"Crop insurance reform" turned out to be doing away with a public option, subsidizing insurance companies and handing farmers high costs and high deductibles. Is health insurance reform headed this way?
The Obama administration is making a health care reform pitch to rural America today. It comes in the form of a report issued by Health and Human Services Secretary Kathleen Sebelius, the former governor of Kansas. The report tells us that one in five Americans who are uninsured live in rural communities — which is to be expected, since one out of five Americans live in rural communities.
Sebelius said in a conference call today that the "system we have really isn’t working for the 50 million” Americans who live in rural areas, she said, according to the Grand Forks Herald. “A lot of them are self-employed or work for family businesses, including family farms,” Sebelius said, and are disadvantaged by “not many choices and extremely high prices and rules that don’t protect consumers.”
The Grand Forks paper wrote that the new report states that “millions of rural Americans have limited access to a primary health care provider,” and “with the recent economic downturn, there is potential for an increase in many of these health and access disparities that are already a problem in rural communities....There were only 55 primary care physicians per 100,000 residents in rural areas in 2005, compared with 72 per 100,000 in urban areas. The rate decreases to 36 per 100,000 in isolated, small rural areas. There are nursing shortages as well, with less than half as many nurses per capita in isolated rural sareas than in urban areas.”
The nation is spending vastly more on health care in some rural areas than in
others without any indication that the increased spending results in
better health.
Kaiser Health News reporters tell us that U.S. Senators continue to push for higher Medicare payments to rural hospitals in their states even as they decry budget deficits and an expensive health care reform bill. Eric Pianin and Mary Agnes Cary write that several senators want to help local hospitals become declared "critical access" facilities, a designation that allows these hospitals to collect higher payments from Medicare. Meanwhile, KHN reports, the "same senators are among those pushing hardest to hold the line on the cost of health care reform."
Senators Wyden (Oregon), Brownback (Kansas), Pryor (Arkansas) and Conrad (North Dakota) are among those seeking special designation of rural hospitals as "critical access" facilities. Congress created this designation in 1997 to help ensure care in isolated parts of the country. The original law said hospitals farther than 35 miles from other health facilities could be declared "critical access" and then collect 101% of their costs from Medicare rather than the usual 95% of allowable costs. The 35 mile limit was routinely waived, however, and the number of "critical access" hospitals grew to over 1,200 when Congress eliminated all waivers to the 35-mile rule in 2006.
"Now lawmakers from rural states want to ease the rules, partly by making it easier for hospitals to qualify for "critical access" status even if they are less than 35 miles from another facility," the reporters write. "Supporters note that the hospitals, besides providing emergency and limited inpatient treatment, are often the mainstays of small-town economies."
Lynda Waddington at the Iowa Independent reminds us that in much of rural America it's not insurance that's the problem, but access to doctors, nurses, pharmacies, home health care and mental health treatment. We can pay for health care just as well as people in the cities. There's just less to buy.
“We have some serious challenges in Iowa as it relates to the number of providers that we have,” Tom Newton, executive director of the Iowa Department of Public Health, tells Waddington. “We do have a high percentage of our population in Iowa that is insured at this time, and I would tell you that even some of them struggle right now to get access to health care. You can’t just assume that by providing people with a source of payment that you’ve provided them with access to health care.” In Iowa, as in many rural states, the number of health care professionals is "plummeting," Waddington writes. One of the problems is a rapidly aging health care workforce.
"The alarming demographics and shrinking number of health care workers in rural areas are not just limited to primary care doctors," Waddington writes. “We aren’t just talking about those people that are traditionally thought of as health care providers – it’s dentists, it’s mental health and it’s even pharmacy,” said Cheryll Jones, a southeastern Iowa pediatric nurse practitioner who serves on the board of the Iowa Rural Health Association. “There aren’t necessarily huge numbers of pharmacies in rural areas. So, even if you have a provider, you may have to travel a fair distance to get your prescription filled."
We see this over and again: An assertion that people in rural America have less insurance than those living in the cities. This statement of "fact" appears in reports and in speeches. Most recently, U.S. Secretary of Agriculture Tom Vilsack said that "there are significantly higher number of uninsured people as a percentage of population in rural communities."
Is Vilsack right? Well, no, he isn't. The Yonder analyzed the most recent Census figures and found that the percentage of people under the age of 65 without health insurance is HIGHER in URBAN America than it is in rural. For some reason the exact opposite is reported time and again. Most recently, the Center for Community Change issued a report finding (according to a summary) that "rural areas have the highest proportion of both uninsured and under-insured." Folks that just ain't so — at least the latest official data comes to the exact OPPOSITE conclusion. Surely too many people are without a way to pay for health care, but it's not a problem that's any worse in rural America than it is in the cities.
Why would Secretary Vilsack be so far off base? All he has to do is go down the hall to his Economic Research Service which released a report on rural health care in the last month. The ERS found that rural people have health problems — higher rates of mortality, disability and chronic disease than in the cities. But the ERS also found, like the Yonder, that metro and non metro rates of health insurance coverage are the same.
The Senate Finance Committee passed its version of health care reform Tuesday afternoon, but Kaiser Health News reminds us that neither this bill nor any of the others sloshing about Congress will do much about the nation's doctor shortage. Phil Galewitz reports: "Even as Congress moves to expand health insurance coverage to millions of Americans, it's doing little to ensure there will be enough primary care doctors to meet the expected surge in demand for treatment, experts say."
Primary doctors are key to rural health and there aren't enough of them. The American Academy of Family Physicians predicts a shortage of 40,000 primary care docs in the next ten years. (In the chart above, demand is represented by the blue line; supply of primary care doctors is in red.) “I don't see anything in the legislation that will greatly increase the primary care pipeline," said Dr. Russell Robertson, chairman of the Council on Graduate Medical Education. Galewitz said there's general agreement on how to increase the number of primary care doctors: open more residency positions and increase how much primary care doctors are paid. But nobody wants to add these costs into a health reform bill that has a price tag already too large for many to swallow. To add 15,000 Medicare-funded medical residency positions would cost about a billion dollars a year.
Nor has there been much luck adding to the pay of primary care doctors, since the money would have to be wrenched from specialists. But primary care physicians are key to holding down overall health care costs. They make, on average, less than half of the average for specialists.