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Opinion
I had a friend — I'll call Sarah — who retired at 55. She had a good pension; her house was paid for and, although divorced for nearly 10 years, she lived fairly close to her two grown children and three grandchildren.
When Sarah retired she tried to get health insurance, but due to a condition she contracted in her early 40s no insurance company would offer her a policy. She was on COBRA for a while, but that became too costly.
When Sarah turned 60 she noticed a slight discomfort near her stomach. Because she had no insurance and hadn't seen a doctor in nearly five years, she went to the hospital emergency room. Sarah was diagnosed with cancer. She had surgery and used all of her savings. She had radiation and sold the art and jewelry she had collected over the years. She had six months of chemotherapy and sold her house to pay for the treatments.
Sarah passed away at 63, homeless and penniless because in her early 40s she had had a condition. In 2014 the Sarahs in America will begin to get some relief. In California, we don't have to wait.
The California Legislature has twice passed a single-payer health care plan that was vetoed twice by the governor. The Nevada County Democratic Central Committee passed a resolution in April 2009, “that a single-payer health care system administered by the federal government is the only prudent alternative to solve our current healthcare crisis.”
In the subsequent 15 months, the federal government did pass and President Obama did sign the most comprehensive health care reform in U.S. history, the Patient Protection and Affordable Care Act (PPACA) and the Health Care Reconciliation Act of 2010.
Although the PPACA may not be the solution many people sought as the favored solution to our health care crisis, it does provide the foundation on which to build a better alternative.
The single-payer system is one of four health system models described by noted author T.R. Reid. The National Health Insurance (NHI) model has private for-profit providers, but a public (nonprofit) payer. In Canada, which uses NHI, everyone pays a premium to their provincial government, and then sees their doctor for free. They call their system Medicare. In America, those over 65 have Medicare. It's also known as single-payer.
There are three other models known as Beverage, Bismark and Out-of-Pocket. Beverage is the model used by our veterans, health care paid for and administered by the government; Bismark is a private model used by over 150 million working Americans, and Out-of-Pocket is used by over 40 million Americans.
One problem in America is that using four systems for health care is highly inefficient. When T.R. Reid asked health ministers from around the world why they have “one-size-fits-all medicine,” he found three basic reasons: 1) It's simple and cheaper. 2) There's a greater economic incentive to provide preventative health care. 3) It's fairer if everyone has the same access to the same care at the same cost.
So, for the time being, Americans will continue their inefficient and expensive consumption of health care alternatives. The good news is that with the passage of the federal health care reform the long-term cost of health care will decrease, and the federal deficit will decrease.
In addition to the cost savings, several key components of the health care reform acts will be enacted this year, with the balance of the provisions phasing in by 2014. In particular, 2010 will see a $250 rebate for beneficiaries who reach the Part D (Medicare) coverage gap, commonly known as the “donut hole.”
There is also a cost containment feature that will reduce annual market basket (like cost-of-living-adjustments) updates for inpatient hospitals, home health, skilled nursing facilities, hospice and other Medicare providers, and adjust payments for productivity. And, another provision will provide for coverage for adult children up to age 26 for all individual and group policies. There is an increase for workforce supply and support training of health professionals through scholarships and loans.
For the first time, there will be a limit of deductibility of executive and employee compensation to $500,000 per applicable individual for health insurance providers. This could stop the outrageous practice of so-called nonprofit hospitals paying exorbitant salaries to top executives. This is a good beginning and the next three to four years we will continue to see the implementation of improvements.
But it's not enough. California is one of several states also pursuing a long-term, workable, cost effective health care program that can and will serve as a future model for our nation. Senate Bill 810 is a single payer plan designed to provide all California citizens with affordable health care. The web site www.CaliforniaOneCare.org provides a full review of the provisions of the legislation that will bring California up to the standards of the rest of the industrialized world. Contact your state legislators now to make sure they support SB 810.
Jim Firth is first vice president of Nevada County Democratic Central Committee.
When Sarah retired she tried to get health insurance, but due to a condition she contracted in her early 40s no insurance company would offer her a policy. She was on COBRA for a while, but that became too costly.
When Sarah turned 60 she noticed a slight discomfort near her stomach. Because she had no insurance and hadn't seen a doctor in nearly five years, she went to the hospital emergency room. Sarah was diagnosed with cancer. She had surgery and used all of her savings. She had radiation and sold the art and jewelry she had collected over the years. She had six months of chemotherapy and sold her house to pay for the treatments.
Sarah passed away at 63, homeless and penniless because in her early 40s she had had a condition. In 2014 the Sarahs in America will begin to get some relief. In California, we don't have to wait.
The California Legislature has twice passed a single-payer health care plan that was vetoed twice by the governor. The Nevada County Democratic Central Committee passed a resolution in April 2009, “that a single-payer health care system administered by the federal government is the only prudent alternative to solve our current healthcare crisis.”
In the subsequent 15 months, the federal government did pass and President Obama did sign the most comprehensive health care reform in U.S. history, the Patient Protection and Affordable Care Act (PPACA) and the Health Care Reconciliation Act of 2010.
Although the PPACA may not be the solution many people sought as the favored solution to our health care crisis, it does provide the foundation on which to build a better alternative.
The single-payer system is one of four health system models described by noted author T.R. Reid. The National Health Insurance (NHI) model has private for-profit providers, but a public (nonprofit) payer. In Canada, which uses NHI, everyone pays a premium to their provincial government, and then sees their doctor for free. They call their system Medicare. In America, those over 65 have Medicare. It's also known as single-payer.
There are three other models known as Beverage, Bismark and Out-of-Pocket. Beverage is the model used by our veterans, health care paid for and administered by the government; Bismark is a private model used by over 150 million working Americans, and Out-of-Pocket is used by over 40 million Americans.
One problem in America is that using four systems for health care is highly inefficient. When T.R. Reid asked health ministers from around the world why they have “one-size-fits-all medicine,” he found three basic reasons: 1) It's simple and cheaper. 2) There's a greater economic incentive to provide preventative health care. 3) It's fairer if everyone has the same access to the same care at the same cost.
So, for the time being, Americans will continue their inefficient and expensive consumption of health care alternatives. The good news is that with the passage of the federal health care reform the long-term cost of health care will decrease, and the federal deficit will decrease.
In addition to the cost savings, several key components of the health care reform acts will be enacted this year, with the balance of the provisions phasing in by 2014. In particular, 2010 will see a $250 rebate for beneficiaries who reach the Part D (Medicare) coverage gap, commonly known as the “donut hole.”
There is also a cost containment feature that will reduce annual market basket (like cost-of-living-adjustments) updates for inpatient hospitals, home health, skilled nursing facilities, hospice and other Medicare providers, and adjust payments for productivity. And, another provision will provide for coverage for adult children up to age 26 for all individual and group policies. There is an increase for workforce supply and support training of health professionals through scholarships and loans.
For the first time, there will be a limit of deductibility of executive and employee compensation to $500,000 per applicable individual for health insurance providers. This could stop the outrageous practice of so-called nonprofit hospitals paying exorbitant salaries to top executives. This is a good beginning and the next three to four years we will continue to see the implementation of improvements.
But it's not enough. California is one of several states also pursuing a long-term, workable, cost effective health care program that can and will serve as a future model for our nation. Senate Bill 810 is a single payer plan designed to provide all California citizens with affordable health care. The web site www.CaliforniaOneCare.org provides a full review of the provisions of the legislation that will bring California up to the standards of the rest of the industrialized world. Contact your state legislators now to make sure they support SB 810.
Jim Firth is first vice president of Nevada County Democratic Central Committee.
