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Here Comes The Defective Judge (CMS)!

Stanley Feld M.D., FACP, MACE

President Obama’s goal is to have the government be the single party payer for the entire healthcare system.

There is no doubt in my mind that the government as the single party payer will not work for patients or physicians.

President Obama cannot control CMS’s misuse of it assignments because bureaucratic complexity. One area of abuse and misuse of the department’s power is its attempt to eliminate fraud and abuse in Medicare and Medicaid.

There is no question that some healthcare providers abuse the Medicare and Medicaid payment system.

No one ever asks the critical question. Should the payment system used in Medicare and Medicaid be changed to prevent fraud and abuse?

Never the less President Obama is expanding the old punitive system. He thinks he is going to stop abuse with his expansion.  

“ Stepping up their game against health care fraud, the Obama administration and major insurers announced Thursday they will share raw data to try to shut off billions of dollars in questionable payments.”

I don’t know how many times I have shown that claims data to determine quality of care or fraud and abuse is defective.

"Fraud is estimated by the administration to cost Medicare about $60 billion a year, and the Obama administration has beefed up the government's efforts to stop it, bringing in record settlements with drug companies for marketing violations as well as using new powers in the health care law to pursue low-level fraudsters with greater zeal."

 

This is a small amount compared to the $2.5 trillion dollar healthcare system cost when one considers the government’s investigative costs and the hardship these errors impose on many innocent physicians and patients investigated.

The hardships are enough to destroy physicians’ trust in the government and their desire to deal with the government.

It also serves to destroy the physician patient relationship.

Physician patient relationships are essential to the therapeutic success of a treatment regime.

Physicians have complained about this bureaucratic abuse to their congressmen. Congress has looked into this abuse. CMS’s approach has been to criminalize physicians using questionable data and decisions by unqualified judges.

Chairman Charlie Gonzalez of the House Small Business Committee outlines the problems brought to his attention several years ago. His hearings did not receive much attention.

Opening statement by Chairman Charlie Gonzalez

  

 

http://www.youtube.com/watch?v=0SmKmLMPu-s&feature=relmfu

 

Dr. Karen Smith a former President of the North Carolina chapter the American Association of Family Practitioners describes her encounter with CMS’s subcontractor for investigating fraud and abuse.   CMS’s assignment is to discover Medicare and Medicaid underpayment or overpayment as well as fraud and abuse.

 

 

http://www.youtube.com/watch?v=3v4Sq7oDCgo&feature=player_embedded

 

 I believe it is important for anyone who is interested in what is happening to the healthcare system to view the several You Tubes I am including in this blog. 

Dr. Michael Schweitz, Vice President of The Coalition of State Rheumatology Organizations in West Palm Beach, FL discusses the defects in the RAC system and the need to change.

  

http://www.youtube.com/watch?v=E5K8iPqsmjY&feature=relmfu

Dr. Schweitz states that administrative costs in dealing with the government is overwhelming to physician practices. The stress imposed on physicians detracts from their ability to deliver quality medical care to their patients.

Most important is the government’s attitude toward the physicians and their practices. The physicians are guilty until they prove themselves innocent.  Government’s subcontractors use claims data to prove the physicians guilt

Another problem is the more the outsourced company collects from physicians, the larger the commission it collects from CMS.

Mr. Timothy B. Hill is Chief Financial Officer, Director of the Office of Financial Management, Centers for Medicare & Medicaid Services. He answers questions from Chairman Charlie Gonzalez

  

http://www.youtube.com/watch?v=FBpXubSY8O8&feature=relmfu

 

 The questions continue to Mr. Hill. He says CMS recognizes its abuse of physicians. He hopes to improve.

Since Obamacare has expanded physicians’ complaints have increased.

 

 

 

http://www.youtube.com/watch?NR=1&feature=endscreen&v=uRX1M31T8LA

 

  

 

Can anyone believe this testimony given by Mr. Hill? I hope his message is not believed by congress. Mr. Hill does not document his department policy changes

 “ This week White House officials said a "trusted third party" would comb through data from Medicare, Medicaid and private health plans and turn questionable billing over to insurers or government investigators. That third party organization has yet to be selected.”

 

With the impending a thirty percent reduction in Medicare payments on January 1, 2013 physicians will not be able to afford care for Medicare and Medicaid patients.  

Mr. Joseph A. Schraad, MHA Chief Executive Officer Oklahoma Allergy and Asthma Clinic, in Oklahoma City, describes the challenges that the practice he manages face. Less and less providers are going to accept Medicare.

 

http://www.youtube.com/watch?v=cINHOZmo_wA&feature=relmfu

 Dr. Forrest in his direct care payment model for patients describes the formula he uses to avoid the government’s interference with his practice of medicine. He talk is riveting.

  

http://www.youtube.com/watch?v=dUX4P7XfY8o

Other formulas can be used. The You Tubes presented here demonstrate that the Judge (CMS) is using the wrong formula. The CMS cannot control their outsourced venders who have inappropriate incentives.

The are driving physician away from accepting Medicare and Medicaid payments.  In the process patients lose

The way to solve fraud and abuse is to have patients police the healthcare system. Patients can uncover fraud and abuse if they own their healthcare dollar and have financial incentives to save unspent money in a retirement fund.

Education and financial incentives will make consumers productive consumers.

The way to approach physicians is not to assume they are criminals and subject them to the stress and expense to defend them in a defective evaluation system.

Physicians must be educated on how to improve coding efficiency and the government’s system of measurement must be made more accurate and less complex. ICD 10 is a big mistake. It makes coding complicated.

The best formula, in my opinion, is to empower and educate patients.

Government and employers must provide patients with financial incentives to become educated buyers of medical care services. Patients must be given the opportunity to own their healthcare dollars and be responsible for their own health and healthcare.

My ideal medical savings account provides patients with that opportunity.

 Physicians collect only 10% of the healthcare dollars spent.

The real question is who collects the remainder of the 2.5 trillion dollars spent?

America should not depend on increased bureaucracy and bureaucratic staff to administer medical care with increased and confusing rules.

Everyone knows this will only result in increased inefficiency and higher costs. 

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

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With Obamacare Patients Lose

Stanley Feld M.D.,FACP,MACE

President Obama, in his attempt to create a healthcare system that is more efficient, affordable and democratic does not attack the basic dysfunctions in the healthcare system.

Obamacare does nothing to disintermediate the healthcare insurance industry.

It does not provide incentives for consumers to be responsible for their health or their healthcare dollar.

 It creates another entitlement and increased consumer dependency on government rather than consumer independence.

 It does nothing to alleviate the practice of defensive medicine and the waste of $750 billion dollars for unnecessary tests that would be eliminated if effective Tort Reform were enacted.

President Obama and his advisors believe that defensive medicine accounts for only 2-3 billion dollars a year.

They conclude the cost is insignificant. They are ignoring reality proven by well-done studies. Their premise is incorrect. Ignoring the facts will continue the dysfunction in the healthcare system.

 I have stated repeatedly that I believe President Obama’s goal is complete government control of the healthcare system.

The rules in Obamacare will destroy the patient physician relationship and private healthcare.

The only system left will be the government’s Public Option through Health Insurance Exchanges. Everyone will be on Medicare or Medicaid.

Both Medicare and Medicaid are presently unsustainable. Expanding both will accelerate the demise of both Medicare and Medicaid. 

The resulting socialized Medicine will be an unsustainable disaster as it has become in England and Canada.

The public knows Obamacare will fail. They also know we need to do something. The public needs to hear about a viable alternative.

With Obamacare premiums will increase along with taxes. Access to care and rationing of treatment will occur.   

The path America is on is  “The Road To Serfdom” as described by Fredrick Hayak. Serfdom is occurring slowly but steadily. President Obama has told us in his own words how we will get there.

He sounds great because he is charming and seductive. His only problem is he is not truthful about his goal and its cost to society.

 

http://youtu.be/i2e-86eOIT0

Consumers will be the biggest losers.

The more than 250 million consumers who already have health insurance will see their healthcare insurance change, the cost increase, and the quality of care diminish.

 How will Americans feel when they hear about a brand new cure only to find out that their government’s controlled insurance won’t cover it? The decisions to cover care will be made by a non-elected committee that sends its recommendation to another not elected committee who then sends it to a third committee to decide on whether the treatment is affordable or valid for the age of the patient.

“Patients will have to get used to less access to real health care solutions, fewer approvals for the very latest, personalized, genetic-based cancer treatment or surgical technology that could save your life.”

Who loses? The consumer.

The Doctor Patient Medical Association released survey of doctors showing that 90% believe that Obamacare is on the wrong track.

The same survey revealed that 83% of practicing physicians are contemplating quitting the practice of medicine.  

The physicians remaining in practice will see more patients per hour and have care of their patients dictated to them by the government bureaucrats. Obamacare will turn personalized patient care into commodity care.

There will be no patient physician relationship. There will be rationing of care and decreased access to care. Patient’s will not have freedom of choice for care or treatment.

 A recent article in Britain’s Daily Mail described the use of the “Liverpool Pathway.  A British Professor claims the NHS kills off 130,000 elderly patients every year using the Liverpool Pathway.

The Liverpool Pathway is a set of rules that decide who should receive treatment and who should not receive treatment.

Professor Pullicino claimed that far too often elderly patients who could live longer are placed on the LCP and it had now become an ‘assisted death pathway rather than a care pathway.”

 Under Obamacare physicians will bear the brunt of explaining how come ever rising premiums are buying you fewer and fewer benefits.

 Consumers who can afford to pay physicians directly will not receive a tax break unless their medical care expenses are more than 10% of their gross income.

 The popular Health Savings Accounts will perish because of the barriers against them as written into the healthcare law.

 The Healthcare System’s savior “My Ideal Medical Savings Accounts” will vanish from consideration.

Obamacare also restricts physicians’ clinical judgment.  Sometimes physicians will sense a patient is really sick with a serious disease. An example is a disease called a fever of unknown origin. Many tests would have to be performed to make the diagnosis. The sooner the diagnosis is made the better the chance for patients to survive.

Physicians might fear the Independent Medicare Advisory Board would deny the workup and penalize the physician. It could be that the Independent Medicare Advisory Board members and the other committees did not factor in the difficulties in the diagnosis.

In time the diagnosis would become obvious but it might be too late to save the patients life.

We have already seen healthcare premiums soar under Obamacare. I have shown that Medicare premiums are schedule to escalate in 2014. Medicare and Medicaid is healthcare insurance.

Healthcare insurance will be less affordable not more affordable even though government subsides will be greater.  The budget deficit will grow increase.     

Access to care will decrease because of the increased number of patients. Physicians will have less time to spend with patients. A growing number of patients will have increased difficulty finding a physician.

There is a current physician shortage. The physician shortage will become compounded when some physicians stop practicing medicine. Other physicians will either restrict the healthcare insurance plans they accept or stop accepting healthcare insurance completely.

The delivery of healthcare is getting worse and more expensive not better and less expensive.

Obamacare is creating an escalating mess.

Patients are going to be the biggest losers on every level of interaction with the President Obama’s Healthcare Reform Act.

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

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America Is An Innovative And Exciting Nation

Stanley Feld M.D.,FACP,MACE

I had several wonderful intellectual experiences last weekend. These experiences served to confirm my thinking that intelligent Americans are less interested in politics, rhetoric and empty promises and more interested in innovative solutions to all the ills that our bureaucratic political processes have brought upon us.

Todd Siler, Phd

My first stop was a visit with Todd Siler, Phd. Todd is a famous American multimedia artist, author, educator, and inventor. He is equally well known for his art and for his work in creativity research.

Todd’s analytic skills and creativity are uncanny.

The following quote is from one of his web sites,

 In 1890, the psychologist and philosopher, William James, described “Cerebralists” as “those who combine the sensual and spiritual, the physical and intellectual” in their creations. “

Clearly, we’ve lost sight of the broader meaning and reality of this practice. 

Cerebralism encompasses all forms and expressions of art. Through art, we can connect and transform everything (information, knowledge, ideas, experiences), to create new meanings and purposes for everything. Art makes life meaningful. It inspires wonder, while challenging the limits of our vision and imagination."

Please click on to Todd’s imaginative art. http://www.toddsilerart.com/index.html

In our rapidly changing world, where it seems, to many, confusing and scary Todd’s message is brilliant and enlightening. His course “Think Like A Genius” is enabling. It enables people to think expansively through art and science to develop strategies and actions that are innovative. He promotes mutual respect, trust and love.

One of Todd’s trademark symbols is;

  Todd siler png

It would serve everyone well to “Think Like a Genius” rather than think selfishly and try to take advantage of others.

http://www.thinklikeagenius.com/

 

My wife and I met Todd three years ago through an introduction from my son Brad (both MIT graduates). Since then Todd and I have been in constant communication via Skype. Last week was special.

Thanks, Todd.

Nextera Healthcare

My next visit was to Nextera Healthcare. Nextera Healthcare is a new model for delivering healthcare. It follows many of the principles embodied in my ideal medical savings account model.  It delivers compassionate care at an affordable cost.

Nextera Healthcare combines the compassionate practice of medicine with advanced information technology. My impression is that the founders have fire in their belly for delivering the best medical care for their patients.

I will explain more about Nextera Healthcare in the near future.  

The reason I am so high on Nextera Healthcare is that it closely fits a model of healthcare delivery that I believe will work. It will increase the quality of medical care and decrease the cost of healthcare. 

Nextera Healthcare has the potential to permit the patient to be responsible for managing their health and their healthcare dollars.

Nextera Healthcare has the potential to reduce healthcare cost to individuals, employer sponsored self insured plans, associations and even the government while permitting consumers to make their own healthcare decisions.

http://www.nexterahealthcare.com/

TechStars

Next I stopped in at the TechStars fancy new dungeon. TechStars was co-founded by my son Brad Feld and David Cohen in Boulder, Colorado in 2007. It has been a very successful start up accelerator.

TechStars has expanded to Boston, New York, Seattle, and San Antonio. TechStars also has a number of affiliates in many cities in the U.S. and throughout the world.

Bloomberg TV has a special about TechStars concepts in 2011. TechStars business model is compelling to me.

I show up at TechStars Boulder’s office every year with permission from Brad and David. The goal is see if the 10 selected companies can explain their company’s business model to me is a way that I can understand.

It is a fascinating experience for me to see how these start-up companies hone their product and their story for Demo Day. Each company is mentored for three months to develop their model and hone their presentation.

On Demo Day Brad and David invite venture capitalist from all over the country to listen to these technology start-ups’ story and have the opportunity to invest in them.

The success rate for investment has been very high each year and at every site.

Last Thursday was the second day of the new session in Boulder. It was the first Demo Day practice session.

The first practice sessions blew my mind. I think the kids are getting smarter, more articulate and more creative each year.  Someone told me it was harder to get into TechStars than it was to get into Harvard Business School.

 

 

GoldLab’s 3rd Annual Symposium “Time: Tempus Fugit”  

The purpose of the trip was to attended GoldLab’s 3rd Annual Symposium “Time: Tempus Fugit” at the Colorado University as an invited guest.

Dr. Larry Gold is a legendary Biotechnology guru. His mission for these Symposia is to synthesize the confluence of science and humanity. His goal is to stimulate the thinking of bench scientists, practicing physicians and social scientists to understand progress and thinking in each discipline.

Once the participants are stimulated they are encouraged to focus on actionable solutions to the complex problems society faces through each discipline’s lens.

“This was a symposium that truly, truly, truly engaged all four organs of the participants — the head, the heart, the gut and the hoo-ha organ (ah-ha) organ. Larry Gold’s  Symposium  “Time: Tempus Fugit” did so it in grand style.’

It was certainly an invigorating weekend for me. The levels of intellect and the abilities to “Think Like a Genius” are very high.

I am certain the younger generation is not going to let President Obama get away with his “Obamacare” and other government controlling baloney he is pushing.

The challenge is going to be how to get their attention now and not later when the disintermediating task will be much harder.

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

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A Real Marketplace For Healthcare.

Stanley Feld M.D.,FACP,MACE

President Obama’s Healthcare Reform Act is all about government control of 19% of the U.S. economy.

The media has publicized ridiculously high charges for cardiac bypass and other complicated procedures. It ought to find out what the actual contracted reimbursement fee is.

All the stakeholders are at fault for the lack of transparency, misinformation, administrative waste, misuse of taxpayers’ dollars and the manipulation of the media.

It is important for the government and the healthcare industry to continue to blame physicians for being the villain in our dysfunctional healthcare system.

Remember physician receive only 10% of the healthcare dollars spent in our healthcare system. Who receives the other 90%? What value do the other recipient add to medical care?

The medias quoted prices are a scare tactic to keep government’s control of the healthcare system advancing.

What is going to happen after Obamacare is repealed?

There will still be millions uninsured.

There will still be millions who cannot buy insurance because of pre-existing conditions.

There will still be millions who choose not to purchase coverage.

There will still be inefficiency and waste in the healthcare system.

Stakeholders are adjusting to the potential restrictions of Obamacare. They are finding new ways to game the healthcare system.

Healthcare costs will rise and inefficiency in the healthcare system will increase whether we have Obamacare or not.

President Obama is trying to set rules and create regulations to eliminate potential solutions to our healthcare system’s problems.

He is trying to regulate and eliminate high deductible insurance plans and Health Savings Accounts. Under Obamacare it will be much cheaper for employers to pay the penalty than provide healthcare insurance for their employees.

Employees will be forced to buy insurance from President Obama’s health insurance exchange (Public Option). There will be no other options. At that point the government has full control of healthcare.

It wouldn’t be a bad thing if the government could afford another potentially inefficient entitlement program. President Obama is clearly trying to squeeze complete government control of healthcare through the back door.

It will not work!

What should be done?

The government must create a real marketplace for healthcare insurance. A marketplace constructed for the benefit of consumers and not secondary stakeholders’ vested interests. Stakeholders would adjust because of their competitive compulsion to get customers. They will compete for consumer business by lowering healthcare costs.

The mindset must change to a consumer driven system not a government driven system.

My Ideal Medical Saving Account would be an excellent way to provide full first dollar healthcare insurance coverage for unplanned medical expenses. It would also provide financial incentive for consumers to be responsible for their health and healthcare dollars.

These are some of the rules that government should have.

1. Healthcare insurance policies should be “guaranteed renewable.”

2. Healthcare policies should include a right to purchase insurance in the future regardless of pre-existing illness.

3. Healthcare insurance policies should follow you from job to job regardless of a move across state lines.

4. Individual healthcare insurance policies should have the same tax-deductible status as employer provided healthcare insurance policies.

The government could form a successful individual insurance market place with these simple rules or regulations.

 “Most pathologies in the current system are creatures of previous laws and regulations.”

“ Solicitor General Donald Verrilli explained as much in his opening statement to the Supreme Court: “The individual market does not provide affordable health insurance,” he noted, “because the multibillion dollar subsidies that are available” for the “employer market are not available in the individual market.”

My Ideal Medical Savings Account could apply to Medicare and Medicaid. It provides incentives and real healthcare insurance coverage. It allows the consumer to choose. It encourages consumers to be knowledgeable shoppers for healthcare. 

The main argument for a mandate before the Supreme Court was that people of modest means can fail to buy insurance, and then rely on charity care in emergency rooms, shifting the cost to the rest of us.

The government is spending that money already. The mandate will not stop the emergency room use.

 A consumer driven healthcare system using My Ideal Medical Saving Accounts would provide incentives for the indigent or those of modest means to try to save money for them by taking care of their health. The government provides those educational resources already. This might encourage its use.

The emergency room treatment expenses for indigent and uninsured are not the central reason for rising healthcare costs. Costs are rising because people, who do have insurance, and their doctors, overuse health services and don’t shop on price.

The Ideal Medical Savings Accounts should be fully tax deductible to both individual and groups.  The healthcare system would then become consumer driven. Consumers would become price sensitive because of financial incentives. A competitive healthcare market would then be created. The result would be a decrease in the cost of healthcare. It certainly would be cheaper than the artificial, bizarre, government controlled healthcare market for we have today.

Enlarging government control would make the healthcare market more expensive and less efficient than the unsustainable government controlled healthcare system that exists.

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

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Aligning Incentives Is A Must In Creating An Efficient Healthcare System

Stanley Feld M.D.,FACP,MACE

 Mechanism Design has demonstrated that the most efficient systems are created when everyone’s vested interests are aligned.

 

“An example is defense contracting. If you agree to pay on a cost plus basis you have created incentive for the contractor to be inefficient.

The defense contractor will build enough extra into a fixed price system to account for cost overruns.  The cost overrun would be permitted in the rules if the price was transparent. If there were no cost overruns the contractor’s profit would be increased. It would provide incentive to be efficient.

 “If you agree to pay a fixed price, you can come close to an efficient price if you have all the truthful information.”

A reader wrote’

Stanley:

History has proven over and over again that only the market mechanism of willing sellers and willing buyers is the optimal way to allocate economic resources. This presumes an informed buyer, and a willingness of sellers to compete for buyers. Adam Smith was clear on this in the Wealth of Nations.
 

If incentives are aligned and truthful price information is available an efficient system is created.  Most stakeholders think they can do better by not sharing truthful information. If the rules of the game require truthful information the system can become an efficient market driven solution.

The healthcare system must become market driven. At present the healthcare system is an artificially distorted free market system. Government intervention has distorted and made the free market inefficient.  

The distorted free market has led to higher prices.

The concept of Pareto efficiency implies one stakeholder has to yield something which makes another stakeholder better off. The reality is in an efficient system the first stakeholder is worse off than he/she theoretically could be.

The first stakeholder yielding makes him/her better off than he/she is but still worse than he/she could theoretically be. The temptation is to not be truthful in order to maintain dominance at the expense of others.

 Leoid Hurwicz observed as others had that the dispersion of information was at the heart of the failure of a planned economy. He observed that there was a lack of incentive for people to share their information with the government truthfully.

 The free market mechanism was far less afflicted than central planning bureaucracy by such incentive problems. The free market economy was by no mean immune to this defect.

He observed that the free market economy can get us closer than central planning to incentive compatibility because the end consumer can drive the discovery of truthful information.

This can explain the power of my Ideal Medical Savings Account.

Consumers creating rules of engagement in a market driven economy can get closest to ideal Pareto efficiency. Since customers determine success of an enterprise by creating demand in a transparent environment, they can get closer to an efficient system.

Consumers can create the rules of the game for compatible incentives. Consumers must have the appropriate financial incentives to maintain their health. They must also own their healthcare dollars.

The government should help consumers design the rules of the game and then get out of the way. The rules should be designed so the patient is first. 

At present the insurance industry is taking advantage of the patients, doctors and hospital systems. The hospital systems are taking advantage of the patients, doctors and insurance companies. Doctors are taking advantage of the insurance companies, hospital systems, patients and the government. The government is taking advantage of the hospital systems, the doctors and the patients. Everyone is pursuing his or her own vested interest at the expense of other stakeholders.

 The insurance companies take advantage of employers.  The drug companies are taking advantage of patients and unduly influencing physicians.

In our healthcare system everyone is pursuing his vested interest in a game that has rules that do not lead to “incentive compatibility.”

Some politicians think central planning can result in producing effective rules and appropriate controls.

Historically, central planning has not worked. 

Before effective healthcare reform can take place, rules acceptable to all the stakeholders must be in place. Stakeholders must create price transparency and understand the value of compromise.

It must be understood why it is important that consumers drive the healthcare system and not the central government. Only consumers can create an undistorted efficient market driven system.

Consumers have to have be empowered and given incentives to align all the stakeholders’ incentives. The best and easiet program to achieve this goal is my ideal medical saving account.

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

 

 

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War On Obesity: Part 12

Stanley Feld M.D.,FACP,MACE

 

Obesity is a major problem for the healthcare system. I am waging a War on Obesity. This article is Part 12 of my War on Obesity.

It is essential that a public service campaign at every socioeconomic level be mounted to explain the long term danger of obesity and how to combat its occurrence. Obesity is responsible for many chronic diseases and their complications. Its cost to the healthcare system is not sustainable. Diets might work short term. Lifestyle change is the only thing that will work long term.

The new administration should join me in my War on Obesity. It has been very responsive to the potential swine flu pandemic. The media has been very responsive to this important news story. Why can’t the administration develop a public service campaign to create an important healthcare story about the obesity epidemic? It might precipitate lifestyle change.

Neither President Obama nor the congress has suggested such a plan. The main message of my public service campaign would be:

2.2 pounds of fat equal 9000 calories

In order to lose 2.2 lbs weight you must eat 9000 calories less than you burn or burn 9000 calories more than you eat.

9000 calories is hard to lose and easy to gain

The federal government subsidizes school lunch programs in schools K-12. These school lunch programs were set up 50 years ago to counter malnutrition in under-privileged families. In 2009 the problem is childhood obesity. A new approach must be taken.

“The federal school lunch program, which subsidizes meals for 30 million low-income children, was created more than half a century ago to combat malnutrition. A breakfast program was added during the 1960s.”

The federal school lunch program is trying to produce healthy meals. They fail for two reasons. First, many schools do not control portion size. Second, those same schools still have snack bars, vending machines and à la carte food lines.

Federal rules that govern the sales of these harmful foods at schools are limited in scope and have not been updated for nearly 30 years. Until new regulations are written, children who are served healthy meals in the school cafeteria will continue to buy candy bars, sugary drinks and high sodium snacks elsewhere in school.

This is an example of a perverse outcome to a government mandate. The idea is good. The rules to execute the mandate are poor. The government will respond to people power (public opinion).

Public opinion can influence government policy and the media. If the people are passive they will have an environment that is good for vested interests. In the case of school food intake the vested interests are the candy, soda and junk food manufacturers and the school systems. The vending machines are a profit center for school districts that are underfunded by government. The profits are used to finance important school projects.

“Many states’ school districts have taken positive steps. But others are likely to resist, especially districts that sell junk food to finance athletic programs, extracurricular activities, even copier expenses.”

I did a Google search to see the breakfast and lunch menus of some independent school districts. Each has a disclaimer to avoid liability. Most provide between 650 and 1200 calories for lunch and 250 to 600 calories for breakfast depending on the portion size and the number of items a child can pick up.

Menus meet recommended dietary guidelines and may change due to product availability or other market changes. In accordance with Federal law and U.S. Dept. of Agriculture policy this institution is prohibited from discriminating on the basis of race, color, national origin, sex, or disability. To file a complaint of discrimination, write USDA,

Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Ave., SW Washington, DC 20250-9410 or call 202-720-5964. USDA is an equal opportunity provider and employer.

An obese child needs to burn 9000 calories in order to lose 2.2 pounds. An intake of 900 to 1800 calories for two meals is not going to help when a inactive obese child may burn only 1500 calories per day.

In an attempt to increase academic performance test scores, physical education has been eliminated from many school curriculum because of “school funding”. The lack of exercise increases the obesity epidemic.

It is going to take a national educational program for parents and children understand the basic etiology of obesity and caloric intake and output to conquer the obesity epidemic. It is going to take a coordinated effort by local parent teachers associations (PTA) to eliminate vending machines and snack bars from the schools. It is going to take a PTA protest to reinstitute rigorous physician education in school districts. It is going to take “People Power” with educational help from the federal government.

The federal government has the ability to do this in a public service educational campaign. It could use the money for this campaign from the money it saved using my universal EMR and my ideal medical savings account rather than wasting it on ineffective new bureaucratic institutions.

If President Obama doesn’t do something, chronic diseases resulting from obesity are going to continue to drive healthcare costs through the roof.

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

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President Obama Will Ration Healthcare. Wake Up America! : Part 1

Stanley Feld M.D.,FACP,MACE

I spent a glorious weekend with Brad and Daniel in Las Vegas at the Consumer Electronic Show (CES). I thought there were some phenomenal electronics exhibited which will be coming to Main Street soon.

Brad introduced me to many young entrepreneurs who are very concerned about providing healthcare insurance for their employees. They are having trouble finding affordable healthcare insurance. My suggestion is for them to consider my ideal medical savings account.

Most of these young entrepreneurs realize they do not understand the issues that have resulted in the exorbitant healthcare insurance premiums.

I told them to not listen to the sound bytes of Tom Daschle and his team. They do not understand the issues either. If they did, they would be pursuing a different course. Tom Daschle is going to try to force the Democratic Party’s healthcare agenda of the last forty five years down the country’s throat. .

I have described most of the issues. I like President-elect Obama very much. Many voted for him because of the promise of renewal, new thinking and hope for the future.

David Remnick of the New Yorker summarized Barack Obama’s appeal.

“Barack Obama was not elected the forty-fourth President based on the depth of his legislative achievements or on the length of his public service. John McCain and Hillary Clinton were the “experience” candidates. Rather, Obama projected an inspiring message, a “narrative,” of change at a moment when so much in American life––the economy, the environment, national security, health care––is in such parlous condition that, for many voters, political familiarity seemed less a source of solace than a form of despair.

Barack Obama has hired “experienced people” to run his healthcare team( Daschle, et al). His “team” has the same old tired ineffective story that Hillary Clinton and others have had for healthcare reform. It is a story the American public does not want to hear.

During the campaign, Obama embodied novelty and a broader American coalition, and everything we heard about his temperament—as a community organizer in Chicago, as a president of the Harvard Law Review, as a legislator, as a campaigner—spoke of someone who, in contrast to the outgoing, faith-based President, possessed a gift for rational judgment and principled compromise. “

His healthcare advisors are old school. They do not understand the importance of the physician patient relationship. They refuse to understand the problems in the healthcare system. They ignore the importance of patient responsibility for their own health and healthcare. They do not seem to believe in the importance of the role of incentives and self reliance as an engine of America’s greatness. They believe government can fix everything.

President Barack Obama’s healthcare team is going to be successful in passing healthcare legislation. Healthcare system reform they will propose and pass will fail. It will bankrupt America as it is bankrupting Massachusetts.

The Congressional budget office estimated a 100 trillion dollar a year healthcare deficit in forty years without an improvement in the health of seniors alone. Adding the entire population to the Medicare roles will make this deficit unimaginable.

Tom Daschle’s plan is similar to the Massachusetts universal healthcare plan. We must understand the cause for the failure of the Massachusetts plan in order to comprehend the impending failure of Tom Daschle’s plan. There is nothing innovative about his plan. It is the same plan Hillary Clinton advocated in 1993 and others in the Democratic Party advocated for many years.

The plan will probably pass in a congressional vote because Americans are frightened by a huge economic recession. They have little idea what is being advocated by the Daschle healthcare team.

When a population is frightened all politicians have to promise is hope. People will give unprecedented power to politicians even if they do not understand the results of those promises.

Many are claiming Ayn Rand was right 52 years ago when “Atlas Shrugged” was published. The names of the new controlling bureaucracy are different but the methodology is the same.

Where are you John Galt?

Mr. Obama is taking a dangerous chance by advocating these old, and proven to be ineffective ideas. The Congressional Budget Office (CBO) noted in its report the failure to reduce the cost of healthcare significantly or increase the quality of care. The CBO’s report was published just before Christmas when everyone’s thoughts were on the holiday.

Wake up America!! Please !!

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

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Is Medicare An Effective Bureaucracy? Part 1

 

Stanley Feld M.D.,FACP,MACE

Barack Obama’s medical plan wants to guarantee universal insurance coverage similar to that offered through the Federal Employee Health Benefits Program. (Medicare Part C)

“The benefit package will be similar to that offered through Federal Employees Health Benefits Program (FEHBP),

the plan members of Congress have. The plan will cover all essential medical services, including preventive, maternity and mental health care.”

I stated that forming a new bureaucracy to improve medical care is not the answer. Bureaucracies are inefficient and at time wasteful.

The answer is not Mr. Obama’s proposed National Health Insurance Exchange . I think a new bureaucracy will make things worse.

“· National Health Insurance Exchange: The Obama plan will create a National Health Insurance Exchange to help individuals who wish to purchase a private insurance plan. The Exchange will act as a watchdog group and help reform the private insurance market by creating rules and standards for participating insurance plans to ensure fairness and to make individual coverage more affordable and accessible. Insurers would have to issue every applicant a policy, and charge fair and stable premiums that will not depend upon health status. The Exchange will require that all the plans offered are at least as generous as the new public plan and have the same standards for quality and efficiency. The Exchange would evaluate plans and make the differences among the plans, including cost of services, public.”

Medicare has been proud to advertise that it is an efficient bureaucracy. It has declared that its overhead is only 2.5%. We now know this is not true. Medicare outsources most of its administration services to the healthcare insurance industry. The healthcare insurance industry builds in its administrative fees to the cost of care. The New York Times obtained a draft of a report prior to being made public. The inspector general is studying the report before it is released and might change it.

Medicare’s top officials said in 2006 that they had reduced the number of fraudulent and improper claims paid by the agency, keeping billions of dollars out of the hands of people trying to game the system.” “But according to a confidential draft of a federal inspector general’s report, those claims of success, which earned Medicare wide praise from lawmakers, were misleading.”

Medicare told outside auditors to ignore government policies that would have accurately measured fraud.

“For example, auditors were told not to compare invoices from salespeople against doctors’ records, as required by law, to make sure that medical equipment went to actual patients.”

“As a result, Medicare did not detect that more than one-third of spending for wheelchairs, oxygen supplies and other medical equipment in its 2006 fiscal year was improper, according to the report. Based on data in other Medicare reports, that would be about $2.8 billion in improper spending.”

This miscalculation does not represent direct patient care. These supplies are essential to manage chronic disease. However the abuse of responsible sales these supplies by secondary stakeholders is not controlled by Medicare. 

I campaigned to have Medicare pay for home glucose monitoring strips. It is an essential part of diabetes care. To my astonishment, private companies were formed to refill glucose strips automatically. Patients would not need strips because they were not compliant with physicians’ orders. Compliance rate for home glucose monitoring is only 50%. Medicare is spending twice as much as they would if the patient was responsible for buying the glucose strips.

The extra money paid could be directed to paying for disease management. Patients could be taught the importance of measuring their blood sugars three times a day. Instead the private companies are profiting from the sales extra glucose strips.

“That same year Medicare officials told Congress that they had succeeded in driving down the cost of fraud in medical equipment to $700 million.”

Pete Stark claimed, “We’re speechless”. Mr. Stark and his ilk consistently claim that Medicare is a model for government-run “universal” health care because it spends less on overhead than the private sector.”

To look better to the public, you cook the books,” Mr. Stark continued. “This agency is incompetent.”

The report points out a basic problem of bureaucracies. The goal always seems to be to look good rather than perform its job efficiently. The people must force our leaders to face reality. Congress and the administration must begin to trust citizens to be responsible for their own Medicare dollars rather than have a bureaucracy or healthcare insurance company in charge of their needs.

“Some lawmakers and Congressional staff members say the irregularities that the inspector general found were tantamount to corruption and raise broader questions about the credibility of other Medicare figures.

Senator Grassley who has praised Centers for Medicare and Medicaid Services for efficiency in the past has demanded that heads roll.

“Congressional staff said the Centers for Medicare and Medicaid Services — the agency overseeing Medicare — was lobbying the inspector to play down the report’s conclusions.”

This response is only natural and to be expected when bureaucracies are challenged and exposed.

“A spokesman for Medicare said that the agency agreed with the inspector general that the agency’s reported level of improper billing for durable medical equipment, or D.M.E., should have been higher. But Medicare says the $2.8 billion figure is unsupported.”

The media is the message in our sound byte society. Once the day of the reporting has passed the story is forgotten. Unfortunately the implications of the story are profound

“Fraudulent and improper payments have long bedeviled Medicare, a $466 billion program. In particular, payments for durable medical equipment, like power wheelchairs and diabetic test kits, are ripe for fraud.”

There is a simple plan for Barack Obama to adopt. It is my ideal Medical Savings Account. Medicare patients should be responsible for spending the first $6,000.00 dollars. They would be careful to not waste their Medicare insurance money. Maybe they would not get the best wheelchair in the world or let companies send them diabetes kits they do not use.

A government bureaucracy should make the rules. If vendors break the rules patients should report them. The government bureaucracy should act quickly to enforce the rules. With my ideal medical savings account you create an enormous policing agency. People will not tolerate waste when their money being wasted. This will eliminate fraud and the waste of the peoples money.

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

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McCain Non Health Plan: Part 2

 

Stanley Feld M.D.,FACP,MACE

 

Last week I listened to a speaker defending John McCain’s health plan. He defended the $5000 tax credit for a family of four. Most people know what a tax credit means but would be puzzled by its direct effect on healthcare. The tax credit means one can deduct $5000 dollars from one’s taxable income.

If the average insurance policy for a family of four is $12,000 a year, how does the tax credit translate into an effective healthcare reform? My answer is very poorly! The real message is abstract and can also be a trick to help employers abandon providing healthcare insurance for their employees.

The claim is the tax credit levels the playing field for the self employed and the employed whose employers provide healthcare insurance for them with pretax dollars. The employer pays for the employee’s healthcare insurance. The employee does not pay income tax on the money spent for healthcare insurance and the employer is able to deduct the premium cost from gross revenue. As healthcare premiums have increased rapidly many employers can not afford the benefit and either stop providing healthcare insurance or healthcare insurance that provides fewer benefits.

Presently if someone was self employed he would buy healthcare insurance with post tax dollars. Therefore, a healthcare premium of $12,000 year for healthcare insurance paid for with post tax dollars would require that he earn $17,142.85 in pre-tax dollars. (12000= 1x-.3x x =12000/.7= $5142.85) John McCain’s tax credit makes up the $5,000 difference. The consumer would have to pay the $12,000 premium with $7,000 post tax dollars or $10,000 pre tax dollars The fallacy in McCain’s tax credit plan is that consumers might not be able to afford the $12,000 per year to allocate that much money for healthcare insurance. The plan would be an advantage to employers and not employees. It would get employers out of providing healthcare insurance for their employees. Additionally, it would not level the pre tax and post tax difference that exists today.

Total pre-tax payment of the healthcare insurance dollar is only one step in the repair of the healthcare system. It is not a healthcare plan. Consumers must have control of the healthcare dollar not the healthcare insurance companies. My ideal medical savings account, real price transparency, support for chronic disease management,malpractice reform, patient and physician incentives to prevent chronic disease, and instant physician payment to eliminate non value added administrative cost must be added simultaneously for healthcare reform to make any progress. A consumer driven healthcare system is the only way to create a competitive marketplace.

John McCain’s plan opens the door for employers to abandon this important employee benefit without adding any value or efficiency to the healthcare system. It also eliminates the purchasing power of employers in negotiating healthcare insurance.

If Mr. McCain becomes president he might sneak in as a stand alone item of healthcare reform (an important element of the total package of health care reform), a law that will result in a disadvantage to employees covered with insurance by their employer. It will create an advantage the employer and the healthcare insurance industry.

A lot of smart people are thinking about the healthcare problem. It is time to think about it in terms of the constitution. We are a nation that whose government is chosen by the people for the people and not isolated vested interests. In the season that candidate are begging us for our vote we need to demand our needs be addressed.

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