Posts Tagged ‘Affordable Care Act’

Spring 2013: You Are Key to a Better Way

May 22nd, 2013

Dear California OneCare Supporters,

I live at the northeast edge of the Sacramento Valley, one of the richest agricultural areas in the world, where the beginning of spring heralds an explosion of blossoms. We look forward to it every winter and revel in it until we’re overcome by sneezing and coughing, as pollen fills the air and allergies are triggered. That floral beauty comes at a high price.

Which brings me to the expectations Americans have had for the Affordable Care Act, also known as ACA or Obamacare. Although ACA will dramatically expand Medicaid coverage and provide some other necessary improvements in health care, many health policy researchers now recognize that it is not the solution to our health care crisis. It does NOT control rising costs and, even after it is fully implemented, over 3 million Californians will still lack health care (CBO Report).

As single payer avtivists have said all along, access to health insurance is not the same as access to health care. For the uninsured, who will be mandated to purchase insurance, high co-pays and deductibles will render it too expensive since no cost controls are included in ACA. The reality is that, since the insurance industry strongly influenced the drafting of the legislation that created ACA, it follows that they will benefit the most from its implementation. In fact, they’re already looking to take advantage of loopholes that benefit them (click here).

As Californians recognize more and more that ACA is much less than the solution to our health care maze, and will cost a lot more than they expected, we have an opportunity to let them know there is a better way.

Call it single payer or call it Medicare for All Californians. Whatever we call it, now is the time to recharge our campaign and make sure that more Californians understand how it differs from ACA and, importantly, how it can build upon it.

Working with California Health Professional Student Alliance and Physicians for a National Health Plan – California, we are moving ahead with our plan to win health care justice by 2017*. We’re now enlisting other statewide organizations as partners in a broad and diverse coalition, dedicated to bringing single payer to all Californians.

There’s no single way to make this happen, so we offer different opportunities for you to show your support and build the movement:

1. Like us on Facebook. Believe it or not, this increases our visibility and public support for the movement.

2. Become a monthly donor. It’s an easy, convenient and efficient way to help the campaign. It ensures dependable monthly support that allows us to focus on what matters – strengthening the movement for a single payer health care system in California. Plus, you can ignore any future fundraising messages you receive from us – guiltfree!

3. Ask three friends to sign up on the California OneCare website (click here).

4. Follow your passion. Get together with a like-minded friend and start a OneCare Team in your community. For more information or if you need help finding others in your area who may be interested, give me a call at 530-892-1333.

By the way, guess what industry benefits from all that sneezing and coughing up my way?
That would be the Pharmaceutical Industry, another beneficiary of ACA.

I look forward to hearing from you and working with you to do what we ought to have done decades ago – create an affordable, cost effective health care system that covers everyone with comprehensive benefits.

Thank you for your continuing support of this important work.

Sincerely,

Jeanne Ertle
Vice Chair, Board of Directors, California OneCare

* This is the date that ACA allows states to apply for a State Innovation Waiver, which  will make it possible for California to set up its own single payer health care system.

Individuals and small companies likely to see health premiums jump next year

March 26th, 2013

Get ready for some sticker shock. The major health insurance companies say they plan to ratchet up premiums between 25% and 116% next year, once the Affordable Care Act is fully up and running. Small businesses and people who buy coverage on their own will be affected. The insurers say they’ll have to charge more because of new requirements in the law that expand benefits, ban discrimination of people with pre-existing conditions, and restrict how much older patients can be charged. But the Obama administration says subsidies and increased competition should force prices down. But the fact is, no one would have to worry at all about premium increases if the government would just allow everyone into Medicare.

Sylvia@californiaonecare.org

 

The American healthcare racket

March 12th, 2013

If you haven’t yet read Steven Brill’s comprehensive investigative piece for TIME Magazine about why healthcare costs are so high, it’s well worth taking the time to digest the 80-plus pages. The article is an indictment of our for-profit healthcare system, shining a spotlight – not on insurance companies – but on supposedly “not-for-profit” hospitals. According to Brill’s investigation of patients’ bills, hospitals are vastly overcharging for routine tests and basic supplies, costing patients and taxpayers billions of dollars and stuffing the hospitals’ bottom line. Pharmaceutical and medical device companies are also dining at the trough, their obscene profits kept afloat by Congressional lawmakers who receive fat campaign contributions by those same companies.

Unfortunately, the Affordable Care Act, Brill writes, won’t do anything to rein in these costs. Instead, Brill predicts the ACA will eventually cause insurance premiums to soar. Brill’s investigation is more proof that the American healthcare system is a racket and is no longer sustainable. The healthcare industry’s insatiable greed is stripping the meager resources of Americans who have seen their wages stagnate over the last 30 years. Our nation will soon become bankrupt if we don’t reject the idea that health care should be up for sale. Expanding Medicare to everyone in the United States is the only way to stop the gouging.

Sylvia@californiaonecare.org

 

Consumer savings from the Affordable Care Act so far a mixed bag

December 21st, 2012

There was much fanfare in the mainstream media over news that Americans saved $1.5 billion thanks to the Affordable Care Act, according to a study by the New York-based Commonwealth Fund. Those savings came about as a result of a new ACA regulation requiring health insurance companies to spend at least 80 percent of premium dollars on actual health care. This financial measure is known as the medical loss ratio (MLR). Health insurance companies that didn’t meet the new rule had to send back the $1.5 billion in the form of rebates to consumers. On its face, this sounded like a win for consumers. However, the real effect of the new MLR rule was more mixed, the study concluded. Although consumers with health coverage in the individual market did see some benefit, for those in small and large-group plans, not so much:

Although the MLR rule, along with other market and regulatory factors, prompted reductions in administrative expenses in all three market segments, in the group markets it appears that insurers were able to retain those cost reductions in the form of increased profits, rather than passing them on to consumers in the form of reduced premiums. By contrast, both administrative costs and profits dropped in the individual market, indicating that consumers benefitted in the form of restrained premium increases. Premiums did increase somewhat, because of the growth in medical costs, but the increases were less than medical cost increases.

Los Angeles-based Consumer Watchdog, pointed to the results of the study as proof that the government needs to do more to regulate premium rate increases.

“Absent rate regulation, health insurers are gaming the health reform law to keep premiums high and increase profits. Health insurers should be required to open their books and justify their charges – including why they haven’t passed on to consumers nearly one billion dollars in savings,” said Carmen Balber, Washington DC director for Consumer Watchdog.

Unlike in some other states, California’s insurance commissioner doesn’t have the power to reject unreasonable rate hikes. Assembly Bill 52, authored by Assemblymember Mike Feuer, would give the insurance commissioner that regulatory authority. Unfortunately, the bill could never make it out of the state Senate, and Feuer decided to shelve it last year. Now that state Democrats are on their way to gaining a supermajority in both houses of the state legislature, there may be hope for a revival of AB 52.

But rate regulation isn’t a panacea. It’s great that some consumers are getting financial relief from Obamacare. However, we can do much better. California could do away with insurance rates altogether by providing health care to all residents as a public service rather than as a commodity. The savings to our state would be far greater.

Sylvia@californiaonecare.org