Federal reform: Week in review

Editor’s Note: As the debate over federal health reform continues to heat up, the Ohio Health Policy Review is going to begin devoting one of its weekly e-mails to providing a round-up of the latest federal legislative developments. While the primary focus of the Review has always been health policy matters in Ohio, it is clear that the legislation being considered at the federal level would have a significant impact on the state. If you have any questions, comments or suggestions, please feel free to contact Review editor Nicholas Wiselogel at nwiselogel@hpio.net or at 614.224.4950 x310.

Poll: Americans worried about reform ramifications
A Washington Post-ABC News poll released last Wednesday found that while a majority of Americans support government playing a role in controlling health costs, most worry about potential ramifications (Source: “Most Want Health Reform But Fear Its Side Effects,” Washington Post, June 24, 2009). 
 
More than 8 in 10 respondents said they are satisfied with the quality of the current care they receive and are relatively satisfied with their personal costs. About six in 10 are at least somewhat worried that reform would lead to higher costs, lower quality, fewer choices, a bigger deficit, diminished insurance coverage and more government bureaucracy.

In the Post-ABC poll, 62 percent support the general concept of a public option, but when respondents were told that meant some insurers would go out of business, support dropped sharply, to 37 percent. Support for an individual mandate ranges from 44 percent to 70 percent depending on the specific provisions.

Obama hosts governors’ group to talk health care
Prior to hosting a health care town hall meeting exclusively aired on ABC last Wednesday, Obama met with five members of a bi-partisan group of governors that recently health roundtable meetings around the country. (Source: “States Assert Place in Health-Care Debate,” Washington Post, June 25, 2009)

"There's no perfect unanimity across the table in terms of every single aspect of reform," the president said in remarks after their meeting. "I think everybody here wants to make sure that governors have flexibility, that they have input into how legislation is being shaped on the Hill."

All of the governors (Republican governors Jim Douglas of Vermont and Mike Rounds of South Dakota, and Democrats Jennifer Granholm of Michigan, Jim Doyle of Wisconsin and Chris Gregoire of Washington) did agree that the additional costs associated with reform should not be shouldered by states. "If we're going to add more population onto the Medicaid rolls, there has to be a way to pay for that," said Gov. Granholm, adding that it is a position Obama supported.

FTC: Ending drug ‘pay-to-delay’ could save $35 billion
Also last Wednesday, the Federal Trade Commission announced that eliminating patent settlements between brand-name and generic drug companies would save consumers $3.5 billion a year (Source: “FTC: end drug patent settlements to save $35B,” Associated Press via Google, June 24, 2009).

FTC Commissioner Jon Leibowitz called on Congress to pass a bill that would ban the settlements. He said the legislation — currently in committees — could save consumers $35 billion over 10 years, about $12 billion of which would go to the government (the federal government pays about one-third of the nation's $235 billion in prescription drug costs through Medicare, Medicaid and other programs). Leibowitz said the so-called “pay-to-delay” issue could be addressed as part of Obama's effort to overhaul the U.S. health care system.

Baucus, Grassley trim costs, continue working on compromise
Senate Finance Chairman Sen. Max Baucus (D-Mont.) announced late last week that a group of three Democrats and four Republican negotiators have found cost-cutting measures that would bring the cost of a reform package down to $1 trillion over 10 years, down from the Congressional Budget Office’s original scoring of $1.6 trillion(Source: “Deal on U.S. healthcare overhaul still uncertain,” Reuters, June 28, 2009).

However, a compromise was not reached before legislators left for this week’s July 4 recess. Sen. Baucus has indicated that his bill should be ready for release next week.

The Finance Committee is one of five in the Senate and House working on health care legislation, and may be in the best position to achieve a bill with bipartisan support.

"As we have been for the last several weeks, we are committed to continuing our work toward a bipartisan bill that will lower costs and ensure quality, affordable care for every American," said the group, which includes Baucus and Senator Charles Grassley, the top Republican on the panel.

HHS site outlines ‘status quo’ in each state
Although Congress is on recess this week, the Obama Administration continues to push for movement on reform legislation. A new report from the Department of Health and Human Services titled “The Health Care Status Quo in Your State,” outlines why each individual state “can’t afford the status quo.” The Ohio section of the report is here.

Podesta, Daschle back health finance plan
As Congress awaits legislation from Baucus and others, a proposal for financing health reform released today by the liberal Center for American Progress also is garnering attention because it is being backed by two close Obama confidants, John Podesta and former Senate majority leader Tom Daschle (source: “Prominent Dems propose pay plan for health overhaul,” USA Today, June 29, 2009).

Podesta led Obama’s transition team last year and Daschle was the president’s first choice for Secretary of Health and Human Services.

The $1.2 trillion plan, outlined in a report authored by David Cutler and Judy Feder and titled “Financing Health Care Reform” (pdf, 17 pages), calls for raising $400 billion over 10 years through Medicare and Medicaid savings, new tax revenues and modernization. The plan also includes what the authors call a “failsafe” trigger that would allow a bipartisan commission to impose cost-savings measures if, after five years, projected health care costs slowdowns were not realized.