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Introduction Health Politics and Policy James A. Morone © 2008 Delmar Cengage Learning. Overview • Health care in America is fundamentally political • Like every other issue, health care tends to follow the public policy process • Costs are a paramount issue in American health politics • Managed care is a revolution without revolutionaries 2 © 2008 Delmar Cengage Learning. Health Care Is Inherently Political • Health care decisions relate to the allocation of scarce resources – The very definition of politics • National health care systems are reflective of a country’s political traditions and norms 3 © 2008 Delmar Cengage Learning. Health Care and the Policy Process I • First step in policy process – Getting item on national political agenda • National Health Insurance (NHI) – First appeared on agenda due to the efforts of early (private) reformers • Returned to agenda as part of FDR’s New Deal 4 © 2008 Delmar Cengage Learning. Health Care and the Policy Process II • In second step of policy process: – Political solutions to a given problem are formulated • Could be “re-heated” policies hatched previously – Garbage can theory of policy making 5 © 2008 Delmar Cengage Learning. Health Care and the Policy Process II • Early proposals to provide “workingman’s insurance” resurrected during New Deal era and after 6 © 2008 Delmar Cengage Learning. Health Care and the Policy Process II • Those opposed to comprehensive (public) provision of benefits offered private schemes – More modest federal financing proposals • Hill-Burton, et. al. 7 © 2008 Delmar Cengage Learning. Health Care and the Policy Process III • Third step of policy process involves making a political decision • National health insurance never enacted – Medicare and Medicaid passed by Congress • Signed into law 1965 8 © 2008 Delmar Cengage Learning. Health Care and the Policy Process IV • In fourth stage of the policy process – Political decision (law) is implemented • Medicaid initially left states with wide latitude 9 © 2008 Delmar Cengage Learning. Health Care and the Policy Process IV • Some, such as New York, used program as means to achieve universal coverage by lowering eligibility requirements • Federal government soon clarified law by setting maximum income levels 10 © 2008 Delmar Cengage Learning. Health Care and the Policy Process V • Fifth stage of policy process involves the administration of a given program • Relates to the day-to-day functioning of government program 11 © 2008 Delmar Cengage Learning. Health Care and the Policy Process VI • This final stage of policy process often not realized – Involves evaluation of a given program 12 © 2008 Delmar Cengage Learning. The Cost of Health Care in America • American health care system is by far the most expensive in the world – Accounting for an ever-burgeoning share of gross domestic product (GDP) – Many of the political issues revolving around health relate to the cost of care 13 © 2008 Delmar Cengage Learning. The Managed Care “Revolution” • Managed care offered as means of reducing growth in health care costs • Featured in failed Clinton health plan – Eventually adopted independently by private sector • After brief stabilization: – Health care costs continue(d) to rise 14 © 2008 Delmar Cengage Learning.