Tag Archives: American Hospital Association

Docs Discover New Socialist Plot

It took a couple of days, but sure enough, the hospitals and doctors recovered their senses to see the Reid-proposed Medicare buy-in as, Oh My God, back-door socialism. In place of an enfeebled public option, now beaten to death in the back rooms of the Senate, the Dems are  proposing to make the biggest single-payer medical enterprise in the United States even bigger. Never mind that the buy-in would cost more than most people could afford; it’s still a step down the slippery slope to socialized medicine. As the Washington Post writes Friday morning:

The 10 moderate and liberal Democratic senators who negotiated the tentative agreement regarded the buy-in as a compromise. They dropped the idea, central to the health-care bill adopted by the House, of a government-sponsored insurance system. Instead, the buy-in would provide a new public alternative to people within a 10-year age span.

Some critics characterize this approach as disingenuous. “This was in the context of an alternative to a public program, when [Medicare] is . . . perhaps the biggest public program in health care in the universe,” said Richard J. Pollack, executive vice president for advocacy and public policy for the American Hospital Association, which sent out an alert urging hospitals nationwide to complain to their members of Congress.

AARP, health insurance mogul and self proclaimed voice of the geezer, nixed the idea. From the same article:

“I just don’t see it being that popular,” said John Rother, executive vice president for policy and strategy for AARP, an enormous lobby for people 50 and older.

He and others said it remains unclear whether the program would be designed with the same health benefits, co-payments by patients, or access to private health plans and supplemental coverage as the rest of Medicare. Depending on such details, Rother said, “it’s not even Medicare, but that’s a brand name everyone likes.” Still, he said, AARP always has favored the creation of a buy-in, as long as it would not worsen the Medicare system’s already shaky finances.

Then came the kiss of death. Yesterday, Nancy Pelosi came out for the buy-in.

Will Obama Fall for the Health Care Industry’s PR Stunt?

In a much-anticipated statement today, Barack Obama announced what is largely a public relations end-run by the health care industry, designed to trim a few scraps off of the nation’s porcine health care budget, while preserving its basic system of medicine for profit.

In a letter to Obama that was released over the weekend, executives from the Advanced Medical Technology Association (the medical device manufacturers lobbying group), the American Hospital Association, the American Medical Association, America’s Health Insurance Plans, and the Pharmaceutical Research and Manufacturers of America, as well as the Service Employees International Union, pleged to “do our part” to reduce health care costs. Their vague, pie-in-the sky promise amounts to just a 1.5 percent reduction in the growth rate of health care spending. Such is the explosion in health care costs that even this miniscule reduction represents a potential $2 trillion saving over 10 years. But there’s no guarantee this figure will be achieved. As the Washington Post points out:

The groups did not spell out yesterday how they plan to reach such a target, and…they offer only a broad pledge, not an outright commitment….In addition, White House officials said, there is no mechanism to ensure that the groups live up to their offer, only the implicit threat of public embarrassment.

“Public embarrassment”? By Big Pharma and the health insurance companies–two of the most shameless industries in the history of corporate capitalism? In any case, even if the $2 trillion reduction is achieved, it clearly won’t come out of industry profits. The Post reports:

Signers of the letter said that large amounts could be saved by aggressive efforts to prevent obesity, coordinate care, manage chronic illnesses and curtail unnecessary tests and procedures; by standardizing insurance claim forms; and by increasing the use of information technology, like electronic medical records.

So let’s get this straight: Saving all this money depends on getting Americans to eat less? Good luck with that one. And the other brilliant cost-saving measures involve getting doctors to create computer records of all the overpriced drugs they prescribe to patients, and giving patients easier forms to fill out before they get turned down six times by their private insurance companies?

Do you see a pattern here? None of these changes would make a dent in the industry’s bottom line–and what’s more, they could even enhance profits, by encouraging government-funded programs to help private companies streamline their bloated bureaucracy (much of which would instantly become superfluous under a public, single-payer system). The letter to Obama suggested this when it said: “We are committed to taking action in private-public partnership to create a more stable and sustainable health care system.” As we all know by now, “private-public partnership” usually means public investment for private profit.

It all adds up to a brilliant move, when you think about it. It makes the private health care companies look cooperative and proactive, rather than like the greedy obstructionists they really are. It gets these companies on the inside track with the administration, and creates common cause with the unions. In particular, it establishes a solid place at the table for the health insurance industry, the blood-sucking middlemen who ought to be kicked out of the health care system altogether. 

And what might the industry get in return for this generous “cooperation”? The Kaiser Daily Health Policy report today rounded up the possibilities:

The [Wall Street] Journal reports that although the groups did not ask for anything in return for the pledge, many of the factions are looking to prevent regulations that could “pose new burdens” or affect their profitability. For example, the health insurance industry is seeking to offset any reductions to their payments by obtaining new rules that would require all U.S. residents to have health coverage, according to the  Journal. The Journal reports that health insurers have made several concessions intended to prevent a public option — which they fear could affect their profitability — as part of reform legislation (Wall Street Journal, 5/11). According to the AP/Philadelphia Inquirer, drugmakers are hoping to avoid a requirement that new drugs pass a cost-benefit test before receiving regulatory approval. In addition, hospitals and physicians are looking to avoid a system in which the government would dictate their payments for all patients, not just those under Medicare or Medicaid (Alonso-Zaldivar, AP/Philadelphia Inquirer, 5/11).

In other words, the underlying purpose of this PR stunt is to slow or block any meaningful health care reform, which could actually improve care while reducing the price tag by a lot more than 1.5 percent. These include regulating the cost of pharmaceuticals and medical devices, curtailing or eliminating the role of the insurance companies, or introducing single-payer, which allows other developed countries to deliver superior health care for 20 to 40 percent less–all of which make $2 trillion in weight-loss programs and paperwork reduction measures look pretty pitiful by comparison.

All we can hope for is the possibility, remote as it may be, that Obama himself is also playing a PR game–making nice with the industry shills while planning some kind of genuine reform that will hit them in the only place it counts, and the only place where really meaningful savings reside: their profit margins.