The Regulatory State Reaches the Wellness Industry

The Equal Employment Opportunity Commission (EEOC) has finalized rules on how employers can use wellness programs. By current federal standards, the rules are concise: 19 pages pertaining to the Americans with Disabilities Act and 17 pages pertaining to the Genetic Information Nondiscrimination Act. Both laws are extremely popular. The ADA (1990) passed by 91-6 in the U.S. Senate and 377-28 in the U.S. House of Representatives. The GINA (2008) passed by 95-0 in the Senate and 414-1 in the House.

These laws are meant to prevent discrimination. However this bumps against the real world where health insurers cannot charge different premiums to individuals who are sick. The Accordable Care Act (2010) allows employers to offer incentives to workers who participate in wellness programs, and can offer financial incentives up to 30 percent of premium (or up to 50 percent for anti-smoking programs). However, participation in a wellness program also necessitates surrendering personal health information to an employer who would otherwise be barred from having it (under the Health Insurance Portability and Accountability Act, 1996).

The Fantasy of Single-Payer Health Care in the States

(A version of this Health Alert was published in the Washington Examiner)

One of the defining characteristics of Bernie Sanders' socialism is single-payer healthcare, a fully taxpayer-funded universal medical system. Single-payer healthcare has long had a following in the United States, but it is unlikely to become federal policy. Obamacare's setbacks have made Americans less confident than ever that the federal government could operate such a system.

So single-payer advocates are focusing on individual states. This November Coloradans will vote on single-payer healthcare. A couple of years ago, Vermont's governor tried to institute it, but gave up short of the finish line. Other states will surely try. I would put Oregon and (maybe) Hawaii at the top of the list of states to watch.

If successful, this would be a Canadian-style roll-out of single-payer healthcare, which began in individual provinces in the mid-20th century and subsequently won federal support. However, there are significant obstacles to any state instituting true single-payer healthcare in 21st-century America, even if the people or politicians choose it.

Health Services 50 Percent of GDP Growth

This morning’s third estimate of GDP for the first quarter significantly increased the estimate of health spending, such that it comprised one half of GDP growth in the first quarter.

Spending on health services continue to dominate weak GDP growth. Growth in health services spending of $33.3 billion (annualized) comprised 50 percent of GDP growth. However, there was shrinkage in personal consumption expenditures on goods and private domestic investment. This meant personal expenditures on services grew much more than GDP overall. Growth in spending on health services amounted to 62 percent of growth in personal consumption expenditures and 35 percent of spending on services. Spending on health services grew by 6.4 percent, almost twice as much as growth in spending on non-health services (Table I).

Consumer Price Index: Rx Prices Decline

Hard to believe, but prescription drug prices actually declined in May’s Consumer Price Index – down by 0.4 percent versus all-items CPI increasing by 0.2 percent and even medical care CPI increasing by 0.3 percent (Table I).

Health Technology Forum: DC June 22 - The Doctors Speak!

Join us on June 22 at 6 p.m. in Washington, DC for the next Health Technology Forum: DC.

Health Technology Forum: DC has hosted entrepreneurs and others with great solutions to our healthcare challenges.

Now, it's time for the doctors to speak! Join us for a panel of physicians who will explain the impact technology is having on their practices. What is working well? What is working poorly? What new health technologies do they want to see in the next few years to improve their abilities to take care of patients?

Learn more and RSVP at this link.

Producer Price Index: Pharma Prices Finally Tame

The Producer Price Index (PPI) for final demand goods grew 0.7 percent last month, or 0.3 percent less food and energy. Remarkably, prices for pharmaceutical preparations and medical devices grew less. Pharmaceutical prices were actually flat (Table I).

The Real Lesson of John Oliver’s Medical Debt Forgiveness Stunt

Late-night TV host John Oliver recently caused a stir by attacking debt collectors in a clever way. He set up his own collection agency, bought $15 million of medical bad debt, and then forgave it all. This was all done on TV, to the cheers of his audience.

Oliver claimed to have outdone Oprah Winfrey, who once gave a car to each person in her studio audience. Oprah’s car give-away cost $8 million, just over half of Oliver’s. So, Oliver wins the charitable ego competition, right?