Research Briefing

Doctors “Anxious” And Job Creators “Irritated”

OBAMACARE CONTINUING TO SQUEEZE CARE PROVIDERS …

Kansas Hospital Association Executive Director: “If I Had To Sum Everything Up In One Word, It Would Be ‘Anxious.’” (Dave Ranney, “Hospital Chiefs Nervous About Consequences From Health Reform,” KHI News Service, 4/19/10)

• Kansas Hospital Will Lose $600 Per Patient On Cancer Medication Through Medicare Changes, Making Budget Shortfalls Worse. “‘The expectation is that we’ll somehow make it up in volume,’ Dennis George, chief executive at Coffey County Hospital in Burlington, said. ‘That really worries me.’ He noted that Neulasta, a prescription drug for cancer patients, costs the hospital $2,700. ‘Medicare pays us $2,100 – and we belong to the third largest purchasing group in the nation. It’s not like we can get it cheaper somewhere else,’ he said. ‘So even though this patient and this procedure are covered, I still have a shortage of $600 that I have to make up. Somewhere in my books, I have to have positive resources to cover that $600.’” (Dave Ranney, “Hospital Chiefs Nervous About Consequences From Health Reform,” KHI News Service, 4/19/10)
•  Kansas To Add 100,000 New Medicaid Enrollees, But Doctor’s Are Already Rejecting Patients In The Overcrowded Program. “Starting in 2014, thousands of uninsured Kansans will be covered through their employer-sponsored plans, government subsidized insurance or Medicaid… Whether the coverage will be enough to cover their costs remains to be seen. According to Kansas Health Policy Authority officials, as many as 100,000 additional adults could be added to the Medicaid rolls… In many parts of the state, physicians and clinics already refuse new Medicaid patients because reimbursements don’t cover their cost, they’re full or both.” (Dave Ranney, “Hospital Chiefs Nervous About Consequences From Health Reform,” KHI News Service, 4/19/10)

ObamaCare Will Worsen Oregon’s Doctor Shortage, Meaning “Access Will Be Even Harder.” “Family doctors are already in short supply, and now there are predictions the shortage is going to get even worse. The Association of American Medical Colleges predicts a shortage of 150,000 doctors in the next 15 years. The Regional Vice President of PeaceHealth Medical Group in Eugene, Henry Veldman, says he's hearing even bigger numbers. … Veldman says with millions of more people having insurance under recently passed health care reform, access will be even harder.” (David Walker, “Oregon's Doctor Shortage Expected To Grow,” katu.com, 4/19/10)

HIT JOB CREATORS …

Tanning Salon Owner From Valparaiso, IN: “I’m Really Irritated With It… I Really Think It's Going To Hurt The Small Mom And Pop Shops.” (Bob Kostanczuk, “Tanning Tax Fires Up Area Salon Owners,” Gary Post-Tribune, 4/20/10)

• Owner: “I’m Going To Have To Pass It On To The Customers Because We Don’t Have The Profit Margins; We Don’t Have The Room To Eat That Tax. Ten Percent’s A Pretty Good Cut. I’m Going To Call It The Obama Tax.” (Bob Kostanczuk, “Tanning Tax Fires Up Area Salon Owners,” Gary Post-Tribune, 4/20/10)

Tanning Salon Owner From Crown Point, IN: “Ten Percent Is Not That Much, But It Does Add Up…” (Bob Kostanczuk, “Tanning Tax Fires Up Area Salon Owners,” Gary Post-Tribune, 4/20/10)

Tanning Salon Owner From South Haven, IN: “We All Agree That It's Extremely Unfair…” (Bob Kostanczuk, “Tanning Tax Fires Up Area Salon Owners,” Gary Post-Tribune, 4/20/10)

ObamaCare Could Cost Drug Maker Eli Lilly $400 Million In 2010 And $700 Million In 2011 Because Of Several New Costs. “Eli Lilly & Co.'s (LLY) reported a 5% decline in first-quarter earnings and lowered its financial forecasts due to costs related to the new U.S. health-care overhaul. The Indianapolis drug maker predicted the overhaul, which requires drug makers to pay higher rebates to the Medicaid government health program for the poor, among other measures, will reduce its 2010 revenue by $350 million to $400 million, and 2011 revenue by $600 million to $700 million.” (Peter Loftus, “3rd UPDATE: Eli Lilly 1Q Net Drops 5%; Year View Cut On Health Reform,” Dow Jones Newswires, 4/20/10)

• “The Immediate Costs Of Reform To Lilly Were $60 Million In Higher Medicaid Rebates For The First Quarter, And An $85 Million Charge For A Change In Tax Treatment For Retiree Drug Benefits.” (Peter Loftus, “3rd UPDATE: Eli Lilly 1Q Net Drops 5%; Year View Cut On Health Reform,” Dow Jones Newswires, 4/20/10)
• “The Lilly Numbers Signal That Other Major U.S. Drug Makers Could Face Substantial Costs Due To The Implementation Of Reform...” (Peter Loftus, “3rd UPDATE: Eli Lilly 1Q Net Drops 5%; Year View Cut On Health Reform,” Dow Jones Newswires, 4/20/10)

AND PENALIZE THE UNINSURED

Uninsured Will Be Forced To Buy Health Insurance Or Pay A Penalty, But “From A Pure Dollars-And-Cents Point Of View, It Is Cheaper For People Just To Pay The Penalty.” “From a pure dollars-and-cents point of view, it is cheaper for people just to pay the penalty. Even when fully implemented in 2016, the penalty is limited to no more than 2.5 percent of taxable income, and it starts out even lower, with a penalty of $95 or 1 percent of income in 2014. ‘It’s hard to analyze because people are making health decisions based on their wallets,’ said Sara Horowitz, who founded the Freelancers Union, a nonprofit organization that offers health insurance to freelancers.” (Roni Caryn Rabin, “Benefit For Uninsured May Still Pose Hurdle,” The New York Times, 4/19/10)

Since Health Insurance Is “A Lot Of Money,” Many Of The Uninsured Still Won’t Be Able To Afford It. “William Mann of Pittsburgh earns just enough to get by. … He is just the kind of person who should benefit from the health care overhaul, and he is, in fact, eligible for heavily subsidized insurance that will cost him an estimated $1,845 a year, while the government contributes about $2,756. … ‘I just can’t put that kind of money out for a “maybe” — maybe I’ll get sick and use it,’ said Mr. Mann, who makes just over $25,000 a year as an administrative assistant at a small wine distribution company. ‘That’s a lot of money.’” (Roni Caryn Rabin, “Benefit For Uninsured May Still Pose Hurdle,” The New York Times, 4/19/10)