HEALTH POLITICS: Former HHS Secretary Thompson Calls for Investment in Health Reform
Republican music to our ears: "Will health reform require an upfront investment? Yes. But will that investment pay off in the long-term? Yes it will."
That's former HHS Secretary Tommy Thompson, who served under President George W. Bush, writing in the Politico, arguing for comprehensive reform. He didn't spell out precisely how he defines comprehensive reform, and he didn't explicitly endorse any of the main Democratic approaches, but he sure extended a warm fiscal handshake, a welcome note of bipartisanship as Congress grapples with how to finance expansion of coverage and an overhaul of the system.
Thompson wrote that sustainable, affordable health care reform is an important investment in the future, but Congress must heed the estimates of the Congressional Budget Office. In the past, when CBO calculated the cost of health care reform, he said, it didn't adequately assess the savings that will come from changing the health care system to provide more value and promote wellness in the long run. Thompson writes:
...the CBO price tag for health care reform, on which legislators will base decisions, will not capture the future savings, because it underestimates the value of investment in health care as a means to achieving a healthier, more productive and, ultimately, more prosperous America.
Thompson identifies the cost of chronic disease as a source of significant financial difficulties for the health care system (and therefore our whole national economy), stating that "treatment of patients with chronic illnesses accounts for 75 cents of every health care dollar, or $1.65 trillion in 2007." He wrote that chronic disease accounts for 83 percent of Medicaid spending, and 96 percent of Medicare. He's right—and the real tragedy of chronic disease is that much of it can be prevented, controlled or delayed. An emphasis on prevention and wellness, which many lawmakers are currently calling for, will have an important impact on lowering costs over time and making the utilization of care more efficient.
Thompson points out that now is the time for health care reform—the people want it, health industry stakeholders want it, and health care advocates want it. We couldn't agree more. The Cost of Doing Nothing
on health care is high. Health care costs are growing faster than wages; by 2016, the cost of the average employer-sponsored health insurance plan for a family will reach $24,000. The already struggling economy will continue to lose up to $200 billion per year because of the poorer health and shorter lifespan of the uninsured. Health care reform that encompasses prevention and wellness will make Americans healthier and save money. We'll see the payoff, he said, in reduced health care spending and improved work force productivity. And that's a healthy conclusion that conservatives should like.
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