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HIV/AIDS Programs Could Be Cut In Debt Ceiling Deal As Health Experts Warn Of ‘Significant Increases In New Infections’

“The resolution of the debt ceiling negotiations between the White House and congressional leaders has HIV/AIDS advocates concerned that federal funds for prevention and drug initiatives could be on the chopping block as a result of the agreement,” the Washington Blade’s Chris Johnson is reporting. That deal would raise the debt ceiling through 2012 by immediately cutting $917 billion from mostly discretionary spending and empowering a joint congressional committee to recommend $1.2 trillion to $1.5 trillion in additional cuts. HIV/AIDS programs could be targeted in both rounds of reductions and through spending triggers that would go into effect should Congress fail to enact the committee’s recommendations.

All federal funding of discretionary HIV/AIDS programs could see an impact as a result of the decision, HIV/AIDS activists warn, “including the Centers for Disease Control & Prevention, the Ryan White HIV/AIDS Program and AIDS research programs.”

Unfortunately, the deal comes on the heals of a new government released report, which found that while the number of people infected with HIV each year is relatively steady, rates of infection have gone up significantly among men who have sex with men (MSM), especially for those who are African American. “The current level of HIV incidence in the United States is likely not sustainable,” the report found, since the large and growing number of people living with HIV infections means more people can transmit the virus. If current prevention efforts “are not intensified,” the country could see “significant increases in new infections.”

NEWS FLASH

Debt Ceiling Trigger Could Increase Health Insurance Premiums | Larry Levitt and Gary Claxton of the Kaiser Family Foundation explain the implications of the debt ceiling’s trigger cutting back on the cost-sharing subsidies in the Affordable Care Act: “So, the direct effect of a triggered budget cut would be that low-income enrollees would still get improved coverage, but insurers would be paid less for providing that coverage. Insurers probably would try to recoup these losses by charging higher premiums (which would, in turn, also lead to higher federal tax credits). This might also make private plans reluctant to serve lower-income enrollees, and they could take steps to try to avoid that part of the market.”

Yglesias

Pelosi Vows Dems Won’t Get Rolled Again

At a meeting this morning with online writers, House Minority Leader Nancy Pelosi tried to persuade progressives that the Democratic caucus won’t get rolled in future hostage standoffs. The theme of the meeting was reluctance to re-hash or second guess debt ceiling strategy and attempt to get people to focus attention moving forward on jobs. But one natural forward looking question is whether we’ll simply see the same kind of standoff again and again, starting with the expiration of appropriations at the end of September. Pelosi swore that’s not the case: “Suffice it to say—we won’t see a repetition.”

When pressed she declined to get into specifics, arguing that to do so would undermine the efficacy of Democrats’ tactical options. But she posited that “a default is a much more serious consequence than a government shutdown,” indicating that part of the strategy is to be willing to go over the cliff and fight it out in the court of public opinion. Later, revisiting the subject she did specifically caution “I don’t want you coming out of here and saying I’m going to shut down the government.” The clear implication, however, is that she does in fact expect Democrats to refuse to agree to further spending cuts even if refusal results in a shutdown.

NEWS FLASH

Study: Healthy Food Is A Privilege Of The Rich | A University of Washington study released today shows that “a healthy diet is expensive and could make it difficult for Americans to meet new U.S. nutritional guidelines.” The nutrition requirements in the new food pyramid updated in 2010 will add hundreds of dollars to the average consumer’s grocery bill. People who spent the most on food “tend to get the closest to meeting the federal guidelines” while “those who spend the lest have the lowest intakes of the four recommended nutrients and the highest consumption of saturated fat and added sugar,” the study found.

Triggers In Debt Ceiling Deal May Undermine Access To Health Care Coverage, Defund Health Law

Politico’s Jennifer Haberkorn has written sobering report that has some progressives rethinking the argument that the sequestration trigger in the debt ceiling deal may do more to protect health care funding than the super committee’s spending proposal. As it turns out, those triggers — to go into effect if the super committee fails to agree on the necessary savings — would shield Medicare benefits, Medicaid and Social Security from spending cuts, but could still target the discretionary and mandatory spending used to finance implementation of the Affordable Care Act. As a result, the debt ceiling agreement could significantly reduce access to health care for millions of Americans.

Sen. John Barrasso claims that “there are at least 15 provisions of the Obama health care law that will find themselves subject to this trigger if the committee is not able to come up with other cuts”:

The funds for prevention programs and community health centers, grants to help states set up insurance exchanges and co-ops, and money to help states review insurance rates could be slashed across the board if the panel can’t find enough cuts this fall.

Funding for the temporary high-risk pools for pre-existing conditions could be sliced, too, as well as grants to improve maternal and child health. And as previously reported by POLITICO, the law’s cost-sharing subsidies — which are supposed to help low-income people pay their out-of-pocket expenses — could face the ax, too. [...]

Senate Republican leadership aides identified the potential funding cuts shortly after the law passed and are talking with the Congressional Budget Office to determine what parts of the law would be subject to sequestration.

As CBPP’s Edwin Park explained it to me — he is also quoted in Haberkorn’s piece — “the sequestration applies to any mandatory spending not specifically exempted. For example, low-income programs like Medicaid and refundable individual tax credits are exempt, so the ACA’s federal funding for the Medicaid expansion and the premium credits are not subject to the automatic cuts. But other ACA mandatory spending wouldn’t fit within those exemptions so things like the grants to states for setting up exchanges, the public health prevention fund, mandatory funding for community health centers, etc wouldn’t be protected.”

It’s worth noting that many of the targeted provisions — prevention, community health centers, high-risk insurance pools — have received bipartisan support and had been touted by Republicans as commonsense solutions for expanding access, creating jobs, and reducing health care costs (particularly during the Bush years). Now, they’ll be used as pawns to appease conservatives who want to see the health law defunded and completely eliminated. And that goal — unraveling the health care law — could very welcome become a reality if individuals are required to purchase coverage (once the mandate kicks in) without sufficient help from the government.

If I see any silver lining in this it’s that Office of Management and Budget — which is housed within the White House — will be responsible for determining how it will carry out the sequestration and HHS Secretary Kathleen Sebelius may have some discretion in how to apply the proportional across-the-board cuts.

NEWS FLASH

Florida Medical Association To Feds: Block Rick Scott’s Medicaid Privatization Scheme | “The Florida Medical Association voted to publicly oppose the state’s Medicaid overhaul and write a letter of concern to the federal government,” Brittany Alana Davis of Health News Florida reports. Scott’s plan — which has to be approved by the federal government — would require “most of the state’s 3 million Medicaid enrollees to join private health plans after July 1, 2012.” The proposal “gives managed care companies more control over the program that’s paid for with federal and state money.” Reports have suggested that Scott’s companies could also stand to benefit from the plan.

Anti-Abortion Activists Promise To Protest Any Business That Provides Parking Spaces For Planned Parenthood Clinic

Last month, anti-abortion activists in California kept Planned Parenthood from receiving a license to operate a new clinic in Redwood City by bullying Enterprise-Rent-A-Car into reneging on its contract to provide the center with the parking spots it needs to satisfy local zoning regulations. Now, as Planned Parenthood tries to find alternative off-site parking arrangements, abortion foes are promising “that any business that helps the women’s health services provider come up with the city-required spaces will find protesters with graphic pictures of fetuses on its premises”:

Belmont resident Ross Foti, who has already rallied outside the currently empty office building with other anti-abortion activists, said Tuesday that a woman he knows already approached Enterprise Rent-A-Car and other nearby businesses to express concern about Planned Parenthood moving into the neighborhood.

“No other business will even think about it, they know we’ll protest,” Foti said. “I know I will be there.”

An Enterprise spokeswoman is denying that the abortion activists influenced the company’s decision, however, saying that it backed out of the contract because Planned Parenthood wanted a longer-term agreement than it could provide.

If approved, the clinic would offer “preventative health care services, family planning, reproductive health, prenatal, and primary care services” and could dispense “chemical abortions” but “was not approved for surgical abortions.”

NEWS FLASH

Wellpoint Spending Thousands To Protect Republicans Against Wisconsin Recalls | In what could be an effort to weaken the new health regulations that states will be issuing as a result of the Affordable Care Act, Wellpoint — the nation’s largest health insurer — “is among the top donors to Republican organizations” pouring money into Wisconsin’s eight legislative recalls. The company has given $450,000 to the Republican State Leadership Committee and $250,000 to the Republican Governors Association.

Economy

Cantor: Entitlement Promises ‘Frankly, Are Not Going To Be Kept For Many’

During an interview with the Wall Street Journal, House Majority Leader Eric Cantor (R-VA) said he is ready and willing to slash entitlements like Medicare, because, in his opinion, Americans have to “come to grips with the fact that promises have been made that frankly are not going to be kept for many“:

What we need to be able to do is to demonstrate that that is the better way for the people of this country. Get the fiscal house in order, come to grips with the fact that promises have been made that, frankly, are not going to be kept for many. [...] The math doesn’t lie.

Watch it:

Republicans have been saying for months that they want to preserve programs like Medicare and Social Security for all people over the age of 55, but that those under 55 will have to shift into a different program. But Cantor’s pronouncement is maybe the most explicit explanation that, under the GOP’s vision, the government would be actively reneging on promises made to those who haven’t yet hit the arbitrary age of 55.

Of course, the math would look much better, particularly on Social Security, if the GOP were to back off its insistence that the government not collect a single dime in new revenue. Meanwhile, Jacob Hacker, political science professor at Yale University, has called the GOP’s scheme to raise the Medicare retirement age “the single worst idea for Medicare reform” since it “saves Medicare money only by shifting the cost burden onto older Americans caught between the old eligibility age and the new, as well as onto the employers and states that help fund their benefits.”

$27.6 Billion Per Year: Savings That Could Be Achieved From Single-Payer’s Administrative Simplifications

American doctors spend “nearly four times as much per physician as doctors in Ontario dealing with health insurers and payers,” and the additional time and labor drive U.S. per-physician costs to $82,975 annually versus $22,205 in Ontario, a new study published this morning in Health Affairs concludes. Most of Canada’s savings can be attributed to its single-payer system, one of the study’s authors Dante Morra told me, noting that American physicians have to incur substantial time and staff hours “interacting with multiple insurance plans about claims, coverage, and billing for patient care and prescription drugs.”

In fact, if U.S. physicians had administrative costs similar to those of Ontario physicians, the total savings would be approximately $27.6 billion per year. Just look at the difference in how American and Canadian doctors spend their time:

Morra told me that the study’s $27.6 billion in administrative efficiencies only reflects the savings attained from office physicians and does not include the potential cost reductions if other providers — like hospitals and physicians working in hospitals — spent less time processing claims for multiple payers. The real problem here is that a lot of this is out of reach. The United States isn’t moving toward a single-payer system any time soon, and while the President’s Affordable Care Act provides the Secretary of Health and Human Services with some discretion to simplify interactions between providers and health plans, any real long-term savings would have to come from the delivery and payment reforms that are still in the very early stages of development.

We’re still far-off from realizing any part of that $27 billion in savings, but Morra did mention one payment model that could achieve the efficiencies of Ontario’s single-payer system — all-payer rate setting. Under that structure, insurers can negotiate with providers for a single price for their services, thus saving providers the trouble of dealing with every single payer individually.

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Morning CheckUp: August 4, 2011

Health providers in cross hairs of deficit ceiling cuts: “This is a very serious problem for us,’’ said Dr. Lynda Young, president of the Massachusetts Medical Society. “Obviously we recognize the need for cost cutting, but the depth of the projected cuts is really going to have a serious impact on access. Physicians are going to say, ‘We can’t take any new Medicare patients because we just can’t survive.’ [Boston Globe]

Trigger better than super committee: “For starters, Medicaid is insulated from the trigger mechanism. So groups that are focused more on Medicaid than Medicare have more to lose from the supercommittee. And the same could be true for some sectors mostly concerned with Medicare.” [Sam Baker]

Or maybe not: “Many of the pots of money in the law — one of the Democrats’ most prized pieces of legislation — could get trimmed by the debt deal’s sequestration, or triggered cuts. The funds for prevention programs and community health centers, grants to help states set up insurance exchanges and co-ops, and money to help states review insurance rates could be slashed across the board if the panel can’t find enough cuts this fall.” [Jen Haberkorn]

And then there is this: “The Partnership for America called on Congress’ newly created “Super Committee” today to repeal and replace the President’s health care law as a first step towards achieving its task of making large reductions in government spending.” [Partnership For America]

Another health reform challenge tossed out: “The 3rd Circuit Court of Appeals on Wednesday upheld a lower court’s decision to toss out a healthcare reform challenge from a New Jersey doctor and one of his patients.” [Julian Pecquet]

Anti-choice voter fraud: A Milwaukee County prosecutor is examining allegations that the anti-choice group Wisconsin Right to Life and Family Action offered gift cards valued at $25 to $75 to volunteers who hit targets for persuading voters to fill out absentee ballot applications in the recall primary elections held last month. [Milwaukee-Journal Sentinel]

New HIV/AIDS data: “While the number of people infected with HIV each year is relatively steady — approximately 50,000 new infections each year — there was a 48 percent increase in the number of young HIV-infected African American men who have sex with men from 2006 to 2009.” The government says “the current level of HIV incidence in the United States is likely not sustainable,” since the large and growing number of people living with HIV infections means more people can transmit the virus. [NPR]

Hospitals cost Medicare more than they save: A new study comparing outcomes for patients cared for by primary care physicians and hospitals finds that “while the hospitalists’ patients indeed had shorter hospital stays, they were more likely to be readmitted to the hospital within 30 days, or to visit an emergency room within that first month.” [Julie Rovner]

Massachusetts hospitals to profit from ACA: “Hospitals in Massachusetts will reap an annual windfall of $275 million due to a loophole enshrined in the new health care law. Hospitals in most other states will get less money as a result.” [AP]

Essential benefits should include consumer protections: “HHS’ essential health benefits package should contain strong patient protections that will safeguard those navigating and enrolling in qualified health plans, recommend stakeholders who represent patients with chronic conditions and disabilities.” [Inside Health Policy]

Chubbier boomers will cost Medicare: “The first of the baby boomers are turning 65 this year and enrolling in Medicare. One-third are obese. An additional 36 percent are overweight. With obesity comes other related health issues, such as diabetes and hypertension.” [Tampa Tribune]

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