Article contents
Selling Cost Containment
Published online by Cambridge University Press: 24 February 2021
Abstract
Health care expenditures in the United States have continued to grow despite efforts to control them. This Article discusses the need for health care reform, outlines the model that reform should follow, and considers why the United States has not progressed toward a workable solution. It introduces a single-payer approach to cost containment and explains how such an approach could be “sold” in the United States. Finally, the Article examines various ways to mobilize support for such health care reform.
- Type
- Articles
- Information
- American Journal of Law & Medicine , Volume 19 , Issue 1-2: Implementing U.S. Health Care Reform , 1993 , pp. 95 - 119
- Copyright
- Copyright © American Society of Law, Medicine and Ethics and Boston University 1993
References
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23 Enthoven, supra note 22, at 28.
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32 Use of a public system to ration health care resources affords the possibility of doing so publicly and explicitly, rather than privately and implicitly. Nevertheless, for political reasons, this opportunity may be too problematic to pursue. See Norman, Daniels, Why Saying No to Patients in the United States Is So Hard, 314 New Eng. J. Med. 1380, 1381-83 (1986)Google Scholar (arguing that the more explicit rationing required by a public, single-payer system, as in the United Kingdom, is more accountable and more equitable); see also Symposium, The Law and Policy of Health Care Rationing: Models and Accountability, 140 U. Pa. L. Rev. 1505 (1992) (exploring in depth the theory and practice of health care rationing).
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81 Id.
82 Grumbach & Bodenheimer, supra note 59, at 124. An example of how this might be done is found in the German system, in which physicians are profiled and reimbursement is reduced for physicians who file an excessive number of claims and who cannot adequately explain the deviation. See Timothy S. Jost, Assuring the Quality of Medical Practice: An International Comparative Study 43-46 (1990).
83 Lee & Etheredge, supra note 68, at 265.
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94 Himmelstein & Woolhandler, supra note 20, at 103-04.
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112 Paul C. Weiler Et al., A Measure of Malpractice: Medical Injury, Malpractice Litigation, and Patient Compensation 124 (1993) (the Harvard Medical Practice Study found physicians greatly overestimate risk of being sued from adverse events or negligent injury); Donald, Songer, Tort Reform in South Carolina: The Effect of Empirical Research on Elite Perceptions Concerning Jury Verdicts, 39 S.C. L. Rev. 585, 596 (1988)Google Scholar (physicians dramatically overestimate the magnitude of malpractice awards).
113 Health Care Liability Reform and Quality of Care Improvement Act, H.R. 3037, 102d Cong., 1st Sess. (1991).
114 White House Fact Sheet on the “Health Care Liability Reform and Quality Care Improvement Act of 1992” Transmitted to the Congress Today by President Bush, Federal News Service, July 2, 1992, available in Lexis, Nexis Library, Fednew file.
155 Id.
116 The AMA, for example, claims that, in 1989, defensive medicine cost $15.1 billion, nearly three times the total amount spent on malpractice insurance in that year. See Hirshfeld, supra note 111, at 1822 nn.31-33.
117 See Sara C., Charles et al., Physician's Self-Reports of Reactions to Malpractice Litigation, 141 Am. J. Psychiatry 563, 564-65 (1984).Google Scholar
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120 Patricia Danzon, Medical Malpractice: Theory, Evidence and Public Policy 226 (1985).
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124 Levit et al., supra note 16, at 36-37. In contrast, the Medicare program spent 2.\% of its expenditures on administration. Id. at 37.
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128 See Iglehart, supra note 26; Kirkman-LifF, supra note 38. The ACP proposal is another example of this approach. See Scott & Shapiro, supra note 44. Were such a system implemented voluntarily or by state mandate, an amendment to the antitrust laws would be required to permit such collective action. Though the McCarran-Ferguson exception exempts the business of insurance from antitrust scrutiny, it would only apply if collective action were regulated by the state. See 15 U.S.C.A. § 1012(b) (West 1976). Moreover, it is likely that collective action in bargaining with payers would not be regarded as the “business of insurance,” see Group Life & Health Ins. Co. v. Royal Drug Co., 440 U.S. 205, reh'g denied, 441 U.S. 917 (1979), cert, denied, 469 U.S. 1160 (1985), or that it would fall within the boycott exception to the exclusion, 15 U.S.C.A. § 1013(b) (West 1976); see Ballard v. Blue Shield of Southern West Virginia, Inc., 543 F.2d 1075 (4th Cir. 1976), cert, denied, 430 U.S. 922 (1977).
129 Marketing commissions account for over 20% of the administrative costs of group health insurance for firms with between one and four employees, but for a much smaller share of the cost for larger firms. See GAO Report, supra note 29, at 12.
130 Iglehart, supra note 26, at 1754.
131 Woolhandler & Himmelstein, supra note 20, at 1254.
132 See Elliot K. Wicks, Health Insurance Association of America, German Health Care: Financing Administration and Coverage (1992).
133 See Neuschler, supra note 48, at 37-53.
134 For examples of play or pay proposals, see Clinton, supra note 126; Rockefeller, supra note 125; J o h n Holahan, An American Approach to Health System Reform, 265 JAMA 2537 (1991); see also Brown, supra note 29, at 194-98 (evaluating the play o r pay approach).
135 Shelia R., Zedlewski et al., Play-or-Pay Employer Mandates: Potential Effects, Health Aff., Spring 1992, at 62, 69.Google Scholar
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137 In 1991, 40% of insured employees worked for firms with fully or partially self-insured plans administered by a third-party administrator or HMO. See Cynthia B., Sullivan et al., Data Watch: Employer-Sponsored Health Insurance in 1991, Health Aff., Winter 1992, at 172, 176-78.Google Scholar
138 Cynthia B., Sullivan & Thomas, Rice, The Health Insurance Picture in 1990, Health Aff., Summer 1991, at 104, 112.Google Scholar
139 Melissa, Ahem & H. Virginia, McCoy, Emergency Room Admissions: Changes During the Financial Tightening of the 1980s, 29 Inquiry 67, 69 (1992);Google Scholar see also W. Vickery, Stoughton, Realities vs. Perceptions, Health Mgmt. Q., Third Quarter 1992, at 19Google Scholar (noting that administering a hospital is in many respects easier under the Canadian regulated system than under the American market system).
140 See Cindy, Jajich-Toth & Burns W., Roper, Americans’ Views on Health Care: A Study in Contradictions, Health Aff., Winter 1990, at 149Google Scholar (showing greater popular support for expanding access to private insurance than for public programs to cover the uninsured). More recent polls, however, show stronger support for a government role in cost containment. See Mark D., Smith et al., Taking the Public's Pulse on Health System Reform, Health Aff., Summer 1992, at 125, 127Google Scholar (estimating that 60% of Americans believe the government should have the primary role in providing health insurance and controlling costs).
141 Although 80.3% of top United States executives polled in 1990 favored fundamental changes in the health care system, only 27.6% favored regulation of payment to hospitals and doctors, and only 8.8% favored creation of a public health insurance system. Joel C., Cantor et al., Business Leaders’ Views on American Health Care, Health Aff., Spring 1991, at 98, 100-01.Google Scholar
142 American Hospital Association, National Health Care Reform: Refining and Advancing the Vision 5-8 (1992).
143 This issue accounted for three-quarters of the days lost to strikes in 1989. Louis, Uchitelle, Insurance as a Job Benefit Shows Signs of Overwork, N.Y. Times, May 1, 1991, at Al, D23.Google Scholar
144 Economic Implications, supra note 111, at 46, 47.
145 For the classic statement of this distinction, see Isaiah, Berlin, Two Concepts of Liberty, in Four Essays on Liberty 118 (1969).Google Scholar
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