9:17 PM Eastern - Monday, June 15, 2009

President Obama addresses the AMA; Doctors say public health insurance option must be part of health care reform solution

In his 50 minute address to the American Medical Association today at the group's annual convention in Chicago, President Obama reiterated his strong support for a truly national public health insurance plan, calling the current state of the nation's health care system a "ticking time bomb." Obama declared health care reform an urgent priority, saying "If we fail to act, premiums will climb higher, benefits will erode further, and the rolls of uninsured will swell to include millions more Americans."

As President Obama made his case for a health care system overhaul, he touched on several ways to cut costs we had yet to hear him address within a single public speech: he promoted preventative care instead of disease management and advocated for health IT (specifically, switching from paper to electronic health records). He urged examining inefficiencies in the Medicare program and introducing competitive bidding into the Medicare Advantage program, as well as exchanging doctors' current fee-for-service based pay system for a more outcomes-based system.

Prior to President Obama's AMA address today, doctors and physicians-in-training put out a statement in support of the creation of a public health insurance option signed by eight organizations: CIR/SEIU Healthcare, the Doctors Council, AAFP, AMSA, Doctors for America, NPA and SNMA. The groups--whose members combined represent 215,000 physicians and physicians-in-training--also hosted a conference call with key reporters to express their support for President Obama's goals for healthcare reform. "We believe we need a truly robust, quality public health insurance option," said Dr. L. Toni Lewis, President of CIR/SEIU Healthcare (CIR). "Quality is something I really want to stress here, meaning: our patients would have a public option that provides them with the care they need."

"The thousands of devastating stories of Americans unable to get care can make it feel impossible to practice medicine some days," says NPA President Dr. Valerie Arkoosh. "But these stories also serve to remind us every day of our ethical duties to put our patients' care ahead of insurance companies. Competition provides us with choice and makes our market better--and a strong, national health insurance option would do the same."

"I need your help, doctors"
President Obama told attendees of the AMA conference today that no reform effort could be successful without the buy-in of the nation's doctors, declaring at one point, "The public option is not your enemy, it is your friend." The President also labeled those who call his plan "socialized medicine" naysayers and fear mongers, reassuring his audience that those who claim he is trying to bring about government-run health care are "not telling the truth."

Dr. Nikhil Wagle, cofounder of Doctors of America, says the number one priority for doctors in fixing our broken healthcare system is doing what's best for patients--and this includes the choice to keep the insurance they have or sign up for a robust, public healthcare option. "As doctors, we see the effect of our broken healthcare system and what happens when our patients are denied the care they need," said Dr. Wagle. "It's the real experience with doctors and patients that must be what guides us in this effort towards healthcare reform."

"To say it as plainly as I can, health care reform is the single most important thing we can do for America's long-term fiscal health. That is a fact," said President Obama. Read the transcript of his entire speech here.

Other notable parts of Obama's June 15 speech to the AMA after the break.

Choice:

No matter how we reform health care, we will keep this promise: If you like your doctor, you will be able to keep your doctor. Period. If you like your health care plan, you will be able to keep your health care plan. Period. No one will take it away. No matter what. My view is that health care reform should be guided by a simple principle: fix what's broken and build on what works.

Preexisting conditions:

Insurance companies have expressed support for the idea of covering the uninsured - and I welcome their willingness to engage constructively in the reform debate. But what I refuse to do is simply create a system where insurance companies have more customers on Uncle Sam's dime, but still fail to meet their responsibilities. That is why we need to end the practice of denying coverage on the basis of preexisting conditions. The days of cherry-picking who to cover and who to deny - those days are over.

[...] Changing the current approach to preexisting conditions is the least we can do - for my mother and every other mother, father, son, and daughter, who has suffered under this practice. And it will put health care within reach for millions of Americans.

Medicare rates:

We also have to make spending cuts in part by examining inefficiencies in the Medicare program. There will be a robust debate about where these cuts should be made, and I welcome that debate. But here's where I think these cuts should be made. First, we should end overpayments to Medicare Advantage. Today, we are paying Medicare Advantage plans much more than we pay for traditional Medicare services. That's a good deal for insurance companies, but not the American people. That's why we need to introduce competitive bidding into the Medicare Advantage program, a program under which private insurance companies offer Medicare coverage. That will save $177 billion over the next decade.

Second, we need to use Medicare reimbursements to reduce preventable hospital readmissions. Right now, almost 20 percent of Medicare patients discharged from hospitals are readmitted within a month, often because they are not getting the comprehensive care they need. This puts people at risk and drives up costs. By changing how Medicare reimburses hospitals, we can discourage them from acting in a way that boosts profits, but drives up costs for everyone else. That will save us $25 billion over the next decade.

Everyone Must Share Responsibility for Universal Coverage:

[...] I am open to a system where every American bears responsibility for owning health insurance, so long as we provide a hardship waiver for those who still can't afford it. The same is true for employers. While I believe every business has a responsibility to provide health insurance for its workers, small businesses that cannot afford it should receive an exemption. And small business workers and their families will be able to seek coverage in the Exchange if their employer is not able to provide it.

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