Moments after the Obama-Biden Transition team announced former Sen. Tom Daschle (D-S.D.) would head a health care policy working group in the new administration, MSNBC reports that Daschle will serve as the next secretary of health and human services.
The appointment, if confirmed, suggests Obama is serious about making health care reform a top priority. Daschle, now a professor at Georgetown University and distinguished fellow at the Center for American Policy, has long been an advocate for comprehensively overhauling the nation’s existing private health care system. Daschle published a book on the topic recently. In a piece for The Huffington Post earlier this year, Daschle outlined his proposal to create a Federal Health Board, modeled after the Federal Reserve Board.
Just as the Federal Reserve ensures certain standards, transparency and performance for our banking industry, the Fed Health would ensure harmonization across public programs of health-care protocols, benefits, and transparency. Ultimately, the Fed Health would offer a public framework within which a private health-care system could operate more effectively and efficiently.
The Fed Health could help reduce administrative costs. Roughly 30 cents of every dollar in health care is spent on administration rather than health benefits. Our administrative costs, on a per capita basis, are seven times higher than that of our peer nations. Each state has their own system for Medicaid and insurance regulation. We have different health-care systems for active duty military members versus veterans. And private insurers spend billions trying to enroll the healthy and avoid the sick. A Federal Health Board that sets evidence-based standards for benefits and quality for federal programs and insurance will lower this complexity and thus costs.
The Fed Health could also promote quality and save money by making the health-care system more transparent. Today, the lack of transparency in the system makes it virtually impossible for people to grasp what they are paying for and who provides them with the best care. This shroud of secrecy allows for wildly different prices for similar quality care. For example, a Pennsylvania report on heart surgery found hospitals with similar outcomes charge from $20,000 to $100,000. The Board, by ensuring transparency, would increase competition based on price and quality rather than cream skimming and cost sharing.
Additionally, the Fed Health could set standards for quality and coverage, promoting best practices and identifying the trade-offs on services. It would use information on the comparative clinical and cost effectiveness of different treatment options to set standards for Federal programs. The Congressional Budget Office recently credited this idea with the potential to produce substantial system-wide savings.
Whether Obama intends to integrate Daschle’s Federal Health Board into his existing plan to reduce health care costs remains to be seen. But the pick should allay the fears of conservatives that Obama intends to replace the existing infrastructure with a “socialized,” government-funded and run health care system.
MA-Sen: 150 Conservative Bloggers Fan Out, Looking for Scandals
BOSTON -- The mysterious Election Journal blog, which first released the infamous 2008 video of two bumbling New Black Panther Party members waving nightsticks
MA-Sen: 66 to 19
BOSTON -- That, via Alex Isenstadt and Josh Kraushaar, is the number that defined the Massachusetts Senate race more than anything else. From the primary
MA-Sen: A Text Message From Scott Brown
BOSTON -- Having signed up for Scott Brown’s text message service for election day, I just got this text: Are you about to have lunch? It’s a great time to
MA-Sen: Loyal Democrats Grouse About Coakley
BOSTON -- A little while after noon, a steady crowd of Democratic voters streamed into the Cathedral High School Gymnasium to cast votes for their party’s
MA-Sen Photos: ‘Paint the Town Red! Croakley’s Dead!’
Below are some photos of yesterday’s People’s Rally in Worcester, the rally that Brown held to counter-program the Obama rally in Boston. The crush of
MA-Sen: Brown Wins
BOSTON -- At 9:20, the first rumors of Scott Brown’s victory in the Massachusetts Senate race started to work around the room. A moment later, Doug Flutie
MA-Sen: Out-of-Staters for Brown
BOSTON -- A surprising discovery at yesterday’s People’s Rally in Worcester was just how many people had traveled into the state to assist, in whatever way,
MA-Sen: Republicans Celebrate Coakley’s Gaffes in Worcester
WORCESTER, Mass. - By the way, said Curt Schilling. One more thing. I am not a Yankees fan. The overflowing crowd at Worcester’s Mechanics Hall on
Net Investors Bullish on Palin’s Prospects for Staying on Ticket
Just for fun, the Internet prediction Website Intrade has opened a contract on whether Alaska Gov. Sarah Palin will be withdrawn as McCain’s running mate.