We didn’t intend for this blog to be all about health care reform, but it is so fascinating to watch and follow we’re going to keep posting periodic updates. This is a historic time for our health care system and in our opinion putting a legislative solution in place still has a ways to go.
It sounds like Congress is trying to “water-down” the whole public option debate by introducing an approach similar to the Federal Employees Health Benefits Program (FEHBP) offered to federal employees. The Office of Personnel Management (OPM) would be involved for oversight- but a government-run/Medicare-like approach wouldn’t be part of the picture. This seems to have traction for some of the more moderate legislators on both sides- but those on the far left may not be as receptive. The details of how this would all work is still pretty sketchy but would be delivered through insurance exchanges of private non-profit organizations. We'll need to see more of the details before formulating an opinion.
The big issue of the day surrounds the topic of abortion. This topic may very-well determine whether health care reform legislation becomes a reality. The majority is dealing with a very fragile and fragmented constituency and the outcome of this high-profile topic could very well tip the momentum of reforming the system one way or another.
We spent some time reviewing the CBO’s estimates of the impact on insurance premiums of the Senate Bill (3590) as it is currently written. We remain skeptical of the impact this legislation will have on the primary issue facing health care today- the costs.
Kaiser Family Foundation recently determined that the average annual premium for individuals with single and family coverage was $4,800 and $13,000 respectively in 2009. According to the CBO estimates, these prices would increase to $7,300 and $20,000 under the legislation- roughly a 9% increase each year. This is the same increase (or a little higher) employers have been experiencing over the past 10 years. We really don't understand the benefit of the legislation related to moderating health care costs as it is laid out today.
As we have said numerous times in the past, the focus should be on efficiency, integration, consumer engagement, and cost-management in order to reform health care. Putting all the emphasis on reforming the insurance marketplace may address access, but doesn't do much for the costs (sounds like the Massachusetts experience).
Despite the goal of presenting legislation to the President before the end of the year- Congress still has a long ways to go. And, unfortunately they continue to focus on the wrong things. And, most consumers tend to agree right now.
It sounds like Congress is trying to “water-down” the whole public option debate by introducing an approach similar to the Federal Employees Health Benefits Program (FEHBP) offered to federal employees. The Office of Personnel Management (OPM) would be involved for oversight- but a government-run/Medicare-like approach wouldn’t be part of the picture. This seems to have traction for some of the more moderate legislators on both sides- but those on the far left may not be as receptive. The details of how this would all work is still pretty sketchy but would be delivered through insurance exchanges of private non-profit organizations. We'll need to see more of the details before formulating an opinion.
The big issue of the day surrounds the topic of abortion. This topic may very-well determine whether health care reform legislation becomes a reality. The majority is dealing with a very fragile and fragmented constituency and the outcome of this high-profile topic could very well tip the momentum of reforming the system one way or another.
We spent some time reviewing the CBO’s estimates of the impact on insurance premiums of the Senate Bill (3590) as it is currently written. We remain skeptical of the impact this legislation will have on the primary issue facing health care today- the costs.
Kaiser Family Foundation recently determined that the average annual premium for individuals with single and family coverage was $4,800 and $13,000 respectively in 2009. According to the CBO estimates, these prices would increase to $7,300 and $20,000 under the legislation- roughly a 9% increase each year. This is the same increase (or a little higher) employers have been experiencing over the past 10 years. We really don't understand the benefit of the legislation related to moderating health care costs as it is laid out today.
As we have said numerous times in the past, the focus should be on efficiency, integration, consumer engagement, and cost-management in order to reform health care. Putting all the emphasis on reforming the insurance marketplace may address access, but doesn't do much for the costs (sounds like the Massachusetts experience).
Despite the goal of presenting legislation to the President before the end of the year- Congress still has a long ways to go. And, unfortunately they continue to focus on the wrong things. And, most consumers tend to agree right now.
We wish they would listen.
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