why the united states needs a national health program presented by mary e. o’brien, m.d
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WHY THE UNITED STATES NEEDSWHY THE UNITED STATES NEEDS
A NATIONAL HEALTH PROGRAMA NATIONAL HEALTH PROGRAM
Presented byPresented by
Mary E. O’Brien, M.D.Mary E. O’Brien, M.D.Columbia University Health ServiceColumbia University Health Service
Physicians for a National Health ProgramPhysicians for a National Health Program
PNHP MESSAGES
1. An unraveling insurance system is leaving more and more Americans feeling insecure about the high cost of health care and their access to it.
2. Our reliance on private insurance is responsible for the high cost.
3. Current proposals based on private insurance do not address the real problems we face.
PNHP MESSAGES
4.Only a single payer national health care insurance program that is publicly funded like Medicare will ensure comprehensive care for all.
This program would cover all necessary
medical services such as doctor visits, hospitalization, long-term care, prescription drugs, dental care, mental health, and preventive care .
Cumulative Changes in Health Insurance Premiums, Inflation, and Workers’ Earnings, 1999-2008
119%
34%
29%
0%
20%
40%
60%
80%
100%
120%
140%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Health Insurance Premiums
Workers' Earnings
Overall Inflation
Note: Due to a change in methods, the cumulative changes in the average family premium are somewhat different from those reported in previous versions of the Kaiser/HRET Survey of Employer-Sponsored Health Benefits. See the Survey Design and Methods Section for more information, available at http://www.kff.org/insurance/7790/index.cfm.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2000-2008. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 2000-2008; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 2000-2008 (April to April).
National Health Expenditures per Capita,
1990-2007
$2,814
$3,266$3,618
$3,937$4,296
$4,789$5,149
$5,560$5,967
$6,319$6,687
$7,062$7,421
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
1990 1992 1994 1996 1998 2000 2001 2002 2003 2004 2005 2006 2007
Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group, at http://www.cms.hhs.gov/NationalHealthExpendData/ (see Historical; NHE summary including share of GDP, CY 1960-2007; file nhegdp07.zip).
High Cost of Health Insurance Premiums: It’s Even Too Expensive
for the Middle Class Today National Average for Employer-provided Insurance
Single Coverage $4,479 per year Family Coverage $12,016 per year
Note: Median household income = $50,233
Source: Kaiser Family Foundation/HRET Survey of Employee Benefits, 2007;
U.S. Census Bureau, 2008
Source: Stan Dorn, Bowen Garrett, John Holahan, and Aimee Williams, Medicaid, SCHIP and Economic Downturn: Policy Challenges and Policy Responses, prepared for the Kaiser Commission on Medicaid and the Uninsured, April 2008
Impact of Unemployment Growth on Medicaid and SCHIP and the Number Uninsured
1%
Increase in National Unemployment
Rate
=1.0 1.1
Increase in Medicaid
and SCHIP Enrollment
(million)
Increase in Uninsured(million)
&$2.0
$1.4
$3.4
Increase in Medicaid and
SCHIP Spending(billion)
State
Federal
Characteristics of the Uninsured, 2007
400% FPL +10%
200-399% FPL24%
100-199% FPL29%
<100% FPL37%
Family IncomeFamily Work Status
Total = 45 million uninsured
1 or More Full-Time Workers
69%
No Workers
19%
Part-TimeWorkers
12%
Age
0-1820%
19-2929%
30-4427%
45-6424%
The federal poverty level was $21,203 for a family of four in 2007. SOURCE: Kaiser Commission on Medicaid and the Uninsured/Urban Institute analysis of March 2008 CPS.
Medical costs create serious financial problems for millions of us
Source: Health Tracking Poll, Kaiser Family Foundation, April 2008
18,314 Adult Deaths Annually Due to Uninsurance
2. Our reliance on private insurance is responsible for the high cost.
3. Current proposals based on private insurance do not address the real problems we face.
International Comparison: Universal Coverage at Less Cost -- They Must Be Doing Something Right!
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000United StatesGermanyCanadaNetherlandsFranceAustraliaUnited Kingdom
* PPP = Purchasing Power Parity.Data: OECD Health Data 2008, June 2008 version.
Average spending on health per capita ($US PPP*)
All have a strong role for government in funding and regulating their health care system.
U.S. Health Costs are 70% Greater than the Median of Other Countries
Un
ited
Sta
tes
0
10
20
30
40
50
60
70
80
90
100
Perc
en
t
Population Covered by Public System
The Outlier Nation: Our Public System Covers Fewer…
Source: F. Colombo and N. Tapay, Private Health Insurance in OECD Countries, OECD 2004Unite
d States
0
5
10
15
20
25
30
35
40
Pe
rce
nt
Private Health Insurance Percent of Total Cost
While Private Insurance Dominates
Source: F. Colombo and N. Tapay, Private Health Insurance in OECD Countries, OECD 2004Unite
d States
Private Insurers’ High Overhead
16.3%
19.9%
26.5%
3.1%
0%
10%
20%
30%
Medicare Non-Profit Blues CommercialCarriers
Investor-OwnedBlues
International Journal of Health Services 2005; 35(1): 64-90
Medical Care Administration
9%
Insurer Billing8%
Other Insurer Costs and Profit
11%
Hospital Billing4%
Medical Care64%
Physician Billing 5%
Source: James G. Kahn et al, The Cost of Health Insurance Administration in California: Estimates for Insurers, Physicians, and Hospitals, Health Affairs, 2005
Allocation of Spending for Hospital and Physician Care Paid through Private Insurers
Billing and Insurance: Nearly 30% of All Health Care Spending
28%
Only a single payer national health care insurance program that is publicly funded like Medicare will ensure comprehensive care for all.
This program would cover all necessary medical services such as doctor visits, hospitalization, long-term care, prescription drugs, dental care, mental health, and preventive care .
Return to KaiserEDU.org
Ten Percent of All Medicare Beneficiaries Account For More than Two Thirds of Medicare Spending
25%
11%
7%
9%
8%
16%
53%
2%
54%
4%
4%
$25,000 or More
$15,000-$24,999
$10,000-$14,999
$5,000-$9,999
$1,000-$4,999
$0-$999
SOURCE: Kaiser Family Foundation analysis of the Medicare Current Beneficiary Survey 2002 Cost and Use File.
Total Number of Beneficiaries: 41.8 million
Total Medicare Spending: $224.5 billion
6% 10%
69%
Exhibit 13
2002 average = $5,370 per capita
K A I S E R C O M M I S S I O N O N
Medicaid and the Uninsured
Figure 33
Enrollees Expenditures
Medicaid Enrollees and Expendituresby Enrollment Group, 2003
Note: Total expenditures on benefits excludes DSH payments. SOURCE: KCMU estimates based on CBO and OMB data, 2004.
Children 19%
Elderly26%
Disabled43%
Adults 12%Children
48%
Elderly9%
Disabled16%
Adults27%
Total = 52.4 million Total = $252 billion
Rising Health Insurance and Medicaid Rising Health Insurance and Medicaid Costs for City GovernmentCosts for City Government
Conyers: Expanded and Improved Medicare for All“single payer national
health insurance” HR 676Automatic enrollmentComprehensive benefitsFree choice of doctor and hospitalDoctors and hospitals remain independentPublic agency processes and pays billsFinanced through progressive taxesCosts contained through capital planning, budgets, emphasis on primary care
New – Sanders (& McDermott): American Health Security Act S 703 (HR 1200)
1.Automatic enrollment
2.Comprehensive benefits
3.Operated by States using Federal standards
4.Free choice of doctor and hospital
5.Doctors and hospitals remain independent
6.Public agency processes and pays bills
7.Financed through payroll taxes
How Single Payer Could Be Paid For: One Example from a Recent Study of a
California Plan
Federal Government
(existing Medicare,
Medicaid, other)
Business (self-employed) income tax
(12%)
State and Local Govt (existing
Medicaid, other)Surcharge on income (1% above $200,000)
Employee Payroll Tax (4%)
Employer Payroll Tax (8%)
Investment income tax (4%)
Note: Payroll and income taxes between $7,000 and $200,000 only. Source: Health Care for All Californians Act: Cost and Economic Impacts Analysis, The Lewin Group, January 2005
Medical Care Administration
9%
Insurer Billing8%
Other Insurer Costs and Profit
11%
Hospital Billing4%
Medical Care64%
Physician Billing 5%
Source: James G. Kahn et al, The Cost of Health Insurance Administration in California: Estimates for Insurers, Physicians, and Hospitals, Health Affairs, 2005
Allocation of Spending for Hospital and Physician Care Paid through Private Insurers
Billing and Insurance: Nearly 30% of All Health Care Spending
28%
COMPARE THE PUBLIC-OPTIONAND SINGLE PAYER
Public-Option Single-payerCoverage Millions un-insured Universal
and under-insured Automatic enrollment
Cost $1.5 trillion over No additional cost 10 years
How to pay Increase taxes;Redirect $363 billion Cuts to providers administrative waste
Sustainability Use HIT, prevent Global budgeting; disease management capital planning
2. Mandates Won’t Lead to Universal Coverage
Source: Sherry Glied et al, “Consider It Done? The Likely Efficacy of Mandates for Health Insurance,”, Health Affairs, 26(6), Nov/Dec 2007; Insurance Research Council, June 2006
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CurrentlyInsured
Hawaii'sEmployerMandate
Auto Insurance Child Support ChildhoodImmunizations
IndividualIncome Tax
Minimum WageLaws
Mandate
Co
mp
lia
nce
below 65 yrs
Will We Get Real Health Care Reform Before the Premium Takes All our
Income?
Source: American Family Physician, November 14, 2005
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