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Stakeholder Mistrust

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Mayo Clinic Rejects Accountable Care Organization(ACO) Provisions

 

Stanley Feld M.D.,FACP,MACE

 

The sooner President Obama’s Healthcare Reform Act (Obamacare) is repealed the faster we will be able to get on with healthcare reform that will work for all stakeholders. President Obama was figured that 30 existing and successful integrated medical care organizations would be in the first group of clinics to join and be included in his Accountable Care Organization (ACO) system of care.

ACOs are a critical part of Obamacare’s goal to provide affordable, universal and quality healthcare. ACOs are really HMO’s on steroids. ACOs are supposed to be better versions of HMO’s.  The public and physicians despised HMO’s because of its control over patient choice and access to care.  President Obama thinks Medicare will save over $500 billion dollars a year with ACOs.  Unfortunately for President Obama, neither the CBO nor the Medicare actuaries believe it.

So far at least 4 of President Obama’s premier integrated healthcare organizations have withdrawn from applying for ACO status. The stage 2 ACO regulations produced by CMS and CMS’s chief Dr. Don Berwick make clear President Obama’s intentions to control medical care and shift the risk of care to hospital systems and physicians.

Each organization has withdrawn with a slightly different excuse. It looks are if no one is going to show up at President Obama’s party.  

 “The Mayo Clinic says it will not be part of a critical piece of national health care reform under the government's proposed rules.”

 The Mayo Clinic announced that the proposed regulations “conflict with the way it runs its Medicare operations.” Mayo treats about 400,000 Medicare patients a year. The bottom line is that Mayo figured out that they would assume too much risk, lose too much money and relinquish too much control over its processes to the federal government.

Dr. Douglas Wood, Mayo's chairman of health care policy and research said Mayo "is not going to participate in a Medicare accountable care organization under the circumstances proposed."

Mayo Clinic’s public reasons as expressed by Dr. Wood are;

 

  1. Mayo does not want to significantly change what it believes is an efficient, patient-friendly program. President Obama has used Mayo’s program as an model.
  2. The gap between Mayo's way of staying accountable and the government's regulations may prove too wide to bridge.

3. Mayo objects to the government's demand that patients be included on oversight boards to judge performance. Mayo doesn't do that now and is not eager to change. Dr. Wood said, "You don't have to have a [patient] on the board to make [treatment] patient-centered,"

4. The Mayo Clinic’s lawyers decided that the antitrust rules that are part of the ACO proposal would be violated. Mayo already provides most of the health care in most of Minnesota's rural counties. Dr. Wood believes it could not operate ACOs in those areas without violating the proposed regulations.

5. The Mayo Clinic objects to the way the government plans to measure effectiveness and quality of medical care. The effectiveness measures proposed by the government include such things as 30-day mortality statistics and the number of diabetes treatments.

The Mayo Clinic believes that the way CMS proposes to measure quality will be ineffective. They will only waste money without improving outcomes.

"They don't get you close to measuring health," Wood maintained. "The simplest measure for consumers is: How effectively did the organization keep me functioning?

    6. Mayo Clinic also objects to the CMS’ way of assigning patients to ACOs.

Mayo is confident in its current approach to accountable care. It has asked CMS "to take an entirely different approach to implementation of ACOs in the country." Mayo wants the government to contract directly with groups that are already providing accountable care programs.

"We're not looking to intentionally give [health care reform] a black eye," Wood said. "We're working to implement accountable care."

President Obama’s healthcare team has stated that they are not going to be influenced by Mayo’s practical demands. They will decide on the correct course based on their theoretical ideology. 

Elliott Fisher, director of population health and policy at Dartmouth Institute in New Hampshire as spokesman for the administration said,

"Every affected stakeholder said it's not good enough yet," Fisher said. "This is how the process is supposed to work."

Dr. Fisher is statement is meaningless and non-committal.  

 Michael E. Chernew, PhD is a Professor of Health Care Policy in the Department of Health Care Policy at Harvard Medical School. He is a disciple of Dr. Donald Berwick and a member of the Medicare Payment Advisory Commission (MedPAC), which is an independent agency established to advise the U.S. Congress on issues affecting the Medicare program. He is also a member of the Institute of Medicine’s Committee on Determination of Essential Health Benefits.

 He said in response to Mayo’s announcement, "I don't think the success or failure hinges on one participant."

Mayo’s Clinic decision was the correct one. CMS wants to control every aspect of medical practice. It wants to shift the risk of care to the providers and control the criteria to judge providers. It is a no win situation for providers. “Cooperative” providers are finally starting to understand the trap President Obama has set.

The best way to win a war is not to show up.

 

 

 

 

 

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Paul Ryan Will “End Medicare As We Know It

 

Stanley Feld M.D.,FACP,MACE

 

The battle cry of the Democratic Party in its opposition to Paul Ryan’s Medicare plan is “It Will End Medicare As We Know It.” 

If you are told a lie enough times it becomes the truth.

Paul Ryan’s plan will not end Medicare, as we know it for people over 55 years old. I do not know how many times Mr. Ryan Has to repeat his point.

Paul Ryan’s plan is not going to push grandma off the cliff.

President Obama’s Healthcare Reform Act and the Democratic Party have already “Ended Medicare As We Know It” in 2011. The changes in Medicare will only get greater when fully implemented in 2014.

How has “Medicare Ended As We Know It” under President Obama?

1.    President Obama’s Healthcare Reform Act cut $145 billion over 10 years from Medicare Advantage. The cuts start in 2012, at first slow and then build up yearly. Insurers are going to shift the burden of payment from government to beneficiaries in the form of fewer services and higher out-of-pocket costs. Insurers will then stop offering Medicare Advantage coverage.

In April, President Obama used another trick political move to appease seniors who have Medicare Advantage coverage. He is going to give a  $6.7 billion dollar bonus to above average Medicare Advantage plans. The bonus is only 4.6% of the total Medicare Advantage cut and will only be good until 2015. I wonder when he is going to realize that seniors are not stupid and another trick will not work to gain political favor. 

2.    Medicare deductibles have increased as has the cost of base premiums and means tested premiums for Medicare Part B. Medigap premiums have also increased. Nevertheless, the most recent Medicare trustees’ report declared the system is going be bankrupt in thirteen years, five years earlier than predicted last year. They have used the term unsustainable.         

3.     Tim Geithner explained  the reason the alarming update was the result of "technical changes in the economic assumptions underlying the projections."  "We were counting on our economic policies actually working”.                                                                                              

Richard Foster the Medicare actuary said this would happen before we saw the failure of President Obama’s economic policies.

Paul Krugman wrote an article entitled “ Medicare Is Sustainable In Its Current Form”. He then goes on to describe sustainable in its current form.

4.     “Medicare American-style is very open-ended, reluctant to say no to paying for medically dubious procedures, and also fails to make use of its pricing power over drugs and other items.”  Paul Krugman is saying government should say no to paying for government defined dubious procedure. The Democrats made that mistake in paying for “dubious procedures” with the Medicare entitlement program at the onset. Patients should decide on “dubious procedures” with government input and not government.

5.  "So Medicare will have to start saying no; it will have to provide incentives to move away from fee for service, and so on and so forth." My interpretation of this statement is government will have to start restricting access to care, interpret the value of care and pay providers a lump sum rather than fee for service for their services to patients.

6.     "But such changes would not mean a fundamental change in the way Medicare works". I do not get it. Paul Krugman’s statement means it changes Medicare as we know it, doesn’t it? Doesn’t Accountable Care Organizations mean it changes Medicare as we know it?

President Obama, America’s seniors are not stupid.

7.     "So this business about Medicare in its present form being unsustainable sounds wise but is actually a stupid slogan. The solution to the future of Medicare is Medicare should be smarter, less open-ended, but recognizably the same program.”  Republican politicians did not introduce the term unsustainable. The Congressional Budget Office and Medicare Actuaries and the Medicare Trustees introduced the term before Paul Ryan’s plan existed. Paul Krugman is incorrect.

The difference in philosophy between Republicans and Democrats is clear. Both sides are proposing to "end Medicare as we know it."  President Obama has done it already.

Paul Ryan and the Republicans are offering solutions to give individuals more control over their healthcare decisions. Paul Krugman and the Democrats are suggesting and implementing changes to give the government more control over individuals and their healthcare decisions.

Americans must understand the problems Medicare faces. They must see through the Democrats’ demagoguery.    

I believe my position is a libertarian position if labels are needed.  Only the consumer will solve our healthcare systems problems. Government must empower consumers to make choices about their health and healthcare. The government must give consumers control of there healthcare dollars. If the government did this it would generate competition for among stakeholders for consumers healthcare dollars. These actions would cleanse the dysfunction of the healthcare system rapidly.

 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

 

 

 

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A More Logical Plan Than “Obamacare”

 

Stanley Feld M.D.,FACP,MACE 

I do not think President Obama understands basic healthcare economics. Patients and physicians will always drive spending for healthcare. The government will not be able to control spending centrally.

Forty to sixty cents of every healthcare dollar is spent on administrative costs. CMS claims that Medicare spends only 2.5% on administrative services.  This 2.5% is the cost for CMS to outsource Medicare coverage to the healthcare insurance industry.

The healthcare insurance industry takes 40% to 60% of every healthcare dollar for their administrative fees. The law says they can only take 15% out of every dollar for administrative fees. Eighty five percent of the premium dollar must go to patient care. 

 The problem is the 85% includes many fees that are, in reality, administrative expenses such as certifying physicians for their plans and insurance sales fees among others. There is a profit margin for each of these “expenses.” President Obama has permitted these administrative fees to be included in the 85% category for direct healthcare costs.

Physicians get 15% and hospitals get 20% of every healthcare dollar. Where does the rest of the money go?

Forty percent gets taken off the top by the healthcare insurance industry. A good place to start is by setting up a system that creates competition among the healthcare insurance companies. 

The government always blames physicians for the waste. Physicians and patients drive healthcare expenses. Waste occurs as a result of perverse incentives and middlemen abuse. All the stakeholders are to blame. The healthcare insurance industry generates the most waste. Defensive medicine is the second leading cause of waste. Legislation using common sense could eliminate most of this waste.

"A 2005 report by the National Academy of Engineering and the Institute of Medicine found that 30-40 cents of every dollar spent on health care are spent on costs associated with "overuse, underuse, misuse, duplication, system failures, unnecessary repetition, poor communication, and inefficiency. Medicare is especially vulnerable to waste, fraud and abuse.”

Medicare spending must be decreased. The best way to decrease the spending is to provide incentives for seniors to drive the system rather than the system driving seniors.

 “Unfortunately, the debate on Capitol Hill and in the media is too often fueled by partisan fear mongering instead of a thoughtful examination of the facts.” 

No amount of price cutting or central-government dictates will mitigate these problems.

A consumer (seniors) driven healthcare system providing incentives for providers and patients is the only way to fix the system.

Accountable Care Organizations (ACOs) are being proposed and organized to harness the spending of the fee for service systems.

ACOs are systems in which doctors and hospitals team up to offer coordinated care. Both are held accountable for cost and quality in a disguised capitation system. “Quality” is not effectively measured.

 Hospital systems and physicians have long had an adversarial relationship because hospital systems have leveraged its brick and motor value off the intellectual property and mechanical skills of physicians.

More and more physicians are realizing this fact. Physicians are building their own hospitals and outpatient surgical clinics. Physicians are consciously or unconsciously resistant to hospital systems dividing the money and participating in the reimbursement sharing judgments.

Neither group wants to be at risk for “poor outcomes” that might be the patients’ fault.

The incentives to form ACOs are too weak. The regulations are 400 pages too long and complicated.  Physicians do not have the time or money to fully understand the regulations.  “Trust me” does not work anymore.  The major hospital systems have backed out of forming ACOs under the regulations because they put the hospital system at too great a risk.

Paul Ryan’s plan of “premium support” can potentially encourage formation of Accountable Care Organizations The ACOs have to be attractive enough for patients to choose to join them. Hospital systems would have to be successful in organizing them.  Ryan’s plan is a “managed competition model.”  The government would make defined contributions for beneficiaries depending on the beneficiaries’ means. The subsidy would be a total subsidy for the poor and a sliding scale subsidy for others.

Beneficiaries would have a choice from a variety of health plans with no discrimination based on health status or wealth. Standard coverage contracts understandable by ordinary people would be required to make comparisons possible. Internet FAQs would be made available.

Competition for consumer (seniors) business would drive health plans to innovate in ways that would cut waste and improve “quality.” The use of well-designed healthcare insurance exchanges would drastically reduce healthcare insurance company marketing costs. The completion by healthcare insurance companies in effective healthcare insurance exchanges could result in healthcare insurance companies not taking 40% off top as they currently do. The system could be set up so that consumers could buy the insurance across state lines.

The Ryan plan does not deal with defensive medicine. States could easily be presented with an ideal tort reform model to adopt or modify. In Texas the model is not ideal but it is effective and would be effective nationally. If a model included a “loser pays” clause it would decrease frivolous law suits and decrease defensive medicine testing dramatically. In most instances physicians do not receive increased compensation for the increase in testing. Therefore the motivation is not testing simply to make more money.

President Obama needs to understand the basics of healthcare economics before he goes on and totally destroys the healthcare system.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

 

 

 

 

 

 

 

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Medical Care Should Not Be About Politics.

 

Stanley Feld M.D.,FACP,MACE

On May 30,2011, an article was published in the New York Times entitled “As Physicians’ Jobs Change, So Do Their Politics.”

This article has been reproduced multiple times in multiple blogs. The New York Times article leads readers to misleading conclusions based on inaccurate facts.  I felt the story was insignificant and passed it by. After I received a few comments about the story, I decided to critique it.

The author quotes a Maine State Senator who proposed a tort reform bill.

State Senator Lois A. Snowe-Mello offered a bill in February to limit doctors’ liability that she was sure the powerful doctors’ lobby would cheer. Instead, it asked her to shelve the measure.”

“It was like a slap in the face,” said Ms. Snowe-Mello, who describes herself as a conservative Republican. “The doctors in this state are increasingly going left.”

Tort Reform should not be a political issue. It is a medical care issue. I described the Massachusetts Medical Society survey on defensive medicine in the past. By extrapolation of the survey facts between 300 billion and 700 billion dollars is wasted on defensive medicine per year. This does not include the wear and tear of frivolous lawsuits on patients and physicians.

The Maine Medical Association does not have the position quoted by Senator Lois A. 

“We are a coalition of three Maine health care associations collaborating to protect the public’s access to quality care and to restrain the inflation of health care cost. We hope to accomplish what many other states have already done by reforming liability laws so that your physician remains in Maine and the best new doctors continue to come here to practiceVictims of negligence deserve compensation and it not our intention to deny these patients their rights. But the liability system must be restructured to be fare to all.”

The article goes on to say’ Doctors were once overwhelmingly male and usually owned their own practices. They generally favored lower taxes and regularly fought lawyers to restrict patient lawsuits.” 

But doctors are changing. They are abandoning their own practices and taking “salaried jobs” in hospitals, particularly in the North, but increasingly in the South as well. Half of all younger doctors are women, and that share is likely to grow.”

There are no national surveys that track doctors’ political leanings, but as more doctors move from business owner to shift worker, their historic alliance with the Republican Party is weakening from Maine as well as South Dakota, Arizona and Oregon, according to doctors’ advocates in those and other states.”

There are several implications is these few sentences that would lead readers to conclude that;

  1. President Obama is correct in ignoring Tort Reform because as physicians become more “liberal” they side with the plaintiff attorneys’ arguments about the value of litigation. The article ignores the increase in medical care costs resulting from defensive medicine and malpractice insurance.
  2. Physicians who are taking “salaried jobs in hospitals” have no interest in protecting themselves against frivolous lawsuits.  The implication is malpractice is now the hospital’s problem. It implies that defensive medicine will decrease.

(The reference sited under hospitals is inaccurate. It has nothing to do with physicians being salaried by hospitals.) There are many problems and conflicts between physicians and hospital starting to surface (previously discussed) with hospitals buying physicians’ practices and deciding on the value of physicians in the healthcare system.

  1. As more physicians become shift workers rather than owners they are becoming more liberal.

(There is no discussion about why many physicians are joining hospital systems.)

       4. It implies that women are lazy and do not want to own medical practices.

        5.  Since physicians are more liberal they therefore believe “Obamacare “ is    good for America. 

The Maine Medical Association does not believe in any of these implications. Its statements are clear. It understands that physicians are driven out of the state because of the lack of malpractice reform. It has a declining number of physicians practicing in the state and the cost of care is increasing while the quality of care is decreasing.       

Our coalition is seeking to advance medical liability reform to preserve access to physician services, improve the affordability of health care and ensure high quality care in Maine.

Across the country, America’s patients are losing access to care because the nation’s out-of-control legal system is forcing physicians in some areas of the country to retire early, relocate or give up performing high-risk medical procedures. There are now 21 states in a full-blown medical liability crisis — up from 12 in 2002. In crisis states, patients continue to lose access to care. In some states, obstetricians and rural family physicians no longer deliver babies. Meanwhile, high-risk specialists no longer provide trauma care or perform complicated surgical procedures.”

 These statements contradict the accuracy of the article. However, the media is the message. The New York Times represents the traditional media. With its bias it drives this disinformation or misinformation front and center. Readers accept the bias and do not think critically.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone. 

 

 

 

 

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Let Us Forget Demagoguery And Face Facts!

 

Stanley Feld M.D.,FACP,MACE

I understand that President Obama wants to win the election in 2012. He will do everything in his power to win it.

I understand politicians do everything to spin an issue in their favor to win an election. 

I know that politicians believe many issues are too complicated for Americans to understand. The reason we elect government officials as our surrogates is for them to understand the issues and vote for our vested interest. 

How many congressmen read President Obama’s entire healthcare bill and believe they voted for citizens’ vested interest? I bet the answer is not many.

I have pointed out how President Obama presented the CBO with false assumptions to manipulate budgetary conclusions. Appointed CBO officials and Medicare actuaries find President Obama’s conclusions difficult to believe.  

Finally, a congressman has stood up and said let us look at the facts, America must face where we are headed. It is his responsibility to the American people to explain these facts. Americans are capable of understanding these facts and the consequences of the facts. Paul Ryan believes in the intelligence of the American people.

The trick is to get Americans to listen. I used to worship the New York Times. It was the place to get the facts. It has become biased.

At a recent party politics became a hot topic. The discussion was about the Republicans not having a candidate able to beat President Obama in 2012. People quoted articles from the New York Times and Time Magazine as the ultimate authority.

I was very quite. I was quiet because I could not believe that intelligent people would believe the hogwash they were quoting. President Obama has had a terrible record. Just look at President Obama’s economic policy, foreign policy and healthcare policy. 

Here are a couple of examples in two recent New York Times editorials;

"Rep. Ryan’s Dubious Sales Pitch"

Published: May 29, 2011

"Representative Paul Ryan is rebutting critics of his plan to turn Medicare into a “premium support” program, pointing to two existing programs that he says prove 
his approach would be better for beneficiaries. Don’t believe it."

My immediate reaction looking at the editorial while eating breakfast was, “I got it.” “Paul Ryan’s plan is no good. The media is indeed the message. Forget about critiquing the details. 

The second article was more subtle.

Published: May 28, 2011

Republican leaders in the Senate have spent weeks gleefully deriding the Democrats who run the chamber for not producing a budget proposal in more than two years. It is a classic tactic, designed to deflect attention from their party’s toxic plan to privatize Medicare. 

In the second quote it is a given that the Ryan Plan is toxic. Again, no facts. If the New York Times said so, the Ryan Plan must be toxic. 

No one at the party I mentioned has yet to be affected by President Obama’s policies yet. I am sure they will start paying attention to his policies when his policies affect their life, standard of living, and freedoms.

President Obama is building the infrastructure to affect all of the above. As he is building the infrastructure he and the Democratic Senate are bankrupting the country.

I have not seen tremendous support by the Republicans for Paul Ryan’s budget.

Paul Ryan’s budget does not attack entitlements in the near term. It attacks the government waste President Obama’s own National Commission on Fiscal Responsibility and Reform pointed out.

It is best to hear from Paul Ryan himself. Paul Ryan’s goal is to help Americans become less dependent on government, not more dependent.

Government should make rules that level the playing field for all stakeholders in all areas and then get out of the way. It should enforce the rules equally and fairly. 

To my chagrin only 256 people watched this You Tube announcing the Ryan Plan. In announcing the budget Mr. Ryan points out the path to disaster President Obama is heading us into.  He then goes on to describe the path to prosperity we must take. 

If you want to hear what Paul Ryan really has to say rather than having it editorialized by the New York Times and the traditional media, it is worth watching this You Tube.



 
 

 

The facts are more important than hearsay.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone. 

 

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You Cannot Lead Without A Posse

 

Stanley Feld M.D.,FACP,MACE

Paul Ryan has been one of a few Republicans that has demonstrated the belief in what is right rather than what is politically expedient. I thought the Republican caucus understood his budget plan and were behind it.

Republicans cannot talk about being fiscally responsible and act frightened.  They are acting frightened by  Democratic Party *“Demagoguery

It looks as if Paul Ryan has been left without a posse. The Republicans should be explaining what would happen if the status quo on the Medicare entitlement spending remained. They should be explaining how the Ryan plan will save entitlement from default.

The Democrats are not explaining how Paul Ryan’s Medicare plan will destroy Medicare.

Two important events occurred this week to further scare the Republican caucus from acting responsibly.

The first was the election of a Democrat in a traditional Republican stronghold in upper New York State.  The Democratic candidate used scare tactics saying the Ryan plan and hence the Republicans are going to destroy Medicare.  She never offered an explanation of how it would destroy Medicare. The Ryan plan is designed to save Medicare.

Neither the Republican candidate nor the Republican caucus stepped up to say why this is false. The Republican candidate deserved to lose. The Democrat won by default.

The second event this week was the Ryan Plan, which passed in the House, was defeated in the Senate. Worse is that six Republican Senators voted against the proposal without public explanation.

“Republicans voting against proceeding to the GOP proposal had raised concerns about the Medicare reform or other provisions – Sen. Scott Brown of Massachusetts, Sen. Lisa Murkowski of Alaska and Sens. Susan Collins and Olympia Snowe of Maine. Sen. Rand Paul of Kentucky said the proposal did not make steep enough cuts.”

Horrifying to me was the smirk on Harry Reid’s face as he pretended to be the savior of middle class seniors. Nothing could be further from the truth.

Reid
  

The truth is Medicare is unsustainable in its present state. There hasn’t been an economist or government agency that has disagreed. President Obama has ignored these predications in forcing the passage of his Healthcare Reform Act. Medicare will collapse and disappear.  There will be restricted access to care and rationed care.

Seniors must be empowered to be responsible for their own healthcare either independently or by the government. Consumers must drive a market driven healthcare system.  

Seniors can control the onset of the complications of their chronic disease. They can do it with early behavioral changes such as stopping smoking, stopping alcoholic intake, losing weight, exercising regularly and adhering to medical treatment regimes. The government cannot legislate changes in behavior. It can motivate and incentivize behavioral change.  

"Their Republican, radical proposal would end Medicare as we know it," said Sen. Patty Murray (D-Wash.), the chairwoman of the party's campaign committee. "We're not going to stop talking about this in states across the country."  

It is not funny. There is agreement that Medicare is not fiscally sound. Senator Patty Murray is saying Democrats do not want a fiscally unsound Medicare program to be changed.

Senator Patty Murray is saying in effect, Democrats, are going to beat the Republicans in 2012 because we are going to support this ongoing unsound Medicare program until it will bankrupt America.

Isn’t this an insult to the intelligence of the American people.  Democrats must really think Americans are stupid.

President Obama wants to win reelection. Obamacare is unpopular. He could lose on this issue alone. He is cleverly trying to distract Americans from his unpopular program and make Paul Ryan’s plan unpopular. He has no facts about any defects in Ryan’s plan. He is using scare tactics.

Paul Ryan has a different view. He thinks Americans are smart. Americans want an opportunity to be responsible for themselves. They do not trust government to make their healthcare decisions.

I believe Americans can understand complicated facts. The government has an obligation to today’s seniors and future seniors to put Medicare on a sound financial footing.

Paul Ryan’s You Tube of May 25th says it all. I know the American people can understand it. I hope the traditional media gives him and other Republican an opportunity to explain his plan.

I hope Republican politicians are not frightened away by the spin misters and their influence on polls.

Paul Ryan needs a posse!!

 



 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone. 

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“We’re Saving Medicare Not Destroying It”

 

 Stanley Feld M.D.,FACP,MACE

The week Paul Ryan replied to the Democratic Party’s spin misters and to the bias of the traditional media.   

Everyone will agree America has an unsustainable increase in deficit spending during the Obama administration. It has amounted to 4.7 trillion dollars. America has raised the debt ceiling at least three times in the last two anda half years. China is buying our debt at a very low interest rate. China can force us to raise our interest rate by selling our bonds and moving the cash to higher yielding assets. If the interest rate increases the cost of borrowing will be higher and our deficit will be even greater.

The government must decrease spending. There is tremendous waste in government spending. President Obama has not done much to decrease duplication of agency spending or decreasing entitlement spending. He has ignored the recommendation of his own deficit reduction committee.

President Obama’s Healthcare Reform Plan increases entitlement spending not decreases it. The action he has taken in his Healthcare Reform Act has increased costs and decreased efficiencies already. The CBO has warned us of the need to be fiscally responsible.  

President Obama has been ignoring the warnings.  Medicare is carrying $24.6 trillion in unfunded liabilities through 2085, and chief Medicare actuary Richard Foster says even that does "not represent a reasonable expectation for actual program operations." 

Our major entitlement programs, Social Security and Medicare and Medicaid are fiscally defective in different ways. These programs have to be made fiscally sound in somehow.  Their percentage of America’s GNP grows yearly and is unsustainable.

The fact that 50% of the population pays no taxes and consumers most of the entitlement spending means our population is becoming poorer and that the redistribution of wealth is becoming greater.

The middle class is the real victim.

Paul Ryan and his budget reduction plan has been attacked again this week by none other than Newt Gingrich.  Mr. Ryan’s reply was “With friends like this who needs enemies.”

Newt made a big mistake. I do not believe he understands the Ryan Plan. He has been back pedaling all week.

President Obama, Democrats in congress, liberals and the traditional media do not want to understand Paul Ryan’s plan. His plan is common sense. If only the public was given the opportunity by the traditional media to understand it they would agree.

 I do not believe Republican congressmen and women and the Republican National Committee has the courage and the skill to neutralize Democratic demagoguery*. The Republicans are afraid of losing the election in 2012. They are afraid the public believes they are “destroying Medicare.”  Paul Ryan’s plan is  not destroying Medicare. The Republican Party should be helping the public understand the facts and the advantages of the Ryan plan. It is a plan that will save Medicare not destroy it. 

 

*“Demagoguery  is a strategy for gaining political power by appealing to the prejudicesemotionsfearsvanities and expectations of the public—typically via impassioned rhetoric and propaganda, and often using nationalistpopulist or religious themes.  

Paul Ryan said on Meet The Press last week,

If I can put it in a nutshell, we're saying: Don't affect current seniors,” Ryan told host David Gregory of his party's Medicare-reform plan. “Give future seniors the ability to deny business to inefficient providers. As a contrary to that, the president's plan is to give the government the power to deny care to seniors by empowering a panel of 15 unelected bureaucrats to put price controls and rationing in place for current seniors.”

Paul Ryan has hit the nail on the head.  Obamacare is destined to fail as I have pointed out in this blog over and over again. We are seeing this failure even before complete implementation of the act. We have seen over 1300 waivers, almost 300 new bureaucratic agencies, and tremendous increases in healthcare insurance premiums. Seniors are starting to see a decrease in access to medical care.

 Paul Ryan went on to point out,

“So I would argue that the opposite is true: We're being sensible, we're being rationale; we're saving this program. And you cannot deal with this debt crisis, David, unless you're serious about entitlement reform. And unfortunately, I think we're going to have ‘Mediscare' all over again, and that's unfortunate for the country.”

David Gregory said he has heard privately from Republicans that they're “scared to death” about the politics of what Ryan is proposing, and that he is handing over a huge issue to the Democrats.

“Of course people are scared of entitlement reform,” Ryan said. “Because every time you put entitlement reform out there, the other party uses it as a political weapon against you.”  

Paul Ryan said we must get serious about the drivers of our debt.

 “And the irony of this is all: If we don't fix these programs, people who rely on these benefits are going to get cut the first. They're going to be hurt the worst under a debt crisis. We're saying if we fix this now, we can keep the current promise to current seniors and people 10 years away from retiring. If we allow politics to get the best of us, if we allow demagoguery to sink in, and do nothing, then we will have a debt crisis and current seniors will get hurt.”

 Paul Ryan is absolutely correct. I hope the Republicans do not chicken out. The Democrats are trying to scare them. Remember, the Democrats and bureaucracy got us into this mess in the first place.

 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone. 

 

 

 

 

 

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Organized Medicine Is Out Of Touch With Practicing Physicians.

 

Stanley Feld M.D.,FACP,MACE

There is a widespread discrepancy between the opinions of organized medical group leaders in the American Medical Association (AMA), the American Academy of Family Physicians (AAFP), the American College of Physicians (ACP), and  practicing physicians.  AMA, AAFP, and ACP are part of organized medicine.

These organizations supported the healthcare reform law in 2010 and continue to support the legislation. I believe they have taken this position because they want a seat at the table as implementation of the legislation moves forward. President Obama has not paid attention them so far and there is little evidence that he will in the future.

In March of 2010, Speaker of the House Nancy Pelosi famously said, "We have to pass the [health care] bill so that you can find out what is in it."  

Most physicians are starting to realize the implications of President Obama’s Healthcare Reform Act (ACA) (Obamacare). They are terrified about the implications for the practice of medicine.

Organized medicine is still not disenchanted with President Obama’s Healthcare Reform Act. Charles Cutler, MD, chair of the ACP Board of Governors said recently,  "The medical community recognizes that so much of the ACA is good."

Dr. Cutler is out of touch with the thinking of the practicing community. It is important for the public to know what practicing physicians are thinking.

In a January 2011 poll of practicing physicians conducted by Thomson/Reuters and HCPlexus. “Seventy-eight percent of physicians said the ACA (Obamacare) would negatively affect their profession, 74% predicted that the law would make physician reimbursement less fair, and 58% believed it would hurt patients care.”

President Obama’s healthcare team does not want to recognize that the shortage of primary care physicians become worse as a result of Obamacare. The Healthcare Reform Act makes no attempt to decrease the present shortage. Sixteen million new enrollees in Medicaid will not be able to find a physician.

A recent membership survey by the Texas Medical Association (TMA)  of Texas physicians reports that “59% of Texas physicians have an unfavorable opinion of Obamacare. Texas physicians described their feelings as disappointed (78%), anxious (74%), and confused and angry (62%).

A nationwide survey conducted by The Physicians Foundation last fall produced the same negative results.

Physician disapproval of President Obama’s Healthcare Reform Act is consistent among all medical and surgical specialties. Practicing physicians know it cannot work. 

The Thomson/Reuters and HCPlexus survey showed that only 11% of primary care physicians thought Obamacare would have a positive impact on their profession. Only 14% of pediatricians and psychiatrists were optimistic. The optimism for success among cardiologists and surgeons was at 3% and 4%, respectively.

Organized medicine should at least try to hear what practicing physicians thinking.

Forty-eight percent of the  general public disapproves of President Obama’s healthcare plan. I believe it will equal the disapproval ratings of physicians once the public experiences the full impact of this terrible law.  

President Obama has tried to maintain public support by increasing benefits in the first two years of implementation of Obamacare before the 2012 elections. After 2012 the impact will be felt. It will be too late by then. The infrastructure will be built and money will be wasted. In 2013 and 2014 there will be increased taxes, decreased access to healthcare and decreased choice of care as a result of the Healthcare Reform Act.

President Obama promised a bonus to primary care physicians. The reality is the bonus is insignificant. I suspect with a 29.5% decrease in reimbursement scheduled to go into effect on January 1,2012. It will not only offset the bonus but decrease reimbursement significantly.  

President Obama promised organized medicine a “Doc Fix.” Most believe the promise is bogus in light of the budget pressures.

No one is talking about the upcoming debate to make participation in Medicare a condition for renewal of medical licensure. President Obama is going to create a larger physician shortage than already exists with this move. 

Accountable Care Organizations(ACOs) introduces another avenue of uncertainty. The process for providers to qualify for ACO status is costly. ACOs are going to increase the cost of healthcare rather than decrease the costs. ACOs will put physicians at risk for patient outcomes. Physicians will be penalized if outcomes are poor. Physicians know that clinical and financial outcomes not only depend on their care of patients but also the patients care of themselves. Few physicians are interested in assuming the patients’ responsibility for this risk. ACOs will fail.   

The burden of mandated insurance is a clear attack on the states’ sovereignty and budgets. It is also a clear attack on individuals’ freedom to choose. I believe it is unconstitutional. It will be a few years before the Supreme Court rules on the issue. Mandated insurance only increases the uncertainty and ability to maintaining a medical practice.

Just as the federal government is supposed to be a government by the people for the people and not ignore the will of the people, organized medicine should not ignore the will of its constituents.

 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

 

 

 

 

 

 

 

 

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    Repairing the Healthcare System: Organized Medicine Is Out Of Touch With Practicing Physicians.

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It Will Not Work!

 

 

Stanley Feld M.D.,FACP, MACE

“The media is the message.” It does not matter if the policy has failed previously.  All that is important is the effectiveness of the policy’s presentation and its ability to manipulate the polls. 

The government’s purpose is to work for the people who elected it. It does not seem to be working that way at present. Bureaucrats create rules or regulations as they interpret the laws made by congress and the president. Regulations are controlled by the administration’s ideology. Many times the regulations in one area nullify the intended effect in another area.  

Regulations and bureaucracy inhibit the use of common sense in policy making for the benefit of the people.

The people did not have an outlet to express their opinions or frustrations until blogging came into its own seven years ago.  

Americans do not like President Obama’s healthcare reform act. They also do not like Dr. Don Berwick’s apparent disrespect for their intelligence and his infatuation with the British healthcare system.

“I am romantic about the NHS (British National Health Service); I love it. All I need to do to rediscover the romance is to look at health care in my own country.”

 Dr. Berwick’s comments about redistribution of wealth and taking freedom of choice is scorned by many Americans.
 

“Dr. Berwick complained the American health system runs in the ‘darkness of private enterprise,’ unlike Britain’s ‘politically accountable system.’ The NHS is ‘universal, accessible, excellent, and free at the point of care – a health system that is, at its core, like the world we wish we had: generous, hopeful, confident, joyous, and just’; America’s health system is ‘toxic,’ ‘fragmented,’ because of its dependence on consumer choice. He told his UK audience: ‘I cannot believe that the individual health care consumer can enforce through choice the proper configurations of a system as massive and complex as health care. That is for leaders to do.’”

The NHS is failing. Prime Minister Cameron has declared he will change the system. The British healthcare system has resulted in long waits for treatment and rationing of treatment.  If past experience is any indication, generic drugs and expert commissions have done little to lower healthcare costs.

“As the United States prepares to introduce the massive new health-care program known as Obamacare, Britain’s Conservative Prime Minister David Cameron said on Monday that he plans to significantly reform his country’s state-run health-care system due to the program’s massive cost and lackluster performance”. 

Theodore Dalrymple wrote a critique of the British Healthcare system in the Wall Street Journal on April 16, 2011. Theodore Dalrymple is the pen name of  Anthony Daniels, an English physician.  

He is echoing the sentiments of many practicing physicians in Britain.

Dr. Anthony Daniels’ perception contradicts Dr. Don Berwick’s perception. One of them is wrong.  My bet is Dr. Berwick is wrong. 

Dr. Daniels’ practical experiences are:

“1. All attempts to reduce bureaucracy increase it, and the same goes for cost. Such, at any rate, has been my experience of the British health care system.”

“2. In Britain we have been prescribing generics for years; I cannot remember a time when I personally did not. Our National Institute for Clinical Excellence (NICE) has done cost-benefit analyses of drugs and procedures, often very sensibly, for years. But despite its best efforts, our system has been highly inventive in finding other ways of wasting immense quantities of public money.

I suspect this is a result of the administrative costs associated with the increased government bureaucracy and regulations.

“3. Don Berwick wants to move from a fee-for-service system, which gives doctors an incentive to perform expensive and doubtfully effective procedures, to one in which doctors are rewarded for preventing diseases that are so expensive to treat.”

“4. On paper, prevention always seems much cheaper than cure. Health-care economists prove it very elegantly and convincingly over and over again.”

“5. Unfortunately, the world always proves to be more complex and refractory than the theories of even the best economists”.

“6. For a long time, a physician was paid a capitation fee: He received a certain amount per patient per year from the NHS, irrespective of what the doctor did for the patient or how many times a year the patient was seen.  The physician could not increase his income except by private practice.”

“7. Needless to say, private practice was most extensive in the better-off areas, so that the system ended up reproducing the very social divisions in health care that it was designed to abolish.”

“8. In the poorer areas, doctors had no incentive—at any rate, no financial incentive—to improve their practice. It was rather the reverse. The worse the facilities they offered, the higher their income.”

“9. In the 1990s, Family doctors began to be paid to undertake preventive measures. The experts hoped that this would save money because the cost of preventing diseases would be more than offset by the savings from not having to treat the diseases that they prevented.”

“The costs of prevention were decidedly real, while the savings were inclined to be imaginary.”

a.     “The bureaucratic costs of setting and monitoring health-improvement targets—which were often highly arbitrary—were far greater than anticipated, bureaucracies having an inherent tendency to increase in size and spending power.”

b.    “Many doctors started to be paid for procedures that they were already doing for no charge, like taking their patients' blood pressure.”

c.     “Screening procedures turned out to be highly equivocal in their efficacy.”

d.     “Thus the overall benefit was much less than anticipated.”

e.     “Some of the more common ills that had been targeted, such as strokes and heart attacks, were in marked decline anyway because of increase in effective technology.”

f.      “Worse, much of the expenditure on the treatment of disease proved intractable.”

g.     “Technology inexorably increased costs; and even if the health of the population improved rapidly”

h.     “The increased proportion of older people in the population meant that the proportion of people ill with expensive chronic diseases increased.”

i.      “Procedures such as hip replacement have gone from being relatively new-fangled and exotic to being routine, precisely at a time when there are more people than ever who can benefit from them.”

j.      “ Osteoarthritis is no doubt hastened by obesity, but no medical means has yet been found for the prevention of that particular condition.”

“It is true that in Britain we have had our own peculiar reasons for the spectacular rise in the cost of our health-care system.”

“The British system is now capable of absorbing infinite amounts of money with minimal benefit to the health of the population, though with great benefit to the pocketbooks of those who work in it.”

“It is an occupational hazard for politicians to think that they and their ilk know best.”

“I have seen a hundred schemes of cost reduction.”

“ I have never seen any reduction in costs, or at least any that lasted more than a few months. I can't remember a single health minister who did not promise more efficiency at less cost, or a single one who actually managed to achieve it.”

“The long-term solution, I imagine, is the same for health care as it is for pensions: to pay for it with the income generated by dedicated savings accounts, which can be transferred to the next generation after death.”  

President Obama is setting up a healthcare system in America that has been proven not to work in Britain. The healthcare reform act should be reconsidered.

  The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

 

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