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Health Insurance

Pay More, Get Less

  • By
  • Joshua Freedman,
  • New America Foundation
April 30, 2014
The American middle class faces an uncertain future. Staring headlong into a difficult – and changing – world economy that has yet to fully recover from the Great Recession, many middle class families are trapped between low, stagnant wages and an increasingly expensive set of social and economic supports.

Productivity and the Health Care Workforce

  • By
  • Shannon Brownlee,
  • Joe Colucci,
  • New America Foundation
  • and Thom Walsh, Dartmouth Center for Health Care Delivery Science
October 2, 2013

Medicaid Is Asset Building?

May 2, 2013

A new study came out this week evaluating the impact Medicaid coverage has on participants' health, financial lives, and general well-being. Sarah Kliff describes the study design:

The research uses data from Oregon, where the state held a lottery among low-income adults in 2008 for a limited Medicaid expansion. Of the 90,000 people who applied, 10,000 ultimately gained coverage. The lottery gave researchers a unique opportunity to conduct the first randomized experiment on Medicaid coverage, by studying those who gained insurance through the lottery and comparing them against a similar group of adults who did not.

The randomization of the study is an important feature: other studies have struggled to control for the differences in people who seek out Medicaid coverage and those who do not (but may be eligible). As Joe Colucci from New America's Health Policy team explains, "That created an incredible research opportunity - the randomized design allows researchers to really see the effect of Medicaid enrollment on people’s health, and hopefully put to bed the nonsense idea that Medicaid is bad for people’s health."

The study looked at what impact Medicaid coverage has on people's physical health, as measured by things like blood pressure, cholesterol levels and other "easy to obtain" indicators. In the two year study period, the researchers found "few short-term physical health gains," which came as a surprise and disappointment to some and as fodder for others to decry the program as ineffective. (The results on the physical health side are complicated and mixed, but I would refer you to Kevin Drum's analysis for more on some of the statistical issues at play. A question posed Aaron Carroll and Austin Frakt is also relevant here: "How many people saying that are ready to give up insurance for themselves or their family?") 

From an asset-building perspective, the really amazing finding from the study is on the impact Medicaid coverage had on participants' financial security. Jonathan Cohn explains:

The big news is that Medicaid virtually wiped out crippling medical expenses among the poor: The percentage of people who faced catastrophic out-of-pocket medical expenditures (that is, greater than 30 percent of annual income) declined from 5.5 percent to about 1 percent. In addition, the people on Medicaid were about half as likely to experience other forms of financial strain—like borrowing money or delaying payments on other bills because of medical expenses.

I bolded parts of that because I really want to emphasize what a striking impact having health insurance had on people's financial situations. On top of the benefits to low-income people's financial security, the study also reported "significant improvements in mental health outcomes, with rates of depression falling by 30 percent."

Advanced Screening of "Escape Fire" in NYC

July 26, 2012
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On Friday August 6th, the New America Foundation will be hosting an advanced screening of "Escape Fire: The Fight to Rescue American Healthcare." The event will take place in New York City from 6:30pm-8:30pm. Watch the trailer here.

Directed by Matthew Heineman, “Escape Fire” is a stirring documentary about the perilous situation of our current healthcare system, and what can be done to fix it. The film, which has been honored at both the Sundance Film Festival and the Full Frame Festival, is being screened nearly two months before it comes out in theaters. More details, as well as a link to RSVP, are available here, at the event's page:  "Escape Fire - Screening Event"

Drug Regulation, Symbolic Votes, and Hospital Safety

July 16, 2012

Here's our wrap-up of last week's articles by our own Shannnon Brownlee and Joe Colucci:

Letting Big Pharma Review Its Own Drugs — What Could Go Wrong? (The Atlantic Health Channel):

Earlier this month GlaxoSmithKline agreed to pay a record breaking $3 billion fine for a slew of criminal and civil violations. But is a fine really enough? In a piece in The Atlantic, Shannon Brownlee and Joe Colucci argue that we need to stop letting drug companies track the post-market safety of their drugs and establish an external automatic review system. 


12 Ways Health Care Could Be Improved If the House Wanted to Hold More Than Symbolic Votes (The Atlantic Politics Channel):

In the wake of the House's 33rd vote to repeal/defund Obamacare, Joe and Shannon propose a list of 12 things the House could have done to make a better use of tax payers' dollars and actually improve health care. In the article in The Atlantic the proposals range from enacting a less intrusive mandate to funding after school programs to teach kids how to cook. Any of them would have worked better than another "symbolic vote."


Why The ‘Best’ Hospitals Might Also Be The Most Dangerous (TIME Ideas):

We've all seen them—the U.S. News Rankings of everything from colleges to cars. How do their hospital rankings look? In her latest article for TIME, Shannon argues that, based on new rankings by Consumer Reports, many top-name hospitals fail to measure up in terms of safety. Hospital rankings would be a lot more useful if they considered how medical care affects most patients, not whether a hospital performs some cutting-edge procedure on three patients per year.

31 Things the House Could Have Done...

July 16, 2012

Last week the house voted to repeal Obamacare... again.  This marks the 31st time that they have voted to repeal, defund, or otherwise try to hamper the PPACA, even though they have known that such efforts would go nowhere with Democrats controlling the Senate and the Presidency.  In response to this less-than-momentous occasion, my supervisors here at the New America Foundation wrote a piece for the Atlantic detailing real, meaningful reforms that could have been enacted instead of the 31 "symbolic" votes.  Those are great, but I've compiled a more comprehensive list of things that I think would really improve the health of both Congress and the American people:

  1. Sell the audio from all 31 repeal attempts as an over-the-counter insomnia cure.
  2. Create "Fast Food Health Savings Accounts": Every time you buy fast food, your credit card transfers $2 into an HSA to pay for your future diabetes treatment.
  3. Build a new exhibit in the Newseum: "Florets v. Freedom: Broccoli as Propaganda in American Life."
  4. Collect all the taxpayer money that would've been spent on these “symbolic votes” and associated debates, and buy insurance for 4500 families.
  5. Create a new weekly C-SPAN show called "Mandate: Delicious." Each show will consist of the reading of USDA-approved healthful recipies.
  6. Replace all the desks in the House with standing desks.
  7. Replace all the chairs in the Senate with yoga balls.
  8. Take the House on a field trip to a primary care doctor's office.
  9. Hold a Congressional Scavenger Hunt. The first Congressperson to bring back the following wins:
    1. An underpaid primary care doctor,
    2. A grossly overpaid specialist,
    3. A person who is uninsured by choice,
    4. A legible prescription,
    5. Credible evidence of "death panels."
    6. Bonus points to anyone who manages to get a primary care appointment without mentioning that they're insured.
  10. Get corporate sponsorship for major surgeries: “Well, Jim, you’ve got an artery that’s almost completely blocked. I recommend an immediate McDouble Bypass!”
  11. Compile a cookbook of heart-healthy broccoli recipes and start a CSPAN cooking show where Justice Scalia and George H.W. Bush demonstrate them.
  12. Have the two parties compete against each other in a special election-year season of "The Biggest Loser."
  13. Require all sodas in the Congressional cafeteria to be served in Dixie cups.
  14. Change the national salad from Jell-O salad to “anything containing actual vegetables, and comprised of no more than 50% by weight of ranch dressing.”
  15. Candy salad is not salad.
  16. Meat salad is definitely not salad.
  17. See if members of Congress are fitter than a fifth grader: Require all Members of Congress to perform the Presidential Fitness Challenge. Anyone who doesn't pass will be held in contempt.
  18. Get exercise by changing the House rules: Allow bills to be passed by calling for a dodgeball vote, where the last member standing gets to decide whether a bill goes on to the Senate.
  19. Commission a CDC report on whether broccoli consumption has gone down among conservatives since Obamacare passed.
  20. Establish a National Speed Limit for hot dog consumption of no more than fifty-five hot dogs per hour.
  21. Buy "Twinkie sniffing dogs" for the TSA.
  22. Form a committee to study the long-term effects of spray tan, chaired by Speaker Boehner.
  23. “Vaccinate” against obesity and related problems by making gastric bypass surgery part of the childhood vaccine schedule.
  24. Forget “a chicken in every pot.” Pass the "Wii the People" bill, putting a Wii Fit in every American home by 2014.
  25. Block grant Congressional health insurance. Stop giving Representatives federal health insurance; instead, increase their salaries by $8000 and let them choose their own plan in the individual market!
  26. Exclude any gathering involving a "You Bring It, We Fry It" truck from the Assembly Clause of the First Amendment.
  27. Enact a broccoli mandate (er, I mean, tax...?), just to see if it would work.
  28. Clarify to school lunch programs that pizza and ketchup are not, in fact, vegetables.
  29. Put WMATA in charge of the nation’s moving walkways and escalators. We'll all be taking the stairs within a week.
  30. Blame China.
  31. Just give up: Paula Deen 2012!

Health Wonk Review: SCOTUS edition

July 2, 2012
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The health wonks have responded en masse to the Supreme Court's decision on the ACA.  Here are the links to this special edition of Health Wonk Review.

Part 1

Part 2

A Supreme Day - In Photos

July 3, 2012

On Wednesday, June 27th my roommate convinced me that we should give up the comfort of our intern-housing beds for the cold hard concrete of justice and the company of other "Supreme nerds," waiting in line to witness the historic ruling on the ACA.  I'm usually not that compulsive, and I resisted at first. After some powerful persuasion, I eventually consented to go.  Interning here in DC this summer has presented me with many invaluable opportunities, but none has been as amazing as what awaited me next morning.  I owe my roommate a big "Thank you" for not succumbing to my stubbornness.

You could feel the excitement in the air.  Most of us were students or recent graduates, interns or nearby residents. Many didn't sleep that night, choosing instead to stay up night sharing opinions and speculations. Some finally succumbed to exhaustion.

We woke up in a sea of cameras. At 5:00 AM there were more camera crews set up than at 10:00am on Monday, when the Arizona case was released.  

As the morning wore on, I found myself constantly mulling over what might happen inside that beautiful building later that day. This would be among the most important, far-reaching cases of my lifetime.  

Politically I have always found a bit of both sides in myself.  With conservatives, I share concerns about the growing powers of government.  I was wary of the expansion of power that upholding the mandate would grant to Congress's interpretation of the Commerce Clause. (Yes--I was concerned about the broccoli argument.)

On the other hand, as I have learned more about the Affordable Care Act, it has become more and more appealing.  As a future physician I love the patient protections and expanded access that the health care law provides.  I also believe that sometimes the spirit of the law is more important than the letter of the law.

I hoped for a ruling that satisfied my views on both ends of the spectrum.  

While we waited inside I talked with a political science major from Johns Hopkins University.  When I asked her how she would respond to someone who believes that the ACA violates the Constitution she told me about her "Comparating Constitutions" class.  

"Under the United States Constitution, the government would not be violating its duty if it just sat back and did nothing," she said.  "Other countries' constitutions  have specific provisions written in them that forbid the government from doing nothing.  They have to provide certain services. Because of this, they are much more welcoming of big social changes like health care reform." When I asked if she advocates amending the constitution to have such duties she said, "Well, that's so long and difficult."

Her attitude surprised me.  In effect, she was saying, "Yeah, I realize there are limits in our Constitution, but they shouldn't get in the way of doing what society believes is right." 

Eventually we were shown upstairs to a room with small lockers where we were told to leave all electronic devices and other personal items.  From there we were directed to the courtroom where we waited and whispered for half an hour. Despite my profound lack of sleep, as soon as the Justices walked in a surge of adrenaline flooded my body.  No one but this relatively small group of people I was sitting with would ever witness these words uttered out of Justice Roberts's, Ginsburg's and Kennedy's mouths.  It was amazing to think that I was watching history before anyone else.  

The mandate was found unconstitutional under the Commerce Clause, but constitutional under the taxing power, and the rest of the law stood with it. (The Court did overturn the expansion of Medicaid as coercive, but the only part that was actually removed was the threat of removing all Medicaid funding for states that choose to opt out of the expansion.) I don't think there was a soul there who saw what was coming. As for me, I was elated! Upholding most of the ACA meant that meaningful health care reform would continue, and the check on the Commerce Clause abated my fears of growing Congressional power. Both of my concerns had been addressed.

I was surprised, however, by the "strike-the-whole-thing-down" position taken by the four justices who wrote the dissent.  As I see it, there are many parts of the ACA that are completely constitutional. The opinion of the dissenters seemed to be the mirror opposite of the opinion I had heard from the political science student just an hour earlier. According to the dissent's view of Congress's taxing and spending power, "the Court has long since expanded that beyond ... taxing and spending for those aspects of the general welfare that were within the Federal Government's enumerated powers." They cited "the Department of Education, the Department of Health and Human Services, [and] the Department of Housing and Urban Development" as "sizeable federal Departments devoted to subjects not mentioned among Congress' enumerated powers, and only marginally related to commerce."

In other words, they were saying, "Yeah, these agencies are solving pressing problems, but they extend beyond Congress's constitutional powers." Under similar logic, they argued that the whole Affordable Care Act should be struck down.

Picture:  Associated Press

After the Court finished the rulings, and the term, we were quickly ushered outside.  

Michelle Bachman was on a loudspeaker in the middle of the Tea Party crowd, insisting that since the justices had failed it now falls to the voters to repeal Obamacare.  She was drowned out, at times, by boos and chants of "Four more years" by people holding "we love Obamacare" and "stand up for women's health" signs.

 I stopped to ask a woman holding a "Protecting Our Care" sign what she thought about the ruling.  She was happy, of course, that the law had been upheld.  I followed up by asking her what she thought about Justice Roberts' ruling that the mandate doesn't stand under the Commerce Clause yet does stand under the taxing power.  She gave me a confused look and said, "I don't know what you're talking about."  Caught off guard, I awkwardly ended the conversation as I came to a profound realization:  most of these people here don't care about the specifics.  They're not here to find out how all the details play out.  

I would venture a guess that nearly everyone there that day would very comfortably identify themselves with one of two groups: those for limited government or for social justice.  In each group, as long as their ends are met, the details aren't important.  The limited government crowd wanted the law overturned--despite the fact that our health care system is on life support and millions don't have access to care.  The social justice crowd was elated by the ruling--regardless of its implications for the federal government's power.

In contrast to these groups, Court's job is only to determine whether the law in question is Constitutional--nothing more, nothing less.  As Justice Roberts put it, "we possess neither the expertise nor the prerogative to make policy judgments. Those decisions are entrusted to our Nation’s elected leaders, who can be thrown out of office if the people disagree with them." 

In that sense, it seems like this discussion--between two parties who care more about the ends than the means--is sort of out of place in front of the institution that is primarily concerned with the means. It was precisely the means, the details, that allowed me to feel like the day had been a win-win. By knowing the specifics of the law and the case against it, I felt like I was the only one reveling in a two-sided victory!

If the limited government crowd would have paid a little more attention to the details they may have found a silver lining in their defeat--the ruling on the Medicaid provision could end up being a major limit on federal power over the states, and some liberal bloggers have been complaining that the Court's ruling has "gutted the commerce clause."

Instead of examining the ruling, the groups were too busy volleying taglines. When this type of one way discussion takes place and people disregard the details, they tend to talk past each other.  The result is conflicting, often embarrasing, messages...

...like this:    

...or polls like this (CBS News/NY Times):  

And yet, while it might not always make sense, we have a long tradition of protesting in front of the Supreme Court.  I'm not suggesting that should end. Nor am I suggesting that we need to avoid the use of hyperbole to get one's point across.  Sometimes it can be entertaining.

But, are the two positions really irreconcilable? Can we fix the health care system and still keep limits on governmental power?  I believe we can, and I believe that is what we saw last Thursday.

Politics will continue to play on, speculations about Justice Roberts's reasoning will continue, but if we want to get things done we need to stop talking past each other, care enough to see what the other side has to offer, and build off our common ground.  

In the coming months and years, health care reform must continue. The ACA, though a good step forward, is far from a complete solution to the health care crisis. We have some tough questions ahead of us involving the quality and cost of care. Solving these problems will require our meaningful dialogue and thoughtful consideration of the details.

And by considering the details we may just discover, like I did, that solving problems doesn't have to be one-sided. We can find a middle-of-the-road solution that covers everyone's needs. That way, no one has to feel like they are "left out in the open."

The Supreme Court has Ruled on the ACA

June 28, 2012
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After a tense last two weeks of the term, the Supreme Court has handed down its ruling for the cases challenging the Affordable Care Act (Florida v. Department of Health and Human Services, Dep't of Health and Human Services v. Florida, and National Federation of Independent Businesses v. Sebelius). The court voted 5-4 to uphold the entirety of the law, under a different justification than many people expected.  Here's the link to the opinion (majority opinion by Chief Justice Roberts; concurrence by Justice Ginsburg, dissent by Justice Kennedy):  http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf. Please be patient if the opinion doesn't load right away--the Court's servers tend to get overwhelmed. The decision is also uploaded as an attachment on this post (on the right side of the page).

If you need a refresher on what the cases are about, here's our pre-oral argument summary, and our post-argument comments.

We're going to take our time reading the opinion, because we want to give you the our best analysis of what this means for the law, the health insurance and delivery system reforms already in progress, and the problems of unnecessary care and healthcare waste in general. We'll be back soon with our thoughts. In the meantime, follow us on Twitter (@NewHealthDialog) for immediate reactions!

The Number of the Day and ER alternatives

June 26, 2012
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The number of the day is 222—the international dialing code for Mauritania.  More interestingly, 222 is the number of nationwide ER visits per minute in 2011, according to the 2007 Emergency Department Summary from the National Hospital Ambulatory Medical Care Survey (NHAMCS). Across the year that amounts to “116.8 million ER visits or 39.4 visits per 100 persons.”

Last Monday the Alliance for Health Reform held a Briefing addressing this topic: "The Right Care at the Right Time:  Are Retail Clinics Meeting a Need?" The briefing was sponsored by the Alliance and WellPoint, Inc. to examine the question of whether urgent care clinics and retail care clinics (together called convenient care clinics) are meeting a need in the health care system. The panelists at the event included physicians from WellPoint, RAND Health, and the American Academy of Family Physicians (AAFP). The president of the trade association for retail clinics, the Convenient Care Association, was also on the panel. The conclusion of everyone present was that convenient care clinics are meeting a need. In a broader sense, their findings also presented a strong case for a reinvestment in and retooling of the primary care system, as a whole.

The use of emergency departments has been on the rise for many years. Contrary to popular belief, a Senate hearing reported that the main increase in traffic is not due to increased utilization by uninsured patients. Instead, the largest increase has been seen in those with private insurance.  The report also listed that "physician office visits have increased at an even higher rate than emergency department visits." They suggest that the concurrent increase in ER visits reflects a growing increase in demands for ambulatory care services, and that some of that demand is spilling over into the ER.

Urgent care clinics, like NextCare Urgent Care, and retail care clinics, like CVS’s “Minute Clinic,” are perfectly poised to benefit from this spillover (and the numbers show that they have).  They are open more hours than primary care offices, and cost less than the emergency rooms.  Granted, if you suddenly lose feeling on the left side of your body and start to slur your speech you are not going to stop to consider this dilemma, but ERs across the country already see a steady stream of people who are not in such life or death situations (ask any ER doc).  In fact, one of the panelists pointed out that nearly 25% of ER visits could be safely seen at other sites.  For the working single mom, whose daughter developed a fever of 101 on Saturday night, a quick Sunday morning visit to the nearest urgent care clinic will no doubt be preferred over an expensive 4 hour long ordeal at the ER.  And their transparent prices make it a feasible option for the cost conscious patient.

Rick Kellerman, former president of the American Academy of Family Physicians (AAFP), was the panelist representing traditional family physicians. As one might expect, family physicians initially felt threatened by the convenient care movement—especially by retail clinics, which are usually staffed with physician assistants or nurse practitioners. While many of their concerns (fragmentation of medical care, decreased care coordination, “medicalization of symptoms”) persist to this day, Kellerman said that the AAFP eventually told their members that they needed to wake up to the demands of their patients: “If you don’t like retail clinics, change the way you practice.” Subsequently, many physicians responded by offering changes such as extended hours, open appointments for call-ins, “quick clinics” for walk-ins with minor problems, and group appointments for chronic disease management. Many of these doctors have embraced the movement by partnering with clinics in order to get referrals or becoming supervisors of clinics. In forming such partnerships, these physicians are offering their patients a way to get setting of care that hopefully will combine the cost-consciousness and convenience of an urgent care clinic with the benefits of a long-term doctor-patient relationship and better-coordinated care.

While disagreements remain, the facts show that convenient care clinics are increasingly common, while the number of medical students going into family medicine is decreasing.  The convenient care movement has flourished in part because the status quo in health care is failing.  Regardless of what happens to the Affordable Care Act in the upcoming days, policy makers need to work toward a solution to the primary care problem—a solution that includes both convenient care clinics and traditional primary care. Everyone--primary care docs, retail and urgent care clinics, ER docs, and patients can benefit from making sure people are treated in the right place at the right time

If you want to find out more, here’s a link to the materials from the briefing.

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