----- Original Message -----From: Peter MarshallSent: Wednesday, October 20, 1999 11:53 AMSubject: Blues Assoc. releasefile:///6%3A22%3A99/Temporary%20Items/nscomm40/tmp/tmp2/edt1.html
Confidentiality Costs Dwarf Costs of Major Health Programs, Report Says;... By Associated Press, 10/19/99 13:20
Confidentiality Costs Dwarf Costs of Major Health Programs, Report Says;
BCBSA Study Finds 5-Year Price Tag Is at Least $43 Billion
WASHINGTON, Oct. 19 /PRNewswire/ -- Blue Cross and Blue Shield Plans "believe in privacy, not paperwork." Requirements in confidentiality proposals will harmfully interfere with communications critical to the doctor- patient relationship, costing doctors, hospitals, insurers, and ultimately consumers billions of dollars per year, according to a new study funded by the Blue Cross and Blue Shield Association (BCBSA). The study estimates the cost of implementing the current confidentiality proposals at $43 billion over five years.
This $43 billion cost is higher than the cost of major health care programs and proposals, including the Children's Health Insurance Program ($24 billion), a Medicare prescription drug benefit ($37 billion), a small business tax credit for low-wage workers ($4.4 billion), and an acceleration of 100 percent tax deductibility for the self-employed ($3 billion).
"Confidentiality proposals currently being developed in Washington would threaten the quality of patient care; create a bureaucratic nightmare for patients, doctors and hospitals; and increase the cost of insurance coverage -- thus increasing the number of uninsured," said Mary Nell Lehnhard, senior vice president in BCBSA's Office of Policy and Representation.
"Think about it: The same government that brought us the tax code is now developing the privacy code," Lehnhard warned.
The study, conducted by the management consulting firm Robert E. Nolan Company Inc., analyzed the impact of common confidentiality provisions on key sectors of the health care industry, including doctors, hospitals and health plans. The major provisions examined in the study include new mandates for authorizations to use patient information; the right to inspect, copy and amend all information; and rules for tracking disclosures of information within and among providers of health care. The final cost of the proposals likely would be even higher than the study estimates because the study authors did not estimate the cost of all provisions and the cost impact on all those affected.
"We believe all subscribers and patients should have the peace of mind that comes with knowing your personal records are secure," Lehnhard said. "We are outraged when breeches of this trust occur. Therefore, this debate is not about if privacy should be assured, but how it is assured."
"While we believe that privacy protection is important, we do not believe it must be unduly complicated as to put quality at risk," added Allan Korn, MD, BCBSA senior vice president for clinical affairs and chief medical officer. "New so-called 'privacy rules' would cause physicians to err on the side of providing too little information as they discuss patient needs. This interference would result in less timely, less accurate and less complete information for doctors to use in patient assessment, and would compromise patient health."
The paperwork would be paralyzing. A new document would have to be created every time an independent physician discussed a patient; every time a physician with hospital privileges obtained EKG or lab data; or every time a physician filed a document. Each of these routine transactions would be included in a tracking report according to Washington's specifications.
"The cost of just some of these rules would result in an additional $43 billion in spending on health care -- more than we spent on the Children's Health Insurance Program, more than the cost of providing prescription drugs for the elderly Medicare population," Lehnhard continued. "But the $43 billion we'll spend implementing overly complex privacy rules will not buy a single new benefit or any additional health care services -- instead, it will be spent simply on paperwork and administrative computer changes."
The specific costs associated with the major categories are:
* $1.9 billion for authorizations;
* $4.0 billion for inspection, copy and amendment;
* $9.1 billion for tracking and disclosure;
* $23.4 billion for infrastructure changes;
* $4.4 billion in added medical cost from reduced medical management.
Lehnhard concluded, "We are calling on Washington today to work with the health care community to develop real protections that do not threaten the timeliness and quality of patient care, and increase the cost of insurance coverage at a time when the number of uninsured continue to rise. Practical, common sense privacy protections -- that's what our customers want, and that's what we want to provide."
BCBSA is a federation of independent, locally based Blue Cross and Blue Shield companies collectively serving more than 73 million -- one in four -- Americans. For more information about BCBSA, visit www.bluecares.com. SOURCE BlueCross BlueShield Association
-0- 10/19/1999
/CONTACT: Bill Pierce of BlueCross BlueShield Association, 202-626-4818, or william.pierce@wro.bcbsa.com/
/Web site: http://www.bluecares.com/ CO: BlueCross BlueShield Association ST: District of Columbia IN: HEA INS SU: BW -- DCTU055 -- 4258 10/19/1999 13:19 EDT http://www.prnewswire.com