Patient Centered Health Care Patient Centered Health Care – At a Crossroads– At a Crossroads

Alliance for Health ReformAlliance for Health Reform

Congressman Tom Price, Congressman Tom Price, M.D.M.D.

June 6, 2008June 6, 2008

Patient-Centered Patient-Centered HealthcareHealthcare

AFFORDABLEAFFORDABLE ACCESSIBLEACCESSIBLE RESPONSIVERESPONSIVE INNOVATIVEINNOVATIVE HIGHEST QUALITYHIGHEST QUALITY

MEDICAREMEDICARE

NOT AFFORDABLENOT AFFORDABLE NOT ACCESSIBLENOT ACCESSIBLE NOT RESPONSIVENOT RESPONSIVE NOT INNOVATIVENOT INNOVATIVE NOT HIGHEST QUALITYNOT HIGHEST QUALITY

Fails patients on all counts:Fails patients on all counts:

Medicare Is NOT the Model for Medicare Is NOT the Model for ReformReform

The Crossroads – The Crossroads – Today’s Health Care Today’s Health Care

Debate in Debate in WashingtonWashington

VSVS

Washington-Controlled Washington-Controlled Health CareHealth Care

Social Security Amendments of Social Security Amendments of 19651965

““Nothing in this title shall be Nothing in this title shall be construed to authorize any Federal construed to authorize any Federal officer or employee to exercise any officer or employee to exercise any supervision or control over the supervision or control over the practice of medicine or the manner practice of medicine or the manner in which medical services are in which medical services are provided….”provided….” (Public Law 89-97)

The legislation establishing Medicare and Medicaid

Consumer Payments

Personal Health

Inurance

Other Private Funds

Gov't Funds

46.7%46.7%

24.6%24.6%

7.3%7.3%

21.3%21.3%

Other Private Funds

Consumer Payments

Personal Health

Insurance

Gov't Funds

45.1%45.1%

12.5%12.5%

34.9%34.9%7.1%7.1%

19601960 20052005

Sources of Health Care Sources of Health Care SpendingSpending

Source: Centers for Medicare & Medicaid Services, National Health Expenditures by type of service and source of funds, CY 1960-2005

Historical Gap Between Historical Gap Between Budget Estimates and Actual Budget Estimates and Actual

Medicare CostMedicare Cost When Medicare was enacted in 1965 When Medicare was enacted in 1965

the government projected far lower the government projected far lower spendingspending

Initial 1990 Initial 1990 Spending Spending ProjectionProjection

$9 billion$9 billion

Actual Actual 1990 1990

MedicareMedicare SpendingSpending

$67 billion$67 billionSource: U.S. House of Representatives, Committee on Ways and Means, Committee Print, July 30, 1965, Table 11, p. 33.

Medicare Medicare Spending Spending

TodayToday

$450 $450 billionbillion

Rising Cost of Health Rising Cost of Health CareCare

DEFINED DEFINED CONTRIBUTICONTRIBUTIONON

UNIVERSAL UNIVERSAL COVERAGECOVERAGE

TWO PILLARS OF TWO PILLARS OF

HEALTH SYSTEM HEALTH SYSTEM REFORMREFORM

The Comprehensive The Comprehensive HealthCARE Act (H.R. 2626)HealthCARE Act (H.R. 2626)

Universal Personal Coverage – Lower Universal Personal Coverage – Lower CostCost

Tax Credits – Refundable/Advanceable for Tax Credits – Refundable/Advanceable for Purchase of Personal InsurancePurchase of Personal Insurance

Tax Deductions For Health Insurance CostsTax Deductions For Health Insurance Costs Create Interstate Market for Health InsuranceCreate Interstate Market for Health Insurance Create various Pools for PurchaseCreate various Pools for Purchase

The Comprehensive The Comprehensive HealthCARE Act (H.R. 2626)HealthCARE Act (H.R. 2626)

Defined Contribution SystemDefined Contribution System

Real Patient OwnershipReal Patient Ownership Increased PortabilityIncreased Portability Insurance ResponsivenessInsurance Responsiveness Greater Understanding and PowerGreater Understanding and Power Choices for PatientsChoices for Patients!!!!