California Education Coalition for Health Care Reform

INTRODUCTION TO CECHCR

Who is CECHCR?

Association of California School Administrators

California Association of School Business Officials

California County Superintendents Educational Services Association

California Federation of Teachers California School Boards

Association

California School Employees Association

California Teachers Association

Community College League of California

School Employers Association of California

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Stronger Together

Management and labor working together

Of the education community

By the education community

For the education community

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CECHCR Strategies

Share policy information Develop and share “Best Practices” Coordinate legislative initiatives,

such as: Study of a “School Pool” Transparency Health Families National health care reform

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Three Education Programs

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Module I

“Joint Labor–ManagementHealth Benefits Training”

Module II

“Health Benefits:Making Informed

Choices”

Module III

“Health Benefits:Current Issuesand Trends”

Follow-up Services

Module IV

Additional TrainingFollow-up consultationsAssistance in engaging

health benefits plans

Cost Trends

Trends are Unsustainable for Districts, Employees, and the Population We Serve

$13,375$14,539

$15,803$17,178

$18,673$20,297

$22,063

$23,983

$26,069

$28,337

$30,803

$13,375$14,191

$15,057$15,975

$16,949$17,983

$19,080$20,244

$21,479$22,789

$24,180

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1999-2009 (8.7% )

2004-2009 (6.1% )

Note: Health insurance premiums projected for 2010-2019 assuming (1) that the average growth in premiums between 1999 and 2009 (8.7%) continues or (2) that the average growth in premiums between 2004 and 2009 (6.1%) continues. Source: Kaiser Family Foundations projections based on data from Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2009.

Projected Health Insurance Premiums for Family Coverage, Assuming Average Growth Rates, from 1999-2009 and 2004-1999

The Industry’s Explanation for Higher Costs

“80% of all claims are lifestyle related”

– a quote from a Blue Cross of California representative

Excess utilization New technology Aging population

I didn’t do it!

What the Research Shows

Waste, inefficiency, high administrative costs

Poor quality Inappropriate care Huge variation in costs

Welcome to the Health Care Industrial Complex

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Industry Growth Since 1970

Source: US Bureau of Labor Statistics; Himmelstein, Woolhandler, Lewontin analysis of CPS data

Deaths from Medical Errors

Significant Cost Variations

The Dartmouth Atlas of Health Care – research on Medicare costs

McAllen, TX has one of the highest cost per Medicare enrollee

Why?

Comparing Cost Trends

Cost Trends Have Been Contained in Other Countries

* PPP=Purchasing Power Parity.Data: OECD Health Data 2007, Version 10/2007.

Average spending on healthper capita ($US PPP*)

Total expenditures on healthas percent of GDP

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International Comparison of Spending on Health, 1980–2005

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

United StatesGermanyCanadaFranceAustraliaUnited Kingdom

0

2

4

6

8

10

12

14

16

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

United StatesGermanyCanadaFranceAustraliaUnited Kingdom

* PPP=Purchasing Power Parity.Data: OECD Health Data 2007, Version 10/2007.

Average spending on healthper capita ($US PPP*)

Total expenditures on healthas percent of GDP

EFFICIENCY

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2008 15

US Life Expectancy

Utilization is lower in the U.S. than it is in other countries

Health Care inthe U.S.

The U.S. spends more per capita than other countries, and yet is ranked last by all these indicators.

http://www.commonwealthfund.org/usr_doc/site_docs/slideshows/MirrorMirror/MirrorMirror.html

CECHCR’s Role

To train local districts to be more informed purchasers of health care

To educate and coordinate the education community about various reform proposals and how they impact school districts / unions

To facilitate dialogue and collaboration among school-based purchasers statewide

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Health Care For All www.healthcareforall.org The Commonwealth Fund www.commonwealthfund.org Kaiser Family Foundation www.kff.org California HealthCare Foundation www.chcf.org The California Endowment www.calendow.org Physicians for a National Health Program www.pnhp.org For additional information and links to various

health care websites: www.cechcr.org

How You Can Stay Informed

Good sources of information:

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Questions or Comments?

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