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Solving America’s Health Care Crisis Presentation to The National Congress on Health Reform John C. Goodman September 22, 2008 National Center for Policy Analysis Making Ideas Change the World

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Page 1: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Solving America’s Health Care Crisis

Presentation to

The National Congress on Health Reform

John C. Goodman

September 22, 2008

National Center for Policy AnalysisMaking Ideas Change the World

Page 2: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Problems

CostCost QualityQuality AccessAccess

Page 3: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Thinking About Health Care

Queen of HeartsQueen of Hearts

Seven DwarfsSeven Dwarfs

Little Red Riding HoodLittle Red Riding Hood

Page 4: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Problems

CostCost

Page 5: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 6: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Medicare and Medicaid as a Percent of Federal Budget

Source: Congressional Budget Office.

Today 2025 2050

Page 7: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Marginal Federal Income Tax Rates Needed to Fund Current

Federal Programs in 2050

Source: Congressional Budget Office.

Upper-IncomeMiddle-Income

Page 8: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Illusory Solution

One-Time Cost Reduction

Page 9: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Health Care Spending

Time

$

One Time Policy Change

Old SpendingPath

New SpendingPath

Page 10: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Shifting Costs

Illusory Solution

Page 11: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Ratio of Physician Income to Average Worker Income

Source: Uwe E. Reinhardt, Peter S. Hussey and Gerard F. Anderson, “Cross-National Comparisons Of Health Systems Using OECD Data, 1999,” Health Affairs, Vol. 21, No. 3, May/June 2002.

United States Germany Canada Sweden United Kingdom

Page 12: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Choosing between Health Care and Other Goods and Services

Real Solutions

Page 13: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

From

Hillary Care 1.0

to

Hillary Care 2.0

Health Reforms That Don’t Work

Page 14: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Problems

CostCost QualityQuality

Page 15: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Quality

RAND study on Inadequate CareRAND study on Inadequate Care

IOM Study on Medical ErrorsIOM Study on Medical Errors

No Electronic Medical RecordsNo Electronic Medical Records

Page 16: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 17: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Why No Phone?

Page 18: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Why No Email?

Page 19: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Why No Computers?

Page 20: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Why Not Better Drug Advice?

Page 21: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Why No Patient Education?

Page 22: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

What is the Source of Every Major Problem?

Page 23: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

The Way We Pay Doctors

Page 24: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Payment for Physicians’ Services

90%Third-Party

Payers

10%Out-of-Pocket

Page 25: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

No Price Competition

No Quality Competition

Page 26: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery

Page 27: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery

Page 28: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery Walk-in ClinicsWalk-in Clinics

Page 29: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery Walk-in ClinicsWalk-in Clinics Telephone Consultation – for payTelephone Consultation – for pay

Page 30: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery Walk-in ClinicsWalk-in Clinics Telephone Consultation – for payTelephone Consultation – for pay Email Consultations – for payEmail Consultations – for pay

Page 31: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule

Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery Walk-in ClinicsWalk-in Clinics Telephone Consultation – for payTelephone Consultation – for pay Email Consultations – for payEmail Consultations – for pay Concierge DoctorsConcierge Doctors

Page 32: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Exceptions to the Rule Cosmetic SurgeryCosmetic Surgery Lasik SurgeryLasik Surgery Walk-in ClinicsWalk-in Clinics Telephone Consultation – for payTelephone Consultation – for pay Email Consultations – for payEmail Consultations – for pay Concierge DoctorsConcierge Doctors Medical TourismMedical Tourism

Page 33: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Illusory Solution

Paying for Performance

Page 34: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Paying for Performance

Buyers Setting the Quality Standards

Illusory Solution

Page 35: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Providers Compete for Patients Based on Price and Quality

Real Solution

Page 36: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

From

Hillary Care 1.0

to

Hillary Care 2.0

Health Reforms That Don’t Work

Page 37: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Problems

CostCost QualityQuality AccessAccess

Page 38: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 39: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Expanding Government Insurance Programs

Illusory Solution

Page 40: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Crowd Out: Percent of New CoverageOffset by a Decline in Private Coverage

Source: Jonathan Gruber.

Medicaid Expansion

(Low Estimate)

Medicaid Expansion

(High Estimate)

S-CHIP

Page 41: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Creating Access to the Private Marketplace

Real Solution

Page 42: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

From

Hillary Care 1.0

to

Hillary Care 2.0

Health Reforms That Don’t Work

Page 43: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 44: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 45: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 46: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Page 47: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

Remembering the Message

Queen of HeartsQueen of Hearts

Seven DwarfsSeven Dwarfs

Little Red Riding HoodLittle Red Riding Hood

Page 48: Presentation Material (Powerpoint)

National Center for Policy AnalysisMaking Ideas Change the World

National Center for Policy Analysis

Making Ideas Change the World