Panelists agreed Health-Care Reform Needed: But experts say poor choices will add to the woes Nation

HICKORY -- The U.S. Chamber of Commerce agrees with all eight of President Barack Obama's general principles for health-care reform, but fears that proposed legislation could have dire consequences if passed, said a lobbyist for the organization.

"Health-care reform is wanted and needed, but we have some major concerns," said Katie Hays.

"In the case of health-care reform, the devil really is in the details."

Hays, the U.S. Chamber's lead lobbyist on health-care reform, was keynote speaker at a summit presented by the Catawba County Chamber of Commerce.

The event, held Wednesday afternoon at Lenoir-Rhyne University, featured a panel discussion by representatives of Hickory's two hospitals, a medical practice, an insurance brokerage firm and a preferred-provider organization owned by self-insured employers.

Also speaking briefly at the two-hour event was U.S. Rep. Patrick McHenry.

Hays said the business community supports efforts to reduce the costs of health care and to increase public access to quality health-care services, but is equally committed to opposing proposals that will threaten businesses with increased costs, taxes, fees, mandates and regulatory burdens.

She said the U.S. Chamber believes it is important to implement new wellness, prevention and disease-management programs; implement health information technology programs; and create a vibrant private insurance market for small businesses and individuals.

Hays said the U.S. Chamber also believes medical liability reform should be a part of the reform discussion.

She said that among the U.S. Chamber's chief concerns are:

Employer mandate. Hays said the organization adamantly opposes the "pay-or-play" proposal that requires businesses either to provide some level of health insurance benefits or pay a penalty to the government. The organization also opposes the federal government designing a "qualified health plan" that will require all employers to offer a "one-size-fits-all" plan, she said.

Public plan. Hays said a new government-run plan would be an unfair competitor because it could drive down reimbursements to doctors and hospitals, shifting costs to the private sector. Consumers would then flock to the public plan because its premiums would be cheaper, and ultimately no private plans would remain, she said.

Paying for reform. Financing health-care reform, the cost of which is estimated at $1 trillion to $1.5 trillion, will be the toughest challenge Congress faces, Hays said. She said a proposed "surtax" on the wealthiest would directly affect small-business owners, who pay their business taxes at the personal rate. Taxing health benefits would be a significant tax policy change for all employees and would have ramifications to employers through Federal Insurance Contributions Act (FICA) and other taxes, she said.

Hays said the U.S. Chamber believes Obama will sign some sort of health-care reform bill this year, and urged business people to voice their concerns about proposed legislation to their lawmakers.

Other panelists agreed U.S. health-care reform is needed, but warned that wrong moves could make matters worse.

Michael Blackburn, chief executive of Frye Regional Medical Center, said more government intervention -- including driving down reimbursements -- could cause hospitals in some small communities to fail or require a government bailout.

Catawba Valley Medical Center CEO Tony Rose agreed, noting many hospitals in North Carolina already operate in the red.

Cuts would put those hospitals -- and the communities in which they operate -- in "a world of hurt," Rose said.

Several panelists emphasized the need for wellness, prevention and disease-management programs.

"If wellness and prevention are not a part of reform, we'll never succeed," Rose said.

"We in the United States have the best sick care in the world, but we do little to keep you well.

"We have to start with the youngest among us and promote healthy lifestyles. We have to realize that we're talking about a three- or four-generation solution."

Cathie Pettit of DirectNet, a Hickory-based preferred provider organization, said wellness and prevention programs are critical not only to the Greater Hickory Metro's existing companies, but to businesses that consider locating here.

Although business people need to stay focused on the debate in Washington, they must also remember that they can start working together today on a brighter tomorrow, Pettit said.

Matt McQuide of Benefit Controls Companies, an insurance brokerage firm, said focusing on wellness and prevention is the only long-term solution to managing medical costs.

"None of it (health-care reform) will matter if we don't take better care of ourselves," McQuide said.

"The number one thing you can do as an employer is take personal responsibility. Talk to your employees about health and wellness."

Dr. Caroll Koscheski, a Hickory gastroenterologist, questioned the need for more government-imposed practice guidelines and stressed the need for medical liability reform.

The government setting up practice guidelines will cause physicians to lose flexibility in treating patients, Koscheski said.

"And adding more practice guidelines without meaningful tort reform is not going to get us anywhere," he said.