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Health Care 3.0: What’s Next? “The questions for Vermont is do you want to walk ahead of the U.S.? Do you want to be a model for the rest of the country?”

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Presentation on theme: "Health Care 3.0: What’s Next? “The questions for Vermont is do you want to walk ahead of the U.S.? Do you want to be a model for the rest of the country?”"— Presentation transcript:

1 Health Care 3.0: What’s Next? “The questions for Vermont is do you want to walk ahead of the U.S.? Do you want to be a model for the rest of the country?” Dr. Hsiao 1/19/11

2 Tour around the technology Main window Here you’ll see the presentation Control panel – check your audio settings or send us a question

3 Who’s with you tonight? Kathleen Stoll Director of Health Policy Families USA Anya Rader Wallack Chief HC Advisor Governor Shumlin Daniel Barlow Policy Director VBSR Dr. Michael Scollins Physician; Trustee VPIRG Cassandra Gekas Health Care Advocate VPIRG Paul Burns Executive Director VPIRG

4 Why we’re all here Our health care system is broken Vermont can do better Federal money Support of leadership Dr. Hsiao’s report Momentum

5 Thank yous Distinguished Panelists Families USA Partner Organizations Vermont’s leadership You!!

6 Goals Up to speed Inside Scoop Answer Questions Build Network Hear from You

7 Our Ambitious Agenda… I.Background  The case for reform  How we got here  National context II.Health Care Design Options  Dr. Hsiao’s charge  What’s in the plans  Impact on individual Vermonters  Impact on business community  Impact on medical providers III.Q & A IV. What’s next?

8 Poll # 1

9 The View from the Governor’s Office Anya Rader Wallack Chief HC Advisor Governor Shumlin Anya is Chief Health Care Advisor to Governor Shumlin. A native Vermonter, Anya has a deep knowledge of state health policy, including Medicaid policy and the effect of national health reform on states. Anya wore many hats during Dean Administration, serving as Policy Director, Deputy Chief of Staff and liaison to Hillary Rodham Clinton’s health care task force. She also served on the Board of Medical Practice in Vermont. f Anya earned a bachelor’s degree from the University of Vermont and a Ph.D. in social policy from Brandeis University’s Heller School.

10 How Did We Get Here? Anya Rader Wallack Chief HC Advisor Governor Shumlin Insurance reform Medicaid expansion – broad eligibility relative to other states Creative use of Medicaid funds through a “waiver” More regulation than most states – hospital budgeting, certificate of need – but no effective cost control Effort to transform primary care (Blueprint for Health) Effort to create a interoperative network of computerized medical records

11 Past attempts at universal coverage have failed. What’s different this time? Legislature passed Act 128 – requires consultant to develop three plans Dr. Hsiao delivered detailed plans yesterday Commitment from Governor and legislative leaders to move ahead with a single payer plan Commitment from Congressional delegation to help us Federal health care reform -- $$ to cover the uninsured and create a single health insurance “exchange” within the state Anya Rader Wallack Chief HC Advisor Governor Shumlin

12 Where do we go from here? Digging into the Hsiao report to understand the details Identifying necessary reforms not addressed by the report 15-day comment period Consultation with many groups Governor and legislative leadership will work to craft a bill and map out a legislative strategy

13 Poll # 2

14 Act 128: Building a System for Vermont Act 128 charged Harvard economist Dr. William Hsiao with developing three new health care models for Vermont Legislature directed Hsiao to design models for single-payer system and a public option; the third option was left open Hsiao’s third option – which he recommended to the Legislature – calls for a public-private single-payer system

15 The Ground Rules The Legislature directed Hsiao to design systems that included: Universal coverage with common benefits Reduce waste and inefficiencies Move to an integrated delivery system Contain health care costs

16 Act 128: Design Parameters Maximize federal funds going to Vermont Contain no overall health care cost increases Use cost savings to fund reform Does not reduce income for physicians, hospitals and providers

17 Challenges to Reform Benefit package constraints The budget Legal hurdles: Medicaid, Medicare, PPACA, ERISA Hospital profits Payments to Physicians Supply of providers and capacity Universal Coverage Operations

18 What’s the Buzz in Washington? Kathleen Stoll Director of Health Policy Families USA Kathleen is Director of Health Policy at Families USA, where she is the lead on health policy positions, analysis, and technical assistance to state advocates leaders. Before joining Families USA, she served at the Center for Women Policy Studies – first as Director of Public Policy and then, as Director of the National Resource Center on Women and AIDS Policy. Kathleen was also the Legislative Director for U.S. Congressman Robert T. Matsui, staff Attorney for the Committee on Human Services of the D.C. City Council and a Public Policy Fellow at the National Health Law Program.

19 Poll # 3

20 Kathleen Stoll Director of Health Policy Families USA

21 Kathleen Stoll Director of Health Policy Families USA

22 Vermont – The Decisions are Yours Exchange governance? Small employer participation - up to 50 or 100? Combine small group and individual markets? Consumer friendly process for selecting coverage? Financial help - ease of application and renewal? Criteria for plans to participate in exchange? Premium regulation and negotiation? Innovative coverage models in exchange? Expanded covered benefits? Standardization of benefits? Choosing navigators? Limits on -or- elimination of outside market? Basic Health Plan Option? And more!!! Kathleen Stoll Director of Health Policy Families USA

23 Vermont – The Decisions are Yours (no reform is not a viable financial or moral option) Governance? Consumer friendly entry? Employer friendly design? Financial help - ease of application and renewal? Provider payment negotiation and regulation? Provider payment reforms (ACA, etc)? Delivery reforms? Innovative delivery models? Any private coverage or private administration? If private coverage, premium regulation & negotiation? Expanded covered benefits? Choice of packages? Standardization of benefits? Choosing navigators? (No system is simple for everyone) Limits on -or- phased elimination of outside private insurance market? Basic Health Plan Option? ACA waiver (timing)? And more!!! Get involved in these decisions! Kathleen Stoll Director of Health Policy Families USA

24 Potential Federal Dollars on the Table Under the Affordable Care Act Potential of $219 million in 2014 in premium subsidies Potential $283 million over in Medicaid (with only $8 million in increased state spending) Kathleen Stoll Director of Health Policy Families USA

25 The Plans: What’s in All Three? A Single payer: all $ through one channel Savings: administrative, fraud & abuse Benefits: Effort to standardize Primary Care: investments & workforce Payment Reform: based on quality, not volume Integration: Coordinating patient care PPACA: Maximize federal dollars

26 Plan 1: Pure Single Payer Covers everyone! Administered by the state Everyone pays in to one fund Standard benefit package that emphasizes prevention, primary care and coverage for catastrophic illness Legislature decides budget and revenue Savings in year 1: $520 million or 24.3% Dependent on federal waivers

27 Plan 2: A Public Option Will not cover everyone Preserves private market – state administered plan to compete Insurance exchange and premiums with tax credits and subsidies Market based benefit package Preserves deductibles – approx. $250-$1000 Savings: $330 million or 16.1% in first year Not dependent on federal waivers

28 Plan 3: Single Payer Hybrid Single Payer: covers everyone! Everyone pays in (progressive payroll tax) State administers eligibility, subsidies and exemptions Competitive public/private bidding for processing Reimbursement levels and benefit decisions governed by an independent board Savings: $590 million or 25.3% in first year Dependent on federal waivers

29 Poll # 4

30 VPIRG: What we’re watching for Cassandra Gekas Health Care Advocate VPIRG Goals: Building a high quality, universal health care system that is affordable and sustainable over time. Goal To build a high quality, universal health care system that is affordable and sustainable over time. What we are looking for? Consumer protection Adequate benefits Affordability at all income levels Access throughout changing circumstances Financial stability over time

31 What we already know Cassandra Gekas Health Care Advocate VPIRG The Uninsured 7% of Vermonters have no health care coverage Why? Cost & Paperwork The Under-Insured 15.7% have health coverage that does not meet their needs Why? Out-of-pocket costs Coverage denials & restrictions Inconsistent over time

32 Plans 1 & 3: Impact on Individuals & Families Cassandra Gekas Health Care Advocate VPIRG No more out of pocket costs! Lower average HH spending: up to $339 million Public input and independent appeals process Less paperwork Consistent coverage Better coordination of care and medical records Some may pay more, other less Benefit package limitations

33 Cassandra Gekas Health Care Advocate VPIRG Plan 2: Impact on Individuals & Families Same system, but lower premiums No guarantee: some uninsured Same total costs to HH but more benefits Less control over benefits Better coordination of care Same paperwork Consistent coverage despite employment

34 Key Questions We Must Answer Cassandra Gekas Health Care Advocate VPIRG What will our benefit packages look like? 1. Comprehensive: medical, mental, drugs, vision, dental, nursing home, homecare 2. Essential: Excludes nursing home/homecare. Limits vision and dental services. How much are we willing to pay? What is fair and equitable? How do think about quality? What type of care do we value? Option 3: most “viable?”

35 Quick Question from audience

36 Poll # 5

37 VBSR’s: What we’re looking for. Daniel Barlow Policy Director VBSR VBSR has spent 16 years advocating for health care reform in Vermont. We are looking for a health care system that: -Provides universal access -Decouples health care from employment -Includes an equitable funding system -Contains cost savings

38 What we already know Daniel Barlow Policy Director VBSR Vermont businesses are struggling with annual health care cost increases. The current system is simply unsustainable. VBSR polling from 2010 shows: - Nearly half of our members spend the equivalent of 10% of payroll on health care benefits - 20% of members spend up to 20% of payroll to pay for employee health care - Some VBSR businesses are forced to cut benefits or ask workers to pay more

39 Plan 1: Vermont’s Employers Daniel Barlow Policy Director VBSR Funds single-payer system with a payroll tax Total employer spending on health care decreases by $50 million in 2015 (essential) or increases by $340 million (comprehensive) Between 4,000 and 8,500 jobs created Vermont’s GDP +$130 million-$340 million Payroll exemptions: low-wage employers & workers

40 Plan 2: Vermont’s Employers Daniel Barlow Policy Director VBSR Creates a public health insurance option with no new taxes Total employer spending on HC decreases by $100 to $140 million Between 1,200 and 3,000 jobs lost in Vermont Vermont’s GDP decreases by $90 to $230 million Project a net migration from VT of 500 to 220 people

41 Plan 3: Vermont’s Employers Daniel Barlow Policy Director VBSR Funds single payer system with payroll tax Total employer spending on HC decreases by $75 to $215 million Between 4,000 and 5,000 jobs created Vermont’s GDP increases by $110 and $180 million Payroll tax exemptions for low-wage employers and employees

42 Key Questions we must answer Daniel Barlow Policy Director VBSR Who are the winners and losers in this new system? Can small businesses with less than 10 employees afford the costs associated with funding a universal health care system? Are Vermont businesses willing to see an increase in payroll taxes to fund health care reform?

43 Quick Question from audience

44 Engaging the Medical Community Dr. Michael Scollins Physician; Trustee VPIRG Dr. Scollins is a retired primary care internist who practiced medicine in Vermont for 35 years. He spent 20 years in his own practice at Aesculapius Medical Center in South Burlington, before joining forces with Fletcher Allen Health Care (FAHC) – a partnership that last an additional 15 years. Mike is a former President of FAHC medical staff and spent time as one of their attending physicians. He also served as a Professor of Medicine and Pharmacology at UVM College of Medicine. Mike has a special interest in cardiovascular prevention, adverse drug reactions, innovative models for health care delivery and cost control. He joined VPIRG as a trustee in 2010.

45 Poll # 5

46 What we already know Dr. Michael Scollins Physician; Trustee VPIRG The impact of the uninsured and crippled businesses Shortage of primary care physicians and an over supply of specialist $ linked to volume and high priced technology Cultural expectation of quality Disconnect on costs in public Vermonters are foregoing preventative care

47 Key Considerations for Providers Incentives to build Primary Care workforce Changing reimbursement standards Hospital budgets and curbing volume Medical school role and physician training What level of care to give when Find ways to work together Individual Physicians Hospitals Medical school Medical society Other care providers Dr. Michael Scollins Physician; Trustee VPIRG

48 Key Questions we must answer What income changes are physicians willing to accept? How will reimbursement changes affect income and practice style? How do we reign in spending and still keep our hospitals viable What role does “healthy behavior” play in this? How do we measure quality? (more data needed) Will further costs curbs be needed? How involved are you willing to be? Dr. Michael Scollins Physician; Trustee VPIRG

49 It’s your turn… Paul Burns Executive Director VPIRG

50 Poll # 6

51 Timeline : Draft an pass a health care reform law that institutes a single payer system with integrated service delivery 2011: develop insurance exchange as dictated by the PPACA. Expand medical homes and blueprint 2012: develop state agency that would act as the single payer 2014: establish and insurance fund and prepare the appropriate state health agencies for going online with the full reformed single payer system in 2015.

52 Call to Action Thank you! Your input are essential to changing the system Vermont has a real opportunity to lead the nation in health care reform Big decisions sacrifices and gains: Make your voice heard Momentum to ensure success

53 Wrap Up/Thank you’s/Next Steps Comment on plans Talk to your legislators Letters to the editor Educate and engage your community Get involved with organizations: VPIRG, VBSR and other partners

54 More resources Read the full Hsiao report online at: Keep up with VPIRG’s actions on health care reform here: VBSR’s health care updates and actions are online here:


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