FOR IMMEDIATE RELEASE
June 21, 2007
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ADVAMED UNVEILS HEALTH CARE REFORM PLAN
Plan Provides Universal Coverage, Includes Savings and Emphasis on Quality, Preventive Care and Medical Innovation
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WASHINGTON, D.C.– AdvaMed’s Board of Directors today approved a sweeping health care reform plan that would provide every American the opportunity – and responsibility – to purchase affordable insurance meeting a federal standard of coverage. The plan links universal health insurance coverage to a comprehensive plan to reduce health care costs through a national commitment to preventive health, quality and efficiency improvements, and measures to speed the pace of medical innovation. Estimates show these steps will generate savings that will pay for the cost of the plan and reduce national health spending as well.
“Every patient deserves access to the best care American medicine can provide, and at an affordable price,” said Edward J. Ludwig, Chairman, President and CEO of BD (Becton, Dickinson and Co.) and Chair of AdvaMed’s Board of Directors. “There is no more important issue to families than the health and well-being of their loved ones, and this plan offers a way to help bring peace of mind to the more than 45 million uninsured in this country.”
“Our plan shows you can finance expanded coverage without rationing care or stifling innovation,” said Stephen J. Ubl, President and CEO of AdvaMed. “Our plan pays for itself through the cost-savings generated by improved prevention, quality, and efficiency and through fostering the development of new cures and treatments.”
To improve quality and control costs, the AdvaMed plan creates a number of mechanisms to promote quality and efficiency, including supporting development of measures of quality and efficiency, public reporting of the performance of providers and health plans, financial incentives for providers and health plans to deliver quality, efficient care, with special emphasis on care for chronic diseases, and support for expansion of information technology in health care. The proposal also establishes a $10 billion fund for health promotion and disease prevention.
Estimates show that savings under AdvaMed’s plan will more than pay for the cost of expanded coverage. The additional annual cost of expanded coverage is estimated to be $69 billion in increased national spending, and $98 billion in federal spending. When cost savings are taken into account, the plan as a whole will save $226 billion in national spending, and $105 billion in federal spending. Savings will come primarily from better treatment and prevention of chronic illness, from wider use of health information technology, and from medical innovation. Costs arise primarily from greater utilization of health care services by the currently uninsured and from subsidies to assure coverage is affordable.
Key elements of AdvaMed’s plan are designed to provide a broadly supported, nonpartisan approach to improving the health care system, including:
- The opportunity for all Americans to purchase insurance coverage meeting minimum federal standards. To assure that coverage is affordable, the individual’s financial responsibility for paying premiums would be capped at a reasonable percentage of income that will be lowest for low income individuals and families and rise as income rises. Any differences between the cost of coverage and an individual’s obligation to pay will be made up by subsidies in the form of refundable tax credits. Medicaid will continue to be an option for low-income and disabled populations, and the disabled not eligible for Medicaid will have the opportunity to buy wrap-around Medicaid or equivalent coverage to meet their special needs.
States will be responsible for structuring the private insurance market to assure that individuals have a choice of coverage meeting national standards and encouraged to establish insurance mechanisms that assist small business offering coverage to provide a choice of options to their employees.
Read AdvaMed's
plan.
# # # AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. Our members produce nearly 90 percent of the health care technology purchased annually in the United States and more than 50 percent purchased annually around the world. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit
http://www.advamed.org/.