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Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University of Michigan (Go

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Page 1: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Two Health Reform Challenges: Passage and Implementation

Walter Zelman

Chair, Department of Health Science

California State University, Los Angeles

University of Michigan (Go Blue)

September 24, 2010

Page 2: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Some Systemic Challenges: by the numbers, 2009-10

213 years 60 $1.4 million a day Several trillion dollars 400% of FPL 9% and rising 28 in 2011

Page 3: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

The answers

213; years since the constitutional establishment limited (sometimes stalemated) government.

60: votes in the Senate $1.4 M: amount spent by health related interests lobbying,

January-June, 2009; per day Several trillion: Obama spending to date 400% income level that now needs subsidies 9% and rising; unemployment and failing economy 28 in 2011: rough projection of number of Republican

governors in office as states implement reform

Page 4: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Reform Challenges and/or Paradoxes:Why is this So Hard?

Health reform as legislative redistricting:

Reform elements are complex and interrelated. It is impossible to keep it simple or small. the simple becomes the complex and attracts concerns

Can’t have reform without cost control: but can’t get reform with cost control

Reform needs to reduce costs; but easiest way to get success is to increase spending

Page 5: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Challenges and Paradoxes

Reducing costs means changing the delivery system: that, many think, is the most difficult cost control and marketplace challenge

Comprehensive reform takes time: but legislative and political calendars and/or attention spans may not allow that time

Reform may need to happen in the middle, but the middle lacks energy

Page 6: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Challenges and Paradoxes

Public wants change in system, but less in personal circumstances: The incumbency phenomena

Public wants reform, but is wary of cost Reformers should have a Plan B, but putting

it on the table will make passing Plan A much harder: thus, comprehensive reform may be all or nothing

Page 7: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Challenges and Paradoxes

Problems with message:

--Hard to sell cost and coverage reforms at the same time; or, how does saving money cost $1 trillion?

--Stability and change: the system needs a shake-up, but you can keep what you like

Page 8: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Challenges and Paradoxes: 2010

2010 Messaging Can advocate, but not implement, cost

control; public fears too great. Reluctance to make reform about the

uninsured

Left with: insurance reforms: is this worth $1 trillion?

Why not health security for all?

WalterZelman Presentations

Page 9: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Why Reform was so hard

The Economy: deserves a slide of its own

Reform (spending) much harder in difficult economic times

WalterZelman Presentations

Page 10: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

The Timing of Health Reform

Public concerns Regarding health care Costs and/or access

High Moderate Low

State of TheEconomy

Improving, Healthy

1993-941964-65

Incremental, targeted reform at best

Slowing growth, Recession

2009-10 Reform unlikely

Page 11: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Premium Increases v. Inflation: 1988-2009

-2

0

2

4

6

8

10

12

14

16

18

20

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Inflation

Premiums

Page 12: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

WalterZelman Presentations

Premiums and Poverty Levels: the Rising Costs of Reform

2000 2009 Percent Increase

250% of PovertyFamily of Four

44,007 55,125 25

AverageFamily Premium

5,844 13,375 129

Premium as % of 250% of Poverty

13.2 24

Page 13: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Clout of the Interests: 2000 v 2008

2000: Total spent by health sector: 237m--15% of total federal lobbying

--Most spent by any sector

2008: Total by heath sector: 484 m -- 14% of total federal lobbying

--Most spent by any sector

Source: Center for Responsive Politics

Page 14: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Lobbying Expenditures, in Millions 2009

Pharma BC/BS/AHIP AHA AMA AFL/SEIU0

5

10

15

20

25

30

Source: Center for Responsive Politics

Page 15: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Top Lobbying Industries: 2008

1. Pharmaceuticals

3. Insurance: includes some health, mostly other

4. Business Associations

10. Hospitals and Nursing Homes

14. Health Professionals

20. Health Services/HMOs

Source: Center for Responsive Politics

Page 16: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Percent who say they would support a universal health insurance system even if it…

Let’s Not Forget… Public Debates Matter

35%

33%

28%

18%

Limited their choice of doctors

Meant some treatments currently covered would no longer be covered

Meant there were waiting lines for non-emergency treatments

Meant they would pay either higher premiums or more taxes

Source: ABC News/Kaiser Family Foundation/USA Today Health in America Survey (conducted September 7-12, 2006)

Percent who support a universal health insurance system, in which everyone

is covered by a program like Medicare that is gov’t-run

and financed by taxpayers

56% 40%

Percent who support the current system, in which most people are covered through private employers, but some people have no insurance

Page 17: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Key (Apparent) Strategies for Passage

Promise cost control: but offer few specifics Don’t emphasize the uninsured: may be

necessary to protect against political attack Keep program costs down: means many

remain uninsured; alienate the base? Keep major interests out of the opposition

camp: conflicts with keeping costs down Getting support of key interests means

higher costsWalterZelman Presentations

Page 18: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Reform Passes: But Exposure is Substantial

Messaging problem leaves reform goals unclear

Those with good insurance may not see the value

Necessary absence of visible cost control leaves reform with visible costs, less visible benefit

Size and complexity leaves reform open to traditional big government challenges

WalterZelman Presentations

Page 19: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Exposure (cont)

States left with major implementation requirements; state leadership may not support reform

WalterZelman Presentations

Page 20: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Implementation challenges

State implementation Early benefits, but not lower costs: premiums

likely to continue rising Public Opinion Politics and political opposition

WalterZelman Presentations

Page 21: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Some Implementation Challenges: State Exchanges

Must be in place by 2014: some issues– Who governs– Strong purchaser v price-taker– Leveling the playing field– Small group and individual market pools– Purchasing/selling in and out of the exchange

WalterZelman Presentations

Page 22: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Public Opinion, August, 2010

Fav/oppose Ref Country better off/worse, no diff

05

101520253035404550

Kaiser Family Foundation Walter Zelman Presentations

Page 23: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Reform Danger Signs: Governors

2010 Gubernatorial Incumbents

26 Democrats

13 Republicans

1 Independent (Florida)

2010 Elections: 37 Gubernatorial elections

19 Democratic held seats

17 Republican held seats

1 Independent

WalterZelman Presentations

Page 24: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

2010 Gubernatorial Forecast: 37 Races Cook Political Report: Sept 18, 2010

Solid D Likely D Lean D Toss-up Lean R LikelyR Solid R0

2

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18

WalterZelman Presentations

Page 25: Two Health Reform Challenges: Passage and Implementation Walter Zelman Chair, Department of Health Science California State University, Los Angeles University

Reasonable Projection: Governors, 2011

Republican: 28

Democrat: 22

(Based on all seats leaning/likely D or R going to that party and split of toss-up races)

WalterZelman Presentations