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What Is The Medical Loss Ratio?

Stanley Feld M.D.,FACP,MACE

Why did the healthcare insurance industry, big pharma, and the medical device industry sponsor a fund raiser for Democratic Senatorial candidate Martha Coakley in Washington D.C.?

She would represent the 60th Democratic vote in the Senate. The 60th vote in the Senate would prevent a Republican filibuster and assure passage of President Obama’s healthcare bill.

Why would the healthcare insurance companies want this bill to pass when President Obama promised the public that his healthcare reform plan would control the healthcare insurance industry abuses and profits?

President Obama’s healthcare bill is good for the healthcare insurance industry’s business!! How is it good for the healthcare insurance industry’s business?

The bill would force more people to buy healthcare insurance. The result would be an increase in profit. The healthcare companies are not bothered by preexisting illness because the increased actuarial risk will be subsidized by President Obama and ultimately the taxpayer.

President Obama’s healthcare bill permits the healthcare insurance industry to control the healthcare dollars. Its profits are protected by maintaining the present accounting standard for the calculation of the Medical Loss Ratio.

Few people understand the rules for calculating the Medical Loss. The rules for calculating the Medical Loss Ratio permits the healthcare insurance industry to rip off the purchasers of healthcare insurance. (The government, the employees and individuals). The healthcare insurance industry is the administrative service provider for all. It sets insurance premiums through the Medical Loss Ratio.

If the government wanted to do something significant to lower the cost of healthcare, it would change the accounting standards use to calculate the Medical Loss Ratio. A change in rules would decrease the grotesque profits made by the healthcare insurance industry.

The accounting methods for the Medical Loss Ratio are to the disadvantage of third party payers, patients and patient care.

The definition of Medical Loss Ratio is Incurred Claims divided by Earned Premiums. In order to provide a better idea of the true meaning of Medical Loss ratio it should be defined as the earned premiums divided by the incurred claim.

This accounting sleight of hand is to the healthcare insurance industry’s advantage not the public. The Medical Loss Ratio should reflect insurers’ expenses for paying claims. However, it also reflects overhead and investments that can be duplicated, inflated, and abused. The slide below indicates other expenses included in incurred expenses.

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The greater the incurred expenses, the less money is available to cover medical expenses. The artificial Medical Loss Ratio justifies increases in premiums by the healthcare insurance industry to cover the decrease in money available to pay medical claims even as physician and hospital reimbursement decreases.

President Obama’s healthcare reform bills are not fixing the accounting standards that generate enormous profits for the healthcare insurance industry because of inflated incurred expenses at consumers’ expense.

What exactly are we paying for with our healthcare dollars? Sixty-five cents of every dollar goes to the healthcare insurance industry. Only fifteen cents of every healthcare dollar goes to physicians and twenty cents of every healthcare dollar goes to the hospitals.

There is something terribly wrong with this expense load.

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George Axelrod, President Obama’s senior adviser does not understand these numbers. He said in a TV interview recently:

“One thing we ought to do, the House bill has in it provisions that — that says that if they fall below a certain level of return of these medical loss ratios — in other words, the amount of money that they spend on actual health care, that they — they need to rebate some of that money to consumers. That seems like a good idea.

Year after year taxpayers have paid higher and higher premiums to the healthcare industry for inflated incurred expenses. Most of the incurred expenses are for the healthcare insurance industry’s inflated overhead.

If Mr. Axelrod believes that the healthcare insurance industry will lower its incurred overhead expenses and give refunds to payers for premiums I have a bridge to sell him.

President Obama should be focused on the Medical Loss Ratio accounting standard. If he did the fair thing there would be no need for his disastrous healthcare reform legislation.

President Obama’s healthcare reform plan is not for the people by the people. It is for special interests. The special interests are government and its control as well as the profit of the healthcare insurance industry. It is not about patients, affordable care and improvement in the quality of medical care.

This is the underlying reason the healthcare insurance industry sponsored the
Washington fund raiser for Massachusetts Senatorial candidate Martha Coakley in order to maintain the sixtieth seat in the Senate.

President Obama’s healthcare reform bill is good for the healthcare insurance industry’s business.

 

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

  • Michael Kirsch, M.D.

    Stanley, I agree with the point that you suggested at the end of your post that the moribund health care plan was more about government than about health. This is why the Democrats, in my view, were so zealous and trying to ram it through. If the government could (ultimately) take over health care, then everything would be in their reach. Amazingly, the Massachusetts electorate did not drink the Kool Aide.(BTW, I think you meant David Axelrod, not George.) http://www.MDWhistleblower.blogspot.com

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Medicare Is Going To Lose Its Workforce

 

Stanley Feld M.D.,FACP,MACE

President Obama’s Healthcare Reform Bill will not work. It is based on decreases in physician reimbursement while forcing physicians to increase overhead with unaffordable electronic medical records. More and more physician groups and practices are starting to realize that they cannot make a living from the reimbursement from Medicare. They are quitting taking new Medicare patients and trying to get rid of the old ones by not taking assignment.

President Obama’s idea is to force physicians to be more efficient producers. It is very difficult to force anyone to do anything they cannot afford.

President Obama also believes that physicians over test patients in order to make money. Wrong! Much of the over testing comes from the practice of defensive medicine. Many physicians have been sued for under testing. No one is sued for doing a test. Yet there is not a word about malpractice reform in either version of the healthcare reform bill to decrease testing by eliminating defensive medicine.

President Obama’s solution is to prohibit physicians from testing in their office even though it is more convenient and efficient for patients. Ancillary services can help with overhead and does increase physicians’ efficiency of care.

In fact, the fees for the ancillary services in a physicians’ office are generally much less expensive than the fees for ancillary services in hospitals. President Obama ignores this fact. He believes physicians over test for profit. This might be true in some cases. However, this abuse can be discovered with the information technology system we have at present. He believes he can force physicians to tests less if it is outsourced to the hospital.

Physicians on average earn 20% to 30% less from Medicare than they do from private patients, and many are dropping out of the program.

The administration is beginning to feel the kick back from the physician community. I think this kick back will escalate in the coming months. It will worsen the delivery of medical care.

“President Obama last year praised the Mayo Clinic as a "classic example" of how a health-care provider can offer "better outcomes" at lower cost.”

How were better outcomes determined? The question is unanswered.

Mayo said last week it will no longer accept Medicare patients at one of its primary care clinics in Arizona. Mayo said the decision is part of a two-year pilot program to determine if it should also drop Medicare patients at other facilities in Arizona, Florida and Minnesota, which serve more than 500,000 seniors.”

Mayo says it lost $840 million last year treating Medicare patients, the result of the program’s low reimbursement rates.

In Arizona alone it lost $120 million dollars. The losses are usually made up by cost shifting to the private insurers and private patients. These losses are getting harder and harder to make up by cost shifting.

"Mayo Clinic loses a substantial amount of money every year due to the reimbursement schedule under Medicare," the institution said. "Decades of underfunding and paying for volume rather than value in Medicare have led us to this decision."

The media has reported that Mayo Clinic has only dropped accepting Medicare in a small clinic in Glendale Arizona. It has been reported as an insignificant event by the traditional media. Mayo Clinic is being very civilized by not eliminating participation in Medicare in all the clinics at once. The Mayo Clinic is sending a message to President Obama and his future plans. It will also be a signal to physicians throughout the country.

Ninety two percent (92%) of family physicians accept Medicare. Only about 73% of those are now accepting new patients. This reduction in participating physicians comes on top of a shortage of primary care physicians.

Patients struggle to find any specialist who will accept Medicare. This experience is greatest in the specialties of neurology, oncology, and gynecology. Cardiology is next.

Last week Cardiologists filed a lawsuit in U.S. District Court for the Southern District of Florida, charging that the government’s planned cutbacks will deal a major blow to medical care in the USA.

It will force thousands of cardiologists to shutter their offices, sell diagnostic equipment and work for hospitals, which charge more for the same procedures.

The lawsuit is an attempt by a group of medical specialists to stave off steep Medicare fee cuts for routine office-based procedures such as nuclear stress tests and echocardiograms.

"What they’ve done is basically killed the private practice of cardiology," says Jack Lewin, CEO of the American College of Cardiology (ACC), which represents 90% of the roughly 40,000 heart specialists in the USA.

The government’s response was politeness. It will hide behind regulations made as a result of congressional mandates. The result is typical bureaucratic gobbledygook.

Jonathan Blum, director of the government’s Center for Medicare Management, says the agency is bound by law not to increase spending when making reimbursement decisions each year.”

“Lewin and other heart specialists met with Sebelius on Dec. 8 and explained their concerns. "I thought she was very empathic," he says, but Sebelius has yet to take action.”

Kathryn Sebelius will not take action. Neither she nor President Obama really understands the problem much less the solutions. One cardiologist said it is an efficient way of getting rid of cardiologist and ration access to care.

"It’s so absurd, it’s kind of funny," he says. "I know ACC doesn’t think it’s funny but I do.”

It isn’t funny. It is an unintended consequence of government control of healthcare. Healthcare should be consumer driven not government controlled. Government should make appropriate rules to level the playing field for all stakeholders and then get out of the way.

A cardiologist in Silver City, N.M. not far from the Mexican border said,

"The closest cardiologist to me is 150 miles away. With all these cuts coming, it will make it impossible for me to break even seeing 40 patients a day.

Does anyone want the government and its 118 new bureaucracies to take over medical care?

What is the problem?

  1. The government is broke.
  2. They have to reduce expenditures .
  3. Physicians are the weakest link, politically, in the healthcare system because they are ineffectively represented.
  4. The government will not fight the healthcare insurance industry’s lobbying.
  5. The government will not fight the Plaintiff attorney’s lobbying.
  6. The government will continue to waste taxpayers dollars on stakeholders who add little value to the treatment of sick patients.

It is about time groups of physicians started to make some noise

Congratulations goes to the Mayo Clinic and the American College of Cardiology.

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

  • Michael Kirsch, M.D.

    Yes, I agree that the President’s statement that physician’s recommend medical procedures primarily to make $$$, was false, insulting and downright boneheaded. For a humorous view on this serious subject see http://bit.ly/5oZ0IG

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Something Fishy Is Going On!

Stanley Feld M.D.,FACP,MACE

The administration and the media are working hard to keep the public’s eyes wide shut.

Democrat Martha Coakley was supposedly the most electable Democrat in Massachusetts to fill Ted Kennedy’s seat in the Senate. She is in trouble and the Democratic Party is pulling out all the stops.

Her opponent Scott Brown said it all in their debate.He said it is not Ted Kennedy’s senate seat, it is not the Democratic Party’s senate seat, IT IS THE PEOPLE’S SEAT.

 

 

If the Democratic Party is not listening to the people, the people should kick it out of power. The Democratic Party is not listening to the people.

The State of Massachusetts has always been oriented left of center politically. However the state has suffered financially from the failed Massachusetts universal healthcare plan experiment. I have presented all the reasons for its failure. The main reason is control of the healthcare dollars remains in the hands of the healthcare insurance industry.

President Obama’s healthcare reform plan is a close copy of the Massachusetts plan. It keeps the healthcare insurance industry in control of the healthcare dollars. Any Democrat and the President will deny it. They keep telling us they will be controlling the healthcare insurance industry.

http://www.lijit.com/search?uri=http%3A%2F%2Fwww.lijit.com%2Fusers%2Fstanleyfeld&start_time=&p=g&blog_uri=http%3A%2F%2Fstanleyfeldmdmace.typepad.com%2F&blog_platform=&view_id=&link_id=7386&flavor=&q=Massachusetts+healthcare&x=0&y=0

If the Democrats lose this seat they will lose vote #60 in the Senate for President Obama’s healthcare bill.

If they lose vote #60 President Obama’s health-care bill the bill will unravel.

Even worse, Representatives and Senators up for reelection in 2010 are threatened by an independent voter rebellion in the rest of the country,.

It is time for a full court press by the Democratic Party . The Democratic Party had a fund raiser in Washington for Martha Coakley .

Guess who sponsored the fund raiser?

The lobbyists for the healthcare insurance industry, big pharma and the medical device companies. .

How come?

My guess is President Obama’s healthcare reform bill is to these companies advantage, not the peoples’ advantage despite what President Obama continuously says. These organizations want the Democrats to retain the 60 votes needed to pass President Obama’s healthcare reform bill.

Below is the invitation and list of sponsors of the fundraiser

Americans have to wonder and open their eyes to what is going on. Why should these organizations want this bill to pass?

The answer is simple. It is good for business!!!

 

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Who are these sponsors?

“Of the 22 names on the host committee–meaning they raised $10,000 or more for Coakley–17 are federally registered lobbyists, 15 of whom have health-care clients. Of the other five hosts, one is married to a lobbyist, one was a lobbyist in Pennsylvania, another is a lawyer at a lobbying firm, and another is a corporate CEO. Oh, and of course, there’s also the political action commitee for Boston Scientific Corporation.”

Here are some of Martha Coakley’s fundraiser hosts with some of their current health care clients:

  • “Thomas Boggs, Patton Boggs: Bristol-Myers Squibb
  • Chuck Brain, Capitol Hill Strategies: Amgen, BIO, Merck, PhRMA
  • Susan Brophy, Glover Park Group: Blue Cross, Pfizer
  • Steven Champlin, Duberstein Group: AHIP, Novartis, Sanofi-Aventis
  • Licy Do Canto, Raben Group: Amgen
  • Gerald Cassidy, Cassidy & Associates: U. Mass Memorial Health Care
  • David Castagnetti, Mehlman, Vogel, Castagnetti: Abbot Labs, AHIP, Astra-Zenaca, General Electric, Humana, Merck, PhRMA.
  • Steven Elmendorf, Elmendorf Strategies: Medicines Company, PhRMA, United Health
  • Shannon Finley, Capitol Counsel: Amgen, Astra-Zeneca, Blue Cross, GE, PhRMA, Sanofi-Aventis.
  • Heather Podesta, Heather Podesta & Partners: Cigna, Eli Lilly, HealthSouth
  • Tony Podesta, Podesta Group: Amgen, GE, Merck, Novartis.
  • Robert Raben, Raben Group: Amgen, GE.”

The companies in the healthcare insurance industry that are represented are Blue Cross/Blue Shield, Cigna, Humana, HealthSouth and United Healthcare.

All the leading drug companies have lobbyists on Coakley’s host committee: Pfizer, Merck, Amgen, Sanofi-Aventis, Eli Lilly, Novartis, Astra-Zeneca, and more.

HMOs (like Aetna) do not have lobbyist in Martha Coakley’s top tier of hosts. However, the healthcare insurance industry is represented by two lobbyist representing America’s Health Insurance Plans (AHIP).

The drug companies have four lobbyists representing the Pharmaceutical Researchers and Manufacturers of America (PhRMA) and one representing the Biotechnology Industry Organization (BIO) The final host list was not available.

“If Coakley pulls it out, this is the crowd that will have brought her here. If health-care reform passes, this is the crew that will have won.”

 

 

I believe that before a Representative or Senator should be allowed to vote for this bill they should be required to take a comprehensive multiple choice questions test on the meaning, implications and potential unintended consequences of the provisions of President Obama’s Healthcare reform bill. Only if they receive an over 65% grade should they be permitted to vote.

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

  • Michael Kirsch, M.D.

    If Coakley wins, as I expect she will, the real news is that the GOP gave her a real run. This is a Democratic state where Ted Kennedy was a senator for nearly 5 decades. If Massachusettes is wavering on Obamacare, there are Democrats throughout the country who may not be so anxious to drink the Kool Aide. http://www.MDWhistleblower.blogspot.com

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Did Americans Get Any Healthier Over The Past Decade?

Stanley Feld M.D.,FACP,MACE

 

President Obama finally admitted that we are at war with terrorists. He said there are problems in the massive intelligence bureaucracy.

It “failed to connect the dots of intelligence.” If the agencies were coordinated Umar Farouk Abdulmutallab, a known terrorist, who paid cash for his ticket, did not carry luggage and did not have a proper visa would not have been permitted to board the plane to Detroit on Christmas Day.

It was not a failure to connect the dots. There are systems defects in the bureaucracy. The intramural politics of bureaucracies prevents important information from moving up the food chain.

Robert Baer makes this point clear in his book “See No Evil 1988”. The CIA does not have agents in the field that understand local politics.

.

The author, working in the Counter-Terrorism Center when it was just starting out, has an extremely important story to tell and every American needs to pay attention. Why?

“Because his account of how we have no assets that are useful against terrorism. There are four other stories within this excellent book, all dealing with infirmed bureaucracies.”

The administration’s response to the potential terrorist attack demonstrates Robert Baer point.

The National Counterterrorism Center’s NCTC and CIA—have a role to play in conducting (and a responsibility to carry out) all-source analysis to identify operatives and uncover specific plots like the attempted December 25 attack. . . .”

The agencies were not coordinated and missed the obvious terrorist.

How does this relate to the Healthcare Reform debate?

The Democrats in congress and President Obama’s administration are about to pass a terrible healthcare reform bill. The bill misses the obvious. An example of an ineffective bureaucratic agency is the Healthy People Project

The goal of healthcare reform should be to help Americans receive effective healthcare. I have contended that increasing bureaucracy and the cost of maintaining a bureaucracy does not deliver better healthcare or make Americans healthier. President Obama’s healthcare bill expands government bureaucracy.

Worse, all of this bureaucracy is packed into a monstrous package without any regard to each other. The only thing linking these changes — such as the 118 new boards, commissions and programs — is political expediency. Each must be able to garner just enough votes to pass. There is not even a pretense of a unifying vision or conceptual harmony”

 

Real repair of the healthcare system is missing:

Real healthcare education,

Real cultural changes in eating and self responsibility,

Real enforceable food production legislation,

Real tort reform,

Real healthcare insurance reform,

Real chronic disease management systems education for both physicians and patients.

These real changes will help decrease the cost of medical care.

Unfortunately none of these changes are in President Obama’s healthcare reform bill. Instead there are 118 new boards, commissions, and programs doing its thing to generate reports and pilot studies.

Atul Gawande in a recent New Yorker article pointed out that President Obama’s healthcare reform bill offers pilot studies.

So what does the reform package do about it? Turn to page 621 of the Senate version, the section entitled “Transforming the Health Care Delivery System,” and start reading. Does the bill end medicine’s destructive piecemeal payment system? Does it replace paying for quantity with paying for quality? Does it institute nationwide structural changes that curb costs and raise quality? It does not. Instead, what it offers is . . . pilot programs.


Where we crave sweeping transformation, however, all the current bill offers is those pilot programs, a battery of small-scale experiments. The strategy seems hopelessly inadequate to solve a problem of this magnitude.”

I have pointed out in the past that poorly designed pilot studies are a waste of money.

Dr. Gawande tries to illustrate the potential value of a pilot study and justifies President Obama’s healthcare reform bill.

The federal government published preliminary results of the Healthy People Project health goals for the nation from 2000 to 2010. Its healthcare goals have not been achieved.

There are more obese Americans than a decade ago and not fewer. We eat more salt and fat, not less. More of us have high blood pressure and diabetes. More of our children have untreated tooth decay, obesity and diabetes.

The lack of control of these diseases result in their complications.

"We need to strike a balance of setting targets that are achievable and also ask the country to reach," said Dr. Howard Koh, the federal health official who oversees the Healthy People project. "That’s a balance that’s sometimes a challenge to strike."

This is bureaucratic jargon. It is one thing to ask the country to achieve these goals. It is another thing to get people to change their habits. The Healthy People Project has been in existence since 1980.

After more than 30 years, the goals aren’t well known to the public and only a modest number have been met.

“About 41 percent of the 1990 measurable goals were achieved. For the 2000 goals, it was just 24 percent. Worse, the nation actually retreated from about 23 percent of the goals.”

I would say this expensive bureaucratic pilot study was a failure.

Healthy People 2010 called for the percentage of adults who are obese to drop to 15 percent. In 2000, 25% of all adults were obese. Now, about 34 percent of adults are obese. Twenty eight percent of Americans had hypertension in 2000. Today 29% of Adult Americans have hypertension. The Projects goal was to reduce hypertension to 16%.

“To many health officials, simply making progress is a victory. An analysis of 635 of the nearly 1,000 targets for the past decade shows only 117 goals have been met. But progress was made toward another 332. In other words, there was improvement in 70 percent of the measures.

"That’s evidence of a healthier nati
on," Koh said.”

You have got to be kidding!! Is this what we want from President Obama’s Healthcare Reform bill, 118 new bureaucratic agencies? There is something wrong here.

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

Permalink:

Did Americans Get Any Healthier Over The Past Decade?

Stanley Feld M.D.,FACP,MACE

 

President Obama finally admitted that we are at war with terrorists. He said there are problems in the massive intelligence bureaucracy.

It “failed to connect the dots of intelligence.” If the agencies were coordinated Umar Farouk Abdulmutallab, a known terrorist, who paid cash for his ticket, did not carry luggage and did not have a proper visa would not have been permitted to board the plane to Detroit on Christmas Day.

It was not a failure to connect the dots. There are systems defects in the bureaucracy. The intramural politics of bureaucracies prevents important information from moving up the food chain.

Robert Baer makes this point clear in his book “See No Evil 1988”. The CIA does not have agents in the field that understand local politics.

.

The author, working in the Counter-Terrorism Center when it was just starting out, has an extremely important story to tell and every American needs to pay attention. Why?

“Because his account of how we have no assets that are useful against terrorism. There are four other stories within this excellent book, all dealing with infirmed bureaucracies.”

The administration’s response to the potential terrorist attack demonstrates Robert Baer point.

The National Counterterrorism Center’s NCTC and CIA—have a role to play in conducting (and a responsibility to carry out) all-source analysis to identify operatives and uncover specific plots like the attempted December 25 attack. . . .”

The agencies were not coordinated and missed the obvious terrorist.

How does this relate to the Healthcare Reform debate?

The Democrats in congress and President Obama’s administration are about to pass a terrible healthcare reform bill. The bill misses the obvious. An example of an ineffective bureaucratic agency is the Healthy People Project

The goal of healthcare reform should be to help Americans receive effective healthcare. I have contended that increasing bureaucracy and the cost of maintaining a bureaucracy does not deliver better healthcare or make Americans healthier. President Obama’s healthcare bill expands government bureaucracy.

Worse, all of this bureaucracy is packed into a monstrous package without any regard to each other. The only thing linking these changes — such as the 118 new boards, commissions and programs — is political expediency. Each must be able to garner just enough votes to pass. There is not even a pretense of a unifying vision or conceptual harmony”

 

Real repair of the healthcare system is missing:

Real healthcare education,

Real cultural changes in eating and self responsibility,

Real enforceable food production legislation,

Real tort reform,

Real healthcare insurance reform,

Real chronic disease management systems education for both physicians and patients.

These real changes will help decrease the cost of medical care.

Unfortunately none of these changes are in President Obama’s healthcare reform bill. Instead there are 118 new boards, commissions, and programs doing its thing to generate reports and pilot studies.

Atul Gawande in a recent New Yorker article pointed out that President Obama’s healthcare reform bill offers pilot studies.

So what does the reform package do about it? Turn to page 621 of the Senate version, the section entitled “Transforming the Health Care Delivery System,” and start reading. Does the bill end medicine’s destructive piecemeal payment system? Does it replace paying for quantity with paying for quality? Does it institute nationwide structural changes that curb costs and raise quality? It does not. Instead, what it offers is . . . pilot programs.

Where we crave sweeping transformation, however, all the current bill offers is those pilot programs, a battery of small-scale experiments. The strategy seems hopelessly inadequate to solve a problem of this magnitude.”

I have pointed out in the past that poorly designed pilot studies are a waste of money.

Dr. Gawande tries to illustrate the potential value of a pilot study and justifies President Obama’s healthcare reform bill.

The federal government published preliminary results of the Healthy People Project health goals for the nation from 2000 to 2010. Its healthcare goals have not been achieved.

“There are more obese Americans than a decade ago and not fewer. We eat more salt and fat, not less. More of us have high blood pressure and diabetes. More of our children have untreated tooth decay, obesity and diabetes.”

The lack of control of these diseases result in their complications.

"We need to strike a balance of setting targets that are achievable and also ask the country to reach," said Dr. Howard Koh, the federal health official who oversees the Healthy People project. "That’s a balance that’s sometimes a challenge to strike."

This is bureaucratic jargon. It is one thing to ask the country to achieve these goals. It is another thing to get people to change their habits. The Healthy People Project has been in existence since 1980.

After more than 30 years, the goals aren’t well known to the public and only a modest number have been met.

“About 41 percent of the 1990 measurable goals were achieved. For the 2000 goals, it was just 24 percent. Worse, the nation actually retreated from about 23 percent of the goals.”

I would say this expensive bureaucratic pilot study was a failure.

Healthy People 2010 called for the percentage of adults who are obese to drop to 15 percent. In 2000, 25% of all adults were obese. Now, about 34 percent of adults are obese. Twenty eight percent of Americans had hypertension in 2000. Today 29%
of Adult Americans have hypertension. The Projects goal was to reduce hypertension to 16%.

“To many health officials, simply making progress is a victory. An analysis of 635 of the nearly 1,000 targets for the past decade shows only 117 goals have been met. But progress was made toward another 332. In other words, there was improvement in 70 percent of the measures.

"That’s evidence of a healthier nation," Koh said.”

You have got to be kidding!! Is this what we want from President Obama’s Healthcare Reform bill, 118 new bureaucratic agencies? There is something wrong here.

 

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

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Congress Needs To Start All Over Again!

 

Stanley Feld M.D.,FACP,MACE

 

Several readers commented they were thankful that the healthcare bill passed in the Senate on Christmas eve.

I was curious to know their reason for being thankful when the bill is so flawed. Universally, their reply was “we need healthcare reform and this bill represents a good first step.”

I asked each commenter if the bill makes the healthcare system worse than it is now does that represent a good first step?

Their reply was if we do not take this step now there will be nothing done about healthcare reform again for another 40 years. I believe this is untrue. This is the view of the administrations propaganda machine to get a bill passed. .

The propaganda is flawed for several reasons:

1. The step taken 40 years ago was to enact Medicare. However Medicare has evolved into an unsustainable federal entitlement. Changes in Medicare over the last 40 years have resulted in an unaffordable but necessary program for seniors also.

2. The continuous band-aid fixes to the structurally flawed entitlement program has not solved the economically unsustainable problem.

3. Expanding enrollment in both Medicare and Medicaid is going to make both programs more economically unsustainable.

4. Medicaid is a failed program. Expanding Medicaid for a renewed definition of poverty is not going to fix Medicaid’s failure. Medicaid reimbursement is so low that it is difficult to get providers to service Medicaid patients.

It takes creative physicians practices’ to generate more revenue than expenses seeing Medicaid patients. These practices have initiated cries of fraud by many government officials and healthcare policy wonks.

It might be fraud in some cases but the fraud was initiated by the reimbursement structure.

Medicaid physicians are reacting by asking the question “why bother seeing these patients?”

This attitude has produced a physician shortage for Medicaid patient services.

Why would Senators and congressmen believe suddenly expanding Medicaid eligibility will alleviate this physician shortage?

The Urgent Care Clinics staffed by nurse practitioners and physician assistants and owned by private corporations are cash for profit businesses.

Medicaid does not reimburse for 30 to 60 days. Its reimbursement is less than the Urgent Care Clinics’ and physicians’ offices cost of doing business. Medicaid patients cannot afford to pay cash. The Urgent Care Clinics and physicians offices cannot afford to see these patients.

States are responsible for part of the Medicaid coverage. Most States are on the verge of bankruptcy. President Obama’s Healthcare Reform Bill will not provide increased funding for the increased Medicaid spending. Senator Ben Nelson of Nebraska held his vote out until Harry Reid gave Nebraska 100% Medicaid supplement.

Many other members of Congress are eager to follow the Nelson example, including one from South Carolina: Representative James Clyburn, a Democrat. Mr. Clyburn told The A.P. that he wanted to get more money for his state when the Senate and House begin negotiating a final health care bill.

Mr. Clyburn said he hoped to increase the federal portion of Medicaid payments to his state to 95 percent. That would be up from the 90 percent that most states get — most except Nebraska, which will now get 100 percent of its Medicaid expansion picked up by the federal government, in perpetuity, thanks to Senator Nelson.”

 

President Obama pledged he will not tolerate earmarks (pork barreling) to gain legislative approval.

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Harry Reid also gave Massachusetts a supplement for Medicaid. The rest of the States are screaming how about me. Arnold Schwartzenegger has been most vocal for California.

Governors across the country have voiced concerns about the national efforts to expand eligibility for health coverage through Medicaid, a federal-state partnership that covers the expense of health care for the poor and disabled.

The net result will be an increased in federal deficit spending.

What is wrong with each version of the bill? Neither bill solves the basic problems within the healthcare system.

The fundamental problem with the 2,074-page Senate health-care bill (as with its 2,014-page House counterpart) is that it wildly compounds the complexity by adding hundreds of new provisions, regulations, mandates, committees and other arbitrary bureaucratic inventions. “

Overlooked is the fact is that all these bureaucratic interventions, provisions, regulations, mandates, committees are going to increase expenses. All President Obama has to do is ask any practicing physician. This is going to make President Obama’s healthcare reform bill more unsustainable and increase the federal deficit without an increase patient care.

“Worse, all of this bureaucracy is packed into a monstrous package without any regard to each other. The only thing linking these changes — such as the 118 new boards, commissions and programs — is political expediency. Each must be able to garner just enough votes to pass. There is not even a pretense of a unifying vision or conceptual harmony”

It is obvious that the bill is irredeemable. Howard Dean said Kill the Bill.

"This is essentially the collapse of health care reform in the United States Senate," Dean told Vermont Public Radio. "Honestly the best thing to do right now is kill the Senate bill, go back to the House, start the reconciliation process, where you only need 51 votes and it would be a much simpler bill."

Democrats should make a serious deal with the Republicans. The deal should be made to fix the structural defects in the healthcare system and focus on helping the people who elected them. Otherwise members of both parties should lose their job.

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

  • Michael Kirsch, M.D.

    I thank you for this post. I am a combination of a skeptic and a cynic on the pending health care ‘reform’ legislation. My core view is that it will cost much more than they say, and deliver much less than they promise. There is no fundamental cost controls in place. Tort reform is entirely AWOL. Mayo Clinic lauded (they just ditched their Medicare patients in their Arizona clinic). Medicare, the existing ‘public option’ is running out of cash. I think they made strides in access but have fallen short on cost and medical quality. http://www.MDWhistleblower.blogspot.com

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Government By The People For The People vs. Government For The People In Our Opinion

 

Stanley Feld M.D.,FACP,MACE

It is easy to introduce bias into poll results and surveys. Most people are cynical about polling results

However, when every one of the major polling services’ come up with the same answer, one must believe the results represent unified public opinion. The Democrats in the House of Representative, the Democrats in the Senate and President Obama are ignoring the fact that the American public is against President Obama’s healthcare reform plan.

There is no question that America needs healthcare reform. It does not need President Obama’s version of healthcare reform as I have discussed in the past. Most importantly President Obama’s healthcare reform system will not work. It ignores the basic problems and defects in the present healthcare system.

President Obama continues to say his healthcare reform bill will provide universal coverage, affordable coverage and increasing quality of care. None of those results will be achieved with his healthcare reform plan. The American people know this and are afraid of the increased taxes and the restrictions on our freedom.

 

The composite polling data express the sentiment of the American public. The progression of these polling data can be seen by clicking See All Obama and Democrats’ Health Care Plan Polling Data

Polling Data

Poll

Date

For/Favor

Against/Oppose

Spread

RCP Average

12/8 – 12/20

 

38.4

51.0

Against/Oppose +12.6

Quinnipiac

12/15 – 12/20

 

36

53

Against/Oppose +17

CNN/Opinion Research

12/16 – 12/20

 

42

56

Against/Oppose +14

Rasmussen Reports

12/18 – 12/19

 

41

55

Against/Oppose +14

NBC News/Wall St. Jrnl

12/11 – 12/14

 

32

47

Against/Oppose +15

Associated Press/GfK

12/10 – 12/14

 

36

44

Against/Oppose +8

Gallup

12/11 – 12/13

 

46

48

Against/Oppose +2

ABC News/Wash Post

12/10 – 12/13

 

44

51

Against/Oppose +7

Pew Research

12/9 – 12/13

 

35

48

Against/Oppose +13

FOX News

12/8 – 12/9

 

34

57

Against/Oppose +23

The Democratic controlled Senate version of the bill also contains some sinister amendments. Many organizations are lining up to challenge the constitutionality of the bill.

Buried in Harry Reid’s massive amendment to the Senate version of Obamacare is Reid’s is Section 3403 designed to prevent any future Congress from repealing a central feature of this monstrous legislation.

Section 3403 reads in part: "… it shall not be in order in the Senate or the House of Representatives to consider any bill, resolution, amendment or conference report that would repeal or otherwise change this subsection."

Do you think all the Democratic Senators understand the implications of this maneuver? If section 3403 remains in the bill and President Obama signs this measure into law, Harry Reid intends that no future Senate or House will be able to change a single word of Section 3403, regardless whether future Americans or their representatives in Congress want to change it.

The subsection at issue is the regulatory power of the non elected Medicare Advisory Board to "reduce the per capita rate of growth in Medicare spending." It is an open ended grant to a regulatory agency granting power to control costs, quality and quantity of healthcare coverage.

And Reid wants the decisions of this group of unelected federal bureaucrats to be untouchable for all time”.

Harry Reid makes compounds the problems of Section 3403 by ignoring two centuries of Senate rules. He passed the measure in the dead of night in less than 48 hours. I suspect few Democratic Senators who voted for this bill have read and understood the implication of Section 3403.

“The final Orwellian touch in this subversion of democratic procedure is found in the ruling of the Reid-controlled Senate parliamentarian that the anti-repeal provision is not a change in Senate rules, but rather of Senate "procedures." Why is that significant?

Becau
se for 200 years, changes in the Senate’s standing rules have required approval by two-thirds of those voting, or 67 votes rather than the 60 Reid’s amendment received.”

Few Democratic Senators have listened to the wishes of the American people. President Obama refuses to listen to the wishes of the American people.

 

How many points made about the healthcare reform bill by President Obama correct?

Should Americans be angry? Yes. What can we do? Throw the bums out when you go to the polls next November.

 

 

After the New Year I will resume twice a week entries. I wish all a happy and healthy New Year.

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

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Aim Carefully Then Fire: Don’t Fire, Then Aim

Stanley Feld M.D.,FACP,MACE

Dr. Val Jones publishes Get Better Health a smart health an excellent healthcare website. http://getbetterhealth.com/

It is composed of a selection of many of her chosen healthcare bloggers. Val publishes blog entries of many contributors in her network daily. Val published my December 19th entry. It generated the following comment.

“Comment:
I am surprised that a diabetes doctor let his politics permeate his opinion of the AHRQ? We know that over 50% of the time patients don’t receive the standard of care and I would be interested to know what the numbers are like in his practice?
If he had given any research or documentation to his claims (the CBO for example predicts 130 billion dollar drop in the deficit) so he lost all credibility in his first few sentences. Does his practice have better outcomes than the standard of care? Is he worried that he will lose income for practicing medicine that makes huge profits but doesn’t increase lifespan or other measurable outcomes?
This blog seems to be a little bit behind the times. Quality matters and is here to stay. Guys you not only lost the election but large employers and other purchasers know that what we have been paying for doesn’t work.”

The commenter would do well to follow my blog at http://stanleyfeldmdmace.typepad.com/. He might learn something about what is necessary and effective to repair a broken healthcare system.

 President Obama’s healthcare reform plan will not achieve his goals.  “The legislation has no master plan for dealing with the problem of soaring medical costs. And this is a source of deep unease.” It also does not have a master plan to deal with the dysfunction in the healthcare system

It is unnecessary for the commenter to take pot shots with sound bites on issues whose details are ignored.

I refer the commenter to my summary blog category section

My guess is the commenter is a salaried surgeon in a comfortable subspecialty that fixes things that are broken and does not practice preventive medicine.

It is not necessary, in a surgeon’s world, to understand that medicine needs to develop systems of care that put patients in charge of the care of their disease in order to prevent disease complications. Doing that will generate great savings because 90% of the healthcare dollars are spend on the complications of chronic diseases.

Patients need to be taught how to be responsible for their own care.

I am an Independent voter. I am apolitical and have never been affiliated with either Party. I voted for President Obama. I thought it was going to be a good thing when he promised to fundamentally reform America’s way of doing things following the wishes of powerful vested interest as opposed to the vested interests of the people. He has been a catastrophe.

I am a retired Clinical Endocrinologist. I have no economic vested interest in the financial aspects of the practice of medicine. I do have a vested interest in keeping medical practice a highly regarded profession and maintaining the patient physician relationship.

I oppose medical care becoming a commodity.

The secondary stakeholders (the healthcare insurance industry, big pharma, and the hospital systems and big government) have taken over healthcare. They have made medical care a commodity.

President Obama has played right into the hands of these vested interests in order to increase the scope of government. The devil is always in the details.

The details of his healthcare reform bill will tax all income groups, increase the budget deficit, decrease access to care and increase out of pocket expenses. It has been done in a non transparent way ignoring the wishes of the majority of Americans.

The healthcare reform bill does not consider to malpractice reform. Defensive medicine and unjustified law suits are wasteful and costly.

I suggest the commenter read critically some of the guidelines the USPHTF has written with an emphasis on Breast Cancer, Coronary Artery Disease and Osteoporosis.

He should study some of the defects in the clinical research studies the Task Force has chosen.

Our medical care system needs flexible standards of care that are disseminated to the medical community in an educational fashion and not in a punitive and disruptive way. Evidence medicine is ever changing and these changes need to be integrated in a physicians work flow in an education way. The Breast Cancer guidelines have been implemented already by California

No one has defined quality care effectively to this point or developed systems to measure the financial impact of care. In diabetes for example, the definition of quality medical care should not be defined as the measuring HbA1c’s four times a year. It is measuring clinical outcomes against financial outcomes and comparing its value. It should be defined by patient compliance with treatment. Claims data analysis is meaningless.

President Obama’s healthcare plan makes medical care worse for patients and physicians, not better. His plan is going to produce unintended medical and financial consequences that will render effective care more difficult for physicians to give and patients to get. There is plenty of evidence that it will make care more expensive, raise taxes, and increase the deficit.

None of the secondary stakeholders will be hurt as badly as patients and physicians. Reading my blog and following the links will give the commenter an in depth understanding of my reasoning.

I had hoped President Obama would provide a transparent administration as promised and not an administration for vested interests and lobbying groups. Unfortunately, this has not happened. This point is demonstrated by many examples including Tom Daschle’s access to the White House and private Democratic congressional meetings.

President Obama’s healthcare reform is about increasing government control over the healthcare system and commoditizing medical care. It will fail. The government has been unsuccessful at this as demonstrated by Medicare’s mounting deficits.

Secret Democratic caucus sessions and 2000 page bills that have to be evaluated in less than 72 hours are not my idea of transparency. My vote for President Obama was a big mistake.

If the commenter studied the various scorings by the CBO, I am sure he would not use the invective against me and challenge my credibility.

The CBO changed its scoring from a one trillion dollar deficit increase in ten years to a 130 billion dollar reduction in deficit overnight. These estimated are based on the changing assumptions provided by either Harry Reed or Nancy Pelosi. The last estimate was based on increasing taxes from 2010-2014 and not providing benefits until 2014. Ninety eight percent of the benefits will kick in after 2014. The CBO states its scoring can be in error because the assumptions provided could be wrong.

The $130 billion dollar decrease in the deficit is another trick play. It seems everyone within the Beltway understands this trick play.

Entitlement programs always cost more than estimated.

Primary care physicians’ and all cognitive subspecialists’ intellectual property is undervalued and underpaid. Cognitive intellectual property provides the most valuable element of medical care. It is embedded in the patient physician relationship.

The details in President Obama’s healthcare reform plan will undervalue cognitive services even further through punitive mechanisms. It could increase its value through educational mechanisms.

The healthcare insurance industry will not take a big hit because antitrust exemption and Medical Loss Ratio are not dealt with effectively.

I believe it is much wiser to aim and carefully learn the real details before firing.

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

  • Lisa

    Hi,
    I am The assistant editor with disease.com. I really liked your site and I am interested in building a relationship with your site. We want to spread public awareness. I hope you can help me out. Your site is a very useful resource.
    Please email me back with your URL in subject line to take a step ahead an to avoid spam.
    Thank you,
    Lisa Hope
    lisa.disease.com@gmail.com

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Don’t Listen To What They Say. Watch What They Do.

Stanley Feld M.D., FACP,MACE

If President Obama’s healthcare bill is passed there is certain to be an increase in taxes, an increase in the budget deficit and a rationing of healthcare.

The President promised an increase in funding for preventative medicine. The term preventative medicine should mean discovering a disease process before it manifests itself through its complications. After discovering the disease it should be treated in the best possible way available.

The federal government is going to spent billions of dollars expanding a bureaucracy to further evaluate best practices.. The Agency for Healthcare Research and Quality was created to standardize the practice of medicine. The organization encouraged medical specialty organizations to write guidelines for the care of diseases in their specialty. A National Clearing House was created that published these guidelines. These guidelines are to be updated every five years.

I was suspicious of the intent of the AHRQ. Medical knowledge changes at about 10% per year. I believe that physicians in a specialty area have an obligation to physicians in all specialties to help them keep current. Guidelines are usually devoid of clinical judgment.

I was afraid the AHRQ would use guidelines as a weapon to punish physicians who were not current.

I was chair of the AACE guidelines for the treatment of Type 2 Diabetes Mellitus. I was also the co chair for AACE’s guidelines for hyper and hypothyroidism, thyroid nodules and thyroid cancer.

My goal was to help primary care physicians understand the Clinical Endocrinologists’ interpretation of the state of the art diagnosis and treatment of endocrine diseases. AACE had no ulterior motive. I hoped the AHRQ had no ulterior motives.

The U.S. Preventive Services Task Force is a branch of the Agency for Healthcare Research and Quality. USPTF started writing its own guidelines for diagnosis and treatment of many diseases. The USPTF does not seek input from subspecialty groups. The panel selects major articles on diseases from the literature and grades these articles. From the grading of the selected articles it develops guidelines on the use of procedures and treatments.

There are several problems with this method of developing guidelines. There is a danger that the best articles are not selected by non experts in that disease. There is also a danger that the natural history of the disease is overlooked. The natural history of many diseases is not considered in many “major” articles.

A vivid example of this is in the Women’s Health Initiative.

The most important defect in the USHPTF guidelines is it disregards the most important element of medical care, namely physicians’ clinical judgment.

The USPFS guidelines disregard clinical judgment and the patient physician relationship. In fact they destroy these critical elements in the therapeutic relationship between physician and patient.

USPHTF guidelines have rationed access to care for several years. President Obama is extending the USPHTF’s scope in rationing healthcare.

“Think Congress is regretting having allocated over a billion dollars to let the government generate studies to tell us what medical tests and procedures should be covered under Obamacare?”

I am most familiar with the US Preventive Services Task Force’s guidelines for the diagnosis and treatment of osteoporosis. I did not recognize one expert in the task force’s panel to evaluate the evidence for the diagnosis and treatment of osteoporosis.

The panel might be experts in evaluating the statistical power of the clinical studies chosen. However if clinical studies were not done to evaluate diagnosis and treatment of males with osteoporosis the USPHF conclusion would be there is no evidence for this diagnosis and treatment. The government would not approve bone density studies for elderly men even though there is an abundance of clinical evidence that hip fractures are as common in men as they are in women.

Most large clinical studies are funded by the pharmaceutical industry. Most of the osteoporosis studies have been done on women. Therefore there are no large studies in males. There it is easy to arrive at the conclusion that there is no evidence for diagnosing and treating males. The government will not pay for the evaluation and treatment of males for osteoporosis.

Experts in osteoporosis who understand the natural history of osteoporosis would disagree. The panel of U.S. Preventative Task Force did not ask osteoporosis experts for an opinion about the guidelines and disregarded the guidelines written by experts in the area.

Similar defects occurred with the USPTF’s recommendations for breast cancer. The breast cancer recommendations reviewed only 10 studies. The reviewers admit their conclusions cannot be generalized to individual forms of breast cancer and different groups of patients.

No sooner had the Health and Human Services Department’s U.S. Preventative Services Task Force recommended against mammography for women under 50 than Secretary Kathleen Sebelius rushed to say don’t worry. The decision had "caused a great deal of confusion and worry among women," she said, promising that no policies would change.”

Secretary Kathleen Sebelius said no policy would change today. It will change in the near future. The bankrupt State of California already has changed its policy.

“Although women ages 50 and older will still be eligible, women ages 40-49 will no longer be screened.”

I will have more to say about the USPHTF and its Breast Screening Guidelines in the future.

In the meantime watch what they do. Don’t listen to what they say.

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

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