RavenHawk, on 12 July 2012 - 08:43 PM, said:
That's incorrect. Roberts said that the individual mandate was unConstitutional. It was upheld because Congress has the Right to regulate commerce.
It was upheld as constitutional because Chief Justice Roberts
felt it fell under Congress's power of taxation:
"The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax. Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness."
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Please speak English. I thought you were going to clearly explain things not espouse a Leftist commercial. So it sounds like you're saying that Medicare will be raided. Ok, so where is the rest of the money coming from? So what happens if people can't afford the premiums?
You have many questions. Good!
The Medicare savings come through two primary avenues: 1) reductions in subsidies to privatized Medicare plans (i.e. Medicare Advantage) and 2) by slowing the growth rate of reimbursements for services under the public component of Medicare.
Prior to the ACA, government payments to the private plans in Medicare Advantage (which were originally conceptualized as being
more efficient and less costly than the traditional, public Medicare fee-for-service program) had crept up, to the point that the government was spending 14% more for private plans than on traditional Medicare, with very little value coming out on the other end for beneficiaries. In other words, private insurance companies were getting a sizable public subsidy and offering very little in return for it. Those subsidies are being dialed down under the law.
The more controversial savings--or at least the part folks try to make controversial--come from slowing the growth rate in Medicare's rates for hospitals and certain other providers (not physicians). The key to understanding these reductions is to realize that they're not simply an edict or a baseless assumption. The ACA contains a number of reforms to the way Medicare and health care providers do business. These are what make that slowed growth possible over the next decade or so.
In other words, to make that goal of slowed cost growth attainable, the law included a great deal of Medicare reform underlying the future slower growth rates required and assumed by the ACA. And there's some evidence that providers are already beginning to change the way they do business in response to it.
Here are some observations from earlier this year:
Slower Growth in Medicare Spending — Is This the New Normal?
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But there are indications that Medicare spending growth has slowed. One highly visible gauge of Medicare spending trends is the standard monthly Part B premium, which is set by the Medicare actuary to cover one quarter of total Part B spending. In August 2011, the actuary projected that the Part B premium for 2012 would be $106.60, but the actual premium was set in November at only $99.90. A much broader indicator of a slowing trend is the fact that growth in Medicare outlays per enrollee in 2010 and 2011 was roughly in line with growth in the economy (see graphExcess Medicare Spending Growth.). And in January 2012, the Congressional Budget Office (CBO) made a $69 billion downward revision to its 10-year Medicare spending projection — a technical correction that reflects emerging data showing surprisingly slow growth in outlays. Similar slowing trends have led to positive earnings surprises for publicly traded insurers.
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The framers of the ACA perceived broad provider-payment reform as the best prospect for slowing the long-term spending trend. But they needed scoreable savings, and they could ill afford to alienate backers by forcing through major payment reforms at the same time. The ACA planted the seeds for accountable care organizations (ACOs), bundled payment for episodes of care, patient-centered medical homes, and incentives for reducing readmissions. Now those seeds offer a way forward.
In site visits and interviews conducted for our ongoing qualitative research, the Center for Studying Health System Change found strong provider interest in payment reform and efforts to prepare for it, with the prospect of increasing constraint on Medicare payment rates cited as motivation. We see a combination of reformed delivery of care and broader units of payment as having the potential to allow providers to generate savings through steps that are less threatening to quality of care and access than are cuts in payment rates. More concretely, payment on the basis of shared savings or partial capitation can reward providers for delivering care more efficiently. This approach is preferable to merely paying providers less and less for business as usual.
There is a historical precedent for harsh, simple-minded cuts setting the stage for broad-based payment reform. Up until the early 1980s, Medicare reimbursed hospitals for costs incurred, subject to ceilings. The Tax Equity and Fiscal Responsibility Act of 1982 substantially tightened those limits, leaving hospitals with no upside — they could not earn a profit by reducing costs — and a growing downside for those whose costs exceeded the limits. The next year, legislation was passed, with the support of the hospital industry, replacing cost reimbursement with the inpatient prospective payment system (IPPS), with rates initially calibrated to leave Medicare outlays unchanged. Hospitals then had the opportunity to reduce costs per admission by shortening lengths of stay and to earn a positive margin in the process.
The IPPS is generally viewed as a major policy success: it encouraged hospitals to seek efficiencies, and when they found those efficiencies, it allowed the federal government to share in the savings. Should ACOs and other reforms prove effective, they will provide broader opportunities to increase the efficiency of delivery beyond shortening lengths of stay, such as managing chronic disease more effectively so as to keep beneficiaries out of the hospital in the first place. But our current challenge is more complex than the one faced in the early 1980s. Broadening the unit of payment will require reaching across different types of providers and helping to stitch together real delivery systems in places where now there are none.
The Medicare and Medicaid reforms in the ACA offered carrots for these improvements and, through Medicare, the looming threat of some big sticks on the horizon is encouraging hospitals to seek efficiencies.
Medicare spending in surprising slowdown | UPI.com
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U.S. Medicare spending growth has slowed even as enrollment rises, and could remain below targets set by Congress for the next 10 years, experts said.
Medicare recorded a sharp drop in the volume of doctor visits and other outpatient services early in 2010, from an annual growth rate of 4 percent growth to less than 2 percent.
"We thought, 'Wow, what's happening?'" chief Medicare actuary Rick Foster told The Washington Post in an interview. "Part B cost growth has slowed down so much, we're seeing virtually the lowest rates ever."
Washington Stuck Fighting Wrong Health-Care Battle | Bloomberg
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This brings us back to the progress being made beyond the Beltway toward a better combination of cost and quality in health care. Consistent with other evidence that points to a deceleration in cost pressures is a Congressional Budget Office report earlier this month showing that Medicare spending has risen less than 3 percent over the past year.
Bending The Health Care Cost Curve: More Than Meets The Eye? | Health Affairs Blog
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During the past months, a number of important articles have appeared in the healthcare literature on the subject of the recent slowing of health-spending growth in the U.S. In an article in January’s Health Affairs, economists at the Centers for Medicare and Medicaid Services suggest that the recession, even though officially ending in mid-2009, was the major factor in “extraordinarily slow” spending growth of 4.7 percent in 2008 and 3.9 percent in 2010, down from 7.5 percent in 2007 and double-digit growth in the 1980s and 1990s. Also citing recessionary causes, a report from the McKinsey Center for U.S. Health System Reform specifies declines in the rate of overall spending growth for eight consecutive years, from 9.2 percent in 2002 to 4.0 percent in 2009.
The purpose of this commentary is to suggest—through observations and data analyses—that independent of the recession, other fundamental and structural changes are likely contributing to the flattening of the cost curve, and further, that these changes have the potential to significantly alter the curve’s path into the future. Two independent analyses support this premise.
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Does a "hodgepodge of miscellaneous revenue raisers" include bake sales? How 'bout the penalty tax?
You may have missed it, but the major revenue provisions in the law were listed immediately after what you just quoted.
The mandate penalty isn't a revenue raiser (the CBO scored it as bringing in less than $4 billion a year once the exchanges are up and running). Its purpose is to prevent adverse selection in the new markets the law establishes--it largely replaces medical underwriting, in which insurers use your medical history to decide whether or not to deny you coverage and whether to charge you a higher premium.