Primary-Care Physicians At The Center

 

Medical team healthview

In today's health care system, most of us spend little time with our primary-care physicians. Patients are sent to specialists for problems and chronic conditions, and unfortunately primary-care physicians rarely communicate with these specialists.

New York Times' Jane E. Brody shares that her "81-year-old friend with multiple health problems complained recently that she was seeing an orthopedist, a rheumatologist, an oncologist, an ophthalmologist and an endocrinologist but had no doctor to oversee and coordinate her overall care." Maybe her conditions are being addressed but where is the coordination? More importantly, who is taking care of the patient?

There have been numerous articles over the past week about a new approach to patient care called the medical home or the patient-centered medical home. Don't let the name confuse you – the approach has nothing to do with doctors making house calls. According to Catherine Arnst in Business Week's The Family Doctor: A Remedy for Health Care Costs?, "It's more like doctoring 1950s style, when a Marcus Welby figure handled all the family's medical needs. This time it's juiced up with medical technology."

Body explains the medical home in her article, A Personal, Coordinated Approach to Care,

…it is an approach in which each person has a primary care doctor who heads a team of professionals — perhaps including a physician assistant, a nurse practitioner, a dietitian, a social worker and a pharmacist — to provide round-the-clock access to care.

It is unlike managed care, in which primary doctors act as gatekeepers to specialists and the overriding goal is not managing care but managing costs. In a medical home, the family doctor helps patients get specialty care when they need it and, through electronic records, keeps careful track of treatments and informs specialists of the patients’ progress. The connections between the professionals who work on each case are seamless and convenient. Doctors and patients have easy access to medical information, and patients with chronic ailments are called regularly to reinforce treatment regimens and see how they are doing.

This is a team approach where nurses spend more time on the record keeping work that has generally been done by the doctor. This frees up the doctor's time to spend with patients discussing management of conditions and discussing cases with specialists and other members of the team.

According to Arnst, only 27% of physician practices currently qualify as medical homes, and only 17% of doctors offices have electronic medical record systems.

The medical home concept is a significant change, and one that doesn't currently sync with Medicare and insurers reimbursement policies. According to Arnst,

As sensible as this routine may sound, it goes against the grain of most primary-care practices. Medicare and other insurers pay doctors on a fee-for-service basis that rewards quantity of care over quality. There are no reimbursements for discussing diabetes management with a patient, say, or talking over a case with a specialist. "The main hurdle to getting the medical home accepted more widely is the lack of compensation for cognitive work," says Harvard Business professor Clayton M. Christensen, co-author of The Innovator's Prescription: A Disruptive Solution for Health Care.

The concept has the endorsement of 500 large employers including IBM as well as four medical societies, and most importantly, President Obama has said that any health care bill should "encourage and provide appropriate payment for providers who implement the medical-home model."

Buying Cars, HDTVs Or Investment Products

People do far more research prior to buying a car or a HDTV than they do on an investment company that will be making decisions on their life’s savings. Just where is the logic?

I have been in the investment business for quite a while and I’m continually surprised at how little knowledge people have about investing or the firms that are managing their assets.

The subject may seem both complex and boring to many people. It seems that the choices we have to educate ourselves on investing include conducting research on the internet, buying books/financial publications or taking a course at a local college or continuing education program. As a baby boomer over 55 years old, I do not find any of these options appealing.

A couple of months ago, I saw Jim Cramer interviewed by Jon Stewart on The Daily Show. At that point in time, I had never seen Cramer’s show Mad Money. So I decided to watch an episode of Mad Money, and quite frankly I am hooked. As one of the founders of a firm that managed over $12 billion dollars in assets, I must admit that I was impressed with Cramer! And by the way, I have never met Jim Cramer.

Jim cramer

Without a doubt, he is incredibly knowledgeable but unlike practically every other financial show I’ve seen, he effectively educates and guides viewers in an entertaining style. He continues to stress what I consider to be an extremely important point.

The investment process is something each and every one of us can and should handle on our own if we choose. And for those of who prefer to utilize advisory services, being knowledgeable on the topic can make a significant difference in overall performance.

If you are over 50 years old like me, you cannot afford to have your savings poorly managed. Believe it or not, most advisors prefer to work with clients who participate in the decision making process. Trust me, if we can get up to speed on the latest bells and whistles related to the newest electronic gadget on the market, we can certainly play an important role in managing our assets. And if you do use an advisor, I assure you he or she will appreciate your participation.

You can learn more about investing by watching Mad Money, reading publications like SmartMoney and spending time reviewing your portfolio with your advisor (if you work with a financial advisor).

Increasing Medical Costs And Employer Strategies For 2010

PWC_Medical cost trends for 2010

According to the PriceWaterhouseCoopers Health Research Institute's Behind the numbers Medical cost trends for 2010, health spending continues to grow and medical costs are expected to increase in 2010. This information presents challenges for Americans and employers. Employers are planning strategies for next year, including growing wellness and disease management programs, changing employee contributions, and increasing cost sharing.

The report focuses on many of the issues facing employers, and provides information on strategies to cope with the challenges of another increase in health care costs in 2010. Behind the numbers Medical cost trends for 2010 includes the following data:

• Growth in medical costs for 2010 is expected to be 9 percent, slightly lower than in previous years; however, it will still outpace inflation and increases in worker earnings.

• As the recession pounded corporate profits in early 2009, employers surveyed said they were ready to push more of the costs of health insurance to their workers in 2010 while expecting more responsibility from workers for managing their personal health. Regarding which strategies employers were planning to implement over the next two years, improving wellness and increasing cost sharing led all responses.
More than two-thirds of employers are expecting to expand wellness and disease
management programs.
–– Forty-two percent of employers surveyed said they would increase employee contributions, up from 38 percent in 2008.
–– In addition, 41 percent said they expect to increase medical cost sharing through plan
design changes.

• Increased cost sharing could squeeze workers, many of whom took wage cuts in 2009 because of the recession. In the last five years, health insurance premiums have increased four times faster than wages, a trend that is expected to continue in 2009 and 2010. If employers follow through on plans for increased cost sharing, the affordability gap could grow even larger.

• The economy is creating both positive and negative pressures on medical costs.
–– An unprecedented number of workers are in high-deductible health plans (HDHPs), which are expected to see lower utilization among cash-strapped workers who lack the resources to pay for medical procedures. This trend is expected to slow the rate of medical cost increases.
–– The workers who have retained their jobs, but are fearful of losing them, may be using more services while they still have health insurance.

You can download the report on the PriceWaterhouseCooper's web site by clicking here.

Health Care Costs In Retirement 101

I have written about out-of-pocket medical expenses many times on The HealthView Blog. This post explains in detail that health care costs are a significant expense even when a person has insurance.

This point is proven in The American Journal of Medicine’s recently published clinical research study shows that more than 62.1% of personal bankruptcies in 2007 were due to debt associated with health care costs. Most of the people who filed for bankruptcy are middle-class and college-educated homeowners. And 75% of them had health insurance.

The American Journal of Medicine study titled, Medical Bankruptcy in the United States, 2007: Results of a National Study reveals the following key findings:

Using identical definitions in 2001 and 2007, the share of bankruptcies attributable to medical problems rose by 49.6%

When asked about problems that contributed very much or somewhat to their bankruptcy,
41.8% bankruptcies were due to a health problem
54.9% cited medical or drug costs
37.8% blamed income loss due to illness

Among common diagnoses, nonstroke neurologic illnesses such as multiple sclerosis were associated with the highest out-of-pocket expenditures, followed by diabetes, injuries, stroke, mental illnesses, and heart disease.

Hospital bills were the largest single out-of-pocket expense for 48.0% of patients, prescription drugs for 18.6%, doctors’ bills for 15.1%, and premiums for 4.1%. The remainder cited expenses such as medical equipment and nursing homes. While hospital costs loomed largest for all diagnostic groups, for about one third of patients with pulmonary, cardiac, or psychiatric illnesses, prescription drugs were the largest expense.

Chronic illnesses obviously take a serious toll on individuals, their families, and their finances as health care costs can be staggering. I encourage you to discuss your health risks with your doctors, and learn as much about health care expenses today and in the future so that you will be better prepared.

Considering The High Deductible Health Plan (HDHP)

If an employee has a history of good health and the employer offers a high deductible health insurance plan (HDHP), it may make good sense for that employee to strongly consider the HDHP.

Here is why:
The benefits of a HDHP are lower premiums, access to a tax-free Health Savings Account (HSA) that may also include employer contributions, and an annual tax benefit, which in total may outweigh the exposure of the higher deductible.

The overall national adoption rate of HDHP policies has been rather low mainly because insurance carriers and employers have not effectively communicated the benefits of HDHPs even though they could clearly benefit many policy holders as well as employers.

Here is a simple example:
Let’s first assume that all of an employee’s premium savings will be spent on medical expenses. Now, let’s examine the potential benefits of a HSA account. If the policy holder invests $1,500 per year in a HSA of which $500 is spent on health care annually, and the employer contributes $1,000 to the HSA account, the policy holder will have $54,138 in 15 years assuming 6% growth rate. The $1,000 tax free employer match alone will grow to $27,069 for the same period.

Keep in mind that policy holders are eligible to contribute up to $3,000 for an individual and $5,950 for a family in a HSA and they receive “above the line” annual tax savings that can be exploited even if the policy holder does not itemize.

Exposure in HDHP policies being offered by employers is limited to the higher deductible. Therefore, employees need to assess the benefits of lower premiums, tax-free investing, and employer contributions in relation to the potential maximum exposure of the higher deductible.

Many employees will discover that the long-term benefit of adopting a HDHP policy outweighs traditional HMO’s and PPO’s. So, do not ignore the availability of high deductible policies. Check them out, you may be pleasantly surprised.

Importance of Sleep

According to the US Centers for Disease Control and Prevention, adults generally need seven to nine hours of sleep each night. Many adults do not get this much sleep, and in addition to feeling drowsy there are health consequences.

Today's Boston Globe's Too little sleep may raise risk of hypertension article shares information about a sleep study's results that middle-aged adults who don't enough enough sleep are more likely to develop high blood pressure. According to the article,

"The team studied 578 adults with an average age of 40. They took blood pressure readings and measured how long each person slept. Only 1 percent slept eight hours or more.

The volunteers slept six hours on average. Those who slept less were far more likely to develop high blood pressure over five years. And each hour of lost sleep raised the risk."

There are numerous benefits of getting enough sleep, including keeping your heart healthy. According to Mark Stibich, P.h.D., 

"Sleep is important for concentration, memory formation and the repair of damage to your body’s cells during the day. Chronic lack of sleep increases the risk for developing obesity, diabetes, cardiovascular disease and infections."

 

The Social Security Strain

I wrote a post last week about the Social Security component of a retiree’s retirement income. I neglected to share some key information about the Social Security system and how it has been seriously impacted by the recession.

David John, a retirement security analyst, is quoted in Setting Social Security Straight Gains Urgency by Bob Moos in Saturday’ Dallas Morning News, “The recession squeezes the system at both ends…Workers who have been laid off are no longer paying Social Security taxes, while older workers who have lost their jobs are filing for benefits earlier than planned.”

According to The Washington Post staff writer, Amy Goldstein, in Alarm Sounded on Social Security, the government forecast report issued earlier this month predicts the following:

  • The trust fund from which Social Security payments are made will not be able to pay full benefits to retirees by the year 2037. This is four years earlier that the forecast as of last year.
  • The Social Security trust fund will begin to spend more than it takes in through tax revenue in 2016.  This is one year earlier that the forecast as of last year.

In addition to the economy, the Social Security system is strained due to the number of baby boomers that are reaching retirement age as well as the fact that people are living longer. In our uncertain financial environment it is more important than ever to meet with a financial advisor to develop a plan and save for your future and your retirement.