Like many of you, I’m sure, talk of “health care reform” (ditto “education reform”) is enough to make me spin my radio dial from NPR to anything else, even the ethnic station on AM that plays Slovakian pop.
But we probably have to start paying attention.
So I went to the horse’s mouth (must resist urge to refer to him as other end…):
I have made a firm commitment that health care reform will not add to the federal deficit over the next decade. To keep that commitment, my Administration has already identified how to pay for the historic $635 billion down payment on reform detailed in our budget. This includes over $300 billion that we will save through changes like reducing Medicare overpayments to private insurers, and rooting out waste in Medicare and Medicaid.
However, any honest accounting must prepare for the fact that health care reform will require additional costs in the short term in order to reduce spending in the long-term. So today, I am announcing an additional $313 billion in savings that will rein in unnecessary spending, and increase efficiency and the quality of care – savings that will ensure that we have nearly $950 billion set aside to offset the cost of health care reform over the next ten years.
Hey, sounds great! Reducing overpayments, rooting out waste—count me in. Reduce away; root out at your earliest convenience.
What else?
These savings will come from commonsense changes. For example – if more Americans are insured, we can cut payments that help hospitals treat patients without health insurance. If the drug makers pay their fair share, we can cut government spending on prescription drugs. And if doctors have incentives to provide the best care instead of more care, we can help Americans avoid the unnecessary hospital stays, treatments, and tests that drive up costs.
Uh-oh.
I detect the double whammy of ignorance and intimidation.
We covered the ignorance part months ago, but here’s a reminder:
Thousands of newly insured Massachusetts residents are relying on emergency rooms for routine medical care, an expensive habit that drives up healthcare costs and thwarts a major goal of the state’s first-in-the-nation health insurance law.
The 2006 law requires nearly everyone to have health insurance, coverage the law’s framers hoped would ease overuse of ERs as the newly insured went instead to primary care doctors for non-urgent health needs.
Drug makers pay their fair share? Three members of my family take daily prescription medication, and this guy—sorry, President this guy—wants to start d**king around with their bottom line?
Medical industry executives, meet Chrysler investors: make sure you ask to see their scars.
Let’s ask ‘em:
Hospitals and other medical-industry groups are pushing back against President Barack Obama’s proposal to cut $313 billion in government health spending as the White House intensifies its effort to revamp the nation’s health system.
…
The sharp response from the hospital industry, which under the proposal faces reductions in subsidies exceeding $100 billion over 10 years, illustrates the administration’s challenge in winning the deep concessions from industry needed to pay for the overhaul. After agreeing in May to contribute to a $2 trillion reduction in health spending over 10 years, the hospital industry is now bristling at the prospect of more givebacks — this time, cuts that would be set in law.
“We’re certainly disappointed,” said Rich Umbdenstock, chief executive of the American Hospital Association, an industry group. “It will be very, very difficult for hospitals to live with cuts of that magnitude.” He said what concerns the group is that the cuts were being laid out before lawmakers have agreed on concrete proposals for reducing the number of uninsured.
But passing laws without reading the bill is what Congress does.
BTW, we in Massachusetts are not the only model for Obama to copy:
New York City offers a window into what could happen when payments to safety-net hospitals are cut. Already running at a deficit, the city’s public hospital system is looking at $150 million in state Medicaid cuts for next year. Next month, it will close some outpatient services, such as community-based primary and preventive-care offices.
Need an MRI?
The Access to Medical Imaging Coalition, which represents makers of medical-imaging equipment, said the administration’s proposed cuts “will impair access to diagnostic imaging services and result in patients’ delaying or forgoing life-and-cost savings imaging procedures.”
And if you think you can just self-medicate until this national nightmare passes, think again:
The pharmaceutical industry recently has been negotiating with the White House and Congress over how much it would contribute to the cuts, said several people familiar with the negotiations. Drug companies were initially asked to contribute $100 billion over the next decade, but pressed for their contribution to be closer to $60 billion, they said. The industry argued that giving up too much in payments would cut into spending to develop new drugs.
“Otherwise we might all just become generic drug companies,” said one industry official familiar with the talks.
Great. We’ll be reduced to pushing our carts up and down the aisles of Rite-Aid, tossing in generic Chemotherapy bottles.
