Health Care Reform is in News, But Not Understood

There has been widespread coverage of health care reform, but consumers still admit that they know very little about the health care system in the United States. This is according to the 3rd Annual Deloitte Center for Health solutions Survey of Health Care Consumers.

Here are some of the findings:

• 23% said they understand how the health care system works
• 76% grade the system a "C" or below
• 48% believe that 50% or more of health care dollars are wasted
• 57% said they are satisfied with their health plan
• 46% said they understand their health insurance coverage
• 25% do not know how much they are paying for health insurance

Even though consumers tended to rate the "system" low, when it came to their own personal experience they are much more likely to say they are satisfied, even if they do not know how much they are paying.

The survey also identified a number of contradictions when it comes to consumer perception, attitude, and behavior about health care decisions and personal health status.

People perceive themselves to be healthy, yet suffer from chronic conditions. 7 out of 8 (88%) consumers surveyed believe they are in "excellent," "very good," or "good" health, yet more than half (54%) have been diagnosed with one or more chronic conditions, and of the 56% who take prescription medications, almost half (47%) take three or more daily. Only 1 in 5 surveyed said they participate in a wellness program.

They have mixed emotions on the government's role in health care. 42% support government-mandated health insurance, 38% oppose it. 33% believe that the marketplace needs 10 or more insurance companies competing in order to ensure consumer choice.

The are financially confident, yet forego care because of cost. They are interested health records, but are slow to use them. Three in four consumers are confident that the medications they take are effective.

People are slow in making changes to their health coverage. It often takes a major event to even make people begin to think about the kind of coverage they have or should have. At this point, it may be impossible to get the coverage you want due to chronic illness or the type of medications you are taking. It is important to be proactive in regards to your health.

This is only the beginning of what is to come with Health Care Reform.

Trying to Understand Health Care Reform

I spent a couple of hours last week attending an informational seminar on Health Care reform, the Patient Protection and Affordable Care Act.

We were provided a timelime of the implementation dates for key provisions. The timeline begins in 2010 through 2018. The number of pages of this bill is over 2000 pages, which we were told is really just an outline. When finished, it could be well over 200,000 pages.

Some of the changes taking place in 2010 are:

• Provide dependent coverage for adult children up to age 26 for all individual and group policies.
• Prohibit individual and group health plans from placing lifetime limits on the dollar value of coverage and prior to 2014, plans may only impose annual limits on coverages determined by the Secretary.
• Prohibit insurers from rescinding coverage except in cases of fraud and prohibit pre-existing condition exclusions for children
• Establish a process for reviewing increases in health plan premiums and require plans to justify increases.*
• Provide a $250 rebate to Medicare beneficiaries who reach the Part D coverage gap in 2010 and gradually eliminate the Medicare Part D coverage gap by 2020.
• Authorize the Food and Drug Administration to approve generic versions of biologic drugs and grant biologic manufacturers 12 years of exclusive use before generics can be developed.

*Anthem Blue Cross who was in the crosshairs of the huge rate increases actually was approved by the California Department of Insurance. Why?

The system is broken and with all the new laws, cost containment doesn't seem to be addressed in this legislation.

I am not sure how any or all of this affect you and your families. I feel better keeping you posted and venting a little.

You can reach me at 949-854-3001 or dane@LongTermCareInsurancePros.com

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