Bay Area Council Blog: Healthcare Archive

healthcarecosts

SUPREME COURT RULING RETURNS FOCUS TO CONTROLLING COSTS AND IMPROVING HEALTH

In a statement today on the U.S. Supreme Court ruling upholding the federal Affordable Care Act, Bay Area Council President Jim Wunderman said: “Today’s ruling by the U.S. Supreme Court frees us to focus on the state-based details of fixing our broken healthcare system The next step is to use the tools available at a state level to reduce costs for businesses and consumers, make the system more efficient, transparent and understandable, and improve the quality of care for everyone.”

“Fixing our broken healthcare system is an economic imperative,” Wunderman continued. “Our current healthcare costs put us at a distinct economic disadvantage with our global competitors that we can’t afford as we work to lift ourselves out of recession. The Bay Area Council is focused on achieving market-based solutions that will drive greater efficiencies in the delivery of health care, control costs for businesses and consumers, and improve the value we get from our healthcare system.”

Under the legal framework provided by the Affordable Care Act, the Bay Area Council has been at the forefront of ensuring that changes to our healthcare system are implemented in a way that works for California businesses.  Last year, the Council issued a Roadmap to a High Value Health System that laid out the key priorities for promoting quality and affordability and recently issued a separate study on The Economic Impact of the Affordable Care Act on California. The study concluded that implementing the federal legislation will create almost 100,000 jobs in California and boost economic activity by $4.4 billion.

“The Council is working to ensure that any fixes we make fairly spreads the burden of healthcare responsibility and costs across all those who have a stake in the system,” Wunderman said. “A healthcare system that shifts a disproportionate share of costs to businesses and employers is ultimately unfair and unsustainable and will irreparably harm our economy and our ability to compete globally.”

Through that lens, the Council has been deeply involved in developing California’s Health Benefit Exchange, a new marketplace authorized by the Affordable Care Act for private insurance that aims to make health coverage more affordable and accessible for all, and provide greater transparency for businesses and consumers to make informed choices about their healthcare purchases. “We need greater focus on controlling costs, increasing the value we get from our healthcare system, and improving public health,” said Micah Weinberg, senior policy advisor for the Bay Area Council. “If we’re not working to provide more value, make the system more efficient and transparent, we’re focused on the wrong things.”

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Affordable Care Act Creates Almost 100K Jobs, Boosts Economic Activity in California by $4.4 Billion

A new study by the Bay Area Council Economic Institute suggests that if the Supreme Court strikes down the Affordable Care Act, it may have a negative impact on the California economy.

The study, The Economic Impact of the Affordable Care Act on California. concludes that the federal health care law would create almost 100,000 new jobs across California and boost economic output by $4.4 billion. The biggest expected job gains occur in Southern California, with almost 58,000 new jobs, followed by the Sacramento Valley with almost 13,500 new jobs, the Bay Area with 7,600 jobs, San Diego County with almost 6,500 jobs and the remaining 10,000 jobs spread throughout other counties.

“In the debate over the federal health care law, this study shows there has been more heat than light when it comes to understanding economic and jobs impacts,” said Jon Haveman, study co-author and chief economist for the Bay Area Council Economic Institute, the research arm of the Bay Area Council. “By focusing on expanding health insurance coverage, making our health care system more efficient and making our workforce healthier, we can realize important employment and economic gains.”

Download the full report: The Economic Impact of the Affordable Care Act on California.

Driving the employment gains is an overall rise in economic activity stemming from increased spending on healthcare and medical services and the secondary benefits of that money flowing to other parts of the economy. That increased spending will boost overall economic activity in the state by $4.4 billion. Again, the biggest gains will be in Southern California, where net economic activity increases by $3 billion. Sacramento County is the next largest beneficiary of increased spending, with net economic output rising by almost $608 million.

Those figures take into account the dampening impact that provisions such as the employer mandate is expected to have on hiring and economic activity. The mandate, which is among the more hotly contested elements of the Affordable Care Act, requires large employers to provide their employees with health insurance or pay a fine. And yet, the study observes that the employer mandate is a “crucial tool” for the overall expansion of healthcare coverage that on net is a job creator in the state.

“The Bay Area Council’s new economic impact report shows that making the insurance market fairer and more inclusive is an economic boon to the state,” said Julian Canete, President & CEO of the California Hispanic Chambers of Commerce (CAHCC). “The report demonstrates how the federal health care law will help communities such as California’s Latino-owned businesses and workforce by enhancing economic and health conditions to strengthen California’s economy.”

By expanding health care coverage, the study found, the Affordable Care Act will also expand the overall labor force by better maintaining the health of the workforce and preventing workers from being sidelined because of health problems. Broader coverage will also reduce “job lock,” in which uncertainty about changing health insurance discourages workers from seeking better jobs.

“The Affordable Care Act provides an important framework for expanding health care coverage in a way that can boost employment, increase overall economic activity and make people healthier,” said Dr. Micah Weinberg, study co-author and Senior Policy Advisor for the Bay Area Council.

The study is careful to note that “the ultimate impact of health care reform, though–both in terms of its true economic implications and whether it achieves its substantive policy goals–depends heavily on implementation, which will require close partnership between the federal government, the states, and the private, charitable, and non-profit sectors.”

“The Bay Area Council is playing a leadership role in the business community in working closely with state officials and other key policy makers in implementing the Affordable Care Act in California, keeping the focus on reducing health care costs and improving public health. These are the things that will help improve California’s business climate and keep us competitive in the global marketplace,” said Jim Wunderman, President and CEO of the Bay Area Council.

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Council Partners on First-of-Its-Kind Website to Educate Businesses About Health Care Reform

The Bay Area Council joined with California’s leading business organizations today to launch the Health Law Guide for Business, a first-its-kind, business-oriented website (www.healthlawguideforbusiness.org) aimed at providing accurate and easy to understand information about the implementation of the Patient Protection and Affordable Care Act in California. The guide is tailored specifically for the business community, will help business owners navigate through all 2,409 pages of the health care law with one simple website.

“The Health Law Guide for Business is a practical and fact driven website that houses the most current information regarding the new health care law.  It was created by California businesses for California businesses, it will be an important resource for those interested in the law’s business-specific provisions like colleagues, employees and the media,” said Dr. Micah Weinberg, senior policy advisor to the Bay Area Council. “Corporate leaders can use the Health Law Guide for Business to learn about the provisions in the law that will have the greatest impact on their bottom lines.”

The website, funded by The California Endowment, was created by a partnership that includes the Bay Area Council, California Hispanic Chambers of Commerce, California Small Business Development Centers,  Pacific Business Group on Health, Silicon Valley Leadership Group, Small Business Majority, Small Business California, and The Los Angeles Area Chamber of Commerce to address the need of California’s business community to stay informed of the implementation of and to help address misinformation about the law.

With a law that includes as many levels of benefits, complexities and details as the health care law, it’s understandable that many California employers remain confused about what the law means to them and how it will impact their business. A report by Pacific Community Ventures, Health Care and Small Business: Understanding Health Care Decision Making in California, found that out of the 804 California small business employers surveyed, 43 percent said they are more likely to offer health insurance after learning of key benefits – like tax credits – made available by the health care law.

One of the most helpful features of the website is a “tax credit calculator” helps employer’s estimate savings available under the law. With videos, interactive surveys and an easy to use format, the online tool includes numerous elements to serve a variety of preferences for gathering and retaining information.

The Health Law Guide for Business website reflects the most significant updates and developments in the process to implement the health care law in California. In 2010, California became the first state in the nation to enact legislation creating an Affordable Insurance Exchange as required under the federal health care law. Starting in 2014, the California Health Benefit Exchange will allow individuals and small businesses to compare health plans, get answers to questions, find out if they are eligible for tax credits for private insurance or health programs, and enroll in a health plan that meets their needs. The Exchange is separated into two separate programs, the Individual Exchange and the Small Business Health Options Program (SHOP).  The SHOP will allow small businesses to band together to create a large purchasing pool so that small business owners will have access to the same lower rates that large employers have enjoyed for decades.

“Small businesses will discover that the most value from using the website will be a greater understanding of the changes in our health care system that have already gone into effect and allow them to plan for those that lie ahead,” said Scott Hauge, president of Small Business California. “Until 2014 when the California Health Benefit Exchange is fully functioning, the Health Law Guide for Business will allow them to access key updates, milestones, information on key benefits and news.”

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Improving Business Climate Tops Council’s 2012 Priorities

Revving up the Bay Area and state economies will lead the Bay Area Council’s top priorities for 2012, with specific focus on reforming the California Environmental Quality Act (CEQA), creating a healthcare system that places a premium on controlling costs, and winning substantive reforms to our unsustainable public pension system. Those priorities are among five in which the Council will invest considerable time, energy and resources during the coming year. The Council will also focus on modernizing Caltrain, the outdated commuter rail service in the heart of the region’s biggest economic and jobs engine. In addition, the Council will expand its successful initiative to grow trade with China.

The priorities were finalized last week by the Council’s Executive Committee under the leadership of new Council Chair Janet Lamkin, who oversaw a comprehensive review of the Council’s priorities over the past several months. In establishing the priorities, the Executive Committee relied on staff research and analysis of various issues, member surveys, and a series of individual and group meetings.

Reforming CEQA. Despite some sector-specific dynamism, new research by the Council’s Economic Institute shows that the Bay Area economy essentially has been stuck in neutral for the past two decades.  Business leaders overwhelmingly point to burdensome regulations, including CEQA, workers’ compensation laws, and other red tape, as a main source of the problem.  The Council will produce empirical research to support what we know anecdotally.  We will build and lead a coalition of business groups and others in a major five-year effort to reduce the business regulations that have been stifling the Bay Area and California.  A key focus will be on stopping the continuing expansion of the California Environmental Quality Act and returning CEQA to its original scope and intent. To join us in reforming CEQA, please contact Policy Vice President Matt Regan at (415) 946-8710 or mregan@bayareacouncil.org.

Controlling Healthcare Costs. The healthcare cost-escalation crisis continues, harming businesses and consumers alike and jeopardizing our global competitiveness.  The Affordable Care Act created a framework that can be used to ratchet down rising health care spending, via state-based implementation. The Bay Area Council will continue to lead the business community and other allies behind a strategic vision of an affordable, high-quality health care system for California.  We will implement that vision through legislation to be enacted in 2012 and 2013 that will prioritize market-based solutions and technological innovations for reducing healthcare costs and improving patient health outcomes. To join us in controlling healthcare costs, please contact Senior Policy Advisor Micah Weinberg at mweinberg@bayareacouncil.org.

Reforming the Pension System. California’s unfunded pension and liabilities are estimated at $265 – $737 billion.  Add to that unfunded healthcare and pension liabilities at the county, city and special district level, and the numbers soar past the imagination.  In the short term and, especially in the long term, these liabilities mean much less money for services, education and infrastructure.  The Council will work with Governor Jerry Brown and proponents of a potential 2012 ballot measure to ensure that California reforms and manages public pensions in a fiscally stable manner. To join us in reforming pensions, please contact Policy Vice President Matt Regan at (415) 946-8710 or mregan@bayareacouncil.org.

Modernizing Caltrain. Surveys of business leaders and residents alike consistently cite traffic as the Bay Area’s top problem.  Congestion on Highway 101 between San Jose and San Francisco – our country’s most economically productive corridor – has particularly escalated.  Modernizing Caltrain would substantially increase its ridership and take thousands of cars a day off of Highway 101. Unfortunately, the modernization project has partial but incomplete funding.  The Council will lead an effort to build public and political support  to secure final funding and clear other hurdles, allowing the project to be completed, thereby reducing some of our region’s worst traffic. To join us in modernizing Caltrain, please contact Policy Vice President Michael Cunningham at (415) 946-8706 or mcunningham@bayareacouncil.org.

Expanding China Trade. Global trade is among the biggest drivers of Bay Area economic activity. Through our existing relationship with the Shanghai Yangpu District and a new large-scale “Technology Park” opportunity in Shanghai, we will continue to expand the presence and clout of Bay Area businesses in China with a physical landing pad, and attract more Chinese companies and investments to our region. To join us in increasing trade with China, please contact Director of Global Initiatives Bing Wei at (415) 946-8270 or bwei@bayareacouncil.org.

In addition to these strategic priorities, the Council will continue to collaborate with other partners in supporting a range of key issues, including cybersecurity legislation, high speed rail, science and technology education, water and energy efficiency, and protecting the Hetch Hetchy water system, among others.

healthcosts

Using Innovation to Control Healthcare Costs

With the goal of creating a cost-effective, high-quality healthcare system in California among our top priorities for 2012, the Council’s Healthcare Committee met recently with Peter Lee, Executive Director of the California Health Benefit Exchange, and Exchange Board member Paul Fearer to share with them best practices from the private sector for using innovation to control costs. The Exchange is a new state-based marketplace for private health insurance that will be the largest single purchaser of healthcare in the state. As the Exchange considers the types of products it will offer, Council Healthcare Committee members Steve McDermott, CEO of Hill Physicians Medical Group, and Paul Markovich, COO of Blue Shield of California, described the success of a partnership they formed with Catholic Healthcare West to control costs and improve quality for the state retirement system and how the Exchange can be structured to enable this valuable innovation.

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LA Times Praises Council for Leadership on Controlling Healthcare Costs

The Bay Area Council’s campaign to control skyrocketing healthcare costs earned an enthusiastic endorsement this week from the Los Angeles Times, which in an editorial on Thursday said that “rather than sitting back and waiting for the federal law to be fully implemented or repealed, the Council urges California employers to use their healthcare dollars to start fixing the system. It’s a message from the Bay Area that should be heeded throughout the state.” Read the full LA Times editorial.

The plaudits came in response to the release this week by the Council and its Economic Institute of a report — Roadmap for a High-Value Health System — outlining a series of concrete strategies for controlling healthcare costs that are harming the state’s global economic competitiveness. Council President Jim Wunderman on Monday was joined by California Health and Human Services Secretary Diana Dooley, U.S. Health and Human Services Regional Director Herb Shultz and Kaiser Permanente Northern California Region President Greg Adams for an early preview of the report that was hosted by Edelman Public Relations and Brown & Toland. To get involved with the Council on controlling healthcare costs, contact Senior Policy Advisor Micah Weinberg at mweinberg@bayareacouncil.org or by calling (916) 949-6240.

Healthmap

Council Unveils Roadmap for Creating a High-Value Healthcare System

The Bay Area Council today released its “Roadmap to a High-Value Health System,” which outlines a series of concrete strategies for leveraging California’s power as an innovator to control rising healthcare costs for business and individuals.  The Roadmap will serve as the foundation for the Council’s ongoing engagement with healthcare reform implementation, value-based healthcare purchasing by Bay Area businesses, and health system transformation.

“Reigning in rapidly rising healthcare costs is critical for maintaining the competitive edge of Bay Area and California businesses in our global economy,” said Jim Wunderman, President and CEO of the Bay Area Council. “We have the intellectual and innovation power to level the playing field on healthcare costs and free businesses to compete more aggressively on the merits of their products and services. That’s how the Bay Area and California are going to maintain that competitive edge and this Roadmap shows us how we can get there.”

Sean Randolph, President of the Bay Area Council Economic Institute, explains that, “Our goal is to produce thorough fact-based analyses that will improve public understanding of issues that are critical to the economy and that will identify strategies to meet key economic goals.  The quality and affordability of health care is an issue that directly impacts business, citizens and governments at every level.”

“The roadmap is aimed at the state’s business leaders who have an essential role in shaping the vision of a high-value health system, mapping it out, and creating systems for measuring progress toward our goals,” said Greg Adams, President, Northern California, Kaiser Foundation Health Plan & Hospitals and chair of the Council’s Healthcare Committee. “This report lays out the specific actions by healthcare providers, insurers, businesses, governments, and individuals that will improve affordability and access to high quality care in California.”

Press release

Full Roadmap report

8.3.11

Learning from California’s Experience to Build Successful Health Insurance Marketplaces

By Micah Weinberg

For the transformation of our healthcare system toward higher quality and lower costs to be successful, we must adopt best practices pioneered in the Bay Area.  From 1993 to 2006, California had a health insurance purchasing pool for small employers much like the “SHOP Exchanges” created as a part of federal healthcare reform.  What did we learn from that experience?

A new report authored by Micah Weinberg from the Bay Area Council and Bill Kramer from the Pacific Business Group on Health concludes that California’s experience is one that should convince those who are developing SHOP Exchanges throughout the country to proceed with caution.  California’s purchasing pool ultimately failed due to “adverse selection” which caused it to have an unhealthier group of enrollees as compared to the broader market.  California’s experience demonstrates, though, that these exchanges can provide real value to a segment of the market and suggests that those setting them up can take actions that will greatly enhance their long-term viability.

The most important lessons from California’s experience are: 1) The key value proposition of SHOP Exchanges is meaningful consumer choice in which the quality of choices is as important as their quantity, 2) Adverse selection will remain a significant concern post-healthcare reform, 3) Policymakers must be vigilant and adaptable in preventing risk selection against SHOP Exchanges, 4) Participation in SHOP Exchanges must be attractive for health insurers, and 5) Successfully marketing SHOP Exchanges means building partnerships with health insurance agents and brokers.

You can access the full paper here.

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Bay Area Council Awarded $120,000 Grant for Healthcare Reform Implementation

We are delighted to announce a partnership with the California Endowment to lead best practices for healthcare reform implementation in California. With a grant of $120,000, the Council will work to ensure that public and private stakeholders and actors work together to design and implement the best possible outcome-focused processes and structures that move us to affordable, high-quality, efficient, and cost-effective health care—care that is sustainable and designed for continuous improvement.

The recent passage of federal health insurance reform legislation, the Affordable Care Act (ACA), is a historic step forward. Still, much remains to be done in order to create a truly effective, efficient, and high-value system that keeps Americans as healthy as possible. And the healthcare system will not change easily given powerful interests deeply invested in the status quo.  This foundational resistance is bolstered by an active campaign of disinformation, attempts to repeal the legislation, and confusion, distrust and resistance among many in the business and policymaker communities.

Additionally, there is no single business perspective on health reform.  Employers hold a variety of positions on the big issues of financing and payment, as well as on such issues as the “public option” and the role of government. However, it is in California’s long-term economic interest that we implement best practices that will result in sustainable business and economic systems of efficient and effective high-quality health practices.

“The critical voice of CEOs is missing and must be accessed and leveraged in support of these best practices, and the public policies and legislation that will authorize and enable needed change,” said Jim Wunderman, President & CEO of the  Council. “It is the voice of CEOs that the Bay Area Council is uniquely positioned to bring to the table and we look forward to the work ahead.”

For additional details, contact Linda Galliher, Vice President of Public Policy, at 415-946-8708 or lgalliher@bayareacouncil.org.

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BAC HOSTS DELEGATIONS TO CHINA ON HEALTHCARE AND CLOUD COMPUTING

Last week, the Bay Area Council, in partnership with BayHelix, hosted a delegation to China with leaders from business and academia, centered around the life sciences and healthcare industries.  Members, including Catholic Healthcare West’s Wade Rose, met with top Chinese business leaders from companies including WuXi AppTec, the largest Contract Research Organization in China, and Eli Lilly, starting an important dialogue on the partnership between Bay Area and Chinese companies around the life sciences and healthcare industries.  Also on the trip, University of San Francisco Professor and creator and host of NPR’s Tech Nation and BioTech Nation radio programs, Moira Gunn, launched a new podcast series entitled BioTech Nation China, featuring interviews with several Chinese industry leaders.

Coming up in June, the Council will also be hosting a delegation to Shanghai and Hangzhou focused on cloud computing, a sector growing exponentially in both China and the U.S.  On the trip, delegates will be able to familiarize themselves with China’s new policies and programs designed to encourage U.S. cloud computing companies to expand and invest in China, find new partners and customers, and get to know the key government leaders for this industry.  For more information on this trip or other upcoming delegations on digital media, brownfields and green technology, contact Kristen Durham, Vice President of Global Initiatives at 415-946-8736 or kdurham@bayareacouncil.org.