The PULSE
Osteopathic Emergency Medicine Quarterly VOLUME XXXI NO. 3
JULY 2006
Presidential Viewpoints
Paula Willoughby DeJesus, D.O., FACOEP
Setting the Table for Health Reform Does Mass-achusetts have it right? A huge question! The legislature recently set another milestone in moving forward with real health care reform. In 1988, the State enacted a controversial “universal care” law that they did not implement and eventually repealed. Massachusetts is back at the table and is once again setting a precedent by its latest actions. This new health care reform plan is based on shared responsibility in health care coverage. Individuals, private industry and the government are called upon to create the foundation of the plan. It requires all Massachusetts residents, 18 years of age and older, to carry a basic health insurance plan. It will be verified and enforced through the individual’s state tax return. Parents and guardians will be responsible for all dependents. Young adults will be able to stay on their parents’ plan two years after they have lost their dependent status or until they are 25 (whichever comes first). Specifically designed products will be created for this young adult group that has limited coverage. A database will be established and those that are not compliant will be penalized by fines that will be 50% of what an “affordable” insurance premium would cost. The plan also requires businesses with 11 or more, fulltime employees to offer “cafeteria plans” which allow employees coverage choices. Small group and individual insurance will
ultimately be merged into a single market, thus eliminating added fees to non-group payers. They would be allowed to purchase insurance on a pre-taxed basis. Employers will be charged $295 per employee annually when they do not provide health care insurance or contribute to it. They will be charged a surcharge when their employee exceeds a certain threshold amount of care. The State will administer many of the parameters and establish the sliding scale definitions of “affordable.” They will establish an “approved” provider list. They will make “approved” insurance products available to small businesses. People who are self-employed, unemployed or not eligible for coverage by other mechanisms will be able to purchase coverage from these providers. Policies will be retained even if the insured changes their job. Premium assistance will be provided on a sliding scale based on income. Households earning less than 300% of the federal poverty level and who have no other mechanism to obtain insurance will be eligible for these plans. A portion of the funds that are directed to institutions that provide care to the uninsured will be used to subsidize insurance for low-income individuals. Medicaid will be expanded to include all children in these families. Medicaid providers will receive rate increases. Households who earn less than 100% of Federal poverty levels will have no premiums. None of the plans will have deductibles. Those that are ineligible for these subsidized plans may have deductibles, user networks and outof-pocket costs.
The PULSE JULY 2006
All of theses measures will be tied to performance measures. Cost, utilization, specific procedures, ethnic health disparities and quality physician/hospital data will be public information. Hospitals will be required to report data and reimbursement will be tied to performance thresholds. A detailed discussion of this ambitious legislation appears in the May 18, 2006 Perspective Section of the New England Journal of Medicine (Volume 354, Number 20). The two articles are worth a close look. The first, “Can Massachusetts Lead the Way in Health Care Reform by Stuart Altman, PhD and Michael Doonan, PhD, applauds Massachusetts for demonstrating health care to the uninsured is possible. It projects this will challenge and “embolden leaders in other states.” There is victory for institutions providing care for Medicaid patients in that the reimbursement for care will be more in line with that of private insurance payments. This is good news for the insurance industry as well as they too are indirectly subsidizing the uninsured through increased costs for services to make up for uncovered care. The authors also realistically point out that, “The devil, as always, is in the details.” The details of this new plan have some definitions and specifics to be deviled out. What will the regulations and implementation details be? Will the current funding structure be enough to sustain the program long term? Will the “affordable” premiums be too expensive for the average individual and family? What will these “new” insurance products look Presidential Viewpoints, continued on page 4