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“Without the Affordable Care Act, I simply could not have retired at 62.”

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Donald L., Palm Coast, FL

Health Care Blog

  • A New Health Care Survey and the Affordable Care Act

    Today, a new survey from PricewaterhouseCoopers (PWC) looks at the cost of health care and to no one’s surprise, finds that costs are rising. But the survey also notes that the Affordable Care Act has the potential to help bring down health care costs. Here are a few things to keep in mind as you are reviewing the study:

    • Timing is everything. The survey was done in the first quarter of 2010 – before the Affordable Care Act was enacted and highlights some of the problems the Act was designed to address
    • Praise for the new law. PWC officials note that the Affordable Care Act “could bring significant new cost savings opportunities for employers and payers as well as new choices and transparency for workers buying insurance” and that it is “designed to reduce costs and improve efficiency."  PWC officials also note that increasing the number of Americans with insurance will help reduce shifting costs from employers to employees. And the new health insurance exchanges can help create new opportunities to bring down costs. 
    • The Affordable Care Act helps solve important problems and strengthen the health care system for all of us. Several provisions of the Affordable Care Act are designed to address the very issues raised by this report. For example:
      • Market reforms that limit cost-sharing in new job-based plans and discourage unreasonable premium increases will help keep prices down for businesses and their employees.
      • Premium review grants that provide incentives to states to review health insurance premium increases before they take effect.
      • An early retiree reinsurance program to encourage employers to maintain coverage essential to retirees not yet eligible for Medicare will provide $5 billion to businesses to make it easier for them to cover retirees.
      • Delivery system reforms will help improve the quality of care and decrease costs by paying for the quality of care, not the quantity of care.

    The Affordable Care Act is less than three months old, but it is well on the way to making the health care system better for all of us. The President has directed his implementation team to extend coverage to young adults early, and most insurance companies are already extending coverage.  Small businesses are already taking advantage of the small business tax credit, the first round of  $250 rebate checks to seniors who have hit the prescription drug donut hole have been mailed, and the employee retiree reinsurance program has been implemented before the law requires. In the weeks and months ahead, we will continue to implement the law carefully to help make health care affordable and accessible for all Americans and give Americans more control over their own care.

    Stephanie Cutter is Assistant to the President for Special Projects

  • Weekly Address: Fair Pay for Doctors

    With doctors facing deep cuts in their reimbursements from Medicare unless Congress acts to correct long-standing problems, the President calls on Senate Republicans to stop blocking the remedy and pledges to work toward a permanent solution.  The cuts would potentially mean widespread trouble for seniors getting needed care.

  • An Important Step on Medical Malpractice Reform

    Many people perceive that the current medical malpractice system is ineffective and unfair to both physicians and patients.  On one hand, the Institute of Medicine has estimated that between 44,000 and 98,000 Americans die each year because of preventable medical errors.  Too many patients experience significant challenges with health care quality and patient safety, and many injured patients are not well served by the current medical liability system.  Many doctors believe that the current system encourages frivolous lawsuits that tarnish reputations and contributes to the escalating cost of health care.

    As reviews by both the Robert Wood Johnson Foundation and Agency for Healthcare Research and Quality (AHRQ) have revealed, we lack a solid evidence base for determining which practices will provide fair and prompt compensation to patients, reduce preventable injuries, improve the quality of care, and reduce liability premiums.

    The 20 grants awarded today by the Agency for Healthcare Research and Quality (AHRQ) are an important step in the right direction.  They will fund programs that aim to reduce avoidable injuries. For instance, one program in Massachusetts aims to reduce errors in primary care physician offices, particularly concerning medications and referrals.  Another in Minnesota targets patient safety around childbirth by instituting best practices at 16 hospitals statewide and determining if there is a correlation between fewer complications in childbirth and malpractice suits targeted at obstetricians.  A third, in Oregon, will develop and work to implement a “safe harbor” system in which physicians who prove they adhered to evidence based guidelines are protected from frivolous lawsuits.

    Many of these grants will rigorously test so-called “disclosure and early offer” interventions, which was the keystone of a 2005 medical malpractice bill proposed by then-Senators Obama and Clinton. These interventions inform injured patients and families promptly and make efforts to provide prompt and fair compensation.

    The grants were praised by J. James Rohack, M.D., the President of the American Medical Association who said “The AMA is pleased that federal medical liability reform demonstration projects are quickly moving forward, with $25 million in grants to state programs announced today.”

    The HHS Patient Safety and Medical Liability initiative program represents the largest investment in malpractice reform by the Federal government in at least 20 years.  It will give states and health systems the information they need to improve their malpractice systems, making them more fair and efficient for both patients and doctors. 

    Ezekiel J. Emanuel, M.D., Ph.D., is Special Advisor for Health Policy with the Office of Management and Budget

  • Answers to More Tough Questions about Medicare and Health Care Reform from Seniors

    Earlier the week, President Obama and HHS Secretary Kathleen Sebelius participated in a health care tele-town hall with seniors at the Holiday Park Multipurpose Senior Center in Wheaton, Maryland.  In coordination with dozens of participating organizations, seniors across the country gathered at watch parties, called-in to ask questions, and got answers from the senior administration officials on hand at various local events.  Many more questions came in than could be answered during the tele-town hall but there are a number of ways that seniors, or their friends and family, can get the answers they need. 

    The Medicare website and hotline (1-800-MEDICARE) are best places to get the facts about new benefits that will soon be available under the Affordable Care Act.  In an effort to continue sharing accurate and reliable information, here are answers to some of the questions that were submitted to the White House Facebook page in advance of the event:

    Vic Eng:  Can more be done for seniors who want family to care for them in their later years?  Families need to be compensated as much as health care assistants.

    Yes, more can be done.  The Affordable Care Act includes an important new program to help seniors and others stay in their homes by making community-based care an alternative to nursing homes.  The program, called the Community Living Assistance Services and Supports (CLASS) Program, is a voluntary, enrollment based insurance program that provides Americans with a cash allowance to help subsidize costs of staying at home if you get sick or disabled.   This program will be available in 2012.  For more information about the CLASS Program, click here.    

    The new law includes a number of additional provisions that make it easier for seniors to stay in their community, rather than a nursing home.  For instance, the new law gives States the option to extend full Medicaid benefits to certain individuals receiving home and community-based services.  In addition, the “Community First” Choice provision allows States to offer community-based services to Medicaid beneficiaries with disabilities who would otherwise require institutional care.

    Marcia Killingsworth: At what age is one a senior?

    While there is no technical definition of a “senior,” typically, the term refers to Americans who qualify for Medicare, ages 65 and older.

    Alan Sutovsky: The most common question amongst seniors from organizations I have worked with as of late is – will the new laws be flexible enough to accommodate existing solutions that worked well in the local communities? Many feel it would be a shame to discount or eliminate patterns that have already helped to save costs and provide care.

    The Affordable Care Act builds upon our existing system to strengthen health care for all Americans.  It does not change the structure, nor put government in charge – it puts consumers in control of their own care.  Under the new law, States will have the option of pursuing their own reform plans, including running exchanges, adopting delivery system reform in Medicaid, and working with local providers to test innovative ideas through the Medicare and Medicaid Center for Innovation.  The new law also invests in local communities by providing new funding to support the construction and expansion of community health centers, allowing these centers to serve some 20 million new patients across the country.

    JL Richardson:  Good to hear you will be talking about Medicare. It is so sad to hear that it may be gone by 2030.  Cutting doctors' payments is leading to more doctors opting out of caring for Medicare patients.  How will Medicare be kept solvent, Mr. President?

    The Affordable Care Act strengthens Medicare’s financial health for the future.  Over the next 20 years, Medicare spending will grow at a slower rate as a result of rooting out waste, fraud, and abuse.  This will extend the life of the Medicare Trust Fund by 12 years and provide cost savings to Medicare beneficiaries. 

    In addition, to further protect Medicare and taxpayer dollars, the President has directed HHS to cut the improper payment rate, which tracks fraud, waste and abuse in Medicare, in half by 2012, and .  U.S. Attorneys nationwide are redoubling their efforts to coordinate with state and local law enforcement to prevent and prosecute fraud.

    The President is also committed to reforming the way in which we compensate doctors under Medicare, because right now it doesn’t make any sense.  He’s going to keep fighting for doctor pay that is more cost-effective and efficient.  The President has urged Congress to pass a short-term fix now, and to continue working toward a more permanent, long-term fix for the future.  Here’s what he said just tihs week: 

    “If you like your doctor, you can keep your doctor.  In fact, we’re taking steps to increase the number of primary care physicians so that seniors get the care that they need.  And I’m committed to reforming the way in which we compensate doctors under Medicare, because right now it doesn’t make any sense.  I don’t think -- some of you may be aware of the fact that we’ve got this patchwork system where Medicare doctors each year have to see if they’re going to get reimbursed properly or not.  And we’ve got to change that, and that’s something that I’m committed to doing.  And I’m going to keep fighting for doctor pay that is more cost-effective and efficient, and I urge Congress to pass a short-term fix today and then we need to fix this thing over the long term tomorrow.”

    Cleveland Gibbs:  What’s in it for the veterans?

    The Affordable Care Act builds upon the Obama Administration’s historic investments  in veterans’ health care to ensure efficient, timely, and predictable medical services for veterans.  Veterans eligible for VA benefits remain eligible under health reform—nothing in the legislation affects veterans’ access to the care they currently receive. Nor does the new law change TRICARE or TRICARE for Life.  In addition, The Act does not require anyone to change their health insurance coverage, but it does ensure increased health insurance options as well as expanded consumer protections to prevent insurance companies from denying or setting limits on coverage.  Millions of veterans have access to the essential creditable coverage through the VA system and therefore have met the individual responsibility requirement.  However, for those that want to purchase coverage in the Exchange with their own dollars, they may do so.  The law expands protections to prevent insurance companies from denying or setting limits on coverage, an important issue for veterans with a disability or chronic conditions.

    Michael Quallet:  Ask him how he's going to pay for it.

    The Affordable Care Act is fully paid for by reducing waste, fraud and abuse in the current system and by instituting reforms that will make our health care system more efficient and provide higher quality care. The law puts our budget and economy on a more stable path by reducing the deficit by more than $100 billion over the next ten years – and by more than $1 trillion over the second decade.

    Robyn Scott:  Why should I pay for my healthcare and then have to pay for someone else's as well?  Why is it ok for the Federal government to force me to do this, and to force any American to make a purchase? Hello, has anyone read the Constitution?

    The new law will make health insurance affordable for everyone, with tax credits for those who need help buying coverage and a hardship waiver for those who still can’t afford it.  But it is important that everyone be covered.  Otherwise, the cost of caring for the uninsured will continue to be shifted to people with insurance, as it is today.  Right now, families with insurance pay a $1000 hidden tax to pay the cost of caring for the uninsured. 

    Beginning in 2014, when the law is fully implemented, state Exchanges will offer individuals and small businesses more affordable and higher quality health care choices, the same choices as Members of Congress.    Most individuals will be required to maintain minimum coverage or pay an assessment equal to the greater of $95 or 1 percent of income in 2014, $325 or 2 percent of income in 2015, $695 or 2.5 percent of income in 2016 and indexed thereafter.

    Watch the video or read the transcript to learn more about the tele-town hall event and get the facts.   Join the White House Facebook page to get updates and participate in upcoming events.

    Stephanie Cutter is Assistant to the President for Special Projects

  • Accountability in the States for Unfair Health Insurance Rate Hikes

    We are making important progress in implementing the Affordable Care Act, helping to lower costs and give Americans more control over their own care. But unfortunately there is much work remaining to do, especially when it comes to skyrocketing insurance premiums. We learned earlier this week that Pennsylvania regulators had found a pattern of rate increases by the state’s nine largest health insurers suggesting the companies are trying to bolster revenues before health reforms take effect. Based on the regulators’ findings, the companies’ rate increases are questionable at best, and appear to have been targeting some of Pennsylvania’s most vulnerable groups through health profiling, a tool the Affordable Care Act will prohibit starting in 2014.  

    I want to applaud Governor Ed Rendell and his partners in Pennsylvania for investigating the companies and fighting back against the kind of unreasonable rate increases that have made health insurance unaffordable for many American families.

    I recently sent a letter to every Governor and State Insurance Commissioners encouraging them to review their state laws and work with their partners in their states to strengthen their oversight abilities. I also cited a recent example in California - where the insurance commissioner determined that a major insurer was making faulty assumptions to justify an almost 40% rate increase for more than 800,000 California residents.  In light of the company’s error, I asked officials in other states where this insurer is doing business to double check this company's math to ensure consumers don’t face faulty or unreasonable premium increases.  Given this week’s news out of Pennsylvania, I am urging states once again to provide stepped up oversight to ensure this kind of rate inflation isn't happening to their citizens.  

    Several provisions in the Affordable Care Act strengthen HHS’s and states’ oversight of insurance premiums and rate hikes.  These include the Medical Loss Ratio provision requiring insurers in the individual and small group markets to spend at least 80 percent of the premium dollar on health care, and insurers in the large group market to spend at least 85 percent of the premium dollar on health care.

    This week, I announced the availability of $51 million in Health Insurance Premium Review Grants through the Affordable Care Act to help states like Pennsylvania create or strengthen insurance review processes that help hold insurers accountable to consumers. These monies will fund the first round of grants available to states through a new $250 million grant program to create and strengthen state insurance rate review processes.  These grants will help empower state leaders with the resources they need to shift power away from insurers and back to families.  I encourage other states to follow Pennsylvania’s lead, and will continue to work alongside our state partners to ensure American families get the quality, affordable coverage they need, and deserve.

    Kathleen Sebelius is Secretary of Health and Human Services

  • Working to Break the Silence and Raise HIV/AIDS Awareness in Caribbean American Communities

    Caribbean American communities are incredibly diverse and have contributed greatly to the growth of this Nation.  I learned from watching my mother, who worked as a nurse taking care of sugar cane plantation workers, not only the importance of hard work and dedication but also the importance of family and community.  As a community, we face a significant challenge in tackling HIV. Even though Caribbean Americans comprise less than 10 percent of the total U.S. population, they are included in the disproportionately high rate of new HIV/AIDS diagnoses that occur in Black Americans. As a clinician and a professional in the field of public health, I have seen those challenges first hand. Yet as member of the community, I also know what we can accomplish if we work together. Caribbean American leaders can play an especially important role in the community to promote HIV awareness to address this public health issue. To help prevent HIV/AIDS, community leaders and care providers need to communicate about HIV in culturally relevant and linguistically appropriate ways.

    As with other racial and ethnic minority communities, many Caribbean Americans have taboos against discussing sexual matters related to HIV risk. There is stigma associated with men having sex with men in some Caribbean American communities, and this challenge may influence some individuals to avoid getting tested for HIV.  Delayed HIV testing and diagnosis among Caribbean Americans seriously endangers their health and the health of their sexual partners. We must be clear and open in discussing the risk factors associated with HIV and all work to reduce barriers to testing and treatment. With regular testing to identify new HIV infections, individuals who test positive can have the opportunity to receive appropriate care and treatment to prolong their lives and reduce the chances of infecting others.

    Federal partners including HHS have been working with the White House Office of National AIDS Policy (ONAP) to develop a National HIV/AIDS Strategy using input from the public, to improve our response to the epidemic in the U.S.  Active involvement by individuals and stakeholders including state, territorial, and local governments will be important in implementing the national strategy. The HHS Office of Minority Health will continue to partner with other agencies and organizations to support capacity building in hard-hit communities, improve care providers’ cultural competency, conduct outreach, and help people to get educated about HIV, get tested, and get treated. We are targeting those hardest hit by the epidemic for example, our HIV/AIDS Health Improvement for Re-entering Ex-Offenders Initiative (HIRE) program bridges healthcare gaps that exist with the AIDS epidemic to improve the HIV/AIDS health outcomes of ex-offenders re-entering the mainstream population by supporting community-based efforts to ensure their successful transition from state or federal incarceration back to their communities.

    Today, we recommit with others around the country to improve the lives of people living with HIV/AIDS. I learned a saying from my mother that not all silence is golden, and silence isn’t golden when it costs lives. On this Caribbean American HIV/AIDS Awareness Day, let’s raise our voices together to empower Caribbean American communities to challenge the stigma surrounding the disease in order to help reduce new infections and better serve people living with HIV. Let’s aim to reach our communities with a message focused on prevention and testing, understanding that if we work together we can continue to achieve great things, one of the greatest being an end to the HIV epidemic.  

    Garth Graham, M.D. is the Deputy Assistant Secretary for Minority Health at the U.S. Department of Health and Human Services.