Research Briefing

Chaos V

July 2009

Posted by: Research

Think Stakeholders In Health Care Industry On Board With Government-Run Health Care? Think Again

DEAL BREAKER: PELOSI WANTS TO SQUEEZE MORE MONEY FROM HEALTH CARE PROVIDERS

Despite So-Called “Deals,” House Speaker Nancy Pelosi Says Industries Should Fork Over More “Savings.” “Pelosi also told POLITICO she will push to ‘drain’ more savings from the medical industry — hospitals, pharmaceutical companies and health insurers — than they have given up under current health-reform agreements with the Senate and White House. Asked whether she believes the industry players will wind up contributing more to the package, Pelosi replied: ‘I don’t know. I know they can, to the extent that the special interests are willing to cooperate. ... They could do much better. ... Frankly, I think all the money [to pay for health reform] could be drained from the system, if they were willing to do that.’” (Mike Allen, “Nancy Pelosi: Make Millionaires Pay For Health Care,” Politico, 7/20/09)

OBAMA VS. OBAMA: HOUSE DEMS’ BILL BREAKS “DEAL” WITH DRUG COMPANIES

JUNE 20: Obama Praises So-Called “Deal” With Pharmaceutical Industry As “Important Part” Of Reform. “I am pleased to announce that an agreement has been reached between Senator Max Baucus and the nation's pharmaceutical companies that will bring down health care costs and reduce the price of prescription drugs for millions of America's seniors … The agreement reached today to lower prescription drug costs for seniors will be an important part of the legislation I expect to sign into law in October.” (President Barack Obama, Statement From President Obama On Agreement To Bring Down Drug Prices For Americans Seniors, White House, 6/20/09)

JULY 14: Obama Strongly Approves Of House Democrats' Bill: I thank Chairmen Rangel, Waxman, and Miller for their hard work on this bill that fundamentally reforms the health care system. As this process moves forward, I look forward to continuing to work with all House members in ensuring this legislation helps all Americans ..." (President Barack Obama, Statement By The President On The Health Care Reform Legislation Introduced In The House Today, White House, 7/14/09)

JULY 14: Pharmaceutical Drug Industry Group Comes Out Against House Democrats’ Bill. “PhRMA cannot support the Tri-Committee bill but we believe that patient-centered health care reform is still on the right track to becoming law … [W]e support public policies aimed at encouraging biomedical research and innovation to improve the lives of patients and foster a successful life sciences sector, which directly employs millions of American workers. Unfortunately, the House Tri-Committee bill fails to meet these criteria. Of particular concern are changes to the Medicare Part D benefit, which constitute a tax increase on seniors ...” (“PhRMA Statement On House Tri-Committee Health Reform Bill,” Press Release, 7/14/09)

DOCTORS ACROSS THE COUNTRY MOBILIZING AGAINST DEMOCRAT PLAN

Surgeon Groups Opposing Government-Run Health Care. “The American Association of Neurological Surgeons and Congress of Neurological Surgeons issued a statement opposing the legislation, citing their stances against the creation of a government-run health insurance plan and in favor of medical malpractice reform measures rejected by Democrats. Likewise, a letter opposing the House Democratic bill is circulating among state-based medical societies. The missive could land in Capitol Hill inboxes on Monday.” (Jeffrey Young, “Surgeons Endorse House Healthcare Bill,” The Hill, 7/17/09)

State Doctors’ Associations Fighting Government Takeover Of Health Care. "[A] coalition of state medical associations and specialty organizations is breaking from the country's largest physicians' group to mount its own push against the inclusion of a public insurance option in any overhaul bill ... The draft letter, written by members of the Medical Association of Georgia, says flatly that the physicians' groups unequivocally oppose a government-administered insurance plan, as well as use of government- funded effectiveness tests, or 'comparative effectiveness research,'  to dictate which medical procedures should be eligible for coverage.” (Carrie Dann, "Physician Unrest Flares Over AMA Stand," National Journal, 7/16/09)

OBAMA LOVES MAYO CLINIC, BUT MAYO CLINIC HATES GOVERNMENT-RUN HEALTH CARE

Obama Praises Mayo Clinic For Their High-Quality, Low-Cost Care. “The Mayo Clinic -- everybody has heard of it -- it's got some of the best quality care in the world, people fly from all over the world to Rochester, Minnesota, in order to get outstanding care. It turns out that Mayo Clinic oftentimes provides care that is as much as one-third less expensive than the average that's provided or some other health care systems that aren't doing as good of a job.” (President Barack Obama, “ABC ‘Prescription For America’ Town Hall On Health Care,” 6/24/09)

Despite So-Called “Deal” With Hospitals, Mayo Clinic Opposes Government-Run Health Care. “[L]awmakers are on track to approve across-the-board federal payment reductions of $155 billion over 10 years for hospitals, reflecting a deal reached recently by major hospital groups, the White House and Senate Democrats ... Mayo and similar health systems object to the sweeping cuts. ‘Across-the-board cuts will be harmful to everyone and we think it is particularly bad to penalize the high-value organizations,’ said Jeff Korsmo, executive director of the Mayo Clinic Health Policy Center. ‘We will have to violate our values in order to stay in business and reduce our access to government patients.’ [emphasis added] As a result of low reimbursement rates, Mayo’s Arizona operations in 2007 stopped accepting new Medicare patients seeking primary care. About half of Mayo’s patients are on Medicare.” (Phil Galewitz, “’Model’ Health Systems Press Case For Medicare Fix In Reform,” Kaiser Health News, 7/20/09)

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