Friday, January 1, 2010

Shaheen Cost Savings Measures Included in Health Care Reform Bill

WASHINGTON—
U.S. Senator Jeanne Shaheen on Dec. 21 announced that the final version of the Senate’s Patient Protection and Affordable Care Act will include four key cost savings provisions that she authored, including measures that will help Americans access more affordable prescription drugs, prevent costly hospital readmissions, improve the coordination of care, and protect access to comparative effectiveness research so that patients and doctors can make more informed choices. Early on Dec. 21, the Senate voted to proceed to consideration of the manager’s amendment to the Senate health reform bill, which includes a number of deficit reducing measures.
“The Patient Protection and Affordable Care Act will make health insurance more affordable for families and businesses, reduce the deficit, and stop insurance company abuses, like denying coverage because of preexisting conditions,” said Shaheen. “More than 30 million uninsured Americans will be able to get the care they need when we enact this legislation. It is necessary we pass and enact this legislation as soon as possible so that health care costs cannot continue to bankrupt middle class families, businesses, and our nation.”
Shaheen authored measures in the Patient Protection and Affordable Care Act will reduce costs while improving care for millions of Americans. The Shaheen measures included in the bill are:
Access to Affordable Medicines Act – increases access to lower-cost generic drugs by closing a loophole used by brand name drug companies to delay generic drugs from entering the market.
The Medicare Transitional Care Act - the Senate health care reform bill includes key provisions of legislation introduced by Shaheen and Senator Susan Collins (R-ME) to reduce preventable hospital readmission of Medicare beneficiaries. In 2004, Medicare spent an estimated $17.4 billion on unnecessary re-hospitalizations. The Senate bill provides for a pilot program where a qualified transitional care clinician would ensure that appropriate follow-up care is provided during the vulnerable time after discharge from a hospital.
Accountable Care Organizations (ACO) - a concept championed by Dr. Elliot Fisher of Dartmouth, ACOs are groups of providers held responsible for the quality and cost of health care for their patients. The Shaheen provision would expand ACOs and allow them to work with private plans to align Medicare, Medicaid, and private sector strategies for improving care. This provision creates incentives for doctors to provide higher-quality care at lower costs, maximizes the effectiveness of quality improvement and reform initiatives, and helps ensure that all Americans receive high quality care, no matter how they are insured.
Comparative Effectiveness Research – compares different treatments and identifies those that are most effective. This research is an essential element of improving patient outcomes while containing costs, and it has been pioneered by renowned institutions like Dartmouth.
According to Shaheen, overall, the Patient Protection and Affordable Care Act will stabilize the health care system. It makes health insurance more affordable, reduces the deficit, reins in health costs, stops insurance company abuses, provides choice and competition, provides tax credits to small businesses, expands access to preventive health care, extends Medicare solvency, and expands access to affordable prescription drugs. The bill will reduce the deficit by $132 billion in the first decade while expanding coverage to over 94 percent of Americans.
Also according to Shaheen, this historic legislation will stop health insurance abuses, demand greater accountability from insurance companies, and create more choice and competition for consumers. Millions of Americans will see immediate benefits from the legislation through a variety of cost reduction and care improvement measures.
The Patient Protection and Affordable Care Act has been supported by numerous business and consumer groups, including Families USA, American Cancer Society, American Medical Association, Business Roundtable and AARP.