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NEWS FLASH

Seniors Still Having Trouble Signing Up For Medicare Prescription Drug Benefit | In what may very well preview the challenges policy makers will face in building effective health insurance exchanges, the Medicare Rights Center is reporting that five years “after the launch of Medicare prescription drug coverage, many beneficiaries are still struggling to sign up” for the benefit. “The report highlights how hard it is for beneficiaries to choose among ‘a multitude of plans that have different benefit structures, pharmacy networks, formularies and rules for accessing benefits,’” Julian Pecquet writes.

Economy

GRAPHIC: Obama’s Latest Debt Ceiling Offer Is To The Right Of Gang Of Six and Simpson-Bowles — GOP Still Says No

As the Washington Monthly’s Steve Benen noted today, Democrats have bent over backwards to craft a deal to raise the federal debt ceiling, only to be rebuffed at every turn by congressional Republicans who have been insisting that any deal include no new revenue and some cockamamie conservative policies (like a balanced budget amendment to the Constitution). To date, the GOP has turned away at least six different versions of Democratic plans to raise the debt ceiling.

Last week, Speaker of the House John Boehner (R-OH) walked away from a deal that would have involved $4 trillion in deficit reduction, with $1.2 trillion (just 30 percent) of that coming from new revenue. As the Center for American Progress’ Michael Linden noted, this deal from Obama is significantly to the right of other deficit reduction proposals — including the plan outlined by the so-called Gang of Six and the one developed by the Simpson-Bowles deficit commission — and is even to the right of his original framework for raising the debt ceiling:

The infographic above shows that the president’s latest offer to House Speaker John Boehner (R-OH) is heavily titled toward spending cuts. In fact, the president’s offer contained about $1 trillion less revenue than the recent proposal from the so-called Gang of Six, a group that includes three Republican senators and three Democratic senators. It also represents significant movement from the president’s original debt reduction framework, which itself was already more conservative than the recommendations from the chairs of the debt commission (Erskine Bowles and Alan Simpson) last December.

Unfortunately the Republican leadership still turned the president down despite his willingness to offer cuts to programs Democrats traditionally defend and to agree to much less revenue than all other bipartisan deals.

It’s worth noting that Republicans walked away from a deal offered by congressional Democrats under which 83 percent of the savings would come from spending cuts and just 17 percent from revenue.

Today, Boehner and Senate Majority Harry Reid (D-NV) unveiled competing plans for raising the debt ceiling. Reid’s, which the White House has endorsed, would cut spending by $2.7 trillion (inclusive of $1 trillion from “winding down the wars in Iraq and Afghanistan”), add no revenue, and make raising the debt ceiling again unnecessary until 2013. Boehner’s plan includes $1.1 trillion in cuts and raises the debt ceiling through April.

Justice

How Does An Abortion Provider Keep From Getting Shot?

Murdered Doctor George Tiller

Dr. LeRoy Carhart, one of the few remaining doctors who perform late-term abortions in the United States, explains the lengths he has to take to avoid being killed by people who call themselves “pro-life”:

He rarely stays at the same hotel twice. He rolls dice to pick the route he’ll take to work, because “the biggest part of security is not being predictable,” he said. [...]

On Sept. 6, 1991, the day Nebraska passed its parental-notification law, his farm burned down. No family members were hurt, but the fire destroyed his house and other buildings, and killed his dog, cat and 17 horses. The next day, Carhart received a letter informing him that the fire was in retaliation for the abortions. Local officials were unable to determine the fire’s cause. [...]

Carhart has installed two security cameras outside the clinic. (Last week, a Montgomery County circuit judge allowed him to keep the cameras after the office condo association asked for their removal.) Visitors to his Nebraska clinic have to walk through a metal detector, similar to those in airports; he would like to install one in Germantown.

Significantly, Carhart’s late-term abortion practice is limited to only a narrow group of pregnant women. One hundred percent of the abortions Carhart performed in his Maryland clinic involved fetuses with anomalies, and state laws generally forbid abortions after the point a fetus could survive outside the womb, with exceptions for the life or health of the mother or occasionally when the fetus has “serious genetic defects.”

Nevertheless, Carhart has good reason to fear for his safety. Just two years ago, anti-abortion terrorists murdered Dr. George Tiller for performing many of the same medical procedures that Carhart provides to women.

NEWS FLASH

Medicaid Cuts May Force West Virginia Hospitals To Shut Down | The West Virginia Gazette is reporting that hospital executives in West Virginia are closely monitoring the deficit talks, knowing that more Medicaid funding cuts could literally shut down “rural health sites across the state.” “If reimbursements are cut, too, what we’re going to see, I do believe, is the closure of some of our hospitals — and maybe even physician practices associated with hospitals — because we can’t operate in the negative,” one executive said in the article. According to the Gazette’s report, “many of West Virginia’s community hospitals are in the same situation, according to Tony Gregory, vice president of the West Virginia Hospital Association. In 2009, 36 West Virginia hospitals — 58 percent of all those in the state — lost money taking care of patients, he said.”

NFIB: Health Law Isn’t Forcing Small Businesses To Drop Coverage

NFIB President Dan Danner

You’d expect the National Federation of Independent Businesses (NFIB) — a lobby that has practically aligned itself with the Republican party and is a co-plaintiff in a lawsuit challenging the constitutionality of the Affordable Care Act — to release a survey that substantiates the GOP’s most popular criticisms of the law: it’s a job killer that will force businesses to stop offering health care coverage. But that’s not the story the group’s latest report, One Year After Enactment Of PPCA, tells. Instead, the group’s survey of small businesses finds that less than half of employers are familiar with the law (which itself says something about what they think about its impact) and relatively few expect to drop coverage as a result of it:

– The number of small employers offering employee health insurance has not changed appreciably in the last 12 months, the post-PPACA passage time frame.

– The number of small employers offering employee health insurance is likely to change little over the next 12 months. Virtually no small employer now offering expects to drop health insurance in the next year and virtually no nonoffering employer expects to add it in that time frame.

[M]ost small employers indicate they will not drop unless a large number of employees leave. The survey did not ask if they had actually calculated the possible cost savings of doing so. Nor did it ask if they would drop their health insurance following a competitor’s lead.

– 18 percent of small-business owners claim to be “very familiar” with the highly publicized health legislation. Another 40 percent report they are “somewhat familiar” and another 24 percent say they are “not too familiar” with it. The remainder, also 18 percent, are “not at all familiar” with the new law.

The report does put a negative spin on business opinion. It concludes that “[s]mall employers think the consequences of PPACA will almost uniformly be negative. Those who have at least some familiarity with PPACA expect the new law will increase taxes, will increase the federal deficit, will not slow health insurance cost increases, will not ease their administrative burdens, and will not improve public health.”

But those fears sound a lot more like GOP talking points than a measured analysis, and they echo the concerns some employers expressed about day one, month one, and year one of the law. Those doomsday predictions have not come to pass, and if the law is implemented well, they likely never will — at least not to the degree many imagine.

NEWS FLASH

$750,000: Amount Health Care Industry Spent Lobbying As Vermont Moved Toward Single-Payer | “Hospitals, doctors, drug companies, insurers and others with a stake in health care spent more than $750,000 lobbying at the Vermont Statehouse this year as lawmakers debated landmark legislation designed to put Vermont on the road toward universal health insurance,” the Associated Press is reporting, but notes that “exactly how much was spent on the bill itself is impossible to tell.” In May, Vermont “became the first state to lay the groundwork for single-payer health care.”

NEWS FLASH

Med Schools Worry About Medicare Cuts In Debt Ceiling Talks | Debt ceiling negotiations could cut millions from graduate medical education programs that fund residency slots for medical students, and medical deans across the country are speaking out. Ironically, the cuts could come just as the Affordable Care Act brings “millions more patients into the health care system” and the nation is already experiencing a shortage of physicians.

Testing The GOP’s ‘People Are More Cost Conscious With Skin In The Game’ Argument Part XI

Yale professors Theodore Marmor and Jerry Mashaw have an editorial in today’s Philadelphia Inquirer that offers what may be the clearest explanation for why Republican prescriptions that try to lower health care costs by forcing individuals to have more “skin in the game” are likely to have a negligible impact on spending:

Over four decades of economic analysis of American medical care, there has been a persistent emphasis on patient cost-sharing as a solution to growing public health budgets. The case for it would be straightforward if medical care were an ordinary market good.

We allocate bread and circus tickets to those willing to spend what bakers and circus managers charge. Those willing and able to pay get the services and goods, and no central authority need interfere. Hence, if we make patients pay more, those who cannot pay will do without, and total costs will go down. This is doubtless true, but most Americans do not believe medical care should be allocated that way.

Or there’s the argument that cost-sharing will get patients to forgo unnecessary care. But there is no solid evidence for this claim, and much contrary evidence. If free medical care led to more reckless overuse, countries like Canada and Germany, where patient costs are either zero or minimal, would suffer disproportionate inflation in expenditures or severe access pressures. They don’t.

Indeed, the theory doesn’t even hold up in the American health care system. As Austin Frakt pointed out recently, if individuals with higher cost sharing really do use less care, then beneficiaries in employer-sponsored insurance (who receives a 40 percent tax subsidy, on average) should spend less than Medicare enrollees — who receive a far higher government subsidy. But data from the Kaiser Family Foundation suggest that this just isn’t the case:

Yglesias

Harry Reid Calls House Republicans’ Bluff

Something you often see in negotiations is a mismatch between one side’s stated sticking points and its real sticking points. In the debate over the debt ceiling, for example, Republicans have sought to portray themselves as having two bottom lines. One is that any increase in the debt ceiling must be met dollar-for-dollar with spending cuts. The other is that no revenue increases can be part of the deal. What Harry Reid did yesterday was essentially call the GOP’s bluff by outlining a plan that raises the debt ceiling by $2.7 trillion and includes $2.7 trillion in spending cuts, a healthy share of which comes from winding down the wars in Iraq and Afghanistan.

Republicans are rejecting this even though it nominally meets their demands. Why? Because it doesn’t achieve either of their two real objectives. In particular, the plan doesn’t cut Medicare, which means that Democratic party candidates for office in November 2012 and 2014 can accurately remind voters of the content of the Republican budget plan. In case you forgot, this plans repeals Medicare. Having repealed Medicare, it then gives seniors vouchers to purchase more expensive private health insurance. And having replaced Medicare with a voucher system, it then ensures that the vouchers will grow steadily stingier over time. It was only after voting for this plan that Republicans seem to have realized that repealing Medicare is unpopular. Since that time, they’ve been trying to entrap Democrats into reaching some kind of Medicare détente with them, which would immunize them from criticism. Reid’s plan doesn’t do that.

Second, while Reid’s plan doesn’t raise taxes, it also doesn’t take tax increases off the table. Currently, the Bush tax cuts are scheduled to expire in 2012. If Reid’s all-cuts plan passes, that still leaves the door open to significant revenue increases. Now that doesn’t mean this is brilliant 11-dimensional chess. The Reid Plan is consistent with substantial revenues coming online in 2012, but that will only happen if President Obama and Senate Democrats stand firm and play hardball on the tax issue. Back in December 2010, they utterly failed to do so.

The Challenges To Expanding Medicaid, Enrollment To Vary From State To State

Republican governors who complain about the effect of Affordable Care Act’s expansion of Medicaid on state budgets, would be happy to read John Reichard’s report about the uncertainty surrounding the program’s enrollment growth. Two analysts speaking before an Institute of Medicine workshop on “health literacy” last week — Alice Weiss of the National Academy for State Health Policy and Georgetown University’s Sabrina Corlette — laid out the following challenges beneficiaries could face in applying for Medicaid of private insurance coverage through the exchanges:

1) Outdated paper-based systems: “People trying to enroll in Medicaid for example are used to a technology-enabled environment but are entering an antiquated paper-based system that involves going from office to office as part of the sign-up process. Weiss noted that according to a survey by the Pew Charitable Trusts, 35 percent of American adults now use smart phones, enabling them to download information from the Internet.”

2) Language barriers: “One in six adults in the U.S. do not speak English, she said. Many families have ‘mixed status,’ with one parent legally in the country, the other parent an illegal immigrant and the children U.S. citizens. Trying to help them figure out how to navigate the system is going to be a challenge, she said.

3) Changing eligibility: “Weiss also noted that fluctuating income levels during the year is going to require states to find a way to shift people back and forth from Medicaid to subsidized private coverage in exchanges. “States are going to have to make that process seamless,” she said.

Corlette noted that exchange users in Utah — which established the marketplaces before the Affordable Care Act became law — “objected to having to fill out detailed questionnaires about their health histories” and claimed that the “enrollment process was not easy.” Seventy-four percent “said they used a broker to help.” “In Massachusetts, people going to exchanges initially complained that there were too many plans to pick from and that they were overwhelmed by the level of choice.”

A lot of this rests on the shoulders of the various state systems and the state government’s willingness to adopt reforms that would help establish the kind of “enrollment superhighway” that federal health care reform advocates envisioned. But given the concerns about increasing Medicaid costs, some governors — particularly those who are not interested in expanding public health programs — may be less than willing to adopt changes that aim to increase enrollment and expand the state’s spending on Medicaid. Should that occur, health care reform will fail to bring much needed uniformity to the country’s patchwork of a health care system.

NEWS FLASH

Medicare Cuts Unlikely To Undermine Benefits | As lawmakers consider cutting Medicare as part of an effort to raise the debt ceiling, NPR’s Julie Rovner reports that if history is any indication, a final deal is unlikely to include cuts that affect Medicare beneficiaries. “The whole political history of (cutting) Medicare has been focused not on beneficiaries, it’s been focused on health care providers, such as doctors, hospitals and nursing homes,” she reports.

POLL: Americans Have Mixed Reactions To State Abortion Restrictions

As a wave of abortion restrictions sweeps the nation, a new Gallup Poll conducted between July 15-17 finds that “large majorities of Americans favor the broad intent of several types” of laws limiting access to abortions, but have very “mixed or negative reactions to others.”

An overwhelming majority — 87 percent — supported “informing women of certain risks of an abortion in advance of performing it,” and 70 percent backed “requiring parental consent for minors and establishing a 24-hour waiting period for women seeking abortions.” Fifty-seven percent, however, said they opposed “laws prohibiting health clinics that provide abortion services from receiving any federal funds”:

Interestingly, the partisan divides are far greater than differences of opinion based on gender:

As the Guttmacher Institute reports, 19 states enacted 80 new anti-abortion laws in the first half of 2011, “up from 23 such laws enacted in 2010 and shattering the previous record of 34 set in 2005.” Eight states have passed laws restricting abortion coverage that is “offered in any private health plan (including coverage through an exchange), and six others have restrictions that apply only to coverage through health exchanges.”

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Morning CheckUp: July 25, 2011

Welcome to Morning CheckUp, ThinkProgress Health’s 7:00 AM round-up of the latest in health policy and politics. Here is what we’re reading, what are you?

Reid’s debt ceiling plan: Boehner and Reid are preparing separate backup plans to raise the nation’s debt ceiling on Sunday after they and the White House were unable to form a bipartisan plan. Reid would cut about $2.7 trillion without touching “any of the entitlement programs that are dear to Democrats or raise taxes, which is anathema to Republicans.” [NYT]

Boehner’s debt ceiling plan: “Raise the debt limit in two phases, with a smaller increase of about $1 trillion immediately, which would carry the government through the end of this year, matched by a similar amount of spending cuts. The second increase would depend on a deficit-reduction commission’s recommendations.The commission would recommend a set of changes to safety-net programs and a tax overhaul in hopes of closing the deficit by as much as another $3 trillion. Once that package was adopted, the debt ceiling would be raised again in January 2012.” [WSJ]

A third option: Obama “should demand that the Congress get a clean bill raising the debt limit to his desk by Thursday. Moreover, he should state that he will veto any bill encumbered by amendments, and emphasize that if the Congress does not comply he will take the issue to the American people.” [Elizabeth Drew]

Bachmann explains anti-abortion views: “Francis Schaeffer also said that life is the watershed issue of our time, and how we come down on how we view human life will impact all other issues,” she said. “And so Marcus and I decided we didn’t want to be pro-life only, just as speaking… We wanted to live a life of being about pro-life.” Bachmann said that shortly after that realization, her and her husband began counseling and praying with single mothers, even driving them to adoption centers as an alternative to abortion.” [Des Moines Register]

Health providers embrace ACOs: “Hospital administrators and health care experts across the country say they’re creating the organizations, despite concerns about federal rules, because they realize they are the only way to remain profitable as a large portion of the nation’s population moves toward old age.” [USA Today]

Rep. Lois Capps defends IOM’s contraception recommendations: “There is nothing new or novel about requiring health insurers to cover contraception. For more than 10 years, civil rights laws have made explicit that employers who provide health insurance plans that cover other preventive health care and prescription drugs must cover contraception. Twenty-eight states now require contraceptive coverage in private plans. The Medicaid program has also long required that contraceptives be included as part of the coverage for beneficiaries.” [Politico]

Automakers to focus on health costs in labor negotiations: “One big target for the three U.S. automakers in talks beginning this week with the United Auto Workers for new labor agreements will be the $1.54 billion collectively spent by the companies last year on healthcare for union members and their families.” “Last year GM spent $665 million, Ford about $533 million and Chrysler about $339 million for their UAW-represented workers and families….Who picks up what percentage of that cost pool? That’s where the negotiation starts.” [Reuters]

Iowa health insurers have more time to implement MLR: Rather than being required to spend 80 percent on premium dollars by 2011, “health insurers must maintain medical loss ratios of 67 percent in 2011, 75 percent in 2012, and then come into full compliance with the 80 percent standard by 2013.” [Des Moines Register]

Kentucky also granted a year extension: Companies “must spend at least 75 percent of premiums on medical services this year and 80 percent in 2012.” [Courier Journal]

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