The Effects of Health Care Reform

On Monday, President Obama officially nominated Kansas Governor Kathleen Sebelius and Nancy-Ann DeParle as secretary of the Department of Health and Human Services and director of the new White House Office for Health Reform, respectively. If approved, both nominees will bring considerable experience to the Health Care positions. Sebelius has encouraged a bipartisan approach to her health care expansion in Kansas. DeParle “was commissioner of the Department of Human Services in Tennessee from 1987 to 1989 and managed Medicare and Medicaid in the Clinton administration.

“ The nominees will work closely with President Obama to achieve the goals set forth by the Obama administration. Some of these tasks include, “cutting costs, expanding access and improving the quality of health care.”

President Obama, Sebelius and DeParle agree that reforming the health care system is a huge fiscal undertaking, but necessary to help the general public and America’s economic health. To initiate health care reform, Obama recently allocated $155 million of the federal stimulus package to 126 new health clinics. The money will benefit roughly 750,000 insured and uninsured Americans. President Obama will elaborate on his health care strategy at a summit today.
It is evident what health care reform will mean for Americans but what impact will it have on patient and doctor mentality? What will it mean for current health care insurers? New York Times columnist Tara Parker-Pope recently explored the effects that health care reform will have on doctor and patient mentality. According to Parker-Pope, patients will have to learn to accept that while it is important demand the best possible care, the “best” does not necessarily mean the newest or most technological treatment. Dr. David Newman, a physician at St. Luke’s-Roosevelt Hospital Center argues that even if health care reform is implemented, patients and doctors must change the way they view medicine. Perhaps the $1 billion set aside in the federal stimulus package to review the efficiency and effectiveness of current procedures will help change the patient perspective on medical procedures and treatments. However, based on historical precedent, Parker-Pope is not hopeful that the general public will be receptive to the medical comparisons. Given new drug “propaganda,” the number of different medications for any ailment, and the increase in technology, public opinion towards health care may be difficult to change. Even if there is a health care reform, how effective will it really be?
Finally, what kind of affect will health care reform have on health insurers? Reporter Reed Abelson suggests that the current economic situation and the imminent health reform are serious threats to the health insurance companies. Although plans have not been finalized, if implemented, several of the proposed plans may have serious consequences for health insurers. Representatives of some health care companies, such as Ronald Williams, chief executive of Aetna, realize that given the current situation, now is the opportunity to make significant changes in the health care system. However, many more representatives do not support the proposals. Expansion of Medicare program poses one major threat to private insurers, but this may have negative externalities. In response to these threats, private insurance companies are implementing innovative measures, including breaking into new markets. No matter what the future holds for America’s health care system, change is inevitable and private insurers should be ready for reform without compromising quality of care.