New Health Care Cost Containment Plan Proposed A broad based coalition has proposed a comprehensive plan to contain fast-rising health care costs as an alternative to further destructive cutbacks in such program: a. Medica.d and Medicare. Called H.A.L.T., or Health Action to Limit Takeaways, the plan was drawn up over the past several months by health care experts working with the Health Security Action Council. The coalition includes more than a hundred labor, consumer, religious, senior citizen, business, civil rights and farm groups. Legislation embracing the cost containment proposals will be introduced earl in the next session of Congress, according to MILTON WILKOTZ Chairman of the Health Security Action Council. M Wilkorzcalled 1. "The only constructive alternative that has beer offered thus far to further cuts in programs. " If adopted, the plan would immediately save $5 billion annually in federal expenditures and would result in comparable savings in the private health sector. Over several years, the H.A.L.T. plan is aimed at bringing down yearly increases in health custs to the level of increases in the Consumer Price Index. Over the past year or so, the health care component of the CPI has continued rising at a double-digit pace despite the overall lessening of inflation: 9 The plan would be implemented in two phases. Under the first phase, hospital and nursing homes charges, doctors' fees and other health care costs would be limited to the necessary cost increases of the previous year. These limits on charges would include the Medicare and Medicaid programs as well as private insurance. After two years of this initial phase, the plan would be fully in place. The states would have the flexibility to work out specific budgets to contain health care costs within the general cost increase limits, as well as federal guidelines. These budgets would be determined in annual negotiations among a state health commission, Medicare intermediaries, providers, insurance companies and consumner representatives. The M.A.L.T. plan is "comprehensive rather than drastic," according to Melvin A. Glasser, Director of the Health Security Action Council. "It's a systematic rather than a piecemeal approach 22-020 0-83-11 to containing health costs" and thus would be likely to succeed where previous measures have failed". "It embodies long-advocated principles like prospective budgets for hospitals, already approved in principle" by the hospital and health insurance industry". Glasser added that "negotiation is a major element." "Hospital and doctors would be encouraged to work together and eliminate expen sive duplications," he added. The Council acknowledges that e plan is limited. For ex-1. it wouldn't help the unemployed who have lost Insurance coverage. or the working poor who have lost Medicaid protection under the budget cuts of the past two fiscal years. "A comprehensive national health insurance program is needed to help these people and millions of others," said the Council. But "since it does not appear politically viable at this time, H.A.L.T. offers an immediate program of restraining costs and protecting consumers." Under the Reagan budget cuts approved by Congress, over a million people have been cut from the Medicaid rolls and millions of others have suffered reduced benefits. Rep. Charles B. Rangel (D-N.Y.) recently wrote his House colleagues, "We want to avoid the annual agony and bloodletting which has been taking place as we seek piecemeal economies in a health system which is out of control. The H.A.L.T. plan gives us an opportunity to do that." Dear Colleague: I am deeply concerned with what is happening to the beneficiaries of health programs as a result of budget changes Congress made last year and last month. Increased deductibles and copayments are hurting the elderly poor. Over a million people have been cut from the Medicaid rolls. Those who still have Medicaid struggle to stay on the tightrope between larger and larger holes in the safety net, as limits and restrictions proliferare. Nineteen states have already limited use of Emergency Rooms and Outpatient Departments, while twenty-one have decreased numbers of visits to doctors, podiatrists and optometrists. Two states will no longer supply eyeglasses, cxcmo. to children. Ninc states have limited the frequency of prescriptions one state to a maximum of $30 per month. Co-insurance requirements have multiplied in the last year from 50 cents per prescription, to $2 for ambulance services. One state requires a medically needy individual, who already has proved indigency, to pay $30 as a condition of admission to a hospital. The millions of workers who have lost their jobs and family health protection as well, the elderly diabetic no longer able to afford insulin, the inner city hospitals under pressure to discharge extremely ill patients when their allowable twelve days ars up, confront us with Some of the results of Congressional actions and state implementation. I believe that surely, with the evidence now accumulated, the Members of Congress recognize that the way we have gone about reducing, Federal expenditures for health programs as unsatisfactory. We know that it will probably be necessary to go through a similar unsatisfactory process next year. A constructive alternative plan of achieving important sevings in eder: programs ha. Puan dovologed an session on Wednesday, Septemb in Room 2322 kayburn iron purpose of on proposal. ditures for health I am convening a briefing , 1982, at 2:00 p.m. Fuilding for the the cislative would make possible a reduction u the Tub stave. Rather than restraining increases in cost of hospital care alone, or hospital care under medicare alone, the plan deals with all the principle cost increasing elements in the health care system. Finally, this is a cost containment, rather than cost shifting, program. As such it is a major constructiva alternative to the present decreases in Federal expenditures in health programs by means of increasing obligations of the state, the locality, the private sector and individual patients. I hope it will be possible for you to attend the briefing session at which technical experts will be available to outline the plan and answer questions. |