KC Health Care Reform

Part II of V: A Perspective from Greater Kansas City’s Largest Insurer

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At Blue Cross and Blue Shield of Kansas City, we’re listening intently to your thoughts and concerns about health care and the proposed reforms now before Congress. In this second in a continuing series, we’d like to take the opportunity to address some of the key issues surrounding this complex and rapidly evolving issue.

Blue Cross and Blue Shield of Kansas City’s Prescription for Health Reform

We have a long-standing commitment to support bipartisan health care reform — this year! At both the local and national levels of the Blue Cross and Blue Shield System, we have proposed extensive solutions, including:

• Dramatic changes to our own industry;
• Changes that will ensure everyone has coverage;
• Changes that will control costs and improve quality; and
• Changes that will build on the private health care system.

Support for Health Insurance Reforms

We support most reforms being considered by Congress, including:

• Coverage for all Americans;
• Reforms for the health insurance industry;
• A requirement that individuals have health insurance; and
• Subsidies for those with lower income.

We oppose the Public Option as unnecessary.

Individual Responsibility

We must become more responsible for our own health.

• Nearly 40% of our annual claims payments of $2 billion goes for the treatment of illness and injury which we bring upon ourselves.
• We must do a better job with diet, exercise, not abusing drugs and alcohol, following physician orders, and buckling up.

Cost Reductions Through Comparative
Effectiveness / Clinical Pathways

• We see great promise in a concept called “Comparative Effectiveness,” wherein physicians and hospitals agree upon “clinical pathways” for treating common medical issues.
• If physicians are given autonomy and control over creating and maintaining these pathways, there is great potential for Medicare and private insurance payment systems to be changed in a way that rewards both physicians and hospitals for improvements in quality and cost-effectiveness.

Malpractice Immunity, Physician Tax Deductions for
Providing Free Care

• We believe there is significant potential for savings in reforming our nation’s malpractice procedures. We should seek better balance of the patient’s right to recovery in case of injury and the need for physicians and hospitals to practice medicine in a cost-effective manner.
• One possibility might be to provide litigation immunity for physicians and hospitals who follow physician-certified clinical pathways. We are pleased President Obama has agreed to examine these possible savings.
• Another incentive to attract new physicians and keep those we now have in practice would be to recognize their critical role in providing uncompensated
  care to many segments of our society.
• We encourage federal and state governments to help improve physician reimbursement by providing federal and state tax deductibility for the free care they provide.

Greater Efficiency in the Health Insurance Industry

The health insurance industry, too, needs to change by becoming more efficient.

• Collaboration with the government on electronic medical records;
• Expanding our nation’s primary-care physician capacity; and
• Improving quality can produce positive results, in time.

We are on the brink of a uniquely American solution to health care financing problems facing all industrialized nations. In charting this new path, we must be respectful of the important role everyone has and be willing to listen to different points of view on how change can be achieved.

Yours truly,

Tom Bowser
President and Chief Executive Officer
Blue Cross and Blue Shield of Kansas City