Archive for December, 2009

It’s 2003 and healthcare’s in crisis. Are workers and business in this together?

The following is a leaflet distributed at the American Public Health Association convention in the fall of 2003, six years ago.  It seems  pretty relevant today, given the current health reform legislation, with its emphasis on cost reduction for business and government, its incentives to make us pay more for less healthcare while securing sustained profits for insurers, drug companies and hospital chains, and its reliance on cuts to Medicare to fund the whole plan.

HEALTH CARE IN CRISIS.  ARE WE AND BUSINESS ON THE SAME PAGE?

Obviously, healthcare is in crisis, but really there are two parallel health care crises.

For us, patients and providers, the health crisis is: 43 million uninsured, “patient driven” insurance that shifts costs to patients through high co-pays and inadequate benefits, a safety-net in tatters, a critical shortage of health workers, a hospital system rife with dangerous mistakes, and the worst health indicators in the industrialized world.  It’s clear to us that something must be done.

Business has a completely different health crisis: falling HMO and health insurance profits, rising and uncontrollable health costs, strikes and near-strikes over cuts in employee coverage, millions of ageing baby boomers with expensive diseases on the horizon, an uncertain recovery, huge federal and state budget deficits, and costly open-ended war ahead.  From their viewpoint, too, something must be done.

We need high-quality, comprehensive, single-tier, universal, government-financed healthcare.  Business needs to lower its operating costs as much as possible. We believe these are conflicting imperatives, which do not point to the same solutions.

Obviously, a huge segment of the corporate world wants to keep health insurance and high-priced drugs as part of the health delivery system because it’s a profitable commodity.  That sector is busy planning multi-tier “universal health coverage” where the uninsured get vouchers to buy new stripped-down health plans that could be profitable.  This plan was advocated in a recent NY Times Op-Ed piece (11-18-03), a SF Chronicle interview with Kaiser’s CEO (11-16-03), and is a plan proposed by California Blue Shield, which has hired hundreds of workers to handle anticipated new policy holders.

But what about the rest of the corporate world, businesses whose profits are reduced by bloated healthcare profits?  Could they help get single payer?  Some single-payer advocates say cracks are forming in the wall of corporate resistance. High costs and strikes are making some think twice about single payer. There are even policy-makers who worry that the dominance of the health and drug industries weakens the manufacturing sector, which could compromise national defense in time of major war.  Does all this make those businesses our ally?

We think not. For this sector of the economy, workers’ healthcare is a cost of doing business, like maintaining the machinery. Business will try to reduce health costs whether they are paid as direct benefits or as taxes under single payer.  They certainly have tried to reduce other tax-supported health programs like Medicare and Medicaid.  It should not stretch the imagination to foresee how business could turn the intense centralization of universal single-payer health care to their own advantage, and make it a mechanism for severe rationing of healthcare.  For example, the stripped-down “basic coverage” schemes that the insurance industry is presently designing for the uninsured will require standardization and government approval.  Once that happens, business will push to have “basic coverage” be the standard for patients under single payer.

For years, business hasn’t given a damn about people not having medical insurance.  Since the early 1980s they’ve laid tens of millions of us off, cut millions of current workers and retirees off medical benefits, and made their coverage so expensive that millions cannot afford it even when it is offered.  So you’ve got to suspect something is fishy when they start being so concerned about whether we have medical insurance.  We saw what happened when they were concerned with seniors not having prescription coverage.  They bundled in a plan to dismantle Medicare!

Our healthcare should be neither a commodity nor a cost of doing business.  This is a period of tremendous collision of people’s needs and aspirations versus corporate needs and demands.  The movement to end this disgraceful situation will involve a tremendous fight.   As Quentin Young said, getting good healthcare will be as big a struggle as civil rights.   Civil rights, Medicare, and Medicaid were all won by people who worked, their families, and people who would have worked if they could.  Their actions on the job, in their schools, organizations, churches, in the streets, and in the military challenged the US’s ability to govern and made the government produce the “Great Society” programs.  Although many of these gains have been erased in the intervening forty years, millions of lives were improved and the struggle remains as an inspiration and example of what is needed for deep reform of society.

We deserve nothing less than high-quality, comprehensive, single-tier, universal,  government-financed healthcare.  We have to be clear on what it will take to get it and who our allies are.

Concerned members of APHA

The Economic Crisis Ends; The Political Crisis Begins

In Ireland, “More than $4 billion in cuts…will slash salaries for 400,000 government workers while making painful reductions in benefits for such groups as widows and single mothers to the blind and disabled children.” Unemployment benefits were also slashed by as much as 30%.”

“The U.S. government, like the U.K. government, the Greeks and the Irish, is going to need to draw down fiscal stimulus, pare expenditures [make cuts], raise revenues [taxes] and probably take a look at [cuts] in their entitlement programs” — Social Security, Medicare, Education, etc.

Countercurrents, December 29, 2009

The Economic Crisis Ends; The Political Crisis Begins

By Shamus Cooke

First Iceland, then Ireland, now Greece. Much of Europe is mired in inescapable debt and bankrupt nations, the result of crashing banks, bank bailouts, and soaring unemployment. The U.S. and U.K. watch from a distance, knowing their turn is next.

The European corporate-elite — like their American counterparts — lavished non-stop praise on the “bold yet necessary” decision to bail out the banks; the economy was supposedly saved from “impending collapse.” But every action has an equal but opposite reaction. Bailing out the banks saved the butts of dozens of European bankers, but now millions of workers are about to experience a thundering kick in the ass.

Unbeknownst to most Europeans, the public money that financed the bank bailouts created a massive public debt problem, to be solved by massively slashing public programs that benefit workers and the poor. This amounts to a blatant transfer of billions — maybe trillions of dollars — in public wealth, away from the majority of citizens toward a parasitic crust of bankers.

These “tough decisions” should act as warnings to the American working class, since the U.S. corporate-elite, too, has clear-cut plans for who is to pay for their colossal spending spree on bank giveaways and foreign wars (hint: it’s not them).

The massive amounts of government bonds printed to pay for the global bank bailouts were purchased by global investors (capitalists). For these vultures, government bonds are an excellent investment when the economy crashes, and gambling on stocks turns sour. Now, these investors want to be sure that the heavily indebted governments are able to pay up. And they’re becoming impatient.

A good peek into the mind of the global investor can be seen in any of the three global “credit ratings agencies” — Moody’s, Standard and Poor’s, and Fitch. These corporations give “grades” to debtors — federal governments, corporations, state and city governments, etc. — based on their “credit worthiness.” To have one’s grade lowered means that investors should back off and demand higher interest rates on loans, if loans are made at all. Receiving a “B” instead of an “A” can make the difference between a poor nation being able to build a highway, hospital, or school.

Recently, Moody’s released their notorious “misery index” — the nations that are most sunken in debt and least able to pay it back, requiring that “special measures” be taken to prove to investors that these governments are able to repay their loans. The biggest losers of the misery index were not surprises and included the above-mentioned European countries. However, ranking right behind bankrupt Iceland was the United States: the once-proud super-power is now a debt-ridden carcass, with investor vultures circling overhead.

Moody’s is warning rich investors to be wary of formerly rich countries defaulting on their loans, i.e., going bankrupt. Moody’s chief of rating nations’ credit, Pierre Cailleteau, explains why:

“This is mainly because of the crisis of public finances [bank bailouts plus unemployment] that has beset many rich countries in what Moody’s believes will be the final — and disturbingly long-lasting — stage of the crisis.” This is what passes for optimism nowadays.

Moody’s is demanding that less-rich nations like Greece, Ireland, Spain, etc., take immediate actions to make their rich investors happy. The Washington Post explains Ireland’s situation:

“More than $4 billion in cuts…will slash salaries for 400,000 government workers while making painful reductions in benefits for such groups as widows and single mothers to the blind and disabled children.” Unemployment benefits were also slashed by as much as 30%.” (December 22, 2009).

The U.S. and the U.K. need not make immediate cuts, but they must make immediate plans to make major cuts, explains Moody’s spokesmen Cailleteau:

“…this will be the year [2010] where both the U.S. government and the U.K. government will have to articulate a credible plan to address their problems of large debt.”

John Chambers of Standard & Poor’s was more blunt:

“The U.S. government, like the U.K. government, the Greeks and the Irish, is going to need to draw down fiscal stimulus, pare expenditures [make cuts], raise revenues [taxes] and probably take a look at [cuts] in their entitlement programs” — Social Security, Medicare, Education, etc.

This is not news to President Obama. While he was extending the Bush bank bailouts, Obama took time to calm the nerves of investors, who saw an exploding debt that would soon need to be dealt with. That is why Obama pledged to the Washington Post that he would “reform entitlement programs.” (January 16, 2009). This was to be done after the economy had stabilized.

It’s almost time.

The mainstream media will surely go on the offensive to support our corporate-owned President in his assault on the social programs long cherished by the American working class. We will be told that there are “no other options,” when in fact there are.

Not only could military spending be reduced by hundreds of billions of dollars per year, but taxes should be raised significantly for the very wealthy. If the top 1 percent of the richest Americans were taxed at 90 percent, hundreds of millions of Americans would benefit, since public education would be saved, alongside Medicare and Social Security.

Barack Obama will soon be pursuing a policy that George Bush Jr. would never dare try. He must be resisted at every step. American unions should look to Europe for inspiration for how to deal with the coming onslaught: mass demonstrations and united strike action will be the only way to put sufficient pressure on a government enforcing a solidly right-wing corporate agenda. The political instability that is currently engulfing Europe is soon to be exported to the United States — we must not be caught off-guard.

The issue of the day is clear: somebody must be made to pay for the economic crisis. The corporate-elite is planning to push this burden on to the working class. The working class must push back. Unions and community organizations should begin organizing now in anticipation, with demands to tax the rich and corporations, and to save Social Security, Medicare, and public education.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org). He can be reached at shamuscook@yahoo.com

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Schwarzenegger threatens to eliminate IHSS if he’s not given complete freedom to slash programs

“The Governor in his letter specifically cited recent federal court decisions that has blocked the State from implementing budget reductions impacting the State’s contribution (participation) toward IHSS worker wages; blocked a 10% reduction in reimbursements to foster family agency providers, blocked a 10% and 5% reduction for most Medi-Cal providers; stopped a reduction in the number of days Adult Health Care Centers could provide services; stopped major reduction in elgibility and services  based on a little known assessment tool (called the functional index scores and rankings) that would have eliminated or reduced services to over 130,000 children and adults in the IHSS program. The federal courts have said those reductions that the State wanted to make in order to close a budget gap of over $60 billion, violated federal law.

San Francisco and Sacramento Gray Panthers were among the plaintiffs in the successful suits against reductions to Medi-Cal providers.  Schwarzenegger has refused to consider single-payer healthcare, which could eliminate billions of state healthcare expenses.  He has also refused any serious attempts to raise revenue from corporations or rich Californians who could afford to pay the revenue the state needs to provide needed services in health, welfare, education, housing,  and many other vital services.

CDCAN Report, #326-2009, December 22, 2009

State Budget Crisis:

GOVERNOR SAYS STATE IS “NOW FACED WITH A DECISION TO ELIMINATE ENTIRE IHSS PROGRAM”

SENDS LETTER URGING CONGRESS NOT TO IMPOSE NEW UNFUNDED MEDICAID REQUIREMENTS IN HEALTH CARE REFORM – URGES MORE “FLEXIBILITY” FOR STATES – GOVERNOR’S LETTER SIGNAL THAT HIS PROPOSED BUDGET IN JANUARY WILL INCLUDE MASSIVE SPENDING REDUCTIONS IMPACTING PEOPLE WITH DISABILITIES, SENIORS, MENTAL HEALTH NEEDS, WORKERS & PROVIDERS

SACRAMENTO, CALIF (CDCAN) [Updated 12/22/09 07:50 PM  (Pacific Time)]  – Citing an increasing heavy burden of costs imposed on the states at a time when most are experiencing enormous budget shortfalls, Governor Arnold Schwarzenegger early this evening released a letter addressed to House Speaker Nancy Pelosi (Democrat – San Francisco) urging that Congress not impose increased Medicaid program costs on states through new unfunded federal requirements (mandates) and allow states the flexibility to reduce reimbursement rates and benefits to recipients, in the pending health care reform bills.  The Governor said in his letter that the latest health care reform bills would increase California’s unfunded mandate costs through new Medicaid and other health requirements by over $3 billion, adding to the state’s budget woes.


But the Governor also mentioned in his letter what will likely be an politically explosive proposals of the possible elimination of the entire In-Home Supportive Services (IHSS) program that provides in-home supports and services to over 462,000 children and adults with disabilities (including developmental), mental health needs, the blind, persons with traumatic brain and other injuries, low income seniors.

The Governor, in his letter that also went to all members of California’s congressional delegation, said that the combination of recent court decisions blocking many of the state budget cuts to Medicaid funded services including and lack of “flexibility” in current federal Medicaid rules to allow the states to reduce services or provider reimbursement rates when necessary, will mean that “California is now faced with a decision to eliminate the entire IHSS program”

The Governor did not firmly say that the proposed elimination of the entire IHSS program would be in his proposed 2010-2011 State Budget, expected to be releasd January 8, 2010 – but today’s letter was the strongest indication that it would be.

Any such proposal however would require approval by both the Assembly and State Senate – and advocates and advocacy organizations, representing disability, mental health, the blind, low income seniors, IHSS workers are certain to  raise major protests to have such a proposal rejected immediately.

Both houses of the Legislature are in recess and are not scheduled to return to the State Capitol to begin the 2010 legislative session until Monday, January 4.

Governor Says Health Reform Bill Must Give States “Flexibility”

The Governor, in his letter to Pelosi, wrote that  “…For health care reform to succeed, Congress must first and foremost give states the flexibility to meet our current obligations within the revenues available to states…Congress must either let states reduce their costs to live within limited resources or treat states equally by fully funding all Medicaid populations above a certain eligibility level…”

The Governor said in his letter that “Congress has a chance to make history with this legislation,” but that  “the current structure and the proposed expansion of Medicaid under health care reform are unsustainable for California. Governors in every part of the country have raised similar concerns. “

He said that “California stands ready to help achieve successful health care reform, and I look forward to continuing to work with you as the final comprehensive bill is negotiated in Congress”.

Congress is expected to take final action on a reform package sometime early next year – but the Governor stressed in his letter to Speaker Pelosi that the reform effort “…will only succeed if Congress gives states, like California, the flexibility to meet current obligations within the revenues available to states.”

Governor Says Court Decisions and Federal Rules Hampering Efforts To Control Costs

The Governor in his letter specifically cited recent federal court decisions that has blocked the State from implementing budget reductions impacting the State’s contribution (participation) toward IHSS worker wages; blocked a 10% reduction in reimbursements to foster family agency providers, blocked a 10% and 5% reduction for most Medi-Cal providers; stopped a reduction in the number of days Adult Health Care Centers could provide services; stopped major reduction in elgibility and services  based on a little known assessment tool (called the functional index scores and rankings) that would have eliminated or reduced services to over 130,000 children and adults in the IHSS program.

The federal courts have said those reductions that the State wanted to make in order to close a budget gap of over $60 billion, violated federal law.

The Governor said those lawsuits, and also what he termed lack of “flexibility” in federal Medicaid laws that make it difficult for the states to make changes or reductions in services and eligibility and provider reimbursements will have serious consequences on the state’s Medi-Cal program and related services in the coming year.

The Governor in his letter wrote that “Ironically, while federal courts have ruled that California cannot reduce provider rates for optional benefits such as dental services or IHSS, they have ruled that completely eliminating those same optional benefits is perfectly legal. Adult dental was eliminated as part of our effort to close a $62 billion budget gap earlier this year.”

The Governor noted that “If states had more flexibility to reduce rates and benefits under Medicaid rules, we might have been able to save a portion of that program. Similarly, we reduced services to specified populations in our In-Home Supportive Services program, but federal court decisions have prevented those reductions from occurring.” and warned that “ California is now faced with a decision to eliminate the entire IHSS program.”

FULL TEXT OF GOVERNOR’S LETTER TO CONGRESS

December 22, 2009

The Honorable Nancy Pelosi

Speaker of the House

U.S. House of Representatives

Washington, DC 20515

Dear Madam Speaker,

As one of the few governors in the nation who attempted to pass comprehensive health care reform at the state level, I have great appreciation for the historic effort you are leading in Congress.  In fact, I am one of the only Republican elected officials in the country to publicly support the President’s health care reform efforts.

When asked for my support, I was assured that federal legislation would not increase costs to California or include new unfunded mandates. Unfortunately, under nearly every scenario we can predict, the federal health care reform legislation being debated would cost California’s General Fund an additional $3 billion to $4 billion annually. This crushing new burden will be added to a safety net that is already shredding under billions of dollars in unfunded federal mandates that we are struggling to meet. Medicaid is a partnership program between the federal government and the states. As the partner responsible for implementing this program, I am telling you that our Medicaid program is already at the breaking point, and if federal health care reform is passed without addressing the underlying faults in the system, health care reform will fail.

Let me be clear: I continue to support federal health care reform and believe that the current reform efforts could provide a historic achievement that will benefit all Americans. However, if Congress fails to address the existing unfunded mandates and adds yet another layer, federal health care reform could collapse the very safety net system it seeks to expand.

For health care reform to succeed, Congress must first and foremost give states the flexibility to meet our current obligations within the revenues available to states.

Giving California Flexibility to Manage Its Current Medicaid Budget

Under federal rules, California is locked into eligibility standards and benefit levels that are far more expansive and costly than other states’. For instance, Texas’s Medicaid program covers parents with incomes up to 27 percent of the Federal Poverty Level (FPL); Pennsylvania covers those earning up to 34 percent of FPL and Florida up to 53 percent. California has expanded coverage over the years and now covers parents with incomes up to 106 percent of FPL. Federal rules for accepting American Reinvestment and Renewal Act funding prevent California from rolling back eligibility to 70 percent of the FPL to adjust our budget for lower revenues during the recession. Reducing eligibility to 70 percent of FPL in California would save more than $500 million General Fund dollars and would still cover more people than many other states.

Federal rules actually punish California twice for expanding our safety net. First, maintenance of effort rules prevent us from targeting limited resources toward the neediest populations as described above. Second, under health care reform, the federal government will shoulder almost the entire cost for states like Texas to expand their coverage from 27 percent of FPL up to whatever the federal mandated coverage level is, while California must continue to pay half the cost for populations below 106 percent. Thus, states that made little or no effort to expand coverage to low-income families are rewarded with either 82 percent or 91 percent federal funding, and states that did expand coverage, like California, are punished with costs that other states never incurred. Congress must either let states reduce their costs to live within limited resources or treat states equally by fully funding all Medicaid populations above a certain eligibility level.

Federal Medicaid rules also restrict California’s ability to modify its program to reduce costs by reducing provider rates, establishing utilization controls on benefits and requiring greater financial participation by Medicaid recipients. Once again, California has over the years expanded services beyond those offered by other states including In-Home Supportive Services (IHSS), adult day health care, adult dental, pharmacy, hospice, family planning, medical supplies and so on.  Over the past two years, California has reduced spending in virtually every program area, and, in more than a dozen lawsuits filed in federal court, judges have enjoined nearly every effort to reduce rates, modify optional benefits or limit eligibility. In these lawsuits, federal judges cite Medicaid rules requiring studies on the impact of those reductions on the communities served. The cumulative impact of these federal lawsuits contributes more than $1.4 billion toward our current year deficit alone.  Should the state fail to ultimately win these legal challenges, the impact on future budgets will be in the billions. Congress must authorize states to reduce costs by lowering provider rates, limiting benefits and increasing co-pays as needed to live within limited resources.

Treat States Equally in Medicaid Reimbursement Rates

The Federal Medical Assistance Percentage (FMAP), the formula that determines federal reimbursement rates for states in the Medicaid program, is flawed and forces California to subsidize the Medicaid costs of other states. The current formula relies on per capita income over other indices, particularly poverty rates. California’s relatively small number of high wage earners distorts our per capita income, masking the large number of low-income individuals we cover in Medicaid.  This flawed formula results in California receiving the lowest possible Medicaid reimbursement rate in the country.  In a 2003 U.S. Government Accountability Office report titled “Differences in Funding Ability among States Often are Widened,” California was specifically called out as one of three states in the nation with one of the largest populations in poverty, while ranking 49th in per-capita costs (the second leanest Medicaid program in the U.S.). Other large states have much higher reimbursement rates: Florida receives 56.83 percent; Michigan 58.10 percent; Ohio 60.79 percent; Pennsylvania 54.08 percent; Texas 60.53 percent. The bottom line is that this flawed FMAP formula is forcing California to subsidize Medicaid costs in other states. If California received an FMAP rate equal to the average of the 10 largest states, it would be 57 percent – a difference of $2.2 billion.

Fixing the flawed FMAP rate is even more urgent in the context of national health reform. If this flawed methodology is locked into the federal health reform bill, it will be impossible for California to meet the mandatory Medicaid expansion anticipated in either the House or Senate legislation.

Enhanced Federal Matching Rates for Providers Must Extend Beyond Primary Care

Both federal health reform proposals require states to expand Medicaid to new populations. For California, that means adding almost two million people to the program.  California will need to increase provider rates significantly in order to attract and retain providers willing to serve Medi-Cal patients.

This is not a theoretical problem. In 1990, a federal district court held that California’s Medi-Cal reimbursement rates for certain services were so low that they violated the equal access provision of the Medicaid Act, which requires states to set reimbursement rates at a level sufficient to enlist enough providers so that services are available equally to recipients and to the insured general population.  California lost its appeals in that case, and the judge ordered the state’s Department of Health Services to raise the rate to 80 percent of average billing. This decision dramatically affected dental rates and increased California’s dental expenditures from $167 million in 1990 to more than $800 million in 1995 – more than a four-fold increase. In large part due to California’s lower-than-average FMAP rate, our state has been forced to reduce other provider rates even further to balance our budget.

Ironically, while federal courts have ruled that California cannot reduce provider rates for optional benefits such as dental services or IHSS, they have ruled that completely eliminating those same optional benefits is perfectly legal. Adult dental was eliminated as part of our effort to close a $62 billion budget gap earlier this year. If states had more flexibility to reduce rates and benefits under Medicaid rules, we might have been able to save a portion of that program. Similarly, we reduced services to specified populations in our In-Home Supportive Services program, but federal court decisions have prevented those reductions from occurring. California is now faced with a decision to eliminate the entire IHSS program.

While some argue that California’s low provider rates are self-inflicted, the fact is that if California was not subsidizing other states through a notoriously flawed FMAP rate at a loss of more than $2.2 billion, we would have the resources to increase our Medi-Cal rates to more reasonable levels.

The House version of federal health reform does provide enhanced federal funding match for Medicaid provider rate, but it must be expanded to all provider groups providing outpatient services, not just primary care.  Without addressing the flawed FMAP rate or adequately funding an increase in provider rates, the mandated expansion of Medicaid coverage becomes an empty promise to millions of individuals as well as an unfunded mandate for California of more than $3 billion.

Paying California Funds it is Owed

Before adding new responsibilities on states to expand Medicaid coverage, the federal government should reimburse the amount that it owes states for past errors with other safety net programs. For example, California has paid for individuals in Medi-Cal while they awaited their Medicare disability determination. This error by the Social Security Administration was acknowledged in 2001. States have never been paid back. The amount owed to California on this issue alone is nearly $700 million.

Comprehensive health care reform is essential and long overdue.  As I wrote in October, I believe that the elements of successful reform have been proposed in one form or another by Congress, but additional work is required to ensure the reform package contains the necessary balance to ensure success.  Congress has a chance to make history with this legislation.  The current structure and the proposed expansion of Medicaid under health care reform are unsustainable for California. Governors in every part of the country have raised similar concerns.  California stands ready to help achieve successful health care reform, and I look forward to continuing to work with you as the final comprehensive bill is negotiated in Congress.

Sincerely,

Arnold Schwarzenegger

/cc:   Members of the California Congressional Delegation

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Hey, Health Legislators: Want to reduce Medicare spending? Reduce poverty!

Physicians and Health Care Reform, December 25, 2009

Dear Leader Reid and Speaker Pelosi

Provisions in the Senate and House health care reform bills propose to reallocate resources based on geographic differences in Medicare spending. While well intended, they will penalize providers who care for the poor and impair access for these vulnerable patients.

A reallocation of resources to lower-cost states has been endorsed by members of Congress from states with lower Medicare spending who believe that, by receiving less from Medicare, their states are currently being penalized for being “efficient.” However, it is not efficiency that accounts for their lower spending. It is less poverty and better health status.

The map shows (in blue) the ten states represented by members of Congress who have publicly endorsed reallocation plans based on geographic differences. Six neighboring states with similar characteristics are lightly shaded. On average, the Medicare spending in these 16 states is 20% less than in the rest of the country.

The “low-cost” states cover almost 40% of the land mass of the US but encompass only 14% of the population and only 3% of the African-American population. While they include many prominent cities, there are no major urban centers with the dense zones of poverty, as are found in Chicago, Los Angeles and New York. Nor are there broad bands of poverty, as are found in Louisiana, Mississippi, Alabama and southern Texas. Yet it is in “poverty ghettos” and broad “poverty regions” that health status is poorest and health care spending is greatest.

We must not confuse the added costs of caring for the poor with inefficiency in health care. The greatest “inefficiency” is poverty. The US will never slow the growth of health care spending unless it addresses the special needs of its most disadvantaged citizens. Health care reform should assist the hospitals and physicians who care for them. Unfortunately, a number of sections of the current bills do just the opposite.

Hospital re-admissions. Section 3025 of the Senate bill (Hospital Readmissions Reduction Program) and its companion Section 1151 of the House bill (Reducing Potentially Preventable Hospital Readmissions) would penalize hospitals that have higher rates of re admissions. While increased rates may reflect substandard care in some hospitals, the more common reason for higher rates is more patients who have complex diseases processes and little social support, most of whom are poor. Indeed, when fully adjusted for severity of disease, most inter-hospital differences in readmission rates disappear.

Value and efficiency. Because providers in counties where poverty is prevalent have higher per-beneficiary spending, they would be classified as “inefficient” under Section 1123 of the House bill (Payments for Efficient Areas), while providers in the 20% of counties that have the lowest Medicare expenditures would receive a 5% bonus. In like manner, Section 3001 of the Senate bill (Hospital Value-Based Purchasing Program) would reward hospitals that have lower per-beneficiary costs for certain defined conditions (acute MI, congestive health failure, pneumonia, etc.), although it is known that expenditures for such conditions are much greater among low-income patients. I am hopeful that the Senate bill will not include the Finance Committee’s call for penalties for physicians whose resource use is in the highest decile, which would mainly affect those whose practices include poor patients with multiple comorbidities.

IOM study of geographic variation.
The same logic pattern that has been applied to readmission policy and to “value-based purchasing” exists in Sections 1159 and 1160 of the House bill, which instructs the Institute of Medicine to develop payment policies based on geographic differences in health care, with the assumption that differences in the Dartmouth Atlas are relevant to cost containment. Yet MedPAC has shown that, even without adjusting for income, much of the variation disappears with adjustment for health status. But even though the bill instructs the IOM to consider income and other social determinants, there are no standards that can be applied nationally to adjust adequately for these factors. On the other hand, there are partial remedies for their effects, such as the wider use of interpreters and transitional care coordinators, as Section 1151(8) of the House bill proposes to support.

Efficiency and value are important goals, but variation in their geographic distribution is principally a reflection of variation in poverty and the prevalence of disease. That should not be a surprise. We all know that poverty varies geographically, and we know that the care of the poor is expensive. If health care costs are to be constrained, it must be through addressing the needs of low-income patients; not through penalizing the providers who care for them.

Respectfully,

Also see
Crusading Professor Challenges Dartmouth Atlas On Claims Of Wasteful Health Care Spending
Unbiased studies dispute Obama, say more healthcare gives better outcomes.

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Cuts to KPFA’s “Flashpoints” Spark Continuing Outrage

December 24th update from Chandra Hauptman,  a member of the KPFA Local Station Board

This time of year should be a happy time for some people but, at KPFA, some staff are being fired and others are having their hours reduced, in an indiscriminate way. The General Manager (GM) appears to be unfairly targeting programs that she does not support, such as Flashpoints. She states publicly that she is making 20% cuts across the board but this has not happened. And, at the same time, she is making new hires, such as the new development director, who is the former GM of KPFK, Sean Heitkemper. Below is an article that Henry Norr submitted to the Berkeley Daily Planet on behalf of Flashpoints and will probably be published in tomorrow’s edition of the paper.  (It wasn’t)  There is also a hit piece against Flashpoints, rife with many errors, in the East Bay Express.

The new Local Station Board (LSB)  chair and officers have repeatedly requested that Lemlem meet with us to discuss the cuts but she has not replied to our requests. Nor has she met with the staff to discuss the cuts or explain her rationale (if she has any) as to how she determined what cuts to make.

Further, the cuts made so far account for only 1/4 of the savings that need to be made at KPFA, as mandated by last year’s PNB, and to balance the KPFA budget.

————————————————————————

Cuts to KPFA’s Flashpoints Spark Outrage

By HENRY NORR

In the face of mounting deficits, KPFA this month began laying off staff. The cuts come as no surprise; in fact, they’re overdue, considering that the station has been running in the red for several years, in defiance of Local Station Board and Pacifica National Board mandates to bring expenses into line with income. Anger and protest were probably inevitable when the cuts finally came. But by implementing them in an abrupt and seemingly insensitive way, ignoring provisions of the paid staff’s union contract, and loading what looks like a disproportionate share of the pain on one program – Flashpoints – management has succeeded in turning a tough situation into yet another full-fledged crisis for the station.

The first victim of this new cutback campaign was Eric Klein, Flashpoints’ technical producer and engineer, whose half-time position was eliminated with no advance notice on December 7; Dennis Bernstein, the show’s host, wasn’t informed until he went looking for Klein an hour before airtime. After co-host Nora Barrows-Friedman e-mailed station manager Lemlem Rijio seeking an explanation and making the case that the show requires a technical producer, Rijio invited her to “share her concerns” in person. When they met on December 9, Barrows-Friedman argued (according to an account she posted on Facebook) that it was “unreasonable” to expect her to absorb Klein’s work on top of her other responsibilities, whereupon Rijio “casually” informed her that her hours were being cut in half, from 40 to 20 per week, effective immediately.

Then, a few days later, Robert Knight, a New York-based journalist who delivers a short news analysis (“The Knight Report”) at the top of the Flashpoints hour most days, received a letter by FedEx informing him that his contract would expire on December 28.

Knight is not a member of the union that represents KPFA’s paid staff, Communications Workers of America Local 9415, but Klein and Barrows-Friedman are. According to the union’s contract, should staff cuts become necessary, layoffs are generally supposed to be based on seniority. Klein didn’t rank high on the seniority list, but Barrows-Friedman has worked at the station considerably longer than other staffers whose hours have not been reduced. The contract also specifies that “Those who will be laid off shall be notified as soon as possible, normally thirty (30) working days, but in no case less that fifteen (15) working days before such layoff is to take place,” yet neither Klein nor Barrows-Friedman got so much as a day’s notice – even though management has had literally years of advance warning about its budget problems.

Treating employees this way may be par for the course in the corporate world nowadays (see the new George Clooney movie “Up in the Air”), but even aside from contractual requirements, I think most KPFA subscribers expect better of their station.

To Flashpoints’ staff and fans (including me), the recent moves raise a larger issue: has management singled the program out for particularly severe cutbacks? When, after six days of silence, Rijio finally offered an explanation of the cuts in an e-mail message to subscribers and a recorded message now played incessantly on the air, she claimed that “Each department at the station – Programming, Operations, Development, and Administration – is being cut by 20 percent” and “All public affairs programs are being cut across the board and reductions have been made to bring each show’s cost into line with its income.”

So far, Rijio has not responded to requests for details from listeners and members of the station board. But information gleaned from staffers and data provided to the board when it considered the station’s budget last summer cast serious doubt on her claim of even-handedness. Certainly other public-affairs shows have also suffered cuts, but typically in the range of 14-18 percent, measured in paid staff hours.

In the case of Flashpoints, however, with the elimination of Klein’s job, the reduction in Barrows-Friedman’s hours, and the cancellation of Knight’s contract, staffing has been slashed more than 40 percent, from approximately 135 hours a week to 80 per week. (Bernstein works full-time, while “roving producer” Miguel Gavilan Molina and now Barrows-Friedman are each paid for 20 hours per week. Another full-time position was eliminated two years ago.) To the surviving staff, the cuts amount to a deliberate attempt to destroy the show. “There is no way we can survive at this [reduced] level,” Barrows-Friedman wrote on her Facebook page.

That prospect has sparked deep concern among Flashpoint’s intensely loyal listeners, who value the show for its outspoken radicalism – so different from the NPR-like tone of pseudo-objectivity maintained on most of KPFA’s news and public-affairs programming – and its focus on reporting the grassroots realities in hard-pressed communities rarely heard from in most of our media – Palestine above all (including Barrows-Friedman’s moving reports from her frequent trips to Gaza and the West Bank), but also Haiti, New Orleans, immigrant and native American communities, and recently Honduras.

As word of the cutbacks spread, protest flared. Professors Peter Phillips and Mickey Huff of Project Censored and the Media Freedom Foundation (which just weeks ago gave the Flashpoints crew its lifetime achievement award) published a denunciation of the cuts, complete with supporting statements from such left luminaries as Barbara Lubin and Richard Becker. Arab-American community organizer Eyad Kishawi publicly threatened to organize a boycott of the station. Michael Parenti issued a call to a demonstration in front of the station last Thursday.

And other prominent radical intellectuals who have appeared on the show – including Howard Zinn, Dahr Jamail, Anthony Arnove, and Richard Falk – signed an open letter declaring that they will “refuse to be interviewed or to allow prior work to be aired, or to give permission for our books, CDs, DVDs and other work to be used as premiums during KPFA’s fund drives” until Barrows-Friedman is reinstated to a full-time position and Flashpoints provided with a technical producer.”

So far, there’s no indication that management will back down from its plans, but Flashpoints’ staff and supporters seem determined not to go without a fight.

To express support for Flashpoints, write to general manager Lemlem Rijio at gm@kpfa.org <mailto:gm@kpfa.org> and turn out for the first meeting of the new LSB, now set for 7 p.m. on Monday, Jan. 11, 2010 (disregard dates announced earlier) at the Humanist Hall, 390 27th St. (near Telegraph), Oakland.

Henry Norr was recently re-elected to KPFA’s Local Station Board

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Michael Parenti writes:

Nora Barrows Friedman has seniority over at least a dozen more recent and less experienced staff people. She has done an outstanding job at Flashpoints, showing a special dedication and talent. She has top professional qualifications and standards, tested by time and performance. She and Dennis Bernstein raise more money for the station than just about any other program. Rather than being a drain on the KPFA budget, Nora is an asset.   Taking her talents and contributions into account, one is forced to conclude that Nora is being cut for reasons that can only be political. Once again the KPFA management, under the direction of Lemlem Rijio, a person of determinedly conventional proclivities, is making a decision that is politically inspired. I can  myself testify to Rijio’s ideologically motivated inclination to deny access to the airwaves to someone whose politics are to the left of her own or whose politics are just too controversial for her. She and her confederates are working hard to turn KPFA into NPR. In their attempt to assassinate Nora and finish off Flashpoints, they don’t know what they are getting themselves into.

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See earlier article “KPFA’s program “Flashpoints” is under attack by station management.”

See video of a December 17  rally for “Flashpoints” here and here.

Read a MWC News Open Letter to KPFA management on “Flashpoints.”

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Unbiased studies dispute Obama, say more healthcare gives better outcomes

The Obama administration and health policy analysts advocating strong cost containment talk about how much money the nation wastes on needless tests and futile procedures, particularly in Medicare. They particularly cite hospitals that spend the most on end-of-life care but seem to have no better results than hospitals spending much less.  Their data comes from a decades-long study, the Dartmouth Atlas of Health Care.  But Dartmouth’s approach counts only the patients who die,so the patients who who respond to additional care are not counted. Indeed a study of heart failure patients, both living and dead, showed the hospital that spent the most had one-third fewer deaths after six months of an initial hospital stay.  This rush for “efficiency” could result in rationing.  Also see Crusading Professor Challenges Dartmouth Atlas On Claims Of Wasteful Health Care Spending.

New York Times, December 23, 2009

Months to Live – U.C.L.A. Medical Center at Heart of End-of-Life Debate

Weighing Medical Costs of End-of-Life Care
By REED ABELSON

A successful outcome

Dr. Tamara Horwich with Salah Putrus, right, and his brother-in-law, Fouad Abdulla. A change of drugs helped Mr. Putrus avoid a heart transplant.

LOS ANGELES — The Ronald Reagan U.C.L.A. Medical Center, one of the nation’s most highly regarded academic hospitals, has earned a reputation as a place where doctors will go to virtually any length and expense to try to save a patient’s life.“If you come into this hospital, we’re not going to let you die,” said Dr. David T. Feinberg, the hospital system’s chief executive.

Yet that ethos has made the medical center a prime target for critics in the Obama administration and elsewhere who talk about how much money the nation wastes on needless tests and futile procedures. They like to note that U.C.L.A. is perennially near the top of widely cited data, compiled by researchers at Dartmouth, ranking medical centers that spend the most on end-of-life care but seem to have no better results than hospitals spending much less.

Listening to the critics, Dr. J. Thomas Rosenthal, the chief medical officer of the U.C.L.A. Health System, says his hospital has started re-examining its high-intensity approach to medicine. But the more U.C.L.A.’s doctors study the issue, the more they recognize a difficult truth: It can be hard, sometimes impossible, to know which critically ill patients will benefit and which will not.

That distinction tends to get lost in the Dartmouth end-of-life analysis, which considers only the costs of treating patients who have died. Remarkably, it pays no attention to the ones who survive.

Take the case of Salah Putrus, who at age 71 had a long history of heart failure.

After repeated visits to his local hospital near Burbank, Calif., Mr. Putrus was referred to U.C.L.A. this year to be evaluated for a heart transplant.

Some other medical centers might have considered Mr. Putrus too old for the surgery. But U.C.L.A.’s attitude was “let’s see what we can do for him,” said his physician there, Dr. Tamara Horwich.

Indeed, Mr. Putrus recalled, Dr. Horwich and her colleagues “did every test.” They changed his medicines to reduce the amount of water he was retaining. They even removed some teeth that could be a potential source of infection.

His condition improved so much that more than six months later, Mr. Putrus has remained out of the hospital and is no longer considered in active need of a transplant.

Because Dartmouth’s analysis focuses solely on patients who have died, a case like Mr. Putrus’s would not show up in its data. That is why critics say Dartmouth’s approach takes an overly pessimistic view of medicine: if you consider only the patients who die, there is really no way to know whether it makes sense to spend more on one case than another.

According to Dartmouth, Medicare pays about $50,000 during a patient’s last six months of care by U.C.L.A., where patients may be seen by dozens of different specialists and spend weeks in the hospital before they die.

By contrast, the figure is about $25,000 at the Mayo Clinic in Rochester, Minn., where doctors closely coordinate care, are slow to bring in specialists and aim to avoid expensive treatments that offer little or no benefit to a patient.

“One of them costs twice as much as the other, and I can tell you that we have no idea what we’re getting in exchange for the extra $25,000 a year at U.C.L.A. Medical,” Peter R. Orszag, the White House budget director and a disciple of the Dartmouth data, has noted. “We can no longer afford an overall health care system in which the thought is more is always better, because it’s not.”

By some estimates, the country could save $700 billion a year if hospitals like U.C.L.A. behaved more like Mayo. High medical bills for Medicare patients’ final year of life account for about a quarter of the program’s total spending.

Under the House health care legislation pending in Congress, the Institute of Medicine would conduct a study of the regional variations in Medicare spending to try to determine how to reward hospitals like Mayo for providing more cost-effective care. Hospitals identified as high-cost centers might even be penalized, perhaps receiving lower payments from the government. The Senate bill calls only for studies of Medicare spending variations, so it will be up to House-Senate negotiators to resolve the matter in the final legislation.

That prospect worries Dr. Rosenthal and his U.C.L.A. colleagues, who say that unless the distinction can be clearly drawn between excellence and excess in medical care, efforts to cut wasteful spending could be little more than blunt rationing.

“There’s a real risk of doing harm here — real harm,” he said.

Indeed, U.C.L.A. and five other big California medical centers recently published their own research results with a striking conclusion: for heart failure patients, the hospitals that spend the most seem to save the most lives.

Testing the Thesis

Dr. Rosenthal remembers a pivotal meeting back in 2005 when he and officials at the other California hospitals met with Dartmouth researchers to discuss their findings.

“We were inspired,” Dr. Rosenthal recalled, saying he found himself agreeing with much of the criticism aimed at his institution for its aggressive approach.

The Dartmouth analysis prompted Dr. Rosenthal to seek further data. He collaborated with colleagues at U.C.L.A. and four other medical centers affiliated with the University of California system, as well as Cedars-Sinai Medical Center in Los Angeles, to design a study of why some hospitals spent so much more on dying patients than others and what they got from their efforts.

To focus their analysis, the researchers chose to look only at a single category of patients: elderly people with heart failure. The dead would be counted, as Dartmouth does, but so would the living.

What they found seemed to contradict the Dartmouth thesis. The hospital that spent the most on heart failure patients had one-third fewer deaths after six months of an initial hospital stay.

The researchers did not disclose which of the six hospitals had the best results. But for the doctors involved, the implications were clear: spending more can sometimes save lives.

“It doesn’t look like it is all waste,” said Dr. Michael K. Ong, a U.C.L.A. internist and health policy researcher who was one of the authors of the study, which was recently published in the peer-reviewed medical journal Circulation: Cardiovascular Quality and Outcomes.

Another of the authors was Dr. Michael A. Gropper, a critical care specialist at the University of California, San Francisco. The Dartmouth research has consistently portrayed his hospital as much more cost-effective in end-of-life care than U.C.L.A. But the California study gave Dr. Gropper a new perspective. “There’s no doubt that additional investments may be worthwhile,” he said.

Some other experts take a similar view.

“If you only look at the failures, you miss the benefit,” said Dr. Peter Bach, an epidemiologist at Memorial Sloan-Kettering Cancer Center in Manhattan, who has examined the medical histories of cancer patients who have died, including women with early-stage breast cancer.

“No one in their right mind would tell you not to treat these women,” he said, “even though some of them will die.”

The California researchers say they also found much less variation among the six hospitals than the Dartmouth data would indicate after they took account of significant differences among the patients the hospitals treat, including the many patients who come to U.C.L.A. for a transplant, who are, by definition, extraordinarily sick.

Over all, the California researchers found that the variation in spending among the six hospitals was significantly less than the level reported by Dartmouth. When looking at all patients hospitalized for heart failure, for example, the variation in use of resources was 27 to 44 percent lower than when they looked at only the patients who died. And that corresponded with a separate, informal analysis of Medicare spending by the Congressional Budget Office, which after adjusting for the severity of illness in patients and differences in prices among regions, found less striking variations in spending.

A report from the Medicare Payment Advisory Commission released this month also found less variation.

Dr. Rosenthal, who argues that there are also fundamental socioeconomic differences between patients in the poorer sections of Los Angeles and those in the Mayo Clinic’s small and solidly middle-class hometown of Rochester, Minn., was co-author of an op-ed article in The Los Angeles Times last summer making that case. “Health care costs are significantly higher in areas of poverty,” he wrote.

The Dartmouth researchers tend to dismiss such counterarguments, saying their conclusion — higher spending does not necessarily buy better patient outcomes — is backed by decades of research. While more spending may have yielded benefits among these six hospitals, a Dartmouth official said, hospitals generally have not shown they deliver better results when they provide more care.

Still, Dr. Elliott S. Fisher, one of the lead investigators at the Dartmouth Atlas Project, acknowledged that the California researchers’ analysis might be better able than Dartmouth’s to identify cases in which more intensive care might prove beneficial. “Sometimes more medical care is better,” he said, “but the question is when.”

He says he believes that cost-effective hospitals with good medical outcomes should be financially rewarded for their efforts and results. But he says that public policy aimed primarily at penalizing high spenders would not be the solution. “Simply reducing their prices,” he said, “won’t fix anything.”

‘Hail Mary Pass’

Just how hard it is to determine who will most benefit from expensive care is clear in the case of George Klidaras, a 49-year-old stay-at-home father of two who arrived by ambulance late at night in mid-June in need of a heart transplant.

His age might have made him a good candidate for the procedure. And so might his overall state of health. He was lucidly answering doctors’ questions when he arrived. And although he had suffered a stroke in his early 40s and had a chronic heart condition, as recently as March, Mr. Klidaras had been living a relatively normal life.

By the time Mr. Klidaras arrived at U.C.L.A., though, his heart had weakened significantly. In the preceding weeks he had already received a pacemaker and defibrillator, and his local cardiologist decided it was time to ask U.C.L.A. — a highly regarded transplant center and regional magnet for cases beyond the skill of many other hospitals — to tackle his case.

Coming to U.C.L.A. “was our Hail Mary pass,” said his wife, Andra, a postal worker.

Mr. Klidaras’s lungs were damaged from a pulmonary embolism, and he had a high white-blood-cell count — a possible sign of infection. So the first order of business was to try to determine the source of infection so he would be well enough to undergo surgery.

The flurry of activity in the intensive care unit was “overwhelming,” Ms. Klidaras recalled. Her husband saw a dizzying array of specialists, including an infectious disease doctor and a dermatologist after he developed a rash. “They gave him every antibiotic and every test,” she said.

Mr. Klidaras spent nearly five weeks in the intensive care unit, at a cost of about $10,000 a day and a total cost in the neighborhood of $300,000. And the doctors never could stabilize his condition enough for the transplant surgery.

After the doctors told Ms. Klidaras there was nothing more they could do, she told them not to resuscitate him if his heart stopped beating on its own. He died July 20.

“Until the last week, I believed he was going to make it,” Mrs. Klidaras said. “I wanted them to do everything they could to save him.”

Someone giving the strictest of reading to the Dartmouth doctrine might argue that, given the outcome, the effort devoted to the Klidaras case was a futile expenditure of time and money.

Family Struggles

For U.C.L.A.’s doctors, deciding when enough is enough is not ultimately their call. Even when they recommend against a patient’s getting another procedure or test, it may be the patients and families who cannot let go.

When doctors, patients and families have trouble agreeing when to stop medical treatment, the person typically called in is Dr. Neil S. Wenger, a practicing physician who also serves as director of the U.C.L.A. Health System Ethics Center.

“For someone to die who is in the clutches of medical care, decisions have to be made,” Dr. Wenger said. “Otherwise, you don’t get to die a reasonable death.”

The decisions may include turning off life-prolonging technologies that were put in place when there was still hope — the dialysis machine to keep the kidneys functioning, the ventilator for the lungs — but now may be the only thing keeping the patient alive.

Dr. Wenger often sees difficult family dynamics. He spent more than an hour recently counseling the relatives of a woman with a traumatic head injury who was unlikely to ever regain consciousness. When a family member suggested stopping treatment, a sibling protested, saying, “You’re killing my sister.” Such intense emotions are “extremely common,” Dr. Wenger said.

Doctors, too, often have trouble letting go.

Many acknowledge that the current payment system encourages more care, because it rewards doctors for providing additional tests and procedures — not for spending the hours sometimes necessary to guide patients and families through the long, difficult process of deciding when to stop.

“The more tubes you put in, the more you get paid,” said Dr. Patrick T. Dowling, chairman of the department of family medicine at U.C.L.A.

But the bigger challenge may be changing the “we’re not going to let you die” culture at places like U.C.L.A.

Doctors at other leading medical centers, like the one at the University of California, San Francisco, say one big difference among institutions is how doctors and nurses talk with patients and families about their choices.

“It’s a cultural thing,” said Dr. Gropper. He says the doctors and nurses at the San Francisco medical center take the time to keep talking with patients’ families and even other doctors when they seem reluctant to end treatments. “You chip away at them,” he said.

At U.C.L.A., such palliative care — treatment devised to relieve pain and make patients more comfortable, particularly at the end of life — was essentially an afterthought until just a few years ago, when an internal task force recommended that the hospital add it to its many other specialties. The hospital now has a formal unit devoted to palliative care and is building up its expertise in the field. Residents, in training to be doctors, are being taught how better to discuss these issues with patients and their families.

Some doctors are resistant, particularly those with patients who had hoped for a transplant but were removed from the list when it became clear they had no realistic chance of recovery.

Dr. Bruce Ferrell, who helps lead the palliative care program, recalls a patient two years ago who got a liver transplant but developed serious complications afterward and remained in the hospital for a year. “He had never, ever been told that he would have to live with a ventilator and dialysis,” Dr. Ferrell said. “He was never told that this is as good as it’s going to get.”

Dr. Ferrell talked with the patient about whether he might want to leave the intensive-care unit to go home and receive hospice care. But when the surgeon overseeing the case found out, he was furious.

“We do not use the h-word” — hospice — “on my patients,” the surgeon told Dr. Ferrell. “Don’t ever come back.”

The patient chose to leave.

But lately, Dr. Ferrell says, more of the transplant surgeons appreciate the value of what he is trying to do.

“We’re not the bad guys,” he said. “We offer options.”

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Nurses Say Senate Health Bill Entrenches Chokehold of Insurance Giants

The Nation, December 21, 2009

Nurses Say Senate Bill Entrenches Chokehold of Insurance Giants

posted by John Nichols

Want to know what’s wrong — really wrong — with the health-care “reform” bill being pushed through the Senate by Majority Leader Harry Reid?   Ask a nurse.

“It is tragic to see the promise from Washington this year for genuine, comprehensive reform ground down to a seriously flawed bill that could actually exacerbate the health-care crisis and financial insecurity for American families, and that cedes far too much additional power to the tyranny of a callous insurance industry,” says National Nurses Union co-president Karen Higgins, RN.

“Sadly,” adds Higgins, “we have ended up with legislation that fails to meet the test of true health-care reform, guaranteeing high quality, cost effective care for all Americans, and instead are further locking into place a system that entrenches the choke-hold of the profit-making insurance giants on our health. If this bill passes, the industry will become more powerful and could be beyond the reach of reform for generations.”

The 150,000-member NNU, the largest union and professional organization of registered nurses in the U.S., condemned Reid’s bill — which is expected to gain Senate approval this week — as a deeply flawed measure that grants too much power to the nation’s largest private and for-profit insurers.

Specifically, the union that takes in the powerful California Nurses Association, cited 10 fundamental flaws in the Senate bill:

  • 1. The individual mandate forcing all those without coverage to buy private insurance, with insufficient cost controls on skyrocketing premiums and other insurance costs.
  • 2. No challenge to insurance company monopolies, especially in the top 94 metropolitan areas where one or two companies dominate, severely limiting choice and competition.
  • 3. An affordability mirage. Congressional Budget Office estimates say a family of four with a household income of $54,000 would be expected to pay 17 percent of their income, $9,000, on healthcare exposing too many families to grave financial risk.
  • 4. The excise tax on comprehensive insurance plans which will encourage employers to reduce benefits, shift more costs to employees, promote proliferation of high-deductible plans, and lead to more self-rationing of care and medical bankruptcies, especially as more plans are subject to the tax every year due to the lack of adequate price controls. A Towers-Perrin survey in September found 30 percent of employers said they would reduce employment if their health costs go up, 86 percent said they’d pass the higher costs to their employees.
  • 5. Major loopholes in the insurance reforms that promise bans on exclusion for pre-existing conditions, and no cancellations for sickness. The loopholes include:
  • · Provisions permitting insurers and companies to more than double charges to employees who fail “wellness” programs because they have diabetes, high blood pressure, high cholesterol readings, or other medical conditions.
  • · Insurers are permitted to sell policies “across state lines”, exempting patient protections passed in other states. Insurers will thus set up in the least regulated states in a race to the bottom threatening public protections won by consumers in various states.
  • · Insurers can charge four times more based on age plus more for certain conditions, and continue to use marketing techniques to cherry-pick healthier, less costly enrollees.
  • · Insurers may continue to rescind policies for “fraud or intentional misrepresentation” – the main pretext insurance companies now use to cancel coverage.
  • 6. Minimal oversight on insurance denials of care; a report by the California Nurses Association/NNOC in September found that six of California’s largest insurers have rejected more than one-fifth of all claims since 2002.
  • 7. Inadequate limits on drug prices, especially after Senate rejection of an amendment, to protect a White House deal with pharmaceutical giants, allowing pharmacies and wholesalers to import lower-cost drugs.
  • 8. New burdens for our public safety net. With a shortage of primary care physicians and a continuing fiscal crisis at the state and local level, public hospitals and clinics will be a dumping ground for those the private system doesn’t want.
  • 9. Reduced reproductive rights for women.
  • 10. No single standard of care. Our multi-tiered system remains with access to care still determined by ability to pay. Nothing changes in basic structure of the system; healthcare remains a privilege, not a right.

In fairness to Reid and his fellow Senate Democrats, most of the flaws in their bill are also present in the House bill. And that’s the really depressing part.

While members of the Obama administration and key senators claim that the legislation should be enacted because it seeks to expand coverage, places new regulations on insurers and might be improved in the House-Senate conference committee, NNU co-president Deborah Burger, RN, offers a more realistic diagnosis:

“Those wishful statements ignore the reality that much of the expanded coverage is based on forced purchase of private insurance without effective controls on industry pricing practices or real competition and gaping loopholes in the insurance reforms.”

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Iraq vet: Our real enemy is not the ones living in a distant land, they are right here in front of us. Racism is their weapon

Our real enemy is not the ones living in a distant land,
they are right here in front of us.  Racism is their weapon

Iraq vet talks on class, race, and exploitation

Iraq vet talks on class, race, and exploitation

“Our real enemy is not the ones living in a distant land whose names or policies we don’t understand; The real enemy is a system that wages war when it’s profitable, the CEOs who lay us off our jobs when it’s profitable, the Insurance Companies who deny us Health care when it’s profitable, the Banks who take away our homes when it’s profitable. Our enemies are not several hundred thousands away. They are right here in front of us.”

How do the the rulers get away with it?  This soldier is clear:

“Racism is a vital weapon employed by this government. It is a more important weapon than a rifle, a tank, a bomber or a battleship.” “They  need a public who’s willing to send soldiers into harm’s way, they need soldiers willing to kill and be killed without question. They can spend millions on a single bomb, but that bomb only becomes a weapon when the ranks in the military are willing to follow orders to use it.”

“And the ruling class, the billionaires who profit from human suffering, who care only about expanding their wealth and controlling the world economy, understand that their power lies only in their ability to convince us that war, oppression, and exploitation are in our interest. They understand that their wealth is dependent on their ability to convince the working class to die to control the market of another country. And convincing us to kill and die is based on their ability to make us think that we are somehow superior.

“Poor and working people in this country are sent to kill poor and working people in another country, to make the rich richer. Without racism, soldiers would realize they have more in common with the Iraqi people than they do with the billionaires that send us to war. .. Our enemies are right here at home, and if we organize and fight with our sisters and brothers we can stop this war, we can stop this government, and we can create a better world. “

Mike Prysner is from IVAW, Iraq Veterans Against the War. This speech was from Winter Soldier in March 22, 2008. You can view his entire testimony here, which spells out the role of racism, and how, under a veneer of anti-racsm, the army and and civilian society are now pushing an onslaught of racism which is both homicidal and suicidal.

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Physicians for Single-Payer Healthcare Call for Defeat of Senate Health Bill

Physicians for a National Health Program Press Release, December 22, 2009

Pro-single-payer physicians call for defeat of Senate health bill

Legislation ‘would bring more harm than good,’ group says

For Immediate Release
Dec. 22, 2009

Contact:
David Himmelstein, M.D.
Steffie Woolhandler, M.D., M.P.H.
Oliver Fein, M.D.
Mark Almberg, PNHP, (312) 782-6006, mark@pnhp.org

A national organization of 17,000 physicians who favor a single-payer health care system called on the U.S. Senate today to defeat the health care legislation presently before it and to immediately consider the adoption of an expanded and improved Medicare-for-All program.

While noting that the Senate bill includes some “salutary provisions” like an expansion of Medicaid, increased funding for community clinics and the curbing of some of the worst practices of the private insurance industry, the group says the negatives in the bill outweigh the positives.

The negatives, the group says, include the individual mandate requiring that people buy private insurance policies, large government subsidies to private insurers, new restrictions on abortion, the unfair taxing of high-cost health plans, and cuts of $43 billion in Medicare payments to safety-net hospitals. Moreover, at least 23 million people will remain uninsured when the plan finally takes effect, they said.

“We have concluded that the Senate bill’s passage would bring more harm than good,” the group said in a statement signed by its president, Dr. Oliver Fein, and two co-founders, Drs. David Himmelstein and Steffie Woolhandler.

Addressing the Senate in an open letter, they write: “We ask that you defeat the bill currently under debate, and immediately move to consider the single-payer approach – an expanded and improved Medicare-for-All program – which prioritizes the advancement of our nation’s health over the enhancement of private, profit-seeking interests.”

The full statement appears below.

To the Members of the U.S. Senate:

It is with great sadness that we urge you to vote against the health care reform legislation now before you. As physicians, we are acutely aware of the unnecessary suffering that our nation’s broken health care financing system inflicts on our patients. We make no common cause with the Republicans’ obstructionist tactics or alarmist rhetoric. However, we have concluded that the Senate bill’s passage would bring more harm than good.

We are fully cognizant of the salutary provisions included in the legislation, notably an expansion of Medicaid coverage, increased funds for community clinics and regulations to curtail some of private insurers’ most egregious practices. Yet these are outweighed by its central provisions – particularly the individual mandate – that would reinforce private insurers’ stranglehold on care. Those who dislike their current employer-sponsored coverage would be forced to keep it. Those without insurance would be forced to pay private insurers’ inflated premiums, often for coverage so skimpy that serious illness would bankrupt them. And the $476 billion in new public funds for premium subsidies would all go to insurance firms, buttressing their financial and political power, and rendering future reform all the more difficult.

Some paint the Senate bill as a flawed first step to reform that will be improved over time, citing historical examples such as Social Security. But where Social Security established the nidus of a public institution that grew over time, the Senate bill proscribes any such new public institution. Instead, it channels vast new resources – including funds diverted from Medicare – into the very private insurers who caused today’s health care crisis. Social Security’s first step was not a mandate that payroll taxes which fund pensions be turned over to Goldman Sachs!

While the fortification of private insurers is the most malignant aspect of the bill, several other provisions threaten harm to vulnerable patients, including:

  • The bill’s anti-abortion provisions would restrict reproductive choice, compromising the health of women and adolescent girls.
  • The new 40 percent tax on high-cost health plans – deceptively labeled a “Cadillac tax” – would hit many middle-income families. The costs of group insurance are driven largely by regional health costs and the demography of the covered group. Hence, the tax targets workers in firms that employ more women (whose costs of care are higher than men’s), and older and sicker employees, particularly those in high-cost regions such as Maine and New York.
  • The bill would drain $43 billion from Medicare payments to safety-net hospitals, threatening the care of the 23 million who will remain uninsured even if the bill works as planned. These threatened hospitals are also a key resource for emergency care, mental health care and other services that are unprofitable for hospitals under current payment regimes. In many communities, severely ill patients will be left with no place to go – a human rights abuse.
  • The bill would leave hundreds of millions of Americans with inadequate insurance – an “actuarial value” as low as 60 percent of actual health costs. Predictably, as health costs continue to grow, more families will face co-payments and deductibles so high that they preclude adequate access to care. Such coverage is more akin to a hospital gown than to a warm winter coat.

Congress’ capitulation to insurers – along with concessions to the pharmaceutical industry – fatally undermines the economic viability of reform. The bill would inflate the already crushing burden of insurance-related paperwork that currently siphons $400 billion from care annually. According to CMS’ own projections, the bill will cause U.S. health costs to increase even more rapidly than presently, and budget neutrality is to be achieved by draining funds from Medicare and an accounting trick – front-loading the new revenues while delaying most new coverage until 2014. As homeowners seduced into balloon mortgages have learned, pushing costs off to the future is neither prudent nor sustainable.

We ask that you defeat the bill currently under debate, and immediately move to consider the single-payer approach – an expanded and improved Medicare-for-All program – which prioritizes the advancement of our nation’s health over the enhancement of private, profit-seeking interests.

Oliver Fein, M.D., President
David U. Himmelstein, M.D., Co-founder
Steffie Woolhandler, M.D., M.P.H., Co-founder
Physicians for a National Health Program

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Physicians for a National Health Program (www.pnhp.org) is an organization of 17,000 doctors who advocate for single-payer national health insurance. To contact a physician-spokesperson near you, visit www.pnhp.org/stateactions or call (312) 782-6006.

Physicians for a National Health Program
29 E Madison Suite 602, Chicago, IL 60602 ¤ Find us on a map
Phone (312) 782-6006 | Fax: (312) 782-6007 | email: info@pnhp.org
© PNHP 2009

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Appeals Court accuses California State lawyers of deception to ram through Medi-Cal cuts.

San Francisco and Sacramento Gray Panthers are plaintiffs in this suit against the State of California for cutting its payments to Medi-Cal doctors, dentists, pharmacists, clinics, and adult day health centers, even though California’s payments to these providers and the ratio of providers to patients are among the lowest in the country.  It is already difficult for Medi-Cal patients to find doctors, yet the California was willing to go to the US Supreme Court to cut its payments by 10% and make the situation even worse.  Now the State has been caught in deceptive practices in the courtroom.  Read more about this case from CDCAN, the California Disability Community Action Network, and here.

San Francisco Chronicle, December 22, 2009

Court accuses state lawyers of lying

Bob Egelko, Chronicle Staff Writer

(12-21) 17:58 PST SAN FRANCISCO — A federal appeals court bluntly accused the Schwarzenegger administration and state Attorney General Jerry Brown’s office on Monday of lying about its defense of cuts in Medi-Cal fees.

Lawyers in Brown’s office committed a “clear violation” of State Bar rules that prohibit attorneys from misleading judges, raising doubts about the credibility of any future statements they make on behalf of state health officials, said the Ninth U.S. Circuit Court of Appeals in San Francisco.

The court said health officials, through their lawyers, had lied about why the state waited more than a year to make its current arguments in the case.

Brown’s office said the court’s comments were “based on a misunderstanding” that the state’s lawyers will try to clear up in the next few days.

In July, the court ruled that the state had violated federal law with 2008 legislation that cut by 10 percent the rates it paid to doctors, dentists, pharmacists, clinics and adult day health care centers serving 7.1 million poor people in the Medi-Cal program.

The ruling required the state to reimburse health care providers hundreds of millions of dollars that the state cut from their fees from July 2008 to March 2009, when a new law took effect setting rates at 1 to 5 percent below July 2008 levels.

The court said state health officials and legislators were simply trying to save money and did not study how the cuts would affect Medi-Cal patients, as federal law requires.

On Monday, the same three-judge panel rejected the state’s claim that the court lacked authority to prohibit the 10 percent rate cuts in July because the law requiring those cuts had expired March 1. The court said it still could order reimbursement, which the state has yet to pay.

The allegations of lying involved the state’s failure to cite the change in reimbursement rates in arguments before the appeals court issued its July ruling. The court noted that the modified reductions were approved in September 2008 and took effect in March, but the state did not mention that fact, or argue that it was important, until its recent appeal that sought to set the July decision aside.

State officials explained that their lawyers became aware of the legal issue only recently while preparing a potential U.S. Supreme Court appeal, the court said Monday.

In fact, the panel said, the state had already filed Supreme Court papers June 1, in an earlier Medi-Cal case, that discussed the latest change in rates and how it affected the appeals court’s jurisdiction over the issue.

Health officials “feigned ignorance” of the facts they had already presented to the Supreme Court, the appeals court said. Citing State Bar rules that forbid attorneys to mislead judges by making false statements, the court said state lawyers’ “clear violation … gives us pause about accepting the veracity of future pleadings filed by the attorney general on behalf of the (state health) director, if not more generally.”

In response, Brown’s office said it had not tried to hide the March rate change, which was well known to all sides in the case. Instead, the attorney general said, the state focused only recently on an argument that the change deprived the court of jurisdiction over the case.

The argument was made “entirely in good faith,” the attorney general’s office said in a statement. The office promised a filing in the next few days that would clear up the confusion.

But a lawyer for plaintiffs in the case said the court was on the mark.

Brown’s Los Angeles office, which handled the appeal, “has consistently lied and misrepresented statements of fact and law throughout the litigation,” said Lynn Carman, attorney for a group of pharmacists. “It is gratifying that the Ninth Circuit has now called a spade a spade.”

E-mail Bob Egelko at begelko@sfchronicle.com.

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/12/22/BAI51B7O6V.DTL

This article appeared on page C – 1 of the San Francisco Chronicle

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