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New Health Reform Plan Would Insure Everyone

Posted on: Thursday, 19 February 2009, 15:45 CST

A new report released on Thursday by the Commonwealth Fund Commission on a High Performance Health System proposed creating a major new public health program and government-operated insurance exchange as part of a plan to expand coverage and rein in health care costs.

The report details the Commission's recommendation for an integrated set of policies and assesses the impacts of specific policy actions from 2010 to 2020, compared to the status quo.

The report, titled: “The Path to a High Performance U.S. Health System: A 2020 Vision and the Policies to Pave the Way” was drafted in hopes that the Obama administration and lawmakers will consider the ideas as they move forward with plans for major changes in the health care system.

The report calls for a mix of public and private insurance options over the idea of a fully government-run health system.

The proposal would call for every American to have some form of public or private health insurance, and one choice would be a new nationwide government program for anyone under 65, when eligibility for the existing Medicare program begins.

The group's Cathy Schoen said over 40 million people would be expected initially to sign up for the new program.

“Windows of opportunity for real health reform do not stay open long. The Commission has laid out a challenging but navigable path to a more secure future,” she said.

The government would also operate an insurance exchange providing people with the option of comparing coverage and choosing among a menu of private insurers or the new public program.

The plan envisions wide adoption of health information technology, greater disease prevention efforts and insurance payment changes that reward efficiency and penalize waste.

The proposal is designed to achieve nearly universal insurance coverage while enhancing the quality of the health care system and controlling costs, commission leaders said.

Dr. James Mongan, president and CEO of Partners HealthCare System Inc in Massachusetts, who headed the Commonwealth Fund commission that drafted the proposal, said their aim is not to move away from the private insurance industry.

Around 15 percent of Americans had no health insurance in 2007, a total of 45.7 million people, according to U.S. Census Bureau figures. Within two years, only about 1 percent of Americans would remain uninsured under the new proposal.

A government report released in January, representing 16.2 percent of U.S. gross domestic product, showed that Americans spent $2.2 trillion on health care in 2007.

The Commonwealth Fund acknowledged that health spending would continue to increase, but the rate of increase would be slower than current projections over the next decade.

The plan would reduce annual growth from a projected 6.7 percent to 5.5 percent and save a cumulative total of about $3 trillion by 2020.

"To improve health and enhance our family and national security, we need to invest in substantial reforms," said Commonwealth Fund President Karen Davis.

"With our economy in crisis, health costs squeezing family budgets, and coverage deteriorating, we can't afford to continue on our current path. The Commission has laid out a pragmatic strategy that could rapidly move us in more positive directions—if we start now."

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On the Net:

• Commonwealth Fund Commission on a High Performance Health System
• The Path to a High Performance U.S. Health System: A 2020 Vision and the Policies to Pave the Way

Source: redOrbit Staff & Wire Reports

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