox of the Pew Internet & American Life project announced
that the nonprofit had updated its statistics on the number of adult Americans using the Internet. Currently, 73 percent are Web users.  Of this group, three-quarters have looked for health or medical information online. Fox notes that regardless of whether the number of online health searchers increases or decreases from year to year, “Internet users are doing something [and] the horse is out of the barn.”  The growing power of the Internet has generated enthusiasm in some and dismay in others. It has also exacerbated long-standing tensions between patients and medical professionals –- especially physicians. For example, in a famous Time magazine essay, Dr. Scott Haig admonished some medical “Googlers” for possessing a wealth of information, but lacking the expertise to interpret it correctly.   

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Hello Health open for business

Hello Health, the clinic that Jay Parkinson has been promoting for a while, is open for business. If all the patients are as happy as the first patient, success is assured!

The deal is that they’ve gone with mid-range concierge fee ($35 a month—around the cost of a low cost cell phone plan or high-end Netflix?) for patients to get access/membership and then have fixed charges thereafter. That amount is about three times what I pay for very basic low-end concierge services (basically email) at Tom Lee’s Metropolitan Medical Group in San Francisco, but way less than the typical $150–200 a month fee for high-end concierge practices.Hellohealth

What remains to me the tricky factor in their vision is how they’ll make this work with the bureaucracy & accounting behind high deductible plans (without taking on a ton of staff). But however that piece works out, someone needs to shake up primary care. Jay and his 2 colleagues are young entrepreneurial docs giving it a shake.

Health 2.0 had a film crew there with David Kibbe acting as roving reporter at the launch party. Much more on both these topics to come, but remember that Hello Health is also working with MyCa on a very interesting new interface to the EMR and much more.

Yes, you’ll see much more about the Health 2.0 Across America video starring David Kibbe and the MyCa interface at the Health 2.0 Conference.

A few socialist musings for Monday

I just watched the closing ceremony of the Olympics, and the word is that state sponsorship of little known or cared about sports like swimming, gymnastics and cycling gets more medals and so should be encouraged. Bob Costas told me that China spent $40 billion on the games, even if London is going to spend less than half that. So it got me thinking about socialism.

Kevin Pho, blogger of KevinMD fame, and usually reliably anti-government in his views, asks for more socialism, at least directed in the direction of him and his fellow MDs. In this USA Today op-ed he suggests rightly that cutting doctors fees in itself saves little in health costs..

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Medical debt is increasing even for the insured

Four in 10 Americans had trouble paying for medical care in 2007, according to the Commonwealth Fund’s latest study on medical debt.

The study, "Losing Ground: How the Loss of Adequate Health Insurance Is Burdening Working Families," looks at 2007 data on consumers’ and health costs.

Costproblems_2The Fund’s researchers examine 4 areas of cost-related access problems when it comes to health care for Americans age 19-64:

  • Those who did not fill a prescription (31%)
  • People not seeing a specialist when needed (20%)
  • Those skipping a medical test, treatment or follow up (25%)
  • Adults with a medical problem, but not seeing a doctor or clinic (31%).

Overall, 45 percent of American adults age 19-64 had at least one of these cost-access problems. This includes 29 percent of people who were insured all year.

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The first one’s always free….but will you buy a kid a bike?

Many times because I’m an independent consultant, blogger or general self-appointed health care know-it-all people want to talk to me. And I’m always happy to talk. Sometimes these conversations turn into business for me or THCB or Health 2.0, but sometimes they don’t. What I tell anyone who wants my time is that the "first one is always free."

Saigon

Meanwhile, as part of her return from a back injury my wife Amanda has bought a bike and is training for a triathlon later this Fall. It’s also renewal time for our favorite cause the Saigon Childrens Charity. Much of its resources are spent buying rice for poor families so that they don’t need to send kids out to work, and so the kid can go to school instead. With the price of rice doubling this year, things are getting tougher for the charity and the kids.

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