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National
HEALTH CARE REFORM
What Is It and What Does It Mean To You?

Robert R. Pohls
Pohls & Associates
1550 Parkside Drive, Suite 260
Walnut Creek, California 94596
T: 925.973.0300 F: 925.973.0330
E-mail: rpohls@califehealth.com




           2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




    March 23, 2010                 Patient Protection and
                                   Affordable Care Act

    March 30, 2010                Health Care and Education
                                  Reconciliation Act of 2010


        What Is It and What Does It Mean To You?




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Karen Davenport, MPA
                        Director of Health Policy
                        Center for American Progress
                        Previously
                        ♦ Washington Director, Medicare Rights Center
                        ♦ Sr. Program Officer, Robert Wood Johnson
                          Foundation
                        ♦ Member, White House Health Care Reform
                          Task Force




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Robert Moffit, Ph.D.
                        Director, Center for Health Policy Studies
                        The Heritage Foundation
                        Previously
                        ♦ Senior Official, DHSS and OPM
                        ♦ Framed The Heritage Foundation’s Response
                          to Pres. Clinton’s Health Care Reform Plan
                        ♦ Helped Develop the Massachusetts Health
                          Insurance Reform Initiative




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Robert Smoldt, MBA
                        Chief Administrative Officer, Emeritus
                        Mayo Clinic
                        Assoc. Director, Health Care Policy Program
                        Arizona State University
                        Previously
                        ♦ Chair, Department of Planning & Public Affairs
                        ♦ Board of Trustees
                        ♦ Executive Committee




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




     Series of Questions
            ♦   How did we get here?
            ♦   What do we have?
            ♦   When and how will we feel it?
            ♦   Will it work?
            ♦   What will it cost and who will pay?
     Closing Remarks
     Questions from the Audience



            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS



                    “. . . the hazards of sickness, accident, invalidism,
                 involuntary unemployment, and old age should be
                 provided for through insurance. This should be a
                 charge in whole or in part upon the industries, the
                 employer, the employee, and perhaps the people
                 at large. “                     Teddy Roosevelt (August 1912)




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




   QUESTION:               How did President Obama succeed,
                           where others before him failed?




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS


                                        Bipartisan Health Care Summit
                                        Blair House -- February 25, 2010
                                        ♦ Preventing waste and   fraud
                                        ♦ Medical malpractice reform
                                        ♦ Reforming the insurance market
                                        ♦ Giving individuals choices
                                        ♦ Small businesses insurance pools




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM             SPEAKERS         FORMAT         QUESTIONS        REMARKS


                                          Bipartisan Health Care Summit
                                          Blair House -- February 25, 2010
                                          ♦ Preventing waste and   fraud
                                          ♦ Medical malpractice reform
                                          ♦ Reforming the insurance market
                                          ♦ Giving individuals choices
                                          ♦ Small businesses insurance pools

 Further Exploration:
  ♦ Undercover   investigations of health care providers
  ♦ Grants for alternatives to medical malpractice lawsuits
  ♦ Increasing Medicaid payments to doctors
  ♦ Expanding Health Savings Accounts (HSA’s)



              2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM             SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Affordable Care Act -- Reforms
  ♦ Alters rules for private health insurers
  ♦ Creates health benefit exchanges
  ♦ Imposes new requirements on employers
  ♦ Mandates individual coverage
  ♦ Changes Medicare and Medicaid
  ♦ Commits $350 million to fighting waste, fraud and abuse
  ♦ Creates incentives for improving the quality of care
  ♦ Reforms the health care delivery system
  ♦ Modifies the tax code




              2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM             SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Affordable Care Act -- Reforms
  ♦ Alters rules for private health insurers
  ♦ Creates health benefit exchanges
  ♦ Imposes new requirements on employers
  ♦ Mandates individual coverage
  ♦ Changes Medicare and Medicaid
  ♦ Commits $350 million to fighting waste, fraud and abuse
  ♦ Creates incentives for improving the quality of care
  ♦ Reforms the health care delivery system
  ♦ Modifies the tax code

  QUESTION:                 What will the Affordable Care Act
                            really change?


              2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM              SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Affordable Care Act – Implementation Schedule
  ♦ Medicare Part D coverage gap (start in 2010; continue to 2020)
  ♦ Small employer tax credits (2010); Large employer tax penalties
    (2014)
  ♦ Reforms physician payment models (2012)
  ♦ Tax penalties for individuals without qualifying coverage (2014)
  ♦ Increases minimum income eligibility level for Medicaid (2014)
  ♦ Creates health benefit exchanges (2014)




               2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM              SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Affordable Care Act – Implementation Schedule
  ♦ Medicare Part D coverage gap (start in 2010; continue to 2020)
  ♦ Small employer tax credits (2010); Large employer tax penalties
    (2014)
  ♦ Reforms physician payment models (2012)
  ♦ Tax penalties for individuals without qualifying coverage (2014)
  ♦ Increases minimum income eligibility level for Medicaid (2014)
  ♦ Creates health benefit exchanges (2014)


  QUESTION:                  When -- and how -- will we feel the
                             effect of the Affordable Care Act?



               2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM               SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Affordable Care Act – Primary Objectives
  ♦ Containing soaring medical costs

  ♦ Covering   more uninsured people
  ♦ Producing better results      for patients




                2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM                 SPEAKERS       FORMAT         QUESTIONS        REMARKS


 Affordable Care Act – Primary Objectives
  ♦ Containing soaring medical costs

  ♦ Covering   more uninsured people
  ♦ Producing better results        for patients

  QUESTION:                  Will the Affordable Care Act
                             achieve those goals?
                                ♦   If so, how?
                               ♦    If not, what more must be done?



                2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM              SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Congressional Budget Office -- Estimates
 ♦ Number of   uninsured will be reduced by 32 million (2019)
 ♦ 24 million people   will obtain coverage through health insurance
   exchanges (2019)
 ♦ 16 million morepeople will enroll in Medicaid and Children’s
   Health Insurance Program (2019)
 ♦ Projected Costs:

        CBO:                         $938 billion (over 10 years)
        White House:                 $100 billion saved (over 10 years)
                                     $1 trillion saved (years 11-20)


               2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS



 QUESTION:              Will the Affordable Care Act cost
                        America money or save America
                        money?
 QUESTION:              How will the costs of insuring more
                        Americans be paid?

 QUESTION:              Who will pay the costs?




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM                SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Judicial Challenges
 ♦ Thomas  More Law ED Michigan ruled on 10/13/2010 that the
   Center v. Obama individual mandate and penalties are
                    constitutional
 ♦ Commonwealth             ED Virginia heard oral arguments
   v. Sebelius              on 10/18/2010; set to rule by 12/31/2010
 ♦ Florida v.   DHHS        ND Florida scheduled hearing for 12/16/2010
 Mid-Term Elections




                 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM                SPEAKERS         FORMAT         QUESTIONS        REMARKS


 Judicial Challenges
 ♦ Thomas  More Law ED Michigan ruled on 10/13/2010 that the
   Center v. Obama individual mandate and penalties are
                    constitutional
 ♦ Commonwealth             ED Virginia heard oral arguments
   v. Sebelius              on 10/18/2010; set to rule by 12/31/2010
 ♦ Florida v.   DHHS        ND Florida scheduled hearing for 12/16/2010
 Mid-Term Elections

 QUESTION:                  What future challenges to health care
                            reform do you see?


                 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Karen Davenport, MPA
                        Director of Health Policy
                        Center for American Progress
                        Previously
                        ♦ Washington Director, Medicare Rights Center
                        ♦ Sr. Program Officer, Robert Wood Johnson
                          Foundation
                        ♦ Member, White House Health Care Reform
                          Task Force




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Robert Moffit, Ph.D.
                        Director, Center for Health Policy Studies
                        The Heritage Foundation
                        Previously
                        ♦ Senior Official, DHSS and OPM
                        ♦ Framed The Heritage Foundation’s Response
                          to Pres. Clinton’s Health Care Reform Plan
                        ♦ Helped Develop the Massachusetts Health
                          Insurance Reform Initiative




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
HEALTH CARE REFORM           SPEAKERS         FORMAT         QUESTIONS        REMARKS




                        Robert Smoldt, MBA
                        Chief Administrative Officer, Emeritus
                        Mayo Clinic
                        Assoc. Director, Health Care Policy Program
                        Arizona State University
                        Previously
                        ♦ Chair, Department of Planning & Public Affairs
                        ♦ Board of Trustees
                        ♦ Executive Committee




            2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
National
HEALTH CARE REFORM
What Is It and What Does It Mean To You?

Robert R. Pohls
Pohls & Associates
1550 Parkside Drive, Suite 260
Walnut Creek, California 94596
T: 925.973.0300 F: 925.973.0330
E-mail: rpohls@califehealth.com




           2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
26

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National Health Care Reform: What is it and What Does it Mean to You?

  • 1. National HEALTH CARE REFORM What Is It and What Does It Mean To You? Robert R. Pohls Pohls & Associates 1550 Parkside Drive, Suite 260 Walnut Creek, California 94596 T: 925.973.0300 F: 925.973.0330 E-mail: rpohls@califehealth.com 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 2. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS March 23, 2010 Patient Protection and Affordable Care Act March 30, 2010 Health Care and Education Reconciliation Act of 2010 What Is It and What Does It Mean To You? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 3. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Karen Davenport, MPA Director of Health Policy Center for American Progress Previously ♦ Washington Director, Medicare Rights Center ♦ Sr. Program Officer, Robert Wood Johnson Foundation ♦ Member, White House Health Care Reform Task Force 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 4. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Robert Moffit, Ph.D. Director, Center for Health Policy Studies The Heritage Foundation Previously ♦ Senior Official, DHSS and OPM ♦ Framed The Heritage Foundation’s Response to Pres. Clinton’s Health Care Reform Plan ♦ Helped Develop the Massachusetts Health Insurance Reform Initiative 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 5. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Robert Smoldt, MBA Chief Administrative Officer, Emeritus Mayo Clinic Assoc. Director, Health Care Policy Program Arizona State University Previously ♦ Chair, Department of Planning & Public Affairs ♦ Board of Trustees ♦ Executive Committee 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 6. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Series of Questions ♦ How did we get here? ♦ What do we have? ♦ When and how will we feel it? ♦ Will it work? ♦ What will it cost and who will pay? Closing Remarks Questions from the Audience 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 7. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS “. . . the hazards of sickness, accident, invalidism, involuntary unemployment, and old age should be provided for through insurance. This should be a charge in whole or in part upon the industries, the employer, the employee, and perhaps the people at large. “ Teddy Roosevelt (August 1912) 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 8. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 9. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS QUESTION: How did President Obama succeed, where others before him failed? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 10. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Bipartisan Health Care Summit Blair House -- February 25, 2010 ♦ Preventing waste and fraud ♦ Medical malpractice reform ♦ Reforming the insurance market ♦ Giving individuals choices ♦ Small businesses insurance pools 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 11. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Bipartisan Health Care Summit Blair House -- February 25, 2010 ♦ Preventing waste and fraud ♦ Medical malpractice reform ♦ Reforming the insurance market ♦ Giving individuals choices ♦ Small businesses insurance pools Further Exploration: ♦ Undercover investigations of health care providers ♦ Grants for alternatives to medical malpractice lawsuits ♦ Increasing Medicaid payments to doctors ♦ Expanding Health Savings Accounts (HSA’s) 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 12. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act -- Reforms ♦ Alters rules for private health insurers ♦ Creates health benefit exchanges ♦ Imposes new requirements on employers ♦ Mandates individual coverage ♦ Changes Medicare and Medicaid ♦ Commits $350 million to fighting waste, fraud and abuse ♦ Creates incentives for improving the quality of care ♦ Reforms the health care delivery system ♦ Modifies the tax code 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 13. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act -- Reforms ♦ Alters rules for private health insurers ♦ Creates health benefit exchanges ♦ Imposes new requirements on employers ♦ Mandates individual coverage ♦ Changes Medicare and Medicaid ♦ Commits $350 million to fighting waste, fraud and abuse ♦ Creates incentives for improving the quality of care ♦ Reforms the health care delivery system ♦ Modifies the tax code QUESTION: What will the Affordable Care Act really change? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 14. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act – Implementation Schedule ♦ Medicare Part D coverage gap (start in 2010; continue to 2020) ♦ Small employer tax credits (2010); Large employer tax penalties (2014) ♦ Reforms physician payment models (2012) ♦ Tax penalties for individuals without qualifying coverage (2014) ♦ Increases minimum income eligibility level for Medicaid (2014) ♦ Creates health benefit exchanges (2014) 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 15. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act – Implementation Schedule ♦ Medicare Part D coverage gap (start in 2010; continue to 2020) ♦ Small employer tax credits (2010); Large employer tax penalties (2014) ♦ Reforms physician payment models (2012) ♦ Tax penalties for individuals without qualifying coverage (2014) ♦ Increases minimum income eligibility level for Medicaid (2014) ♦ Creates health benefit exchanges (2014) QUESTION: When -- and how -- will we feel the effect of the Affordable Care Act? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 16. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act – Primary Objectives ♦ Containing soaring medical costs ♦ Covering more uninsured people ♦ Producing better results for patients 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 17. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Affordable Care Act – Primary Objectives ♦ Containing soaring medical costs ♦ Covering more uninsured people ♦ Producing better results for patients QUESTION: Will the Affordable Care Act achieve those goals? ♦ If so, how? ♦ If not, what more must be done? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 18. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Congressional Budget Office -- Estimates ♦ Number of uninsured will be reduced by 32 million (2019) ♦ 24 million people will obtain coverage through health insurance exchanges (2019) ♦ 16 million morepeople will enroll in Medicaid and Children’s Health Insurance Program (2019) ♦ Projected Costs: CBO: $938 billion (over 10 years) White House: $100 billion saved (over 10 years) $1 trillion saved (years 11-20) 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 19. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS QUESTION: Will the Affordable Care Act cost America money or save America money? QUESTION: How will the costs of insuring more Americans be paid? QUESTION: Who will pay the costs? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 20. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Judicial Challenges ♦ Thomas More Law ED Michigan ruled on 10/13/2010 that the Center v. Obama individual mandate and penalties are constitutional ♦ Commonwealth ED Virginia heard oral arguments v. Sebelius on 10/18/2010; set to rule by 12/31/2010 ♦ Florida v. DHHS ND Florida scheduled hearing for 12/16/2010 Mid-Term Elections 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 21. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Judicial Challenges ♦ Thomas More Law ED Michigan ruled on 10/13/2010 that the Center v. Obama individual mandate and penalties are constitutional ♦ Commonwealth ED Virginia heard oral arguments v. Sebelius on 10/18/2010; set to rule by 12/31/2010 ♦ Florida v. DHHS ND Florida scheduled hearing for 12/16/2010 Mid-Term Elections QUESTION: What future challenges to health care reform do you see? 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 22. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Karen Davenport, MPA Director of Health Policy Center for American Progress Previously ♦ Washington Director, Medicare Rights Center ♦ Sr. Program Officer, Robert Wood Johnson Foundation ♦ Member, White House Health Care Reform Task Force 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 23. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Robert Moffit, Ph.D. Director, Center for Health Policy Studies The Heritage Foundation Previously ♦ Senior Official, DHSS and OPM ♦ Framed The Heritage Foundation’s Response to Pres. Clinton’s Health Care Reform Plan ♦ Helped Develop the Massachusetts Health Insurance Reform Initiative 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 24. HEALTH CARE REFORM SPEAKERS FORMAT QUESTIONS REMARKS Robert Smoldt, MBA Chief Administrative Officer, Emeritus Mayo Clinic Assoc. Director, Health Care Policy Program Arizona State University Previously ♦ Chair, Department of Planning & Public Affairs ♦ Board of Trustees ♦ Executive Committee 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
  • 25. National HEALTH CARE REFORM What Is It and What Does It Mean To You? Robert R. Pohls Pohls & Associates 1550 Parkside Drive, Suite 260 Walnut Creek, California 94596 T: 925.973.0300 F: 925.973.0330 E-mail: rpohls@califehealth.com 2010 DRI Annual Meeting – San Diego Marriott Hotel & Marina – October 21, 2010
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