Janice Simmons is a senior editor and Washington, DC, correspondent for HealthLeaders Media Online. She can be reached at jsimmons@healthleadersmedia.com.
Less than a week after the congressional bipartisan healthcare summit, President Obama will likely indicate in a White House speech this afternoon that he wants Congress to move quickly to pass healthcare reform legislation as early as late March before the Easter recess.
The legislation will now include several new provisions proposed by the GOP.
"After decades of trying, we’re closer than we’ve ever been to making health insurance reform a reality," Obama said in a letter sent Tuesday to House and Senate leadership. He said the summit meeting left him "convinced that the Republican and Democratic approaches to healthcare have more in common than most people think."
President Obama specifically turned down the idea of pursuing a "piecemeal reform" because he said it is not "the best way to effectively reduce premiums." Among the areas he is including, that incorporate GOP suggestions, are:
A set of initiatives to combat fraud, waste, and abuse related to Medicare and Medicaid that uses medical professionals to conduct random undercover investigations of other healthcare providers.
A reform bill that authorizes funding to states for demonstrations to resolve medical malpractice disputes, including health courts.
A review of Medicaid reimbursements to physicians to see if payments are adequate or inadequate.
A review of health savings accounts and the inclusion of high deductible health plans in state health exchanges.
While he doesn't mention it in his letter, Obama is expected to encourage the Senate to use the reconciliation process, which will only need 51 votes for approval of individual bill items—but could be proven to be time consuming.
"We are talking about a process where we use the simple majority to pass the legislation—without any fancy names a simple majority. That's a budget resolution. Under the budget resolution, you can only deal with issues that are central to the budget," House Speaker Nancy Pelosi (D-CA) explained about the bill Tuesday. "This is not an immigration bill. It is not an abortion bill. It's a bill about affordable health care for all Americans."
The Republicans, though, indicated that despite the addition of GOP-related provisions, they are unlikely to support the bill.
In a statement, House Minority Whip Eric Cantor (R-VA) said: "If the President simply adds a couple of Republican solutions to a trillion dollar healthcare package that the American people don't support, it isn't bipartisanship—it's political cover."
In its annual report to Congress, the Medicare Payment Advisory Commission (MedPAC) recommended on Monday that Congress give hospitals a fiscal 2011 payment update equal to the rate of change in the marketbasket index (currently projected at 2.4%) for inpatient and outpatient payments. However, there is a catch.
To restore budget neutrality at the federal level, MedPAC is proposing to reduce the inpatient update by up to 2% in 2011, 2012, and 2013—to recover earlier overpayments that resulted from changes in the use of new diagnosis-related groups in 2008. This could result in an inpatient update of just 0.4% in fiscal 2011.
The projections are developed from data showing hospitals had a steady year in 2008: Payments to the 3,500-plus hospitals participating in the inpatient prospective payment system grew by 3.7% (between 2007 and 2008), resulting in those hospitals receiving about $139 billion for inpatient and outpatient services.
At the same time, though, Medicare payments per discharge rose by 4.5%—compared to a 5.5% growth in costs per discharge. Roughly 3% of the growth was because of the payment rate updates, with the remainder due to more detailed documentation and coding. Overall, the Medicare margin declined from -6% to -7.2% between 2007 to 2008.
However, results varied by providers, as MedPAC noticed as it examined financial outcomes for those hospitals that performed consistently well on cost, mortality, and readmission measures. For those hospitals, Medicare payments covered the fully allocated costs of the median efficient hospital, according to MedPAC's Executive Director Mark Miller.
This number was not large, though: In the study of 2,718 hospitals with complete data between 2005-2007, 218 hospitals were found to be "relatively efficient" (after screening out 10% of hospitals in counties with the highest annual service use per Medicare patient and 10% with the lowest).
In other recommendations, MedPAC called for Congress:
To update payments for physician services in 2011 to 1%. It also called for Congress to establish a budget-neutral payment adjustment for primary care services billed under the physician fee schedule and furnished by primary care physicians.
To increase payments to ambulatory surgical centers by 0.6%, concurrent with requiring the centers to submit cost and quality data.
To update the rates for hospice by the projected rate of increase in the hospital marketbasket rate minus an adjustment for productivity growth.
To eliminate the update in payment rates for skilled nursing facilities for 2011.
While diagnostic and therapeutic medical radiation have many important benefits, a House subcommittee on Friday took a closer look at recent reports in which radiation reportedly caused injuries in a variety of settings—and how to avoid these risks and hazards.
Rep. Frank Pallone (D-NJ), chair of the Energy and Commerce Health Subcommittee, said the hearing was not because Congress thinks that medical radiation is bad. "I would like to assure you, this is not the case," he said. "We are not here today to make the statement that medical radiation should not be used."
However, with all the advancements the industry has made, "these technologies have become more complex and complicated to operate," Pallone said. "It is shocking to me that in many states individuals who operate these devices do not need to be licensed and are therefore not regulated at all in terms of education and expertise."
"Part of the problem could be the fact that no single agency has authority over the entire spectrum of issues related to medical radiation and because of this, things are more likely to fall through the cracks," he said.
One of the individuals testifying was the father of Scott Jerome Parks, who received treatments seven times more powerful than required for his tongue cancer. The accident allegedly occurred when a technician did not detect malfunctioning computer software. The story was featured in a series of articles from the New York Times.
James Parks told the subcommittee that because of the error, his son had become deaf and blind before dying in 2007.
"Medical accidents happen. We know that hospitals have a vested interest in making serious accident go away as quickly and quietly as possible," he said. "Hospitals in general cannot be relied upon to report or make public, serious medical accidents without strong external sanctions."
Parks called for the U.S. to develop "a strong, mandatory data base, and force all medical institutions to report all serious medical accidents." It would be a repository for "evaluating trends and identifying medical problems throughout the nation," he added.
While approximately a million patients per year are "safely and accurately treated" with radiation therapy, further steps are needed to ensure patient safety, Eric Klein, PhD, a professor of radiation oncology at Washington University, St. Louis, testified.
First, a national depository for anonymous error reporting should be created in order for communities to learn from such errors or "near misses," he said. Although the anecdotal reported rate of errors in radiation oncology is quoted as less than one in 10,000, this rate likely may be inaccurate because there is no depository or even statewide mandates for reporting such errors.
"In most states, hospitals are not obligated to report errors occurring with their linear accelerator," he said.
Hospitals also need to encourage scheduling patterns to allow for time outs before "each treatment begins to allow for cross checking of all parameters by the therapists," Klein said. In relation to this, the time leading up to the patient’s first treatment should allow for careful review "of all parameters to be used," he added.
The oversight for computed tomography (CT) radiation dosing is currently "very fragmented," said Rebecca Smith Bindman, MD, a professor of radiology, epidemiology, and biostatistics, obstetrics, gynecology ,and reproductive sciences at the University of California, San Francisco. "The Food and Drug Administration (FDA) oversees the approval of the CT scanners—as medical devices—"but does not regulate how the test is used in clinical practice."
While radiologists determine how the CT tests are performed, few national guidelines are available on how these studies should be conducted, Smith-Bindman said. "Therefore, there is great potential for practice variation that could introduce unnecessary harm from excessive radiation dosing."
Since information on radiation is reported differently across the various types of CT machines, radiologists may find it difficult to standardize their practice, she said. The American College of Radiology has established a voluntary accreditation process to standardize practice, Smith-Bindman said.
However, while the approach is promising, data collection is "extremely limited, making it difficult if not impossible for [ACR] to monitor if facilities comply with their recommendations."
In the current environment, medical technology and decision making "are increasingly complex, and rapid changes in diagnosis and care delivery compound the situation," said Tim Williams, MD, chairman of the board of Directors On behalf of the American Society for Radiation Oncology (ASTRAY).
ASTRAY recently launched a new quality- and safety-focused self assessment module based on best practices to improve clinical care in radiation oncology. "This online education tool provides best practice guidelines for dosimetrists, physicists, therapists, physicians, and nurses," Williams said.
The new module emphasizes the use of peer review, including an analysis of treatment steps that may be prone to human error, documentation of near misses, development of departmental checklists to catch errors, and engaging the entire radiation oncology treatment team to openly discuss patient safety, Williams added.
In his radio address on Saturday, President Obama, fresh from the seven-hour bipartisan healthcare summit held two days earlier, said: "It is time for us to come together. It is time for us to act." However, in the entire speech, one word was missing: reconciliation.
But it wasn't missing from the discussion of health policy leaders talking on the Sunday news shows.
Using budget reconciliation, a parliamentary procedure, the Democrats could move ahead to vote on healthcare reform in the Senate—circumventing a Republican filibuster. The tactic would allow a measure to pass by a simple majority vote of 51—rather than the 60 votes needed to break a filibuster, which could now be the case in the Senate with the election of Sen. Scott Brown (R-MA).
Budget reconciliation was created in 1974 to make it easier for the Senate to pass bills for lowering the nation's deficit. Since then, it has been used 22 times to vote on other issues, and every president since Jimmy Carter has signed bills into law achieved through reconciliation. Under current rules, Social Security cannot be considered under reconciliation (but Medicare can).
"Just because it's been used before for lesser issues doesn't mean it's appropriate for this issue," said Senate Minority Leader Mitch McConnell (R-KY) on CNN's "State of the Union." "There are a number of other Republicans who do not think something of this magnitude ought to be jammed down the throats of a public that doesn't want it through this kind of device."
Sen. Jon Kyl (R-AZ), quoting former Senate Majority Leader Robert Byrd (D-WV)), about the reconciliation rule, said its application in this case would be an "outrage that must be resisted," he said. "It has been used several times before, but primarily to balance the budget. It is a budget procedure," he said on Fox News Sunday.
While not directly saying that reconciliation will be the path of choice, Nancy-Ann DeParle, director of the White House Office of Health Reform, said on NBC's Meet the Press that: "We're not talking about changing any rules here. All the president is talking about is, do we need to address this problem, and does it make sense to have a simple up-or-down vote on whether or not we want to fix these problems?"
"Our first hope is that we could actually get some movement from our Republican colleagues as a result of the summit. At the summit, we heard a lot of Democrats, including the president, embrace many of the ideas of Republicans. Hopefully we could get some movement very shortly on that," said Sen. Robert Menendez (D-NJ) on Fox News Sunday.
But in the absence of that, it may be possible to "proceed on a simple majority vote that has been used many times by Republicans in the past, including for the passage of the Bush tax cuts and changes to Medicare that were some of the biggest cuts in Medicare," Menendez added. "We'd really like to get a bipartisan bill. In the absence of that, the American people, I think, have said in the polls that they want to see move forward on healthcare reform."
However, not all Democrats appear supportive of the reconciliation process.
"Let's just understand the question of reconciliation,” said Senate Budget Committee Chairman Kent Conrad (D-ND) on "Face the Nation." "I have said all year as chairman of the Budget Committee, reconciliation cannot be used to pass comprehensive healthcare reform. It won’t work. It won’t work because it was never designed for that kind of significant legislation. It was designed for deficit reduction."
At Thursday's healthcare reform summit meeting in Washington, President Obama and selected members from the House and Senate came to either agree—or disagree—with the current state of healthcare reform.
Basically, they came, they sat, and they talked and talked. But will it move healthcare reform to the next level?
Here's how the summit could actually kickstart health reform:
1. A sense of urgency was created.
"We cannot have another year long debate about this," Obama said near the end of the summit. "So the question that I'm going to ask myself—and that I'll ask of all of you is—is there enough serious effort that in a month's time or a few weeks' time or six weeks' time we could actually resolve something?"
Obama made it clear that he would not be attempting a summit of this magnitude again.
"I thought it was worthwhile for us to make this effort. [But] we've got a lot of other things to do. I don't think that we're going to have another one of these because people don't have seven, eight hours a day to work some of these things through."
And if the Republicans decline to give bipartisan support?
"Then I think we've got to go ahead and some make decisions," Obama said. "That's what elections are for. [When] we have honest disagreements about the vision for the country, we'll go ahead and test those out over the next several months till November."
2. Underscored that the parties had more in common with each other than the public might perceive.
Sen. Tom Harkin (D-IA), who is chairman of the Senate Health, Education, Labor and Pensions Committee, said at the summit, "We may be closer together than people really think in actually getting agreement [so] that we can move forward."
"Of the 10 key elements in the House [Republican's proposed] bill, we have nine of them in our bill. That's not bad," Harkin said.
"This includes provisions on not being excluded from coverage for pre-existing conditions, no lifetime caps, no gender-bases ratings, and keeping children on a parent's health policy after they become young adults.
"The only one that's missing is the health savings accounts," Harkin added. "I think we're very close on this."
3. Could add fresh ideas into the current debate.
Sen. Ron Wyden (D-OR) suggested the two parties consider "real reform that would ... change the incentives that drive the system and empower the consumer." His plan would "build on the exchanges that we have today" that are used by the federal employee system.
"I think we can resolve a lot of our differences," he said.
But on the flip side, the dialogue may have indicated that stronger differences exist between the parties—and that agreements may be difficult to achieve.
Here are three barriers that impede the Democrats in moving forward with a large health reform program:
1. The continued push to start over.
A common theme voiced by many of the Republican attendees was that they wanted to push aside the bills already approved by the House and the Senate in favor of a new one.
As Rep. Joe Barton (R-TX), ranking member on the House Energy and Commerce Committee, said: "Let's start over in the sense that we change the vision and work together to do the things that we agree upon—but do it in a way that doesn't destroy the fundamental market system that's made the American healthcare system the best in the world," he said. "And if we do that, we can make a deal."
This is a move, however, that the president indicated at the end of the summit that he is unlikely to take.
2. Disagreements over individual mandates versus insurance reform.
Mandating that individuals obtain insurance "is a significant issue across the country," said Rep. Dave Camp (R-MI), the ranking minority member on the House Ways and Means Committee.
"The American people are telling us that the individual mandates—the requirements to buy insurance—are something that they want us to scrap and start over on," Camp said. "That's why you're seeing state legislatures around the country passing resolutions saying, our citizens are going to have a choice on whether they buy health care."
However, Obama and many of the Democrats said that it would remain difficult to reform the healthcare marketplace and keep costs down if individuals did not have to purchase healthcare insurance.
3. The size and complexity of the bill.
Throughout the summit meeting room, copies of the current 2,700-page reform bill sat next to several Republicans who cited the size of the current legislation—and said they would not vote for something this large.
Obama appeared unmoved by the request. "I did not propose—and I don't think any of the Democrats proposed—something complicated just for the sake of being complicated. We'd love to have a five page bill. It would save an awful lot of work."
He said the reason they didn't do it is because "it turns out that baby steps don't get you to the place where people need to go," Obama said.
"[People] need help right now. And so a step by step approach sounds good in theory, but ... we can't solve a preexisting problem if we don't do something about coverage," he added.
Focusing on the point that "it's not where we differ, but where we agree," President Obama kicked off the healthcare summit Thursday morning.
The first topic with leading congressional leaders involved in the healthcare reform discussion: how to pay for healthcare.
"The best way to increase access is to reduce costs," said Sen. Lamar Alexander(R-TN), the lead-off speaker for Republicans. And to reduce those costs, Alexander proposed-—in a refrain heard from Republican lawmakers throughout the morning—starting over with a simpler bill that would emphasize areas, such as health savings accounts, small business plans, and tort reform.
House Speaker Nancy Pelosi (D-CA), noting the 406-19 vote yesterday in the House on the bill overturning insurance antitrust provisions, said agreements could be reached by keeping job creation in mind.
Sen. Tom Coburn (R-OK) called for Congress to "pursue the biggest pots of gold for us"—fraud and abuse. "If we started on fraud, we could cut up to 7%" of costs tomorrow." Fraud and abuse is prominent in the White House proposal released on Monday.
Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee, said the current gaps dividing the parties "aren't that great"—citing areas where Republicans and Democrats were close on issues. They included health savings account, tax credits, addressing pre-existing conditions, and getting value and quality from healthcare.
The discussion will continue through the afternoon on insurance reform, expanded coverage, and deficit reduction.
When you think about it, quality in healthcare is all about improvement. It means improving the daily lives of patients, improving the technology to deliver care, improving communications between providers and patients, and improving chances for survival.
But should this improvement cost more—or less? As two new studies out this week show, what you pay for up front may lead to results you may not expect—depending on what you are treating.
At the national level, policymakers are giving more emphasis over how to achieve better quality at far less cost. In recent years, they are giving more attention on whether earlier discharges from hospitals could be a way of saving money—or creating more expense if the patient returns to the hospital within 30 days or six months.
Research by Lena Chen, MD, a clinical lecturer in internal medicine at the University of Michigan Health System, found that sometimes you may get better results if you pay more upfront—but at other times it may not make that much difference, especially in the area of long-term results.
In a study that appears in the Archives of Internal Medicine, she and her colleagues found different results for Medicare patients with two common hospitalized conditions: congestive heart failure (CHF) and pneumonia.
For each condition, the researchers used data from national databases (Medicare, American Hospital Association, Hospital Quality Alliance) to review the association between hospital cost of care and several variables: 30 day death rates, readmission rates, six month inpatient cost of care, and a quality score based on performance indicators for each condition.
Costs of care for each condition showed wide variation. Care for a typical Medicare inpatient with CHF ranged between $1,522 to $18,927, depending on which of the 3,146 hospitals where the patient had been hospitalized. The average cost was $7,114. Meanwhile, cost of care for a typical patient with pneumonia averaged $7,040 and varied in cost from $1,897 to $15,829 per hospitalization among 3,152 facilities.
Hospitals among the top fourth of the highest cost hospitals had higher quality of care scores and lower mortality for CHF. However, for pneumonia, the opposite was true. When compared with low cost hospitals, high cost hospitals had lower quality of care scores and higher mortality for pneumonia.
Hospitals with lower costs had similar or slightly higher 30 day readmission rates (24.7% for CHF and 17.9% for pneumonia) when compared with higher cost hospitals (22% for CHF and 17.3% for pneumonia). However, patients initially seen in lower cost hospitals still incurred lower overall costs of care over six months following their initial visits in higher cost hospitals ($12,715 vs. $18,411 for CHF and $10,143 vs. $15,138 for pneumonia).
"The quality between the high-cost and the low-cost both weren't that great," Chen says. As for why costs were higher or lower—perhaps use of health information technology, the existence of vertical integration, or a variation in the number of tests ordered—is not evident from this study. "We didn't have the data to look at the potential reasons for the differences in costs," Chen says.
In a diabetes study released by the National Minority Quality Forum, Medicare beneficiaries with the condition who consumed the least of their Medicare benefits and services ended up not saving money. Instead, they cost Medicare more money because they went to the emergency room more often and required more hospitalizations.
The study divided Medicare beneficiaries into five groups—crisis consumers, heavy consumers, moderate consumers, light consumers and low consumers—based on how much Medicare reimbursed for services in any year. The two most costly clusters were crisis consumers and heavy consumers, representing about 11% of Medicare beneficiaries—but 65% of all costs.
But these cluster groups could vary each year—particularly beneficiaries who are low consumers one year. They could be catapulted into the heavy consumers group the next year—triggered by a critical and costly health event.
"If we can identify these patients, who are under managing their chronic condition putting them at high risk for disease complications, we can intervene to help these individuals manage their disease more effectively, and, ultimately, reduce overall healthcare costs," says Gary Puckrein, PhD, a founding partner of the Diabetes Care Project and President and CEO of the National Minority Quality Forum, who spoke at a telebriefing where the study was released.
"As a practicing physician, we really need a paradigm shift—from a population-based approach to treating diabetes to developing a more personalized management and strategy," says Kenyatta Lee, MD, an assistant professor of community health and family medicine at the University of Florida.
So do these studies provide a lesson in comparing treatment and costs? Well, maybe more research is needed, Chen says. Possibly more efforts, such as comparative effectiveness research—or as it's referred to as "patient-centered research" in the latest federal budget—could lay a foundation for some better answers on how much to spend—less or more—for quality care and get the best outcomes.
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For the past few weeks, the national conversation on healthcare reform has been getting louder and is expected to reach a crescendo today as select Democratic and GOP congressional members meet with President Obama for the healthcare summit at 10 a.m. EST at Blair House in Washington.
Millions of viewers are expected to watch on the White House Web site and C-SPAN to see whether the summit can achieve a bipartisan agreement that moves a final bill through Congress.
The pre-soundbites were in clear evidence in anticipation of the summit Wednesday. Senate Majority Leader Harry Reid (D-NV), speaking to a group of participants on Capitol Hill who had just ended a march supporting reform, said that "healthcare reform is not about political parties fighting with each. It's about people fighting for their lives."
Sen. Tom Harkin (D-IA), chairman of the Senate Committee on Health, Education, Labor, and Pensions, in speaking to the same crowd, decided to paraphrase Mark Twain by saying: "Reports on the death of American healthcare reform have been greatly exaggerated."
GOP members from both sides of the Capitol, though, indicated that they had their own plans. "If the White House wants real bipartisanship, then it needs to drop the proposal it posted [Monday], which is no different in its essentials than anything we've seen before—and start over," said Senate Minority Leader Mitch McConnell (R-KY).
On the House side, the GOP has gone one step further and created what it calls a "truth squad"—a congressional team of Republicans "ready to fact check misstatements from Washington Democrats and highlight Republicans' better solutions to lower healthcare costs," said House Minority Leader John Boehner (R-OH) on his Web site.
For Thursday's summit, President Obama will begin with opening remarks—followed by remarks from a Republican leader and a Democratic leader. Obama will also moderate discussions on four topics:
Insurance reforms
Cost containment
Expanding coverage
The impact healthcare legislation will have on deficit reduction
What will be on display is whether the President will be able to recapture the momentum of the bills—HR 3952 in the House and HR 3590 in the Senate—from months ago. That momentum stalled with the election of Sen. Scott Brown (R-MA), which cost Democrats their super majority in the Senate.
But the House has seen changes in its membership as well since Nov. 7 when the healthcare reform bill was approved by the slimmest of margins: 220-215.
Rep. Neil Abercrombie (D HI) will leave his House seat on Sunday to run for governor; Rep. Robert Wexler (D FL) resigned in January to take another job; Rep. John Murtha (D PA) died this month following gallbladder surgery; and Rep. Parker Griffith(R-AL) switched from the Democratic party in December. These changes might ultimately mean a different health reform plan.
The summit also will be in part the culmination of more than a year of lobbying in the Nation's capital. According to the Washington, DC-based Center for Public Integrity, more than 1,750 companies and organizations hired about 4,525 lobbyists—almost eight for each member of Congress—to influence healthcare reform bills in 2009.
Among the industries that have lobbied Congress include 207 hospitals, 105 insurance companies, and 85 manufacturing companies. Trade, advocacy, and professional organizations accounted for 745 registered groups that lobbied on health reform bills, according to Center for Public Integrity.
The healthcare reform proposal released by President Obama on Monday has some similarities—and some differences—to the Senate reform bill concerning how costs will be covered in the $950 billion bill.
Obama's plan includes these four ways to fund the nearly $1 trillion plan.
Cadillac Tax. Back is the so-called "Cadillac Tax" that would impose a 40% tax on the value of higher cost health plans above a certain amount. In the bill, passed by the Senate in December, that amount was $8,500 for individuals and $23,000 for families, which then would have raised $150 billion over 10 years.
However, a subsequent meeting with labor leaders at the White House in January—who thought the tax disproportionately weighed against many of their members with higher cost policies—negotiated trigger rates that were slightly higher.
In President Obama's reform plan, the amount was increased to $10,200 per individual and $27,500 per family, with the start-up date moved to 2018 to 2013. The Congressional Budget Office has estimated that this policy will reduce many high-cost premiums in the long run.
The proposed tax, though, still has opposition in the House. Rep. Joe Courtney (D-CT), who spearheaded a petition signed by 193 House members who opposed the tax, said that while the White House proposal "makes significant progress" on the excise tax, it should be set aside and studied rather than imposing a tax eight years in the future, he said.
"Delaying the tax by nearly a decade and hoping that it doesn't hurt working families is like throwing a dart in the dark."
Increase the Medicare Hospital Insurance (HI) tax base. The White House proposal adopts a Senate approach to increasing the HI tax on high-income taxpayers. The President's proposal calls for adding a 2.9% assessment—equal to combining employer and employee shares of the existing HI tax—on income from interest, dividends, annuities, royalties, and rents.
As proposed, this would apply to taxpayers with incomes above $200,000 for singles and $250,000 for married couples filing jointly. The additional revenues from the tax on earned income would be credited to the HI trust fund, and the revenues from the tax on unearned income would be credited to the Supplemental Medical Insurance (SMI) trust fund.
More pharmaceutical money. The White House proposal continues to call for a $23 billion assessment in the Senate bill over 10 years—plus another $10 million—starting in 2011. This would help begin to close the so-called doughnut hole by 2020. Currently with the "doughnut hole" provision, Medicare stops paying for prescriptions after the plan and the beneficiary have spent $2,830 on prescription drugs and begin paying after out of pocket spending reaches $4,550.
Device manufacturers tax. The White House proposal, noting that the medical device industry "stands to gain from expanding health insurance coverage," calls for a $20 billion excise tax beginning in 2013. This excise tax would "yield the same revenue" as the "fees" called for in the House and Senate bills.
In one of the largest national studies to date, two common conditions—sepsis and pneumonia—caused hospital acquired infections (HAIs) that killed an estimated 48,000 people and cost the healthcare system $8.1 billion in one year (2006), according to researchers in a new Archives of Internal Medicine study.
The researchers looked at HAIs that are often preventable, such as a serious bloodstream infection that could occur during surgery. The cost of these infections can be high: For example, individuals who developed sepsis after surgery stayed in the hospital an additional 11 days longer and the infections cost an extra $33,000 per person to treat. About 20% of people who developed sepsis after surgery died as a result of the infection.
The researchers also looked at pneumonia, and found that those who developed pneumonia after surgery, which is mostly preventable, stayed in the hospital an additional 14 days. These patients cost an extra $46,000 per person to treat. In 11% of the cases, the patient died because of the infection.
"HAI represents an easy way for us to reduce healthcare costs because [it helps] patients, insurers, as well as hospitals. There are no losers in doing better infection control," said Ramanan Laxminarayan, PhD, in a telebriefing. He is the principal investigator for Extending the Cure, a project examining antibiotic resistance based at the Washington, DC, Thinktank Resources for the Future.
For the study, Laxminarayan and his colleagues reviewed 69 million discharge records from hospitals in 40 states looking for sepsis or pneumonia cases.
"We tend to use a lot of antibiotics to control infections, and the use of those antibiotics leads to resistance," said Laxminarayan. "If we are to conserve the effectiveness of antibiotics, which are a precious national resource, we must do a better job of infection control."
While the goal is not to discourage the use of antibiotics for an appropriate use, different steps can be taken to more efficiently use antibiotics, he said. This includes:
Encouraging better vaccination rates to discourage diseases, such as influenze, that would need antibiotics.
Using better strategies when prescribing antibiotics—such as using combinations of antibiotics for treatments.
Making prescribers more responsible for when they prescribe antibiotics. "Providers don't bear the consequences, and that has to change," Laxminarayan said.