Morning Briefing
Summaries of health policy coverage from major news organizations
CBO Paper Offers No Concrete Numbers For Single-Payer System, Giving Both Sides Sound Bites To Use In Debate
The Congressional Budget Office published a much-awaited paper about the possible design of a single-payer or 鈥淢edicare for all鈥 system in the United States. The budget office most often provides detailed estimates about the cost of legislation. But anyone looking for many numbers in Wednesday鈥檚 long report would be disappointed. Instead, the nonpartisan office noted the many ways that legislators could devise such a system, outlining the cost and policy effects of a wide range of difficult choices. It also noted that such a system would be so different from the country鈥檚 current situation that any hard estimates would be difficult, even with all the specifics laid out. (Sanger-Katz, 5/1)
"The transition toward a single-payer system could be complicated, challenging and potentially disruptive," the report said. "Policymakers would need to consider how quickly people with private insurance would switch their coverage to a new public plan, what would happen to workers in the health insurance industry if private insurance was banned or its role was limited, and how quickly provider payment rates under the single-payer system would be phased in from current levels." (Alonso-Zaldivar and Fram, 5/1)
The analysis, issued Wednesday by the Congressional Budget Office, offers a reality check on the campaign slogans that have characterized a growing crop of Democratic presidential aspirants who champion the idea of Medicare-for-all. The report lays out 鈥渙pportunities and risks鈥 of moving every American into a single government plan that covers all or most medical services. On the plus side, it says, such a plan would produce universal coverage and probably a more efficient health system. Among the negatives: higher government spending and taxes 鈥 and potentially longer waits for some treatments and technologies. (Goldstein, 5/1)
The report serves as a yardstick laying out possible pitfalls and advantages of instituting such a Medicare for All system, as well as the policy questions lawmakers would have to address. By consolidating administrative tasks, the report says, their costs would likely fall under the new health system. But the design of the system would determine whether it lowers overall health-care spending. A Medicare for All system would create incentives, such as access to expanded preventive care and other benefits that may improve people鈥檚 health, the report said. But it also said that extending coverage to more Americans could produce longer wait times and reduced access to care if there weren鈥檛 enough health workers. (Armour, 5/1)
Kaiser Health News: CBO鈥檚 Report On Single-Payer Health Care Holds More Questions Than Answers
Notably, the single-payer report avoids a question that critics frequently surface: How much would this cost? How would you pay for it? That鈥檚 because there鈥檚 no uniform cost estimate for single-payer and no easy 51视频 to apply. For one thing, the price tag depends on what services are covered 鈥 something like long-term care would make the idea much more expensive. (Luthra, 5/1)
Independent analyses have put the price tag of single payer at roughly $32 trillion over a decade. Yet in highlighting the potential economic disruption of a single payer overhaul, the agency pointed to one of the key reasons Medicare for All is gaining traction: the costs in the status quo. "Because healthcare spending in the United States currently accounts for about one-sixth of the nation's gross domestic product, those changes could significantly affect the overall U.S. economy," the report said. (Luthi, 5/1)
Louisville, Ky.-based insurer Humana reported higher revenue and profit in the first quarter of 2019 as it experienced explosive growth in its individual Medicare Advantage plans during the latest annual open-enrollment period. So it's no surprise that Humana CEO Bruce Broussard talked up the privatized Medicare Advantage program during the company's Wednesday conference call with investment analysts, just a day after U.S. House of Representatives members held a first-ever congressional hearing on Medicare for All. Some single-payer proposals would eliminate private insurance for almost all medical care. (Livingston, 5/1)
Meanwhile, on Capitol Hill 鈥
House Democrats on Wednesday unveiled a more moderate proposal for expanding health care coverage than "Medicare for All" legislation that has been advocated by a number of the party's 2020 presidential candidates. The Medicare for America Act, sponsored by Reps. Rosa DeLauro (D-Conn.) and Jan Schakowsky (D-Ill.), was released a day after Democrats held the first hearing about Medicare for All. (Weixel, 5/1)