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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.

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]

Inspectors Find Texas ‘Crisis Pregnancy Centers’ Have A History Of Safety And Ethics Violations

A typical ad for a "crisis pregnancy center"

So-called “crisis pregnancy centers” are established by anti-abortion activists with the sole objective of shaming women out of having abortions. Despite receiving federal and state funding, they have a history of preying on and misleading pregnant women who are seeking abortions and giving them false medical information to dissuade them from making their own decisions. Now, a report by the Texas Independent finds that many of these centers have a history of violating state safety and ethics codes as well:

Over the past five years, evaluators have found violations at state-funded subcontractors for Texas’ Alternatives to Abortion Services Program, which reimburses nonprofits — typically faith-based groups — to provide mentoring, counseling and material assistance to pregnant women.

But while those site visits were conducted by a contractor for the state, the Texas Health and Human Services Commission (HHSC) has never conducted a review of its own during the life of the program, according to an HHSC spokeswoman.

Evaluators from the nonprofit Texas Pregnancy Care Network (TPCN), which conducts the site visits, found at least one violation — not counting billing errors — during more than half of their pre-announced site visits to subcontractors, according to documents obtained by the Texas Independent.

Funding for the Alternatives to Abortion Services Program was upped from $4 million per year to $4.15 million, even while the rest of the state budget was slashed, particularly in the areas of family planning and community mental health services.

Official records show violations ranging from fire safety to possible breaches of client privacy to failure to obtain proper public safety checks. During 15 percent of inspections, subcontractors had failed to separate and label spiritual and educational materials properly. About 22 percent of the time, evaluators found that at least one counselor did not have proper public safety clearance. In total, subcontractors were found committing violations 66 percent of the time during 71 initial site visits. The Texas Independent notes that all but one of the state’s 33 subcontractors has overt religious affiliations.

Conservatives states like Texas have poured money into crisis pregnancy centers in recent years even as they slash funding for family planning centers and try to defund Planned Parenthood. Just this year, Texas lawmakers took $70 million from family planning funding to give to these “abortion alternative” centers. Yet despite receiving government money, these clinics are not subjected to regular inspections like abortion clinics and often avoid any scrutiny of their practices, which blur the line between religious advocacy and medical counseling beyond distinction.

Meanwhile, for several months anti-abortion activists in states like Kansas have been using inspections and codes as a tool to shut down the few remaining abortion clinics by claiming they do not meet rigorous licensing requirements. New laws require abortion clinics to be inspected numerous times each year and adhere to codes that are more stringent than even those required for hospitals.

As the Texas Independent has reported, Texas reimburses “abortion alternative” subcontractors at a higher rate for providing “mentoring” than it pays nurses to provide family planning services or master’s-level mental health professionals to provide crisis counseling. Subcontractors are paid $63 per hour for their counselors, who do not require any formal education or certification.

Consumer Advocate Raises Concerns About Exchange Regs, HHS Predicts More States Will Set Up Marketplaces

While the administration’s interim regulations governing the operation of state-based exchanges in the Affordable Care Act received generally positive reviews for their “flexibility,” some consumer advocates argued that the federal government could be doing more to protect consumers. At today’s “Health Insurance Exchange Development” event sponsored by the Bipartisan Policy Center, Stephen Finan, Senior Director of Policy for the American Cancer Society Cancer Action Network, laid out his concerns of where HHS has fallen short:

1) No minimum standards for the governance of the exchange, marketing rules, and network adequacy.

2) The partnership between the states and the federal government could allow states to opt out of establishing critical regulations and leave the federal government in charge of governing essential elements of the new market place.

Watch it:

Indeed, consumer advocates have expressed some disappointment that the rule establishes governing standards that only stipulate that a majority of voting governing board members not have a financial conflict of interest. “Even in a voting minority, insurer representatives may dominate a board. It is also hard to imagine conflict of interest standards that have integrity that would not keep them from voting, even from being present for the discussion of, most of the important issues that exchanges will deal with,” Timothy Jost has pointed out.

Meanwhile, Steve Larsen, Director of the CMS Center for Consumer Information and Insurance Oversight, remained optimistic that the proposed regulations would inspire more states to establish their own exchanges, thus keeping the federal government out of the business of running them. The Affordable Care Act requires the federal government to intervene if the state fails to build an operable exchange.

“I think we anticipate with the release of the most recent regulation that lays out this hybrid partnership model that the level of activity will increase significantly this summer,” Larsen said. “And then in terms of the appetite some states have in moving forward….I have never met a governor that didn’t want to control their own destiny in their state. And I think that as states look more closely at the regulations that we put out and then the next phase that will come, I think you’ll see a lot more activity to build on what’s already going on.”

So far, “virtually every state has made at least some progress toward setting up [the] health insurance marketplaces,” including states like Indiana, Mississippi, and Alabama — which are also challenging the the constitutionality of the health law. In total, 16 states have “passed exchange-related legislation,” 39 states have introduced exchange legislation this year, and “48 states (all except Louisiana and Florida) plus the District of Columbia are engaged in some level of exchange planning.” Only Louisiana has publicly announced that it won’t set up an exchange.”

NEWS FLASH

Iraq And Afghanistan Veterans Health Care Could Cost Up to $55 Billion | Health care for returning veterans from the wars in Iraq and Afghanistan could cost anywhere from $40 to $55 billion dollars over the next 10 years, according to testimony submitted to the Senate Committee on Veteran’s Affairs by the Congressional Budget Office (CBO) today. The CBO noted that health care costs for other veterans tend to be higher because those returning from ongoing conflicts are generally younger and in better health, but that could change as today’s veterans age.
Sean Savett

Economy

Boehner: ‘A Lot’ Of Republicans Want To Force Default, Create ‘Enough Chaos’ To Pass Balanced Budget Amendment

House Speaker John Boehner (R-OH) said today that some members of his own caucus who are refusing to agree to a compromise debt ceiling deal are hoping to unleash “chaos” and thus force the White House and Senate Democrats to make bigger concessions than they’re already offering. As many as 40 House Republicans, especially Tea Party members and freshmen, have demanded nothing short of changing the Constitution to include a balanced budget amendment before they would vote to raise debt ceiling, even though that has zero chance before the U.S. faces potential default on Aug. 2.

Speaking on conservative radio host Laura Ingraham’s show this morning, Boehner agreed that failing to raise the limit before the deadline would be devastating, and said the “chaos” plan won’t work when asked by Ingraham what’s motivating the recalcitrant Republicans:

BOEHNER: Well, first they want more. And my goodness, I want more too. And secondly, a lot of them believe that if we get past August the second and we have enough chaos, we could force the Senate and the White House to accept a balanced budget amendment. I’m not sure that that — I don’t think that that strategy works. Because I think the closer we get to August the second, frankly, the less leverage we have vis a vis our colleagues in the Senate and the White House.

Listen here:

Boehner offers only political calculus for why this Tea Party plan wouldn’t work. He completely ignores the devastating effect a downgrade in U.S. debt and potential default would have on the American people and the global economy, who happen to be innocent bystanders to this high-stakes hostage negotiation.

Many on the left have been arguing all along that some Republicans are more interested in extorting concessions than addressing the debt issue, and are willing to blow up the economy if they don’t get their way — it’s refreshing, if troubling, to see that their leader agrees.

NEWS FLASH

Report: ACA Presents Opportunity To Improve Rural Health Care Services | With the implementation of the new federal health care law, rural health systems will need to search for innovative models in order to accommodate the 5 million rural Americans expected to join Medicaid and other insurance plans, according to a new report from the UnitedHealth Center for Health Reform & Modernization. Rural residents already face a greater proportion of health problems and greater difficulty in accessing quality care than do their urban counterparts; 5 million live in counties labeled as health care “shortage areas.” The Affordable Care Act will provide “times of considerable stress on rural health care, but also times of great opportunity,” UnitedHeath Center chair Simon Stevens said. The center report recommends a variety of initiatives for rural areas going forward, including mobile health clinics, more active roles for nurse practitioners and increased collaboration between rural and urban health care systems. –Sarah Bufkin

Report: Obama And Boehner Agreed To Raise Medicare Eligibilty Age Before Debt Talks Broke Down

In what may be one of the most under-reported stories of the debt ceiling talks, Politico’s Jen Haberkorn notes that before negotiations broke down on Friday evening, President Obama and Speaker of the House John Boehner tentatively agreed to gradually raise the Medicare eligibility age as part of a “grand bargain” to increase the nation’s borrowing limit:

Details of the plan were not yet finalized before the Obama-Boehner talks collapsed on Friday. But in general, the agreement called for very gradually increasing the eligibility age from 65 to 67 over about two decades, according to administration and Republican congressional sources.

One pathway would call for increasing the age by one month per year beginning in 2017 until it reached 66 in 2029. In 2030, it would increase two months per year until it hit 67.

The administration’s willingness to entertain the idea may have given “a controversial idea more legitimacy and high-profile support than it’s ever gotten before,” Haberkorn observes, and it is likely to rile progressives who question the wisdom of the compromise.

Jacob Hacker, political science professor at Yale University, has called the scheme “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.” Worse still, some seniors between the ages of 65 and 67 could “end up uninsured,” the Center on Budget And Policy Priorities’ Edwin Park predicted. Individuals “with incomes too high for premium subsidies in the exchange and those who qualify for only modest subsidies” could be priced out of affordable coverage, he warned.

According to the Kaiser Family Foundation, raising the eligibility age to 67 would cause an estimated net increase of $5.6 billion in out-of-pocket health insurance costs for beneficiaries who would have been otherwise covered by Medicare. Seniors in Medicare Part B would also face a 3 percent premium increase, the study found, since younger and healthier enrollees would be routed out of Medicare and into private insurance. Beneficiaries in health care reform’s exchanges would see a similar spike in premiums with the addition of the older population.

Federal cost savings, meanwhile, would be slim. The Congressional Budget Office studied the proposal when it was part of the House GOP’s budget plan and found it “would have little effect on the trajectory of Medicare’s long-term spending…because younger beneficiaries are healthier and thus less costly than the program’s average beneficiary.”

Economy

FLASHBACK: In February, Geithner Rightly Warned Against Negotiating Over Raising The Debt Ceiling

For months, Republicans have refused to budge when it comes to negotiations over raising the nation’s debt ceiling, rejecting various generous concessions in return for a simple vote to ensure that the country pays its bills. Now, with default only days away, Republicans have dug in, insisting that acceptance of their radical “cut, cap, and balance” plan is the only way forward.

The Obama administration and the Democrats have offered the GOP deal after deal, saying that they are willing to cut everything from Social Security to Medicare in order to secure a debt ceiling increase, even though the debt ceiling is typically raised as a matter of protocol without controversy. But Republicans, sensing that they could wring more concessions from the Democrats and eager to placate their Tea Party base, have refused to say “yes.”

As the Los Angeles Times details, the administration was well aware that negotiating over the debt ceiling could lead to an ugly place. In fact, back in February, Treasury Secretary Tim Geithner explicitly warned against engaging in negotiations over the debt ceiling at all, because “if you let people negotiate over the terms, the risk is you leave people with expectations you can’t meet”:

For months, the administration’s position seemed to be that the debt limit should be raised with no conditions. In Washington-speak, that’s known as a “clean” increase.

In February, Geithner spoke at a House Budget Committee hearing and said, “You know, this is not a popular thing for people to do, and if you let people negotiate over the terms, the risk is you leave people with expectations you can’t meet. And it is just that that suggestion leads us to suggest you should do it clean.”

But two months later, Obama told a reporter that lifting the debt ceiling was “not going to happen without some spending cuts.” Later in the month, White House Chief of Staff William Daley said something similar: “Nobody thinks there will be a clean debt ceiling extension vote. There probably shouldn’t be, without some changes in spending. The budget deficit is a real thing that has to be addressed.”

Rep. Peter Welch (D-VT), who introduced a clean debt ceiling increase, “said he got a phone call from Geithner commending him for pushing for an increase in the debt ceiling not tied to anything else.” According to reports, Geithner’s preferred strategic approach was ultimately rejected by others in the administration because it was deemed to be a course that couldn’t muster the votes. (Ironically, the preferred approach adopted by the administration also wasn’t able to generate support.)

Now, a clean debt ceiling increase seems to be inexplicably off the table, even though the leadership of both parties agree that the debt ceiling needs to go up if the nation is to avert an unprecedented and potentially catastrophic economic mess. Because default truly would be disastrous, and because a negotiated compromise seems increasingly out of reach within the Aug. 2 deadline, a clean vote for an increase would be the responsible course at this late hour.

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NEWS FLASH

Republican Judge Upholds Stem Cell Funding | Judge Royce Lamberth, who previously suspended all federal funding of embryonic stem cell research, reversed course and dismissed a lawsuit by religiously conservative scientists seeking to end this funding. Lamberth’s decision comes after a very conservative appeals court panel reversed a preliminary decision by Lamberth ruling in favor of the scientists, while also leaving open the possibility that Lamberth could suspend the research again on different legal grounds. Today’s decision rejected all of the plaintiffs’ remaining arguments.

NEWS FLASH

Why Male Birth Control Won’t Catch On | Amanda Marcotte explains: “Men don’t use contraception because women are already on it. It’s the same principle in play as toilet-cleaning. I’m sure many men in heterosexual relationships imagine themselves to be the kind of people who would totally clean a toilet. But since the toilet miraculously is cleaned before they can get to it, their noble intentions are rarely tested in the real world. For men to go on the pill in large numbers, large numbers of women would have to collectively start refusing to use contraception, and that’s about as likely to happen as the pay gap closing up tomorrow.” She also points out that “vasectomies are safer, less invasive, and quicker to heal from than tubal ligations, but the rate of female sterilization in the U.S. is twice the rate of vasectomy.”

Another House Committee To Consider Global Gag Rule, Defunding U.N. Programs To Improve Women’s Health

Earlier this month, the House Foreign Affairs Committee passed an amendment that 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, was approved in a vote of 25-17.

Now, the measure is popping up elsewhere in the House. The Hill is reporting that the House Appropriations Committee will hold a mark-up today on a draft of the 2012 State Department spending bill that also includes the policy as well as other restrictions that would undermine women’s health:

The bill also contains a number of riders directed at the practice of abortion. It reinstates the so-called Mexico City Policy, which opponents call the “global gag rule,” that prohibits U.S. assistance to foreign nongovernmental organizations that “promote” or perform abortion.

The bill also prohibits funding for the U.N. Population Fund, as well as needle-exchange programs.

“It is unacceptable that the majority proposes to reinstate the Global Gag Rule, which prohibits recipients of U.S. health assistance from providing the most truthful and comprehensive healthcare possible to women in need,” subcommittee ranking member Nita Lowey (D-N.Y.) said in reaction.

Conservatives will argue that they are protecting tax payer dollars from being spent on abortion, but in reality, the gag rule and any additional cuts to programs that seek to improve women’s reproductive health would deny NGOs access to the very contraceptives that can help prevent the need for abortions in the first place and undermine efforts to fight the spread of sexually transmitted diseases, including HIV/AIDS.

Ultimately, women’s lives are put at risk. As CAP’s Peter Juul pointed out in a recent column, women with limited options are “forced to seek out abortion providers that may lack necessary medical skills or an environment that conforms to minimal medical standards. These unsafe abortions constitute 48 percent of all abortions, leading to the hospitalization of 5 million women due to complications and the deaths of 47,000 more every year.

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Former Sen. Bob Bennett: Individual Mandate Was The ‘Conservative Approach’ To Health Policy 20 Years Ago

This morning, former Utah Sen. Bob Bennett (R) reminded a meeting of the Bipartisan Policy Center that conservatives supported the individual health insurance mandate during the 1990s, a policy they now condemn as unconstitutional. He said that he still supports the provision — now part of the Affordable Care Act — and noted that the only way the country can continue to provide care to those who can’t afford it is “to have an individual mandate so that everyone who can and everyone who can afford it, is required to have his or her own health insurance. ”

While in the Senate, Bennett sponsored the bipartisan Wyden-Bennett health care bill, which sought to expand coverage by requiring everyone to purchase health care coverage:

BENNETT: I first got involved in it when Mrs. Clinton was the first lady and started putting forth some ideas. And at that time, the conservative approach, to which I gravitated quite naturally, was to have an individual mandate. Now, I am condemned for supporting the individual mandate. I still do, because if you are going to take the position that we do in this country that if someone is ill, we will take care of them regardless of their ability to pay. If someone shows up in the ER bleeding we don’t say, ‘if you don’t show me an insurance card we are going to throw you out in the snow and let you bleed to death.’

Watch it:

Sens. Lindsey Graham, Mike Crapo, Chuck Grassley, Orrin Hatch, and Lamar Alexander also supported the health care bill.

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NEWS FLASH

CBO: Reid Debt Ceiling Plan Cuts $2.2 Trillion | Last night, the Congressional Budget Office reported that Speaker of the House John Boehner’s (R-OH) debt ceiling plan would cut $850 billion from the federal budget over ten years, less than the $1.2 trillion that Republican leaders had been claiming. This morning, the CBO released its analysis of Senate Majority Leader Harry Reid’s (D-NV) debt ceiling plan, and found that it cuts $2.2 trillion (including about $1 trillion in savings from winding down the Iraq and Afghanistan wars). House Republicans canceled a vote on the Boehner plan today, and are rewriting it to find additional cuts.

Morning CheckUp: July 27, 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?

Boehner falls short, promises to re-write plan: “House Republicans delayed a vote on Boehner’s bill, which had been set for Wednesday, after congressional budget analysts dealt the legislation a potentially devastating setback by saying it would save far less over the next decade than the $1.2 trillion advertised. The Congressional Budget Office projected that the spending cuts would save only about $850 billion over that period.” Boehner will re-write the bill and bring it up Thursday. [Washington Post]

Victim of his own success: Measured against March 2011 government expenditure levels, which Republicans lowered by cutting some $250 billion earlier in the year, the Boehner proposal, as currently written, “would reduce the deficit by $850 billion during the next decade, according to the CBO. Measured against January 2011 government spending levels, the bill would reduce budget deficits by roughly $1.1 trillion during that same time period.” [Sam Stein]

Plan relied on provisions the CBO doesn’t score: “House Speaker John Boehner’s debt ceiling proposal would reduce the deficit by $851 billion over 10 years, but the $15.7 billion that would be saved by strengthening program integrity efforts in Social Security, Disability, Medicaid, Medicare and CHIP would not count toward that total due to a scorekeeping rule enacted under the 1997 Balanced Budget Act.” [Inside Health Policy]

Docs are asking for SGR to be part of the deal: “The AMA is circulating a forcefully worded letter to the White House and congressional lawmakers, co-signed by 112 state and local medical organizations, urging them to end the “budget gimmicks” and include a permanent SGR fix in a deal that would both raise the nation’s borrowing limit and avert “draconian” payment cuts to doctors.” [Inside Health Policy]

Abortion rate down in Minnesota: “There were 11,505 abortions in the state during 2010 – a decline of 7 percent from the 12,388 abortions performed during 2009, according to a report released today by the Minnesota Department of Health. It was the fourth consecutive decline in annual totals since the recent peak of 14,065 abortions in 2006.” [Pionees Press]

Injunction against SD abortion law to remain in effect: South Dakota won’t appeal an injunction that stops the state’s 72-hour waiting period law from taking effect, Attorney General Marty Jackley said Tuesday. Jackley’s office said letting the injunction stand as the case moves through federal court will save the state money in the long run. [Argus Leader]

North Carolina House overrides governor’s veto of anti-abortion law: “The North Carolina House of Representatives narrowly overrode a veto on Tuesday of a bill requiring women to wait 24 hours before getting an abortion and be presented with a ultrasound of the fetus.” The bill now moves to the state Senate…Should the Senate also override Perdue’s veto, the bill would become law 90 days after that vote.” [Reuters]

10 hospitals are suing New Hampshire over low Medicaid rates: “Ten hospitals sued New Hampshire in federal court Monday over the state’s payments to them for caring for Medicaid patients,” claiming the state is “violating the federal Medicaid Act by providing insufficient payment to them and their doctors to treat Medicaid patients.” [AP]

Congress asked to stay out of NIH: “A coalition of researchers and other stakeholders wrote to appropriators Tuesday urging them to continue funding scientific research at the National Institutes of Health (NIH) and leave politics out of the review process.” [Julian Pecquet]

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NEWS FLASH

McDonald’s Announces 20 Percent Calorie Decrease In Happy Meals | McDonald’s says it initially experimented with eliminating French Fries from Happy Meals but faced a rebellion from children and parents. And so instead, responding to pressure from health groups, the company has pledged to “add a serving of fruit or vegetable to all of the meals” and shrink the portion of fries. The new meals will represent, on average, “a 20 percent decrease in calories,” the chain estimates. First Lady Michelle Obama, who has prioritized reducing childhood obesity, praised the decision: “I’ve always said that everyone has a role to play in making America healthier, and these are positive steps toward the goal of solving the problem of childhood obesity.”

NEWS FLASH

20: Number Of States That Made Health Cuts In 2012 Budgets | A new Center on Budget and Policy Priorities (CBPP) report finds that at least “20 states have made deep, identifiable cuts in health care that will reduce access to care for low-income children, seniors, families and people with disabilities.” According to the report, “Arizona has frozen enrollment in part of its Medicaid program, so that an estimated 100,000 low-income people who previously would have qualified will not be able to enter the program, and another 150,000 will face more stringent rules for retaining eligibility. Washington has frozen enrollment for a state-run health plan serving 60,000 low-income residents, which is expected to reduce the number of participants by 3,000 each year.”

Yglesias

Health Care Rules Everything Around Me

Yuval Levin and I disagree about a lot, but the truth contained in this chart is a profound one:

All the negotiations about this and that aside, over the long-term, budget policy is about health care policy. We need to choose some combination of the following options:

— 1. Higher taxes.
— 2. Systematic change to the cost structure of American health care.
— 3. Abandonment of the government’s commitment to provide health care to the poor and the elderly.

Government-provided health insurance is obviously more expensive to the government than is simple failure to provide it. But I think the fact that the government has a substantial cost advantage over the private sector when it comes to the provision of health insurance is a good reason to shy away from option (3). We ought to seek to improve the systematic cost-efficiency of the health care system, and then we ought to pay in higher taxes what it costs to provide what that gets us.

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