A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D.,...
-
Upload
francis-watkins -
Category
Documents
-
view
212 -
download
0
Transcript of A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D.,...
![Page 1: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/1.jpg)
A Bird’s Eye View of the Patient Protection
and Affordable Care Act (PPACA)
Claudia Chaufan, M.D., PhD
Physicians for a National Health Program-California
![Page 2: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/2.jpg)
Outline
• 1) Measuring “goodness” in health care
• 2) US health care through March 23, 2010
• 3) US health care after March 23, 2010
![Page 3: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/3.jpg)
Question
• 1) Who knows people who do not have health insurance and cannot financially afford their medical needs?
• 2) Who knows people who have health insurance and cannot financially afford their medical needs?
![Page 4: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/4.jpg)
In the U.S., health insurance without health care
not exception but norm
www.pnhpcalifornia.org
![Page 5: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/5.jpg)
U.S. world leader in…Medical Bankruptcies!
• In 2007, 62% of personal bankruptcies were medical
• Increase of ~50% from 2001
• Most debtors well educated, homeowners, middle class occupation
• 75% had health insurance at time of filing
The American Journal of Medicine, 2009
![Page 6: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/6.jpg)
How do we assess “goodness” in health care systems?
• Overall attainment– Health measures (e.g. life expectancy, infant
and maternal mortality)– Financial fairness (e.g. whether people go
broke when they actually need care)
• Overall performance– How much you do with the money you spend
The World Health Report, World Health Organization, 2000
![Page 7: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/7.jpg)
Quick overview of US health care (circa March 2010)
www.pnhpcalifornia.org
![Page 8: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/8.jpg)
Poor qualityLowest life expectancy
www.pnhpcalifornia.org
![Page 9: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/9.jpg)
Poor qualityHighest rates of infant mortality
www.pnhpcalifornia.org
![Page 10: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/10.jpg)
Poor qualityHighest rates of maternal mortality
www.pnhpcalifornia.org
![Page 11: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/11.jpg)
Poor qualityWorst mortality treatable causes
www.pnhpcalifornia.org
![Page 12: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/12.jpg)
Huge financial barriers (lousy access)
www.pnhpcalifornia.org
![Page 13: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/13.jpg)
U.S. world leader in…Medical Bankruptcies!
• In 2007, 62% of personal bankruptcies were medical
• Increase of ~50% from 2001• Most debtors well educated, homeowners,
middle class occupation• 75% had health insurance at time of
filing
The American Journal of Medicine, 2009
![Page 14: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/14.jpg)
Decline in employer-sponsored health coverage accelerated three times as fast in 2009, Elise Gould, September 16, 2010http://www.epi.org/publications/entry/decline_in_employer-sponsored_health_coverage_accelerated
Erosion of employer-sponsored commercial insurance
![Page 15: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/15.jpg)
Most expensive
www.pnhpcalifornia.org
![Page 16: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/16.jpg)
Mediocre Performance
Note: U.S. Just above Slovenia and below Costa Rica
![Page 17: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/17.jpg)
Summing up
• Lousy quality (poor health indices)
• Very unfair (54th in easing financial access)
• Most expensive (1st in the world!)
• Poor performance (37th bang for buck)
World Health Organization, 2000
![Page 18: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/18.jpg)
Patient Protection and Affordable Care Act, March 23 2010
• WASHINGTON — With the strokes of 22 pens, President Obama signed his landmark health care overhaul — the most expansive social legislation enacted in decades — into law on Tuesday, saying it enshrines “the core principle that everybody should have some basic security when it comes to their health care.” New York Times
www.pnhpcalifornia.org
![Page 19: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/19.jpg)
Promise
1. Patients will be protected (from the financial burden of health care)
2. Health care will be affordable (for federal government and individual patients)
www.pnhpcalifornia.org
![Page 20: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/20.jpg)
Major strategies
1. Expand coverage: MEDICAID + SUBSIDIES TO PURCHASE COMMERCIAL INSURANCE
2. Contain costs: EXCHANGES, ELECTRONIC MEDICAL RECORDS, PAY 4 PERFORMANCE, FRAUD AND ABUSE, ETC.
3. Guaranteed issue: NO PRE-EXISTING CONDITIONS
4. Mandate coverage: EVERY NEEDS TO CARRY INSURANCE TO SPREAD RISK
www.pnhpcalifornia.org
![Page 21: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/21.jpg)
Promises & Realities of PPACA
www.pnhpcalifornia.org
![Page 22: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/22.jpg)
Promise-reality 1• Promise:
– “32 million will gain health coverage”
• Reality:– “Gain” obligation to buy commercial insurance under
penalty of a fine (~ driver’s insurance).
– Medicaid (Medical) expansions: “poor people’s programs”, underfunded, politically unpopular, threatened by budget cuts, losing health providers to low reimbursement rates
www.pnhpcalifornia.org
![Page 23: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/23.jpg)
Gain coverage through Medicaid?
Senate Panel OKs Medi-Cal Cost Increases, Reimbursement Cuts, increase Medi-Cal beneficiaries' costs for certain health care services; cut Medi-Cal reimbursement by 10%. (California HealthLines February 17, 2011)
HS Staff to Help States Reduce Medicaid Costs, Retain Coverage Levels, by cutting optional services such as dental services, eyeglasses, prescription drugs, hospital admissions.(California Healthlines, February
23, 2011)
www.pnhpcalifornia.org
![Page 24: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/24.jpg)
Promise-reality 2• Promise:
– The law will make coverage affordable, establish annual limits to on your medical expenses
• Reality: – “Coverage” (i.e. policies) affordable (maybe!) by
increasing out of pocket costs to you -- “coverage” without care
– “No annual limits” illusory! (only services included in policy!)
www.pnhpcalifornia.org
![Page 25: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/25.jpg)
Massachusetts @ 3 years of “health care overhaul”
• Least expensive individual policy 56 yr. male, annual income $32,670, 300% of poverty, no subsidies (taxpayers’ $$$!) – $5,616 (policy) – $ 2,000 (deductible) – 20% of next $15,000 for covered services
• Total: $10,616
• Uncovered services (e.g. physical therapy, drugs, home health) are on you!
![Page 26: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/26.jpg)
“Coverage” does not protect from bankruptcy
![Page 27: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/27.jpg)
California Healthlines, March 14, 2011:
Some Blue Shield Members To Face Dramatic Rise In PremiumsAbout 900 Blue Shield of California members with individual policies could see their premiums rise by 80% or more cumulatively as a result of two recent rate hikes and a third premium increase scheduled to take effect on May 1.
Control costs…?
www.pnhpcalifornia.org
![Page 28: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/28.jpg)
Promise-reality 3
• Promise: “Achieves (near) universal health care”
• Reality: – Not universal:
• ~50 million uninsured next three years (CBO)-- 50,000 estimated preventable deaths per year, 1,000 per million uninsured)
• 23 million will remain uninsured by 2019 (CBO)
– Not health care: • Insurance is means to end; commercial insurance is
defective (pushes paper around to avoid the sick!)
www.pnhpcalifornia.org
![Page 29: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/29.jpg)
Promise-reality 6• Promise:
– No more health discrimination
• Reality: – Discrimination (price “adjustments”) continues, by
• Age• Geographical location (occupation and poverty rates)• Fitness (some penalties if you flunk “wellness” tests)• Residency status (undocumented immigrants can’t buy from
“exchanges”, even with own money)
www.pnhpcalifornia.org
![Page 30: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/30.jpg)
No discrimination based on health status..?
California Healthline, October 14, 2010, Insurers Can Set Higher Rates for Kids Who Have Pre-Existing Conditions
On Wednesday, HHS said that health insurers can charge higher premiums to cover children with pre-existing conditions, in an attempt to persuade companies to offer child-only policies, the New York Times reports (New York Times, 10/13/2010).
www.pnhpcalifornia.org
![Page 31: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/31.jpg)
Wait a minute…
• Something must be good!! – Children can stay in parents’ plans until age 26
(assuming parents have plan and money to pay)?
• Why should it be “either” current mess “or” PPACA? – Why 26? Age is irrelevant in other health care
systems that cover everybody, automatically, from cradle to grave! And they do not need to pay $400 billion in subsidies so that millions of captive customers buy commercial insurance!
www.pnhpcalifornia.org
![Page 32: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/32.jpg)
But is PPACA not better than nothing?
A step in the right direction..?
www.pnhpcalifornia.org
![Page 33: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/33.jpg)
Employed, health coverageYoung, healthy, secure jobs (?)c
Working (near) poorSelf-employed
Working poorUnemployed
Elderly (poor and non-poor)Disabled
Renal Failure
Public insurers ~30%
•Medicare•Medicaid
•Private Medicare•/Medicaid
SCHIP
$$$$$$$$Private insurers
Employer Market55%
Black hole(uninsured) ~15%
$$$$
Private insurersIndividual Market $$
Self-employed$$$
(Near) poor kids
US health care before March 2010
Out of pocket$$$$$$$
•Groups divided by actuarial risk/income•Pay according to plan•Services according to plan•Profit ok for medically necessary services
![Page 34: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/34.jpg)
Employed, health coverageYoung, healthy, secure jobs (?)c
Working (near) poorSelf-employed
Working poorUnemployed
Elderly (poor and non-poor)Disabled
Renal Failure
Public insurers ~30%
•Medicare•Medicaid
•Private Medicare•/Medicaid
SCHIP
$$$$$$$$Private insurers
Employer Market55%
Uninsured circa 2019, 23 million? (7%)
$$$$
EXCHANGESIND.MARKET $$
Self-employed$$$
(Near) poor kids
US health care after March 2010
Out of pocket$$$$$$$
•Groups divided by actuarial risk/income•Pay according to plan•Services according to plan•Profit ok for medically necessary services
•TAXPAYER FUNDED SUBSIDIES
•TAXPAYER EXPANSIONS OF PUBLIC
HEALTH CARE (MEDICAID)
•MANDATE TO PURCHASE COMMERCIAL INSURANCE
•REGULATIONS / REGULATIONS / R
EGULATIONS
![Page 35: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/35.jpg)
Would it have been better with a public option?
![Page 36: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/36.jpg)
Employed, health coverageYoung, healthy, secure jobs (?)c
Working (near) poorSelf-employed
Working poorUnemployed
Elderly (poor and non-poor)Disabled
Renal Failure
Public insurers ~30%
•Medicare•Medicaid
•Private Medicare•/Medicaid
SCHIP
$$$$$$$$Private insurers
Employer Market55%
Black hole(uninsured) ~15%
$$$$
EXCHANGESIND.MARKET $$
Self-employed$$$
(Near) poor kids
US health care after March 2010
Out of pocket$$$$$$$
•Groups divided by actuarial risk/income•Pay according to plan•Services according to plan•Profit ok for medically necessary services
•TAXPAYER FUNDED SUBSIDIES
•TAXPAYER EXPANSIONS OF PUBLIC HEALTH CARE
(MEDICAID)
•MANDATE TO PURCHASE COMMERCIAL INSURANCE
•REGULATIONS / REGULATIONS / R
EGULATIONS
Public option2% (6 million)
?
![Page 37: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/37.jpg)
What’s the evidence that this model will work…?
• None
• For profit insurance + subsidies + expansion of means-tested public insurance (Medicaid) + (mandate), have failed in:– 1988 Massachusetts, 1989 Oregon, 1992
Minnesota, Tennessee y Vermont, 1993 Washington State, 2003 Maine
– 2003, 2006 MassachusettsReport from the United States, State Health Reform Flatlines, Steffie Woolhandler, Benjamin Day, and David U. Himmelstein, International Journal of Health Services, Volume 38, Number 3, p. 585–592, 2008
![Page 38: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/38.jpg)
Massachusetts 2006 Window into future of PPACA
• No reduction in medical bankruptcies from 2007 to 2009 (7,504 to 10,094), still around 50%
• 89% had insurance at time of filing!
• Least expensive individual policy 56 yr. male: $5,616 (policy) + $ 2,000 (deductible) + 80% of next $15,000 for covered services (annual income 300% of poverty $32,670)
American Journal of Medicine, March 2011
![Page 39: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/39.jpg)
Why…?
![Page 40: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/40.jpg)
Social/Public vs. Commercial Insurance:
Similar NAMES, different GOALS• Commercial (for-profit) insurance
– Business of slicing and dicing patients according to risk categories and services contracted for, and collect as much money as possible while actively avoiding to pay for services, with the goal of yielding the maximum profit possible for shareholders
– Health care as market good (TV/cell phone)
• Social insurance (taxes / payroll ): – Marriage between social solidarity to protect from medical need
and market forces to buy services in bulk, get better prices, and avoid waste (advertising, marketing, shareholders profit, fat CEO salaries)
– Treats health care as a right and social good
![Page 41: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/41.jpg)
Key problem of PPACA:
Implements a health care system built upon a defective product:
commercial, for profit insurance,that survives and thrives
the more it turns down “bad customers” and the less it pays for
health care
![Page 42: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/42.jpg)
Paradox: Health insurance without health care
www.pnhpcalifornia.org
![Page 43: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/43.jpg)
What’s the experience with guaranteed, universal,
social (public) health insurance?
www.pnhpcalifornia.org
![Page 44: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/44.jpg)
International model:Social insurance / National Systems
(general or dedicated taxes)
Patients
Single payerCanada, Taiwan, UK
Public or private Health providersPharmaceuticalsMedical technology
“buyers” “sellers”
Financing
Mutual funds (non profit)Germany, France, Japan
•Everybody in, nobody out! (true universality)•Always a function of income, receive medical care according to need•Unified benefits package of “medically necessary services”•Profit banned from sale of insurance for medically necessary services
www.pnhpcalifornia.org
![Page 45: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/45.jpg)
MILLION DOLLAR QUESTION:How do they control costs
for the system and for individuals?
1. ADMINISTRATIVE OVERHEAD
2. BULK PURCHASES
3. SPREADING RISK IN LARGE POOLS
www.pnhpcalifornia.org
Power of Economies of Scale (Market Forces!) to pursue to goal of social solidarity
![Page 46: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/46.jpg)
Less administrative overhead, less waste
![Page 47: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/47.jpg)
![Page 48: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/48.jpg)
Bulk purchases, lower prices
Expenditures per person
$2,249 $5,711
Practicing physicians per 1000 persons
1.9 2.7
Physician visits per person per year
16 (Belgium 8; Canada 6.6, Germany 6.2)
6
MRI units/million persons 18.8 7.6
Population over 65 years 20% 12%
Japan United States
www.pnhpcalifornia.orgOrganization of Economic Cooperation and Development, OECD 2000/2003
![Page 49: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/49.jpg)
Risk pooling allows to cross-subsidize for socially useful purposes
• In all insurance systems, for profit or non-profit, there is cross-subsidizing, i.e., collective contributions pay for whoever needs services
• HOW THE POWER OF CROSS-SUBSIDIZING IS USED DEPENDS ON GOAL OF SYSTEM
– In COMMERCIAL SYSTEM, profit! YOUR POOL MUST BE LARGE AND FULL OF HEALTHY PEOPLE
– In SOCIAL/PUBLIC SYSTEM, to pay for health care!YOUR POOL MUST BE LARGE AND INCLUDE ALL SICK AND HEALTHY
• Key problem of Medicare: all members of pool need a lot of health care
0
10
20
30
40
50
60
70
80
10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
20% account for 80% of costs
Agency for Healthcare Research and Quality, MEPS, 1999
![Page 50: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/50.jpg)
Who pays more taxes for health care?Social vs. Commercial insurance
$3,001
$2,996
$2,903
$2,520
$2,231
$2,139
$5,635U.S.
Canada
Germany
France
Sweden
U.K.
Japan
$ Per Capita
Source: OECD Health Data 2005Government-spent fraction in red
![Page 51: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/51.jpg)
Who wins and who loses with socialized financing (social insurance)
• Winners:– Businesses can mind their own business! Reduce costs,
more competitive, reduce employee turnover, lower costs. – Patients: health security for self, children, friends and
community; no false “choices”, lower costs. – Health providers: back to real business, providing health
care, lower operation costs
• Losers:– For profit insurers: no profit from medically necessary
services– Drug companies: truly need to negotiate prices– Shareholders: can’t make fortunes from medically
necessary services– Politicians: no tons of money from all of the above
![Page 52: A Bird’s Eye View of the Patient Protection and Affordable Care Act (PPACA) Claudia Chaufan, M.D., PhD Physicians for a National Health Program-California.](https://reader036.fdocuments.us/reader036/viewer/2022070323/56649d9c5503460f94a8517a/html5/thumbnails/52.jpg)
Type of system is a moral decision