Archive for the ‘health reform’ Category

Medicine is coming to be a government benefit.

Sunday, August 3rd, 2014

Obamacare is having serious trouble as I have discussed. The success stories, like California, are an example of what I have called Medicaid for All.

“It’s a total contradiction in terms to spend your public time castigating Medicaid as something that never should have been expanded for poor people and as a broken, problem-riddled system, and then turn around and complain about the length of time to enroll people,” said Sara Rosenbaum, a member of the Medicaid and CHIP Payment and Access Commission, which advises Congress.

Most of the new enrollees are Medicaid members and those enrolled in “private insurance” learn that they have severely restricted choice of doctor or hospital.

Now we have a new development.

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What next for health reform?

Saturday, July 26th, 2014

It looks to me that the Supreme Court will have little justification for continuing the Obamacare program as it exists. The Halbig decision should kill it off. It is clear that the IRS subsidies to federal exchange subscribers are illegal.

The only statement anyone has found in the legislative history that addresses this point comes from the Act’s lead author, who affirmed that Congress did intend to withhold tax credits in federal Exchanges. During a September 23, 2009, mark-up of his bill, which ultimately became the PPACA, Senate Finance Committee chairman Max Baucus (D-MT) refused to consider a Republican amendment regarding medical malpractice on the grounds it fell outside the Committee’s jurisdiction. Sen. John Ensign (R-NV) protested, asking how Baucus’ bill could do other things that lie outside the Committee’s jurisdiction, like direct states to create Exchanges. Baucus responded the bill creates tax credits, which are within its jurisdiction, and makes eligibility for those tax credits conditional on states creating Exchanges. Conditional necessarily means that Baucus intended to withhold tax credits in states that did not create their own Exchanges.

I just don’t see how the Court can ignore that history. The political left has been on a rant about Congressional intent since the decision was announced.

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An Update on Medical Reform

Monday, July 21st, 2014

Cash medical practice or, in the phrase favored by leftists critics, “Concierge Medicine,” seems to be growing.

Becker is shifting to a new style of practice, sometimes called concierge or retainer medicine. With the help of a company that has been helping physicians make such shifts for over 13 years, he will cease caring for a total of 2,500 patients and instead cut back to about 600. These patients will pay an annual fee of $1,650. In exchange, they will receive a two-hour annual visit with a complete physical exam, same-day appointments, 24-hour physician phone access, and personalized, web-based resources to promote wellness.

The article suggest that all these doctors choosing to drop insurance and Medicare are primary care. Many are but I know orthopedists and even general surgeons who are dropping all insurance.

The concierge model of practice is growing, and it is estimated that more than 4,000 U.S. physicians have adopted some variation of it. Most are general internists, with family practitioners second. It is attractive to physicians because they are relieved of much of the pressure to move patients through quickly, and they can devote more time to prevention and wellness.

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New developments at the hospital where I used to practice.

Friday, June 27th, 2014

When I moved to Orange County in 1972, I joined a friend from my surgery residency in practice at a new hospital that had opened a year before. It was called “Mission Community Hospital,” and was owned by a group of doctors with one of the partners an owner of the new development of Mission Viejo. His name was Richard O’Neill and his family had developed Mission Viejo from part of their huge ranch.

The hospital was small with 110 beds total and the staff was made up of young doctors who had recently finished their training like me. The owners were mostly older doctors and practiced in another area of the county. Some of them we would not have allowed on the staff if they had applied. They largely left us alone and over a period of a few years we developed what we thought was the best hospital in Orange County.

Mission Hospital in 1975.

Mission Hospital in 1975.

This is what the hospital looked like in 1975. The swallows used to nest in that entry area. To the right of the entry, there was a doctors’ parking lot and, for a while, the hospital paid a kid to wash our cars. Tom and I always tipped him extra. The food in the doctors’ dining room was free and good and I got a bit pudgy. The hospital went to considerable trouble to make it friendly to doctors and we responded.

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Medicaid for all.

Thursday, June 5th, 2014

Obamacare has had its problems in implementation but the real problem is the fact that it has severely distorted the health care market by forcing people into narrow high cost markets that do not reflect the real situation in American health care. I have previously expressed my opinion on how to do health reform.

American health care has been distorted by the type of “insurance” that was brought into effect by employer-based insurance. That is prepaid care, not insurance as we know it in every other market.

The history of American health insurance is greatly distorted.

Now we have this latest iteration of the failure of the Obamacare method and the alternatives.

I have believed for some time that what we see is a system of Medicaid for all. The benefits are skewed by politics and the market mechanisms are crippled. Now we see the situation is even worse.

At least 2.9 million Americans who signed up for Medicaid coverage as part of the health care overhaul have not had their applications processed, with some paperwork sitting in queues since last fall, according to a 50-state survey by CQ Roll Call.

Those delays — due to technological snags with enrollment websites, bureaucratic tangles at state Medicaid programs and a surge of applicants — betray Barack Obama’s promise to expand access to health care for some of the nation’s most vulnerable citizens.

As a result, some low-income people are being prevented from accessing benefits they are legally entitled to receive. Those who face delays may instead put off doctors appointments and lose access to their medicines, complicating their medical conditions and increasing the eventual cost to U.S. taxpayers.

Democratic lawmakers who have promoted the law’s historic coverage expansion are wary of acknowledging problems that hand opponents of the Affordable Care Act another rhetorical weapon, said Robert Blendon, a professor at Harvard University School of Public Health and Kennedy School of Government.

What is going on ?

Meanwhile, Republicans usually eager to criticize the Obama administration or states for implementation problems risk looking hypocritical by showcasing the Medicaid waits. Many oppose expanding the program to people with incomes as high as 138 percent of the federal poverty line, as the law allows states to do, and are loath to demand more efficient enrollment to achieve that goal.

“It’s a total contradiction in terms to spend your public time castigating Medicaid as something that never should have been expanded for poor people and as a broken, problem-riddled system, and then turn around and complain about the length of time to enroll people,” said Sara Rosenbaum, a member of the Medicaid and CHIP Payment and Access Commission, which advises Congress.

Oh OK.

Updated numbers provided by Bataille indicate that the total number of people affected remains about the same as reflected in the document. About 1.2 million have discrepancies related to income; 505,000 have issues with immigration data and 461,000 have conflicts related to citizenship information.

Many years ago, I was still interested in health policy research. I had an office at UC, Irvine and Orange County, where I live, was undergoing a transition from fee-for-service Medicaid (MediCal in California) to a new HMO-based program called Cal OPTIMA. This seemed a good opportunity to study the outcomes in two contrasting systems for the same population. No studies had been done to see how the MediCal Population would repond to the different incentives of fee-for-service and HMO. I developed a proposal to study this transition at a time when databases for both systems were available. The data from the fee-for-service program was still current and the new HMO program would provide the opportunity to see how the MediCal patients fared under the new program. I had obtained the cooperation of the UCI statistics department and had had some experience with this sort of study at Dartmouth where I had recently compacted a Masters Degree program in health policy research.

The Orange County Health Department had hired the recent director of HCFA, the Medicare intermediary. Funding was available from a large endowment fund devoted to the study of low income California residents’ health care. The organization was called “The California Endowment” and was funded when Blue Cross became a for-profit entity and was obliged by the state to donate a large sum to charitable causes.

The proposal is here.

All that was needed was the approval of the Cal OPTIMA program to use their data. All the funding was assured.

They refused. I wonder why ?

The Depression may be here.

Tuesday, February 4th, 2014

I have believed for some time that we were entering another Depression. I have previously posted about it.

The Great Depression did not really get going until the Roosevelt Administration got its anti-business agenda enacted after 1932. The 1929 crash was a single event, much like the 2008 panic. It took major errors in economic policy to make matters worse. Some were made by Hoover, who was a “progressive” but they continued under Roosevelt.

I posted that statement elsewhere and it got a rather furious rebuttal. I still believe it. What is more, I am not the only one. Or even only one of two.

The second article preceded the election of 2012 but is still valid.

When employment hit an air pocket in December, most analysts brushed off the dreadful jobs number as an anomaly, or a function of the weather. They chose to believe Ben Bernanke rather than their lying eyes. It’s hard to ignore a second signal that the U.S. economy is dead in the water, though: on Monday the Institute for Supply Management reported the steepest drop in manufacturing orders since December 1980:

fredgraph

In January, only 51% of manufacturers reported a rise in new orders, vs. 64% in December. Not only did the U.S. economy stop hiring in December, with just 74,000 workers added to payrolls; it stopped ordering new equipment. The drop in orders is something that only has occurred during recessions (denoted by the shaded blue portions of the chart). The Commerce Department earlier reported a sharp drop in December orders for durable goods. In current dollars, durable goods orders are unchanged from a year ago, which is to say they are lower after inflation.

So, the economy stopped hiring, even at the poor pace the past five years have seen, but business also stopped buying.

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Another Obamacare corruption story.

Monday, January 20th, 2014

My previous post noted the rather abrupt change of prime contractors and now we see another connection. The chief designer has a history with Obama, as with most of this administration

The Chicago-based consulting firm Accenture received a $90 million noncompetitive contract to become the Obamacare website’s new primary contractor. The no-bid deal puts the company that employed the man who developed the Obama campaign’s personality-tracking programs in charge of a website that possesses massive amounts of personal information despite severe security risks.

Rayid Ghani, chief scientist of the Obama for America data analytics team, came to the Obama campaign in 2011 after a long stint directing the analytics research group at Accenture Technology Labs, where he engineered new ways for companies to track consumers’ personal preferences.

Now he can track Obama’s friends and enemies. It worked before. Why not again ? Like this fall or in 2016.

But might a presidential campaign have another use for tens of thousands of mini-memoirs?

That’s the central thrust of a project under way in Chicago known by the code name Dreamcatcher and led by Rayid Ghani, the man who has been named Obama’s “chief scientist.” Veterans of the 2008 campaign snicker at the new set of job titles, like Ghani’s, which have been conjured to describe roles on the re-election staff, suggesting that they sound better suited to corporate life than a political operation priding itself on a grassroots sensibility.

And now he is the architect of Obamacare. What could go wrong ?

More Obamacare news

Saturday, January 18th, 2014

UPDATE: More News.

This is supposed to be reassuring.

Obamacare contains a $25 billion federal risk fund set up to benefit health insurance companies selling coverage on the state and federal health insurance exchanges as well as in the small group (less than 50 workers) market. The fund lasts only three years: 2014, 2015, and 2016.

The government’s risk management program for the insurers has three parts (the “3Rs”):
A revenue neutral Risk Adjustment System designed to level adverse claim costs between health plans.
A Reinsurance Program that caps big claim costs for insurers (individual plans only).
A Risk Corridor Program that limits overall losses for insurers.
Of the $25 billion, $20 billion is earmarked for the Reinsurance Program and $5 billion goes to the U.S. treasury.

First, the Reinsurance Program caps big individual claim costs for insurers––in 2014, 80% of individual costs between $45,000 and $250,000 are paid by the government, for example.

Then comes the Risk Corridor program. Participating health plans will receive payments from the federal government in any of the following circumstances:
The plan’s costs for any benefit year are more than 103% but not more than 108% of the health plan’s targeted amount. The feds will reimburse 50% of all costs in excess of 103% of the medical cost target.
If the plan’s costs are more than 108% of the annual target, the feds will first pay the health plan a flat 2.5% of the target and then reimburse the plan for 80% of their claim costs above the targeted amount––with no upside limit.
Target cost is simply defined in the new law as a health plan’s “total premiums (including any subsidies) reduced by the administrative costs of the plan.” It is whatever the health plan projected its premium needed to be to pay medical costs.

The CMS has a new contractor for Obamacare, not just the web site. The previous contractor, CGI Federal, has been replaced rather suddenly.

“Accenture, one of the world’s largest consulting firms, has extensive experience with computer systems on the state level and built California’s large new health-insurance exchange. But it has not done substantial work on any Health and Human Services Department program.
“The administration’s decision to end the contract with CGI reflects lingering unease over the performance of HealthCare.gov even as officials have touted recent improvements and the rising numbers of Americans who have used the marketplace to sign up for health coverage that took effect Jan. 1.”

CGI Federal is the company connected with Michelle Obama through her classmate, a fellow Princeton alumna.

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Obamacare progression to Medicaid.

Thursday, December 19th, 2013

UPDATE: A new wrinkle appeared today. Obama now says anyone who was canceled can buy a “catastrophic plan” and keep it for a year. Of course, the “catastrophic plans offered are larded with Obamacare mandates. It is looking like surrender is getting near. The lefties look like fools but what did we expect when this thing began?

All of this, along with previous time extensions for sign-ups, suggests Obamacare is heading for a spectacularly awful January. The president is so obsessed with ameliorating the political problem that he is dismantling his own plan, bit by bit, both undermining its economic viability and aggravating voters and political allies. Is this the handiwork of the triage maven John Podesta? If so, they’ll need a clean-up man to clean up from Podesta.

The comments after this post should be hilarious. Let’s look…

Obamacare is a done deal. Obama has three more years to patiently work this through. Even if GOP takes the senate in 2014 they will not have a veto proof majority. GOP has absolutely no alternatives (except selling across state lines, which is another way of saying huh..).

Heritage foundation worked this out carefully in pre-Obama days; Romney was not stupid when he did this in Mass.; they knew that individual mandate is the only way to cover preexisting conditions (you may want to think this through if you are a bit slow….or ask anyone who works in insurance)

There is the old lefty lie about Heritage and the mandate plan from 20 years ago. This one is even funnier…

Not sure why there’s so much concern from Jen on whether Dems will stick with the President in 2014. ACA website glitches will be a thing of the past; people will find out that taxpayers are quite generous with subsidies.

The nature of Obamacare is becoming more and more clear as the months go by. A hearing before Darryl Issa’s committee brought out a few facts which have been thin on the ground lately.

Dr. Patricia McLaughlin, an ophthalmologist based in New York City, said insurers are introducing limited networks and announcing new plans that will offer only in-network benefits, excluding all out-of-network doctors.

She noted the problem of limited networks is that many health plans have substantially reduced or eliminated previous coverage options that allowed patients to see the doctor of their choice.

This is necessary as the insurers try to limit their losses as the risk pools evaporate. I haven’t yet learned if out-of-network doctors can charge cash prices. As employer sponsored plans dry up, there will be fewer contracts to be violated by offering services at lower prices. At present, a doctor who offers a cash price substantially below the contract price risks cancellation of the contract. Medicare is even more ferocious in protecting its “discounts” by threatening prosecution of a Medicare provider who offers more or cheaper services than those “allowed” by Medicare, even though payment is a fraction of the “allowed” charges.

Dr. Jeffrey English, a neurologist at the Multiple Sclerosis Center of Atlanta, said the law punishes doctors like him because he recommends too many costly procedures, such as MRIs and brain-image scans, compared to his peers.

“In reward for my passions to prevent real people from becoming disabled, CMS and insurance companies like United Healthcare are going to post negative grades in my name,” he said. “They will financially penalize me or the institution I work for, as I am trying to practice quality care to some of our most vulnerable patients.”

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The curtain is briefly drawn aside.

Sunday, December 15th, 2013

I try not to be too pessimistic but, these days, it hard to be too pessimistic. Recently, we had a preview in Cyprus. Cyprus banks had served as money laundering devices for Russian and other oligarchs.

Cyprus and its international lenders have agreed to convert 47.5 percent of deposits exceeding 100,000 euros in Bank of Cyprus to equity to recapitalize it, banking sources said on Sunday.

Under a programme agreed between Cyprus and lenders in March, large depositors in Bank of Cyprus were earmarked to pay for the recapitalisation of the bank. Authorities initially converted 37.5 percent of deposits exceeding 100,000 euros into equity, and held an additional 22.5 percent as a buffer in the event of further needs.

This means that, if you had a large deposit in a Cyprus bank, you were assumed to be a money launderer. Of course, if you are a small depositor, your bank account is not safe.

Shannon Bruner of Indianola logged on to her checking account Monday morning, and found she was almost 800 dollars in the negative.

“The first thing I thought was, ‘I got screwed,’” she said.

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