Tag: "ObamaCare"

Federal Courts Zig and Zag on Obamacare Tax Credits

index1Obamacare opponents’ hearts rose this morning, as a three-judge panel of the DC Circuit Court of Appeals struck down the power of federal Obamacare exchanges to pay out tax credits to health insurers who sign up beneficiaries for subsidized Obamacare coverage. Because most states declined to set up their own Obamacare health insurance exchanges, subsidies to insurers would have come to a screaming halt in most of the country. Opponents have long hoped that such a decision would force the Administration back to the negotiating table with Congress.

However, merely a couple of hours later, the 4th Circuit Court of Appeals in Richmond, VA upheld the Administration’s position: That federal exchanges have the same powers as state exchanges to pay out subsidies to health insurers. The Administration plans to appeal the DC panel’s decision to the entire DC Circuit, en banc (i.e. all eleven judges).

Yippee! Medicare Won’t Go Bust Until 2030!

The latest Congressional Budget Office’s latest Long-Term Budget Outlook now asserts that Medicare’s so-called “Trust fund”. Talk about kicking the can down the road!

As the chart below shows, the problem is not that the “trust fund” will go bust in any given year, but that the federal government is borrowing money to finance consumption. “Other non-interest spending” includes major infrastructure and defense, tasks which constitutionally and under a proper economic understanding fall to the federal government. These were the purposes for which the Founders gave Congress the power to borrow money in the people’s name. Borrowing to finance seniors’ healthcare consumption does nothing for future generations’ prosperity.

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Healthcare Prices Jumped 50 Percent Year on Year from 12-Month Moving Average

The Altarum Institute is the go-to source for understanding healthcare prices and employment. According to its latest report:

Health care prices in May 2014 were 1.8% higher than in May 2013, well above the 12-month moving average of 1.3%. Hospital prices grew 2.1% while prescription drug prices rose 3.6%.  Physician and clinical services prices, which exhibited near-zero growth in the first quarter of 2014, grew by 0.6%. Health care gained 21,000 jobs in June 2014. Over the first half of 2014, the health sector grew by over 20,000 jobs per month, about 20 percent higher than in the first half of 2013.

Prices of prescription drugs jumped higher than prices of other healthcare goods and services. Further, healthcare prices continue to grow significantly faster than the Consumer Price Index (CPI). Exhibit 7 illustrates how ineffective Obamacare is at restraining costs: Per capita healthcare utilization increased at about 5.5 percent (year on year) in the first half of 2002, well before the December 2007 onset of recession, and dropped until the end of 2010. The growth of consumer-driven health care, including Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs) remains the most plausible explanation for this effect.

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How Many Uninsured Texans Signed Up For Obamacare? Maybe 3 Percent of Those Eligible

The Left often attacks Texas as a holding pen of uninsured people. 5.7 million residents do not have health insurance. Yet only 733,757 signed up for Obamacare. And many of them dropped or lost insurance that they had before Obamacare launched. John Davidson of the Texas Public Policy Foundation figures that maybe only three percent of eligible, uninsured Texans signed up for Obamacare. According to Davidson, “The most likely reason is cost. Premiums on the exchange are significantly higher than average pre-ACA premiums on the individual market in Texas. Although subsidies offset these premium costs for some Texans, those earning about 250 percent of the federal poverty limit (FPL), or $29,175 per year, cannot expect their subsidy to significantly reduce premiums.”

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Headlines I Wish I Hadn’t Seen

doctor-mom-and-son70 percent of physicians spend more than one day per week on paperwork; up from 58 percent in 2013.

Colorado: 1 in 4 Obamacare enrollees plan to drop out.

Hospital elevator buttons carry more bacteria than toilet seats.

Teen suicide attempts rise as warning cuts medicine use.

The same people who fumbled Obamacare have custody of the flood of illegal immigrant children.

 

Who’s Your Doctor?

Over at Forbes, Bruce Japsen reports that the Affordable Care Act is boosting demand for primary care providers. As we’ve said before, Obamacare does nothing to boost physician supply. The millions of newly insured will increase their demand for medical care — and someone has to provide it. This has caused a Gold Rush of sorts among medical practices and hospitals scrambling for primary care providers.

Physician staffing firm, MerrittHawkins reports primary care providers — family physicians and internists tops the list. The number of requests for nurse practitioners and physicians’ assistants it’s been ask to recruits is up more than three times (i.e. 320 %). Advance practice nurses and physicians’ assistants didn’t even make the top 20 of most recruited medical practitioners three years ago. Here’s the current list.

In many cases, increased use of nurse practitioners and physician assistants can provide high quality care at reduced costs. I have long advocated increasing these professionals’ scope of practice as an important part of innovation in delivering medical care. On the other hand, this should happen as a consequence of increased consumer-direction of healthcare spending, not as a response to increased government control, as imposed by Obamacare.

Headlines I Wish I Hadn’t Seen

Confident DoctorsObamaCare made me fire my doctor.

As health care law’s employer mandate nears, firms cut worker hours, struggle with logistics.

Insurers on New York’s exchange seeking significant rate increases.

Only 25 percent of patients are offered cost estimates before treatment

Injury, violence are leading causes of death for young Americans.

How Much Did ObamaCare Increase Your Premiums? A New County-By-County Calculator

The Manhattan Institute has published an interactive map that shows ObamaCare’s effect on premiums for individual health insurance in almost every U.S. county. On average, premiums have increased by 49 percent. However, there is huge variance:

Among men, the county with the greatest increase in insurance prices from 2013 to 2014 was Buchanan County, Missouri, about 45 miles north of Kansas City: 271 percent. Among women, the “winner” was Goodhue County, Minnesota, about an hour southwest of Minneapolis: 200 percent. Overall, the counties of Nevada, North Carolina, Minnesota, and Arkansas haven experienced the largest rate hikes under the law. (Avik Roy, Forbes)

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Reflections on Risk Adjustment, Reinsurance, and Risk Corridors in ObamaCare

fgdfgOn Wednesday, June 18, 2014, I had the pleasure of testifying at the House of Representatives’ Committee on Oversight and Government Reform’s Subcommittee on Economic Growth, Job Creation, and Regulatory Affairs. The subcommittee held a hearing it called “Poised to Profit: How ObamaCare Helps Insurance Companies Even If It Fails Patients.”

Much of my testimony was drawn from content in this blog. What struck me was the minority’s emphasis that these provisions, which protect insurers from losing money in ObamaCare, are designed to motivate insurers to offer coverage to sick people.

It is a well-worn talking point of ObamaCare’s supporters that insurers can no longer charge higher premiums or deny coverage to applicants who are expected to have higher health costs, or exclude coverage for pre-existing conditions. Obviously, no insurer will seek to cover these people just because the government wants it to. The market has to be structured to achieve that objective.

Hits and Misses

utyutruyMaryland hospital employees reduced infection errors by washing hands 90 percent of the time.

It will cost $240 million to fix five states’ failing ObamaCare exchanges.

One in five Americans is now dependent on Medicaid.

Big fat surprise: Government crusade against fat might have increased obesity.

Diagnostic breakthrough: Doctors identify disease-causing bacterium by sequencing DNA strands in patient’s spinal fluid.

After having burnt through $30 billion subsidizing providers’ electronic health records, the Office of the National Coordinator of Health IT wants to become a regulator.