health care on the precipice. new jersey, has good reason to be proud
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Health Care on the Precipice
Health Care on the Precipice
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New Jersey, has good reason to be proud . . .
New Jersey, has good reason to be proud . . .
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We have one of our nation’s highest per capita incomes. We have one of our nation’s highest per capita incomes.
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We are home to more high
technology, pharmaceutical and
biotechnology companies per
square mile than any place in the
world.
We are home to more high
technology, pharmaceutical and
biotechnology companies per
square mile than any place in the
world.
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We are home to the University of Medicine and Dentistry ‑‑ the
largest free‑standing public health university in the country.
We are home to the University of Medicine and Dentistry ‑‑ the
largest free‑standing public health university in the country.
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Our college and professional sports teams, particularly
our women’s basketball team and
varsity football team at Rutgers
University, compete at a championship
level.
Our college and professional sports teams, particularly
our women’s basketball team and
varsity football team at Rutgers
University, compete at a championship
level.
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Unfortunately, we also rank near the top statistically in
some categories where we are not particularly proud. . .
Unfortunately, we also rank near the top statistically in
some categories where we are not particularly proud. . .
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Total Uninsured = 1,300,000Total Uninsured = 1,300,000
New Jersey Total Population = 8,500,000New Jersey Total Population = 8,500,000
We are home to more than 1.3 million uninsured, 240,000 of them children
We are home to more than 1.3 million uninsured, 240,000 of them children
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One out of every seven children in our state received
NO medical care last year as a result of being uninsured.
One out of every seven children in our state received
NO medical care last year as a result of being uninsured.
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The cost of providing coverage has increased 80% in our state in the
last five years.
The cost of providing coverage has increased 80% in our state in the
last five years.
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As a result, businesses providing coverage for
their workers has dropped so dramatically that now, one in every five New Jersey small
business owners simply cannot afford health
insurance.
As a result, businesses providing coverage for
their workers has dropped so dramatically that now, one in every five New Jersey small
business owners simply cannot afford health
insurance.
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A recent study demonstrated that
New Jersey paid the highest premiums for single plans and the
third highest for family plans.
A recent study demonstrated that
New Jersey paid the highest premiums for single plans and the
third highest for family plans.
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High health costs make it
harder for people to afford
coverage.
High health costs make it
harder for people to afford
coverage.
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High costs also mean higher taxes to support
state‑financed health programs, including
Medicaid, NJFamilyCare and the state employee
health benefits program.
High costs also mean higher taxes to support
state‑financed health programs, including
Medicaid, NJFamilyCare and the state employee
health benefits program.
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For most uninsured New Jerseyans, there
is no health care “system,” but rather a
blotchy and frayed patchwork of
unreliable and inconsistent
programs, providers, and facilities.
For most uninsured New Jerseyans, there
is no health care “system,” but rather a
blotchy and frayed patchwork of
unreliable and inconsistent
programs, providers, and facilities.
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Most of the uninsured routinely experience delays in getting care for a variety of medical problems.
Most of the uninsured routinely experience delays in getting care for a variety of medical problems.
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The uninsured receive less
preventive care and poorer
treatment for both minor and serious chronic
and acute illnesses.
The uninsured receive less
preventive care and poorer
treatment for both minor and serious chronic
and acute illnesses.
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Sources: Commonwealth Fund
Nolte and McKee: Health Affairs, Jan-Feb 2008Nolte and McKee: Health Affairs, Jan-Feb 2008
7474Top 5 statesTop 5 states
110110U.S.U.S.142142Bottom 5 statesBottom 5 states
6565
71717171
74747474777780808282828284848484
909093939696101101103103103103104104
FranceFrance
JapanJapanAustraliaAustralia
SpainSpainItalyItaly
CanadaCanadaNorwayNorwaySwedenSweden
NetherlandsNetherlandsGreeceGreeceAustriaAustria
GermanyGermanyFinlandFinland
New ZealandNew ZealandDenmarkDenmark
IrelandIrelandU.K.U.K.
PortugalPortugal
DeathsDeaths per 100,000 population
International International Scorecard on Scorecard on Health System Health System PerformancePerformance
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The bottom line: In many cases, the uninsured live
shorter lives than comparable insured
populations.
The bottom line: In many cases, the uninsured live
shorter lives than comparable insured
populations.
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INSTITUTEQUALITYHEALTHCARENEW JERSEY
Quality powered.
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We knew where to start.We knew where to start.
1.1. Enroll all who are eligible for state Enroll all who are eligible for state sponsored coverage and manage sponsored coverage and manage the Federal dollars available to us the Federal dollars available to us for this purpose.for this purpose.
2.2. Make sure that those who have Make sure that those who have health care coverage are able to health care coverage are able to keep it. keep it.
3.3. Provide an affordable and adequate Provide an affordable and adequate coverage alternative for every man, coverage alternative for every man, woman and child in our state.woman and child in our state.
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Total Uninsured = 1,300,000Total Uninsured = 1,300,000
New Jersey Total Population = 8,500,000New Jersey Total Population = 8,500,000
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New Jersey’s UninsuredNew Jersey’s Uninsured
600,000 remaining uninsured
600,000 remaining uninsured
300,000 Eligible but not enrolled
300,000 Eligible but not enrolled
400,000 undocumented400,000 undocumented
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Comprehensive & TransformationalComprehensive & TransformationalComprehensive & TransformationalComprehensive & Transformational
Successful Successful Health Care ReformHealth Care Reform
Successful Successful Health Care ReformHealth Care Reform
CommercialCommercialGradeGrade
CommercialCommercialGradeGrade
Universal &Universal &PortablePortable
Universal &Universal &PortablePortable
Affordable & Affordable & SustainableSustainable
Affordable & Affordable & SustainableSustainable MandatedMandatedMandatedMandated
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Reform ElementsReform
Elements
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Individuals will be Individuals will be responsible to responsible to
provide proof of provide proof of health insurance health insurance
when they file their when they file their state income tax state income tax
return.return.
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If they do not provide proof of health insurance, they will
be placed by the state into the new state health
insurance plan.
If they do not provide proof of health insurance, they will
be placed by the state into the new state health
insurance plan.
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We must enroll all New Jerseyans
who are currently eligible for
Medicaid and FamilyCare but who are not yet
enrolled.
We must enroll all New Jerseyans
who are currently eligible for
Medicaid and FamilyCare but who are not yet
enrolled.
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We must expand
FamilyCare to the extent
permitted so we might effectively apply the
federal dollars available to us
We must expand
FamilyCare to the extent
permitted so we might effectively apply the
federal dollars available to us
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If, for whatever reason, a New Jersey resident seeks care without
insurance, they will be placed into a new, state-
sponsored plan and billed an appropriate premium.
If, for whatever reason, a New Jersey resident seeks care without
insurance, they will be placed into a new, state-
sponsored plan and billed an appropriate premium.
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Our plan combines all individuals
together in one, self‑funded plan to take advantage of the “law of large numbers,” so the healthy and the
sick balance each other out with the result of a more
affordable health insurance product.
Our plan combines all individuals
together in one, self‑funded plan to take advantage of the “law of large numbers,” so the healthy and the
sick balance each other out with the result of a more
affordable health insurance product.
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This new health insurance plan will. . . This new health insurance plan will. . .
Include a statewide network of providers, Include a statewide network of providers, Be available in an HMO and a PPO Be available in an HMO and a PPO
format. format. Be a commercial grade product, with Be a commercial grade product, with
commercial reimbursements commercial reimbursements Offer benefits modeled after the current Offer benefits modeled after the current
standard plan in New Jersey’s small standard plan in New Jersey’s small employer market.employer market.
Be state-sponsored and state controlledBe state-sponsored and state controlled
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Where an employee does not have employer‑based coverage
his or her employer must provide them access
to a flexible‑spending account under Section 125 of the IRS Code so the employee can
purchase their coverage with before tax dollars.
Where an employee does not have employer‑based coverage
his or her employer must provide them access
to a flexible‑spending account under Section 125 of the IRS Code so the employee can
purchase their coverage with before tax dollars.
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Final ElementsFinal Elements
• Our plan will be offered to all New Our plan will be offered to all New Jersey residents, Jersey residents,
• A state subsidy will be provided on a A state subsidy will be provided on a sliding scale based on what is sliding scale based on what is affordable to the individual or their affordable to the individual or their family family
• Our current charity care and related Our current charity care and related hospital subsidies will be redirected hospital subsidies will be redirected over time to provide premium over time to provide premium assistance in the new plan.assistance in the new plan.
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Comparison to the Massachusetts PlanComparison to the
Massachusetts Plan
• Individual MandateIndividual Mandate
• Expand Medicaid & Expand Medicaid & SCHIPSCHIP
• Section 125 RequiredSection 125 Required
• Connector to Private Connector to Private marketmarket
• Multiple Insured PlansMultiple Insured Plans
• Employer MandateEmployer Mandate
MassachusettsMassachusetts New JerseyNew Jersey
• Individual MandateIndividual Mandate• Expand Medicaid & Expand Medicaid &
SCHIPSCHIP• Section 125 RequiredSection 125 Required
• State-Run Public PlanState-Run Public Plan
• Single, Self-Insured Single, Self-Insured PlanPlan
• No Employer MandateNo Employer Mandate
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Phases of ReformPhases of Reform
FamilyCare Buy-inFamilyCare Buy-in [Passed Into Law – 12/1/8][Passed Into Law – 12/1/8]
““Kids First” MandateKids First” Mandate Familycare ExpansionFamilycare Expansion Market ReformMarket Reform Results: Results:
Announced 3/17/8Announced 3/17/8 First Reading 4/7/8First Reading 4/7/8 PASSED 6/23/8PASSED 6/23/8 Signed by Governor 7/8/8Signed by Governor 7/8/8 Implementation 9/1/08 Implementation 9/1/08
Creation of Garden Creation of Garden State AllCareState AllCare
Individual MandateIndividual Mandate Section 125 MandateSection 125 Mandate Collaborative Care Collaborative Care
System CreationSystem Creation
II IIII
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ProcessProcess
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Sensing Interviews
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MeMy Chief of Staff, Sarah
McLallen
Commissioner of Health. Heather
Howard
DHSS Rep Noreen Bodman
Medicaid Director
John Guhl
Keri Logosso, Director ofChildren’s
Health Services
Sen. Vitale’s Chief of Staff,
Laurie Cancialosi
John Jacoby,
Governor’s Counsel
Senator Joe Vitale
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Politics
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Legislation CreationLegislation CreationLegislation CreationLegislation Creation
• Delayed until the last minuteDelayed until the last minute• ““Sensing Interviews” responding to Sensing Interviews” responding to
concepts presented – no documentconcepts presented – no document• Introduced with major press conference Introduced with major press conference
– “White Paper” (both phases) & Bill – “White Paper” (both phases) & Bill Statement (phase I) only Statement (phase I) only
• Negotiations begin in earnestNegotiations begin in earnest• Printed bill distributed at first committee Printed bill distributed at first committee
hearinghearing
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Areas of ConflictAreas of Conflict
• DelayDelay• Mandate (affordability)Mandate (affordability)• Individual/small group market reformsIndividual/small group market reforms
– Age rating vs. community ratingAge rating vs. community rating– Increase Minimum Loss RatioIncrease Minimum Loss Ratio
• Not far enoughNot far enough– Subsidize to higher FPLSubsidize to higher FPL– Single PayerSingle Payer
• No “Play or Pay” Employer MandateNo “Play or Pay” Employer Mandate
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The 2 Year OddeseyThe 2 Year OddeseyVitale
Request – Formation
of Working Group
Working Group
meets – Consensus
Retreat
Stakeholder “Sensing” Meetings
Feedback Assimilation
White Paper, Phase 1 bill
prepared and introduced
Bill passes both houses
and Governor signs it
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• Primary CarePrimary Care
• Chronic DiseasesChronic Diseases
• UndocumentedUndocumented
• POS AlgorithimPOS Algorithim
• Cost ContainmentCost Containment
• ReinsuranceReinsurance
• TransitionTransition
• Hospital SolvencyHospital Solvency
• ““Hold HarmlessHold Harmless
• Assessment & Assessment & EvaluationEvaluation
Remaining IssuesRemaining Issues
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Lessons LearnedLessons LearnedKeep FocusKeep Focus
No Bill = FlexibilityNo Bill = Flexibility
Drive ConsensusDrive Consensus
Hold Friends Close, Enemies CloserHold Friends Close, Enemies Closer
Garner Relationship With Press EarlyGarner Relationship With Press Early
Don’t Forget The FearDon’t Forget The Fear
Fat & Happy Vs. Famished & ScaredFat & Happy Vs. Famished & Scared
Skill Set = CampaignSkill Set = Campaign
Get Executive Branch ChampionGet Executive Branch Champion
Just Keep Walkin’Just Keep Walkin’
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““It must be considered that there is nothing more It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order more dangerous to handle, than to initiate a new order of things. For the reformer has enemies in all those of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm who profit by the old order, and only lukewarm defenders in all those who would profit by the new defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of order, this lukewarmness arising partly from fear of their adversaries, who have the laws in their favour; their adversaries, who have the laws in their favour; and partly from the incredulity of mankind, who do not and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual truly believe in anything new until they have had actual experience of it. Thus it arises that on every opportunity experience of it. Thus it arises that on every opportunity for attacking the reformer, his opponents do so with for attacking the reformer, his opponents do so with the zeal of partisans, the others only defend him the zeal of partisans, the others only defend him half-heartedly, so that between them he runs great half-heartedly, so that between them he runs great danger."danger."
The Prince, 1531
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So Why Must New Jersey Enact Health Reform Now?
“Somebody has to do something . . .
Jerry GarciaJerry GarciaGrateful DeadGrateful DeadJerry GarciaJerry GarciaGrateful DeadGrateful Dead
. . . it’s just incredibly pathetic
it has to be us”
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INSTITUTEQUALITYHEALTHCARENEW JERSEY
Quality powered.
WWW.NJHCQI.ORWWW.NJHCQI.ORGG
Ten Years of AdvocacyTen Years of Advocacy