US and Developed Countries: Comparing Health Care Systems - 2014

1. US and Developed Countries: Comparing Health Care Systems - 2014 Steven Miles, MD University of Minnesota

2. Efficiency: Outcomes for $ How does the US stack up?

3. $/person-yr (adjusted for purchasing power parity) The Organization for Economic Cooperation and Development was founded in 1961 to compile statistics and policy reports to promote economic growth. OECD 2013

4. Efficiency as $/person-yr & Infant Mortality /1000 OECD 2014

5. Efficiency as $/person-yr & Life Expectancy at Birth OECD 2014

6. Efficiency as $/person-yr & Life Expectancy at 60 OECD 2014

7. Mortality Rates Amenable to Provision of Health Care 1997-2003 USA has highest rates of preventable death and smallest decreases in preventable deaths We are falling further behind! <75 yo. Amen Mort is deaths preventable by HC system, e.g. CA, CVD, DM, inf, etc. Rates are /100,000 Health Aff 2008;58-71. (See also Health Aff 2012;31:2114-22.

8. How do other countries succeed? Is rationing their secret? If rationing Improves outcomes, is health care toxic?

9. Do they ration Doctors? No.PS: There is no rationing of nurses either. OECD 2014

10. Do they do it by rationing doctor visits? No.( per person-yr) OECD 2014

11. Do they ration hospital admission or stays? No. OECD 2014

12. Do they ration length of hospital stays for heart attacks? No. OECD 2014

13. Do they ration coronary bypasses and angioplasty and accept more heart attack deaths? No. Age adjusted We do more but we do not have lower heart attack mortality. OECD 2011

14. High tech rationing vs. preventing end stage organ failure. Less dialysis and transplantation looks like rationing US v Norway have same incidence of early kidney disease but disease going to kidney failure reflects better routine health care. OECD 2011 Per 100,000 J Am Soc Nephrol 2006;17:2275-84.

15. US has Shorter Wait Times for Elective Surgery … OECD Health at a Glance: 2011

16. … but this does not mean more service is provided: Hip Replacements. OECD 2012 Compiled by Commonwealth

17. Hip Replacement and Health Spending Per pers $ Hip Replacement /100,000 OECD 2011: Compiled by Commonwealth

18. Myth: So if other nations do not have lower costs by rationing, the American Consumer must be a Health System Wrecker. The American Consumer is too: Old Obese Smoking Drinking Over financed Armed with Lawyers

19. Myth: The US Health System is handicapped relative to other developed countries because Americans drink & smoke more. OECD 2014

20. Myth: US Health Care Costs so Much Because Americans are Really Old! We are young! United Nations: 2011data

21. Per Capita Health Spending and % Elderly: A young US uniquely out of position to deal with an aging population. % of population over 65 OECD 2012, US Census Dept

22. Myth: Health Care Costs are High Because of ICU Care of Very Old. • Last year of life • 11% USA health $, • 27% Medicare costs (flat x20y) • Health Aff 2001;20:188-95.’ • Age-specific disability is falling. • Hospital costs drop 50% from 65 to 85 years old. • Nursing home, home care, drugs) rise from 65-85 years old, more than offset fall in hospital costs. • Overall no trend in costs vs age at death. • Milbank Q 2007;85:213-57 JAMA 2001;2861349-55.

23. Americans are Heavy (but there is missing data) Obese % Adults BMI > 30 Kg/M2 e.g. 5’9” 200+ pounds OECD 2014 Health care costs increase for people with BMI > 35 (237 lbs). Most of this occurs late in life (US is a young country). Obesity accounts for 2-4% of our excess costs relative to other developed countries. Health Affairs 2003;(May).

24. Myth: US Health Care Costs so Much Because Americans don’t Personally Pay for Health Care Note: Our gov expenditures are comparable to other nations! OECD 2013 Pre ACA

25. Myth: Malpractice Costs are why US Health Care Costs so Much. • Malpractice costs (insurance, awards, court costs) is .5% of health spending. (A third higher than other developed countries.) • Defensive medicine) is 1.9% of health spending. • Health Affairs, 2009;29:1569-77. • National tort reform to reduce suits and awards would reduce direct and indirect (e.g., defensive medicine) costs, reducing health spending 0.5%. • Congressional Budget Office, 2009

26. How do they do it? (or, How can we do better?)

27. Income Inequality, Health Spending, and Life Expectancy OECD 2012 Lower Inequality associated with: Education,  Obesity,  Heart disease,  Stroke,  Unhealthy behaviors High Inequality Med Inequality Low Inequality Soc Sci & Med 2008;66:1719-32.

28. High Primary Care Associated with Lower Health Care Costs USA Primary Care Orientation • 10 Care Oriented (2 high) • Longitudinal • Comprehensive • Coordinated with secondary/tertiary care • Community located Low 10 care orient Per person costs/yr Note: data is not updated Health Policy 2002;60:201-18.

29. Primary Care Orientation Improves Health Outcomes • Many fewer low birth weight babies. • Less bronchitis, emphysema, heart disease asthma, and death from pneumonia mortality. • Fewer productive years lost 0-69. • Higher life expectancy at 40 and 65 years of age. • Milbank Quarterly 2005;83:457-502. • Health Policy 2002;60:201-18.

30. $/person-yr & Asthma Admissions /100,000 (adults age-standardized) OECD 2012

31. % with Unmet Medical Care due to Costs OECD 2011

32. Primary Care Barriers Health Aff 2007;10. w7171-34.

33. Out-of-Pocket Medical Costs/Year(% of adults with chronic disease) 2008 Commonwealth Fund International Health Policy Survey of Sicker Adults.

34. Lessons from Developed Nations • A universal primary care orientation controls costs and improve public outcomes. • Low point of service charges are essential for timely/cost effective primary health care. • Universal enrollment is forced price discipline!

35. Many Models for Universal Health Care • National Health Service-UK • Single tax-based financing to regulated private managed care plans with mandatory enrollment, specified benefits, portability etc- Germany • Multiple, progressive tax based financing for regulated, competing public and private insurers-France. • Single insurer-Canada.

36. Steve Miles, MD Slides available Miles001@umn.edu