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Sen. Warner Announces Health Care "Cost Containment" Amendments

Tuesday, December 8, 2009

The following press release is from Sen. Mark Warner's office. The rollout of Warner's amendments is set for this morning at 10:15 am, with a series of back-to-back floor speeches followed by a news conference.
SEN. WARNER LEADS ELEVEN FRESHMAN SENATORS IN ANNOUNCING HEALTH AMENDMENTS TO EXPAND INNOVATION, LOWER COST
~ Package cuts red tape, speeds shift to value-over-volume ~

WASHINGTON -- Sen. Mark R. Warner organized a group of eleven freshman U.S. Senators today in introducing a package of amendments that will broaden and accelerate efforts to encourage innovation and lower costs for consumers across the U.S. health care system. The amendments have been endorsed by many of the nation’s leading business, consumer and health provider organizations, including AARP and The Business Round Table.

The eleven freshmen are Sens. Mark Begich (AL), Michael Bennet (CO), Roland Burris (IL), Kay Hagan (NC), Ted Kaufman (DE), Paul Kirk (MA), Jeff Merkley (OR), Jeanne Shaheen (NH), Mark Udall (NM), Tom Udall (CO) and Mark Warner(VA). Since Labor Day, these freshman Democrats have organized six times to deliver back-to-back Senate floor speeches on the need for common-sense health reform

“The health reform legislation now being considered by the Senate makes big strides in beginning to fix what is fundamentally broken in our present health care system -- but we believe that we can go even further,” Sen. Warner said. “Our amendments encourage a broader, quicker shift toward a more innovative 21st Century health care system. Our goal is a health care system that is more efficient and affordable for consumers, and one which will hold health care providers and insurers more accountable.”

The package of amendments strengthens the Senate’s current health reform proposal in three significant ways:

It establishes public-private arrangements to better synchronize changes across medicine, with an eye towards preventing cost-shifting to others.

It eliminates red tape and fights fraud, which drives-up costs.

And it compels Medicare to become a leader in overall health reform by speeding the move toward a higher-value, lower-cost model for the future.


A summary of the specific amendments follows.

# # #

Working More Closely with the Private Sector on Cost Containment

These amendments transform payment systems and improving quality to require the public and private sectors to move forward together on the shared goals of cost containment, improved quality, and delivery system reform.

· CMS Innovation Center: We give the new Innovation Center explicit authority to work with private plans to align Medicare, Medicaid and private sector strategies for improving care.
· Independent Medicare Advisory Board: We broaden the scope of the new Independent Medicare Advisory Board to look at total health system spending and make nonbinding, system-wide recommendations.
· Quality and Value in Private Insurance: We require the Secretary to consult with relevant stakeholders to develop a methodology for measuring health plan value, which would include the cost, quality of care, efficiency, actuarial value of plans. Developing the tools to assess health plan value will help consumers and employers make better apples-to-apples comparisons when they shop for health insurance and get the best value for their health care dollar.

Stepping-up the Commitment to Reduce Regulatory Barriers and Fight Fraud

These amendments require the U.S. Secretary of Health and Human Services (HHS) to aggressively pursue streamlined regulations and anti-fraud initiatives to ensure that all sectors of the health care system work together to improve value.

· Administrative Simplification: We require HHS to develop standards that will allow efficient electronic exchange and streamlining of information among patients, providers and insurers.
· Health Care Fraud Enforcement: We direct HHS to better utilize technology to prevent health care fraud.
· Eliminating Legal Barriers to Care Improvement: In tandem with this package, the freshman Senators will be requesting that the U.S. Government Accountability Office study current laws and regulations to identify barriers to implementing innovative delivery system reforms. We also will request that the U.S. Department of Justice and the Federal Trade Commission work together to provide clearer guidance to providers who wish to enter into innovative collaborative arrangements that promote patient-centered, high quality care.

Aggressively Moving Toward Delivery System Reform

These amendments allow HHS to experiment with promising new models to further lower costs, increase quality and improve patient health.

· Value-Based Purchasing: We require Medicare to implement pay-for-performance for more providers sooner, adding hospices, ambulatory surgical centers, psychiatric hospitals and others.
· Broader Payment Innovation: We allow a broader, more flexible transition to new payment models for Accountable Care Organizations (ACO).
· Medicare System Upgrades: We require HHS to modernize data systems so that valuable Medicare data can be shared in a reliable, complete, and timely manner.
· Good Quality Everywhere: We promote greater access to tele-health services, strengthen the provider workforce and the availability of high-quality hospital services to bolster health care access for Americans in underserved and rural regions.
P.S. The Pilot Online reports:
The amendments developed by the 11 senators focus on requiring more accountability by creating new methods for collecting and comparing information on costs, treatments and outcomes. They would require Medicare, for example, to switch to a pay-for-performance method, rather than simply pay for services rendered.

If approved, Warner predicts consumers will be able to more easily compare prices and services to get the best value.

What Travelocity and some of these sites did to airline fares, we hope to do with health care,” he said. “That got rid of the stuff in the market that doesn’t work.”

UPDATE: Bob Holsworth writes:
Warner’s initiative is a good example of the niche he is striving to carve out for himself in the Senate as a business-oriented progressive who is capable of bringing together people from across the aisle to focus on practical answers to pressing policy challenges. There is evidence that Warner is making an impression, in both this area and on financial regulatory matters.

[...]

...it will be fascinating to see how the business communty responds to Warner’s initiatives on health care.

Will they applaud his efforts to improve health care legislation by showing how business principles and technological innovation might support progressive policy goals.?

Or has this become simply a bottom line issue where Warner’s ultimate decision to vote yes or no on Pelosi-Reid-Obama is all anybody really wants to know?