Recap of August 3, 2009 Rotary Club of Cedar Rapids meeting on Health Care Reform ...

The Ripples From The Rapids article by Editor Larry Christy recapping the August 3, 2009 Rotary Club of Cedar Rapids meeting featuring speaker:

JESSIE A. PATTON, PRESIDENT, ASSOCIATIONS MARKETING GROUP, INC. (AMGI)
OBAMA & THE 2009 HEALTHCARE LANDSCAPE

Jessie Patton commented that 80% of the population want “something” done about the crisis in American healthcare, but only 10% want it to be single payer insurance and only 10% want a totally free market solution. The crisis (now exacerbated by the current economic meltdown and the impact of unemployment growth on Medicaid, SCHIP and number of people uninsured) has resulted in escalating per capita national health expenditures of $2,814 in 1990 to $7,421 by 2007.

President Obama, speaking at a White House Forum on Health Care Reform said “Health care reform is no longer just a moral imperative, it’s a fiscal imperative. If we want to create jobs and rebuild our economy and get our federal budget under control, then we have to address the crushing cost of health care this year, in this administration.”

The cost of health insurance premiums rose 73.8% from 2000 to 2006. By 2008 employer’s average health insurance premiums amounted to 11.6% of payroll. From 1999 through 2008 the overall inflation rate increased 29%, worker’s earnings increased 34% and health insurance premiums for the average worker and the average employer increased 119%. By 2008, total U.S. healthcare costs amounted to $2.4 trillion and at the current rate will be $4.3 trillion by 2016, an increase of $35.2 trillion over the next 10 years.

Health costs now represent the largest sector (17%) of Gross Domestic Product (GDP). Medicare expenditures were $37 billion in 1980, $432 billion in 2007 and are projected to reach $882 billion by 2017. Medicare spending per capita presents a real problem for providers in a state like Iowa with relatively efficient healthcare. A surgeon in Cedar Rapids earns about 50% less in Cedar Rapids from performing Medicare procedures than his counterpart in Los Angeles. Obviously, this has an effect on attracting professionals to the area. Cost-shifting due to underpayments by Medicare and Medicaid costs private insurers $89 billion per year, raising the cost of insurance coverage for a family plan by $1,788 a year.

The determinants of health status are lifestyle choices (50%), genetics (20%), environment (20%) and access to care (10%). The cost of smoking is a dilemma for the federal government. It results in $88.8 billion in tobacco revenue for government coffers but costs the country $75 billion in direct medical costs and $92 billion in lost productivity. Obesity has doubled since 1987 and a return to 1987 levels could save $225 billion per year. Chronic conditions represent 75% of our nations healthcare spending. They account for 96% of the spending in the Medicare program and 83% of the spending in the Medicaid program.

The United States (4% of the world’s population) consumes 52% of the prescription drugs in the world. Prescription drugs represent the largest percentage change in national spending for health services from 1997-2007.

Patten discussed various provisions of healthcare legislation currently before the Congress. In the House, this includes a public health insurance option with funding through cuts to Medicare and a progressive income tax surcharge on higher income individuals. In the Senate a new public plan option is under consideration with voluntary provider participation and a pay or play mandate for employers.

Next Meeting is
MONDAY, AUGUST 10, 2009
CROWNE PLAZA HOTEL

Speaker will be:
WALLACE D. LOH
PROVOST, THE UNIVERSITY OF IOWA

Robin Tucker