Health Security For Health Security For AllAllWisconsin Citizen Action Wisconsin Citizen Action Health Care Task ForceHealth Care Task ForceOctober 9, 2002October 9, 2002

dhaber/opeiu9/aflcio/

The Failures of Our The Failures of Our Fragmented Fragmented Health Care SystemHealth Care System• Costs Are Out of Control and

Unsustainable– Premiums are going up by double digit

percentage increases every year.– As costs skyrocket, employers cut

health benefits or shift more costs onto workers

•Based on 2001 U.S. Census Data

• Our Current Health Our Current Health System is Absurdly System is Absurdly InefficientInefficient

26%24% 23% 23%

20%18%

16%

3%1%

0%

10%

20%

30%

Overhead and Profit as a Percent of Premiums

• Therefore, We Are Paying Therefore, We Are Paying for More . . .for More . . .

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Infant Mortality

7575.5

7676.5

7777.5

7878.5

79

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Life Expectancy

•And Getting Less!!

As the costs of insurance goes up:

And What Makes Matter Worse . . .

• Employers Cut Health Benefits to Employees

• Which Leads to More Uninsured and Underinsured

• Who Seek Uncompensated Care in the ER

• Which Leads to Cost-Shifting

It’s a Vicious, Upward Spiral!

. . .which leads to higher health costs for everyone.

This is Particularly Unfair This is Particularly Unfair to Businesses Offering to Businesses Offering Health InsuranceHealth Insurance• Businesses Offering Health Insurance Businesses Offering Health Insurance

aren’t competing on a level playing aren’t competing on a level playing field with those that do not.field with those that do not.

• The Businesses Choosing to Insure The Businesses Choosing to Insure their Workers are Not Only Paying for their Workers are Not Only Paying for their Employees’ Health Care Costs, their Employees’ Health Care Costs, but for those of the Uninsured as Well!but for those of the Uninsured as Well!

•As More Businesses Drop Coverage, and Costs Go Up, More Businesses Have to their Drop Coverage.

•In fact, 73 percent of the uninsured live in a household that includes a full-time worker.

So, What’s the Solution?So, What’s the Solution? Provide EVERYONE with Provide EVERYONE with

Health Insurance in a Health Insurance in a Unified System with Unified System with Streamlined Streamlined AdministrationAdministration

WHAT???!!!WHAT???!!!How Can Paying For MORE How Can Paying For MORE Health Care Cost LESS?Health Care Cost LESS?• Most of the Costs Associated with Health

Care are actually relatively fixed, e.g.,:– Health Care Professional Salaries– Hospital and Clinic Buildings– Medical Equipment

• Once a Health Care System Evolves to a Certain Size Based on Usage, Costs Should Remain Relatively Fixed

•Since, as a society we have decided we are unwilling to turn sick people away from the Emergency Room, we are paying for the uninsured now!

•AND we are paying for the most expensive form of care!

•Therefore, health care costs actually go up the more uninsured you have!

•And Conversely . . .

Health Care Costs Go Down the More Insured You Have!

Still Skeptical?Still Skeptical?• Ask Canada, France or Germany!Ask Canada, France or Germany!

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Additional Savings and Additional Savings and Advantages of a Unified Advantages of a Unified System of Health CareSystem of Health Care• A Uniform Benefits Plan and Unified A Uniform Benefits Plan and Unified

Administration = Streamlined Administration = Streamlined Administrative CostsAdministrative Costs

• Single Risk Pool = Premiums based on Single Risk Pool = Premiums based on Average Risk -- no Average Risk -- no Cherry PickingCherry Picking or or Adverse SelectionAdverse Selection means a person with means a person with illness will have the same premium as a illness will have the same premium as a healthy personhealthy person

•A Unified System of Administration Means More Bulk-Buying Power to Negotiate Fair Prices with Hospitals, Health Care Providers, and Pharmaceutical Companies

•A Unified System of Administration Affords a Better Opportunity for Public Accountability and Application of Best Practice Standards to Ensure High Quality Health Care Delivery

Isn’t There a Less Isn’t There a Less ““Radical” Solution?Solution?

• Experience has Shown Us Experience has Shown Us That When We Tinker That When We Tinker Around the Edges We Around the Edges We Make Matters WorseMake Matters Worse

• Since Health Care is not a Since Health Care is not a “Natural” Market, Adding “Natural” Market, Adding Competition Has Not and Competition Has Not and Will Not Work in Our Will Not Work in Our Health Care System. It Health Care System. It Actually Drives Costs Actually Drives Costs Higher.Higher.

So, What Would A So, What Would A Unified Health Unified Health System Mean for System Mean for My My Health Care?Health Care?• Affordable, Comprehensive, Quality Affordable, Comprehensive, Quality

Health CareHealth Care• Choice of Providers/Access Same Choice of Providers/Access Same

Providers as BeforeProviders as Before• Not Dependent on Where/If You WorkNot Dependent on Where/If You Work• Predictable, Reliable CoveragePredictable, Reliable Coverage

How Can I Make it How Can I Make it Happen?Happen?

• Talk to Your Elected Representatives Talk to Your Elected Representatives and Candidates and Candidates find out how much they understand find out how much they understand about our health care system -- if not much, educate them!about our health care system -- if not much, educate them!

• Keep the Ink FlowingKeep the Ink Flowing letters to your representative, letters to your representative, letters to the editor, petitions, letter-writing campaignsletters to the editor, petitions, letter-writing campaigns

• Spread the Word Spread the Word through informal discussion with through informal discussion with friends, family and neighbors to formal presentations to friends, family and neighbors to formal presentations to community groups (ask for a copy of this PowerPoint community groups (ask for a copy of this PowerPoint presentation).presentation).