Congressman Jim Cooper- "Unpacking Health Care Reform"

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Jim Cooper's presentation at Naked Hospital 2010- "Unpacking Health Care Reform"

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Unpacking Health Care Reform

Congressman Jim Cooper (TN-05)

May 24, 2010

Congressman Jim Cooper

Aug. 26, 2010

Who is Jim Cooper?

My favorite

animal

© Jim Cooper 2008. All rights reserved.

Published in

2006 to warn

Americans of

our true debts

You get your

favorite

company’s

annual report;

why not your

favorite

country’s?

A “Blue Dog” Democrat, a Centrist

#5 on Speaker Pelosi’s bad list

#3 on Tea Party’s bad list

Questions about Health Care

1. Can we afford it?

2. Is it too radical?

3. Is it big government?

4. Is it worth it?

What works?

• 40% behavior

• 30% genetics

• 15% social conditions

• 10% remedial health care

• 5% environment

Steven A. Schroeder, M.D., We Can Do Better – Improving the Health of

the American People, New England Journal of Medicine, 357:12, p. 1221,

Sept. 20, 2007.

Entire health bill could have

been two words:

Diet and exercise

U.S. health care BEFORE reform

0

5

10

15

20

25

5 15 25 35 45 55 65 75 85 95 105

Medicaid: 60 million

Medicare:

44 million

Private Health

Insurance:

160 million

Uninsured: 47 million

Mill

ion

s o

f A

me

rica

ns

Age Cohorts

A typical life story

0

5

10

15

20

25

5 15 25 35 45 55 65 75 85 95 105

Medicaid: 60 million

Medicare:

44 million

Private Health

Insurance:

160 million

Uninsured: 47 million

Mill

ion

s o

f A

me

rica

ns

Age Cohorts

U.S. health care BEFORE reform

0

5

10

15

20

25

5 15 25 35 45 55 65 75 85 95 105

Medicaid: 60 million

Medicare:

44 million

Private Health

Insurance:

160 million

Uninsured: 47 million

Mill

ion

s o

f A

me

rica

ns

Age Cohorts

U.S. health care AFTER reform

0

5

10

15

20

25

5 15 25 35 45 55 65 75 85 95 105

Medicaid: 75 million

Medicare:

44 million

Private Health

Insurance:

182 million

Uninsured: 15 million

Mill

ion

s o

f A

me

rica

ns

Age Cohorts

Timetable for Health Reform

Look for adjustment

legislation annually

Total Elderly

http://www.worldmapper.org/display.php?selected=6

Private Health Spending

http://www.worldmapper.org/images/largepng/214.png

What is right amount of care?

Physician Patient Business

Professional Ideals:

Everyday goal

Hippocratic Oath:

Do no harm;

Patient comes first

Survival Instinct:

Get well soon;

Right to health

care?

Optimization:

Marginal cost =

marginal benefit

Scarce resources

Ideal in economic

terms

$1.00 of care = Zero

benefit

$1.00 of care =

$0.10 of benefit

$1.00 of care =

$1.00 of benefit

Ideal stated

negatively

$-0.01 of harm is

not worth it

$0.09 of care is not

worth it

$0.99 of care is not

worth it

Greatest fear Don’t lose patient Don’t pay retail Don’t waste $$$$

1. Can we afford it?

Cost of delay: ~$8 billion a day?

Costs more to argue

than to solve the problem!

Private Health

insurance

Health

CMS Actuary Report 4/22/10

We must slow the rate of growth

of health spending by 1% or 2%

In Washington, that means

“cutting spending”

© Jim Cooper 2008. All rights reserved.

Moody’s

• “If no policy changes are made, in 10 years from now we would have to look very seriously at whether the U.S. Treasury bond is still a triple-A credit.”

• “The U.S. rating is the anchor of the world’s financial system. If you have a downgrade, you have a problem.”

• Medicare and Medicaid are the “cause of major fiscal pressures.”

– Steven Hess, Lead Analyst for U.S., Moody’s,

Jan. 11, 2008 (Now the outlook is much worse!)

“Preserving debt

affordability at levels

consistent with Aaa

ratings will invariably

require fiscal

adjustments of a

magnitude that, in

some cases, will test

social cohesion.”

- Moody’s Report, March 2010

Health reform slows Medicare growth

1. Reform bill “cuts” Medicare spending growth

by about $50 billion annually (largest

Medicare cuts ever!)

– If you want more, support more, not less

2. U.S. health care is wasting $700 billion

annually

– It is possible to cover everyone and save money

– But we’ll have to watch it like a hawk!

Cost of

health

care reform

Cost of

health

care reform

Key Budget Tools

� Entitlement reform: Fiscal Commission

� Pay-as-You-Go: 1990-2002, restored 2010

� Discretionary Spending Freeze: Obama Budget

– The least we can do; I support 5% cuts

4. Stop digging deeper holes

– “Fun” deficit spending: SGR, AMT, Estate Tax, etc.

5. Adopt accrual accounting for federal gov.

6. Stop all “earmarks,” not just to corporations

Upcoming vote on Medicare doctor

pay will have more deficit impact

than all of health reform

$300 billion over 10 yrs.,

$4.2 trillion for permanent fix

2. Is it too radical?

Death

Panels!

Baby killers!

Affordable Care Act is not radical

• Similar to Richard Nixon’s 1970 health plan

• Similar to Republican health plan in 1990s

– Dozens of Republican Senators supported it

• Obama adopted the central plank of McCain’s

health reform plan of 2008

– Scored by CBO to lower deficits

• Similar to Howard Baker, Bob Dole, Tom

Daschle principles for reform in 2009

"I like the bill" - Bill Frist,

at American Hospital Association April 2010

“It's an important step. The provisions related to

changing provider payments are significant in terms

of their potential for reducing spending growth...”

- Mark McClellan,

former head of Centers for Medicare and Medicaid under President Bush, a day after the bill passed.

Repeal?

Improve

?Hospitals,

AMA,

Nurses,

Nuns,

AARP,

Phrma

3. Is it big government?

Reagan Clinton

We

Need

Cuts

We

Need

Cuts

Only Nixon could go to China

Opposites attract:

© Jim Cooper 2008. All rights reserved.

but barely

touched it

as President.

Bush made

it worse!

Only a liberal can reform entitlements?

4. Is reform worth it?

Cooper-Breaux

Wyden-Bennett

Voted for

Senate

Health Bill

Voted against

Side Car(reconciliation)

Biggest

Medicare

“cuts” in history,

plus Cadillac tax

Deloitte, Prescription for change ‘filled’: Tax provisions in the Patient Protection and

Affordable Care Act, March 23, 2010

Senate Health Bill Side Car

Cadillac Tax

High

Net-

Worth

Taxpayers

Thomas Gryta,

WSJ, April 13, 2010

TN is in the Bottom Quintile

Ranking from data collected January 2, 2009 – December 30, 2009

Tennessee is not

on this list! Yet!

You decide

So is this

good medicine?