Vice President's Message
Richard Broadbent November Newsletter Message
My Dear Associates,
This year has been, and continues to be filled with concern about the
political assault on the health care industry. While there is always
change and upheaval in any occupation, this year is particularly pertinent
to the future of our profession. Several years ago, when our last child
was born our doctor, a family practitioner, was visiting us before we left
the hospital. He told us that he was thinking of changing occupations. He
has been an excellent physician with a large practice in Cache Valley, and
still in his forties, a long way from retirement. We were concerned about
not having his services available to our family as his abilities have been
truly valuable to me, my wife, and children. We naturally asked him why
he, of all doctors, would consider concluding his practice so prematurely.
He answered that there had been so many changes in the way doctors are
able to practice, with requirements imposed upon him from Medicare,
Medicaid, and other regulations etc. that he had become weary with all the
requirements that he and his staff now had to do. The demands of plowing
through so much regulation was so taxing that it has “taken the joy out of
helping people.”
While our industry has been under scrutiny and reform for the past several
years, the government assault that we face now is by far the most serious
in our history. The campaign in process now seems almost overwhelming, but
we must not give up and allow apathy to set in. We must continue the fight
to preserve the freedoms in health care. That means that we continue
looking for solutions that will benefit all concerned. Solutions such as
global pricing for many types of surgeries, like Lasik surgery, where the
consumer knows the cost of a medical procedure including every aspect (the
Surgeon, Anesthesiologist, Radiologist etc. etc.) all wrapped into one
global price before having it done. This has been done by the Pennsylvania
Geisinger Clinics with a 90 day warrantee on each surgery. Our own
Intermountain Health Care has worked tirelessly for best practice models
in every area of medicine. These are solutions we can promote that will
make a difference.
What more can we do to fight in this battle to prevent national government
takeover of health care? To name a few: be sure to participate in
“Operation Shout” by simply responding to the e-mails sent out by NAHU. As
soon as you receive a letter, write your Congressional Representatives via
e-mail or regular mail. It takes only a moment to make a real difference.
NAHU has reinstituted GRIP, the grass roots initiative to participate
financially in getting the correct message out thru methods our national
association feels will have the greatest impact on both the public and
Washington. We as an association just committed a sizable contribution to
GRIP. But they need more. You will probably receive e-mails from NAHU to
make your personal contribution. Please do not ignore that request, every
dollar contributed will help.
This last week I had conversations with members of Senator Hatch’s staff.
They believe the proposed legislation H.R. 3200 would increase the cost of
health care by 50 to 100%. In looking for better solutions, Orrin Hatch
has been heavily involved in the presentation of amendments to the Health
Care proposal that have been carefully crafted with the help of NAHU CEO
Janet Trautwein.
On the NAHU website you can find a new power point titled “An American
Solution-NAHU’s Vision for Affordable and Responsible Health Reform”. I
will share the script on slide number 29 that explains how insurance
reform can dramatically affect insurance costs.
“The high cost of health insurance in some states is perhaps the most
profound barrier to access. It’s clear that certain state regulatory
structures both hinder competition and also only attract unhealthy risks
into the system.
In a comparison to show the difference in state insurance reforms like New
Jersey has with guaranteed issue, community rating and heavy mandates with
the next door neighbor, the state of Pennsylvania .
Wayne, PA , and Haddonfield , NJ , are both suburbs of Philadelphia . They
are similar in size, socio-economic levels, demographics and distance from
our nation's fifth-largest city. They share the same provider and hospital
networks, and are separated only by 28 miles, with the city and the
Delaware River in between them. But look at the difference a healthy male
would pay for a typical individual coverage in each state. The slide shows
the range of prices available for a $1,000 individual deductible 80/20%
coinsurance policy. In New Jersey, there is guaranteed issue, community
rating and a mandate that all small-group carriers offer products in the
individual market. Pennsylvania has an individual market where insurers
can underwrite medical risks with a private carrier of last resort (BCBS)
for people declined for coverage. The rate in PA for a healthy male ranges
from $70 - $260 per month dependant on his age. But, even in a worst-case
scenario, a PA male with a serious medical condition would still only pay
$327.15 per month for a similar policy for coverage through the carrier of
last resort -- Independence BCBS -- still much less than the lowest rate
of $599 per month for the healthiest of individuals in NJ. In effect, NJ
has regulated its rates to unaffordable levels. The only people who have
an incentive to buy such coverage in NJ are those who have reason to
believe that they will incur more than $600 per month ($7,200 per year) in
individual claims, which has sent this market into what New Jersey terms
“a death spiral” because healthy people choose not to buy coverage until
they really need it.”
In conclusion we have a story to tell and educate our clients of the
disastrous effect an ineffective heavy handed national plan can impose.
We can continue to being successful as we provide value and service for
our clients. Change will come and we can help mold and roll with it. There
will always be nothing more certain than change. I wish you all a Happy
Thanks Giving and suggest we all pray for heavenly help to finish this
dramatic year of 2009 on a positive note.
