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The Ties That Bind? A Response to Doug Schoen

Our guest blogger is Neera Tanden, Chief Operating Officer at the Center for American Progress, who most recently served as senior advisor for health reform at the Department of Health and Human Services, advising Secretary Kathleen Sebelius and working on the president’s health reform team to pass the bill.

Yesterday as Washington was gripped by the contentious debt limit debate, Doug Schoen, a pollster by trade, took to the Huffington Post to assault the Independent Payment Advisory Board (IPAB) — a 15-member board of medical experts that was created by a provision in the Affordable Care Act. The board, whose members will be appointed by the President and confirmed by the Senate, is tasked with making binding recommendations to reduce expenditures in the Medicare system, unless Congress acts to alter the proposal or discontinue automatic implementation.

Schoen argues that IPAB will have to make steep cuts to meet annual targets. However, today, Republicans are proposing initiatives to dramatically cut Medicare, as the Ryan plan does and House Speaker John Boehner’s debt ceiling measure will likely do. Schoen says that changes to Medicare should be decided by elected officials, who will be held accountable for their decisions. But right now, members of Congress can lobby the Centers for Medicare and Medicaid Services to pay for unnecessary or untested treatments that drive up costs.

The purpose of the IPAB is to ensure policies are not based on the special interests of legislators. Indeed, the IPAB will be comprised of medical experts who can spend the time crafting policies to lower Medicare expenses while improving quality of care and Congress can override the recommendations if they choose. The question really is, do we prefer Congress making decisions on health care delivery instead of doctors, consumer leaders and other medical experts? By taking the politics out of the equation, meaningful payment reform and cost containment can be achieved, as it will not be hindered by payment providers’ undue influence. In fact, lawmakers who oppose the IPAB have received hundreds of thousands of dollars in campaign contributions from health care companies. This political sway was one of the key reasons Senator Jay Rockefeller (D-WV) constructed the IPAB model, stating “It is long past time that Medicare payment policy is determined by experts, using evidence, instead of by the undue influence of special interests.” To further ensure independence, a majority of members must be non-providers and cannot hold any other jobs. Read more

NEWS FLASH

House Approves Measure Preventing Women In Developing World From Receiving Information About Abortion With Voice Vote | Yesterday, the State-Foreign Operations Appropriations Subcommittee gave voice-vote approval to a draft bill that restricts U.S. spending on diplomacy and foreign aid. The measure would restore and expand the so-called global gag rule, a provision prohibiting foreign organizations receiving U.S. development assistance from using their own funds to perform abortions or provide women with information and referrals for the procedure. The rule, which unlike past variations, does not even make exceptions for HIV/AIDS programs.

NEWS FLASH

North Carolina Legislature Overrides Governor’s Veto Of Anti-Choice Bill | Last month, North Carolina Gov. Bev Perdue (D) vetoed The Woman’s Right To Know Act, anti-abortion legislation that forces women to obtain ultrasounds, state-mandated counseling, and wait 24 hours before an abortion procedure. Though the bill originally passed the state House and state Senate with one vote short of the three-fifths majority needed to override the governor’s veto, anti-choice Republicans have now leaped that hurdle. Yesterday, the state House voted 72-48 to override her veto. Today, the state Senate followed suit. After the one Republican who originally voted against the bill in June left the building, the state Senate voted 29-19 to cancel the veto. It is estimated that the measure, now law, would “lead to around 2,900 additional births annually and would cost taxpayers $6.7 million in the first year and $35 million over 5 years.”

Climate Progress

Rahall Ignores Mountaintop Removal’s Links To Cancer, Birth Defects While Sponsoring Legislation To Weaken EPA

Researchers have published two new studies linking water contamination caused by mountaintop removal mining to adverse health effects, further proof that the practice is not only destroying the environment but is also destroying human lives in the communities around it. The first study, published in June, linked MTR to higher rates of birth defects in surrounding communities. The second, released this week, found that multiple forms of cancer were twice as prevalent in MTR communities than they were elsewhere.

Rep. Nick Rahall (D-WV), meanwhile, continues to ignore the implications of these studies, paying them lip service while sponsoring legislation that will further undermine the Environmental Protection Agency’s ability to regulate coal companies and other polluters. Despite calling the incest claims “disgusting” and “uncalled for,” Rahall refused to say what action he would take on the studies multiple times in a recent interview with the Charleston Gazette, saying the studies made no recommendation for what action should be taken:

Well, first of all, I don’t find in these studies, certainly not the latest one that is, where they make any recommendation as to what we should do about mountaintop mining.

In reality, the studies called for specific actions, including strengthening existing EPA regulations. From the birth defects study:

Existing regulations to protect air and water quality in mountain-top mining areas may be inadequate, and enforcement of those regulations has been lax, though recent efforts by the Environmental Protection Agency may be moving in the direction of stricter regulations. The findings documented in this study con tribute to the growing evidence that mountaintop mining is done at substantial expense to the environment, to local economies and to human health.

Unfortunately, Rahall and Congressional Republicans are taking the exact opposite approach. Rahall co-sponsored legislation, passed by the House last week, that would gut the EPA’s ability to enforce the Clean Water Act. Instead of strengthening the EPA, which Rahall has accused of “strong-arming the states,” it would end its ability to restrict “dredge-and-fill” mining permits issued by the Corps of Engineers. The EPA would no longer be able to step in if it deemed state water quality standards to weak or withdraw its approval for of state water pollution regulatory policies.

Rahall claims he is taking the studies seriously. But his actions in Congress continue to tell a different story. In response to a guidance document on water quality standards and surface mining released by the EPA last week, Rahall again took the chance to criticize the agency, saying it had “appointed itself judge, jury and executioner” and “deemed itself Almighty God.”

Pelosi: If Boehner’s Plan Passes, ‘You Can Just Kiss Medicare Goodbye’

House Minority Leader Nancy Pelosi (D-CA) said Americans can “kiss Medicare goodbye” if House Speaker John Bohener’s (R-OH) debt ceiling compromise is passed into law, during a press conference earlier today. Pelosi was likely referring to a 12-member bipartisan committee in Boehner’s proposal that will be tasked with finding at least $1.5 trillion in savings from programs like Medicare, Medicaid, and Social Security:

PELOSI: This bill, in one fell swoop, just pulls the plug on progress for America’s families. Progress made in the last 50 years. As you know, we served the 46th anniversary yesterday of the signing of the Medicare bill. You can just kiss Medicare goodbye.

Watch it:

Robert Greenstein of the Center on Budget and Policy Priorities (CBPP) has described Boehner’s proposal as “tantamount to a form of ‘class warfare’” that “if enacted, it could well produce the greatest increase in poverty and hardship produced by any law in modern U.S. history.”

Yglesias

Live By The CBO, Die By The CBO

I loved the conclusion of Suzy Khimm’s piece about the clout of the Congressional Budget Office:

Such power has led some to question whether the CBO has an undue amount of influence on Washington politics and policymaking. “You know you’re not God,” Senate Finance Committee Chairman Max Baucus (D-Mont.) told Elmendorf during a 2009 congressional hearing. But some observers think those complaints say more about the frustration of dealing with an honest agency than about the agency itself. “It’s easy to say ‘the CBO made me do it,’ but they’re just providing information,” says Philip Joyce, a public policy professor at the University of Maryland and former CBO staffer. “People can use that information however they want to.”

Elmendorf, for his part, agrees. Whether legislation passes “depends on the judgment of members of Congress,” he told The Postin 2009. “We’ll provide information that helps them make that judgment. But the decisions are theirs.”

That’s just right. And part of what’s happened over the past few years is that I think people have started using the CBO wrong. The way this ought to work, roughly speaking, is that members of Congress frame a policy that does what they want to do. Then the CBO scores it. If the score ends up showing that the likely consequences of the legislation will somehow be wildly different than the legislators intended, of course the score should be cause for revision. It’s possible, for example, that a given tweak to benefit eligibility for some program or other would turn out to be much more costly than anticipated.

But what we’ve instead tended to see happen is for legislators to start with an arbitrary scoring target, typically a round number — $900 billion, $1.3 trillion, whatever — and then start writing the bill. Then if the CBO comes back with a number that’s slightly different from the target — $907 billion, $1.3 trillion but it’ll take 126 months instead of 120 — they go back and re-write the bill for basically no reason. The problem here is that the target itself was totally arbitrary, and the forecast from the CBO is full of uncertainty. There’s no reason for Boehner to be putting forward a bill whose cuts are more front-loaded than he himself thought was desirable on Monday just because the CBO scores come out somewhat differently. But that’s on him, not on the CBO.

American Action Network’s Chutzpah: Mail Campaign Claims Democrats Would Balance Budget ‘On Backs Of Seniors’

The American Action Network — a conservative group backed by Republicans with close ties to Wall Street — “is launching a large-scale mail and newspaper ad campaign” to shore up Republicans by attacking Democrats for allegedly balancing the budget “on the backs of seniors” and introducing “radical” “Medicaid-style rebates to the Medicare Part D program.”

“The mail campaign will reach 22 congressional districts in 14 states, all of them represented in Congress by Republicans,” Politico reports. Below is a sample:

The Medicaid Part D changes are a reference to Rep. Henry Waxman’s (D-CA) proposal (and Sen. Jay Rockefeller’s (D-WV) companion Senate bill) to extend Medicaid drug rebates to dual eligibles — beneficiaries who qualify for both Medicare and Medicaid — and is only as “radical” as, well, health policy in 2003.

Waxman introduced the legislation after the 2003 Medicare part D law moved the 6 million dual eligibles into the Medicare part D program, thus creating a windfall for the industry. Whereas Medicaid obtained an average discount of about 34 percent from pharmaceutical companies that participated in the Medicaid program, “the average discount obtained by the Part D plans was 14 percent,” according to a report issued by Waxman. As he put it, “The drug companies are making the same drugs. They are being used by the same beneficiaries. Yet because the drugs are being bought through Medicare Part D instead of Medicaid, the prices paid by the taxpayers have ballooned by billions of dollars.” CBO estimates that if drug manufacturers provided the Medicare Part D program with the same prices that Medicaid receives, the government could save $112 billion over 10 years.

And if anyone is looking to balance the budget on the back of seniors, it’s not the Democrats — whose current proposal (Sen. Harry Reid’s plan) excludes any cuts from entitlement programs. It’s the Republicans who will benefit from AAN’s flyers.

The GOP voted against the Affordable Care Act — which extends the life of Medicare by 9 years and provides rebates to seniors who fall into Medicare Part D’s doughnut hole — and they supported Paul Ryan’s budget. That plan eliminates the supplemental Medicaid coverage that dual eligibles enjoy and replaces it “with a medical savings account” that, based on CBO estimates, would result in a 65-year-old who lives at the poverty line to pay “$4,700 more in 2022 than he or she would under the programs as they exist today.”

If the 22 Republican members vote in favor of Speaker John Boehner’s (R-OH) debt ceiling proposal later today, seniors will fare even worse. They’ll face cuts of billions of dollars from a commission that would tasked with finding $1.5 trillion in savings by “cutting Social Security and Medicare benefits heavily for current retirees. ”

NEWS FLASH

Rick Perry: Abortion Is A States’ Rights Issue | Texas Gov. Rick Perry (R) categorized abortion as a states’ rights issue yesterday, “saying that if Roe v. Wade was overturned, it should be up to the states to decide the legality of the procedure,” ABC News reports. “You either have to believe in the 10th Amendment or you don’t,” Perry told reporters after a bill signing in Houston. “You can’t believe in the 10th Amendment for a few issues and then [for] something that doesn’t suit you say, ‘We’d rather not have states decide that.’” Perry made similar remarks about same-sex marriage last week, despite supporting a constitutional amendment outlawing it.

NEWS FLASH

Massachusetts Health Care Law Increased Employer Based Coverage | Seventy-seven percent of Massachusetts employers offered coverage to their employees last year, up from 70 percent in 2005, the year before the passage of the state’s health care reform legislation, a survey by the Massachusetts Division of Health Care Finance and Policy finds. “Under the 2006 law, employers with at least 11 employees are assessed an annual fine of $295 for each full-time employee that is not offered qualified coverage.” The Affordable Care Act doesn’t require employers to offer coverage, but stipulates that larger businesses have to pay a fine if their workers receive subsidized coverage from the exchanges.

Opposition To Health Reform Falls, Majority Want To Keep It Or Expand It

A new health care tracking poll from the Kaiser Family Foundation finds that as the opposition to the Affordable Care Act has fallen (from 46 percent to 43 percent), a majority of Americans (53 percent) want lawmakers to expand the law or keep it, and 46 percent say they are still confused by it:

On the debt debate, Americans “see a role for reducing spending in deficit reduction,” but majorities continue to say they would not support any reductions to spending on Social Security (62 percent) or Medicare (59 percent), and almost half (48 percent) say the same about Medicaid:

New Health Expenditures Report Shows That Health Reform Was A Good Deal

A new report from the Medicare Office of the Actuary estimates that “health spending will grow by an average of 5.8 percent a year through 2020, compared to 5.7 percent without the health overhaul.” As a result, the nation is expected to spend “$4.6 trillion on health care in 2020, nearly double the $2.6 trillion spent last year”:

In 2014, when the major coverage expansions of the health law begin to take effect, national health spending is expected to grow 8.3 percent, according to the new analysis. But spending growth should return to its 6 percent historical average from 2015 to 2020 as some employers drop coverage and the so called “Cadillac tax” on high-cost insurance plans takes effect in 2018. “The effect is likely to be a slowdown in the growth of health services, health insurance premiums and health spending overall,” the study said.

Look:

Election-centric Orrin Hatch is already out with a statement claiming that reform makes “sky-rocketing healthcare costs worse,” but he would be well served to read the report more closely. CMS is saying that the law expands coverage to 30 million Americans while increasing the average annual growth in national health spending by just 0.1 percentage points over 10 years and predicts that expenditures will fall as cost-controls like the excise tax decelerate health care spending over the long haul. That’s a good deal that establishes a more sustainable and stable health care system, and it will likely only improve as provisions like the Independent Payment Advisory Board (IPAB) kick into higher gear. The report also found that in 2014, “out-of-pocket spending is projected to decline 1.3 percent, largely as a result of the uninsured attaining health coverage through Medicaid or health insurance exchange plans.” Overall, “out-of-pocket share of national health expenditures is projected to fall from 12 percent in 2009 to 9.6 percent in 2020.”

The CMS projections may also underestimate the savings from the delivery reforms and productivity adjustments — which will encourage providers to deliver quality care more efficiently. Those kinds of changes have led to real savings in the Geisinger Health System, Health Partners, Denver Health, and if properly implemented, could result in larger reductions in national health care spending than what the actuary is predicting.

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Morning CheckUp: July 28, 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?

Revised Boehner debt ceiling bill calls for entitlement cuts: “The debt reduction legislation GOP staff scrambled to rewrite on Wednesday after getting a dismal CBO score on its first try still requires $1.8 trillion in entitlement cuts in the out years, but does not immediately impact the health sector. [Inside Health Policy]

Health costs increase: “A new report by the Medicare Office of the Actuary “estimated that health spending will grow by an average of 5.8 percent a year through 2020, compared to 5.7 percent without the health overhaul. With that growth, the nation is expected to spend $4.6 trillion on health care in 2020, nearly double the $2.6 trillion spent last year.” [Kaiser Health News]

Americans skeptical of health law: “Only 20 percent of people believe consumer protections will get better under the law, while most others think protections will stay the same or get worse, according to the poll from the Kaiser Family Foundation.” [Kaiser Health News]

Drug benefit reduces hospital costs: Offering prescription drug coverage to the federal Medicare program’s elderly beneficiaries reduced spending on hospitals and nursing homes, a study found. [Bloomberg]

Calorie labeling doesn’t lead to less calorie consumption: Another study finds no significant change in average calories customers purchased before and after the labeling law took effect: 828 calories before the law, 846 after. [WSJ]

Texas Planned Parenthood clinic vandalized: A Planned Parenthood clinic in McKinney, Texas was attacked with a “Molotov cocktail, consisting of diesel fuel in a glass bottle with a lit rag. Morgan said the device did not penetrate the front of the clinic but did cause damage. [Pegasus News]

Abortions decline in Nebraska: The number is down more than 10 percent so far, for which anti-abortion proponents are crediting a law banning the procedure 20 weeks after fertilization. Others are attributing the decrease to “improvement in birth control, improvement in (the use of) the morning-after pill” and contraception. [Omaha World Herald]

Pawlenty offers prize to anyone who identifies Obama’s plan on entitlement reform: “I will mow your grass, limited to one acre. Or I will cook dinner, menu of my choice. Or if you like hockey, we’ll organize a hockey game and make sure you score,” he said in Iowa. [Des Moines Register]

Global health cut: “House appropriators passed a spending bill that cuts the administration’s Global Health Initiative by $700 billion. AIDS advocates immediately decried the cuts’ potential impact on the President’s Emergency Plan for AIDS Relief.” [The Hill]

First health appeal to the Supreme Court: “The Thomas More Law Center formally asked the Supreme Court Tuesday to reverse an appeals court decision upholding the health care reform law.” [Newshour]

Businesses worry about health costs: “A new survey by Lockton, Inc.’s Health Reform Advisory Practice reports that 80 percent of respondents are concerned about federal health reform’s additional administrative obligations.” [Forbes]

Democrats urge Sebelius to adopt IOM recommendations: “While women’s health is often politicized, the IOM’s recommendations break through politics and focus on the data,” House Democrats wrote in a letter to Sebelius. “They were developed by an expert panel through an exhaustive review of scientific evidence and rigorous research. We encourage you to adopt each of their recommendations in full.” [Sam Baker]

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