Grace-Marie Turner

Grace-Marie Turner is president of the Galen Institute

Grace-Marie Turner is president of the Galen Institute, a public policy research organization that she founded in 1995 to promote an informed debate over free-market ideas for health reform. She speaks and writes extensively about incentives to promote a more competitive, consumer-driven marketplace in the health sector.

The Galen Institute has been instrumental in promoting Health Savings Accounts and other consumer-friendly ideas that transfer power over health care decisions from bureaucracies to individuals.

In December of 2004, Grace-Marie was invited by President Bush to speak on HSAs and consumer-directed health reform at the White House Economic Summit. She recently was appointed by former HHS Secretary Tommy Thompson to serve as a member of the National Advisory Council of Healthcare Research and Quality.

Grace-Marie also is founder and facilitator of the Health Policy Consensus Group, which serves as a forum for analysts from market-oriented think tanks around the country to analyze and develop health policy recommendations.

She is the editor of Empowering Health Care Consumers through Tax Reform, published by the University of Michigan Press.

In 1995-96, Grace-Marie served as executive director of the National Commission on Economic Growth and Tax Reform. For 12 years, she was president of Arnett & Co., a health policy analysis and communications firm in Washington, D.C.

Her early career was in politics and journalism, where she received numerous awards for her writings on economics and politics.


Wednesday, August 27, 2008

We Need a National Market for Health Insurance 

By Grace-Marie Turner

Categories:  Insurance Regulation

Much to our surprise, the Census Bureau reported yesterday that the number of people in the U.S. with health insurance actually increased by 3.6 million last year. That's the good news. The bad news is that nearly three million of them got their coverage through government programs.

The slide toward a government-dominated, taxpayer-supported health sector will continue unless the 45.7 million Americans who don't have insurance now are given more opportunities to buy private coverage.

States could help by lightening their regulatory burdens to encourage greater competition for more attractive and affordable coverage. The federal government needs to do its part by updating today's tax policies to better fit a mobile, 21st-century economy.

A new study by University of Minnesota economists Stephen Parente and Roger Feldman shows that Congress could boost by more than 12 million the number of people who have health insurance without spending taxpayer dollars. The change required is to allow people to buy health insurance across state lines, so they can shop for less expensive policies.

The cost of health insurance varies widely, but it is closely tied to state regulations and legislative mandates dictating what services and providers must be covered. More regulation and less competition generally mean less affordable coverage, and vice versa. For example, a typical health-insurance policy in heavily regulated New York costs more than three times as much as in less regulated Iowa ($388 a month versus $98 a month for the same coverage).

(Read the rest at The Wall Street Journal...)

Monday, August 25, 2008

Better to Compromise Cost-Effectiveness than Care-Effectiveness 

By Grace-Marie Turner

Categories:  Single-Payer Follies

Many political leaders have called on governments to evaluate the relative impact of various drugs and medical treatments in an effort to control health costs. But history has shown just how dangerous this approach to medicine can be, wrote Center for Medicine in the Public Interest's Robert Goldberg in The Oklahoman earlier this month.

Based on state-run comparative-effectiveness trials, Britain's National Health Service has been pushing patients onto a less expensive cholesterol-lowering drug called simvastatin in favor of Lipitor. While the British government has probably saved some money, it comes at a cost, according to Goldberg.

An eight-year study found that "major cardiovascular events" had increased by more than a third among patients forced to make the switch. As politicians grope for ways to control health care spending, they should be sure that their policies don't do more harm than good.

Comparative-effectiveness research has a role to play in fostering more cost-effective use of health resources -- but not at the expense of patient care.

Friday, August 22, 2008

Affordable Destinations 

Pt. 2

By Grace-Marie Turner

Categories:  Medical Tourism

More than 750,000 Americans left the country last year for less expensive medical treatments, a number projected to grow to six million by 2010, according to a study from the Deloitte Center for Health Solutions. Other key findings:

  • Outbound medical tourism currently represents $2.1 billion spent by Americans overseas for care and $15.9 billion in lost revenue for U.S. health care providers. Americans primarily seek this sort of care for elective surgical procedures.
  • The number of outbound medical tourists is projected to rise to 15.75 million in 2017, representing a potential $30.3 billion to $79.5 billion spent abroad by Americans. As a result, the potential lost revenue for U.S. health care providers could top $228.5 billion to $599.5 billion.
  • Medical care in countries like India, Thailand and Singapore can cost as little as 10 percent of the cost of comparable U.S. care, often including airfare and a stay at a resort.
  • In 2008, more than 400,000 non-U.S. residents will seek care in the United States, known as inbound medical tourism, and spend almost $5 billion for health services.

A separate study from Deloitte finds that the number of retail clinics in operation has soared by 220 percent from just 250 clinics in 2006 to more than 800 serving patients by the end of 2007.

Consumers are flocking to retail clinics not only for convenience, but also for the relatively low prices compared with visiting their primary care physicians for the same treatments. The cost of services provided by retail clinics ranges from $50 to $75, with the majority priced at $59, compared to a physician's office visit, which can cost from $55 to $250. Additionally, the cost for a retail clinic physical, at $25 to $49, can also result in savings compared to a physical at a physician's office that can cost anywhere from $50 to $200.

Thursday, August 21, 2008

Affordable Destinations 

By Grace-Marie Turner

Categories:  Medical Tourism

Fees for medical treatment abroad can range from one-half to as little as one-fifth the price in the United States, depending on the destination country and the type of procedure performed, writes Devon Herrick in "Medical Tourism: Health Care Free Trade."

For example, Apollo Hospital in New Delhi, India, charges $4,000 for cardiac surgery, compared to about $30,000 in the U.S. Medical licensing laws should be brought into the information age, where distance (or country) is irrelevant in procuring many medical services, writes Herrick. Further, insurers and employer-sponsored health plans should be able to offer financial incentives for seeking care abroad, much as they do currently for medical services within their network, without facing increased liability risks.

Federal and state government should lead by example, by allowing Medicare and Medicaid programs to send willing patients abroad. Medicare would particularly benefit from cost savings since it pays for a large volume of orthopedic and cardiac procedures.

Wednesday, August 20, 2008

Interstate Commerce: The Route to Wider Coverage 

By Grace-Marie Turner

Categories:  Insurance Regulation

Allowing consumers to purchase health insurance across state lines could bring down premiums and significantly reduce the number of uninsured, reports a new study by Steve Parente, Roger Feldman and others, released at a recent American Enterprise Institute conference.

The paper includes a simulation model and analysis of the impact of several new purchasing scenarios, including allowing competition among health insurers across state lines within four regions of the country.

The study's authors determined that the moderate (most likely) impact would be that 11 million more people who are currently uninsured would obtain coverage, and conclude that opening insurance to competition across state borders would lead to substantial additional health care access and health improvements among the vulnerable populations who currently find health insurance unaffordable.

In addition, development of a national market requires no additional federal resources other than support for legislation to permit it.

Tuesday, August 19, 2008

States of Frustration 

By Grace-Marie Turner

Categories:  Individual Mandates

Legislators are trying mightily to address problems in the health sector at the state level, but many of the forces driving their problems come from federal policy so they are continually frustrated.

In fact, Harvard's Steffie Woolhandler and David Himmelstein, two policy experts with whom I seldom agree on policy, have an important analysis in the latest International Journal of Health Services that explains how frustrating state-level changes can be.

They cite seven states that have undertaken major health reform initiatives since 1987, from Massachusetts to Tennessee to Washington State, only to see uninsured rates virtually unchanged, if not rising, by 2005, despite their massive and expensive reform efforts. (The authors, of course, are arguing for a government-run, single-payer system, but that's another story...)

State leaders feel compelled to take action. And the public is watching. Four local TV stations and several major newspapers covered my talk in Oklahoma. Legislators, like many others in the health sector, are watching and waiting for the result of the November presidential election, which will be hugely influential in setting the tone and direction for health reform initiatives next year.

Federal tax policy changes are vitally important as are state efforts to open up their markets and allow more competition and consumer choice in health care and health insurance products. Competition works.

Monday, August 18, 2008

Mandates are not OK 

By Grace-Marie Turner

Categories:  Insurance Regulation, Oklahoma

High health costs are very much on the minds of state legislators as they prepare for next year's sessions. I traveled to Oklahoma a few days ago for a speech before the House of Representatives' Health Care Reform Task Force in the beautiful and ornate House chambers.

State Reps. Doug Cox and Kris Steele co-chair the task force, set up by House Speaker Chris Benge to investigate ways to expand access to health insurance for Oklahomans. In my presentation, I warned against adding more mandates and regulations or following the highly-regulatory lead of Massachusetts.

Legislators often believe they are doing the right thing for their constituents by forcing insurers to charge level premiums to all policy holders, mandating comprehensive coverage of dozens of health care services and providers, and requiring companies to sell insurance to all comers.

But these policies backfire and distort the market, discouraging young and healthy people from buying insurance, telling people they can wait until they are sick to buy coverage. For example, New York has both guaranteed issue and community rating laws, and it has health insurance costs that are 3.5 times higher than less-regulated Iowa, according to a Forrester Research study for eHealthInsurance.

Friday, August 15, 2008

Fiscal Flameout in the Free State 

The folly of financing government by taxing smokers is proven yet again

By Grace-Marie Turner

Categories:  Maryland, Nanny State

Last year, the Maryland legislature doubled the cigarette tax to $2 a pack to pay for expanded health-care coverage, but eight months later, cigarette sales have plunged 25 percent and the state is in fiscal distress again. In New York City and State, tobacco taxes have been raised so many times that the retail cost can exceed $9 a pack -- about double the national average. Members of Congress should take note, writes The Wall Street Journal.

Democrats are now planning a $35 billion children's health program expansion funded by a 61-cent per pack tobacco tax increase, justifying the new levy as a "sin tax."

Comments the Journal: "OK, but if Americans don't start sinning a whole lot more, states and Uncle Sam are going to go broke."

Wednesday, August 13, 2008

Infirm & Evicted 

By Grace-Marie Turner

Categories:  Long-term care, Medicaid

Last week The Wall Street Journal reported that U.S. nursing homes are "forcing out frail and ill residents" and replacing them "with shorter-term residents likely to bring more revenue."

While federal law permits nursing-home evictions in some circumstances, state officials and patient advocates say facilities often go too far, seeking to evict those who are merely inconvenient or too costly. Residents with dementia or demanding families are among the most vulnerable, particularly if...they depend on Medicaid to pay their bills, the officials and advocates say.

Those on Medicaid bring facilities as little as half what they can get from residents who pay out of pocket, with private health insurance or through Medicare, the federal-state health program for the elderly.

This is key: Medicaid reimbursements to nursing homes were $4.4 billion less than the cost of treating beneficiaries last year, the Journal reports, and approximately two-thirds of nursing home residents who stay in facilities more than 90 days depend on Medicaid to pay their bills.

That's also fair warning to aging Americans who think the government will be there for them if they don't invest in their own long-term care insurance.

Tuesday, August 12, 2008

Primary MDs Need Lifelines 

Or they may flatline as a species

By Grace-Marie Turner

Categories:  Insurance Regulation, Massachusetts

Without some informed legislative correction, the days of of the trusted primary care doctor may very well be on the wane, wrote Dr. Kevin Kelleher recently in "'Who' not 'How': The Real First Step in Health Care Reform" for Medical Progress Today:

America's ongoing health care debate revolves around the problem of the uninsured: who they are and how to get them coverage. But this debate, while important, is fundamentally shortsighted. As Massachusetts is discovering now with its ambitious mandate for individual coverage, moving hundreds of thousands of people into an overburdened health care system leaves people with insurance, but no access to doctors.

And having health insurance without access to doctors is like having a car without the key to run it: you're not going to get anywhere you really need to go. Instead, health care reform must start by reinvigorating the patient-physician relationship, which is the key to better access, better health, and lower costs.

..The first step in returning sanity to American health care must be to decrease the need for volume-based primary care by increasing reimbursement for personalized quality care, thereby fostering the creation of a true "medical home". By increasing reimbursements, doctors gain the ability to spend more time with their patients to assess problems and concerns, discuss how lifestyle choices affect patient's risk of disease, and to reinforce the value of routine screening and prevention measures. Compensation should reward cognition, quality, and outcomes based on best standards and evolving science, not just rote procedures and quantity.

...Fundamental changes in payment systems, tax structure, and tort reform will all be needed to support patient-centered care. Public and private insurers must also support health information technology in all physician offices, regardless of size; HIT should be founded on the principles of data portability, privacy, and ease of communication between physicians and patients. Finally, primary care physicians must begin a public education campaign, starting with patients and moving up to policy makers, to convey that national health care reform must begin with primary care reform.

The days of a trusted primary care doctor, who can talk compassionately with you about your diabetes or cancer diagnosis, as well as your child's chicken pox or the need for their polio vaccination, are numbered. If changes are not swiftly and effectively implemented over the next decade, patients' best advocate for comprehensive care will become extinct.

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