A blog covering the health/care ecosystem and people.

Estimates on health spending in the U.S. are under-valued, according to The hidden costs of U.S. health care: Consumer discretionary health care spending, an analysis by Deloitte’s Center for Health Solutions. Health spending in the U.S. is aggregated in the National Health Expenditure Accounts (NHEA), assembled by the Department of Health and Human Services (DHHS) Centers for Medicare and Medicaid Services (CMS). In 2010, the NHEA calculated that $2.6 trillion were spent on health care based on the categories they “count” for health spending. These line items include: Hospital care Professional services (doctors, ambulatory care, lab services) Dental services Residential

Bob Blendon and his can-do team at the Harvard School of Public Health have done the heavy lifting for us by analyzing 36 telephone polls (that’s “polls,” not “poles”) looking at the role of health reform in the 2012 election cycle. I knew Bob Blendon when I was affiliated for a decade with Institute for the Future, and Blendon was affiliated as well as health politics consultant to the health team. He is the guru on this topic, so when I spotted his article, Understanding Health Care in the 2012 Election in this week’s New England Journal of Medicine, I dashed

The first day of the Health 2.0 Conference in San Francisco kicked off with a video illustrating the global reach of the Health 2.0 concept, from NY and Boston to Mumbai, Madrid, London, Tokyo and other points abroad. Technology is making the health world flatter and smarter…and sometimes, increasing problematic fragmentation, which is a theme that kept pinching me through the first day’s discussions and demonstrations. Joe Flowers, health futurist, offered a cogent, crisp forecast in the morning, noting that health care is changing, undergoing fundamental economic changes that change everything about it. These are driving us to what may

The average annual premiums for employer-sponsored health insurance in 2012 are double what they were a decade ago in terms of both total premium and worker contribution increases. The picture shows the story, according to the 2012 Employer Health Benefits Survey from the Kaiser Family Foundation (KFF). This annual survey polls small, mid-size and large employers to assess their updates for providing health insurance and prescription drug coverage to active and retired employees. The percentage growth of health costs in the past year were a “modest” 4%, according to KFF. Modest is a relative term: this single digit increase is indeed much

Most seniors look forward to aging in place, and are confident in their ability to do so. Such is the top-line feel-good finding from the National Council on Aging‘s (NCOA) survey, The United States of Aging, sponsored by USA Today and United Healthcare. A majority of seniors have a sense of purpose and plans for their future. Three-fourths of older Americans say staying physically fit through exercise and proactively managing their health is important. However, only 36% of seniors say they exercise or engage in physical activity every day. 11% never do. The most common chronic conditions noted by seniors

Amidst uncertainties and wild cards about health care’s future in the U.S., there’s one certainty forecasters and marketers should incorporate into their scenarios: consumers will bear more costs and more responsibility for decision making. The 2012 Deloitte Survey of U.S. Employers finds them, mostly, planning to subsidize health benefits for workers over the next few years, while placing greater financial and clinical burdens on the insured and moving more quickly toward high-deductible health plans and consumer-directed plans. In addition, wellness, prevention and targeted population health programs will be adopted by most employers staying in the health care game, shown in

With the stunning Supreme Court 5-4 majority decision to uphold the Patient Protection and Affordable Care Act (ACA), there’s a Roberts’ Rules of (Health Reform) Order that calls for liberating primary care beyond the doctors’ office. That’s because a strategic underpinning of the ACA is akin to President Herbert Hoover’s proverbial “chicken in every pot:” for President Obama, the pronouncement is something like, “a medical home for every American.” But insurance for all doesn’t equate to access: because 32-some million U.S. health citizens buy into health insurance plans doesn’t guarantee every one of them access to a doctor. There’s a

50% more women than men are worried about health care affordability and access in the U.S., revealed in a new Kaiser Opinion Poll, the Health Security Watch, based on interviews from May 2012. Overall, about the same proportion of men and women had problems paying medical bills in the past year — 26% vs. 27%, respectively. However, when it comes to self-rationing health care — delaying or skipping treatment due to cost — gender gap shows, with 52% of men and 64% of women delaying or skipping health care. Underneath these numbers are even greater gaps between men and women.

Transparency, data-based pharmacy decisions, incentivizing patient behavior, and outcomes-based payments will reshape the environment for marketing pharmaceutical drugs in and beyond 2012. Two reports published this week, from Express Scripts–Medco and PwC, explain these forces, which will severely challenge Pharma’s mood of market ennui. Express-Scripts Medco’s report on 9 Leading Trends in Rx Plan Management presents findings from a survey of 318 pharmacy benefit decision makers in public and private sector organizations. About one-half of the respondents represented smaller organizations with fewer than 5,000 employees; about 20% represented jumbo companies with over 25,000 workers. The survey was conducted in the

Some 500 data analytics gurus representing the health care ecosystem including hospitals, physician practices, life science companies, academia and consulting came together on the lush campus of SAS in Cary, North Carolina, this week to discuss how Big Data could solve health care’s Triple Aim, as coined by keynote speaker Dr. Donald Berwick: improve the care experience, improve health outcomes, and reduce costs. Before Dr. Berwick, appointed as President Obama’s first head of the Centers for Medicare & Medicaid Services, Clayton Christensen of the Harvard Business School, godfather of the theory of disruptive innovation in business, spokee about his journey

Even though Inside-the-Beltway economists have said The Great Recession of 2007 is officially over, it doesn’t look that way when you ask consumers about health spending in 2012, based on results from a survey conducted on behalf of the American Osteopathic Association (AOA). One in 5 U.S. adults is trying to lower their personal health spending. One in four is seeking free or alternate sources of health care. Overall, 1 in 5 people says their health has been negatively impacted by the economy. The AOA discovered that people in the U.S. whose health has been negatively impacted by the economic downturn were

While most Americans largely believe in motorcycle helmet laws, seatbelt-wearing mandates, and regulations to reduce sale in packaged foods, most are also concerned about the nation turning into the United States of Nanny. The Harris Interactive/Health Day poll of March 20, 2012, finds a health citizenry “pro” most public and safety regulations, from banning texting while driving to requiring the HPV vaccination (e.g., Gardasil). Specifically, as the chart shows, – 91% of U.S. adults are for banning texting while driving – 86% are for requiring vaccination of young children against mumps, measles, and other diseases – 86% also like to

How electronically connnected and communicative are nations’ health information infrastructures? Accenture has answered that question in its report, Making the Case for Connected Health. Accenture built a “connected health maturity index,” analyzing a nation’s level of health information exchange among users along with their level of health IT adoption among specialists and primary care doctors. Adoption was defined across four HIT functions: administrative tools, electronic patient notes, electronic alerts/reminders, and computerized decision support systems. Health information exchange was defined across seven connectivity dimensions: electronic communications, e-notifications, e-referrals, e-access to clinical data about patients who see a different provider, e-prescribing, and

Chronic illness represents $3 of every $4 of annual health spending in the U.S. That’s about $1.5 trillion. Living Well With Chronic Illness, a report from The Institute of Medicine (IOM), issues a “call for public health action” to address chronic illness through: – Adopting evidence-based interventions for disease prevention – Developing new public policies to promote better living with chronic disease – Building a comprehensive surveillance system that integrates quality of life measures, and – Enhancing collaboration among health ecosystem stakeholders: health care, health, and community non-healthcare services. The IOM recognizes the social determinants that shape peoples’ health status

Technology, autos, food and consumer products — two-thirds of people around the globe trust these four industries the most. The least trusted sectors are media, banks and financial services. Welcome to the twelfth annual poll of the 2012 Edelman Trust Barometer, gauging global citizens’ perspectives on institutions and their trustworthiness. This survey marks the largest decline in trust in government in the 12 years the Barometer has polled peoples’ views. Interestingly, trust in government among US citizens stayed stable. The top-line finds a huge drop in global citizens’ trust in government, with a smaller decline for business. There’s an interplay

To doctors working in eight countries around the globe, the biggest benefit of health IT is better access to quality data for clinical access, followed by reducing medical errors, improving coordination of care across care settings, and improving cross-organizational workflow. However, except for the issue of health IT’s potential to improve cross-organizational working processes, American doctors have lower expectations about these benefits than their peers who work in the 7 other nations polled in a global study from Accenture‘s Eight-Country Survey of Doctors Shows Agreement on Top Healthcare Information Technology Benefits, But a Generational Divide Exists. Accenture polled over 3,700 doctors working in

The health status of the American workforce is declining. Every year, unhealthy behaviors of the U.S. workforce cost employers $623 per employee annually, according to the Thomson Reuters Workforce Wellness Index. People point to smoking, obesity and stress as the 3 most important factors impacting health costs. Thomson Reuters and NPR polled over 3,000 Americans on their health behaviors, utilization and costs of health care, publishing their results in a summary, Paying for Unhealthy Behaviors in October 2011. 4 in 5 overall — and 9 in 10 of those with over $50,000 annual income — believe that people with healthy behaviors should receive a

This morning during my still-dark-at-5:15 am walk, my iPod was motivating me to “get up offa that thing,” as James Brown was motivating me to “release the pressure.” Two minutes into the song, he urges, “Get into the sunshine, church is out.” This brought to mind a publication I’ve taken time to review from the General Accounting Office (GAO) report to the U.S. Congress, Health Care Price Transparency – Meaningful Price Information Is Difficult for Consumers to Obtain Prior to Receiving Care, published in September 2011. While employers and health plans want consumers to become more engaged in their health, a key barrier facing

Walmart is increasing premium sharing costs for employees subscribing to health insurance, and cutting the benefit for part-timers. Quoted in the New York Times, a company rep said, “over the last few years, we’ve all seen our health care rates increase and it’s probably not a surprise that this year will be no different. We made the difficult decision to raise rates that will affect our associates’ medical costs.” In so doing, Walmart told the Times that they will, “strike a balance between managing costs and providing quality care and coverage.” MarketWatch wrote that Walmart will increase health care premium costs

With health reform uncertainties, growing health regulations, and ever-increasing costs, employers who sponsor health plans for their workforce will continue to cover active employees. That is, at least until 2017, according to the crystal ball used by Mercer, explained in the Health & Benefits Perspective called Emerging challenges…and opportunities…in the new health care world, published in May 2011. Note that it’s “active” employees who Mercer expects will retain access to health benefits. For retirees, however, it’s another story. They need to be ready to take on more responsibility, financially and perhaps going-to-market to select coverage, while employers may continue some level

Differences in race, ethnicity and income drive online health disparities, according to a poll from The Washington Post/Kaiser Family Foundation (KFF)/Harvard University Race and Recession Survey, based on data from early 2011. The underlying issue here is the online digital divide, which still persists for African Americans and Hispanics of lower socioeconomic status. Overall, 84% of U.S. adults use the Internet or email at least occasionally. However, only 69% of African Americans and 64% of Hispanics with less than $40,000 annual income use the Internet or email. However, income flattens Internet/email use: for people who earn over $40K a year, 95% of whites, 94% of African

Health care cost increases are unsustainable the world over; in developed nations, the forecast is even more dire given exploding demand for health services as citizens age. Cisco polled senior leaders in health systems globally to gauge their views on the challenging state of health care in their respective nations, and prospects for health system improvement. The triple-mantra for senior health leaders is access, efficiency, and quality. Access takes the form in this survey in maldistribution and insufficient number of health professionals. Efficiency looks like patients referred for unnecessary care coupled with long lines (queues) for needed services. Quality measurement continues to

For hospital CIOs, 2011 and 2012 are all about achieving meaningful use, focusing on clinical systems, safe-keeping health information, and staying financially healthy as an organization.  These insights are brought to you by the 22nd Annual HIMSS Leadership Survey, sponsored by Citrix. This survey has become the most important snapshot of health CIOs’ priorities looking ahead. This year’s survey results, unveiled week at HIMSS 2011 in Orlando, held some important findings. While achieving meaningful use is the top IT priority for the next two years (with 81% of organizations believing they’ll quality for MU in 2011 or 2012), clinical systems implementation and

An Explanation of Benefits (EOB) came in the U.S. mail yesterday. A plain piece of white 8.5″ x 11″ printed in tiny font with black ink, the logo of my health insurance company in the upper left of the form, and several lines of words and numbers showing me names of providers and facilities, dollar amounts billed, dollar amounts discounted, dollar amounts paid to the providers, and dollar amounts that were the patient’s responsibility — that would be me. The procedure was for a colonoscopy, for preventive screening and base lining for future reference. The good news: my colon looks just fine, and I’ll be reminded

‘Tis the season…perhaps, era…for scenario planning in health. The activity consumes a lot of my consulting time these days for stakeholders falling under the broad umbrella of “health.” With the news that Sam’s Club will offer health care for $99 out-of-consumers’ pockets, it got me wondering…where might Walmart be in the health care ecosystem in a few years, say 2015? Sam’s Club launched The Prevention Plan in January 2010, with a partner, U.S. Preventive Medicine. The “Plan” isn’t a health plan, per se; it’s a year-long subscription that gets the user some coaching for managing health risks. Step 1 is a blood

1 in 5 among all U.S. employers (22%) would likely drop health insurance coverage and let workers buy a plan through a health insurance exchange. However, most employers would expand wellness programs driven by incentives in health reform. Employers’ perspectives on the Affordable Care Act/health reform are mixed, according to a survey conducted by the Midwest Business Group on Health, co-sponsored by the National Business Coalition on Health, Business Insurance and Workforce Management. Not surprisingly, these views vary by whether the firm is large (>500 employees) or small. More large employers support the creation of Health Insurance Exchanges and would expand wellness services;

The one issue in health politics that’s got bipartisan support is health care IT. While Republicans in the House may try to pick away parts of the Affordable Care Act, the HITECH Act — part of the 2009 stimulus package formally known as the American Recovery and Reinvestment Act — will stay intact, according to most industry analysts (including me). However, political agreement doesn’t equal market adoption. So forecasting what 2011 will mean for health information technology requires some deeper analysis of additional issues. For today’s Health Populi, take a look at my annual health IT forecast in California HealthCare Foundation‘s

Just over one-half of U.S. employers plan to maintain their health plans in 2014 even if health insurance exchanges (HIEs) offer competitive priced health plans for individual employee health coverage, according to a survey of 1,400 employers by Willis and Diamond Management & Technology Consultants. 1 in 3 employers is not sure whether they’ll maintain their own health plan or shift employees toward an HIE. The Health Care Reform Survey 2010 measured U.S. employers’ knowledge of the Affordable Care Act (ACA) and its expected impact on employers’ benefits. 9 in 10 employers (88%) believe that ACA will increase the costs of the health plans with

“The impending Medicaid expansion will be the single biggest change in the program since its inception in 1965,” according to an analysis in the New England Journal of Medicine dated November 24, 2010. The Patient Protection and Affordable Care Act (PPACA, or ACA for short) will newly-insure 32 million Americans through dual strategies of (1) mandating uninsured people to buy into a health plan, via subsidies and health insurance exchanges; and, (2) expanding Medicaid to cover uninsured people with lower incomes. The CBO estimates that each of these tactics will add 16 million, for the total of 32 million people entering insurance plans

“The use of medications in older patients is arguably the single most important health care intervention in the industrialized world,” Dr. Jerry Avorn asserts in a concise analysis called Medication Use in Older Patients in the October 13, 2010, issue of the Journal of the American Medical Association (JAMA). Since the population over 65 is the biggest consumer of health care services (and thus, driver of costs), and continues to grow, the segment commands the attention of health system stakeholders: policymakers, payers, medical schools, and pharmaceutical drug researchers. Medicare Part D, which covers payment for seniors’ drug costs, put the Federal government in the

Improving patient care, reducing practice costs, growing revenues and attracting new patients are top-of-mind for a majority of doctors in the U.S. What about electronic medical records (EMRs)? Not so high on physicians’ priority lists, according to the second annual health IT survey conducted in July 2010 by CompTIA. When it comes to spending on health information technology, group practices told CompTIA they plan to spend more in 2011, whereas solo practices will keep IT spending flat. Among doctors who have already implemented EMRs, they’re looking for faster systems that are easier to use, cost less, and have greater interoperability. While cloud computing

Google is heavily favored by Democrats; Fox News Channel, no surprise, by Republicans. Citizens affiliated with a particular political party favor certain consumer brands, according to YouGov’s BrandIndex survey.  For Democrats (the blue folks), favored brands include Sony and Amazon. For Republicans (the red voters), top brands include the History Channel, Fox, and Lowe’s. The Google vs. Fox News Channel rift between the parties is huge: 66% of Democrats rank Google on top; 71% of Republicans rank Fox News #1. Google doesn’t even fall into the Republicans’ top ten brand names, according to Advertising Age. There’s some crossover in brand-loving across the two

Prescription drug formularies are getting more complex to drive cost-savings as well as promote adherence to drug regimens, as told by the data in the 2010-2011 Prescription Drug Benefit Cost and Plan Design Report, sponsored by Takeda Pharmaceuticals NA. The average rate of drug cost increases is 6.3%, compared to 4.4% in the 2009-2010 survey — the lowest rate of increase since this survey was launched. A key part of the story of the new value-based benefit design is told by the co-payment differentials for Rx drugs, shown in the chart. Health consumers who have three-tiered prescription drug insurance face an

There are two faces of America in The Great Recession: one is doing pretty well, thank you very much; the other is losing ground, and a lot of it. One Recession, Two Americas from the Pew Research Center is a survey of Americans’ home economics 30 months since the start of the recession which began in December 2007. The recession technically ended in June 2009, according to the National Bureau of Economic Research (NBER). One year after that ‘technical’ end, though, it appears about 1 in 2 Americans haven’t gotten the memo. Some of the Pew’s survey results appear in the chart. See the

There’s more confusion among U.S. voters than ever about what health reform, the Accountable Care Act (ACA), means. The September 2010 Kaiser Health Tracking Poll reveals an electorate that’s not only confused, but quite split in their support — with those who oppose the law even stronger against it than the pro’s support it. The Kaiser Family Foundation (KFF) survey found that the percentage of ACA proponents actually increased by 4 percentage points between August and September, from 45% to 49%. 41% of registered voters are “unfavorable,” and 10% still have no opinion about the law.  When it comes to

The U.S. has among the lowest tax-to-GDP ratios in the developed world, including state and local taxes. Only Mexico, Turkey and Korea have lower tax-to-GDP ratios among OECD members, at somewhere between 20 and 28%. The Organization for Economic Cooperation and Development (OECD) believes that U.S. tax rates are, in fact, too low and, even with modest tweaks upward, “would still keep the overall tax burden at a relatively moderate level and not impose excessive costs,” OECD states in its Economic Survey of the U.S., released today. “Tax breaks have grown significantly since the major tax reform of 1986,” the report notes, and

Americans feel pretty helpless about their individual ability to lower health care costs. Most people look to health insurance companies and the pharmaceutical industry to be responsible for lowering health costs in the U.S. A survey from Chadwick Martin Bailey and South Street Strategy looks at Americans’ views on health reform and health care costs in late summer 2010 and finds people still confused about how health reform will impact them, and impotent in their ability to lower their costs. American Consumers Uncertain About Health Reform summarizes the survey results, with the top line finding that 74% of people expect that

What will employers do with their health insurance sponsorship once health reform kicks into full-implementation in 2014? Will they drop coverage? There’s been some speculation that more employers would exit covering employees, but researchers at RAND see quite the opposite scenario. An additional 13.6 million workers will be offered health insurance coverage in a post-ACA America, based on a forecasting model the RAND team constructed. This increases the percentage of employers offering workers health insurance from 84.6% of workers to 94.6% of workers post-reform. The increase is driven, the model predicts, by two key factors: More demand for coverage by workers due

Americans’ confidence in the U.S. health system hit a low in July 2010, prompting people to say they’re more likely to delay or cancel visits to doctors, and to cancel necessary lab tests and medical procedures for the next three months. The composite consumer sentiment score of 95 is the lowest since Thomson Reuters launched the Index in December 2009, setting the Index at 100. Thomson Reuters Consumer Healthcare Sentiment Index is out for July 2010, the 8th month in which Thomson Reuters calculated this Index based on a monthly survey of 3,000 U.S. adults drawn from the company’s PULSE Healthcare Survey panel

Large employers expect health care costs to increase by 8.9% in 2011, up from 7.0% in 2011. To stem cost increases, employers will adopt an array of tactics, most prominently offering consumer-directed health plans (CDHPs) and expanding wellness programs that encourage incentives to healthy lifestyles. These expectations come from Large Employers’ 2011 Health Plan Design Changes, a survey report from the National Business Group on Health poll of large employers. 1 in 5 employers say CDHPs are the most effective approach for managing health care cost growth, as shown in the chart. 61% of employers will off CDHPs in 2011, 20% of whom will

What is a luxury good? A good working definition is a good for which demand increases as income grows. Contrast this to a “necessity good,” something that people need regardless of level of income. Baby Boomers are morphing their idea of what constitutes a luxury good versus a necessity in light of the recession, according to a new study from New York Life, MainStay Investments Boomer Retirement Lifestyle Study, published August 5, 2010. The chart illustrates that 3 in 4 Boomers put health care costs as a top #1 or #2 retirement concern. Furthermore, 98% of Boomers called health care

Women, on average, have far more contact with the health care system over their lifetimes than men do.   So kicks off an analysis of the Patient Protection and Affordable Care Act of 2010’s (PPACA) impact on women, published by The Commonwealth Fund. Realizing Health Reform’s Potential explains that PPACA should insure some 15 million women as well as give fiscal relief to those women who are under-insured or have pre-existing conditions. One of the key underlying factors which stacks the deck against women in health insurance coverage is the fact that insurance companies see young women a higher risk than

“We are only as good in treating patients as the information we have,” opined Dr. David Blumenthal, the national coordinator for health information technology in the Department of Health and Human Services, during yesterday’s launch of the new regulations on the meaningful use (MU) of health information technology. In the health care world, yesterday featured a star-studded line-up (live and via webcast) that ushered in the long-awaited meaningful use regulations that provide the roadmap for the adoption of electronic health records (EHRs) for providers, hospitals and doctors alike. Simultaneously, Dr. Blumenthal’s 4-page summary of the reg’s was featured in a tidy, useful article in the New

While 1 in 2 health CIOs say they’ll be prepared to apply for stimulus funding to adopt electronic health records in 2011, 80% are concerned about their ability to meet the requirements of meaningful use (MU). This lack of confidence on the road to MU is based on a host of challenges, from reporting requirements and lack of clarity of MU criteria to availability of IT talent and worries about access to capital. PricewaterhouseCoopers’ Health Research Institute (PwC) surveyed 120 health care CIOs and IT executives and published the detailed findings in the report, Ready or not: On the road to

This week’s issue of Advertising Age magazine dated June 28, 2010, includes cover stories about fast food advertising buoying cable TV revenues, car companies changing ad agencies, the Cannes advertising festival focusing on creativity and ROI, and…hospitals and health reform? Why do hospitals and health reform appear on the cover page of Ad Age? It’s the “new front of medical marketing,” Rich Thomaselli, Ad Age editor, calls it. With upwards of 30 million Americans gaining health insurance coverage under the Patient Protection and Affordability Act (PPACA, or “health reform” broadly writ), hospitals are competing for new business, along with aging baby

  Among seven developed countries – Australia, Canada, Germany, the Netherlands, New Zealand, the United Kingdom and the United States of America — it’s the U.S. that ranks dead last in the effectiveness of the nation’s health system. In particular, the U.S. rates poorly on the issues of coordination of health care, cost-related problems causing access challenges for health citizens, efficiency, equity, and long/healthy/productive lives for citizens. Of course, it also figures in that the U.S. spends more per capita on health care than any other country on the planet: $7,290 per person compared with Health Nation #1, the Netherlands, which

While 8 in 10 Americans say that their physicians should have access to information contained in their electronic medical record, only 8% of people said an EMR is available to them but they don’t use it. Fully 37% of American adults are not sure their physicians even have an EMR, according to a HarrisInteractive/HealthDay survey on e-health records conducted in June 2010. As the chart indicates, health consumers aren’t very engaged with other aspects of information applications that may be available to them, from scheduling a doctor’s visit over the Internet to accessing the results of lab trests via email. As Humphrey

Notwithstanding the inclusion of $20 billion (and counting) being allocated to incentives for providers to adopt electronic health records in the U.S. as part of the HITECH Act of 2009, the American public lacks an understanding about what EHRs really are. 26% of Americans ranked patients as the last among groups that would benefit from digital records, with the least to gain. This stunning datapoint comes from a survey conducted for Xerox, illustrated in the chart. 79% of adults with concerns about EHRs report stolen records as their top concern, followed by misuse of information (69%) and loss, damage, or corrupted records