Audio Thompson promotes Bush's health care plans (story audio) HHS Secretary Tommy Thompson's remarks Health care becoming a luxury for middle class (Midmorning, 11/26/02) Photos HHS Secretary Tommy Thompson, along with moderator Jonathan Ortmans, at the health care forum Dr. Bill McGuire, the CEO of Minnetonka-based UnitedHealth Group This is the first of several town hall meetings Thompson will hold around the country Resources US. Department of Health and Human Services Respond to this story Talk about this story in the MPR News Forum Submit a commentary Help us cover this story

Thompson promotes Bush's health care plans
by Tom Scheck, Minnesota Public Radio
December 11, 2002

HHS Secretary Tommy Thompson, along with moderator Jonathan Ortmans, at the health care forum. Thompson promoted the Bush administration's plans for health care reform. (MPR Photo/Tom Scheck)

Health and Human Services Secretary Tommy Thompson was in Minnetonka Tuesday, to hold the first of many town hall meetings on the cost of health care. Thompson will use the meetings to promote the Bush administration's policies on lowering the cost of health care. At the Minnesota forum, Thompson talked about creating a system that would allow individuals to buy their own health insurance.

Minnetonka, Minn. — Thompson told the audience of mostly employers and health care providers that consumers would be more selective about their health care choices if they knew how much it costs. Health care costs have been increasing at double-digit rates in the last couple of years, creating problems for employers and consumers. The number of uninsured has also gone up.

"I don't need to remind anyone of the challenges facing our health care system. It is stretched and it is stressed," Thompson says. "Each one of you has a story to tell of some obstacle, problem or frustration that you have encountered. We all know that changes need to be made."

Thompson says the Bush administration is encouraging Congress to pass a number of bills that would give consumers the ability to buy and control their own health insurance. The proposals include creating tax credits for the uninsured who buy health insurance, and allowing small employers to enter into purchasing pools if they have trouble buying health insurance on their own.

	Dr. Bill McGuire, the CEO of Minnetonka-based UnitedHealth Group

Supporters of these proposals argue that simply creating more government entitlement programs to help the uninsured will not solve the overall spending problem.

Dr. Bill McGuire, the CEO of Minnetonka-based UnitedHealth Group, says the country has the best health care in the world but fails to provide adequate coverage for all. He says the nation also spends too much on health care in an unwise manner. McGuire says a consumer-based system, along with traditional health insurance, is a better way for the nation to pay for health care.

"We need individuals to be more responsible and involved in their health care decisions. We need them to be informed. Those are essential ingredients for everyone to make it better," McGuire says. "I don't think what's being proposed is a be-all and end-all. It's simply one piece that says we need accountability."

Other groups told Secretary Thompson they'd like to see the federal government give more people the right to set aside some untaxed income to be put aside each year to pay for health care. Others touted an a la carte-type plan for employees, where employers would provide their workers with a fixed amount of money every year. The employees could spend that money on any type of medical care they choose. But after that money is gone, they have to pay out-of-pocket for any additional expenses until they hit the preset deductible.

	This is the first of several town hall meetings Thompson will hold around the country

Medtronic is offering such a program to its employees. David Ness is the head of health benefits at Medtronic. He says enrollment in their so-called defined contribution plan has steadily increased since it was first introduced in 2001.

"We believe we need to turn this system upside down, and have employees and families move from being receivers to what the plan says to the consumer," says Ness.

Thompson says he's optimistic Congress will pass some of these proposals in the next session. But some analysts say it will be difficult.

"There's going to be a lot of debate this congressional session about these issues. Whether we'll see action is more doubtful," says Larry Levitt, a vice president with the Kaiser Familiy Foundation, an independent organization which examines health care choices.

Levitt says the Bush administration is attempting to make changes to the nation's health care system because it could become a bigger political issue in coming months. He says there are some promising points to the Bush proposals, but says people with chronic illnesses and the elderly could be shortchanged.

"For someone who's young and healthy and don't need to use the health care system much, they'll find their medical savings accounts growing over time because they don't have to use them," says Levitt. "For someone who's got a chronic condition, they may find themselves paying a lot more out of pocket than before. So choice may come with a cost for many people."

Levitt says the debate in Congress will likely be between those who want more consumer choice, and those who'd like the federal government pay a greater amount of the nation's health care bills.

Secretary Thompson will hold his next town hall meeting next week in Jacksonville, Florida, focusing on the topic of medical malpractice insurance.

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