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EditorialEditorials

Reliving History and Renewing the Health Care Reform Debate

Kathryn Pitkin Derose and Nicole Lurie
The Annals of Family Medicine September 2006, 4 (5) 388-390; DOI: https://doi.org/10.1370/afm.627
Kathryn Pitkin Derose
PhD, MPH
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Nicole Lurie
MD, MSPH
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  • The Truth About Managed Care System
    Robert E. Birth
    Published on: 23 October 2006
  • Widening the Healt Care Reform Debate
    Randell K Wexler MD, MPH
    Published on: 13 October 2006
  • Published on: (23 October 2006)
    Page navigation anchor for The Truth About Managed Care System
    The Truth About Managed Care System
    • Robert E. Birth, Millville, PA USA
    • Other Contributors:

    The TRUTH about managed healthcare is that large insurance companies, drug manufacturers, and pharmaceutical benefit managers (PBM) are violating anti-trust statutes by controlling large segments of the managed care markets with price controls, collusion, and market controls of the insured population they are supposed to help to get proper healthcare.

    It is important to find out where all of the money is going! Po...

    Show More

    The TRUTH about managed healthcare is that large insurance companies, drug manufacturers, and pharmaceutical benefit managers (PBM) are violating anti-trust statutes by controlling large segments of the managed care markets with price controls, collusion, and market controls of the insured population they are supposed to help to get proper healthcare.

    It is important to find out where all of the money is going! Politicians, statistical analysts, and managed care proponents say that healthcare costs are rising and we must stop that trend. Is that based on a per person basis or the total amount spent per year? We must assume that as the population grows that the total healthcare cost will rise.

    Let's look at one example: drug cost and reimbursement. A retail pharmacy buys pharmaceuticals (Rx) at an average cost that is 80% higher than PBM pharmacies, non-profit pharmacies, and hospital pharmacies. This is based on the manufacturer controlled price schedule which is set so retail pharmacies cannot buy cheaper than that legally. That was alright when retail pharmacies could set their own prices for selling prescritpions. Presently, 85-90% of rural retail pharmacy prescritpions are covered by take-it or leave-it PBM contracts without any negotiations allowed and these ridiculous reimbursement rates from PBM contracts range around 4% to 8% over the net cost of the drug price. There is no consideration to cost of dispensing (COD) a prescription with all of the federal and state requirements associated with properly dispensing a prescription which averages $9.00 in Pennsylvania according to a national study.

    What's the answer? (1)Standards need to be set by government to control all aspects of managed care. Example: When anyone signs a managed care health contract the managed care insurance agrees to cover specified health care needs for an agreed premium. However, there is language in the contract that allows managed care insurance to change that coverage at any time they choose, without any change to the insured's premium. (2) Every pharmacy should pay the same for prescription drugs and eliminate "class of trade" differences in pricing. Government gets special prices as do select other buyers and that must stop. If everyone pays the same price the playing field will be leveled for everyone. No kick-backs, refunds or rebates. Drug prices will fall for everyone.

    Competing interests:   None declared

    Show Less
    Competing Interests: None declared.
  • Published on: (13 October 2006)
    Page navigation anchor for Widening the Healt Care Reform Debate
    Widening the Healt Care Reform Debate
    • Randell K Wexler MD, MPH, Columbus, Ohio ,USA

    Drs. Derose and Lurie (Ann Fam Med 2006;4:388-390), quite elegantly discuss current policy issues in the ongoing health care reform debate. However, to achieve the desired result of high quality, patient centered health care, delivered at reasonable cost to all Americans, the role of the patient as consumer must be addressed. No true debate on health care reform can be achieved with a public that is blind as to the conse...

    Show More

    Drs. Derose and Lurie (Ann Fam Med 2006;4:388-390), quite elegantly discuss current policy issues in the ongoing health care reform debate. However, to achieve the desired result of high quality, patient centered health care, delivered at reasonable cost to all Americans, the role of the patient as consumer must be addressed. No true debate on health care reform can be achieved with a public that is blind as to the consequences of their actions.

    Americans eat, drink and smoke too much, and exercise too little. Obesity, diabetes, and heart failure, often diseases resulting from poor lifestyle choice, are treated with expensive medications and procedures when the best treatment is diet and exercise. In a nation desirous of easy quick fixes, pill popping is preferred over a healthy lifestyle.

    In a recent national poll, only 13% of respondents felt that Americans not doing enough to maintain a healthy lifestyle was responsible for high health care costs (1). In a survey conducted by the Kaiser Family Foundation, Harvard School of Public Health, just 4% of those surveyed felt that people with insurance having little incentive to look for lower prices was the most important factor in rising health care costs (2). However, in that same poll, 73% felt that drug companies and insurance companies, greed and waste in the system, and the rise in malpractice suits were most responsible for rising health care costs.

    Although the increasing costs of health care have been widely discussed by physicians, the media, hospitals, and politicians for years, too many Americans still refuse to personally engage in the discussion. When asked if increased health expenditures had caused them to more carefully discuss treatment options and costs with their physicians, 41% of Americans fail to do so (3).

    We do need a health care reform debate in this country, and the issues raised by DeRose and Lurie, are important components of that debate. However, to achieve these goals, the American public must recognize its roll in the problem as well as the solution. Much of our current crisis is attributable to politicians, employers, physicians, and others not having the will to insist consumers be part of the solution. There are tough choices to be made, but we as a society will be successful in reforming health care only if an informed and engaged public accepts responsibility for its own health.

    1. New Models National Brand Poll. Conducted by Winston Group. August 31-September 1, 2005. 2. Henry Kaiser Family Foundation, Harvard School of Public Health, USA Today Poll, April 25-June 9 2005. 3. Employee Benefit Research Institute, June 30-August 6, 2005

    Competing interests:   None declared

    Show Less
    Competing Interests: None declared.
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The Annals of Family Medicine: 4 (5)
The Annals of Family Medicine: 4 (5)
Vol. 4, Issue 5
1 Sep 2006
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Reliving History and Renewing the Health Care Reform Debate
Kathryn Pitkin Derose, Nicole Lurie
The Annals of Family Medicine Sep 2006, 4 (5) 388-390; DOI: 10.1370/afm.627

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Reliving History and Renewing the Health Care Reform Debate
Kathryn Pitkin Derose, Nicole Lurie
The Annals of Family Medicine Sep 2006, 4 (5) 388-390; DOI: 10.1370/afm.627
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