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State of the Industry 2009: we asked readers to forecast the industry outlook for 2009. Here is what you had to say.

Publication: Managed Healthcare Executive
Publication Date: 01-OCT-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: State of the Industry 2009: we asked readers to forecast the industry outlook for 2009. Here is what you had to say.(Industry overview)(Cover story)(Company overview)

Article Excerpt
REFORM

WHILE IT APPEARS as if healthcare has taken a back seat to current economic and global issues, 25.9% of nearly 500 MHE readers surveyed see health plans as being the agents of change in its reform.

"This indicates a confidence in their own ability to change, as well as skepticism about government's ability to drive reforms effectively in a contentious environment. If there is a surprise, it is that [25.9%] is not higher," says Jeff Munn, design and development group leader in the health management consulting practice of Hewitt Associates.

"Momentum issues get attention, and, assuming that there are solutions that the executives feel strongly about, gaining grassroots awareness and support for those issues will be critical no matter who wins the White House," Munn continues.

Susan Foote, JD, professor, division of health policy and management, School of Public Health, University of Minnesota, Minneapolis, agrees. "Most interest groups--including the stakeholders [listed]--have drafted plans of their own, and are no doubt gearing up to lobby if the issue emerges in the new president's priority list," she says.

The outcome of the upcoming election could play a role in why almost 23% of managed care executives surveyed by MHE say that they aren't certain which stakeholder will make the most progress on health reform.

Foote goes on to say that while most health plans support expansion of coverage to more individuals, few have faced the reality of cost constraints that accompany that expansion, including efforts to pay for quality and not volume.

Expanding coverage is certainly something that Commonwealth Health Insurance Connector Authority in Massachusetts knows about. "With critical support from the federal government, we're showing it can be done," says Jon Kingsdale, executive director of the Connector. "Lessons learned are priceless. Look closely at the data, not just the headlines. Look locally, look nationally and look internationally. There is much out there to be both emulated and avoided."

According to Kingsdale, there are nearly 440,000 newly enrolled beneficiaries since reform was implemented in July 2006. A recent annual survey by the U.S. Census Bureau reports that Massachusetts had the lowest rate of uninsured in the country at 7.9% for the two-year period between 2006 and 2007.

But, whatever path managed care executives decide to take, Peter Kongstvedt, an independent advisor based in McLean, Va., suggests being as proactive as possible, preferably in concert with other forward-thinking organizations.

"Being reactive always means that somebody else is setting the agenda, proposing the rules, setting the goals," Kongstvedt says. "Being proactive doesn't guarantee success, but it at least means that your own goals and objectives will be in the mix early on.

"Having said that, proactive absolutely must not look like an exercise in selfish protectionism--which means understanding the legitimate needs and goals of others, and translating your own goals and objectives into terms meaningful to others," he concludes.

Stakeholders Predicted to Make Most Progress on Health Reform in 2009 Health Plans 25.9% Not Sure 22.8% State Governments 16.6% Federal Governments 16.2% Consumer Advocacy Groups 10.6% Providers 8.0% Source: Managed Healthcare Executive Reader Survey, 2008 Note: Table made from Bar graph.

TRENDS

AMONG THE TOP ISSUES in 2009 is increasing consumer engagement. Health plans have done a reasonably good job developing member portals and adopting technology that puts information and applications in the hands of the healthcare consumer to better manage their own care. The challenge going forward is to leverage technology to touch members even more.

"Some plans are very focused on how they leverage the Web as a way to reach and activate their members, but I think we still have a long way to go," says Kevin Noland, CEO and president of A.D.A.M., a consumer health information organization. "There needs to be a recognition that not everyone of us gets engaged at the same level. There are multiple touch points, and I think we have to recognize what those touch points are and how we best provide information, tools and support at all of those places."

Noland says that there are few standards for presenting cost information to consumers, for example, therefore rendering much of the information useless. Until standards are solidified and adopted across a broad use, it will be difficult for consumers to make heads or tails out of the information....



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