Jan
12
Cigna and US Physician Group to Launch New Health Care Initiative
Filed Under CIGNA, USA Health Insurance | Leave a Comment
US health insurance giant CIGNA Corp. is launching a new collaborative medical care initiative with a New York-based physician group that aims to deliver improved medical access and outcomes at reduced cost for members and will work in a similar manner to the accountable care organizations outlined by the Obama Administration’s health care reform law.
Accountable care organizations, commonly referred to as ACOs, were introduced as part of the Patient Protection and Affordable Care Act in 2010. ACOs function as patient-centered networks of private healthcare providers that all agree to be made accountable for the overall care of their health plan members in exchange for additional compensation if they are able to improve health outcomes and reduce medical expenses.
On Wednesday, CIGNA announced that the Weill Cornell Physician Organization would be their partner in what will become the first accountable care initiative in New York that encompasses both a health plan and a physician organization. The move follows the establishment of a similar collaborative initiative between CIGNA and independent physician group Partners in Care in New Jersey last month. Nationwide, the Bloomfield, Connecticut-based health insurer is now running 11 accountable care programs across 10 states, with patient-centered initiatives now encompassing more than 170,000 Cigna policyholders and 1,800 primary care physicians. The insurer also participates in six multi-payer medical home initiatives across the USA.
According to a press statement released this week by CIGNA, the goal of all these ACOs is to ultimately provide a better service for policyholders through improved access to care and better coordination between medical providers. The statement outlined the company’s “triple aim” of raising member satisfaction, improving health outcomes and reducing the overall cost of medical care. Those who are already covered by Cigna and use Weill Cornell primary physicians will not need to do anything to receive the benefits of the program.
Under this new collaborative program, all nurses employed by Weill Cornell’s 71 primary care doctors will serve an additional role as clinical care coordinators for CIGNA policyholders. These registered nurses will use the patient-specific data provided by the health insurer to identify and reach out to patients discharged from their hospitals who might still be at risk for readmission, overdue for an important health screening, or someone who may have simply missed a prescription refill. These care coordinators will also work to help patients schedule doctor appointments, provide them with appropriate health information, and refer individuals to CIGNA’s disease and lifestyle management programs, the statement said.
Dr. Alan Muney, CIGNA Chief Medical Officer, declared in the statement that these programs were working to transform medical practices nationwide by changing the payment system to reward for quality and outcomes rather than pay for volume. “We believe that initiatives such as this will help transform the way medicine is practiced in the United States from a system that’s focused mainly on treating illness and rewarding physicians for volume to one that’s patient-centred and emphasizes prevention and primary care. We’ve already seen very promising early results in locations where we’ve implemented this type of program, and we believe these initiatives ultimately will lead to a healthier population and lower medical costs,” Muney commented, saying in addition that CIGNA has planned to continue increasing the number of such patient-centered initiatives nationwide throughout 2012
Weill Cornell’s chief contracting officer, Dr. Michael Wolk, was on hand to confirm the sentiment. “Providing value-added, patient-centred health care is our number one priority. We look forward to collaborating with Cigna to deliver the right care at the right time in the right place,” Wolk said, adding that patients that have needed greater help and communication in managing their chronic conditions, including diabetes and heart disease, would be the most likely to see the immediate benefits of the program.
This collaborative accountable care initiative between Cigna and Weill Cornell demonstrates perhaps the steps now necessary for health insurers and providers to encourage greater patient participation with healthcare professionals while keeping costs manageable. Health insurance in the United States has been primarily provided through private sector employers, who bear a large portion of the nation’s healthcare costs. In times of limited economic growth it has thus become increasingly important for those involved in the country’s health system to find a model that can lower costs while maintaining and improving overall employee health and productivity. Added to this has been the continued fervor over the Obama Administration’s upcoming healthcare reforms. Under the Patient Protection and Affordable Care Act (PPACA) nearly all American citizens will have to carry health insurance by 2014 or else face a fine. The US Supreme Court has agreed to rule on whether the United States government can make its citizens engage in such commerce, with their verdict likely to be a critical issue in the run up to the country’s general election in November. The individual mandate, if deemed legal, will put the US insurance industry in a bind, with insurers having less control over whom they cover, which is predicted to drive up their medical expenses and drive down profits. Many insurance companies are therefore deciding look outside the country in order to offset the relatively low premium growth forecast in the USA.
Indeed, Cigna has proven to be one of the more proactive American insurers looking to develop their footprint in overseas markets. As BRIC economies in particular continue to grow, Cigna plans to be at the forefront with an aggressive strategy to take advantage of the increasing demand for insurance and savings solutions in these countries. Industry analysts predict Cigna’s international operations could grow to become a third of the company’s total business within the next three to five years.
Insurance Company Mentioned
Cigna
CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
Jan
11
Chinese Insurance Market Grows in 2011, Faces Challenges in 2012
Filed Under China, China insurance | 2 Comments
China may be home to one of the world’s fastest growing insurance markets but unless the country’s insurance sector can address some fundamental issues going forward, insurers will not be able to capitalize on the market’s profound business potential moving into 2012 and beyond. This is all according to Xiang Junbo, the head of the China Insurance Regulatory Commission (CIRC), who had strong words for the Chinese insurance industry this week, warning that they would indeed face major challenges this year despite the continued double-digit growth in premiums reported for 2011. Insurance companies will need to adapt to changes in the Chinese economy, adjust their business models and increase both their equity investments and bank deposits, all while making sure to maintain a healthy solvency ratio.
According to the latest industry data presented by the CIRC at the National Insurance Work Conference last week, Chinese insurance companies wrote CNY1.43 trillion (US$226.4 billion) worth of premiums last year, a 10.4 percent increase on 2010’s results. Broken down by sector, the country’s property and casualty insurance sector recorded an 18.5 percent annual increase in premium income to CNY461.8 billion (US$73.1 billion), while the life insurance industry posted a 6.8 percent rise in premium income to CNY969.9 billion (US$153.5 billion). This occurred while the total assets held by insurers in China rose to a record CNY5.9 trillion (US$930 billion), compared with CNY5 trillion (US$790 billion) in 2010, with the number of insurers failing to meet solvency ratio requirements declining from seven to five. Claims payments made by insurers meanwhile amounted to CNY391 billion (US$61.9 billion) in 2011.
Despite these strong growth figures, data that most markets would in fact be delighted with right now, the CIRC chairman Xiang Junbo used his time at the National Insurance Work Conference in Beijing on Saturday to warn those active in the domestic insurance industry that there were still deeply-rooted problems in the market that need to be dealt with promptly. Chinese insurance companies did indeed deal with difficult conditions last year, with the increased prevalence of natural disaster losses, inflationary pressure and ongoing global financial market volatility occurring throughout 2011 amongst other issues, and saw their annualized return on investment fall by 3.6 percent. According to the CIRC website, Xiang warned that if these challenges cannot be overcome, the growth potential of the insurance market may in fact exceed the domestic industry’s capacity to act. “Affected by severe external economic and financial conditions as well as the sector’s own problems, the industry is experiencing a rapid increase in difficulties,” Xiang said, adding that insurance companies could soon face greater pressure due to their relatively low capitalization, unrefined risk management practices and limited asset and liabilities management options.
In his speech Xiang, who was appointed CIRC commissioner last October, went on to outline several specific problems Chinese insurers must contend with in 2012. First off, the CIRC head admitted that the largest growth figures seen over the past year in the property and casualty insurance sector were mainly generated by the automobile industry and compulsory first party motor lines, not through any noted product or market developments. According to Xiang, the overall competitiveness within the Chinese insurance industry is still relatively weak, with some insurers in fact violating industry regulations in order to gain market share. An industry-wide development strategy that has focused primarily on gross premium growth has been the main culprit for this malaise. This current pattern of expansion, which comes largely at the expense of improved management structures and product/service innovation has failed to consistently satisfy public demand, Xiang held, and that pushing for more innovations in insurance product design and service would be the best way to address this issue going forward. There have also been problems with sales management mechanisms as most of the sales persons in the industry remain under qualified for their positions. Overall, Xiang feels that many Chinese insurance companies are simply not keeping up with “the profound changes in the external environment.”
In an attempt to remedy these issues and ensure that Chinese insurers do not fall further behind, the CIRC will actively encourage companies to bolster their capital reserves in 2012 and invest wisely in their businesses. Higher reserves will ultimately help companies survive unforeseen catastrophe losses and will enable them to better protect and serve their existing policyholders. The insurance authorities are also considering allowing greater foreign involvement, particularly in the country’s claims-heavy motor insurance market, amongst other reforms. The CIRC also has plans to help companies shift their focus toward subordinated, hybrid and convertible bonds, which will help boost their capital positions, as well as the performance of investments throughout the industry, keeping insurance credit ratings fairly high in tow. Xiang and his agency, are on record supporting plans for the People’s Insurance Company (Group) of China Ltd. to become a public company and will also push forward reform of shareholding arrangements at China Life Insurance Group Co.
Overall, while the Chinese insurance market will of course continue to provide tremendous business opportunities going forward, individual insurers active in the world’s second largest economy will need to build greater capital reserves and continue to evolve their business practices to succeed, a view shared by other prominent industry analysts. Recent reports published by AM Best and AON Benfield touch on many of the same concerns expressed by the CIRC but conclude ultimately that China’s continued economic development, pegged at 9.6 percent real GDP growth this year, will continue to provide scope for insurance demand across all business lines, provided of course regulation and business practices can improve as well.
Jan
10
S&P Report on Saudi Insurance Market
Filed Under Middle East | Leave a Comment
Fresh analysis released this week by one of the world’s foremost industry information and ratings agencies, Standard & Poor’s (S&P), reveals the challenges and opportunities that players in the Saudi Arabia insurance market will likely face throughout 2012 and beyond.
In ‘Underwriting Sustains Profitability In Saudi Arabia’s Increasingly Competitive Insurance Industry’, S&P observes that despite stubbornly low interest rates and a more crowded protection market with increased international attention, Saudi insurers should be able to maintain profitability going forward on the back of the Kingdom’s continued overall socio-economic development and the accompanying demand for more protection and savings solutions. With a population now exceeding 27 million people, Saudi Arabia represents the largest insurance market in the GCC and has witnessed considerable growth since the insurance business was first allowed in the 1990s. S&P noted that the Kingdom’s domestic insurers have seen their businesses expand in particular over the past few years from the introduction and increased awareness and availability of health insurance products and services. After compulsory medical insurance laws for the country’s sizeable expatriate workforce were first introduced in 2008, the concept quickly spread on to domestic employees, and medical insurance has fast become the biggest line of insurance business throughout the Kingdom. Overall, the Saudi Arabian insurance sector is looking to take on a more significant role in the national economy and today enjoys a greater capital position as more local businesses and individuals become aware of and recognize the value of having adequate insurance coverage.
Compared to other emerging insurance markets in the region, regulatory oversight in the Saudi Arabia insurance industry has become moderately strong, with adequate transparency and corporate governance in force, and this is listed by S&P as a neutral to positive factor in the country’s overall insurance risk assessment. The Saudi Arabian Monetary Agency (SAMA) is responsible for regulating the Kingdom’s insurance sector and has been working with other government and industrial agencies to proactively develop and modernize the domestic insurance trade. S&P notes that the Saudi insurance market underwent a significant change in 2008, when a raft of new regulations were introduced by royal decree that produced some considerable administrative, economic, and operational hurdles to establishing new insurance companies in the Kingdom. SAMA has gone on to enforce these new requirements, which include quarterly reporting, independent board members, public listings, operation licences and regular product approvals. While some of these requirements, especially local office and Saudi national staffing quotas, have proven particularly burdensome, overall many feel that this new framework has provided some order to the market, improved consumer protection, and prohibited anticompetitive behaviour, such as dropping rates.
These updated regulatory processes have also, according to S&P, worked to erect higher barriers to entry in the Saudi insurance market and have perhaps mitigated the competitive pressures currently facing the 33 insurers already operating within a limited marketplace. Because the Kingdom’s lucrative energy business risks remain under a state-owned monopoly domiciled in Bermuda, most of the insurance companies in Saudi Arabia are competing across the same few profitable lines of business. While this certainly drives prices down for prospective customers, it also impacts company profitability prospects based on inadequate pricing going forward. S&P however expect that the pressure caused by overcrowding should ease as the Kingdom’s insurance market grows in both size and sophistication. “With more profitable business available, market participants will be able to expand organically without taking market share from their competitors,” S&P stated.
Despite these impressive strides, the Saudi Arabian insurance sector’s institutional framework has yet to be truly tested under significant stress. The individual insurance players in the market still have much to do in order to capitalize on their potential and realize premium levels similar to those in more developed markets. S&P found that in comparison to many Western insurance companies, Saudi insurers have held a disproportionate amount of capital given the amount of premium they currently write and have tended to focus more on achieving a return on equity (ROE) through underwriting profits alone. The investment strategies for these domestic insurers have been more conservative and, according to S&P, have contributed little to the industry overall sound profitability so far. As competition in the Kingdom increases through 2012 and beyond, S&P anticipate that it will become harder for domestic companies to maintain their market share with underwriting discipline. More profound investment strategies and innovation will surely need to be taken by these companies to tap into Saudi Arabia’s still largely unpenetrated insurance market.
Another issue Saudi insurance companies must contend with now is persistently low global interest rates, and how these low borrowing costs affect their market in particular. Because these insurers operate in an Islamic country adhering to Shariah law, they are all subject to a ‘zakat’ tax on investments. In Saudi Arabia, zakat is a flat-rate 2.5 tax on cash holdings and, according to S&P estimates, exceeded the average investment return for domestic insurers by SR30 million for year-end 2010. “Thus, for Shariah-compliant insurers, the obligation to pay zakat tends to limit the underlying ability of earnings to enhance capitalization…until interest rates rise from their current low levels, Saudi insurers must make an underwriting profit to break even,” Standard & Poor’s reported. When underwriting earnings or investment returns for these companies begin to increase, zakat will then constitute a decreasing share of profits.
Overall, S&P marked the insurance penetration and profitability trends in Saudi Arabia as positive. According to data released by the SAMA last year, the Kingdom’s insurance market grew by 12.4 percent in 2010, passing SAR 16.4 Billion (US$ 4.4 Billion) in gross written premiums. During this period the domestic insurance industry was also able to improve its underwriting performance regarding payouts, with estimated claims processed dropping to US$1.25 billion in 2010 from US$1.54 billion in 2009. This has allowed some domestic insurers to recapitalize and build up reserves. These double-digit growth indicators have helped push the Saudi insurance sector’s overall contribution to around 1 percent of national GDP, double the 0.53 percent reported in 2006, which is remarkable considering that the penetration rate for non-life and life insurance in Saudi Arabia, at 1.0 percent and 0.1 percent, remains amongst the lowest in the region, with a modest average premium per capita of roughly SAR 600 (US$ 160). These low insurance penetration and premium levels will likely soon improve of course, as more Saudi citizens become of aware of the value of private coverage and the local insurance sector evolves to more adequately promote insurance to meet their citizens’ demands for protection against risk. “While insurance penetration remains low as a percentage of GDP, it is growing fast and it is expected that as the economy grows, so will the insurance sector,” S&P concluded.
Ratings Company Mentioned
Standard & Poor’s
Standard & Poor’s (commonly referred to as S&P) is a business branch of publishing house McGraw-Hill. Operating out of 20 countries, S&P provides the investment community with independent credit ratings on important financial vehicles such as stocks, municipal bonds, corporate bonds and mutual funds. In addition to its risk management, investment research and credit rating services, Standard & Poor’s is known for its indexes, in particular the S&P 500 index.
Jan
9
Ongoing Confusion over Foreigners’ Inclusion in China’s Social Security System
Filed Under China, China insurance, Expat Insurance, Health Insurance, Income Protection, Life Insurance, Medical Insurance | Leave a Comment
There continues to be continued uncertainty over whether, as well as how, China is going to include foreign workers in the nation’s social security scheme, with only 3 cities so far, including the nation’s capital, having committed themselves to registering and taxing foreign employees.
The inclusion of foreigners in China’s social security taxation structure is part of China’s health care reforms and the modernization of the country’s social welfare structure to accommodate such reforms. Through taxing expatriates, China offers them access to a number of things through the social security system such as unemployment insurance, pensions and basic medical cover. The scheme requires that the employer pays a tax of 37 percent of the employees’ salary to the state, while the employee contributes a further 11 percent, although contributions are supposed to be capped at three times the average salary in any city.
The plan to include foreign expatriates in China in the social security taxation scheme was initially announced by the central government in July of 2011, and foreigners were supposed to have commenced paying into the social security scheme in October. However, while the Chinese central government announced the new taxation on expatriates, it is the local authorities who are supposed to be implementing it through the registration of foreigners and a mechanism for how to actually pay into the social security system.
The lack of clarity over how the process should work, as well as the relatively short timeline to put necessary frameworks in place in many localities, has resulted in much confusion all around. Beijing was the only city ready to begin registering foreign workers, and even that has been rumored to be fairly unorganized.
However, two new cities have begun registering foreigners to comply with the new tax law, namely Tianjin and Suzhou. Other large centers of commerce in China, such as Shanghai, Guangzhou and Shenzhen have so far not begun to implement the new taxes for the social security scheme.
On top of the general bureaucratic chaos, both companies and their foreign employees have great concerns over the new tax and its implications. Many companies are concerned that in a business climate where it is increasingly more expensive to do business in China, the tax on expatriates’ salaries would become a drain on both business growth and foreign investment.
Foreign employees on the other hand are concerned that since much of their rights as workers are linked to their work visas, they will most likely never see the benefits they have been paying for. When expatriates lose or finish their employment in China, they must leave the country, largely rendering the benefits of the social security scheme moot.
Only in December did state media outlet Xinhua cite an unnamed social security official in Beijing as saying that foreigners who leave China will have their pension accounts kept, until they return to the country, retire, or submit a written application to drop the scheme. Although given the fact that this came out three months after people were supposed to have started paying into a scheme which they may or may not see the benefits from, it may only serve to further the sense of confusion surrounding the new taxes. While the social security scheme is similar to many other countries which include both citizens and foreigners, much needs to be done in order to clarify the scheme in order to make it reasonable.
Jan
6
CIGNA’s China JV Adds New Product to Health Insurance Lineup
Filed Under CIGNA, China, China insurance, Health Insurance, Medical Insurance | Leave a Comment
Cigna & CMC Life Insurance Co., Ltd., Cigna’s Chinese joint venture company, is adding a new product to its portfolio. The new health management product named Cigna & CMC CARE+ will afford policyholders of Cigna & CMC’s high end health insurance plans access to a number of new services and benefits.
As a joint venture between Cigna and China Merchants Group, Cigna & CMC operates as a health, life and accident insurance company in China. It was announced shortly before the end of 2011 that they would be including the new health management product as a value added service for new clients immediately and that existing clients can avail themselves of Cigna & CMC CARE+ benefits upon renewal.
The Cigna & CMC CARE+ health management product is composed of three tools and services. These are the International Employee Assistance Program (IEAP), Expert Second Opinion services and a health and wellbeing assessment.
The Expert Second Opinions section of Cigna & CMC CARE+ can help clients that have received a serious medical diagnosis by providing them with an online diagnosis analysis as well as treatment recommendations. Cigna & CMC have partnered with the Cleveland Clinic to provide clients access to experts who can provide second opinions and medical advice.
The health and wellbeing assessment offers policyholders access to an online survey which will generate a personal report with suggestions for improving their health in areas such as sleeping, nutrition and stress. After completing the assessment policyholders can receive advice and tools that can help them affect a positive change in their state of health.
The International Employee Assistance Program is one of the services that clients can use to begin improving their circumstances, as it provides confidential short-term counseling services and resources at no additional charge that policyholders can use to help resolve personal issues.
The announcement of the Cigna & CMC CARE+ product came shortly after the company had a new General Manager and CEO appointed in mid-November, 2011, named Mr. Fernando Moreira. The company currently offers 4 types of health insurance plans, titled jade, silver, gold and platinum, and the addition of the new health and wellbeing tools and services in Cigna & CMC CARE+ enable clients to stay healthy and possibly prevent future health issues.
Cigna & CMC’s Senior Vice President of Healthcare Products, Ken Vaughan, said that “Cigna’s mission is to improve the health, well-being and sense of security for the customers we serve. Building the foundation for health and well-being starts with access to the right tools and services.”
Insurance Companies Mentioned
Cigna
CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
Cigna & CMC
Cigna & CMC is a joint venture in China, established in 2003 by Cigna and China Merchants Group. The company offers life, accident and health insurance products in China. It was awarded the Best Foreign Life Insurance Company Award in China in 2008 and 2009.
Jan
5
CIGNA Preparing for Indian Joint Venture
Filed Under CIGNA, Health Insurance, Insurance Company, Joint venture, Medical Insurance | Leave a Comment
International medical insurance company Cigna is planning on opening a joint venture in India in the next couple of years, creating a partnership with local Indian Conglomerate TTK Group in forming a standalone Indian medical insurance company.
According to the WHO’s World Health Survey 2011, around 74.4 percent of private healthcare costs are paid out of pocket in India. Given that India’s middle class is growing at around 10 percent a year, alongside the historically low penetration of medical insurance products in the country, many analysts believe that the private health insurance industry in India will see robust growth in the near future with a projected compound annual growth rate for the industry of around 30% for the next 5 years.
Cigna is the latest foreign investor to commence the establishment of a standalone medical insurance joint venture in India and also the first American company to do so. Having already started the approval process with the Insurance Regulatory and Development Authority (IRDA) in India, Cigna and TTK intend to complete their filing in 2012 and obtain their license in 2013.
Cigna’s local partner TTK Group is a family-owned conglomerate that has business interests in a wide variety of business sectors, including both durable and nondurable goods, biomedical devices and a wide range of business and healthcare services. Based in Chennai and Bangalore, TTK operates retail locations that are soon thought to number over 1,500 throughout the country which would be a great leg up for Cigna in marketing their health and wellness insurance products across India.
If Cigna can enter the market with a portfolio of health and wellness insurance products and solutions that are inviting to relevant market segments then they stand a good chance of doing well in the largely untapped Indian health insurance market. This would further add to Cigna’s burgeoning international business.
Cigna is currently limited to 26 percent ownership of the joint venture with TKK in accordance with Indian regulations, however should the limit on the stake foreign firms can own in Indian-based companies be raised, Cigna may avail themselves of the opportunity to own a greater share.
Companies Mentioned
Cigna
CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
TKK Group
Founded in 1928 by T. T. Krishnamachari, TKK is an Indian conglomerate that is largely based out of Chennai and Bangalore. It now runs several businesses in different industries including white goods, pharmaceuticals, biomedical devices, consumer products and assorted business services.
Jan
4
NHS Trying to Balance Costs and Care
Filed Under Europe, Health Insurance, Healthcare, United Kingdom | Leave a Comment
In the midst of enacting QIPP (Quality, Innovation, Productivity and Prevention) policies, Britain’s National Health Service is en route to save £5.9 billion (US$ 9.23 billion) for the 2011-2012 financial year at the same time as some are protesting the effects that the cost-cutting measures will have on vulnerable members of society, and their levels of healthcare.
Britain’s government has been analyzing and implementing a number of ways to shave costs or reshape health services in efforts to streamline the NHS. QIPP efforts are intended to create £20 billion worth of savings, largely through efficiency measures, by 2015. The NHS has already saved some £2.5 billion (US$ 3.9 billion) between April and September 2011, putting them on track for their full yearly savings of £5.9 billion (US$ 9.23 billion) which mostly derives from reduced hospital care expenditure, but does include large savings on community services, mental health services and prescription drugs.
With medical care arising from hospitals services being one of the most expensive items on the healthcare budget and many hospitals facing dire financial straits, the government is attempting to retool the system through the Health Bill so that hospitals are not so heavily relied upon to provide treatment which they may be ill equipped to provide. Intentions are to place General Practitioners at the center of the system and place them in charge of purchasing healthcare services for patients.
However, as belts begin to tighten and proposals to redesign facets of the healthcare system begin to filter through, there are growing concerns from some quarters that the drive to cut costs and the plans to reorganize the health system may result in increased inequalities in the system, with some worried that vulnerable members of society may face great difficulties in procuring care.
One concern raised recently by some public health experts is that the increasing marketisation of the NHS will result in widely varied care throughout the country, resulting in health outcome disparities, especially for vulnerable socio-economic demographics and regions. This may be further exacerbated through pressures to cut costs and save money.
Others are more concerned with the growing need for extensive long term care for the elderly and disabled. At least half of the 2009-2010 healthcare budget was devoted to caring for older UK citizens, however this number is going to grow as the population continues to age. An earlier proposal, spearheaded by economist Andrew Dilnot, indicated that it was more effective and efficient, in terms of both cost and health outcomes, to treat older people through social care rather than acute healthcare in hospitals.
However, the proposed change would require greater funding for social care and financial assistance for older age patients. Dilnot’s proposal suggested raising the level of means-tested support and the introduction of a lifetime cap on how much money each individual would have to spend on adult social care, with the government picking up any extra costs over £35,000 (US$ 54,801); this would prevent the elderly from having to sell most of their possessions to pay for ongoing social care. However, while this proposal does dovetail nicely with the plan to reduce hospital services and spending, it does require a potentially greater outlay from the government on social care which may garner a more tepid response from politicians and treasury officials focused on austerity measures.
With a diverse group of parties touting the benefits of different courses of action, the issue may become increasingly contentious as the Health Bill comes closer to being fully enacted. However, with an increasingly sizable healthcare budget and growing economic uncertainties, it seems like not committing to some type of reform is one of the only unavailable options.
Jan
3
OECD Report Compares Healthcare Systems
Filed Under Healthcare | Leave a Comment
The Organization for Economic Cooperation and Development, which is celebrating its 50th anniversary, recently released their Health at a Glance report for 2011, analyzing the performance of healthcare systems in OECD countries.
The Health at a Glance 2011 report, which is the 6th edition of the OECD report, is largely based off of the data found in the OECD Health Data 2011 report and provides some of the most in-depth data for analyzing the differences between the varied healthcare systems present in OECD countries.
On the whole, countries that are part of the Organization for Economic Cooperation and Development (OECD) have seen great strides in positive health indicators over the 50 years that the OECD has been around. All 34 OECD countries enjoyed gains in life expectancy, which were in part due to great reductions in the mortality rates of all age groups.
Medical treatment has also come a long way throughout OECD countries, with many illnesses and diseases seeing reduced mortality rates. While cardiovascular diseases still remain the leading cause of death in OECD countries, the number of people dying within 30 days of having been admitted to hospitals has fallen to 4 percent in 2011. A number of different types of cancer have also seen increased survival rates, such as breast cancer and colorectal cancer, which saw improved 5-year survival rates throughout all countries.
In many of these cases, increases in survivability and reduced mortality rates for diseases and illnesses were largely the result of increased diagnostic and treatment capabilities, allowing ailments to be caught earlier and more effectively treated.
While the wealth of historical data from OECD countries demonstrated a number of positive health trends such as those noted above, it also highlighted a growing concern over the increasing number of chronic and lifestyle related diseases throughout OECD countries. Asthma, Diabetes and Obesity were all prominent issues for many OECD countries that the Health at a Glance report noted.
Asthma and Diabetes were two chronic illnesses that the report said should be dealt with differently throughout the OECD in order to avoid what the document detailed as avoidable admissions. The report noted that a greater focus should be put on primary care in dealing with Asthma, chronic obstructive pulmonary disease (COPD) and Diabetes, so that patients and healthcare systems can avoid unnecessary hospital admissions due to the diseases.
The report also raised concerns about the growing issue of obesity across many OECD countries. Out of the 34 OECD countries, in 19 of them more than 50 percent of adults are overweight or obese. This raises serious concerns as obesity is a risk factor in a large and varied number of health problems, many of which can end up developing into chronic conditions that require a large outlay of healthcare costs in the future.
In moving forward, healthcare stakeholders will be able to look at the data in the report to help them develop new initiatives that will help them tackle the most pressing issues for their countries. Despite the fact that many OECD countries have very different background factors that may influence the health indicators measured in the report, in many cases there may still be opportunities to explore measures that have worked in other countries to duplicate positive results.
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