Taking Stock of Three Major Health Reform Laws on Their Birthdays

Taking Stock of Three Major Health Reform Laws on Their Birthdays

Last year's federal health overhaul, the Massachusetts health reform law and the groundbreaking EMTALA all marked significant anniversaries in recent weeks. "Road to Reform" looks back on how the laws affected the nation's health policy -- and each other.

We need to reform the health reform law. It’s a notion invoked by critics of last year’s health care overhaul — who have called for minor changes to outright repeal — and even President Obama.

But the concept is less a marker of politicians’ flexibility, and more accepted legislative wisdom. Reforms almost always build on previous reforms, especially when it comes to health law. After all, one generation’s dream realized is the next generation’s fiscal reality.

We’ve already seen this week how Congress’ latest continuing resolution changes aspects of the Patient Protection and Affordable Care Act. Both parties’ fiscal year 2012 budget proposals have opened up another conversation about revamping Medicare and Medicaid.

Of course, some health reforms merely tweak around the edges. But three laws — the 1986 Emergency Medical Treatment and Active Labor Act, the 2006 Massachusetts’ health expansion and last year’s health overhaul — bear closer examination this week. Why? Namely, each was a bold, substantive reform that laid the groundwork for the next one. Meanwhile, each is a celebrating a major anniversary — and there’s no better time to reflect than a milestone birthday.

Twenty-Five Years Ago: EMTALA Obligates Care for Poor

Signed into law on April 7, 1986 — as a four-page provision in the larger Consolidated Omnibus Budget Reconciliation Act — EMTALA not only shifted health policy, but transformed how the nation treated its poorest residents.

Essentially, the rule obligates hospitals to stabilize emergency patients regardless of ability to pay and is intended to curb “patient dumping,” where providers transfer patients because of financial, not medical reasons.

In a sweeping piece for Hospitals & Health Networks, Emily Friedman notes that EMTALA was largely driven by “horror stories” about low-income patients who suffered or died as a result of patient dumping. Congress also feared that new pressures on hospitals to contain costs under the 1983 Prospective Payment System would force them to skimp on care to the poor; a third factor was the waning authority of the 1946 Hill-Burton Act, which had required many hospitals to treat low-income uninsured patients.

Friedman also argues that EMTALA was the “law that changed everything.” Emergency care today, and health care more broadly, has been shaped by health providers’ legal responsibility to the sickest patients.

Yet EMTALA was the original “unfunded mandate,” Friedman notes. The law led into concerns that health providers were losing too much by treating patients who couldn’t pay — and helped prompt states to explore their own solutions.

Five Years Ago: Massachusetts Shows Comprehensive Reforms Are Possible

For example, when Massachusetts Gov. Mitt Romney (R) signed  An Act Providing Access to Affordable, Quality, Accountable Health Care on April 12, 2006, the Bay State became the nation’s first to pass a mandatory health insurance law. Under the rule, uninsured state residents were required to purchase health insurance through the private market or face penalties on their state income tax forms. Massachusetts also expanded access to coverage through its new Commonwealth Health Insurance Connector Authority and subsidies for low-income residents.

Today, Massachusetts boasts an enviably low uninsured rate, and 84% of surveyed residents say they are satisfied with the state’s health coverage law. But the reform has yet to rein in the state’s soaring health costs, as health insurance is as expensive in Massachusetts as nearly any state in the nation. Significant access issues persist, too: 31% of residents have had a health care provider reject their insurance plan and 23% were turned away by a doctor who had no capacity.

Earlier this year, Democratic Gov. Deval Patrick announced his own reform to the reforms — dubbed “health reform 2.0” by some — including provisions to encourage accountable care organizations, scrutinize health insurance rates and revamp medical malpractice rules.

We’ll surely hear more about Massachusetts’ 2006 plan and its ongoing struggles as Romney runs for higher office and even his GOP rivals attack the law. But politics aside, the law significantly altered the health policy landscape. Massachusetts’ reforms drew widespread attention from politicians in other states, who said they were “inspired by [its] bipartisan nature,” the Wall Street Journal reported. Numerous observers explored whether the model could be exported to California.

More consequential, the law refocused national efforts for major health reform that largely evaporated with President Clinton’s failed 1994 plan.

Last Year: PPACA Adapts Many Massachusetts Reforms on National Level

As covered extensively, the Massachusetts plan informed last year’s legislation, with the overhaul eventually including a similar mandate, health insurance exchange model and subsidies for low-income patients.

That close relationship means that states are looking to the Massachusetts model for insight into implementing PPACA. For example, Jon Kingsdale — independent consultant and former executive director of Massachusetts’ Health Connector — last year spoke with California Healthline on how the Golden State can prepare for the launch of its own health insurance exchange.

The shadow of EMTALA also hangs over PPACA. By mandating near-universal health coverage, last year’s overhaul further advanced the argument that all U.S. residents should have access to health care, regardless of ability to pay. Meanwhile, hospital associations ultimately lobbied for the overhaul — despite likely pressure on their business model — in hopes of curbing the mounting bad debt from treating low-income patients.

Deep Relationship Between Health Laws

Arguably, each health law was made possible only because of the major reforms that preceded it. (In EMTALA’s case, lawmakers were operating within the constraints of the original Medicare and Hill-Burton laws.) And each reframed the so-called “Overton Window,” or the idea of what was possible in public policy circles.

Yet some have argued that the previous law made the next one moot — that because EMTALA exists to provide “universal coverage,” there was no real need for Massachusetts to expand insurance, according to former CBO director Douglas Holtz-Eakin. Romney has stressed that Massachusetts’ reforms shouldn’t have been mandated nationally, but are a model for state-by-state innovation; if elected president, he’d immediately issue an executive order that exempts every governor from implementing PPACA.

Others have warned that each law foreshadowed troubling, unintended consequences of subsequent legislation. Some critics of Democrats’ health reforms point to Massachusetts’ spiraling health costs, strained capacity and political battles over insurance hikes as a troubling canary in the coal mine for PPACA.

What is clear is that as laws mature from fresh reform to accepted reality, politicians’ positions can shift in concert. Take Medicare. Liberals fought for the reform; conservatives subsequently vowed to defend it. Perhaps tomorrow’s Republicans will one day champion ‘ObamaCare’ with the same zeal as today’s GOP works to attack it.

California Healthline will keep the spotlight on the latest reforms — and watch for the next batch of changes — in upcoming issues. Meanwhile, here’s what’s making news around the nation.

On the Hill

In the Courts

Rolling Out the Reform Law

In the States

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