Earlier this week, Stephen Ubl, chief executive of the Advanced Medical Technology Association, shared some optimistic comments about the direction of health care reform with Massachusetts medical device executives. Ubl believes that President Obama can successfully reform the current health care system if he addresses the problems and criticisms associated with fomer President Clinton's reform attempt. Ubl summarized the Obama administration's proposal, which includes:
"universal health coverage, subsidies to assure affordability, insurance reform, and meausres to encourage prevention and better managment of chronic diseases."
Most of the proposal reflects the current universal system implemented by former Massachusetts governor Mitt Romney in his state. Ubl predicts that President Obama will accomplish these objectives with "more transparency and bipartisanship" than the Clinton administration, which may drum up more support. However, Ubl warns the President against implementing the reforms to control health care costs at the expense of innovation and advancements.
Julian Zelizer, author and professor at Princeton University, recently commented on the direction of health care reform. Zelizer reflected on two major developments that occured over the past week. The first, mentioned in a previous blog, is that the President and Senate Democrats "included reconciliation instructions in the budget for health care." Second, the Democrats can successfully pass health care reforms without the threat of a Republican filibuster. However, Zelizer encourages the Obama administration to reflect on the challenges that faced President Clinton during his health care campaign. First, the Clinton administration's proposed legislation was very complex. The proposed reforms included employer mandated coverage, federal regulations and government sponsored health care for certain groups. Second, while working on the health care crisis, President Clinton simultaneously tackled other policy reforms, delaying the health care reform legislation. As a result, critics were able to "gather momentum and put together their attack." Third, the Clinton administration faced funding issues. Who should pay for the health care program? Zelizer believes that the current conditions are more favorable for health care reform today than during the Clinton adminstration. He predicts that President Obama will successfully implement health care reforms if he learns from past mistakes. However, Zelizer encourages the President to reach an agreement quickly on how to finance the reforms and to market health care reform so that it is impervious to most criticisms.
Julian Zelizer, author and professor at Princeton University, recently commented on the direction of health care reform. Zelizer reflected on two major developments that occured over the past week. The first, mentioned in a previous blog, is that the President and Senate Democrats "included reconciliation instructions in the budget for health care." Second, the Democrats can successfully pass health care reforms without the threat of a Republican filibuster. However, Zelizer encourages the Obama administration to reflect on the challenges that faced President Clinton during his health care campaign. First, the Clinton administration's proposed legislation was very complex. The proposed reforms included employer mandated coverage, federal regulations and government sponsored health care for certain groups. Second, while working on the health care crisis, President Clinton simultaneously tackled other policy reforms, delaying the health care reform legislation. As a result, critics were able to "gather momentum and put together their attack." Third, the Clinton administration faced funding issues. Who should pay for the health care program? Zelizer believes that the current conditions are more favorable for health care reform today than during the Clinton adminstration. He predicts that President Obama will successfully implement health care reforms if he learns from past mistakes. However, Zelizer encourages the President to reach an agreement quickly on how to finance the reforms and to market health care reform so that it is impervious to most criticisms.
Today, the health care industry made another important concession regarding insurance premiums. Karen Ignagni, president of America's Health Insurance Plans, offered to end higher premiums for women. The rationale behind insurance companies charging higher premiums for women is that women are more likely to visit doctors, take prescribed medications and typically cost more during child-bearing years. Women were typically charged 25%-50% more than men for identical coverage plans. However, many politicians did not agree with the policy. This is the third major concession made by insurers. Late last year insurers agreed to accept all customers, "regardless of illness or disability." Earlier this year, insurers agreed to end higher premiums for sick customers. Ignagni, speaking on behalf of the health care industry, stated that "the industry would accept aggressive federal regulation, but would resist creation of a government-run insurance program," similar to that proposed by the Obama administration. So, while the industry is willing to make internal reforms, it is unwilling to support government sponsored health coverage. Hopefully, the government and the health care industry will reach an agreement that will benefit both sides.
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