Health care in the U.S. not being solved after all, I thought it was past time I read Daschle’s ideas on the subject. This book was published in 2008, and although we’ve gotten much closer to universal coverage under the Affordable Care Act, it has not done enough to bring down costs. The underlying facts and assumptions are still valid.
Starting with Daschle’s assessment of the prospects for health care reform, he cites several barriers, which still obtain.
• Health insurance as it is now structured is difficult for the public to understand.
• There are many influential special interests, and any reform involves winners and losers.
• Americans will have to “overcome powerful and persistent myths” including “the mistaken belief that we have the best health care in the world” (p. 194), and also including the myth that reforming the system will cost more than what we now spend for inferior health care that doesn’t cover everyone.
Our health care system costs more and delivers less than other developed countries. One reason is consumers’ deference to doctors’ decisions about treatment, even if the benefits are small. Doctors have financial incentives to prescribe drugs and order certain treatments and tests, regardless of effectiveness. Americans have a can-do culture; we are reluctant to accept defeat, even if there is little chance of success, which in turn feeds more technologies, which, once established, stimulates more use of them. Increasing research and development provides new drugs and treatments for normal conditions of aging or social behavior that become medicalized (he cites restless leg syndrome; I thought of shyness, now treated as social anxiety disorder). Our complex, “fragmented and uncoordinated system” of insurance decreases insurers’ ability to negotiate for lower prices and administrative costs. Ongoing consolidation of the health care industry is another factor.
Because we can do amazing things with technology, that doesn’t mean that our system results in better care. The U.S. has higher rates of infant mortality, lower rates of vaccination, and lower rates of survival from certain cancers and organ transplants when compared to our “peer” countries of Canada, the U.K., Australia, and New Zealand. (Though we do excel at rates of Pap tests and survival of breast cancer.) Fewer people covered means less care of chronic diseases, resulting in unnecessary deaths and a sicker population. We are behind in mental health and long-term care. The lack of care affects minorities disproportionately because they are more likely to be uninsured.
Other countries have single entities to recommend treatment and coverage policies nationwide. We have multiple bodies and no standardization, even within Medicare. Case in point: the recent confusion around conflicting standards for who should get mammograms, at what age and how often.
If they don’t die first, many who are uninsured or underinsured do get care eventually. Care received when people can’t put it off any longer, when patients are sicker, costs more. It causes overuse of emergency rooms, making emergency care less available for other emergencies. These costs don’t disappear because insurance doesn’t pay, they just get shifted around. Hospitals raise costs (which to begin with are secret and arbitrary, according to recent reporting about hospital chargemasters) on those who have insurance coverage, which can push them into heavy debt or even bankruptcy. Insurers raise premiums and deductibles on those who can afford it, until those people can no longer do so, creating more underinsured and uninsured people. The high cost of health insurance puts U.S. employers at a competitive disadvantage with other countries, because in other developed countries the cost does not disproportionately burden employers but is spread across the population. It’s one factor in the trend to hire part-time or contract employees who don’t get benefits. Sick employees also cost employers.
Dashle goes into the history of health insurance and the efforts going back many administrations to provide universal coverage. Though interesting, how we got here is less important than where we go from here. It does matter, though, because of the concept of “path dependency,” a term I’ve started seeing lately. It just means that taking some actions forecloses others. However desirable in the eyes of some, a single-payer system for everyone cannot get enacted in the U.S., period—at least not now—despite the popularity of Medicare, which is a single-payer system.
Daschle proposes a public-private system overseen by a board similar to the Federal Reserve for monetary policy. Another such board is the Base Realignment and Closing Commission, which Congress created to insulate itself from tough decisions about the closings of military bases, which all agreed were necessary but political considerations could not be overcome.
The Federal Health Board would have “the knowledge to make complicated health decisions and the independence to resist political pressures.” (p. 136) This board would set standards for coverage and review clinical evidence and the expertise of academics, professional organizations, and practitioners to decide best practices and train physicians. Policies should cover mental health equally with physical health, long-term care, and dental care. Though the Board would not set costs or lower them directly, this would happen as insurers could decide whether to cover tests and treatments without proven efficacy. Tax policy could also be set so that only insurance following the Board’s recommendations would be deductible expenses. Massachusetts already does some of this with the Commonwealth Health Insurance Connector Authority, which decides minimum benefits and financial subsidies for low-income people in the state.
Everyone must have health insurance coverage. Medicaid should be strengthened. There would have to be subsidies for those who could not afford health insurance.
Daschle recommends that anyone without employer-based coverage, Medicare, or Medicaid be allowed to buy insurance from the Federal Employee Health Benefits Program, which covers federal employees and members of Congress. Employers could also choose to offer it as their coverage. FEHBP offers several plans from private insurers from which to choose. Daschle recommends an option under the FEHBP for a government-run program similar to Medicare which “would have tremendous clout” to bargain for lower drug prices. It would also be more efficient, saving money in administrative costs, which Medicare does.
This is a short book, only 200 pages. In our current situation with everything up for grabs, the more informed we are when asking our elected representatives for what we want, the better. Essential reading.