10 New Freedoms from the Accountable Care Act (President Obama’s Health Initiative)

1.  The freedom from going bankrupt from health care costs.  (Bankruptcy from health care expenses is unknown in other industrialized countries)

2.  The freedom from being denied health insurance because of pre-existing illness. (Only a sadist could conceive of a system that  denied coverage when a person becomes sick?)

3.  The freedom from having health care insurance costs increase because of illness. (Ditto)

4.  The freedom from not having health care coverage because it’s too expensive (The U.S. leads the world in health care costs.  This is a step to controlling expenditures)

5.  The freedom from  delaying health care because of a lack of health care coverage. (Worry about costs is a common cause of patients not seeking care for problems)

6.  The freedom from having to go to an emergency room for  care because you don’t have the money to see a family doctor  (We currently require ER’s to provide care to anyone who needs it.  Admirable, but ER care is the most expensive, most inefficient and in some ways least effective care there is)

7. The freedom from not being able to afford your child’s health care. (Assured coverage for all citizens is a reasonable goal for the “most advanced” country in the world—that’s not socialism but rather is common humanity—sense too)

8.  The freedom from religious institutions interfering with health care coverage  (Coverage should be guided by a person’s needs not someone else’s belief system)

9.  The freedom to have a patient doctor relationship (Without health insurance most people cannot afford care)

10.  The freedom of being able to survive a medical emergency without financial worry. (No explanation necessary)

Shop for care? See if you can get a price, and understand it

Only in America would there be an article about the incomprehensible cost of health care but that’s the way our non-system works.  Bill for everything you can, then if a person or insurer questions the bill, negotiate.  We even have a new category of worker, a “medical billing advocate.”

Ask Jean Poole, a medical billing advocate, about her work helping people navigate the bewildering world of medical bills and insurance claims, and the stories pour out. There’s the client who was billed almost $11,000 for an 11-minute hand surgery.  The cancer patient who was charged $9,550.40 for a round of chemotherapy he never received.

Read the article for details.

Medicynical Note:  Our non-system of care is designed to be opaque when it comes to cost and  maximize revenue rather than care.  That’s why we spend more and get less….45-50 million uninsured at any given time.  That’s why we encounter the sad fund raisers for families, often young, who encounter catastrophic illness but have no or inadequate insurance and no savings to speak of. 

Only America would consider doing away with Health Reform: American Exceptionalism…….

The 2011 National Health Insurance Interview Survey note:

  • Once each year, this quarterly report presents health insurance coverage rates for selected states. In 2011, the percentage of persons who were uninsured at the time of interview among the 32 states shown ranged from 3.9% in Massachusetts to 22.6% in Nevada.
  • In 2011, 46.3 million persons of all ages (15.1%) were uninsured at the time of interview, 58.7 million (19.2%) had been uninsured for at least part of the year prior to interview, and 34.2 million (11.2%) had been uninsured for more than a year at the time of interview.
  • In 2011, the percentage of children under age 18 years who were uninsured at the time of interview was 7.0%.
  • Among adults aged 19–25, the percentage uninsured at the time of interview decreased from 33.9% (10 million persons) in 2010 to 27.9% (8.4 million) in 2011.
  • Among adults aged 19–25, 56.2% were covered by a private plan in 2011, an increase from 2010 (51.0%).
  • In 2011, 29.0% of persons under age 65 with private health insurance at the time of interview were enrolled in a high deductible health plan (HDHP), including 9.2% who were enrolled in a consumer directed health plan (CDHP). More than 50% of persons with a private plan obtained by means other than through employment were enrolled in an HDHP. An estimated 21.4% of persons with private health insurance were in a family with a flexible spending account (FSA) for medical expenses.

Medicynical Note:  The positive aspects of the survey are in part due to the coverage extended to young adults (coverage through their parent’s plan) by the health reform package supported by the President and currently under review by the Supreme Court.  Amazingly it and the other extensions of coverage to uninsured people will be obliterated by an adverse Supreme Court review.  Only in America could this myopia be sustained!

Health Care in U.S. Unaffordable: $20,000 average for family of four

Clarifying commentary on the recent Millman index report at AcademyHealth Blog by Aaron Carroll. 

For the first time the average cost of health care for the typical American family of four has surpassed $20,000.

What accounts for this? Well, it turns out that care in America is extremely expensive. The average inpatient admission to the hospital cost $14,662 in 2010. If you were admitted to the hospital for a surgery, the average cost was $27,100. The average newborn delivery – if things went well – cost $7,371. Instruments like cost sharing and high deductible health plans that are designed to empower consumers lose much of their appeal when confronted with numbers like these. If you have a baby, or need to go to the hospital just once in a year, you’ve likely already spent as much as allowed out-of-pocket, meaning that any cost-sharing incentives to reduce spending are gone.

Moreover, it appears that prices, not utilization are the cause of increases in spending:

Read the post for details.

Medicynical Note:  Utilization is decreasing but costs increasing.  Our republican friends will say this is the marketplace—people becoming more cost conscious.  

Yes, indeed, increased costs decrease utilization, but it also decreases access—over 50 million and rising uninsured in the U.S.  In the short and long run quality of care and patient’s lives suffer.  We lead the world in uninsured citizens and costs.  That’s the American “system.”

American Exceptionalism: We are an Outlier

As several members of our Supreme Court looks to apply the “original intent” (from the 18 century) to health reform in the 21st century, other countries are looking forward.

Even as Americans debate whether President Obama’s health-care law and its promise of guaranteed health coverage should be scrapped, many far less affluent nations are moving in the opposite direction — to provide medical insurance to all citizens.

China, after years of underfunding health care, is on track to complete a three-year, $124 billion initiative projected to cover more than 90 percent of the nation’s residents.

Read the article for more examples.

Medicynical Note:  Is it any wonder that other nations sense our social and moral decline. 

We bring new definition to the term leading from the rear.  We are the worst in the world in assuring access to care; we lead the world in costs for health care; we lead the world in health care related bankruptcy.

Medical Debt: America’s the Only One

America’s unique approach to health-care most vividly expresses itself in our health care costs, our lack of universal coverage, and in the medically related debt  (national and individual)  found in our country.  We lead the world!

Even people with good insurance coverage know how hard it can be to figure out how much they owe after a visit to the doctor or, even worse, the emergency room, which can generate multiple bills. But as patients become responsible for a growing share of costs — not just co-payments, but also deductibles and coinsurance — bill paying is becoming ever more complex.

Medicynical Note:  America leads the world in medical debt.  In trying to manage this problem various legislative fixes are “in the works.” (see article above)  Other nations use  preventive medicine and simply, one way or another, provide health-care coverage to all their citizens.  Individual medical debt is unknown. Additionally, because other countries manage their costs, their national bill for health-care (cost of health care/capita) is a fraction of ours.  American exceptionalism at work!!!

Avastin (bevacizumab): Fails Older Lung Cancer Patients

Another study of bevacizumab (Avastin), this time in lung cancer, showing minimal to no improvement in outcomes with treatment.  Remember this drug costs in the range of $80-100,000/year.

In a study being published this week in the Journal of the American Medical Association, those treated with bevacizumab and chemotherapy did not live significantly longer than those simply treated with chemo.

Patients aged 65 and older who received Avastin in addition to a standard chemotherapy regimen had a median overall survival of 9.7 months, according to the study to be published tomorrow in the Journal of the American Medical Association. While that was longer than the 8.9 months and 8 months for two groups of patients receiving chemotherapy only, the finding wasn’t statistically significant, said the researchers from the Dana- Farber Cancer Institute in Boston.

Avastin, a $5.8 billion-a-year product also known as bevacizumab, won U.S. Food and Drug Administration approval for non-small cell lung cancer in 2006, after a study found the therapy improved survival by a median of two months. That research showed no benefit among patients aged 65 and older, who are covered by Medicare, the government health-insurance program for the elderly and disabled. At least two-thirds of patients with lung cancer qualify for Medicare, which has covered Avastin for that use since FDA approval, the authors said.

And:

Patients in the Avastin group had a 39.6 percent probability of surviving one year, compared with 40.1 percent getting chemotherapy from 2006-2007 and 35.6 percent for those treated earlier than 2006, the study found. More recent data might yield different results, the researchers said

Medicynical Note:  Roche may dispute the findings but what is clear is that bevacizumab (Avastin) has a minimal if any beneficial effect in elderly lung cancer patients.

This drug brings in 5.8 billion dollars in revenue to Roche, about the same amount as the cost of malpractice litigation in the U.S. (See previous Medicynic for details)  We’re talking big bucks for a drug with limited benefit. 

We have a non-system of care that costs too much.   Drugs such as bevacizumab (Avastin) are part of the problem.

More here

Bevacizumab should not be considered part of the “backbone” of treatment or the standard of care for older patients with advanced disease, said lead author Deborah Schrag, MD, MPH, from the Dana-Farber Cancer Institute in Boston, Massachusetts. She spoke at a press conference, held in Washington, DC, on the journal’s new issue, which centers on comparative effectiveness research.

Malpractice Cost: Adds Little to Total Health Care Costs, But……..

Nice summary of the impact of malpractice on health care spending.

Medicynical Note:  The costs are tiny (5 billion) when compared to the 2.5 trillion spent on health care in the U.S. but, as noted in the piece by Aaron Carroll, they are very real to the physicians lawyers and patients involved. 

But “malpractice reform,” i.e. limiting judgments, will have little to no effect on the total spent on health care.  For that we need to look elsewhere…..patent reform, increased efficiency, systematic coverage, better choices, behavior (doctors and patients) modification.

Drug Costs: If Not Patients, Who Pays?

The NY Times had an article earlier in the week bemoaning the increasing costs of expensive drugs for patients.  Insurers are increasing the co-pays and deductibles in an attempt to control their costs and perhaps decrease utilization.

The article cites the case of a hemophiliac boy with drug costs exceeding $100,000/year.  His family cannot afford increased payments of up to 1/3 of the drugs price.

State lawmakers are stepping in:

Spurred by patients and patient advocates like Ms. Kuhn, lawmakers in at least 20 states, from Maine to Hawaii, have introduced bills that would limit out-of-pocket payments by consumers for expensive drugs used to treat diseases like cancer, rheumatoid arthritis, multiple sclerosis and inherited disorders.

Needless to say drug companies who reap excessive profits from these expensive drugs are ecstatic at the notion of lowered copays, anticipating an increase in utilization. 

The article notes that these patent holding companies take advantage

Such drugs account for only 1 percent of total drug use, but 17 percent of drug spending by private insurers, according to IMS Health.

And costs are soaring as more such drugs come to market and as manufacturers raise prices. In 2010, spending on specialty drugs jumped 17.4 percent, compared with only 1.1 percent for other drugs, according to Medco Health Solutions, a pharmacy benefits manager that merged this month with Express Scripts.

Medicynical Note:  The issue here is monopoly, and not the board game.  Our government in hopes of spurring “innovation” provides a generation long monopoly to drug manufacturers who develop  new drugs.  In the past such exclusivity was used judiciously  by drug companies.  Prices for patented agents were high but not so high that they were unaffordable.

In the late 80’s and early 90’s, after the passage of the  Dole-Bayh act, manufacturers were allowed to take private new drug advances developed at universities with government funds.  Everyone, the researchers, the universities and the drug companies became owners of the patent and drove the price of advances up.  More entities on the patent means more people wanting a share of the profits.

The free for all has indeed resulted in new drugs, some very effective, the medication cited for hemophilia and imatinib mesylate (Gleevec) for chronic myelogenous leukemia for example.  But the patent protection afforded  allows companies to apply monopoly pricing to their agents.

Before the 90’s no drug approached a yearly cost of even 1/3 the median U.S. income.  Now on a regular basis for a variety of serious illnesses, drug companies price their agents in the range of $100,000/year and more.  An amount that is almost twice the U.S. median income.  It should be noted that just a few of these new drugs are major advances.  Most offer an incremental benefit  for a small proportion of the patients treated.  But all are marketed to desperate patients willing to try anything to ameliorate their symptoms and/or live longer

The irony is that we’ve developed a new medication “system” that we can’t afford.  Insurers, patients and our government are going broke trying to accommodate drug company pricing. 

It’s a little like trees falling in the woods.  If you have a drug that you can’t afford, is there really a drug?

Cancer Survival Study: Exaggerated and Misleading

A recent study being published in Health Affairs written by a fellow of the conservative American Enterprise  Institute and Manhattan Institute and funded by Bristol Meyers Squibb is being criticized as misleading and poorly done.

The study notes:

Cancer patients in the United States who were diagnosed from 1995 to 1999 lived an average 11.1 years after that, compared with 9.3 years for those in 10 countries in Europe, researchers led by health economist Tomas Philipson of the University of Chicago reported in an analysis published Monday in the journal Health Affairs.

Those extra years came at a price. By 1999 (the last year the researchers analyzed), the United States was spending an average of $70,000 per cancer case (up 49 percent since 1983), compared with $44,000 in Europe (up 16 percent). Using standard figures for an extra year of life, the researchers concluded that the value of the U.S. survival gains outweighed the cost by an average $61,000 per case. The greater spending on cancer care in the United States, they conclude, is therefore “worth it.”

But critics believe:

“This study is pure folly,” said biostatistician Dr. Don Berry of MD Anderson Cancer Center in Houston. “It’s completely misguided and it’s dangerous. Not only are the authors’ analyses flawed but their conclusions are also wrong.”

The heart of the problem is that the authors naively forgot about lead time bias and effect of earlier diagnosis of often times benign behaving tumors that would never cause a patient problems.  Since the U.S. has a more aggressive disease screening program and diagnoses more of these benign growths their patients appear to survive longer but the improved survival has nothing to do with treatment benefit.

As the critics note:

If a tumor is diagnosed very early in its existence – if it has a long “lead time” – the patient may survive, say, two years if the tumor is very aggressive. If an identical tumor is found in that patient’s identical twin later, the twin will survive, say, six months. But the twins die at the same age. The first survived longer with cancer due to lead-time bias, but did not have a longer lifetime.

Crediting medical care with “improving survival” is therefore misleading, cancer experts have long argued. Lead-time bias makes it seem patients live longer, but the only thing that is longer is the number of years they know they have cancer, not their lifespan.

Read the rest of the article to learn more of the flaws of this dangerous biased study.

Medicynical note:  It is not an accident that this study is drug company sponsored and that the results overstate the benefit of treatment.  While there has been some progress in decreasing cancer mortality  it comes mostly from prevention (smoking cessation) and earlier diagnosis. 

What’s most interesting is the amount of money the authors propose as reasonable to spend to extend a person’s live one year—$150,000 to $360,000.  As Ewe Reinhardt notes:

“Are American taxpayers willing to pay $150,000 in added taxes (Medicyncial addition: and insurance premiums) to purchase an added life year for some poor person?” asked health economist Uwe Reinhardt of Princeton University. “Does the urge to cut government spending on Medicare and Medicaid suggest Congress is willing to purchase added life years for anyone who cannot purchase it with his or her own money at a price of $150,000 per year?”

Rather than try and justify our exceptionally expensive and inefficient health care non-system we should be working to find what works best and is the most cost efficient. 

Our problem with health care in the U.S. is that we can’t afford the non-system that we have created.  It’s a monster that’s eating us alive.