This Week in Healthcare - March 09, 2007
Hello and welcome to This Week in Healthcare.
Today we’ll look at the people, policies, and politicians impacting the healthcare debate, and we’ll help you try to understand it all.
Our stories this week:
- Insurers lower the price of mandatory health insurance plans in Massachusetts.
- Government policy experts warn leaders about healthcare costs.
- Governors raise concerns about paying for expanding children’s healthcare coverage.
- Illinois Governor announces a universal healthcare plan.
- Wellpoint, the largest healthcare insurance firm, estimates 2007 returns of 15 percent.
On Tuesday, Massachusetts Governor Deval Patrick announced that health insurers would reduce the price for their minimum health insurance plans below $300.
As part of a universal health plan passed into law in Massachusetts last year, every resident will be required to purchase a health plan by July 1 of this year.
When minimum plan costs were announced by insurers six weeks ago, the cost of the basic plans were exceeding $350 dollars. Governor Patrick sent insurers back to their board rooms to rework their estimates.
Currently, the lowest price plan, offered by Neighborhood Health, will cost state residents $175 per month for those aged 35-39 years old. The plan covers preventative care, prescription drugs, doctor office visits, and hospitalization. The premiums increase with age and cost $347 per month per month for a person 56 years or older.
Deductibles for the plans will be $2000 for an individual, and $4000 for a family.
At an economic forum held at Stanford University, Federal Reserve Chairman Ben Bernanke and other leading economic advisors warned that spiraling healthcare costs must be addressed.
Alice Rivlin, a senior fellow at the Brookings Institute, said the leading issue of the U.S. economy was healthcare. However, Social Security, Medicaid and Medicare make up 40percent of the total cost of the federal budget.
According to Rivlin, promises made on these programs can’t be kept.
In comments she made to conference attendees, Rivlin said Social Security was not as large a problem as healthcare.
Rivlin noted that if the cost of healthcare continues to rise faster than the economy, we are not going to keep up. It is estimated that healthcare costs will rise by seven percent next year. The economy by only four percent.
The Stanford conference was attended by Silicon Valley venture capitalists, business leaders, academic and students. The event provided a snapshot of the global economic climate.
At a briefing for lawmakers in Washington, the leader of the state governors association raised concerns about the cost of the states’ children’s health insurance program, known as SCHIP. Patrick Scheppach, President of the Governors Association, said federal funds need to be allocated to help cover the cost of the program for the states. The 10-year-old program has provided health coverage to an estimated five million children in families with incomes too high to qualify for Medicaid.
SCHIP is due to be reauthorized at the end of September
In a related story, Senator Max Baucus, Chairman of the Senates Finance Committee, said he would increase funding for SCHIP by 50 billion dollars. Bringing the total cost of the program to 75 billion over five years, twice the amount proposed by President Bush.
Illinois Governor Rod Blagojevich announced a plan to offer universal health care to all state residents.
Called Illinois Covered, the plan hopes to provide an estimated 1.4 million state residents with health insurance.
Details of the plan include access to new affordable health insurance products, rebates on private insurance, and direct state assistance for those that can not afford health insurance.
Wellpoint, the nations largest health insurance company, is estimating a 15 percent return on their shares in 2007.
CEO David Colby announced the estimate at a Bear Stearns conference this week.
Operating under the name Blue Cross Blue Shield in some of the largest health insurance markets in the U.S., Wellpoint is the largest health benefits company in the U,S., with over 34 million medical members. Annual revenues in 2007 are estimated to top 60 billion dollars.
That’s it for This Week in Healthcare. Tune in next week for more highlights, when we’ll look at the issues, politics, and people shaping the healthcare debate.
If you have healthcare news you’d like to contribute, please send us an email at ThisWeek [at] scribemedia [dot] org and we’ll be sure to include it.
I’m John Mikytuck. Thanks for watching, and stay healthy.
Informative and worrisome!