Remember The ‘Public Option’? Insurance Commissioner Wants To Try It In California

Remember The ‘Public Option’? Insurance Commissioner Wants To Try It In California

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With major insurers retreating from the federal health law’s marketplaces, California’s insurance commissioner said he supports a public option at the state level that could bolster competition and potentially serve as a test for the controversial idea nationwide.

“I think we should strongly consider a public option in California,” Insurance Commissioner Dave Jones said in a recent interview with California Healthline. “It will require a lot of careful thought and work, but I think it’s something that ought to be on the table because we continue to see this consolidation in an already consolidated health insurance market.”

Nationally, President Barack Obama and other prominent Democrats have revived the idea of the public option in response to insurers such as Aetna Inc. and UnitedHealth Group Inc. pulling back from the individual insurance market and many consumers facing double-digit rate hikes.

The notion of a publicly run health plan competing against private insurers in government exchanges was hotly debated but ultimately dropped from the Affordable Care Act when it passed in 2010.

Health insurers have long opposed the idea, and other critics fear it would lead to a full government-run system

Re-engaging in Health Care Reform

https://newsatjama.jama.com/2016/09/21/jama-forum-re-engaging-in-health-care-reform/?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=34737932&_hsenc=p2ANqtz-9-P8BA0peIS06RN4V5K0lf6yRE72sRu4qrGYgK1Rjbo4orEnYHUfJNelSrWoPS_4RPHS1RCvpanquAbaxhxoxhnHx-_w&_hsmi=34737932

Image result for healthcare reform

As we approach the election this fall, it seems like the news media report on little else. Unfortunately, too little news coverage addresses health care reform. This is ill-advised because there is still much to be done to improve the cost, quality, and access for patients within the US health care system. In this post, I will attempt to cover most of the major issues related to health care coverage that US consumers face.

In a previous piece I wrote for the JAMA Forum, just before the last presidential election, I discussed how health care reform is all about tradeoffs. For example, one way to make an insurance plans cheaper is to offer narrow networks (reducing access to high-cost services or allowing access only to physicians who agree to accept lower payments in return for the promise of higher volume). That’s a tradeoff. Community ratings and government regulation lead to improved access for some but fewer options for carriers (worse access). Weak mandates allow for more freedom in deciding whether to purchase insurance but lead to increased rates for others and fewer carriers participating.

We should not lose sight of what has improved. An additional 20 million US residents who lacked health coverage are now insured. Spending has slowed to below what was predicted. But there is still much work to do. Calling for blanket repeal of the ACA and a return to the status quo is not an improvement. But failing to recognize shortcomings in reform and working to ameliorate them would be a failure as well.

Progressives push for ‘public option’ health plan

http://www.usatoday.com/story/news/2016/09/15/progressives-push-public-option-health-plan/90375964/

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Progressive senators and activists are launching a campaign Thursday calling for every American to have the choice of a public health insurance option.

This is how the presidential election is shaping the ongoing drug price debate

This is how the presidential election is shaping the ongoing drug price debate

Change Capsule Pill Filled with Word on Balls

In this year’s presidential campaign, health care has taken a back seat. But one issue appears to be breaking through: the rising cost of prescription drugs.

The blockbuster drugs to treat hepatitis C as well as dramatic price increases on older drugs, most recently the EpiPen allergy treatment, have combined to put the issue back on the front burner.

Democrat Hillary Clinton just issued a lengthy proposal to address what her campaign calls “unjustified price hikes for long-available drugs.” That’s in addition to a broader proposal to address high drug prices the campaign put out last fall.
Republican Donald Trump, meanwhile, has said little about health care since announcing his candidacy in 2015, but he has several times called for a change in law to allow Medicare to negotiate drug prices for the population it serves.

Here are five reasons why this issue is back — and why it is so difficult to solve.

California Moves to Allow Undocumented Immigrants to Buy Insurance

In a move that is sure to draw the ire of Republicans, California officials are asking the Obama administration this week to approve a plan that would allow undocumented immigrants to buy health insurance on the state’s public exchange.

Officials say that up to 30 percent of the state’s two million undocumented adults could be eligible for the program, and that roughly 17,000 people are expected to participate in the first year, if the plan is approved. But the proposal faces serious hurdles in Washington, where it must be approved by both the Treasury and the Health and Human Services Departments.

During debates over health care in his first term, and again when Congress considered an immigration overhaul in 2013, President Obama made it clear that health insurance subsidies under the Affordable Care Act would not go to immigrants who are living in the United States illegally. And two provisions of the health care law limit coverage to residents who are here legally. But advocates of California’s initiative argue that the plan should be approved under what is known as an “innovation waiver,” which allows states to have provisions of the federal law modified, because no federal dollars will be used to fund the program.

 

Studies: Employer Costs Slow As Consumers Use Less Care, Deductibles Soar

http://khn.org/news/studies-employer-costs-slow-as-consumers-use-less-care-deductibles-soar/?utm_campaign=CHL%3A+Daily+Edition&utm_source=hs_email&utm_medium=email&utm_content=34365867&_hsenc=p2ANqtz-8KEto_GP9_uQqUz3i-mPzdbfQDEppu8jP4OnWeCEXc0J1QCOvNd0hi84YGIhj1horx7qHfq8_4658aqWRUhtoQ9n9XQQ&_hsmi=34365867

Pocketbook pain: Workers’ contributions to health-plan premiums have been rising faster than their pay. Deductibles have risen even more. (Courtesy of Kaiser Family Foundation)

Employer health insurance expenses continued to rise by relatively low amounts this year, aided by moderate increases in total medical spending but also by workers taking a greater share of the costs, new research shows.

Average premiums for employer-sponsored family coverage rose 3.4 percent for 2016, down from annual increases of nearly twice that much before 2011 and double digits in the early 2000s, according to a survey by the Kaiser Family Foundation. (Kaiser Health News is an editorially independent program of the foundation.)

But 3.4 percent is still faster than recent economic growth, which determines the country’s long-run ability to afford health care.

And the tame premium increases obscure out-of-pocket costs that are being loaded on employees in the form of higher deductibles and copayments. Another new study suggests those shifts have prompted workers and their families to use substantially fewer medical services.

For the first time in Kaiser’s annual survey, more than half the workers in plans covering a single person face a deductible of at least $1,000. Deductibles for family plans are typically even higher.

How companies are quietly changing your health plan to make you pay more

https://www.washingtonpost.com/news/wonk/wp/2016/09/14/the-quiet-change-to-insurance-plans-thats-making-health-care-more-expensive-for-patients/?_hsenc=p2ANqtz–a1tLHuuWbLDRr3vfl_vZWfJIr1163X7jwzsY9F5bjKZH9j8pjJ07N0ZJpCrTMnoGIXnIr7TqG7dAsJwyjClgznOWyIg&_hsmi=34365867&utm_campaign=CHL%3A%20Daily%20Edition&utm_content=34365867&utm_medium=email&utm_source=hs_email

While uninsured rate hits historic low, young adults still not sold

http://www.healthcaredive.com/news/while-uninsured-rate-hits-historic-low-young-adults-still-not-sold/425890/

A survey found adults in states with a federally facilitated marketplace more likely to be uninsured than those in states operating a state-based marketplace or a partnership marketplace. This indicates another way in which states’ support (or lack thereof) for the ACA has impacted their uninsurance rates.

Cleveland Clinic details hits to operating margin

http://www.healthcaredive.com/news/cleveland-clinic-details-hits-to-operating-margin/425703/

  • The Cleveland Clinic’s latest financials show the hospital system ended the first half of 2016 with a significantly lower operating margin than at the same time in 2015, landing at 1.2% after the six-month period that ended June 30, 2016 vs. 5.6% in June 2015.
  • Although the system’s revenue went up 17% during this period compared to last year, reaching $3.93 billion, that revenue failed to keep pace with a 23% increase in expenses.
  • The system had anticipated a smaller margin this year, Cleveland Clinic chief financial officer Steve Glasstold Modern Healthcare, partly as a result of increased investments in new care-delivery models and consultants to manage those projects, as well as providing raises to medical and other employees to retain in-demand clinicians.