IN MY OPINION: Both Wisconsin governor wannabes seem clueless on the main affordability issue: health care costs

By 
JOHN TORINUS
West Bend journalist John Torinus writes about politics, health care and business on his blog at johntorinus.com.

Just how lightweight is the campaign for Wisconsin governor between Democrat David Crowley and Republican Tom Tiffany?

They are essentially punting on the biggest affordability issue in the state and nation: Health costs are projected to rise by more than 9.5% in 2027.

Even though employers now absorb more than 80% of health plan costs, employees are expected to spend nearly $5,300 on health care this year.

The increases are unsustainable for many families and small businesses. With that stark reality facing us all as the number one affordability issue, why are Tiffany and Crowley side-stepping it?

Tiffany is calling for more health care transparency on prices, but that strategy has been around for decades and hasn’t moved the needle on costs and prices. Crowley has done no serious work or thinking on how health care costs might be reformed. He has called for a “public option” that would allow individuals and companies to buy into BadgerCare, the state’s version of Medicaid, the federal program to cover the poor. His sound bite is a non-starter.

Medicaid is actually a combined federal and state program, with the feds picking up about 60% of the tab. Could Crowley convince the president and Congress to create such a public option here? Doubtful.

President Trump and the Republican-controlled Congress are going the other way. They have been cutting subsidies for public health care. Tiffany was part of the Republican majority that just voted against extending Obamacare tax credits.

Crowley’s promise to open up BadgerCare is an empty concept. He should study Wisconsin history. When BadgerCare was created in 1999, it was opened up for the public option for three years until that program died, because it didn’t work.

Tiffany won’t depart from the Republican Party line that calls for cuts in federal health care spending. The GOP has never had a workable health care strategy.

There is a way forward for states. Indiana and Oregon have crafted innovative strategies that appear to be working. Indiana just passed a law that limits health care price increases to 200% of Medicare prices. Oregon is on the same track.

In effect, their health plans rely on Medicare clout, which has more purchasing power than any other entity in the country.

While hospitals would go bankrupt with Medicaid pricing, they should be able to stay viable with 200% of Medicare.

Note that, according to Rand Corporation, Wisconsin is at more than 300% of Medicare for average price levels for private insurance treatments—the highest in the Midwest.

At one time, Medicare had a price cap of $30,000 for a joint replacement, compared to double that or more at some hospitals. Hospitals can make good money at $30,000.

A big part of Wisconsin’s cost problem is that mergers have sharply reduced the number of health care systems in different parts of the state to oligopolies of two or three hospital corporations. Marketplace disciplines have disappeared. Mergers always result in higher prices.

Our governor wannabes need to listen to Gov. Mike Braun of Indiana, who said, “Government has to intervene, because health care is run like an unregulated utility,”

 

Feedback:

Click Here to Send a Letter to the Editor

Ozaukee Press

Wisconsin’s largest paid circulation community weekly newspaper. Serving Port Washington, Saukville, Grafton, Fredonia, Belgium, as well as Ozaukee County government. Locally owned and printed in Port Washington, Wisconsin.

125 E. Main St.
Port Washington, WI 53074
(262) 284-3494
 

CONNECT


User login