DIANNE FEINSTEIN: Health Care System Needs Resuscitation
With the state's health care system "on the verge of collapse," Sen. Dianne Feinstein (D) argues that fixing the problem "is a call to action that neither Congress nor the state government can ignore." In a San Francisco Chronicle column, Feinstein outlines several reason for the precarious state of the health care system, including:
- The number of uninsured residents in the state. Currently seven million Californians -- 24% of the population -- lack health insurance;
- The closure of many hospitals, nursing homes, home health departments, emergency rooms and physicians groups. Since 1996, 39 hospitals have shut their doors;
- The state's low per-beneficiary spending on Medi-Cal. Currently the state ranks 48th nationwide on Medicaid beneficiary spending;
- The large percentage of Californians who are enrolled in managed care. Eighty-eight percent of Californians are insured through an HMO, compared to 28% nationwide;
- The failure of some of the state's physicians groups. Since 1996, more than 300 groups have gone bankrupt or closed.
Feinstein argues that the Balanced Budget Act of 1997 is partly to blame. Although the law helped to eliminate the federal deficit, Feinstein contends that "it has left our health care system in the lurch because of far-greater-than-anticipated cuts in Medicare payments to providers." As a result of the cuts, Feinstein contends that "health care providers are struggling and beneficiary access to care is threatened." However, Feinstein asserts that the booming economy has provided "Congress an opportunity to revisit the reductions made by the BBA and take action to strengthen ... the Medicare and Medicaid programs." Noting that doctors are leaving the state because of low Medi-Cal reimbursement rates, Feinstein argues that to retain physicians, Gov. Gray Davis (D) and the Legislature need to use the budget surplus to boost reimbursement by 25% over the next two years. Congress also must play a role, Feinstein asserts, urging lawmakers to approve legislation that would expand Healthy Families programs to cover eligible parents and restore cuts in Medicare for hospital inpatient services and home health services. Failure to restore the cuts to Medicare and Medicaid will result in "an even more serious health care crisis" in the state, Feinstein argues. If restoring Medicare and Medicaid cuts are not given the highest priority, Feinstein concludes that "the health of people throughout California and the nation will be placed in serious jeopardy" (7/27).
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