Posted by
Maureen001 on Tuesday, September 15, 2009 6:44:17 PM
HR 3200: It's not gone yet. *sigh*
It's almost impossible to read the 1017 pages of this bill without nodding off repeatedly; Congressman Conyers was clearly speaking with this bill in mind when he complained about having to vote in two days on bills over 1,000 pages long and needing two lawyers to interpret. It does help to know that this magnum opus constitutes the synthesis of Congressman Henry Waxman's decades-long efforts to take health care out of the private sector and deliver it, once and for all, firmly into the grasp of government. It represents his final abandonment of mandated employer-provided health care coverage, something begun by unions in the post-WWII era, picked up by politicians starting with the Nixon administration and every successive administration since, and something Waxman championed throughout the 1980s. A 1988 Issue Brief prepared by the Congressional Research Service identifies the number of uninsured as being either 25 million or 37 million, depending on which study you believe, which coincides entirely with the 47 million (less 12 million illegal aliens) being touted today. In the document, pending bills regarding health care coverage are listed, including a Kennedy/Waxman bill that mandates employers to pick up 80% - 100% of health insurance premiums for their employees; a bill by Congressman Pete Stark taxes employers who do not provide insurance to their employees, establishes a tax credit for payment of premiums, and creates federal and state insurance pools (today's so-called Exchanges); finally, a Jenkins/Chafe bill denies tax credits to any employer-provided insurance plan that does not provide "dollar-first" payment for child health care -- a term in use today meaning insurance covers payment for well-baby coverage,
not the parent.
The bill is comprehensive in its establishment of a brand new bureaucracy within the federal government, something that is needed because of its creation of health care coverage for many not currently covered, the so-called "public plan". It is stop-gap in its changes proposed to Medicare and Medicaid billing and provider mandate methods. And it is premature, as evidenced by the incredible number of pilot programs that will be funded under it.
Much has already been said about certain distasteful provisions in the bill, and I won't waste a lot of time repeating them, but I do want to clarify a couple of inflammatory points:
- Nothing in the bill flatly calls for or prohibits abortion coverage. Issues of coverage beyond the mandatory general categories listed as part of the Essential Benefits Plan are left to the Health Benefits Advisory Committee, which has already been created under the Stimulus Bill.
- Nothing in the bill prohibits coverage from being extended to illegal aliens; however, there is language that prohibits extending health care tax 'credits' to illegal aliens, but explicitly exempts them from the requirement to pay a tax for failure to have insurance.
- It increases funding to the Department of Health and Human Services (HHS) to the tune of $100,000,000 in order to decrease waste, fraud, and abuse without presenting any plan or mechanism for doing so. Ironic, that, eh?
- It mandates creation of and exclusive use of electronic patient records and "Electronic Administrative Transactions", this in spite of the theft of tens of thousands of veterans' records when the VA went to such a system, and in spite of thousands of children in Florida recently being denied health care services because of a computer glitch. No adequate protection exists today that can 100% safeguard against hacking of electronic networks. Period
- It mandates creation of a new Trust Fund, to be funded by both taxes paid within the system and automatic appropriations from the US Treasury General Fund to replace non-reimbursed funds spent.
- The volume of mandatory reporting, penalties, excise taxes, reserves, and coverage mandates that will apply to existing private insurance plans guarantee their necessary end in the not-too-far future, beginning with self-insuring employers who pay their employees' bills in lieu of buying insurance from an insurance company. No changes to existing policy coverage is allowed, with the exception of adding new dependents; changes automatically cause the employer to have to provide the public plan.
The bill creates the position of Health Choices Commissioner, who is empowered to set rates, establish standards for networks in private plans, set the "Medical Loss Ratio" (MLR) for private plans at the "highest ratio possible" (which means limit the amount of profit insurers can make), establish marketing standards, define terms like "employee" "part-time" and "full-time" even though they are already defined under labor laws and the IRC, manipulate private and public plan premium amounts to control 'adverse selection' (having a bunch of costly patients all choose the same plan, loading it up) among enrollees, make from and receive payments into the Trust Fund, audit all insurers and charge them for the audits, gather confidential information and data from all insurers, issue reports to Congress such as one comparing self-insured and subscriber plans in areas of capital reserves with emphasis on the form of ownership (whether corporate or not), risk, and effects of rating rules (but being prohibited from making recommendations for changes that might increase the number of self-insurers), and terminate or take over state Exchanges. The Health and Human Services Secretary is responsible for creating and administering the public plan, but the Health Choices Commissioner is responsible for administrating the federal insurance Exchange (a group of qualifying plans offered to the public, including the public plan).
The bill defines who appoints whom to the Health Benefits Advisory Committee, chaired by the Surgeon General. The President appoints 9 non-federal employee members and either 2, 4, 6, or 8 members who are federal employees or officers, all for 3 year terms. The Comptroller General appoints 9 additional members. Members are supposed to include providers, consumers, employers, insurers, experts in health care finance and delivery, experts in racial and ethnic disparities, experts in disabilities, government agencies, at least one doctor or health care professional, and one expert on children's health care for balance. These are the folks who will decide what is covered or not covered in the public plan.
A great deal of the plan involves changes in policies pertaining to Medicaid and Medicare, mostly involving what can be charged and how it can be charged, and how providers will be mandated to provide more services for less money, including the ever-popular "bundling of services" technique that requires a doctor or other care provider to receive a flat fee for providing complete care to a patient. For example, a neonatal cardiac surgeon is reimbursed $2900 in Missouri for performing open heart surgery on an infant, and that covers all pre-op visits, the surgery, post-op medications, visits, procedures, and treatments for 30 days after the surgery. Disproportionate Share Hospital (DSH) dollars, which are distributed to hospitals to offset their costs for non-reimbursable treatment of patients, will be phased out and eliminated because, theoretically, those costs should diminish and go away once everyone is insured.
Pilot programs, funded to the tune of hundreds of millions of dollars, include Accountable Care Organizations (ACOs), a sort of small-time HMO done at the doctor level (approximately 5,000 Medicare patients and/or 15,000 private insurance patients per ACO); one to bundle Post Acute Care by skilled nursing facilities, in-patient rehab center, long term care facilities and the like; one to convert emergency care to a single episode via bundling -- meaning, doing away with paying for readmissions within days of discharge, even though it is Medicare/Medicaid who dictates when that discharge will happen, NOT the doctor; grants for language services where needed, along with the mandate that "entities (providers) must provide for culturally and linguistically appropriate communication and health services" (none of which is defined), a Medical Home pilot program, and a host of others too numerous to continue mentioning.
The last part of the bill is dedicated to housekeeping; changing language in pre-existing programs and laws to incorporate them into this new bureaucracy, and it fleshes out the system by creating funding for such things as birthing centers that are separate from hospitals (cross your fingers, Mom!), family planning services to non-pregnant low income women (
not couples), Medicare funding for smoking cessation, nurse home visits to low income pregnant women and to children under the age of two to prevent abuse and neglect, public health clinics to provide children's vaccinations, rebates to states who pay for graduate medical student schooling, and funding of the Health Care Comparative Effectiveness Research Trust Fund to the tune of $670 million between 2010 and 2013, and $375 million each year thereafter, purpose unstated and unclear. It increases the amount of money paid to doctors who become licensed via the National Health Service Corps from $35,000 to $50,000 but doubles the amount of mandatory service time and reduces credit for assigned service to half -- a sort of indenture to government. It increases a stipend paid to civilian employees and officers in the regular or reserve corps working in the Public Health Work Force Corps to $1269 per month, in addition to their educational scholarship and increases their service period to 2 years. And on. And on.
There is a one-time $10 million payout, called "reinsurance" in the bill, to be paid to retirees and spouses not yet Medicare-eligible to reimburse 80% of their out-of-pocket costs between $15,000 and $90,000. This money is paid directly to the retiree/spouse and NOT to the employer who provided the coverage. This money goes into a separate trust fund. There is no mechanism for sustaining the trust fund. Rumor is that this is payback money for union retirees who tend to retire much earlier than the rest of us, thus making them not yet Medicare-eligible. There is nothing in the bill to substantiate or deny that charge, however.
When one adds up the numbers spelled out in HS 3200, one quickly leaves earth for the ionosphere, keeping in mind that numbers are only spelled out as far ahead as 2019, but usually not beyond 2013. The $88 billion figure that is thrown about by news commentators who prove by doing so that they never read the bill is just not supported; it is far too low. And the only identified mechanisms for compensating for lack of money in the program is to automatically take from the US Treasury's General Fund; read: increase taxes, or raise premiums. But raising premiums is what private insurers have had to do. Where's the improvement?
In my next installment I will cover some of the points of other health care bills that are up for consideration today, including Senator Baucas' Bipartisan Six non-bill, the Affordable Health Choices Act (Kennedy/Dodd), the self-identified "Tuesday Group" Patient's Choice Act of 2009, and some plans in place now in such states as Massachusetts, Florida, and West Virginia.