Editore"s Note
Tilting at Windmills

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February 22, 2009

KEEPING HEALTHCARE REFORM ON TRACK.... There's been ample speculation as to whether the Obama administration will pursue healthcare reform this year, but as the White House budget comes together, the issue remains very much on the frontburner.

"The budget will kick off or facilitate a focus on getting health care done this year," the senior official said, adding that the White House is planning a health care summit. The event has been delayed by former senator Thomas A. Daschle's decision to withdraw from consideration as health secretary because of tax problems, a move that left Obama without a key member of his health team.

Administration officials and outside experts say the most likely path to revamping the health system is to begin with Medicare, the federal program for retirees and people with disabilities, and Medicaid, which serves the poor. Together, the two programs cover about 100 million people at a cost of $561 billion in 2007. Making policy changes in those programs -- such as rewarding physicians who computerize their medical records or paying doctors for results rather than procedures -- could improve care while generating long-term savings, experts say.

Obama's budget request would create "running room for health reform," the official said, by reducing spending on some health programs so the administration would have money to devote to initiatives to expand coverage. The biggest target is bonus payments to insurance companies that run managed-care programs under Medicare, known as Medicare Advantage.

The Bush-era program has attracted nearly a quarter of Medicare beneficiaries to private health insurance plans that cover a package of services such as doctor visits, prescription drugs and eyeglasses. But the government pays the plans 13 to 17 percent more than it pays for traditional fee-for-service coverage, according to the Medicare Payment Advisory Commission, which advises Congress on Medicare financing issues.

On a related note, the Politico reported that the White House is "considering dumping its newly created Office of Health Reform," which Tom Daschle was slated to lead. Does that mean Obama's team is backing off on the broader initiative? Ezra Klein explains that just the opposite appears to be true. The Office of Health Reform was going to be Daschle's baby and "filling that spot with someone else would actually undermine the original intent of the office."

Ezra concluded, "If they decide to dump the Office of Health Reform, it's not because they've abandoned health care reform. It's because they haven't, and they're building a post-Daschle strategy."

Steve Benen 10:20 AM Permalink | Trackbacks | Comments (6)
 
Comments

I'd imagine some of the lowest hanging fruit on the healthcare reform tree would be Bush's blatant give-away to drug companies with the Medicare drug program. A clear-eyed revision of that program should make the nation's balance sheet look a lot better.

Posted by: petorado on February 22, 2009 at 11:01 AM | PERMALINK

Healthcare has to be on the frontburner as it is the biggest problem whose solution will contribute to long-term economic recovery. The stimulus is stop-gap. Healthcare reform, plus developing alternative energy and other innovative domestic industries, will put us on the road to recovery.

Posted by: bdop4 on February 22, 2009 at 11:23 AM | PERMALINK

From the WaPo article:

"Making policy changes in those programs -- such as...paying doctors for results rather than procedures -- could improve care while generating long-term savings, experts say."

The potential cost savings are obvious but for whom would care be improved? If physicians are to be rewarded for results, then wouldn't they have an incentive to not treat critically ill patients?

Posted by: jm on February 22, 2009 at 12:48 PM | PERMALINK

jm, I could be mistaken, but would expect that they mean to pay based on condition being treated (i.e. compound fracture has a set price for entire treatment rather than itemizing emergency room fees, x-rays, doctor's treatment, cast, etc.)

The details would be important, you don't want hospitals cutting too many corners, but this would have advantages of:

a) reducing paperwork
b) encouraging hospitals to avoid unnecessary tests and procedures.

Posted by: tanstaafl on February 22, 2009 at 3:34 PM | PERMALINK

b) encouraging hospitals to avoid unnecessary tests and procedures. -- tanstaafl, @ 15:34

The hospitals have bought the machinery, have made contracts with labs and, by golly, they're gonna use them, to get their money back! Not to mention to cover their butts in case of lawsuits.

In early Dec of '07, I had a bellyache. Since it didn't quit, after 48hrs, I went off to the doctor (GP). He poked and he prodded and he said: "Appendicitis; better operate right away, before it ruptures".

Off I go to the emergency room (where the surgeon was, patching up the victims of a pile-up). Tests galore, some like from a SciFi film, from 10AM till 17:00 (partly because I had to be fitted in between the victims of the pile-up) and, with each one, comes the cheerful: "A-yup; sure looks like appendicitis".

Had the op at 19:30, out of the hospital at 9AM next morning. Two days later, I go to the sugeon's office for a check-up. "We did a biopsy" he says, "and it sure was appendicitis". He looked puzzled, when I started laughing hysterically and couldn't stop. Finally, eyes streaming, I managed to ask: "What would you have done if the biopsy showed it *hadn't* been appendicitis? Would you have sewn the appendix back in?". "But we knew it was appendicitis", says he "all the tests indicated it." "So, what did you do the biopsy for?" Silence.

Posted by: exlibra on February 22, 2009 at 5:11 PM | PERMALINK

jm, I had the same question. I'm not sure how to get around it. Since Medicare patients are, by definition, elderly, they are at risk of not improving no matter what you do. Some doctors would tend to not put in the effort if they didn't think that the patient would improve. Also, if improvement is measured against some standard that says the doctor has to do better than the average, that will mean that approximately half the doctors don't get paid no matter how well they do.

Posted by: Texas Aggie on February 22, 2009 at 9:55 PM | PERMALINK




 

 
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