Kerry: Lowering healthcare costs for small business

(1) CUT THE COST OF PRESCRIPTION DRUGS. Prescription drug costs are rising at 20 percent a year and are the main driver of health care costs. John Kerry will stand up to the big drug companies and bring down the cost of prescription drugs.

* Ending loopholes that keep high quality generics off the market. Patent loopholes are keeping less expensive generic drugs off the market. For example, the patent for one expensive painkiller was extended for three years just because the drug company made minor changes in dosage, costing consumers $727 million. John Kerry will close these loopholes.
* Making pharmaceutical companies disclose rebates and incentives. Some estimates show that rebates and incentives to Pharmaceutical Benefit Managers may account for as much as 10 percent of the $161 billion that Americans spent on prescription drugs last year. John Kerry will make companies disclose where this money is going.
* Reducing Prescription Drug Errors. Nearly $76 billion in annual health care costs are due to patients incorrectly taking medications. Kerry will improve health care and reduce costs with aggressive patient and provider education programs and with new technologies to help patients understand prescriptions.

(2) REDUCE PREMIUMS BY HELPING OUT WITH HIGH COST CASES. Medical cases that cost over $50,000 a year are rare, but they account for 20 percent of private insurance costs. John Kerry’s plan pays for three-quarters of the health care costs for any employee whose annual costs exceeds $50,000 so long as the employer agrees they’ll pass savings on their employees. This alone will reduce health insurance premiums by up to $1,000 per policy.

(3) CUT WASTE AND FRAUD IN HEALTH CARE

Cut Administrative Costs in Half. At least 25 percent of health care, nearly $350 billion, is spent on non-medical costs. Under John Kerry’s plan, administrative costs will be cut in half by giving incentives for improved technology, streamlined electronic records, and cutting back on fraud.

Getting Tough on Those Who Commit Fraud. Those who commit healthcare fraud ought to be punished under the same tough new penalties that apply to corporate executives who violate corporate responsibility. John Kerry will hire more investigators to crack down on fraud and wants higher penalties and tougher sentencing guidelines. John Kerry will ensure that those who commit healthcare fraud are treated similarly to other criminals.

(4) REDUCING COSTS THROUGH A FAIR MALPRACTICE SYSTEM. Kerry strongly opposes capping damages in medical malpractice lawsuits, but believes we can and must reduce meritless litigation. His plan prohibits medical malpractice court cases from being brought unless a qualified specialist determines a reasonable claim exists; requires states to make available non-binding mediation; and opposes the award of punitive damages in medical liability cases except upon proof of intentional misconduct, gross negligence or reckless indifference to life. He also believes that we must reform insurance practices that raise malpractice premiums unnecessarily.

(5) MAKING HEALTH INSURANCE AVAILABLE TO ALL AMERICANS. People without health insurance still get medical care, but often it’s last minute expensive emergency care. And if they can’t pay for it themselves, the cost gets shifted to the government and people with insurance. $35 billion was spent on uncompensated care in 2001, with 85 percent of the costs paid for by the government. John Kerry has a bold plan to provide health insurance to nearly 96 percent of all Americans, including every child. John Kerry’s plan will dramatically reduce uncompensated care costs and save the government at least $10 billion a year.

(6) GENERATE SAVINGS THROUGH A HEALTHIER AMERICA. Patients with diabetes account for one dollar out of every ten in the health care system, but appropriate prevention and treatment can save 50 percent of resources. Kerry’s plan would disseminate best practices and assure preventive care. It also relies on evidence-based medicine to assure Americans get the care that works the best.

(7) MAKE COVERAGE MORE AFFORDABLE FOR SMALL BUSINESS.

* Access to More Affordable Health Care. Small businesses typically pay more on administrative costs and they often see premiums rise when one employee has high health care costs. John Kerry’s plan will allow them to join the new Congressional Health Plan. This will allow small businesses to provide more affordable coverage by wielding market clout, obtaining better deals from insurers, and reducing administrative costs.
* Tax Credits to Small Businesses to Make Coverage More Affordable. Refundable tax credits on up to 50% of coverage will be offered to small business and their employees. In addition, the premium rebate pool for certain high cost health cases will help reduce costs for all Americans. The premium rebate and access to the Congressional Health Plan will save small businesses at least 15 percent.
http://www.johnkerry.com/issues/small_business_health.html