You Bet Your Life: Why We Need a National Health Program Richard D. Quint, MD, MPH Health Sciences Clinical Professor of Pediatrics, Emeritus (UCSF) California Physicians Alliance Universal Health Care: The International Communist Conspiracy US National Health Program Efforts Pre-WWII • American Association for Labor Legislation, 1915 • Social Security, 1935 The Road to Employment-Based Private Insurance in the US The Provider - Insurer Pact • Health insurance plans initially sponsored by hospital and physician organizations • Hospitals and physicians wrote “costbased” payment rules 1943-1948: The Murray Wagner Dingell Bill Keep Politics Out of This Picture When the life – or health – of a loved one is at stake, hope lies in the devoted service of your Doctor. Would you change this picture? Compulsory health insurance is political medicine. It would bring a third party – a politician – between you and your doctor. It would bind up your family’s health in red tape. It would result in heavy payroll taxes – and inferior medical care for you and your family. Don’t let that happen here! 1965 • Medicare • Medicaid 1970-1974 Nixon vs. Kennedy Proposals The Watery Demise of Health Care Reform California Activism 1985-89 • Anti-patient dumping legislation • Proposals for Universal Coverage • Birth of California Physicians’ Alliance and Physicians for a National Health Program The sincerest form of flattery... Here Comes the AMA Again... 1994 Proposition 186 Number Uninsured California: 6.6 million PNHP, 2004; California Healthcare Foundation, 2005 Health Care Options Project (HCOP) • Convened by California Health and Human Services Agency in 1999 • Examined options for extending health care coverage in California • Analyzed and compared by consultants from The Lewin Group and AZA Consulting How do the HCOP Plans Compare? Incremental Example Pay or Play Example Universal Care Example Reduction in Uninsured 2.6 5.7 6.6 Change in Total Health Spending + $1.4 billion + $3.0 billion -($7.6) billion 2006: Where do we go from here? First, let’s look at what we’ve got High quality? Cost efficient? Ready for change? Overall Health System Performance The US ranks 37th out of the 191 WHO member states, placing it below Colombia, Saudi Arabia, and Portugal WHO 2000 World Health Report Lack of insurance increases morbidity and mortality • 18,000 excess deaths per year due to lack of health coverage • People without health insurance: – Receive less medical care and receive it later – Are sicker when diagnosed – Have 25% higher mortality rates – Earn less because of poorer health – 81% are from working families “Care Without Coverage”, Institute of Medicine, May 2002 “Sicker and Poorer”, Medical Care Research and Review, June 2003 Life Expectancy 81.8 80 78.5 78.4 U.K. Germany 79.4 79.7 79.9 France Canada Italy 77.2 75 70 U.S. Ranking: 21/30; OECD, 2005 Japan Infant Mortality per 1000 Births 8 7 7 6 5.4 4.8 5 4.7 4.2 4 3.9 3 3 2 1 0 U.S. Canada Australia Source: OECD Health Data 2005 Italy Germany France Japan MRI Units per Million People 40 35.3 35 30 25 20 15 10 5 2.7 4.2 8.2 8.6 U.S. Denmark 10.4 5.5 0 France Canada Germany Italy OECD, 2004 (2002 Data, U.S., Canada, and Germany are 2001) Japan % finding it difficult to get care How hard is it to get care? 30 28 25 21 20 15 15 15 New Zealand Australia U.K. 15 10 5 0 U.S. Canada Commonwealth Fund Survey, 1998 % with same doctor > 5 years Continuity of Care 100% 80% 60% 45% 52% 65% 65% Australia U.K. 57% 40% 20% 0% U.S. New Zealand Commonwealth Fund Survey, 1998 Canada Financing healthcare in the U.S. Individuals / Businesses Taxes Premiums Health Service Providers Direct or Out-of-Pocket Payments Medicare, Medicaid, etc. Government [payer] Provider Payments Public employees’ premiums Private Insurers [payers] |------Collection of funds-------||---------Reimbursement--------| Percent of GDP Spent on Health 2003 The Economist, January 27, 2006 Cost Excesses in the US • Administrative waste • Over-utilization of non-beneficial hightech care • Inadequate, inefficient primary care infrastructure • Excess pricing of pharmaceuticals D.McCanne, Quote of the Day, PNHP Health-care spending per capita, 2005 Japan U.K. Sweden France $2,139 $2,231 $2,520 $2,903 Germany $2,996 Canada $3,001 U.S. $5,635 $ Per Capita Source: OECD Health Data 2005 Health-care spending per capita, 2005 Japan U.K. Sweden France $2,139 $2,231 $2,520 $2,903 Germany $2,996 Canada $3,001 U.S. $5,635 $ Per Capita Source: OECD Health Data 2005 Insurance Overhead Spending $350 $ per capita $300 $250 $200 $150 $100 $50 $0 U.S. OECD, 2003 Canada France Australia Germany U.S. Overhead Spending 30% 26.5% 19.9% 20% 16.3% 10% 0% Medicare Non-Profit Blues Commercial Carriers International Journal of Health Services 2005; 35(1): 64-90 Investor-Owned Blues U.S. Overhead Spending 30% 26.5% 19.9% 20% 16.3% 10% 3.1% 0% Medicare Non-Profit Blues Commercial Carriers International Journal of Health Services 2005; 35(1): 64-90 Investor-Owned Blues HMO Overhead Spending 30% 21.2% 19.7% 18.9% 18.5% 17.3% 17.8% 20% 14.1% 10% 2.4% Managed Care Magazine July, 2003; Kaiser data: CMA Knox-Keane Report, May 2005 ai se r K et na A xf or d U ni te d H O ea lth ca re el lp oi nt W nt he m A Pa ci fic ar e C ig na 0% Which administrative costs should we reduce? Source: Kenneth Thorpe, 1992. Government Health Insurance for All, Even if Taxes Increase? No opinion 5% No opinion 5% Oppose 30% Favor 65% Pew Report, May 2005 The Institute of Medicine recommends that health-care should… • • • • Be universal: Everybody in, nobody out Be comprehensive and continuous Be affordable to individuals and families Use an insurance strategy that is affordable and sustainable for society • Enhance health and well-being by promoting access to high-quality care that is effective, efficient, safe, timely, patient-centered, and equitable Institute of Medicine Report, 2004 2006: What are Solutions? • Market (consumer driven health care) • Incremental Reform • More Major Reform (“national” health care, “universal” health care, “Medicare for All” or “single payer health care”) – California • SB 840 – US • HR 676 "Expanded & Improved Medicare For All Bill (Conyers)" What does Dobie Gillis have to do with healthcare in California? State Senator Sheila Kuehl (D, Santa Monica) California Single Payer SB 840 Eligibility • All state residents eligible. • Individuals lacking legal immigration status (i.e., “undocumented”) included if they document residence. California Single Payer SB 840 Benefits • • • • • Inpatient and outpatient ER visits All physician services Prescription drugs Laboratory and diagnostic tests • Mental health and substance abuse treatment • • • • Vision care, incl. glasses Hearing exams and aids DME Home health and adult daycare • Rehabilitation • Dental care Single payer financing: simplified Individuals / Businesses Direct or Out-of-Pocket Payments Health Service Providers CHIRA Taxes (SB 840) Government [payer] |------Collection of funds-------||---------Reimbursement--------| Projected Savings SB 840: 2006-2015 (in billions) Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Lewin Report, 2004 State/local 0.9 1.6 2.2 2.8 3.6 4.5 5.3 6.4 7.6 8.8 43.7 Total 8.0 12.3 17.0 22.4 28.4 35.0 42.2 50.2 59.2 68.9 331.3 Single payer financing: reality Individuals / Businesses Direct or Out-of-Pocket Payments CHIRA Taxes Premiums Health Service Providers (SB 840) Government [payer] Provider Payments Private insurers (noncovered services) |------Collection of funds-------||---------Reimbursement--------| California Single Payer SB 840 Administration • Health Care Agency • Elected commissioner • Statewide boards/offices: Health Policy; Consumer Advocacy; Medical Practice Standards. • … responsible for financial management of the system; establishing eligibility and benefits; negotiating reimbursement. California Single Payer SB 840 Delivery system • Private and public, as currently. • Fee-for-service and capitated (integrated health delivery systems such as Kaiser Permanente). Providers and participants choose one. • Maintains choice After SB 840: Anticipated Changes • • • • Decreased emergency room use Increased access to care Improved continuity of care Increased emphasis on preventative care and health education • More integrated systems? • Regionalization of high risk services? Advantages of single payer to… • Patients: – Improved health – Free choice of provider – Portability of coverage Advantages of single payer to… • Physicians – Restoration of clinical autonomy – Lower malpractice premiums – Improved patient care – Simplified billing Advantages of single payer to… • Businesses – Decreased health care costs – Level the playing field – Improved global competitiveness Potential disadvantages • Threat of underfunding by hostile government • Strength of special interests that would seek to undermine the system • Potential imbalance between quality controls and expenditure growth Potential disadvantages • Transition from current system will be difficult • Important tradeoffs: will America make them? – You can’t give every health care intervention to every person – Less choice in insurance plan – More government control for less private control Sounds Great…. How About Political Reality? What can you do? First, remember Pogo: What can you do? • Educate yourself and others • Organize sessions on universal health insurance • Participate in grass-roots organizing • Support universal health-care legislation • Write op-ed pieces, letters to editors • JOIN PNHP and CaPA What is CaPA? • The California Physicians Alliance, a chapter of Physicians for a National Health Program (PNHP) WWW.PNHP.ORG • CaPA’s goals are to: – Promote universal health access in California and the US – Protect the provider-patient relationship – Promote justice in health care • Basic assumptions are: – Health care is a human right – Equity in health care CaPA-Medical School Organizing Project capa@jps.net richardquint@sbcglobal.net Thanks to…… Bree Johnston, M.D., MPH (UCSF, CaPA) Kevin Grumbach, M.D. (UCSF, CaPA) Kao-Ping Chua (MS IV, Washington U.) Physicians for a National Health Program In Summary • Our health Care System is a Disgrace • Part of our Role as Professionals should be advocating for a system that serves our patients well • What Can We Do? – Urge our professional societies to support universal health insurance – Dispel Myths about “Government Run Health Care” – Join groups working for reform Results by Specialty Pediatric Subspecialty Psychiatry General Pediatrics General Internal Medicine Emergency Medicine Governmental Legislation to Establish NHI General Surgery Federal Government as Sole Payer for NHI Medical Subspecialty Obstetrics/Gynecology Family Practice Surgical Subspecialty Anesthesiology 0% 10% 20% 30% 40% 50% 60% Percent Supporting Ann Intern Med. 2003 Nov 18;139(10):795-801 70% 80% 90% 100% What would it look like? • Everyone gets a US NHI card • Complete choice of doctor and hospital • Doctors and hospitals remain independent • Govt processes and pays bills Other savings • • • • No more co-pays No more deductibles No more premiums NO MORE OUT OF POCKET EXPENSES Summary: Universal health care… • • • • Leads to better outcomes Would cost no more or save money Americans want it So do MDs, but won’t come out for a single-payer approach • Can be accomplished in California California Single Payer SB 840 Cost-sharing • No cost sharing for 2 years. • After 2 years, cost-sharing option with limits of $250 per person/$500 per family per year. • Exemption for individuals who meet income rules, and for prevention. “Would you prefer the current system or Universal Health Insurance…” Don't Know, 6% Current, 32% NHI, 62% Washington Post/ABC News Poll, 10/20/03 Managed Care: • Another Socialist Conspiracy: – Prepaid Group Practices • Nixon-Ellwood Conservative Reinvention: – HMOs Inpatient Days per Capita 1.4 1.2 1.2 1.0 1.0 Canada Australia 1.1 1.1 U.K. France 1.0 0.8 0.7 0.6 0.4 0.2 0.0 U.S. OECD, 2004, (2001 Data) Switzerland Impact of SB 840 on State and Local Government Health Spending: 2006-2015 (billions) Current Spending Net Transfer to Single-Payer Net Savings 2006 $18.7 $17.7 ($0.9) 2007 $20.0 $18.4 ($1.6) 2008 $21.4 $19.2 ($2.2) 2009 $22.9 $20.1 ($2.8) 2010 $24.5 $20.9 ($3.6) 2011 $26.3 $21.8 ($4.5) 2012 $28.2 $22.9 ($5.3) 2013 $30.5 $24.1 ($6.4) 2014 $32.8 $25.2 ($7.6) 2015 $35.2 $26.4 ($8.8) Lewin Report, 2004 2005: Where are we now, and are we ready for universal healthcare? • Eroding safety net • Market (consumer driven health care) • Reform Proposals – California • Children’s “100% Campaign” • SB 840 – US • The United States National Health Insurance Act (HR676 - Conyers) ("Expanded & Improved Medicare For All Bill") • Physician’s Proposal (PNHP) Gov’t Insurance for All, Even If Taxes Increase Liberals Dis. Dem. Con. Dems Disaffect. Oppose Favor Upbeats Pro-Gov. Con Soc. Con. Enter. Total 0 Pew Survey, 2005 20 40 60 80 100 What About MDs? 1. Support or oppose governmental legislation to establish national health insurance? 2.Support or oppose a national health insurance plan where all health care is paid for by the federal government? Ann. Intern. Med. 2003 Government Legislation to Establish NHI Oppose Strongly Strongly 40% Support 49% Generally Generally Neutral 11% Ann Intern Med. 2003 Nov 18;139(10):795-801 Government as Single Payer Strongly Strongly Oppose Support 25% Generally Generally 60% Ann Intern Med. 2003 Nov 18;139(10):795-801 Neutral 14% Percent of Children Immunized (MMR) 100.0% 84.5% 85.9% U.K. France 91.6% 94.5% 99.0% 100.0% Canada Denmark 80.0% 60.0% 40.0% 20.0% 0.0% OECD, 2004, (2002 Data) U.S. Japan Infant Deaths by Income 8 6.5 7 6 5 4 4.7 5.1 6.8 5.2 3.9 3 2 1 0 Wealthiest 20% Middle 20% Poorest 20% U.S. Average EDUCATE & ADVOCATE When a Political Opening Comes, MOVE FAST!! WORK FOR INCREMENTAL REFORMS Myth: Canadians don’t get mental health services Percent receiving care 60 52.3 50 37.1 40 U.S. Canada 26.3 27.7 30 20 11.3 10.4 10 6.3 3.4 0 No disorder Mild Disorder Health Affairs 2003; 22(3): 128 Moderate Disorder Severe Disorder By What Criteria Should We Judge Reform Proposals? Institute of Medicine Report: 2004 • • • • • Health care coverage should be universal. Health care coverage should be continuous. Health care coverage should be affordable to individuals and families. The health insurance strategy should be affordable and sustainable for society. Health insurance should enhance health and well-being by promoting access to high-quality care that is effective, efficient, safe, timely, patient-centered, and equitable. Universal healthcare should… • • • • • Cover everybody Be comprehensive and continuous Be simpler – one payer, one plan Be accountable – transparent and public Maintain choice Institute of Medicine Report, 2004 How would such a system contain costs? • Set Budget • Health planning • Negotiate reimbursement • Formulary • Prevention • Simplify Administration profile of the uninsured • • • • • • • 45.5 million non-elderly Americans in 2004 64% from low-income families 81% from working families 80% are adults 52% are ethnic minorities 79% are American citizens More likely to be employed in small businesses, service industries, and blue-collar jobs You Bet Your Life: A Marxist Approach to Health Care in the U.S.? (Or Why We Really Need a National Health Plan) Richard Quint, M.D., M.P.H. California Physicians Alliance Number of Uninsured in the US 40 35 30 25 20 15 10 5 Source: US Census Bureau, Current Population Surveys 1990 1985 1980 1975 0 National Health Programs • Germany: 1883 • UK: 1912, 1948 • Canada: 1947, 1971 • Japan: 1922, 1961 1992 Health Care Reform: “An Aura of Inevitability” -George Lundberg, JAMA A NATIONAL HEALTH PROGRAM FOR THE UNITED STATES: A Physicians' Proposal DAVID U. HIMMELSTEIN, M.D., STEFFIE WOOLHANDLER, M.D., M.P.H., AND THE WRITING COMMITTEE OF THE WORKING GROUP ON PROGRAM DESIGN New England Journal of Medicine 320:102-108 (January 12), 1989 The Human Cost: Personal Bankruptcies* 54% 46% *N=1771 bankruptcy filers Health Affairs, February 2, 2005 Medical Other Myths About US Health-care • It’s the best • A national health program would be more expensive • Americans don’t want change Myths about US health-care • Better outcomes under national health programs • A national health program would be more expensive • Americans don’t want change Four scenarios: Spending reductions 2006-2015 (billion) 1200 1000 800 600 400 200 0 Mandates Expansion National Coalition on Health Care, May 2005 FEHB Single-payer Myths about US health-care • Universal healthcare leads to better outcomes • Universal health care would save money • Americans don’t want change Summary: Universal health care… • • • • Leads to better outcomes Saves money Americans want it What are the prospects for changes? FINANCING UNIVERSAL HEALTHCARE Rx MEDICARE EYE CARE MEDICAID EMPLOYER PAYROLL TAX SINGLE PAYER HEALTHCARE FUND $$$$$$$$$$ DOCTOR EMPLOYEE PAYROLL TAX Objectives: Understand… History of universal healthcare movement Current state of US health-care system Universal health insurance legislation in California