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A way to bend the cost curve up

Minimum staffing provisions in public sector union contracts – largely in police and fire departments – are a major reasons those services are so expensive. They lead to massive, unnecessary overtime costs and are easily abused – it is simple for a worker to call in sick so a friend can pick up some extra OT. It also turns the proper relationship of manager and worker on its head – employees, not management, dictate how many people are required to do a task. The union, naturally, wants as many people as possible on a task, a vehicle, a shift. It undermines efficiency and productivity, by design. Gov. Deval Patrick and state legislators, who huff and puff about “bending the cost […]

Health Care Econ-101 For Governor

During an appearance on WTKK-FM today, Governor Patrick dipped his toe into the uncompensated care pool controversy that has been splashed over the pages of The Boston Herald. Here and here. Some highlights (lowlights) from the Inspector General’s report that sparked the stories have been: $7 million on care for non-Massachusetts residents. Claims were paid out for patients with home addresses in 48 other states, and a handful of foreign countries. $17.8 million for more than 60,000 “medically unlikely” or “medically unnecessary” claims, such as foot X-ray charges for patients suffering from headaches. Suspicious claims for gender-specific procedures for members of the opposite gender. (Such as gynecological bills for men) $6 million for 13,000 duplicate claims. 45% of those seeking […]

CMS Ignites ACO (Accountable Care Organizations) Debate

Today the Centers for Medicare and Medicaid Services (CMS) released long awaited proposed regulations for accountable care organizations (ACOs). Under the federal Affordable Care Act (Obamacare), ACOs– which are associations made up of groups of health care providers—can share Medicare savings derived from improvements in care. In CMS administrator Don Berwick’s own words: The creation of ACOs is one of the first delivery-reform initiatives that will be implemented under the ACA [the national Affordable Care Act]. Its purpose is to foster change in patient care so as to accelerate progress toward a three-part aim: better care for individuals, better health for populations, and slower growth in costs through improvements in care. Under the law, an ACO will assume responsibility for […]

Medicaid’s Drug Problem: $329 million a year

I have blogged before about the problems that we have here in Massachusetts with our exploding Medicaid costs (here, here, here)– roughly 40% of the budget this year. Alex Brill at American Enterprise Institute (AEI) updated a working paper titled Overspending on Multi-Source Drugs in Medicaid that brings attention to one of those cost drivers –the elevated use of multi-source drugs in Medicaid. Multi-source drugs are prescription drugs that are available in both brand and generic form. While the title may not draw in many readers outside of the health policy community, it highlights a very important issue that does (and will continue) to impact state budgets for years to come. The recently enacted Affordable Care Act (ACA or Obamacare) […]

Teacher pensions: Answering Your Questions

Last week, I blogged on teacher pensions and the piece drew agreement and criticism. In response to critics, I’ll let the numbers speak for themselves. Today, I wanted to continue the conversation by following up on the good questions raised by commenters. How much do teachers’ salaries go up on average? Berkman34 and ChuckinMedford asked about the assumption of a 4.69 percent annual increase in salaries that underpins my average salary number for 2011. There are a few things to say on this which can be helpful. First, the 4.69 percent increase is simply what empirically happened between 2004 and 2009, which were also difficult fiscal years, and years in which municipal aid from the state was not seeing the […]