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| The health care reform debate, one of the most important policy discussions we have had in decades, is growing increasingly contentious. The rhetoric has become divisive and, in some cases, misinformed. |
| Horizon Blue Cross Blue Shield of New Jersey and our industry support the basic principles promoted by President Obama for health care reform: to increase the number of insured, slow rising health care costs, and improve the quality of care. We need to reform health care now. In fact, the health insurance industry last year made substantive reform proposals to move the nation toward these goals without dismantling American health care. |
| As Americans have become more concerned about the current direction of reform efforts, some members of the Administration and Congress have shifted their strategy to attack and, in a few cases, even demonize anyone who disagrees with any aspect of their proposals. They have also shifted their terminology referring to “health insurance reform” not health care reform as health insurers become one of their targets. |
| In this new climate, some politicians are even suggesting that health insurers’ profits are the cause of rising health care costs. According to a 2008 McKinsey Global Institute study, however, of the more than $2 trillion spent on health care in America in 2006, just one percent went to health plan profits. |
| There are many reasons that health care costs continue to increase significantly. Numerous studies have indicated that as much as 30% of health care spending is for ineffective or inappropriate care. |
| Health insurers support many of the current reform proposals to expand coverage for the 47 million Americans uninsured, but we believe more needs to be done on the issues of slowing the growth in costs and improving quality. Health insurers have proposed reforms that hit all these important goals, including requiring coverage for everyone, research to compare the effectiveness of medical treatments, new tax incentives to encourage more small businesses to offer coverage, and reimbursing hospitals and physicians for providing evidence-based care with incentives for better outcomes, not on the volume of services delivered. |
| Health insurers are supporting sensible ways to eliminate preexisting condition requirements. Despite our collaboration of this issue, some politicians continue to attack health insurers for denying coverage for preexisting conditions without explaining that many state laws and regulations provide for such exclusions to prevent people from foregoing paying into the health insurance pool until they become sick. That is the case in New Jersey. |
| Our agreement to broad and basic principles, however, does not mean assent to every idea proposed by Congress. Certain proposals, such as the government-run health plan, will radically transform our health care system and will increase, not decrease, costs and fail to insure all Americans. According to the Congressional Budget Office, the House of Representatives' reform plan will cost taxpayers more than $1 trillion over a decade and still leave 17 million Americans uninsured by 2019. |
| Our industry’s opposition to this one flawed proposal does not mean we oppose health care reform. It means we believe reforms should improve our current system, not dismantle it. After all, 80% of Americans who have coverage rate their own health insurance as good or excellent.1 |
| Proponents of a government-run plan suggest that if Americans like the coverage they have, they will be able to keep it. A Lewin Group study, however, indicates that due to the government’s inherent competitive advantages and price-setting ability, 119 million of the 170 million people currently covered by private insurance would switch to a government-run health plan. This will decimate the private insurance market. |
| Moreover, due to the government-run health plan’s lower reimbursements, hospitals and doctors will have to further shift costs to private insurers to a greater extent than they do now because of low Medicare reimbursements. This demand for higher reimbursements will make private coverage more unaffordable for employers and uninsured individuals. Ultimately, the government-run plan will be your only option, which means Americans will have a single-payer, government-controlled health care system. |
| Competition and innovation are fundamental and unique to American health care. These forces have produced incredible advances in medical technologies, treatments, and medicines, which have improved the health of millions of people around the world. The creation of a government-run health plan will reduce, not increase, competition and innovation resulting in fewer choices for Americans, delays and rationing of care. |
| Furthermore, the claim that a government-run plan is necessary to “keep health insurers honest,” beyond being offensive, is just plain wrong. Questioning the integrity of the more than 5,000 employees of Horizon BCBSNJ and the hundreds of thousands of heath plan employees across the country is a gross mischaracterization and counterproductive to building consensus for reform. |
| Political tactics driven by consultants and public opinion polls are divisive and do little to build the necessary support on such an important societal issue. This is a time for honest, reasoned and thoughtful debate about complex issues that will affect every American and more than 17 percent of our economy. |
| Americans want to make health care better and more affordable. They want to improve upon, but preserve what they have. Health insurers are committed to health care reforms that meet those objectives. Only by thoughtfully and honestly working together can we develop sensible solutions that are uniquely American. |
| 1 Rasmussen Reports, National Survey of 1,000 adults, August 1-2, 2009. www.rasmussenreports.com |
