The Massachusetts health care revolution: a local start for universal access.
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The strength of President Bill Clinton's health reform proposal lies in its commitment to universal, portable health insurance. To enhance the political appeal of his plan, however, the president has forged a compromise between two divergent ethical precepts: (1) that health care is a social good to be made available to all Americans, on equal terms, at a financial burden roughly proportional to a household's income; and (2) that health care is a private good to be financed by households with premiums that may impose a much heavier financial burden on the poor than on the wealthy, even after public subsidies for the poor. The price of that compromise is enormous complexity, which is probably unavoidable in these United States.
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Driven by fiscal pressures in the 1990s, Canada's provincial Medicare systems cut inpatient care, expanded community services, and consolidated hospitals under regional authorities in nine of ten provinces. Public confidence has been badly shaken by the transition. No province has successfully integrated services across the continuum of care. Home care and prescription drug coverage vary from province to province. Efforts to reform physician payment have stalled, and capacity to measure and manage the quality of care is generally underdeveloped. Thus, for the next few years, policymakers must stabilize the acute care sector, while cautiously pursuing an agenda of piece-meal reforms.
This paper reports 1999 survey results on the population age sixty-five and older in five nations--Australia, Canada, New Zealand, the United Kingdom, and the United States. The majority of respondents were generally satisfied with the quality, affordability, and availability of health services in their nations. In many measures of access to and cost of care, the United States looks much like the other nations surveyed. However, as the elderly view their health systems, the direction they have taken in recent years with respect to caring for the elderly, and the future affordability of care in old age, U.S. respondents tended to be more pessimistic than were those in other nations.
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Despite a flourishing economy and recent growth in employment-based health coverage, forty-three million Americans remain uninsured. Extending coverage to the uninsured is not an intractable public policy problem but could be addressed if the various health care stakeholders could only find common ground. We argue that to win broad-based support from across the ideological and political spectra, a meaningful proposal should achieve a balance between public- and private-sector approaches, focus attention on those who are most in need of assistance (low-income workers), and build on systems that work today. With the aim of pulling together a political coalition, we present a proposal specific enough to attract support but whose details will arise later, in the context of the legislative process.
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The sharp decline and equally sharp recovery in public health care spending in the 1990s in Canada set the stage for a broad consideration of reform options but also established hurdles to be overcome in taking action. By moving health care to the center of the federal-provincial agenda, reconfiguring the internal politics of medical and hospital groups, and heightening a public sense of the need for improvement, the legacy of the 1990s prepared the ground for reforms that would "modernize" the Canadian model. But it also yielded a degree of federal-provincial rancor and provider demands for "catch-up," which complicated the process of achieving major change.
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The Massachusetts health reform law has attracted national attention for its bold vision and its unique combination of tested and innovative policy approaches. Despite the law's promise, implementation challenges lie ahead, including building and sustaining public and legislative support for the law; ensuring care for those who are left out; and containing health care costs. The provisions that are most certain of success should provide coverage to 70 percent of the state's 530,000 uninsured residents. The state's ultimate success in reaching its goal of near-universal coverage will depend on how well the state can respond and adjust as implementation proceeds.
Hospital-physician relationships in the United States have deteriorated markedly in the past few years. An asymmetry of obligations to caring for the uninsured and inappropriate financial incentives have worsened the conflict between hospitals and physicians in many markets. Sadly, the resources and political bandwidth consumed by managing this conflict have been diverted from the fundamental challenge of providing universal health coverage--the root cause of much of this conflict.