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How Are Medicare Rates Established?

On Tuesday, during an interview with AHIP’s Robert Zirkelbach, David Shuster suggested that private insurers opposed the public health insurance option because “the for profit insurance companies are terrified that if there is a public option that competes with what you do, people are going to leave the insurance companies and go to the government plan and people are going to lose profits.”

Without contesting Shuster’s characterization, Zirkelbach argued that a public option would underpay medical providers and put some doctors and hospitals out of business. “The way a government plan would save money,” Zirkelback explained, “is that they would simply dictate the prices that they pay for services. Right now, Medicare only reimburses hospitals about 85% of their cost. It’s employees and families that are paying $1500 a year to subsidize the Medicare program. ”

Watch it:

Most insurers, however, tee their payment rates for physicians off Medicare reimbursement rates. Medicare’s physician fee rates are based on the relative cost of providing services determined something called the Resource-Based Relative Value Scale (RBRVS). A panel of medical doctors, through the American Medical Association, updates the relative work values every five years based on: the time it takes to perform the service, the technical skill and physical effort, the required mental effort and judgment, stress due to the potential risk to the patient, malpractice rates in the area, and other geographic adjustments to reflect cost variation before coming up with a number. The process is also open to public comment and private health insurers — along with anyone else — have an opportunity to weigh in on the process and the rates

Zirkelbach’s explanation for why a new public option (which would pay Medicare-like rates) would shift costs to Americans with private insurance is similarly disingenuous. He assumes that private plans are always right in setting reimbursement rates. According to MedPAC, however, Medicare rates are adequate and consistent with the efficient delivery of services. In fact, over-payments by private insurers to health-care providers drives up overall costs. “Hospitals which didn’t rely on high payment rates from private insurers ‘are able, in fact, to control their costs and reduce their costs when they need to’ and ‘combine low costs with quality.’

Transcript: Read more

Politics

Boehner Claims ‘No One Condones’ Town Hall Disruptions After He And Other GOPers Cheered Them On

Rep. John Boehner (R-OH) pumps his fist.In a USA Today op-ed, House Minority Leader John Boehner (R-OH) claims that “Americans are increasingly angry” about Democratic health care reform proposals and that “the backlash isn’t fabricated.” Distorting and mocking House Speaker Nancy Pelosi (D-CA) and House Majority Leader Steny Hoyer’s (D-MD) claim that “drowning out opposing views is simply un-American,” Boehner asserts that “no one condones” the disruptions that have occurred at town halls across America:

The backlash isn’t fabricated, and those expressing vocal opposition are not “un-American,” as Speaker Pelosi and House Majority Leader Steny Hoyer suggested on this page Monday. To the contrary, it is real, and it exists for a single, simple reason: The more the American people learn about the Democrats’ health care bill, the less they like it.

No one condones the actions of those who disrupt public events. Every citizen should have the opportunity to express his or her views in an orderly and respectful way. But those in Washington who dismiss the frustration of the American people and call it “manufactured” do so at their own peril.

Boehner’s claim that “no one condones” the disruptions is laughable considering his office sent out a “GOP Leader Alert” last week promoting the disruptions at Democratic townhalls. In fact, the “Alert” approvingly quoted an Investor’s Business Daily editorial, claiming that “Rep. Lloyd Doggett, a Democrat from Texas, deserved the hostile reception given him at a town hall meeting in Austin.”

Boehner’s not the only GOP leader to cheer on the disruptive protesters. The NRCC sent out an e-mail celebrating “Recess Roasting.” At a “Freedom Conference” meeting last week, Rep. Todd Akin (R-MO) mentioned that some Democratic lawmakers were almost “lynched” by angry protesters. After the crowd applauded, he added, “with very good reason they” — the protesters — “were upset.”

As Media Matters notes, Boehner’s op-ed is rife with other distortions of the facts, such as his claim that a Health Benefits Advisory Committee would lead to “rationing” because it would determine what “can be covered.” In fact, the provision cited by Boehner merely sets the minimum requirements for what “treatments, items and services” must be covered.

Yglesias

British Growing Tired of GOP Lies About UK Health Care

It’s too bad that repeated, endless, flagrant dishonesty doesn’t do much of anything to damage a politician’s ability to be taken seriously as a sober-minded centrist deal-maker, or Chuck Grassley would be in a world of pain:

Sen. Edward M. Kennedy would be refused treatment for his brain tumor in England — at least according to one of the allegations lobbed at Britain’s state-funded health-care service recently by critics of President Obama’s proposed health-care reforms. Such claims have irked British health officials, who say they are misleading, exaggerated and sometimes just plain wrong. [...]

One of the most surprising of these was the rumor — given an airing by Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) — that Kennedy, 77, would not receive treatment for his brain tumor if he were in England because he is too old.

“That’s just wrong,” a British Health Department spokesman said. “The NHS in England provides health services on the basis of clinical need, irrespective of age or ability to pay.”

Note that there’s actually a two-fold lie here. First Grassley falsely implies that congressional Democrats are proposing to create an NHS-like system. Second, he lies about how the NHS operates. And he pays no price for it. He’ll still be Max Baucus‘s key partner in crafting health care legislation.

Politics

For ‘Death Panels’ Before She Was Against Them? Palin Endorsed End Of Life Counseling As Governor

In recent weeks, right-wing groups have been pushing the myth that health care reform will somehow kill seniors. One of the most high profile voices pushing this lie has been Sarah Palin, who claimed President Obama will institute bureaucratic “death panels.” Today, again on her Facebook page, she continued the attack. Though some Republicans have rebuffed this absurd, inaccurate notion — like Johnny Isakson (R-GA), who called such talk “nuts” — others, like Newt Gingrich, have piled on to agree with Palin.

However, on April 16th 2008, then Gov. Sarah Palin endorsed some of the same end of life counseling she now decries as a form of euthanasia. In a proclamation announcing “Healthcare Decisions Day,” Palin urged public facilities to provide better information about advance directives, and made it clear that it is critical for seniors to be informed of such options:

WHEREAS, Healthcare Decisions Day is designed to raise public awareness of the need to plan ahead for healthcare decisions, related to end of life care and medical decision-making whenever patients are unable to speak for themselves and to encourage the specific use of advance directives to communicate these important healthcare decisions. [...]

WHEREAS, one of the principal goals of Healthcare Decisions Day is to encourage hospitals, nursing homes, assisted living facilities, continuing care retirement communities, and hospices to participate in a statewide effort to provide clear and consistent information to the public about advance directives, as well as to encourage medical professionals and lawyers to volunteer their time and efforts to improve public knowledge and increase the number of Alaska’s citizens with advance directives.

WHEREAS, the Foundation for End of Life Care in Juneau, Alaska, and other organizations throughout the United States have endorsed this event and are committed to educating the public about the importance of discussing healthcare choices and executing advance directives.

Though this proclamation is now deleted from the Alaska governor’s website, it shows that Palin’s current fear-mongering is purely political. Palin is not the only conservative leader completely flip-flopping on this issue. Merely months ago, Gingrich too endorsed end of life counseling. At a conference in April of this year, Gingrich said advance directives can “save money” while also helping to “decrease the stress felt by caregivers.”

Climate Progress

NASA: Second hottest July on record

Fast on the heels of the second hottest June on record, NASA’s Goddard Institute for Space Studies reports that July is also the second hottest on record.

NASA just quietly updates its data set (here).  NASS GISS is much more low-key than NOAA’s National Climatic Data Center, which issues a major report on the climate every month (see NCDC: Second hottest June on record “” and once El Nino really kicks in, expect global temperatures “to threaten previous record highs”).  I’ll wait for that report (out in a few days) for a longer discussion of July.

What I think is interesting about the NASA month-by-month data is that you can compare it to El Ni±o-Southern Oscillation (ENSO) data and see that it typically takes 3 to 6 months before an El Ni±o seriously starts warming up the whole planet (see page 24 here).  So we have a ways to go before we see the full effect of this El Ni±o.

Still it’s interesting that the NCDC reported that the ocean temperature in June was the warmest on record — a full 0.11°F warmer than the 2005 record.  This certainly looks to be the new El Ni±o on top of the long-term warming trend.  If indeed this is a moderate to strong El Ni±o, then it looks like we will be seeing record global temperatures this year or next, as NASA predicted back in January (see here).

Related Post:  Must-read NOAA paper smacks down the deniers: Q: “Is there any question that surface temperatures in the United States have been rising rapidly during the last 50 years?” A: “None at all.”

Economy

GM Shows Off Their New 230mpg Chevy Volt

Our guest blogger is Kate Tecku, Energy Policy Intern at the Center for American Progress

On Tuesday, after weeks of buzz from a viral media blitz, GM finally answered its own marketing spin, “What is 230?” Apparently, the new Chevrolet Volt – set to hit show room floors in 2010 – will achieve an astounding city fuel economy of 230 miles per gallon.

GM Chief Executive Officer Fritz Henderson exclaimed in a press release on Tuesday that the Volt is sure to be a “game changer.” He went on to note that “based on the results of unofficial development testing of pre-production prototypes, the Volt has achieved 40 miles of electric-only, petroleum-free driving.” This, taken in conjunction with the Department of Transportation’s findings that nearly 8 in 10 Americans drive less than 40 miles per day, means that “many Chevy Volt drivers may be able to be in pure electric mode on a daily basis without having to use any gas” – unlike other hybrids such as the Toyota Prius.

The Volt, however, could cost about $40,000, putting it out of reach of many middle income consumers. GM believes that government incentives and battery warranties can make this new PHEV model an appealing option to climate- and cost-conscious consumers, despite the Volt’s high production costs. Prime among these government measures is a $7,500 consumer rebate in the 2009 stimulus package for purchasing qualifying electric plug-in vehicles such as the Volt. The Volt will become more economically attractive when oil and gasoline prices rise during the worldwide economic recovery. In contrast to their conservative predictions in 2008, the Energy Information Agency now expects oil prices to increase to $110 a barrel by 2015.

Critics say the 230 mpg claim for GM’s new plug-in is misleading – and even if it does live up to the hype, the Volt’s fuel range will pale in comparison to Nissan’s new plug-in model, the Leaf, due out in 2012. In a show of industry competition for most fuel economy supremacy, Nissan’s EV Twitter feed posted this yesterday: “Nissan Leaf = 367 mpg, no tailpipe, and no gas required. Oh yeah, and it’ll be affordable too.” Read more

Yglesias

The Fruits of Compromise

The typical “blogger” thing to do is criticize Democrats for being too willing to compromise on substance without tangible gains, but this looks like tangible gains to me:

A new coalition this morning is launching $12 million in TV ads to support President Obama’s health-reform plan, in the opening wave of a planned tens of millions of dollars this fall. The new group, funded largely by PhRMA, is called Americans for Stable Quality Care. It includes some odd bedfellows: the American Medical Association, FamiliesUSA, the Federation of American Hospitals, PhRMA and SEIU. [...]

The group’s campaign is likely to mean that White House supporters keep the upper hand on the airwaves. PhRMA’s participation is key, because the group has promised to kick in as much as $150 million for advertising and grass-roots activity to help pass the president’s plan. But the new group could provoke complaints from the left. The debut ad is mean to shore up support among the conservative House Blue Dog Democrats, and to target swing senators. So it’s airing in Alaska, Arkansas, Colorado, Indiana, Louisiana, Maine, Montana, Nebraska, Nevada, North Dakota, South Dakota and Virginia. The first buy is expected to run for two weeks, with a weekly spend of around $3 million.

The fact of the matter is that the country is likely to pay a price for moving in the direction of health reform that gets buy-in from these kind of interest groups. But that’s a price relative to a theoretical universe in which it’s possible to pass a better plan with PhRMA spending hundreds of millions in negative ads rather than kicking in money to help finance pro-reform ads. In the real world of politics, this looks to me like dealmaking that’s paying off.

Politics

Fox’s Cameron: Grassley is ‘taking credit for all these town halls.’

On Tuesday, the AP noted that loud protests at town halls have “dominated coverage” of the health care debate during the congressional recess thus far. On Fox News yesterday, Carl Cameron, who was covering Sen. Chuck Grassley’s town halls, reported that the Iowa Republican was “taking credit” for “the August vacation town halls that we’re now in the midst of”:

SMITH: But Grassley’s sort of taking credit for all these town halls, right?

CAMERON: Yeah, that’s right. Well, he’s the top Republican on the Senate Finance Committee, the one of five committees yet to pass a bill. And he says all of the delay caused by his collaboration and willingness to negotiate slowed this process and there by created the August vacation town halls that we’re now in the midst of. The idea being all of the voices of dissent wouldn’t have been heard had he not been part of the negotiating process.

Watch it:

Yglesias

The Limited Powers of the Presidency

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I think Ezra Klein nails this:

As Dan says, we’ve not yet seen Obama’s negotiating style come into focus. But we will soon. That said, I don’t know how many times a president has to fail to solve this problem before we admit that it’s not a matter of presidential messaging, or toughness, or will, or strategy. FDR, Truman, Nixon, Carter and Clinton all took runs at this prize. All of them failed. And Lyndon Johnson went for Medicare and Medicaid because he was daunted by the challenge of comprehensive health-care reform.

That’s right. I know a lot of people on the left who seem to have voted for Barack Obama because they liked his progressive agenda, then gotten excited when Obama won the election because they liked his progressive agenda, then Obama proposed progressive measures to the congress and they were excited, then it turned out that key congressional players like Collin Peterson and Rick Boucher and Max Baucus were less left-wing than Obama so actually legislative outcomes would be considerably less left-wing than Obama’s campaign proposal. It’s all well and good to be disappointed with this situation but it doesn’t make a ton of sense to me to do what a lot of people seem to be doing and becoming disappointed with Obama.

I recall back during the primary campaign that there was a kind of misguided sentiment out there that the key factor influencing whether or not we could get comprehensive health reform or good energy legislation in 2009 was whether you believed Obama’s story about “bringing people together” or John Edwards’ story about “fighting” or Hillary Clinton’s story about gritty experience and determination. The fact of the matter, though, is that legislating is about who controls the veto points. The difference between a conservative president whose ideas are checked by the 40th most liberal senator (Mark Warner or Mark Begich, it seems) and a progressive president whose ideas are checked by the 60th most liberal senator (Ben Nelson or Olympia Snowe) is pretty enormous. But when comparing two different possible progressive presidents, the fact remains that the veto points are going to be where they’re going to be. On foreign policy and some other matters the president has tons of discretion and it’s a different story. But big-picture domestic legislation in the modern era is controlled by congress.

Climate Progress

China signals long-term plans to curb GHGs, Cabinet report finds “The large amount of greenhouse gases emitted through human activities is the main reason for global warming leading to extreme weather events”

Photo

This Reuters story is a good follow up to last week’s CP post, “China softens climate rhetoric, commits to emissions peak (again), shows flexibility on Western reductions“:

China signals long-term plans to curb greenhouse gases

China will make “controlling greenhouse gas emissions” an important part of its development plans, the government said, as pressure on the world’s top emitter grows ahead of global talks on tackling climate change.

The broad intentions set down in a report from a cabinet meeting on Wednesday were made public as Beijing proceeds with negotiations seeking a new global pact to fight climate change.

The meeting, chaired by Premier Wen Jiabao, bluntly said global warming threatened China’s environmental and economic health, newspapers reported on Thursday.

Warning of worsening droughts and floods and melting glaciers, the meeting stressed the “urgency” of tackling climate change and called for domestic objectives to control greenhouse emissions, though it made no mention of emissions cuts.

“Make objectives for controlling greenhouse gas emissions and adapting to climate change an important basis for setting the medium and long-term development strategies and plans of government at every level,” the Xinhua news agency said in a summary of the cabinet meeting….

China’s climate change ambassador, Yu Qingtai, said recently that his country wanted to see output of carbon dioxide peak as soon as possible, a shift away from China’s right to pollute as it develops.

The cabinet warned baldly of dire consequences from warming.

The large amount of greenhouse gases emitted through human activities is the main reason for global warming leading to extreme weather events,” the report on the meeting said. This, it said, was also “threatening the security of water supplies.”

And this Bloomberg story is a good follow up to “China begins transition to a clean-energy economy“:

Beijing to Triple Use of Renewable Energy by 2010

Read more

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