The cost of medical treatment continues to increase yearly. A major component of the Workers' Compensation benefits system is now the cost of medical care. Workers' Compensation insurance is not alone in experiencing this phenomena. Soaring medical costs pervades the entire Insurance industry and are a major concern of both Medicare and Medicaid solvency. Over the next two decades, the United States will have to reinvent the wheel I am determined what limitations on the cost of medical care must be imposed. The entire delivery system will ultimately experience change. It is more likely than not that Congress will again, "kick the can down the road, and delay implementation of significant change until after the baby boomer generation. Without a creative approach being offered now, the options will be limited, and will probably result in the universal medical care delivery system under a federal umbrella. The American health care system is structured differently from systems in other countries, making it more expensive. Paul Solman: Harvard's David Cutler is among the country's foremost health economists, famous for -- among other research -- a controversial paper arguing that even our exorbitant health care industry, in terms of increased productivity and life span outcomes, delivers more than what we pay for it. Cutler, who was profiled by Roger Lowenstein in the New York Times Magazine in 2005,
Paul Solman: Why does health care cost so much in America? David Cutler: Let me give you three reasons why. The first one is because the administrative costs of running our health care system are astronomical. About one quarter of health care cost is associated with administration, which is far higher than in any other country. Paul Solman: What's the next highest? David Cutler: About 10, 15 percent. Just to give you one example, Duke University Hospital has 900 hospital beds and 1,300 billing clerks. The typical Canadian hospital has a handful of billing clerks. Single-payer systems have fewer administrative needs. That's not to say they're better, but that's just on one dimension that they clearly cost less. What a lot of those people are... |
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Wednesday, November 20, 2013
Why does health care cost so much in America? Ask Harvard's David Cutler
Tuesday, November 19, 2013
The Shame of American Health Care
Even as Americans struggle with the changes required by health care reform, an international survey released last week by the Commonwealth Fund, a research organization, shows why change is so necessary.
The report found that by virtually all measures of cost, access to care and ease of dealing with insurance problems, Americans fared poorly compared with people in other advanced countries. The survey covered 20,000 adults in the United States and 10 other industrial nations — Australia, Canada, France, Germany, the Netherlands, New Zealand, Norway, Sweden, Switzerland and Britain, all of which put in place universal or near-universal health coverage decades ago. The United States spends far more than any of these countries on a per capita basis and as a percent of the national economy.
For that, it gets meager results. Some 37 percent of American adults went without recommended care, did not see a doctor when sick or failed to fill prescriptions in the past year because of costs, compared with 4 percent in Britain and 6 percent in Sweden. Nearly a quarter of American adults could not pay medical bills or had serious problems paying them compared with less than 13 percent in France and 7 percent or less in five other countries. Even Americans who were insured for the entire year were more likely than adults abroad to forgo care because of costs, an indication of how skimpy some insurance policies are.
When Americans got sick, they had to wait longer than people in...
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Saturday, September 28, 2013
Building an Accountable Care Organization and Its Impact on Workers' Compensation
Suppose for a moment that you are an administrator in an organization that provides health care and your job is on the line for delivering both savings and improved care. Because you want to be part of the solution to the health-care-cost problem, you have signed contracts with payers that reward your institution or system for reducing the costs of care. These same contracts require you to pay a penalty if the costs of care go up more than inflation. What would be your first, second, and third move?
This is not a hypothetical question. More than 300 hundred administrators of accountable care organizations (ACOs) across the United States are facing it. My team at Partners HealthCare in Boston is faced with this exciting (and daunting) challenge. Having signed shared-savings contracts with both commercial payers and Medicare, our CEO, Gary Gottlieb, established a Population Health Management unit. A major focus of our work is to achieve shared savings in our contracts. That means controlling costs for the populations cared for by our primary care physicians. Since doctors and hospitals within Partners bill for a majority of the care these patients receive, you could say our success depends on reducing the income of our colleagues. Harvard Business School’s Clayton Christensen has taught us this is not possible — that an organization will not cannibalize itself. So when we go knocking on... |
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Tuesday, August 13, 2013
The Trend to Supersize Hospitals
Hospital have been not only purchasing other hospitals reducing the number of independent hospitals in the US from 5,000 to 1,000, but it has also accelerated the trend for hospitals to purchase lucrative medical practices to earn income from diagnostic tests and to control the flow of hospital admissions.
An unintended consequence of this path may actually increase hospital costs because fewer hospital facilities exist, or the lack of competition may just lead to a universal medical care system. Workers' compensation insurance programs may therefore be required higher fees to hospitals.
"Hospitals across the nation are being swept up in the biggest wave of mergers since the 1990s, a development that is creating giant hospital systems that could one day dominate American health care and drive up costs."
Read the complete article, "New Laws and Rising Costs Create a Surge of Supersizing Hospitals" (NY Times)
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Friday, August 9, 2013
A Conservative Re-Envisioning Of The Health Care Overhaul
Today's post was shared by Kaiser Health News and comes from capsules.kaiserhealthnews.org
Tired of hearing policy experts and politicians debate the 2010 health care law? What if you took the Affordable Care Act out of the conversation? If you could scrap the nation’s current health care system and build a new one, what would it look like?
A group of health care experts from Stanford University, the Harvard Kennedy School of Government and the University of Southern California, among other institutions, has compiled a report with their answer to that question. Funded by the conservative-leaning American Enterprise Institute’s National Research Initiative, the document offers a variety of ideas that its authors say would achieve universal coverage, protect the poor and the sick and restrain health care cost growth, among other priorities.
“In many ways, the ACA has been a distraction, because people think that all of the health care debate boils down to ‘do you support the ACA or do you oppose it?’ ” said Darius Lakdawalla, one of the authors and a visiting scholar at the American Enterprise Institute, as well as a professor of pharmaceutical economics in the University of Southern California School of Pharmacy. “To us, that is really a very narrow and misleading question.”
The report’s proposals include allowing health insurers to charge premiums that reflect consumers’ health care costs and providing generous subsidies to help the poor obtain...
Wednesday, July 3, 2013
Obama Administration Delays and Simplifies Rules on Health Care
Sunday, June 23, 2013
Single Payer A Possibility for New York City Employees
"Vowing to “make New York City the single-payer laboratory in the country” if he is elected
mayor, Anthony D. Weiner on Thursday presented an ambitious plan to create a Medicare-like system for the coverage of municipal workers, retirees and uninsured immigrant residents left out of the Affordable Care Act."
Click here to read: "Weiner Wants City to Test Single-Payer Health Care" The NY Times
Tuesday, May 21, 2013
Just Go to The Emergency Room
A recent RAND study now validates that an alternate route is increasingly being used to access the medical care system, the emergency room. Few restrictions exists to enter an emergency room door. The red tape imposed by insurance carriers is eliminated, and the concept of deny and delay are non-existent in emergency room medicine.
Hospital emergency departments play a growing role in the U.S. health care system, accounting for a rising proportion of hospital admissions and serving increasingly as an advanced diagnostic center for primary care physicians, according to a new RAND Corporation study.
While often targeted as the most expensive place to get medical care, emergency rooms remain an important safety net for Americans who cannot get care elsewhere and may play a role in slowing the growth of health care costs, according to the study.
Emergency departments are now responsible for about half of all hospital admissions in the United States, accounting for nearly all of the growth in hospital admissions experienced between 2003 and 2009.
Despite evidence that people with chronic conditions such as asthma and heart failure are visiting emergency departments more frequently, the number of hospital admissions for these conditions has remained flat. Researchers say that suggests that emergency rooms may help to prevent some avoidable hospital admissions.
"Use of hospital emergency departments is growing faster than the use of other parts of the American medical system," said Dr. Art Kellermann, the study's senior author and a senior researcher at RAND, a nonprofit research organization. "While more can be done to reduce the number of unnecessary visits to emergency rooms, our research suggests emergency rooms can play a key role in limiting growth of preventable hospital admissions."
Friday, May 17, 2013
Obamacare Will Be Collecting Workers' Compensation Medical Records
(P.L. 111-148). On March 30, 2010, the Health Care and Education Reconciliation Act of 2010
(P.L. 111-152) was signed into law. The two laws are collectively referred to as the Affordable
Care Act. The Affordable Care Act creates new competitive private health insurance markets –
called Exchanges – that will give millions of Americans and small businesses access to
affordable coverage and the same insurance choices members of Congress will have. Exchanges
will help individuals and small employers shop for, select, and enroll in high quality, affordable
private health plans that fit their needs at competitive prices. The IT systems will support a
simple and seamless identification of people who qualify for coverage through the Exchange, tax
credits, cost-sharing reductions, Medicaid, and CHIP programs. By providing a place for onestop shopping, Exchanges will make purchasing health insurance easier and more understandable
and will put greater control and more choice in the hands of individuals and small businesses."
Read more about "Federalization" and workers' compensation:
Friday, April 19, 2013
US EPA Reports: Better Planning, Execution and Communication Could Have Reduced the Delays in Completing a Toxicity Assessment of the Libby, Montana, Superfund Site
Sunday, March 31, 2013
OSHA Needs To Be Strengthened
Commission on Workmen's Compensation Laws in 1972 reported that safety should be encouraged, and that, "....Economic incentives in the program should reduce the number of work-related· injuries
English: A picture of David Michaels, Assistant Secretary of Labor. (Photo credit: Wikipedia) |
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“"I’m the first to admit this [OSHA] is broken,' said David Michaels, the OSHA director, referring to the agency’s record on dealing with workplace health threats. 'Meanwhile, tens of thousands of people end up on the gurney.'"
Friday, March 15, 2013
Workers' Compensation is Riding on the Road to Wellville with Obama Care
Sunday, February 17, 2013
The Missouri Compromise - 2013
Part of the compromise was to limit liability of occupational disease claims against employers and re-establish the exclusivity bar. Albiet, the SIF would provide additional monetary benefits to those exposed at work.
While it sounds nice on paper, the problem, of using a band-aide to permanently correct the overall concerns of both Industry and Labor, will not work in the long-run. Actually this has been tried before and already failed. Employers notoriously dodge the bullet and delay and deny occupational claims even though they are difficult to defend against.
When the going gets tough, down the road, Industry will end up further restricting the benefit flow to injured workers, and medical delivery will then remain non-existent. Consequentially, the end result is that the general taxpayer and not the consumer, ends up paying for the continued unsafe work practices of Industry.
The Missouri Compromise 2013 is only a first step in recognizing a problem exists. It demonstrates that legislators from different parties can reach a compromise. The real fix would be even greater OSHA enforcement of safety procedures, new Federal regulation and, a universal health care system.
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Monday, February 11, 2013
Jobs, Growth & Universal Healthcare
Robert Reich, in a 3 minute video, states the reasons why jobs, growth and universal healthcare are needed to expand the US economy.
This is reflective of the issues plaguing the nation's workers' compensation system, especially soaring medical delivery costs (administrative, clinical and pharmaceutical).
Read more about "universal healthcare" and workers' compensation:
Friday, February 1, 2013
Universal Medical and Workers' Compensation: It's Not "If", It's "When" - California
My friend, and cycling inspiration, who keeps me trying to think I can enter the Tour de France while under the influence of Starbucks coffee, David DePaolo, points out that the "fusion" may be coming slowly through legislation of unintended consequences in California.
"The concept of universal care, 24 hour care, single stop shop, etc. has been floating for a couple of decades now with very little progress.David, an expert in analyzing what's around the curve, sees the next wave of change coming to workers' compensation. For so many reasons, including the expansion/reimbursement integration of the Medicare program, the writing is on the wall on this one.
"But the passage of the Affordable Care Act, the signing of HB 1 back in February 2009, and other Federal health related laws and regulations including ERISA, have accelerated the fusion of workers' compensation medicine and general health medicine. Outsourcing MPN [Medical Provider Networks] oversight to a health care related agency is just another step towards this outcome.
Every time the lobbyists think that have eliminated the imminent threat of Federal intrusion, ie. Enactment of The SMART Act, the reality of which is that the regulations will eat up the statute, and also their lunch. I plan to write more on The SMART Act in the coming weeks. Maybe that wasn't so smart after all for the cottage industries that supported it.
Tuesday, December 4, 2012
Obesity Is Weighing Down The Workers' Compensation System
The "fat" gene |
Medical delivery now needs to deal with: weight reduction, delay of medical care and complex treatment protocols , due obesity issues. The resulting consequences of this pre-existing / coexisting issues, are increasing the economic burden on the entire program.
Recent discoveries in human genome project reflect that obesity may actually be controlled by genetic propensities. In other words, the so-called "fat gene" programs whether the human body will gain weight.
"Obesity is a chronic metabolic disorder affecting half a billion people worldwide. Major difficulties in managing obesity are the cessation of continued weight loss in patients after an initial period of responsiveness and rebound to pretreatment weight. It is conceivable that chronic weight gain unrelated to physiological needs induces an allostatic regulatory state that defends a supranormal adipose mass despite its maladaptive consequences. To challenge this hypothesis, we generated a reversible genetic mouse model of early-onset hyperphagia and severe obesity by selectively blocking the expression of the proopiomelanocortin gene (Pomc) in hypothalamic neurons. Eutopic reactivation of central POMC transmission at different stages of overweight progression normalized or greatly reduced food intake in these obesity-programmed mice. Hypothalamic Pomc rescue also attenuated comorbidities such as hyperglycemia, hyperinsulinemia, and hepatic steatosis and normalized locomotor activity. However, effectiveness of treatment to normalize body weight and adiposity declined progressively as the level of obesity at the time of Pomcinduction increased. Thus, our study using a novel reversible monogenic obesity model reveals the critical importance of early intervention for the prevention of subsequent allostatic overload that auto-perpetuates obesity."
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Saturday, December 1, 2012
Construction Injuries and Fatalities Cost California’s Economy $2.9 Billion Between 2008 and 2010
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Thursday, November 29, 2012
A Single Payer System Will Solve the Fiscal Cliff
The most important issue is not whether the country has "guns or butter," for in the end it will have both. The question is whether the nation will recognize that the US needs tol take the bold step previously taken by the European Community, finally adopt a single payer medical care program.
The perpetual cost generator that continues to rage out of control in workers' compensation programs is the medical component. Medical costs are crashing the system to failure across the country, with no hope in sight for relief.
Robert Reich clearly stated the issue today in a posting on his blog:
"What worries me most about the tactical maneuvers over the "fiscal cliff" and "grand bargain" is that official Washington seems to be losing sight of the larger picture: We still have a huge number of unemployed, and many of those who have jobs continue to lose ground. If we were a sane society, we'd raise taxes on the rich in order to afford a first-rate system of public education for all our people, starting with early-childhood and extending through four-year college or technical; we'd borrow at historically-low rates (the yield on the ten-year Treasury is still below 1.4 percent) to put millions to work upgrading our crumbling infrastructure; and we'd turn our extraordinarily inefficient and costly healthcare system -- the single biggest driver of future budget deficits -- into a single-payer system focused on prevention and on healthy outcomes. Instead, we're locked into a game of chicken over the budget deficit, and preparing to cut public investments and safety nets.....
Jon L.Gelman of Wayne NJ, is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson).
Read more about "single payer systems" and workers' compensation
NJ Urged to Adopt Single Payer System for Workmens Comp