Posts Tagged Massachusetts Connector

The Government We Deserve: Healthcare Edition

So, the battle is joined – the passage of the Senate Finance Bill has forced every healthcare participant whose oxen might be gored into the open, and the fighting is fierce.

I don’t have a dog in the fight from an economic standpoint, unless Washington, D.C. decides to give everyone a full indemnity policy like the New Hampshire state union employees. As a result, I have had a freedom to think and speak in a way that few of my colleagues can.

It took me a while to realize that I would be so alone in this regard. I have been very fortunate to participate for the past five years in two different groups of nationally recognized healthcare executives with very diverse experiences. Several of them are very publicly prominent in the debate, and others are quietly influential. I have hoped that these groups might coalesce, create a blueprint for reform, and lead the way forward. While I am disappointed that has not happened, I am really surprised at how resolutely the group members have retreated to their economic realities or their philosophical ideals. In short, there has been no sustained dialogue with the goal of determining how hospitals, physicians, insurance companies, device manufacturers, pharmaceutical companies and others can create a reformed system. At the same time, I have observed all of us bemoan that “healthcare reform” is really “insurance coverage reform”, and not so impressive at that.

The result is that We, the People, have turned it over to Washington, D.C. In the coming weeks, 535 people who know a lot about politics, a little about the art of compromise, and almost nothing about how approximately 20% of the economy works will decide our future. The 20% of us employed in healthcare have failed to reform ourselves through real and shared sacrifice. The 80% is angry enough not to care that they don’t know the difference between a scalpel and a saw.

In the words of Dandy Don Meredith, some people in healthcare will need to “turn out the lights, the party’s over”. The tricky part is that we won’t know until the very end who that is.

On Wednesday, The Wall Street Journal ran an opinion piece called “Paying the Health Tax in Massachusetts” by an author named Wendy Williams. In it, Ms. Williams lamented that the Commonwealth of Massachusetts changed the definition of acceptable coverage. Her family’s policy no longer meets the requirement, so she must either (a) buy a more expensive policy, which she does not think she needs, or (b) enroll in the government option.

What caught my eye was the following:

Mr. Romney and Sen. Ted Kennedy publicly promised that the middle class – that is, people like us – would not be taxed and that our health-care costs would actually decrease if the plan became law.

My husband and I weren’t convinced. It all seemed inane, but we are neither politically or socially conservative and figured the plan wouldn’t affect us much. Besides, who could be against a plan that covers more people for less money?”

Here in the South, we might respond to that statement by saying, “I’m not sure I would have told that”, but I am afraid the subject is too serious to be that dismissive.

Ms. Williams, in four sentences, has summarized the debate.

First, in order to get elected, politicians have to tell people (us) what we want to hear. Politicians rarely make the call for sacrifice, and today’s America is not interested in that much anyway. Elections for 473 of the 535 positions will be held in 2010. For each of those 473, the calculus over the next 60 days is about how a vote on healthcare reform will play at home between now and November 4, 2010 (Note: “what will get me reelected” is sometimes phrased as “what my constituents want” but rarely as “what does my country need” or “what does courage require”).

Second, We, the People, know better. What is wrong with us? We aren’t that stupid, and we don’t even like Congress. On the other hand, we do seem to like something for nothing. The members of the Greatest Generation have given way to individuals who are more interested in their personal good than the common good. Most of us just listen for what we want to believe and ignore the rest; some of us listen to talk radio and shout at the rest. The Greatest Generation gave way to the Baby Boomers, who seem to be the majority of those in power. The generation of Timothy Leary and “Turn on, tune in, drop out” seems to have taken the “drop out” part to heart, except that Leary’s hope for self-reliance has morphed into singular self-interest.

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It is time for We, the People, to wake up:

  • As we proved spectacularly in Tennessee, you cannot cover more people for less money. No one in Washington, D.C. should know that better than Nancy-Ann Deparle.
  • The results of the Massachusetts experiment are that costs have increased, while quality and access have decreased. These results should be terrifying since Massachusetts had one of the lowest uninsured rates in the nation at the start of the Massachusetts Connector program. Up next, “global payments”, aka capitation – good luck with that at Partners.
  • In The Washington Post, Alec MacGillis reports that maybe the Mayo Clinic is not a model for reform since they restrict access to Medicare and Medicaid patients. As we continue to report, the Mayo Clinic does not deliver high healthcare value.
  • The Senate Finance Bill pretends that physicians will take a 25% cut in pay in 2011 to achieve the $900B cost; it appears that AMA has convinced Senator Reid otherwise.

Sir Winston Churchill famously stated that:
“Democracy is the worst form of government, except for all those other forms that have been tried from time to time.” He also said, “The best argument against democracy is a five-minute conversation with the average voter.” Let’s hope that we do not allow Washington, D.C. to test the former, and let’s see if America can prove Sir Winston wrong on the latter.

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The Trouble with Massachusetts

My mother lives on Martha’s Vineyard.

My wife and I always chuckle to hear her and others islanders refer to Massachusetts as “America”, as if the island has seceded from the Commonwealth and, incidentally, the United States. As I contrast the “reform” plans in Washington with the reality of the Massachusetts Connector from which key parts of the Senate HELP and House Tri-Committee plans are derived, I wonder if all of the residents of the Commonwealth are wondering what “America” is considering.

As outlined in The New York Times article entitled Massachusetts Takes a Step Back From Health Care for All, the Commonwealth has decided that they cannot provide the coverage that they promised. As a result, 30,000 legal immigrants are set to lose their coverage. Coincidentally, The New York Times reports that the Congressional Budget Office estimates House Tri-Committee bill released yesterday will leave only 17,000,000 people uninsured in 2019, of which nearly half would be illegal immigrants. Similarly, both legislators in the House and in Massachusetts believe that a surcharge on the wealthy, aka a tax increase, is the only way to make the math work.

It was not so long ago, even in 2008, when the federal government was in the habit of actually following the laws passed by Congress, such as the United States Bankruptcy Code. In that bygone era, some might have wondered whether the Constitution or the Declaration of Independence might weigh against the “reform” plans fashioned in the House in which a very small minority was hectored into financing benefits for the majority. Others might have pondered whether a National Institute for Health and Clinical Excellence-like program might constitute an unwarranted invasion of privacy, which many hold dear when applied to Roe v. Wade. In today’s world, however, federal judges will not uphold the United States Code in the GM bankruptcy, so I am skeptical that they will do so in healthcare reform.

What to do in response? As any good lawyer knows, when the law favors your side, argue the law; when the facts favor your side, argue the facts. The facts are that this great country was established by immigrants. It is my view that the enduring legacy of America has resulted from and depends upon the diversity and vibrancy that immigrants bring, whether physicians or scientists or engineers or farmers or laborers or artists. To think that the immigrant, and especially the legal immigrant, will bear the brunt of failed healthcare reform is appalling. To think that the Democratic Party will deliver the blow is, I suppose, their version of Nixon going to China.

True healthcare reform will not disadvantage the wealthy, and it will not break the back of the immigrant, who not so long ago were you and me. Shame on all of us if we allow that to happen.

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Current Thoughts of the American Consumer

Ceci Connolly writes about a new Washington Post-ABC News poll in an article entitled “Most Americans Want Health Reform But Fear Its Side Effects”. The most striking quote is the following: “Most respondents are “very concerned” that health-care reform would lead to higher costs, lower quality, fewer choices, a bigger deficit, diminished insurance coverage and more government bureaucracy.”

This is almost exactly what is happening in Massachusetts currently, which is in large part the blueprint for the “Kennedy Bill” being marked up the Senate HELP Committee. Anecdotal evidence suggests that the result of the Massachusetts Connector plan is higher costs, lower quality, and decreased access, and I anticipate that scholarly articles will soon verify this. For more on the cost piece, see Kay Lazar’s article entitled “State cuts its health coverage by $115M” in The Boston Globe.

This outcome is not surprising to anyone who studied the lessons from TennCare – when you add a large group of people to a health plan whose disease status kept them from getting insurance and then offer an already scarce number of providers below market rates to provide services, what do you expect?

Perhaps Washington underestimates the American consumer. Maybe the American consumer is aware that Medicaid benefits are always under pressure when states have a budget crisis. Maybe the American consumer thinks about how long and difficult a process it is to obtain a driver’s license or collect unemployment benefits or complete an income tax return. Maybe the American consumer wryly smiles at the old joke, “I’m from the government, and I’m here to help.”

As I stated on a televised healthcare reform panel last night, it will take a miracle for Congress to re-engineer 20% of the American economy in 4 months and do a good job. Nothing in the history of the United States suggests otherwise.

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