1 / 48

The Opportunity Is Now

The Opportunity Is Now. Consumer Advocacy for Health Care Reform in Illinois: The Costs of Inaction, the Benefits of Reform. Presentation to the Dorsey Hughes Symposium by the Campaign for Better Health Care July 26, 2007. Illinois’ Health Care Crisis. Individuals • Business • Insurers

rhiannon-hensley
Download Presentation

The Opportunity Is Now

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Opportunity Is Now Consumer Advocacy for Health Care Reform in Illinois: The Costs of Inaction, the Benefits of Reform Presentation to the Dorsey Hughes Symposium by the Campaign for Better Health Care July 26, 2007

  2. Illinois’ Health Care Crisis Individuals • Business • Insurers Providers • Government • A sharedresponsibility • A sharedopportunity

  3. Human and Financial Costs are Rising Uninsured in Illinois: 1.8 million Uninsured who work: over 66% (57% work for small firms) Lives lost nationally: 18,000 Personal bankruptcies: over 50% Price tag for health care in Illinois (2006): $75.3 Billion Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  4. The Facts At some point over the two year period from 2003-2004, 3.6 millionpeople under the age of 65 were uninsured in Illinois.

  5. Without effective health care reform Illinois health care spending will almost double in ten years – growing 150% faster than the economy and more than twice as fast as wages.

  6. Projected Average Annual Growth in Illinois Health Care Spending without reform (Gross State Product and Wages, 2005 - 2015) Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  7. Private Sector Health Care Spending:The No Reform Scenario By 2011, absent reform of the health care system in Illinois : • Employers will spend $26 Billion on health care — about 10.2% of payroll • Workers will spend $4.4 Billion on health care premiums — an additional 1.7% of payroll • Households overall — both out of pocket and premiums — will spend nearly $32 Billion by 2011

  8. Illinois Private Sector Health Care Spending with No Reform (in Billions) 2008200920102011 TOTAL $78.9 $85.2 $92.2 $99.6 Business $20.5 $22.2 $24.0 $25.9 Households $25.2 $27.3 $29.5 $31.9 NOTE: Government and other private spending account for the residual Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  9. Overview • Addressing the affordability of health care requires a clear diagnosis of what accounts for this growth in spending • Key facts: • About 75% of total health care spending linked to chronically ill patients • Chronically ill receive approximately 56% of all clinically recommended medical care • Rise in prevalence of treated disease accounts for a substantial share (two-thirds) of the growth in health care spending. Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  10. Overview • Rise in obesity prevalence in the US accounted for 30% of the growth in health spending over the past 20 years. • Substantial dollar volume rise in spending linked to modifiable individual risk factors Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  11. Age-Adjusted Prevalence of Treated Disease for Adults 18+ (1987-2003) Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  12. Overview Other key facts: • Number of uninsured will rise from 1.8 million in Illinois today to 2.3 million by 2010. • The amount of uncompensated provided to the uninsured potentially built into the cost of private insurance will rise from $1.8 Billion today to $2.6 Billion by 2010 in Illinois. • This cost shift adds approximately 9 percent to the cost of private health insurance. Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  13. 2004 - HCJA 2005 - Task Force May ‘06 - Hearings Jan ‘07 - Report July ‘07 - Enact What to do? Consumers take action!

  14. What is the Campaign for Better Health Care? • A statewide grassroots’ advocacy coalition that believes that accessible, affordable, quality health care is a basic human right for ALL people. • In 2002, CBHC established the Health Care Justice Campaign.

  15. What is the Health Care Justice Act? • Creates a 34 member Task Force • Requires public hearings on health care reform in all 19 Congressional districts of Illinois • Calls for money to be appropriated that will fund research on different health care reform proposals

  16. What is the Health Care Justice Act? • The Task Force must present recommendations for a new health care system in the Spring of 2006. • The General Assembly votes for a new health plan by December 31, 2006. • Implement plan by July 1, 2007

  17. Key Outcomes Called for in the Health Care Justice Act • Provides access to a range of preventive, acute and long-term services. • Maintains and improves quality of health care services. • Provides core benefits to all Illinois Residents.

  18. Key Outcomes Called for in the Health Care Justice Act • Provides portability regardless of employment. • Contains costs. • Promotes affordability for small businesses.

  19. Why the Health Care Justice Act? • Sets in place a timeline for a vote on a new health care plan in Illinois • Allows time to build a powerful coalition united by key principles that can advocate for real change

  20. What will this new health care plan look like? The Health Care Justice Campaign is working to make sure that the plan developed by the task force reflects the following key principles for an affordable, accessible, quality health care plan

  21. Key Principles of the Health Care Justice Campaign • All people in Illinois have the ability to access health care services and make choices about their health care. • Health Care is affordable for consumers to get care, for providers to give care and for businesses to pay for coverage.

  22. Key Principles of the Health Care Justice Campaign • High quality care is given and provided in a timely manner for all. • Health care system dollars geared toward care.

  23. Why Do We Need Your Help? • There are many proposals to reform the health care system. Some claim to lower costs and give more coverage, but many will not. Most proposals do not go far enough. • We need your voice to advocate for health care justice.

  24. Get Involved in the Health Care Justice Campaign • Endorse the campaign. • Make an investment. • Participate in upcoming public hearings in your community. • Get your friends involved! • Help coordinate an educational event. • Meet with your state legislators about the Health Care Justice Act.

  25. Get Involved in the Health Care Justice Campaign • Share personal health stories. • Write/submit a letter to the editors of local newspapers about the Health Care Justice Act. • Attend local HCJC committee meetings. • Participate in the HCJC faith initiative.

  26. Taking Action: What’s on the table now Illinois Covered • Illinois Choice • Illinois Assist • Illinois Rebate • Everyone in IL • Revenue Options

  27. Cost containment elements in the Illinois Covered reform plan • Roadmap to Health — statewide “best practices” chronic care delivery model • Health information technology (Illinois Health Information Network), electronic records and administrative simplification • Reduction in the cost shift due to coverage of uninsured • Illinois Covered Choice and Covered Rebates that reduce the cost of insurance to those currently insured by small businesses and currently insured workers

  28. Nature of Savings • Proposals that reduce clinical and administrative costs of health care • Roadmap to health, health information technology, administrative streamlining • Proposals that redistribute spending within the state (i.e. new state spending reduces spending among those with private insurance) • Reduction in the cost shift, Illinois Covered Choices and Covered Rebate program

  29. Savings Associated with the Plan (full implementation by 2011) • Roadmap to health/chronic care: 3.8% • Electronic records and IT: 2.5% • Reduction in cost shift: 2.7% • Total savings as apercentage of premiums:9.0% Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  30. Savings for Privately Insured Individuals and Families • When fully implemented by 2011, premiums for those keeping their current private plan will be: • $645 per year lower for an individual contract • $1,775 per year lower for a family policy Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  31. Savings By Component of the Illinois Covered Plan (in Millions) Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  32. Private Employer and Household Health Care Spending, Under Current Law and Under the Reform Plan (in Billions of Dollars) 2008-2011 Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  33. Eliminating the “Big Gorillas” in the Room:The Cost Shifting Tax • Uncompensated care for the uninsured built into the cost of insurance in Illinois: $1.8 Billion (2007)  $2.6 Billion (2010) • This shift adds 9% to the cost of health insurance. • We pay the price. Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  34. Wage and Premium Taxes • The Wage Tax Health care costs are growing 3-5 times faster than wages. Employer resources go to health care, not wages. • The Premium Tax The average Illinois family of four pays $1,000 more in health insurance premiums per year to subsidize care for the uninsured Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  35. Hidden Taxes • Homeowners and auto insurance A portion pays for potential health care if accidents occur. If everyone had health insurance, this cost would be off the table. • Health Care Property Tax If costs are contained at inflation, an average homeowner would see a savings of $100 or more in their property taxes. Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  36. “Free Lunch for Business” Tax • From 8/05 to 4/06, Illinois taxpayers (individuals & businesses) paid over $335 Million to provide health insurance to low-wage workers whose employers gave nothing, a “free lunch”for big business Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  37. The Result? The cost of doing nothing is a new, 10-year tax of $30 Billion Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  38. Health Care Spending in Illinois : Status Quo and Reform (in Billions) Ken Thorpe, Ph.D., Dept. of Health Policy & Management, Emory University, 2007

  39. Conclusions: 2008-2011 With enactment of the Illinois Covered reform plan: • Plan costs (presumed to be financed by the proposed Gross Receipts Tax) will be: $7.2 billion • New savings (reduced growth in private health insurance premiums & other reduced health care costs): $15.6 billion • Net Savings (new saving minus plan costs) will be: $8.4 billion • Each $1 of public revenues spent on Illinois Covered will generate more than $2 in new health care savings, mainly through reduced growth of health insurance premiums paid by Illinois businesses, families and individuals.

  40. Health care is the top economic concern across party lines. Thinking specifically about the economy, what are you personally worried about the most? Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  41. Illinoisans rate health care reform as the most important issue facing the legislature during the extended session. As you may know, Illinois state legislators are currently in an extended session considering a number of proposals. Now I’m going to read you a set of issues they could address. For each one I read, please rate how important it is to you for the legislature to take action on that issue on a scale of 0 to 10, where 10 means it is an extremely important issue and 0 means it is not at all important. If you are not sure, please say so. Important 85% 80% 65% 53% Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  42. Democrats, Republicans, and Independents agree that health care is the most important issue during the extended session. As you may know, Illinois state legislators are currently in an extended session considering a number of proposals. Now I’m going to read you a set of issues they could address. For each one I read, please rate how important it is to you for the legislature to take action on that issue on a scale of 0 to 10, where 10 means it is an extremely important issue and 0 means it is not at all important. If you are not sure, please say so. Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  43. OPPOSE UNDECIDED FAVOR Republicans, Democrats, and Independents support Illinois Covered even after hearing about the funding mechanisms. Would you favor or oppose a proposal for health care reform in Illinois that creates a choice of new, affordable, comprehensive health insurance plans that will be available to small businesses and individuals who do not have job based health benefits. The reform is paid for by an increase in gaming taxes, a tax on employers who don’t offer adequate health care, and a sliding scale (premium/fee) based on income? *Darker colors indicate intensity Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  44. Both those who have insurance coverage for everyone in their household (82%) and those who do not (13%) overwhelmingly favor Illinois Covered. Based on the description you just heard, do you favor or oppose this proposal, or are you undecided? Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  45. Republicans, Democrats, and Independents all want their legislators to support this reform. Would you be more or less likely to vote to re-elect your legislator if they supported this proposed health care reform, or would it not make a difference? Total 55% 10% Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  46. Summary of tested positive messages Investment now leads to future savings Plan saves on emergency room costs Our values demand affordable coverage for all Coverage for the uninsured Will result in increased wages and better economy Illinois will be a model Government will act as a watchdog on prices Summary of tested negative messages $12 billion tax increase Many higher funding priorities Health care is a national issue Attracts illegal immigrants Proposal is a complicated bureaucratic nightmare We tested a variety of positive messages and negative attacks. Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  47. OPPOSE FAVOR Support remains strong across all parties Based on the description you just heard, do you favor or oppose this proposal, or are you undecided? *Darker colors indicate intensity UNDECIDED Lake Research partners Poll sponsored by: America’s Agenda health Care Education Fund, AARP, Campaign for Better Health Care and the AFL-CIO

  48. Campaign for Better Health Care a presentation by Thanks to those who provided slides: • Campaign for Better Health Care (312) 913-9449 www.cbhconline.org • Kenneth E. Thorpe, Ph.D. Robert Woodruff Professor & Chair Dept. of Health Policy and Management Rollins School of Public Health Emory University kthorpe@sph.emory.edu • Lake Research Partners

More Related