Citizens’ Council on Health Care

CCHC HEALTH eNEWS

Tuesday, February 5, 2002

 

 

Providing news and commentary on health care policy, health insurance issues, and medical confidentiality.

 

 

·        BUSH ADMINISTRATION PLANS FOR 24/7 HEALTH SURVEILLANCE

·        CAN “QUALITY” BE USED TO RATION CARE?

·        MSA AMENDMENT READY FOR VOTE IN CONGRESS

·        BUSH WANTS $25 MILLION FOR BEHAVIOR MODIFICATION

AND HEALTH PREVENTION STRATEGIES

·        2003 FEDERAL HEALTH BUDGET HEAVY ON BIOTERRORISM

·        HOSPITALIST PROGRAMS RESULT IN SIGNIFICANT COST SAVINGS

·        NEW HHS COUNCIL SIFTS PRIVATE REQUESTS FOR GOV’T CONTRACTS

·        HEALTH PLANS ENCOUNTER RESISTANCE TO SOCIAL SECURITY NUMBER

 

 

·        CCHC Commentary included

 

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BUSH ADMINISTRATION PLANS FOR 24/7 HEALTH SURVEILLANCE

The U.S. Department of Health and Human Services has sent letters to state governors detailing the portion they will receive of the $1.1 billion slated for bioterrorism response and other public health emergencies.

“The funds will be used to develop comprehensive bioterrorism preparedness plans, upgrade infectious disease surveillance and investigation, enhance the readiness of hospital systems to deal with large numbers of casualties, expand public health laboratory and communications capacities, and improve connectivity between hospitals, and city, local and state health departments to enhance disease reporting. The funds come from the $2.9 billion bioterrorism appropriations bill that President Bush signed into law Jan. 10,” according to the HHS press release.

States will receive funds from three sources: the Centers for Disease Control and Prevention, the Health Resources and Services Administration, and the HHS Office of Emergency Preparedness. States will receive 20 percent of their apportionment immediately and 80 percent after their plans to use the funds have been approved.  Plans are due to HHS no later than April 15, 2002.

STATE BY STATE funding levels:

http://www.hhs.gov/news/press/2002pres/states.html

Sixteen criteria must be part of each state plan, including:

·        Timeline for development of a state-wide plan for response to a bioterrorist event, infectious disease outbreak, or other public health emergency.

·        Ability to receive and evaluate urgent disease reports from all parts of the jurisdiction on a 24 hour a day, 7 days a week basis.

·        Communication systems that provide a 24/7 flow of critical health information between hospital emergency departments, State and local health officials, and law enforcement.

 

 

Source: “HHS ANNOUNCES $1.1 BILLION IN FUNDING TO STATES FOR BIOTERRORISM PREPAREDNESS, HHS press release, January 31, 2002, http://www.hhs.gov/news.

CCHC COMMENTARY: The surveillance and reporting initiatives are part of the CDC’s Model Emergency State Health Powers Act, a bill being considered in every state legislature that is in session in 2002. Doctors, hospitals and pharmacists would be required to report on any patient suspected of harboring a threat to the public’s health. Penalties for non-compliance would be instituted.  We believe the $1.1 Billion adds incentive for passage of the Act.

Bioterrorism is not the primary purpose of the Act. For more on

the Health Powers Act: http://www.cchconline.org/pr/pr120401.php3

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

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CAN “QUALITY” BE USED TO RATION CARE?

Six health plans in California have agreed to join together to improve patient care and cut costs. They will evaluate provider performance and provide doctors and hospitals with 5% bonuses of the billed amounts for providing quality of care and avoiding medical errors. Aetna Inc., Blue Cross of California, Blue Shield of California, Cigna Corp., Health Net Inc. and PacifiCare Health Systems have agreed to a common set of standards by which to measure performance.

The California Medical Association and consumer groups are wary of the plan. They are concerned that the dollars saved will end up in the hands of employers and insurers. Some want government oversight of the plan.

The idea is to create objective standards by which all medications, hospitals, doctors, and specialists can be judged.  Creating the databases is a substantial concern. Henry Aaron, a senior fellow at the Brookings Institution says, “We must be cautious about labeling doctors and hospitals as poor providers of care.”

Source: “A Shift to Quality by Health Plans,” Ronald D. White,

Los Angeles Times, January 14, 2002.

http://www.latimes.com/business/la-000003459jan14.story

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

MSA AMENDMENT READY FOR VOTE IN CONGRESS

The evening of Monday, February 4, Senator Craig filed and

offered the Torricelli-Craig Archer MSA amendment to the

Stimulus package on the Senate floor. The amendment would

expand and make permanent Medical Savings Accounts enacted

According to the Republican National Committee, “Absent Congressional action, the Archer Medical Savings Account (MSA) demonstration program enacted in 1996 will expire at the end of this year. The Archer MSA demonstration program offers workers a low-cost, high-deductible private health insurance policy coupled with a tax-preferred personal medical savings account for out-of-pocket expenses.

Participants make regular, tax-free deposits into their MSA to cover routine medical care up to the deductible; the insurance policy covers expenses above the deductible.  Because the MSA is a personal account, any unspent funds belong to the participant and continue to grow tax-free.”

Five Reasons to Expand the MSA Option

1. Archer MSAs aid the economy by encouraging private savings.

2. Archer MSAs mean health security for dislocated workers.  3. Archer MSAs are extremely cost-effective at expanding coverage to the uninsured.

4. Archer MSAs help contain health care costs.

5. Archer MSAs enjoy widespread, bipartisan support.

Source: “The Craig-Torricelli Health Security Amendment:

Five Reasons to Expand the MSA Option, RPC 2001 Policy Papers

(http://www.senate.gov/~rpc/index99.htm )

http://www.senate.gov/~rpc/releases/1999/hc1020402.htm

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

BUSH WANTS $25 MILLION FOR BEHAVIOR MODIFICATION

AND HEALTH PREVENTION STRATEGIES

President Bush’s 2003 budget includes $20 million for a new “Healthy Communities Innovation Initiative” targeting diabetes, asthma and obesity.

According to the HHS press release, the initiative “will fund demonstration projects in five communities to enhance access to services, encourage positive behavioral changes and improve community health.

The Centers for Disease Control is also slated to receive $5 million for a communications campaign “to teach Americans that even small to moderate changes in lifestyle can make dramatic differences in health.”

“This year, I intend to ignite a national dialogue about the state of America’s health,” said HHS Secretary Thompson.  “Individuals have the power to protect their health, and prevention is the key. Through adoption of healthy behaviors, we can reduce the risk of illness and disease.”

Source: “HHS to Propose New Initiative to Build Healthy Communities,HHS press release, February 1, 2002, http://www.hhs.gov/news.

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

BUSH HEALTH BUDGET HEAVY ON BIOTERRORISM

Big changes are plans in 2003 for health care, according to President Bush’s budget:

·        $9 Billion less to Medicaid

·        $4.35 Billion to Bioterrorism preparation ($1.5B to research)

·        $113 billion over next 10 years to modernize Medicare

·        $77 billion over next 10 years to provide 90% of drug coverage for certain low-income seniors

·        $3.7 billion increase to National Institutes of Health (Total $27.3B)

·        $127 million increase for a five-year drug treatment initiative

·        $10 million for a program to reduce medical errors.

 

The Bush budget requests more than biodefense experts had anticipated. “The proposed budget seeks $5.9 billion for fiscal year 2003, which begins Oct. 1, up from the $1.4 billion approved for this fiscal year.  The increase would “come on top of” a $3.7 billion supplemental request that Congress has already approved.” according to Kaiser Daily Health Policy Report.

The $10 million for reducing medical errors would be split between The Agency for Healthcare Research and Quality and the Food and Drug Administration. Added to recent appropriations by each agency, FDA spending on patient safety would increase to $22 million and AHRQ funding for patient safety would total $60 million.

Previous HHS press releases note that patient safety funds are directed primarily at data systems and according to the HHS WEEKLY REPORT, a portion of the funds for bioterrorism are directed at infectious disease surveillance and “improve[d] connectivity between hospitals, and city and state health departments to enhance disease reporting.”

 

Sources: HHS WEEKLY REPORT, 3-9 February 2002, February 4, 2002

http://www.hhs.gov/news/newsletter/weekly, and KAISER DAILY

HEALTH POLICY REPORT, Monday, February 4, 2002

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

HOSPITALIST PROGRAMS RESULT IN SIGNIFICANT COST SAVINGS

“Hospitalists” are a new breed of physician providing inpatient care in a hospital in place of primary care physicians. The hospitalist model of inpatient care is relatively young, and has experienced tremendous growth over the last few years. This growth has important clinical, financial, educational and policy implications. To analyze the impact of hospitalists on the health care system, researchers recently review data regarding the effect of hospitalists on resource use, quality of care, satisfaction and teaching.

Most of the studies researchers reviewed found that implementation of hospitalist programs were associated with significant reductions in resource use:

·        The average decrease in a patient’s hospital costs was 13.4 percent.

·        Average decrease in a patient’s length of stay was 16.6 percent.

·        The few studies that failed to demonstrate reductions usually used atypical control groups.

·        However, the results were inconsistent for improved outcomes, such as inpatient mortality and readmission rates.

 

Patient satisfaction was generally preserved, while limited data supports the claim that there are positive effects on teaching.  Previous research by the authors found some negative reactions from those who worried about the “purposeful discontinuity of care” introduced by the hospitalist model when a hospital physician took over the care of a patient from the patient’s primary care physician.  Although concerns about inpatient-outpatient information transfer remain, recent physician surveys indicate general acceptance of the model.

Source: Robert M. Wachter and Lee Goldman, “The Hospitalist Movement 5 Years Later,” Journal of the American Medical Association, January 23/30, 2002.

For text http://jama.ama-assn.org/issues/v287n4/abs/jrv10099.html

Source: Taken directly for Daily Policy Digest, National Center

for Policy Analysis, February 4, 2002, http://www.ncpa.org/

 

NEW HHS COUNCIL SIFTS PRIVATE REQUESTS FOR GOV’T CONTRACTS

For companies who want to pitch their security, data system and health surveillance ideas, the Bush Administration has just set up a new executive committee to entertain proposals. A one-stop-shop toward a government contract. The the Council on Private Sector Initiatives to Improve Security, Safety, and Quality of Health Care held their first meeting on January 23. The council has already reviewed 18 requests, and met with three companies.

The mission of the new council, according to their web site is:

“To ensure public health preparedness and the preparedness, security, safety, and quality of the health delivery system.”

The December 6 letter to the heads of various federal departments notes: “The Department is receiving a number requests from individuals and firms seeking our review of their ideas for improving the security, safety, and quality of our health care delivery system. The Department needs to foster this creativity by ensuring that we respond systamatically (sic) and consistently to these requests and provide constructive feedback as appropriate.”

Council members include heads, or designees of the Centers for Disease Control and Prevention, the Food and Drug Administration, the National Institutes of Health, and the Centers for Medicare and Medicaid Services, the Assistant Secretary for Health, the Assistant Secretary for Planning and Evaluation, the Office of Public Health Preparedness, the Department of Defense and the Department of Veterans Affairs.

Sources used: “HHS Creates Council to Review, Respond to Private

Sector Innovation, HHS press release, February 5, 2002,

http://www.hhs.gov/news, and

Letter from HHS Secretary Tommy Thompson, dated December 6,

2001. http://www.cpsi.ahrq.gov/sec12601.pdf

·        Citizens’ Council on Health Care

·        February 5, 2002

 

 

SOCIAL SECURITY NUMBER RESISTANCE

GROWING IN HEALTH PLANS

From the Workgroup for Electronic Data Interchange listserv to CCHC via the Medical Privacy Listserv:

Subject:    Obtaining social security numbers

[....]

Date:         Tue, 5 Feb 2002

To:             “’privacy@wedi.org’” <privacy@wedi.org>

 

Recently, we have been experiencing resistance from members when we request their social security number and the numbers of their dependents. Several letters from employees quote The Privacy Act. We are considering not requiring dependents socials but this could negatively impact HEDIS [Health Plan Employer Data Information Set] numbers since SSN’s are the only way to track continuous enrollment.

I am wondering if other health plans are also experiencing this and if they decided to not require social security numbers or have moved to using another identifier.

 

[....]

[a health plan]

Source: med-privacy <med-privacy@venice.essential.org>

Subject:    [Med-privacy] Obtaining social security numbers

Date:         Tue, 05 Feb 2002 10:08:49 -0800

 

 

 

NOTE: These news items have been taken directly

from email received by CCHC or from Internet

newspaper publications. Titles in ALL CAPS are

CCHC creations except for those heading articles

from the National Center for Policy Analysis,

the Health Law Pulse, PrivacySecurityNetwork,

and LIST.HEALTHPLAN. Credit to the sending

organization or news service is listed at the

end of each article.

CITIZENS’ COUNCIL ON HEALTH CARE

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Citizens’ Council on Health Care

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ALL INFORMATION, DATA, AND MATERIAL CONTAINED, PRESENTED, OR PROVIDED HERE IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS REFLECTING THE KNOWLEDGE OR OPINIONS OF THE PUBLISHER, AND IS NOT TO BE CONSTRUED OR INTENDED AS PROVIDING MEDICAL OR LEGAL ADVICE.  THE DECISION WHETHER OR NOT TO VACCINATE IS AN IMPORTANT AND COMPLEX ISSUE AND SHOULD BE MADE BY YOU, AND YOU ALONE, IN CONSULTATION WITH YOUR HEALTH CARE PROVIDER.