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Administration Takes Heat Over Essential Benefits Guidance | Two authors of the Institute of Medicine report on essential health benefits criticized the Department of Health and Human Services’ pre-bulletin guidance granting states greater flexibility in designing essential health care benefits, arguing that the administration’s approach represented a “missed opportunity” for ensuring health insurance affordability. “By giving the states the option to pick the various plans, they in essence said any of the state mandates would be OK,” John Ball, chairman of the IOM essential benefits committee told Politico. In October, the IOM had recommended that HHS establish a premium target — “setting a dollar amount for coverage and then filling in the benefits to meet the limit” — or use “medical effectiveness to select benefits. Interestingly, an editorial in this morning’s Des Moines Register also notes that a federal standard would establish greater uniformity across the country and “guarantee a diabetic or autistic child had equal coverage, regardless of where they lived.” “It makes sense for the federal government to set details, because billions of federal dollars will be used to help pay for these insurance plans,” the paper says. “Also, compared to elected officials, executive branch workers are relatively free from the influences of special interests.”

NEWS FLASH

Study: Active Parental Involvement In Children’s Health Care Can Lower Costs | A new study finds that active parental involvement in children’s health care decisions can help improve outcomes and lower health care spending. According to research published in Pediatrics, “parents who report having an increased involvement in making decisions about their children’s medical treatment are more likely to see lower risks of their kids going to the emergency room or being hospitalized.” Health care spending also dropped from $2,000 in the first year to $1,700 in the second year “if families had a growing part in making decisions.”

Economy

Perry Joins Gingrich In Desire To Drug-Test Federal Aid Recipients: ‘I Don’t Have A Problem In The World With That’

Last month, 2012 GOP presidential hopeful Newt Gingrich called for drug-testing recipients of federal aid. “Unemployment compensation, food stamps, you name it,” he said.

And Gingrich now has a kindred spirit in the GOP race when it comes to drug-testing those who need to access federal programs and the social safety net — Texas Gov. Rick Perry:

“I don’t have a problem with before you get any dollars from the federal government that you’re drug tested,” Perry said in response to a man who suggested the idea in a question to him at a meet-and-greet in Mt. Pleasant, Iowa, that drew over 80 people. Perry pointed out that as a pilot in the Air Force, he himself had been drug tested. “I don’t have a problem in the world with that,” he said.

As ThinkProgress’ Justice Ian Millhiser has noted, this sort of policy “would likely run headlong into the Constitution,” as it constitutes a “suspicion-less search,” nevermind the fact that drug testing requirements cost more money than they save and welfare recipients actually use drugs less than other groups. Even 2012 GOP candidate Rick Santorum, a big fan of rabid right-wing causes, wouldn’t endorse federal drug-testing for benefits.

Republicans in several states, however, have embraced testing those who need benefits, as have House Republicans at the federal level. In Georgia, one Democratic lawmaker responded to his Republican colleagues’ desire to test beneficiaries by introducing a bill to drug-test lawmakers.

As Rick Scott Refuses To Implement Health Reform, Number Of Uninsured Continues To Increase

Florida Governor Rick Scott (R) is one of the most vocal opponents of the Affordable Care Act, rejecting millions of dollars in federal grants and failing to implement key infrastructure that could help lower the state’s ballooning uninsurance rate and control costs.

Now, a new report from the Florida Health Care Insurance Advisory Board finds that the state’s health care picture is only getting bleaker: enrollment in health insurance has dropped for the fifth straight year in a row, from 4.5 million in 2006 to 3.7 million in 2010:

The drop last year stemmed primarily from losses in the in-state small-group market, which saw enrollment decline by almost 19 percent. The individual market saw a 3 percent increase in 2010. But the report, which is updated annually, said the uptick in individual coverage is linked to the drop in the small-group market. “Because of the natural link between small business coverage and individual coverage, enrollment gains in the individual market can be reflective of a somewhat weakening small group market as smaller employers drop coverage,” the report said.

The 2010 Census found that Florida is home to the third-highest percentage of residents without health insurance and 3 of the top 10 highest-spending metropolitan areas in the country. Meanwhile, Scott — a former health care executive whose for-profit health care hospital chain was charged with excessive government fraud — refuses to even recognize the legality of the federal health care reform law. As he told the Palm Beach Post in November, “It’s not the law of the land,” Scott said. “I don’t believe it will ever be the law of the land.”

Link The Doc Fix To A Larger Payment Reform Package

Our guest blogger is Lindsay Rosenthal, a Special Assistant for Domestic Policy at the Center for American Progress.

With lawmakers determined to curb spending, legislation to prevent Medicare providers from taking a 27 percent cut in 2012 has been swept up in congressional battles over the payroll tax, bringing a new urgency to the debate surrounding how best to reform the Sustainable Growth Rate formula (SGR). Since 2002, when the cost of health care skyrocketed beyond the nation’s economic growth rate, Congress has sheltered doctors from the excessive payment cuts required by the SGR, continuously voting to prevent full cuts to Medicare reimbursement payments and kicking the can down the road through so-called “doc fixes.”

Sarah Kliff of the Washington Post raises the question of whether we should “fix doc fix” at all. As she argues, we already pay doctors, particularly specialists, much more than other countries pay their physicians, without achieving better health outcomes. But surveys conducted by the American Medical Association (AMA) also show that cutting doctors’ payments could cause some to flee the system and exacerbate the Medicare doctor shortage (which is quite pronounced in some geographic areas).

Ultimately, fixing the doc fix is a problem we need to tackle, if only to free ourselves from the perennial headache that the legislation has caused. But the fix should be part of a larger package of reforms in which doctors accept changes in the way that health care is paid for and delivered. Effective payment and delivery system reforms would build on the measures already put in place by the Affordable Care Act and improve the quality of care for patients, while lowering the health care growth rate over the long term. For example, bundling payments would ensure that doctors are reimbursed for the quality of services they deliver, rather than the volume and quantity of (often unnecessary and unproven) tests and services they provide.

In a system where one-third of Medicare spending is excessive and unnecessary and over 56 percent of annual spending on health care goes to labor costs, examining how we pay providers for their services should be part of any conversation that takes place around reforming the SGR.

Report: Younger, Less Educated Women More Likely To Undergo Second Trimester Abortions

Despite the plasted pictures of fetuses that are so ubiquitous at anti-abortion protests and literature, nearly 90 percent of all Americans abortions occur in the first tri-mester of pregnancy. The 10 percent who undergo the procedure at 13 weeks gestation or later tend to be “women with lower educational levels, black women and women who have experienced multiple disruptive events in the last year, such as unemployment or separating from a partner,” a new comprehensive survey from the Guttmacher Institute finds. Second-trimester abortions are more expensive, pose greater health risks, and are offered by fewer providers.

The data also demonstrates that conservatives and anti-abortion activists seeking to limit access to the procedure through burdensome regulations of abortion facilities or other restrictions are targeting society’s most vulnerable women and are “all but guaranteed to make these women’s lives more difficult“:

– 14 percent of women undergoing second-trimester abortion were under 30; 9 percent were 30 or older.

– 13 percent of women were African American; 9 percent were non-Hispanic whites.

– 13 percent had not graduated from high school; 6 percent had college degrees.

– 15 percent experienced three or more disruptive events; 9 percent experienced no disruptive events.

The study suggests that less educated women “may have had less knowledge about reproduction and taken longer to recognize they were pregnant” or may have had a harder time tracking down abortion providers during the first trimester or faced difficulties paying for the procedure. Similarly, women who underwent disruptive life events likely faced delays “in recognizing the pregnancy as well as delays in accessing services.” [HT: Irin Carmon]

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