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Top Ten Myths About
Healthcare in the US
The greatest enemy of the truth is very often
   not the lie--deliberate, contrived, and
    dishonest, but the myth -- persistent,
         persuasive, and unrealistic.

Belief in myths allows the comfort of opinion
     without the discomfort of thought.
                               John F. Kennedy
Disclosure
Paul Gorman, MD




           $
National Story:
     Healthcare Spending Crisis
•   “Health spending will hit $2.5 trillion this year
•   “devouring 17.6 percent of the economy
•   “The United States spends more on healthcare
    than any other country
•   “but its system is widely considered inefficient
    and it lags many other nations in key quality
    measures”
                               Reuters, Feb 24, 2009
Oregon Story:
              57 Y F in extremis
•   ED: lethargy, high pCO2, large pleural effusion
•   ICU: Stabilized, improved, extubated
•   able to provide Past History:
    •     Noted breast lump months before
    •     Spouse lost job, waited for insurance
    •     Seen in clinic, mammogram ordered

• Dx: Malignant effusion,
    	

    Metastatic breast cancer
Myth Number 10


 We have the best health
care system in the world.
1	

    Japan	

                      75
                  3	

    Sweden	

                     73.3
                  4	

    Switzerland	

                73.2
                  7	

    Italy	

                      72.7
                  8	

    Australia	

                  72.6
                  9	

    Spain	

                      72.6
                  11	

   Canada	

                     72
                  12	

   France	

                     72
                  13	

   Norway	

                     72
Health Adjusted   14	

                  16	

                          Germany	

                          Austria	

                                                        71.8
                                                        71.4
Life Expectancy   17	

                  19	

                          Israel	

                          Netherlands	

                                                        71.4
                                                        71.2
2002 WHO data     20	

   Belgium	

                    71.1
                  22	

   Greece	

                     71
                  23	

   New Zealand	

                70.8
                  24	

   United Kingdom	

             70.6
                  26	

   Denmark	

                    69.8
                  27	

   Ireland	

                    69.8
                  28	

   Slovenia	

                   69.5
                  29	

   United States of America	

   69.3
                  32	

   Cuba	

                       68.3
                  33	

   Republic of Korea	

          67.8
slide: PNHP IN/Rob Stone
Myth Number 9



        It’s their fault -
Uninsured are different from you & me.
“They” Are You and Me,
             Typical Americans
• 50 million Americans
  • 1 in 6 Oregonians
  • ages 19-30
  • ~10 M children
• 80% employed
  • $20,000 - $60,000/yr
  • self employed, service
      sector, small business
  •   outsourced middle
      aged couples
Myth Number 9 b



            It’s our fault
Our lifestyle and diversity are the problem
Not smoking, obesity, homicide, diversity
                        or statistical artifact
 Exhibit 1

Per Capita Health Spending And 15-Year Survival For 45-Year-Old Women, United States And 12 Comparison Countries,
1975 And 2005



                                                                               US
     Thousands of dollars




                                                                                                                Switzerland
                                                                                           Belgium
                                                                                            Canada    Austria

                                                                                    Netherlands
                                                                                                      France Sweden           Australia
                                                                                                 UK                       Japan
                            US                                      Switzerland
                                 Canada Australia                 Sweden
                                                 Austria   France            Netherlands

                                  UK        Belgium             Japan




SOURCE Authors’ analysis based on data from the sources described in the text. NOTES The dashed line separates 1975 values (blue
circles) and 2005 values (red squares). Values are presented for the percentage of forty-five-year-old women surviving fifteen years.
Myth Number 8


      Safety Net Care
Equal access to quality care for
  people without insurance
No Prenatal Care for 11%
             Why not?


           31%
                   No money or insurance
47%
                   Unable to get appointment
                   Other reason
         22%




                  MMWR 5/12/2000; 49:393
More Deaths Among
    Uninsured With Trauma
• 174,921 kids National Trauma Data Bank
• Controlled for injury, severity, age, race,
  type of hospital
• Uninsured kids: 2.97 times higher deaths
• Medicaid kids: 1.19 times higher deaths
No Insurance Means Poor
           Outcomes
• up to 1.25x higher mortality overall
• up to 3.2 x higher in-hospital mortality
• delays in Dx of colon cancer, melanoma
• poorer outcomes for breast cancer
• avoidable admissions for asthma, bleeding
  ulcers, diabetes, etc.
• up to 3x more likely to have adverse
  outcomes
Some Major Public Health
         Problems
Diabetes               72449
Influenza, pneumonia    56326
Colon cancer           50610
Second hand smoke     ~50000
No insurance          44840
Breast cancer          40470
Traffic deaths          37261
Prostate cancer        26328
Myth Number 7


Our system is good for
people with insurance
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Already




                   ☠	
  1	
  in	
  3	
  with	
  
                    insurance	
  defer	
  
                    needed	
  care	
  now

                 Schoen,	
  Health	
  Affairs	
  6/10/08

                                                                  slide: PNHP IN/Rob Stone
slide: PNHP Nick Skala
Choice?	
  
        Employer	
  Health	
  Benefit	
  Plans	
  Offered




Kaiser/HRET	
  Survey	
  of	
  Employer-­‐Sponsored	
  Health	
  
Benefits,	
  2008.                                                   slide: PNHP IN/Rob Stone
“Consumer Choice” in U.S.
             Reason for Change in Health Plan



                                 74%
                                       Employer Change
                                       Less Expensive
             9%                        Better Care
                  17%




Health Affairs 2000; 19(3):158
Insurance	
  Premiums	
  •	
  Workers’	
  Earnings	
  •	
  InflaCon	
  
                                                             1999-­‐2008
150%
                      Health	
  Insurance	
  Premiums
                      Workers'	
  Earnings
                      Overall	
  InflaCon

113%




75%




38%




 0%
   1999              2000          2001           2002          2003           2004   2005   2006    2007     2008


 Kaiser/HRET	
  Survey	
  of	
  Employer-­‐Sponsored	
  Health	
  
 Benefits,	
  2000-­‐2008.	
  	
  Bureau	
  of	
  Labor	
  StaJsJcs,	
  Consumer	
  
 Price	
  Index                                                                               slide: PNHP IN/Rob Stone
Medical Bankruptcy
        62% of Personal Bankruptcies

Insurance at Onset of Illness

               6%
                    8%
                                       Medicare
                                       Medicaid
                         24%           Uninsured
  61%                                  Private



                                Health Affairs 2002
Myth Number 6



Our system is good for
       business
Rising Insurance Costs




»Source: “A Perfect Storm” National Coalition on Heatlh Care, November 2001
10. Bottom up list
Small
Business
 Climate:
Unhealthy


    John Schmitt and Nathan Lane, Center for Economic and Policy Research
Strikes and Layoffs in Headlines
Pay, health care keep strike going
Santa Cruz Sentinel, CA …issues keeping the two sides from reaching a
deal, namely health care benefits ...

Strike looms, teachers consider pay, health benefits
BurlingtonFreePress.com,VT …Questions about health care costs and
coverage have emerged as a huge

TWU threatens strike over health care $
philly.com, PA ...ready to strike because the health plan

Machinists Union Strike for Pensions and Health ...
Emediawire WA Union members voted to strike ... Their vote
centered on issues of pensions, health care and job security. ...
Myth Number 5



Our system is good for
 health professionals
Nurses Believe Quality Has Declined
Nurses Exhausted and Discouraged
US Doctors Waste Time on Paperwork
Doctors Urged to Turn Away
              the Very Sickest

          “[We can] no longer tolerate patients
          with complex and expensive-to-treat
          conditions being encouraged to
          transfer to our group.” 	


                     -letter to faculty from academic hospital chief


Source: Modern Healthcare, 9/21/95:172.
Myth Number 4



Our system is good for
       society
37
             Number of Practicing Physicians per 1,000 Population, 2007



 4




 3




 2




 1




 0
      NETH      NOR     SWITZ      ITA       SWE*   GER   FR OECD MedianAUS*   UK   US   NZ    CAN


                                                                                                    THE
                                                                                               COMMONWEALTH
* 2006                                                                                             FUND

Source: OECD Health Data 2009 (June 2009).
38
              Average Annual Number of Physician Visits per Capita, 2007


8




6




4
        7.5
                  7.0
                            6.3       6.3    6.3
                                                    5.8    5.7
                                                                  5.0
                                                                        4.7
2                                                                              4.0    3.8
                                                                                                 2.8



0
       GER       ITA**     AUS        FR OECD MedianCAN*   NETH   UK    NZ    SWITZ   US*        SWE*


* 2006                                                                                                 THE
                                                                                                  COMMONWEALTH
** 2005                                                                                               FUND

Source: OECD Health Data 2009 (June 2009).
39
                        Hospital Discharges per 1,000 Population, 2007


300




225




150




  75




   0
          FR      GER      NOR      SWITZ    SWEOECD MedianAUS*   ITA*   NZ   US*   UK   NETH   CAN*


                                                                                                     THE
                                                                                                COMMONWEALTH
* 2006                                                                                              FUND

Source: OECD Health Data 2009 (June 2009).
40
      Average Length of Hospital Stay for Acute Myocardial Infarction, 2007

 Days

12




  9




  6




  3




  0
        GER        UK        ITA*    SWITZ   NETH OECD Median CAN*   FR   AUS*   US*   SWE    NOR

                                                                                                   THE
                                                                                              COMMONWEALTH
* 2006                                                                                            FUND

Source: OECD Health Data 2009 (June 2009).
41
                              Hospital Spending per Discharge, 2007
                                   Adjusted for Differences in Cost of Living
 Dollars

 18,000


 16,000


 14,000


 12,000


 10,000


  8,000


  6,000


  4,000


  2,000


      0
             US*       CAN*      NETH        SWITZ   NOR*   SWE   NZ   OECD Median AUS*   FR        GER


                                                                                                         THE
                                                                                                    COMMONWEALTH
* 2006                                                                                                  FUND

Source: OECD Health Data 2009 (June 2009).
NIH Clinical Research Grants
Fall in High Managed Care Areas
                                                    Managed Care Penetration
                                                   Low         Medium          High
Number of grants relative to 1986



                                    1.300

                                    1.175

                                    1.050

                                    0.925

                                    0.800
                                         1986      1988     1990      1992      1994


                                                Source: Moy et al. JAMA 1997; 278:217
Innovation:
      Published Research Leading to Drugs


                      15%


          55%            30%                          Drug Companies
                                                      Foreign labs
                                                      NIH Funded Labs




Sources: Internal NIH document available from Public Citizen;
also Zinner, Health Affairs, Sept-Oct 2001; also Boston Globe 4/5/98

                                                       slide: PNHP/Marcia Angell
Managed Care Drives Out
                                          Charity Care
HMO Penetration in Region                                       Low          Medium        High

                               13
 Hours of Charity Care/Month




                               11


                                9


                                7


                                5


                                3
                                    0%   1-20%        21-40%        41-60%        61-84%   >84%
                                             % of Practice Revenue from Managed Care
Myth Number 3



We can’t afford to cover
      everyone
Health	
  Care	
  Expenditures
                                           Per	
  Capita,	
  Adjusted	
  for	
  Differences	
  in	
  Cost	
  of	
  Living

       $7,000
                                                                                                                           Out-of-Pocket Spending
                                                                                                                           Private Spending
       $6,000
                                                                                                                           Out-of-Pocket Spending
                                                                                                                           Public Spending

       $5,000        $2,572



       $4,000

                      $803
       $3,000                      $483          $444
                                                                                 $342
                                                                                                 $354
                                                 $239            $906            $313
                                   $472                                                                           $370        $148
                                                                                                 $582                                   $28
                                                                                                                              $396
       $2,000                                                    $238                                                                   $389        $113
                                                                                                                                                    $359

                     $2,727
                                               $2,475                           $2,350
                                  $2,210                                                                        $2,176
       $1,000                                                   $1,894                          $1,940                       $1,917    $1,832
                                                                                                                                                    $1,611



             $0
                  United States   Canada       France       Netherlands       Germany          AustraliaUnited Kingdom
                                                                                                                     OECD Median       Japan    New Zealand




Source: The Commonwealth Fund, calculated from OECD Health Data 2006.
                                                                                                                             slide: PNHP IN/Rob Stone
slide: PNHP Claudia Fegan
slide: PNHP/Oliver Fein
Myth Number 2



         Invisible Hand
Private sector and market forces deliver
           best quality & value
“Another beautiful theory
                            destroyed by an ugly fact...”
                            Clinical Personnel       All Other Costs    Administration


                         $10,000
Cost per hospital stay




                          $7,500
                                         $2,289             $1,809
                                                                            $1,432
                          $5,000
                                         $2,872             $2,385
                                                                            $2,166
                          $2,500
                                         $2,954             $3,296          $2,909
                             $0
                                                            Not-For-
                                        For-Profit          Profit           Public

                             Source: Woolhandler & Himmelstein - NEJM 3/13/97
Private For Profit Hospitals
      More Expensive
Myth Number 1




    “It’s a Non Starter”
There’s No Support for a Single Payer
Public	
  Support	
  –	
  Single	
  Payer	
  
   ☤    49%	
  favor	
  coverage	
  from	
  a	
  single	
  govt.	
  plan1
   ☤ 59%	
  prefer	
  a	
  system	
  like	
  Medicare	
  for	
  all  2

   ☤ 59%	
  say	
  government	
  should
   	
   	
  	
   provide	
  na?onal	
  health	
  	
  	
   	
  
         	
   insurance      3




Polls	
  from	
  2009
1	
  April,	
  Kaiser	
  Family	
  FoundaJon
2	
  January,	
  Grove	
  Insight	
  Opinion	
  Research
3January,	
  New	
  York	
  Times/CBS	
  News

                                                           slide: PNHP IN/Rob Stone
“In principle, do you support or oppose government legislation
             to establish national health insurance?”




                                        Ann Intern Med 2008;148:566-567
Single-Payer: “Politically Feasible?”
      Other “Politically Infeasible” Movements


                           Abolition of Human
                                  Slavery
                                  (1860s)

                            Women’s Suffrage
                              Movement
                              (1840-1920)

                              Civil Rights Act
                                    (1964)

                                          slide: PNHP Nick Skala
Expensive, Inefficient, Inequitable
• No system in the industrialized world is as
  heavily commercialized, and none is as
  expensive, inefficient, and inequitable


• In short, the U. S. experience has shown that
  private markets and commercial competition
  have made things worse, not better, for our
  health care system.
                          Arnold S. Relman, MD
Goals
• Health care for every American
       no exceptions, cradle to grave.
• Free choice of doctors and hospitals
       like Medicare patients have
• Patients and doctors make care decisions
       not in the backroom or the board room
• Health policy is public policy
       with accountability and transparency.
• No one goes bankrupt because of illness
       not patients, not businesses, not governments
Do we keep rearranging the
deck chairs on the Titanic?
"...the greatest tragedy of this period … was
      not the strident clamor of the bad

but the appalling silence of the good people”

                        Dr. Martin Luther King Jr.
What can we do?
Nobody can do
everything,
but
everybody can
do something    Gil Scott-Heron
Primary Care & PPACA
• Greater need                  • Workforce expansion
   • 32 million new insured     • fund residencies (favor track
   • need for prevention,         record primary care)
     continuity, coordination   • loans for 10 y promise
• Inadequate supply             • Payment reform
   •   30% of MDs (vs 50-60%)   • RBRVS reform (10% increase)
   •   30-60% lower salaries    • Medicaid/Medicare increase
   •   greater workload         • New models of care
   •   diminishing resources    • Patient centered medical home
                                • Accountable care organization
Current bills like unecessary surgery
     “We have to do something”

• Access? No. Millions still uninsured,
  thousands will die because of no access
• Choice? No. Insurance companies choose
  who you see, what you can get, how much
  you pay
• Affordability: No. Billing and claims waste
  unchanged. Prices still set to guarantee big
  insurance profit. Bankruptcies persist for
  individuals, businesses, governments
Current Bills Fail to Improve

• Portability?No. You still lose insurance
  when you change jobs, get laid off, etc.
  Discontinuity -> poor outcomes
• Accountability?   No. Health policy set by
  big insurance in private. No
  accountability, no transparency, no recourse
• Quality?  No. Continues tweaking system
  that’s been failing for decades

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Health care tenmyths

  • 1. Top Ten Myths About Healthcare in the US
  • 2. The greatest enemy of the truth is very often not the lie--deliberate, contrived, and dishonest, but the myth -- persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought. John F. Kennedy
  • 4. National Story: Healthcare Spending Crisis • “Health spending will hit $2.5 trillion this year • “devouring 17.6 percent of the economy • “The United States spends more on healthcare than any other country • “but its system is widely considered inefficient and it lags many other nations in key quality measures” Reuters, Feb 24, 2009
  • 5. Oregon Story: 57 Y F in extremis • ED: lethargy, high pCO2, large pleural effusion • ICU: Stabilized, improved, extubated • able to provide Past History: • Noted breast lump months before • Spouse lost job, waited for insurance • Seen in clinic, mammogram ordered • Dx: Malignant effusion, Metastatic breast cancer
  • 6. Myth Number 10 We have the best health care system in the world.
  • 7. 1 Japan 75 3 Sweden 73.3 4 Switzerland 73.2 7 Italy 72.7 8 Australia 72.6 9 Spain 72.6 11 Canada 72 12 France 72 13 Norway 72 Health Adjusted 14 16 Germany Austria 71.8 71.4 Life Expectancy 17 19 Israel Netherlands 71.4 71.2 2002 WHO data 20 Belgium 71.1 22 Greece 71 23 New Zealand 70.8 24 United Kingdom 70.6 26 Denmark 69.8 27 Ireland 69.8 28 Slovenia 69.5 29 United States of America 69.3 32 Cuba 68.3 33 Republic of Korea 67.8
  • 8.
  • 10. Myth Number 9 It’s their fault - Uninsured are different from you & me.
  • 11. “They” Are You and Me, Typical Americans • 50 million Americans • 1 in 6 Oregonians • ages 19-30 • ~10 M children • 80% employed • $20,000 - $60,000/yr • self employed, service sector, small business • outsourced middle aged couples
  • 12. Myth Number 9 b It’s our fault Our lifestyle and diversity are the problem
  • 13. Not smoking, obesity, homicide, diversity or statistical artifact Exhibit 1 Per Capita Health Spending And 15-Year Survival For 45-Year-Old Women, United States And 12 Comparison Countries, 1975 And 2005 US Thousands of dollars Switzerland Belgium Canada Austria Netherlands France Sweden Australia UK Japan US Switzerland Canada Australia Sweden Austria France Netherlands UK Belgium Japan SOURCE Authors’ analysis based on data from the sources described in the text. NOTES The dashed line separates 1975 values (blue circles) and 2005 values (red squares). Values are presented for the percentage of forty-five-year-old women surviving fifteen years.
  • 14. Myth Number 8 Safety Net Care Equal access to quality care for people without insurance
  • 15. No Prenatal Care for 11% Why not? 31% No money or insurance 47% Unable to get appointment Other reason 22% MMWR 5/12/2000; 49:393
  • 16. More Deaths Among Uninsured With Trauma • 174,921 kids National Trauma Data Bank • Controlled for injury, severity, age, race, type of hospital • Uninsured kids: 2.97 times higher deaths • Medicaid kids: 1.19 times higher deaths
  • 17. No Insurance Means Poor Outcomes • up to 1.25x higher mortality overall • up to 3.2 x higher in-hospital mortality • delays in Dx of colon cancer, melanoma • poorer outcomes for breast cancer • avoidable admissions for asthma, bleeding ulcers, diabetes, etc. • up to 3x more likely to have adverse outcomes
  • 18. Some Major Public Health Problems Diabetes 72449 Influenza, pneumonia 56326 Colon cancer 50610 Second hand smoke ~50000 No insurance 44840 Breast cancer 40470 Traffic deaths 37261 Prostate cancer 26328
  • 19. Myth Number 7 Our system is good for people with insurance
  • 20.                            Already ☠  1  in  3  with   insurance  defer   needed  care  now Schoen,  Health  Affairs  6/10/08 slide: PNHP IN/Rob Stone
  • 22. Choice?   Employer  Health  Benefit  Plans  Offered Kaiser/HRET  Survey  of  Employer-­‐Sponsored  Health   Benefits,  2008. slide: PNHP IN/Rob Stone
  • 23. “Consumer Choice” in U.S. Reason for Change in Health Plan 74% Employer Change Less Expensive 9% Better Care 17% Health Affairs 2000; 19(3):158
  • 24. Insurance  Premiums  •  Workers’  Earnings  •  InflaCon   1999-­‐2008 150% Health  Insurance  Premiums Workers'  Earnings Overall  InflaCon 113% 75% 38% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Kaiser/HRET  Survey  of  Employer-­‐Sponsored  Health   Benefits,  2000-­‐2008.    Bureau  of  Labor  StaJsJcs,  Consumer   Price  Index slide: PNHP IN/Rob Stone
  • 25. Medical Bankruptcy 62% of Personal Bankruptcies Insurance at Onset of Illness 6% 8% Medicare Medicaid 24% Uninsured 61% Private Health Affairs 2002
  • 26. Myth Number 6 Our system is good for business
  • 27. Rising Insurance Costs »Source: “A Perfect Storm” National Coalition on Heatlh Care, November 2001
  • 29. Small Business Climate: Unhealthy John Schmitt and Nathan Lane, Center for Economic and Policy Research
  • 30. Strikes and Layoffs in Headlines Pay, health care keep strike going Santa Cruz Sentinel, CA …issues keeping the two sides from reaching a deal, namely health care benefits ... Strike looms, teachers consider pay, health benefits BurlingtonFreePress.com,VT …Questions about health care costs and coverage have emerged as a huge TWU threatens strike over health care $ philly.com, PA ...ready to strike because the health plan Machinists Union Strike for Pensions and Health ... Emediawire WA Union members voted to strike ... Their vote centered on issues of pensions, health care and job security. ...
  • 31. Myth Number 5 Our system is good for health professionals
  • 32. Nurses Believe Quality Has Declined
  • 33. Nurses Exhausted and Discouraged
  • 34. US Doctors Waste Time on Paperwork
  • 35. Doctors Urged to Turn Away the Very Sickest “[We can] no longer tolerate patients with complex and expensive-to-treat conditions being encouraged to transfer to our group.” -letter to faculty from academic hospital chief Source: Modern Healthcare, 9/21/95:172.
  • 36. Myth Number 4 Our system is good for society
  • 37. 37 Number of Practicing Physicians per 1,000 Population, 2007 4 3 2 1 0 NETH NOR SWITZ ITA SWE* GER FR OECD MedianAUS* UK US NZ CAN THE COMMONWEALTH * 2006 FUND Source: OECD Health Data 2009 (June 2009).
  • 38. 38 Average Annual Number of Physician Visits per Capita, 2007 8 6 4 7.5 7.0 6.3 6.3 6.3 5.8 5.7 5.0 4.7 2 4.0 3.8 2.8 0 GER ITA** AUS FR OECD MedianCAN* NETH UK NZ SWITZ US* SWE* * 2006 THE COMMONWEALTH ** 2005 FUND Source: OECD Health Data 2009 (June 2009).
  • 39. 39 Hospital Discharges per 1,000 Population, 2007 300 225 150 75 0 FR GER NOR SWITZ SWEOECD MedianAUS* ITA* NZ US* UK NETH CAN* THE COMMONWEALTH * 2006 FUND Source: OECD Health Data 2009 (June 2009).
  • 40. 40 Average Length of Hospital Stay for Acute Myocardial Infarction, 2007 Days 12 9 6 3 0 GER UK ITA* SWITZ NETH OECD Median CAN* FR AUS* US* SWE NOR THE COMMONWEALTH * 2006 FUND Source: OECD Health Data 2009 (June 2009).
  • 41. 41 Hospital Spending per Discharge, 2007 Adjusted for Differences in Cost of Living Dollars 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 US* CAN* NETH SWITZ NOR* SWE NZ OECD Median AUS* FR GER THE COMMONWEALTH * 2006 FUND Source: OECD Health Data 2009 (June 2009).
  • 42.
  • 43. NIH Clinical Research Grants Fall in High Managed Care Areas Managed Care Penetration Low Medium High Number of grants relative to 1986 1.300 1.175 1.050 0.925 0.800 1986 1988 1990 1992 1994 Source: Moy et al. JAMA 1997; 278:217
  • 44. Innovation: Published Research Leading to Drugs 15% 55% 30% Drug Companies Foreign labs NIH Funded Labs Sources: Internal NIH document available from Public Citizen; also Zinner, Health Affairs, Sept-Oct 2001; also Boston Globe 4/5/98 slide: PNHP/Marcia Angell
  • 45.
  • 46. Managed Care Drives Out Charity Care HMO Penetration in Region Low Medium High 13 Hours of Charity Care/Month 11 9 7 5 3 0% 1-20% 21-40% 41-60% 61-84% >84% % of Practice Revenue from Managed Care
  • 47. Myth Number 3 We can’t afford to cover everyone
  • 48. Health  Care  Expenditures Per  Capita,  Adjusted  for  Differences  in  Cost  of  Living $7,000 Out-of-Pocket Spending Private Spending $6,000 Out-of-Pocket Spending Public Spending $5,000 $2,572 $4,000 $803 $3,000 $483 $444 $342 $354 $239 $906 $313 $472 $370 $148 $582 $28 $396 $2,000 $238 $389 $113 $359 $2,727 $2,475 $2,350 $2,210 $2,176 $1,000 $1,894 $1,940 $1,917 $1,832 $1,611 $0 United States Canada France Netherlands Germany AustraliaUnited Kingdom OECD Median Japan New Zealand Source: The Commonwealth Fund, calculated from OECD Health Data 2006. slide: PNHP IN/Rob Stone
  • 50.
  • 52. Myth Number 2 Invisible Hand Private sector and market forces deliver best quality & value
  • 53. “Another beautiful theory destroyed by an ugly fact...” Clinical Personnel All Other Costs Administration $10,000 Cost per hospital stay $7,500 $2,289 $1,809 $1,432 $5,000 $2,872 $2,385 $2,166 $2,500 $2,954 $3,296 $2,909 $0 Not-For- For-Profit Profit Public Source: Woolhandler & Himmelstein - NEJM 3/13/97
  • 54.
  • 55. Private For Profit Hospitals More Expensive
  • 56. Myth Number 1 “It’s a Non Starter” There’s No Support for a Single Payer
  • 57. Public  Support  –  Single  Payer   ☤ 49%  favor  coverage  from  a  single  govt.  plan1 ☤ 59%  prefer  a  system  like  Medicare  for  all 2 ☤ 59%  say  government  should       provide  na?onal  health           insurance 3 Polls  from  2009 1  April,  Kaiser  Family  FoundaJon 2  January,  Grove  Insight  Opinion  Research 3January,  New  York  Times/CBS  News slide: PNHP IN/Rob Stone
  • 58. “In principle, do you support or oppose government legislation to establish national health insurance?” Ann Intern Med 2008;148:566-567
  • 59. Single-Payer: “Politically Feasible?” Other “Politically Infeasible” Movements Abolition of Human Slavery (1860s) Women’s Suffrage Movement (1840-1920) Civil Rights Act (1964) slide: PNHP Nick Skala
  • 60. Expensive, Inefficient, Inequitable • No system in the industrialized world is as heavily commercialized, and none is as expensive, inefficient, and inequitable • In short, the U. S. experience has shown that private markets and commercial competition have made things worse, not better, for our health care system. Arnold S. Relman, MD
  • 61. Goals • Health care for every American no exceptions, cradle to grave. • Free choice of doctors and hospitals like Medicare patients have • Patients and doctors make care decisions not in the backroom or the board room • Health policy is public policy with accountability and transparency. • No one goes bankrupt because of illness not patients, not businesses, not governments
  • 62. Do we keep rearranging the deck chairs on the Titanic?
  • 63. "...the greatest tragedy of this period … was not the strident clamor of the bad but the appalling silence of the good people” Dr. Martin Luther King Jr.
  • 64. What can we do? Nobody can do everything, but everybody can do something Gil Scott-Heron
  • 65. Primary Care & PPACA • Greater need • Workforce expansion • 32 million new insured • fund residencies (favor track • need for prevention, record primary care) continuity, coordination • loans for 10 y promise • Inadequate supply • Payment reform • 30% of MDs (vs 50-60%) • RBRVS reform (10% increase) • 30-60% lower salaries • Medicaid/Medicare increase • greater workload • New models of care • diminishing resources • Patient centered medical home • Accountable care organization
  • 66. Current bills like unecessary surgery “We have to do something” • Access? No. Millions still uninsured, thousands will die because of no access • Choice? No. Insurance companies choose who you see, what you can get, how much you pay • Affordability: No. Billing and claims waste unchanged. Prices still set to guarantee big insurance profit. Bankruptcies persist for individuals, businesses, governments
  • 67. Current Bills Fail to Improve • Portability?No. You still lose insurance when you change jobs, get laid off, etc. Discontinuity -> poor outcomes • Accountability? No. Health policy set by big insurance in private. No accountability, no transparency, no recourse • Quality? No. Continues tweaking system that’s been failing for decades