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Health Insurers Will Accept Universal Coverage! On Condition!

Stanley Feld M.D.,FACP,MACE

A few weeks ago in a speech in Detroit the CEO
of Aetna Healthcare Urged Mandatory Health Care Coverage
.

He
said it would lower costs
healthcare insurance
costs
.

Of course the CEO of Aetna would want mandatory healthcare coverage with the
government providing a subsidy to consumers who could not afford to buy
healthcare insurance. The
more lives insured the more profit his healthcare insurance company would
make.
Aetna CEO’s statement is clearly self serving.

The cost of healthcare insurance could decrease or stay the same.

If the government subsidizes the premiums of all Americans the price of the
premium might also go up. The
Massachusetts mandate has experienced cost overruns
for a very simple reason
Premiums have gone up in Massachusetts and the government has paid the
difference. Premiums are put out for bids and the healthcare industry is in
control of determining the bid.

"The
health insurance industry said Wednesday that it would support a health care
overhaul requiring insurers to accept all customers, regardless of illness or
disability. But in return, the industry said, Congress should require all
Americans to have coverage.”

Consumers should have freedom of choice of physicians. If they want
healthcare insurance they should be able to buy it. If they qualify for
government assistance they should be able to buy it under the same conditions a
consumer not qualifying for government assistance buys insurance. The government
should not mandate consumers to buy healthcare insurance.

The healthcare insurance industry claims “In the absence of such a
mandate, insurers said, many people will wait until they become sick before they
buy insurance.”

If the consumer got sick and did not have healthcare insurance the financial
penalty for buying insurance after they got sick would be higher than before
they got sick. This would be a deterrent to consumers’ gaming the system and not
becoming covered by insurance. Healthcare insurance at an affordable price
should be available to all.

“The proposals, put forward by the insurers’ two main trade associations,
have the potential to reshape and advance the debate over universal health
insurance just as President-elect
Barack
Obama
prepares to take office.

The problem is there is no transparency in the pricing of healthcare
insurance nor is there an effective system of competitive pricing. There is also
no deterrent to overuse of the healthcare system by consumers. Consumers have no
incentive to keep the price down for their care. There is no price transparency
or pricing competition among hospital systems. Hospital systems have inflated
fees. Their actual costs of services are not transparent to the government or
the healthcare insurance industry.

Physicians can be patient advocates. The public must be empowered to make
physicians competitive.

Finally, pharmaceutical prices are random and in most causes not justified.
There are at least five different prices for pharmaceuticals. The prices vary
from a retail price, an average wholesale price and a wholesale price.

The temptation by healthcare policy wonks is to regulate the pharmaceutical
industry by imposing price controls. Price controls never work. They only make
things worse. Real price transparency and competitive pricing of drugs is
essential. It is also essential to make physicians aware of the prices of drugs
they prescribe. If the brand name drug is ten times the price of a generic drug
both the patients and physicians should know it and be aware of the difference.
If physicians feel the drug effect of the brand does not justify the price
difference. Physicians will order the generic drugs.

“Research suggests that some insurers turn down 10 percent or more of
applicants for individual coverage because of their pre-existing medical
conditions.

A
55-65 year old male with mild obesity (BMI=28), mild hypertension and an LDL of
105 (normal is less than 100) would be rejected by a healthcare insurance
company. If he was in a group insurance plan he would be accepted.
Unknown
to his employer the premium the employer pays for all his employees would be
increased. Medicare will automatically accept this person at age 65.

“Mr. Obama said he wanted to be certain that insurance was affordable and
available to all before considering such a broad requirement”

This is very wise on Mr. Obama’s part because the insurance industry is going
to control the premium. He needs to guarantee affordability.

“In the individual market, people can choose whether or not to apply for
coverage,” Mr. Hamm said in an interview. “If they know they can obtain coverage
at any time, many will wait until they get sick to apply for it. That increases
the price for everyone.”

The insurance industry wants to be assured that the market is expanded. They
are killing the goose that laid their golden egg because they can be cut out of
the picture entirely.

“The new policy statements are silent on two important issues: how to enforce
an individual mandate and how to regulate insurance prices, or premiums. While
insurers would be required to sell insurance to any applicant, nothing would
guarantee that consumers could afford it. Rate regulation promises to be a
highly contentious issue, since it pits the financial interests of insurers
against those of consumers.”

Medicare has guaranteed rates and insurability regardless of the severity of
the illness. The government subsides the shortfall. The insurance industry’s
only interest is net profit without price transparency.

Alissa Fox, a vice president of the Blue Cross and Blue Shield Association,
said the individual mandate was an indispensable corollary of any approach
forbidding insurers to reject applicants because of health status.

If the healthcare insurance industry continues to make demands that guarantee
excess profits the government will impose universal coverage with a single party
payer (socialized medicine) and all
the problems that will bring
.

 

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

 

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Dear President- elect Barack Obama: Part 5

 

Stanley Feld M.D.,FACP,MACE

 

Obama Asks Nation for Input On Reforming Health System

‘We Want Your Exact Ideas,’ Daschle Says

I believe Tom Daschle and your healthcare team have preformed ideas on how to repair the healthcare system. Some are good ideas but most are poor ideas. The bad ideas will not work and only make things worse. Their business plan is rooted in an old paradigm. Your administration should change the business plan so that it enables patients to be responsible for their own health and their healthcare dollars.

Here are my exact ideas:

Let’s use common sense to create an innovative system to repair the healthcare system.

In my last letter to you I promised to describe the basic problems causing the dysfunction of the healthcare system. I have previously stated that all the stakeholders are at fault in causing the dysfunction. The biggest villain is the healthcare insurance industry. Government healthcare programs are dependent on the healthcare insurance industry to be the administrative service provider. The healthcare insurance industry’s lack of real financial transparency is the cause of major increases in healthcare costs.

The social contract in the healthcare system is between patients and physicians. If we did not have patients and physicians we would not need a healthcare system. Patients should drive and control the healthcare system. They should not be the victim of a dysfunctional system.

Patients should be responsible for their well being (health) and medical care. Presently, patients’ do not have incentives to be responsible for their health. This attitude can be changed by providing financial rewards for health maintenance. If patients owned their healthcare dollars and had the ability to keep the unspent money in a tax free retirement trust account patients would become skilled purchasers of healthcare. If patients had a pre existing illness and spent the required amount of money to avoid complications of their chronic disease they should receive a reward of additional money. There will be consumers who abuse the system but these outliers should be easy to spot.

Tom Daschle’s plan should be focused on letting patients own and control their healthcare dollars. If he could shift his focus to this concept your administration would be on the way to a solution to fix the system rather than extension of policies that are destined to fail. Massachusetts’ universal care system is a perfect example of healthcare policy that is destined to fail.

How do you get consumers have incentive to be cautious about their health and their healthcare dollar? If s were responsible for the first $6000 of their healthcare insurance dollar you would see a marked reduction in the costs to the healthcare system.

Your administrations should teach consumers how to spend their healthcare dollar wisely. You should also be concentrating on decreasing society’s hazards to our health in a serious way. This approach would be much better than creating a Federal Health Board that dictates access to care.

Repair of the healthcare system could be achieved by instituting my ideal medical saving account. The federal government would end up spending less money and improving care. Patients will be motivated to take better care of themselves. They would be motivated to shop for the best care rather than having care dictated by a panel of experts.

Your administration must create a system where patients are the deterrent to abuse in the healthcare system and not the government. Patients can do it more efficiently. Your administration can set the appropriate rules and regulations.

A recent article in the Journal of Clinical Endocrinology and Metabolism showed that 20% of hospital admissions have undiagnosed diabetes mellitus. These complications could have been prevented if the patients knew they had diabetes and knew how to control their blood sugars before the complications. This awareness could be achieved with the government promoting public service announcement and developing a system of cultural change. I referred to Mayor Blumberg’s subway campaign in my War on Obesity.

Physicians need to be put in a position where they compete for patients. This would result in better service and better care. Punitive damages imposed by your healthcare team will not encourage physicians to excel. It generates more anger and mistrust among your workforce (physicians).

How about some malpractice relief to decrease the national burden of defensive medicine?

How about some recognition for pursuit of excellence by ordinary practicing physicians? The practicing physician is your major workforce and not you academic experts who will be the judges in your Federal Health Board. Recognition is a non punitive way that will encourage physicians to excel.

How about medical informatics crafted as an extension of the physician’s care? Many physicians are opposed to internet information because there is so much junk on the internet. If the information came from the physician’s personal site it would be easier for physicians to put the patient’s disease into clinical perspective.

How about the government providing a universal Electronic Medical Record? The administrator can charge physicians by the click rather than physicians making a capital expenditure they cannot afford. E-prescribing capability should be provided in the same way. The federal government provided us with Electronic billing in the 1980’s and its implementation has worked well.

Money will be saved by creating a better system and not creating a more bureaucratic system.

I hope you will seriously consider implementing some of my suggestions and decrease the fixation on building a consensus without the practicing physicians’ input using the wrong ideas to create healthcare policy. These policies are destined to fail.

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Dear President-Elect Obama: Part 4

 

Stanley Feld M.D.,FACP,MACE

You made a promise to the American people. You would listen to everyone and choose the best plan. If it did not work you would change the plan. You campaigned on a platform of universal healthcare without mandates. It has recently been reported that a consensus is emerging on universal healthcare.

“The prospect of bold government action appears to be accepted among players across the ideological and political spectrum, including those who opposed the idea in the 1990s”.

I see no evidence that this consensus includes the opinions of practicing physicians. There is some evidence that you have included large well known universities, clinics and hospital systems. However they do not represent the majority of the practicing physicians in the country. The practicing physicians  are your workforce and they are the people whose opinion you should seek.

“The answer says leading groups of businesses, hospitals, doctors, labor unions and insurance companies — as well as senior lawmakers on Capitol Hill and members of the new Obama administration — is unprecedented government intervention to create a system of universal protection.”

This sounds like the typical government way of doing things. The consensus crafts the laws and regulations. When the programs fail the law makers are confused. The programs fail because the laws and regulations do not get to the basic problems. This leads to more regulations leading to more failure.

I am afraid you are going to rely heavily on Tom Daschle. He is a nice man and an effective legislator. He is also a self appointed healthcare expert. I have written an extensive review of Mr. Daschle’s book and plan. His plan is dead wrong. His policies do not solve the basic problems of the healthcare system. 

I beg you. Please do not rely on his plan to solve the healthcare problems. It will only increase the cost, decrease compliance and drive the country into healthcare bankruptcy more quickly.

There are some good ideas in his plan but they are poorly crafted. The recession and rising unemployment will certainly increase the uninsured to well over 250,000. I believe universal healthcare is a concept that has come of age.

“Mr. Daschle wants to open to all Americans the Federal Employee Health Benefits Plan–a menu of private-insurance options now accessible only to government workers.”

He suggests there would also be some form of means-tested premium support (or tax benefits) for Americans who couldn’t afford one of the presently available plans. This could solve the uninsured problem. It would at least put the uninsured premium payment on a pretax dollar schedule and level the playing field. Private health plan contributions made by employers enjoy pre tax status. 

However, by making the Federal Employee Health Benefits Plan available to all citizens you are providing a perfect excuse for employers to drop the health benefit.

Providing a healthcare benefit to employees has become too costly. The Bush administration, by distorting the goals of my ideal Medical Savings Accounts, with Health Savings Accounts tried to provide an excuse for employers to drop the healthcare benefit

Employers have had to decrease healthcare coverage to keep the premium prices within reach. Many citizens are under insured. Employers would rather pay the government and let you be the provider of healthcare insurance for their employees. Universal healthcare with a single party payer then becomes socialized medicine with restriction of freedom of choice by the patients and restrictions on practice of physicians.

Your administration would have to continue to outsource the administrative services to the private healthcare insurance industry. This would thrill the healthcare insurance industry as I have described previously.

Your expanded government program would experience the same financial debacle the state of Massachusetts is experiencing with its universal healthcare plan. In fact the state of Massachusetts has applied for an addition 8 billion dollar bailout after receiving 2 billion dollars from the federal government already.

The Federal Health Board is an example of a bad idea with potential for terrible results. Rather than being a board that creates educational programs for physicians to improve the quality of care (an attribute that has not been clearly defined) it is punitive to physicians and restrictive to patients’ access to care. Remember ,when the CEO of Winn-Dixie was asked what his secret to success was. He said, “Don’t get the A&P mad”.

The health board would manage the pricing, and use, of tens of thousands of medical products and procedures. How can a single board (instead of, say, the market) make so many decisions, and wisely? Mr. Daschle proposes a dozen or so “experts” who would be “chosen based on their stature, knowledge, and experience, ensuring that the decisions they make have credibility across the health-care spectrum.”

Mr. Daschle admits that the board is loosely based on the National Institute for Clinical Excellence in Britain and the Federal Joint Committee in Germany. Both are charged with managing the public’s access to higher-cost drugs, medical devices and procedures. “But both are growing increasingly unpopular in their home countries–precisely because they’ve become a triumph of cost-containment over patient access and choice.

“Despite the fresh enthusiasm Mr. Daschle shows for his federal health-board proposal, it’s not exactly a new idea. Mr. Daschle himself proposed it as part of the failed American Health Security Act of 1993.”

This is not the way reform the U.S. healthcare system. The healthcare system needs to be reformed using common sense. I am hoping you will use common sense and get to the core of the healthcare systems problems. I will discuss common sense reforms in my next letter to you.

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Where are you now Bobby D?

 

Stanley Feld M.D.,FACP,MACE

As a Columbia College student in the late 1950’s I worked in a Catskill Mountain hotel resort as a waiter during the summers to earn money for college tuition and expenses.

I had a great job in a wonderful adult only hideaway hotel at the end of a winding road. The tips were great. I was able to earn enough to pay for college tuition and some expenses each year.

The job also brought with it many interesting experiences. One that sticks in my mind is my experience with Bobby D. Bobby was at least ten year older than me. He was a local fellow who worked for the phone company during the week and moonlighted at the hotel on weekends.

Most hotels had waiters and busboys to serve the guests. This hotel had waiters only. The waiters served two tables of eight people each during the week. On the weekends the hotel had an inflow of guests so it hired part time waiters. Bobby was one of the part time waiters. Bobby and I were partners. Bobby had two tables and we shared a third table.

On weekends the lines in the kitchen for the various food courses were unbearably long and could result in disastrously slow meal service. If timing was just right you could get to the next course line first and have a smooth service meal. If you were close to last you were guaranteed to provide poor service. Poor service resulted in poor tips.

Bobby was a genius. He had the solution for getting to the line for the next course first at every meal. The funniest incident occurred during a busy Sunday breakfast meal.

Saturday night was usually a late night for most guests. They had difficulty getting up on Sunday mornings. However, the dinning room usually filled up all at once. It was important to have the right timing.

Breakfast is a difficult meal because all the various egg dishes were individually prepared with custom ingredients. Bobby’s trick was the more times you could get two or three dishes cooked at the same time the faster your service would be. It required teamwork. Sometimes I would stand on line and get three dishes for both of us and sometimes he would stand on the line. He was the quarterback and gave the orders to our two man team. .

One Sunday morning our guests started coming in late and the pace of our breakfast looked like it was going to be grim. He ordered me to get 25 orange juices, 10 tomato juices and 5 grapefruit juices. This was called speculating and it was a potential mistake. We were encouraged not to speculate by the maitre de. Bobby assured me none of the stewards in the kitchen would be watching the juice line. It would not be a problem. I asked where we would put all those juices so the maitre de would not see them. He said don’t worry he would take care of it. It would be his problem. He assured me it would save us extra trips to the kitchen and give us an advantage at the short order cooks’ line for egg orders. I obeyed. He was right.

However, we hit the wall when we ran out of tomato juice at a critical time in the meal. Bobby should have figured that a lot of people would have a hangover from Saturday night and want tomato juice. The popular folklore at the time was tomato juice with Worcestershire sauce would straighten out your hangover.

A young single woman came in an asked for tomato juice with Worcestershire sauces. I asked Bobby what to do? He said give her orange juice and tell her to make believe it was tomato juice.

I looked at him like he was crazy. He said just do it! He was right. It worked. The woman was at the table we shared. It was his turn to get the egg orders. I believe she understood our situation and was o.k. with it because she wanted to get her eggs as quickly as possible.

The next person in was a guy about 6’5” and 250 lbs. He had not been pleasant the entire weekend. He was definitely hung over. He requested tomato juice. It was my turn to get the eggs and Bobby brought over orange juice and told him to make believe it was tomato juice.

Well, you can guess what happened. I hear the yelling and cursing while I was in the kitchen. This guy was not taking his tomato juice substitute in the right spirit. I could hear Bobby trying to console him. Bobby’s strategy was the best defense was a strong offense. Bobby got angry. He suggested the guy choose another table if he couldn’t play ball in the spirit it was intended. I thought the guy was going to tear Bobby apart. The maitre de calmed the guy down and got him his tomato juice. We did not get a tip from this guy for the weekend.

Needles to say we never speculated on juice again. The life’s lesson is to be careful what you speculate on whether it is orange juice, oil prices, real estate or stocks and bonds. You never know what the price will be.

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

During World Diabetes Day in Dallas Dr. Ken Cooper delivered a terrific keynote address concerning observational studies he has performed. He related fitness to obesity, the early onset of childhood type 2 diabetes mellitus, academic achievement and behavior.

Dr. Cooper is passionate about eliminating obesity in children. He presented us with astonishing statistics.

“Estimated obesity rates for children 6 to 11 years old have increased from 15.1% in 1999 to 18.8% in 2004. The Department of Health and Human Services estimates that 20% of children and youth in the United States will be obese by 2010.

Washington D.C. was first in the nation with 22.6% of children age 10-17 being obese. Texas was sixth with 19.1% of children aged 10-17. Forty two percent (42%) of fourth graders and thirty nine percent (39%) of 8th graders were obese in 2004. Seventy percent (70%) of these children will become obese adults and one in three will develop diabetes.

Type 2 Diabetes Mellitus is common in obese adults over the age of 40. A syndrome consisting of obesity, diabetes mellitus, high lipid levels and hypertension has been described and named “Metabolic Syndrome”. The incidence of coronary artery disease, strokes, end stage kidney disease and the complications of diabetes mellitus is high in patients with Metabolic Syndrome.

These illnesses are costly to the healthcare system. They are secondary to insulin resistance which is secondary to obesity. In order to save the healthcare system from bankruptcy we must have a national War on Obesity.

The obesity epidemic has spread to our children. It has led to an increasing incidence of type 2 diabetes mellitus in our children and earlier in life complications.

“It is estimated that 33% of children born after the year 2000 will develop diabetes with the incidence being higher in Hispanic and African-American children” “ It has been estimated Children developing Type 2 Diabetes before the age of 14 will have their lifespan shortened by 17 to 27 years. “

Dr. Cooper developed a Fitnessgram in 1982. It is composed a series of tests to measure fitness. He demonstrated, in 13,600 men followed for 8.6 years, that the less fit they are the higher the mortality rate. (JAMA, 1998).

He tested the fitness of over one million children. In California he tested fitness against reading and math skills in approximately 1.3 million children in grades 5,7,and 9.

He found; “only 25% of the students could pass all 6 of the Fitness tests. 43% could not walk or run 1 mile in the allotted time. “

As interesting and perhaps more important finding is that the higher the childrens’ fitness scores the higher the children’s test scores in reading and math using California’s standard test.

Children in the national school lunch program did worse in reading and math testing than children not on the free lunch program regardless the number of fitness standards achieved. The free food lunch program was not a healthy diet. The program has encouraged the obesity epidemic. I had not previously known of the school food programs relationship to scholastic achievement.

Public schools in Texas are obsessed with high achievement on the Texas Assessment of Knowledge and Skills test (TAKS). The obsession is related to school district funding, the no child left behind program and federal funding.

Dr. Cooper looked at the Math and Reading scores of 8189 5th and 7th graders and related it to the number of fitness standards achieved. Again the higher the fitness scores achieved the higher the math and reading scores on the TAKS test.

Miller in the Journal of Pediatric in 2006 looked at early onset of obesity and its effect on IQ and found;

A link between marked obesity in toddlers and lower IQ scores, cognitive delay and brain lesions similar to those seen in Alzheimer’s disease was observed.” 

 

Dr. Cooper’s take home point is obesity is the villain and fitness is the cure. Texas schools eliminated Physical Education in order to have more resources to teach children to pass the achievement tests (TAKS). This seemed backwards to Dr. Cooper. He thought it might be better to promote fitness and decrease obesity. This would lead to an increase in test scores and a decrease in childhood type 2 diabetes mellitus.

Dr. Cooper then petitioned the Governor of Texas a Senator and State Representative to introduce a bill to reinstitute Physical Education in the Texas school systems on the basis of this information. The bill passed but was not funded.

Dr. Cooper raised 3 million dollars in private contributions for his Texas Youth Evaluation Project. He has to date tested over 1 million children. Fitness scores varied from 32 to 8/100 for girls depending on age and 27 to 8.5/100 for boys. The older the children the less fit they were.

His plan is to relate an increase in fitness to a decrease in obesity, and childhood type 2 diabetes mellitus. He is also going to study fitness and its relationship to attendance rates, free lunch programs, TAKS scores, substance abuse, violence and truancy.

My guess is that fitness will have the expected effect on all these parameters. The Youth Evaluation Program is now being spread to many school districts throughout the nation. The federal and state government must support programs to fight obesity. The obesity epidemic is devastating to individual citizens and our society.

.

 

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

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War On Obesity : Part 11

 

Stanley Feld M.D.,FACP,MACE

 

Chronic Renal Disease (CKD) is another example of a disease that is asymptomatic until it reaches end stage renal disease. CKD is increasing with the rising incidence of obesity. Obesity causes patient to have a resistance to their own insulin. Insulin resistance is the hallmark of the Metabolic Syndrome and causes the onset of hypertension, hyperlipidemia (high cholesterol) and type 2 diabetes mellitus.

All of these chronic diseases along with aging are causing chronic kidney disease (CKD). At one time Dr. Norman Kaplan named this complex of diseases (obesity,hypertension,hyperlipidemia,and type 2 diabetes mellitus) the deadly quartet.

If obesity could be avoided or cured the cascade of these chronic diseases and their complications could be avoided. Since the treatment of the complications of chronic diseases result is 80% of the healthcare dollars spent, the total cost of healthcare would be drastically reduced.  

Many Americans are unaware that they are suffering from chronic kidney disease (CKD) because is often asymptomatic until its late stage. Inadequately treated hypertension can result in CKD. Many patients can not afford routine medical evaluations and do not discover hypertension until it is too late. Many patients can not afford medications prescribed so their adherence/ compliance with their physicians recommendations are less than 50%.

“An analysis of federal health data published last November in The Journal of the American Medical Association found that 13 percent of American adults — about 26 million people — have chronic kidney disease, up from 10 percent, or about 20 million people, a decade earlier”. “The burden on the health care system is enormous, and it’s going to get worse”.

“We won’t have enough units to dialyze these patients.”

It would be better to prevent CKD than to pay the cost for chronic dialysis or kidney transplantation. It can be done by preventing obesity along with early diagnosis and effective treatment of hypertension, hyperlipidemia and diabetes?

“Concerned about the emerging picture, federal health officials have started pilot programs to bolster public awareness, increase epidemiologic surveillance and expand efforts to screen those most at risk — people with high blood pressure, diabetes or a family history of kidney disease.”

Pilot programs take too long to complete. They are usually poorly designed to test the effectiveness of the program in the real world. If the concept is sound with minimum risk of failure it should be rolled out widely.

“Patients don’t understand that CKD encompasses a spectrum, and that the majority of patients are unaware they have the condition.” The path to kidney failure can take years.

“Only a tiny percentage of patients with kidney disease need dialysis,” Patients get dialysis or a kidney transplant only when they are in the final stage of the disease, also known as kidney failure or end-stage renal disease.

CKD progresses over the course of years, with its phases determined according to two criteria: the presence of protein in the urine, known as proteinuria, and how effectively the kidneys are processing waste products.

“ CKD itself can damage the cardiovascular system and lead to other serious medical conditions, like anemia, vitamin D deficiencies and bone disorders. Patients are far more likely to die from heart disease than to suffer kidney failure.”

The cost of dialysis should be zero in an ideal world with effective preventative medical care.

“In 2005, more than 485,000 people were living on dialysis or with a transplant, at a total cost of $32 billion. Medicare pays for much of that, because it provides coverage for patients needing dialysis or transplant even if they are not yet 65. In fact, kidney disease and kidney failure account for more than a quarter of Medicare’s annual expenditures.”

If obesity could be controlled and hypertension and diabetes secondary to obesity were eliminated at least another 24 billion dollars annually could be saved by our healthcare system.

The War on Obesity is vital to the survival of our healthcare system. CKD is just one more disease that is secondary to obesity. Our government must take the necessary role in influencing public opinion to reform our lifestyle to prevent the onset of obesity. Consumers must demand reform of the food industry and restaurant industry. The goal must be to a promote healthy lifestyle and discourage obesity.

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

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Lame Duck President Continues To Destroy The Healthcare System

Stanley Feld M.D.,FACP,MACE

 

President Bush continues to try to destroy the infrastructure of the healthcare system despite the fact that he is now a lame duck President.

“In the first of an expected avalanche of post-election regulations, the Bush administration on Friday narrowed the scope of services that can be provided to poor people under Medicaid’s outpatient hospital benefit.”

“Public hospitals and state officials immediately protested the action, saying it would reduce Medicaid payments to many hospitals at a time of growing need.”

As the recession deepens, more and more American’s will be uninsured. As more people lose their jobs they will lose their healthcare insurance coverage. America has a defective definition of poverty. Poverty was last defined in 1955. That level is inadequate. A new poverty level must be defined to enable people in need to qualify for Medicaid.

President Bush is trying to eliminate the Medicaid entitlement. However, cities have to attract lower income workers and deal with their healthcare needs. Poverty must be redefined in order to provide Medicaid and keep low income workers in cities and states.

President Bush should realize that no matter what happens to Medicaid the government is going to be the payer of last resort. It would be wise to provide preventive medical care with incentives to the poor to avoid illness before they develop complications of chronic diseases. End-stage kidney disease is on the rise because hypertension and diabetes is not controlled. Dialysis consume 32 billion dollar a year in Medicare and Medicaid funds

“The new rule conflicts with efforts by Congressional leaders and governors to increase federal aid to the states for Medicaid as part of a new economic action plan. “

President-elect Barack Obama has endorsed those efforts to redefine poverty. The Bush administration continues to issue executive orders that will compromise safety net hospitals.

“In a notice published Friday in the Federal Register, the Bush administration said it had to clarify the definition of outpatient hospital services because the current ambiguity had allowed states to claim excessive payments.”

The administration’s excuse is transparent. The fiscal integrity of Medicaid has already been compromised.

“This rule represents a new initiative to preserve the fiscal integrity of the Medicaid program,” the notice said.

After the rule was published a series of protests appeared but has fallen on deaf ears. The administration is willing to bail out the banking system and institutions like AIG as well as the auto industry. Yet it does not permit a vital rung of our healthcare system to survive.

Reform of the Medicaid system is needed. The solution is not slashes in funding at this difficult time. The short and long term effects of destroying Medicaid supported institutions on our economy and health of the underprivileged is great. 

“John W. Bluford III, the president of Truman Medical Centers in Kansas City, Mo., said: “This is a disaster for safety-net institutions like ours.

Alan D. Aviles, the president of the New York City Health and Hospitals Corporation, the largest municipal health care system in the country, said: “The new rule forces us to consider reducing some outpatient services like dental and vision care. State and local government cannot pick up these costs. If anything, we expect to see additional cuts at the state level.”

New York State and California is bankrupt and looking for bail out money.

“Carol H. Steckel, the commissioner of the Alabama Medicaid Agency, said the rule would reduce federal payments for outpatient services at two large children’s hospitals, in Birmingham and Mobile.”

“Richard J. Pollack, the executive vice president of the American Hospital Association, said “The new regulation will jeopardize important community-based services, including screening, diagnostic and dental services for children, as well as lab and ambulance services.”

Whatever the government claims it is not fixing the healthcare system’s problem. It is creating a larger healthcare system problem.

“Matt D. Salo, a health policy specialist at the National Governors Association, said, “The new rule is consistent with the administration’s effort to squeeze, shrink and flatten Medicaid spending.”

Ann Clemency Kohler, the executive director of the National Association of State Medicaid Directors, said: “We have to question why the rule is being issued now, three days after the election, with a new administration coming in.”

Ms. Kohler said the rule would cut “money going to the states, to safety net providers, at a time when states are really being stressed.”

Larry S. Gage, the president of the National Association of Public Hospitals, said, “We will urge Congress to extend the moratorium to this rule, and we will ask the Obama administration to withdraw it.”

These continuing destructive actions by the Bush administration will not enhance the possibility of him having a positive legacy. He is doing more damage to America’s fragile infrastructure.

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

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Many Doctors Plan To Quit Or Cut Back: Survey

  Stanley Feld M.D.,FACP,MACE

Barack Obama’s goal is to institute a universal healthcare system. I have pointed out that America has a demoralized primary care physician work force. It also has a shortage of primary care physicians. The physician workforce will not be able to care for the influx of patients that will occur in a universal healthcare system. This is especially true as the charity hospitals are on the verge of bankruptcy because of the Medicaid payment system and restrictions on Medicaid eligibility for indigent patients.

The Physicians Foundations completed a survey that asked physicians across the country how they see the medical practice environment? How do they feel about the state of their profession, and that of the industry at large? What plans do they have for the future of their individual practices? Do they believe there are enough of them to handle an influx of more patients?

The Physicians Foundation is an organization with $98 million dollars in available grant money that seeks to advance the work of practicing physicians and to improve the quality of healthcare for all Americans.

“The Physicians Foundation is unique is in its commitment to patient safety, physician education, and quality improvement in physician practice.”

Interestingly the foundation was founded in 2003 as part of a settlement in an anti-racketeering lawsuit among physicians, medical societies, and insurer Aetna, Inc.

The survey was mailed to 270,000 primary care doctors and 50,000 practicing specialists. The survey managers received 11,950 responses. Chad Autry PhD, Professor of Statistics at Texas Christian University said the margin of error for this survey is less than one percent.

The responses to the survey are vital to the future of medical care in America in a universal care setting and the present primary care practice environment.

· An overwhelming majority of physicians – 78% – believe there is a shortage of primary care doctors in the United States today

· 49% of physicians – more than 150,000 doctors nationwide (extrapolation) – said that over the next three years they plan to reduce the number of patients they see or stop practicing entirely. In that same time frame:

· 11%, or more than 35,000 doctors nationwide(extrapolation), said they plan to retire

· 13% said they plan to seek a job in a non-clinical healthcare setting, which would remove them from active patient care

· 20% said they will cut back on patients seen

· 10% said they will work part-time

· 60% of doctors would not recommend medicine as a career to young people

Paperwork

· 63% of doctors said non-clinical paperwork has caused them to spend less time with their patients

· 94% said time they devote to non-clinical paperwork in the last three years has increased

Government

“Declining reimbursement” rated highest on list of issues physicians identify as impediments to the delivery of patient care in their practices, followed by “demands on physician time”

82% said their practices would be “unsustainable” if proposed cuts to Medicare reimbursement were made

65% said Medicaid reimbursement is less than their cost of providing care and 36% said Medicare provides reimbursement that is less than their cost of providing care

Over 33% of physicians have closed their practices to Medicaid patients and 12% have closed their practices to Medicare patients

Finances

· Only 17% of physicians rated the financial position of their practices as “healthy and profitable”

· If they had the financial means, 45% of doctors would retire today

Morale

· “Patient relationships” rated highest on the list of things physicians find satisfying about medicine, while “reimbursement issues” and “managed care issues” rated the highest on the list of issues physicians find unsatisfying about medicine

· Only 6% of physicians described the professional morale of their colleagues as “positive.” 42% of physicians said the professional morale of their colleagues is either “poor” or “very low”

· 78% of physicians said medicine is either “no longer rewarding” or “less rewarding”

· 76% of physicians said they are either at “full capacity” or “overextended and overworked”

The results are clear. America is destined to have a medical care system meltdown unless conditions are changed for primary care physicians. Most physicians trained in America are going into subspecialties. A good start for the Barack Obama’s administration would be to permit states and the federal government to redefine the antiquated definition of poverty, and recognize the value of cognitive services and increase reimbursement to attract more primary care physicians into this specialty.

Primary care physicians should be given incentives (educational support and reimbursement) to treat chronic diseases with systems of care that will prevent the complications of those diseases.

It would be a disaster to use physician substitutes for the treatment of chronic diseases. This approach would not only compromise the potential quality of medical care it would be wasting the valuable resource of physician education that both the physicians and society paid for dearly.

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

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Dear President-elect Obama : Part 3

 

Stanley Feld M.D.,FACP,MACE

A huge problem in the healthcare system is mistrust between all the stakeholders. Medicare Part D is one example of abuse to consumers by the healthcare insurance industry and the government.

Physicians mistrust the government and healthcare insurance industry because of delayed Medicare reimbursements. The government outsources administrative services for Medicare claims to the healthcare insurance industry. The government pays these companies for claims processing.

The government states that Medicare overhead is only 2%. The healthcare insurance industry has published an overhead of 15%. Does this mean the healthcare insurance industry overhead without a surcharge is passed on to Medicare? In that case Medicare’s total overhead would be 17%. My guess is Medicare’s total overhead is closer to 20% including an added surcharge.

The vendor for Medicare (the healthcare insurance industry)  in California, Nevada and Hawaii is holding back physician reimbursement. In the late 1980 physicians were promised they would be reimbursed within 10 days by Medicare if they electronically billed. The billing software was provided free of charge and installed by the vendor. Now in California, Nevada and Hawaii there is an unpaid claims backlog of up to nine months.

Doctors across California and in two other Western states are owed millions of dollars in backlogged Medicare reimbursements, leading some physicians to turn away elderly patients and pushing others to the brink of bankruptcy.”

How did this happen? The problem has resulted in a California Medical Association law suit. Law suits only add to the cost of medical care as well as an increase in mistrust.

California is not the only state in which this has happened. It has happened to many physicians in Texas also. I suspect the delay in reimbursement is happening in many other states as the administrative service providers (vendors) try to hold on to the float of the cash as long as possible.

“In the most extreme cases, doctors have not been paid since February. Others are owed hundreds of thousands of dollars. Doctors who serve high numbers of Medicare patients say they are defaulting on rent, laying off staff and begging drug suppliers not to stop shipments. One cardiologist said she’s even resorted to doing the office laundry to cut costs.

“Economic stress leads to mistrust.” This should not be happening as everyone should be working together to repair the healthcare system

“Medicare owes Dr. Tim Ganey and his Bay Area practice of oncologists $750,000 in outstanding claims. He sought grace periods from vendors for his drug payments, but now he’s running out of time. He won’t be able to order more chemotherapy treatments unless he pays his bill.
“The things that we’re dealing with, they’re not elective things,” Ganey said. “They’re pertinent to people either fighting their cancer or being cured of their cancer.”


Physicians are always given excuses when Medicare or Private insurance misdeeds are highlighted. There are two excuses published in this case of delayed reimbursement.

“The holdup is twofold. By May, doctors were supposed to be using a new universal identification number assigned by the Centers for Medicare and Medicaid Services. Without the new number, which is like a Social Security number, doctors can’t get reimbursed. Scores of doctors still waited for those numbers.”

Most physicians are using the new physician identifier (NPI). There was a long delay by the government in setting a deadline for its use because of delays in physicians applying for it . Now most states will not renew physicians’ medical licenses without an NPI. A NPI can be obtained instantly on a government web site. I suspect this point is an excuse.

The second excused presented;

“In September the federal agency switched to a new claim processor for its 90,000 California providers. The move to Palmetto GBA in South Carolina, part of a national effort to reform Medicare contractors, compounded the billing issues and left even doctors who had their universal identification numbers waiting months for reimbursement.”

This does not make sense. If the government was moving to a better administrative service organization (healthcare insurance company DBA ASO) why is this ASO worse than the old one?

“This is just a complete disaster,” said Dr. Dev Gnanadev, medical director and chairman of the Department of Surgery at Arrowhead Regional Medical Center in Colton and president of the California Medical Assn.”

“Rep. Henry Waxman (D-Beverly Hills), whose office was contacted by at least two dozen doctors, called the transition to the new contractor “marred by missteps.””

Nevada has the fastest-growing Medicare population in the nation and physicians there are having the same problem with Palmetto.

“If we’re still dealing with this in January or February, Medicare patients are going to have serious access problems,” said Larry Mathies, executive director of the Nevada State Medical Assn.”

I am sorry. Excuses do not work any more. If the previous vendor was insufficient, why hire a vendor that almost paralyzes the medical profession’s ability to deliver care.

President elect Obama, beware of what your goal is with your national insurance exchange and your plan to expand Medicare Part C in its present form. The healthcare insurance industry is going to be your administrative service provider and the costs of healthcare will continue to escalate. They will control consumers healthcare dollars that the government will be providing and abuse your physician workforce.

It is much wiser to let consumers administer the first $6,000 of the healthcare dollar needed for a family of four and provide real healthcare insurance with the second $6,000 while creating incentives and education in order for consumers to be wise and fugal consumers. Any government subsidies for healthcare system with this design will be money well spent and reduce the cost of healthcare.

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