At a press conference today, the World Health Organization announced the first full-blown flu pandemic in 41 years. WHO Director-General Margaret Chan declared the pandemic “globally as being moderate in severity” and a spokesman stated that the term pandemic refers to the “measure of the spread of the virus, not the severity of the virus.” Still however, the pandemic is not to be taken lightly. Chan noted: “This virus is entirely new and it is spreading easily. As of today, nearly 30,000 confirmed cases have been reported from 74 countries. With few exceptions, countries with large numbers of cases have good surveillance and procedures in place. Further spread is considered inevitable.” Surprisingly, the virus affect mostly younger people between the ages of 30 and 50. Chan stated: “This pattern is significantly different from other epidemics of seasonal flu, in which most deaths are in frail, elderly people. Most severe cases have been in people with underlying chronic conditions, such as asthma, cardiovascular disease, diabetes, auto-immune disorders and obesity.” The pandemic is generally not considered life threatening as Chan told the audience “he overwhelming majority of patients experience mild symptoms and make a rapid and full recovery. Worldwide, the number of deaths is small. Every death is tragic, and we have to brace for more.” In wealthy countries, especially, the pandemic is not considered very threatening at all to its citizens.
The issue of course lies in less wealthy countries, where health standards and regulations are not nearly as structured and extensive. Chan made it clear in the conference that all countries need to come together and help each other through this global issue. Chan noted: “Calling a pandemic is also a signal to the international community: This is a time where the world’s countries, rich or poor, big or small, must come together to make sure that no countries, because of poor resources, should be left behind without help.” Mexico has had many surprising and unpredictable outbreaks of the virus, but Chan told reporters that Mexico is coming to a “steady state.” They are only seeing “sporadic cases and small outbreaks. This virus is very unpredictable. This doesn’t mean Mexico should let down its guard. The virus can come back in a second wave.” While the disease is not a severe threat to wealthy countries like the United States, it is the duty of every country to do what it can to help prevent this disease from becoming a significant global problem.

“Providing health care to more than ten million children through the Children’s Health Insurance Program will serve as a down payment on my commitment to ensure that every American has access to quality, affordable health care,” said President Barack Obama. He also stated that “As the worsening economy causes families to lose their jobs and health insurance, it is vital that we redouble our efforts to ensure that every child in America has access to affordable health care. That is why I am pleased that the Senate has joined the House in passing bipartisan legislation to provide health insurance to children whose families have been hurt most by this downturn.”

The Senate passing of legislation that will provide government-sponsored health care to approximately 4 million uninsured children is the start of Obama’s health care overhaul. The bill was approved yesterday 66 to 32 and will insure children in families that earn too much to qualify for Medicaid but not enough to afford private health insurance, increasing the amount of children who will be covered from 7 million to 4 million. The joint state-federal program will cost an additional $32.8 billion on top of the $25 billion over the next 4 ½ years. The expansion would be paid for by raising the cigarette tax from 39 cents a pack to $1.

“Low-income, uninsured kids all across America have been waiting for Congress to fulfill the promise of the Children’s Health Insurance Program for them,” said Senate Finance Committee Chairman Max Baucus. The House passed a nearly identical bill a few weeks ago with a vote of 289 to 139.

Similar legislation had been vetoed twice by former President George W. Bush. On the other hand, President Obama is eager to sign the legislation to begin the coverage that will hopefully lead to coverage for all Americans.

Along with the plans to build up clean-energy industries and boost security at U.S. ports, President Barack Obama is also promoting a plan to expand health insurance coverage in his stimulus package. His stimulus package is a part of the broader effort to pull the economy out of the recession it has been in the past year.

The report released on Saturday outlined the priorities for the two-year stimulus package which included health insurance coverage to the 8.5 million people who lost their jobs this past year. The $825 billion package of spending and tax cuts is a two-year plan that house Democrats have already begun working on.

Senate Version of Stimulus Package

The senate version of the stimulus package includes $149 billion in funds for health care. The package includes a provision that would extend Medicaid to families who have become ineligible because their incomes have increased at a cost of $1.3 billion over the next 10 years. The package also includes federal subsidies for 65% of the health insurance premiums under COBRA for 9months.

Another inclusion in the package is approximately $23 billion for health care information technology, whereas the House version is about $3 billion less at $20 billion.

House Version of Stimulus Package

The house version would allow states to expand their Medicaid programs to low-income, recently unemployed workers at a cost of approximately $9 billion through 2010. The house version of the package includes federal subsidies for 65% of the health insurance premiums under COBRA for one year. The house would also include in their version of the package, a provision that would allow recently unemployed workers ages 55 and older or those with at least 10 years of tenure at their jobs to continue to receive COBRA. They will receive COBRA until they find a job or reach 65 and are eligible for Medicare. The senate version does not include this provision.

“If we do not act boldly and swiftly, a bad situation could become dramatically worse,” Obama said on Saturday.

“On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord,” Barack Obama said today after taking the oath of office as the nation’s 44^th president.

Over 2 million people came to DC to see the swearing in of this country’s first African American president. It is a day that will go down in history. His speech captured many peoples’ hearts and helped us to believe that change for our country is coming. He acknowledged all of the real challenges we face today including the state of our economy that calls for action to create new jobs, and to lay a new foundation for growth.  He then goes on to speak about the restoration of science that needs to take place as well as raising health care’s quality and lower its cost.

Health care is a huge priority for Obama and his cabinet. He has a three part plan for reforming our nation’s health care system.

The first part is to give all Americans access to affordable health coverage. This new health plan would be a public health insurance plan similar to that of federal employees. Regardless of any citizen’s health status, it would be available to everyone at an affordable premium.  In addition to a public health plan, there would be a service (National Health Insurance Exchange) that would help Americans find private health insurance plans. Also, there would be an individual mandate for children.

The second part to Obama’s health care system is the implementation of reforms to help lower health costs and improve health care quality. Obama wants to provide federal funding assistance to business with high-risk employees. He also believes that health care spending can be reduced by improving health care quality in cases such as preventing medical errors, implementing disease management programs, reforming medical malpractice, and promoting health information technology.

The third part is to promote health and wellness. Obama supports increasing federal spending for efforts to address childhood obesity, education for healthcare professionals, and individual and community incentives to help Americans make healthful choices.

With a new president sworn into office today, we should expect a positive change for our country.

But were too afraid to ask!

According to Lesson 16 from CNN’s Money 101, there are a few things to know about health insurance:

A lot of people who think they are healthy may believe that having no insurance saves them a lot more money than having insurance. But what if there’s a catastrophe? You may get into a car accident and get hurt or get hurt on your yearly skiing trip. You may be a healthy person but no one can avoid accidents or unexpected illnesses. A major illness can even push you to bankruptcy.

Make sure you compare plans. Benefits vary from plan to plan and comparing plans can help you find the plan that fits your specific needs.  Also know that a low premium doesn’t always mean cheaper health coverage. A low premium usually means a higher deductible. This means that you must reach this deductible before the insurance starts paying.

In the event you lose your job, COBRA can protect you from losing your health coverage. COBRA usually has higher premium costs but expensive health insurance is better than none at all. COBRA fills the gap while you are looking for an individual plan, getting on your spouse’s insurance, or finding another job.

Indemnity plans v. Managed Care plans

Indemnity plans allow you to go to any primary care doctor, specialist or hospital. You or your employer pays the premium and there is a deductible that needs to be met before insurance kicks in. After your deductible is met, your health plan pays for a percentage of your health care expenses, usually 80%.  Indemnity plans offer the best choice of a provider but usually have more expensive premiums, deductibles, and coinsurance.

Managed Care plans consist of Health Maintenance Organizations (HMO), Preferred Provider Organization (PPO), and Point of Service plans (POS). HMOs have the least expensive monthly premiums but offer the least choice of a provider.  HMOs manage both the financing and delivery of a broad range of healthcare services. HMOs focus on prevention and primary care. You usually pay a small copayment for each doctor’s visit instead of a deductible and coinsurance.

PPOs allow you to go to out of network providers but you receive better benefits if you stay in network. You usually have direct access to specialists but some PPO plans require you to obtain a referral from your primary care physician (PCP) before seeing a specialist.

POS plans are a combination between HMOs and PPOs. You can choose how to access the plan each time you need treatment. You can stay in network or go out of network but will have to pay deductible and coinsurance charges if you choose to go outside the HMO network.

To make an informed decision, compare many plans before diving into a health plan that looks good. Check out providers; compare deductibles and premiums, and the benefits associated with the health plan.  A good health insurance policy covers hospital expenses, surgical expenses, and physician’s expenses. Some additional benefits are prescription drugs, preventive care, vision care, and maternity care. The best health insurance plan gives you flexibility at a low cost. Make sure you know the health services that you need because you want your plan to cover the health services you need.

Mercer conducted a survey, the National Survey of Employer-Sponsored Health Plans, which showed that the median deductible required by employers for individual coverage in PPO health plans jumped to $1,000 in 2008. Last year’s median deductible was $500. Since PPOs are the most popular type of health plan coverage with 69% enrollees of all covered employees, it is hard to believe that in just 8 years deductibles have risen from $250 to $1,000. The survey includes private and public employers with 10 or more employees. PPO deductibles remain lower for larger employers, with a median deductible at about $300.

Some findings from the survey include:

§  Employers held health benefit cost increases to about 6 percent in 2008 for a fourth straight year – but that has meant shifting more cost to employees

§  Consumer-directed health plans are offered by 20 percent of large employers, up sharply from 14 percent last year

§  More large employers add incentives to encourage health-conscious behavior
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§  Employers shed retiree medical plans in 2008, but with health reform looming there was no further erosion of active employee plans

 But not only are health insurance deductibles rising, but so are premiums. For coverage that is getting meager, premiums have rose 5% in the last year. Premiums for family coverage have increased to $12,680 and premiums for single coverage have increased to $4,704. Though the 5% increase is fairly low, experts say it is not going to last and it can be considered high when deductibles are increasing as well. Health insurance premiums have shot up 5x faster than workers’ wages since 2000. Since 2000, there has been a 78% rise in premiums from $6,672 in 2000 and $12,680 in 2008.

The rise in health care costs has put a strain on family budgets. These higher health care costs and the decline in the economy have forced families to go without needed prescriptions, preventive care, and tests and doctors’ visits.

Julia Eisman at Families USA‘s Stand Up for Health Care blog writes:

“The economic downturn coupled with ever-rising health care costs has had serious consequences for many of us, but unlike the financial sector, working Americans can’t expect a government bailout. Instead, more individuals are incurring oppressive medical debt (more than half of bankruptcies are now due, at least in part, to problems with medical costs) and many Americans have joined the ranks of the underinsured and uninsured.”

So with Obama’s win, what does that mean for healthcare in the upcoming years?

Experts say that because of the financial crisis we are facing today, health care changes are more likely to be phased in over time. But over time we are likely to see an expansion on existing private and public program with help of federal subsidies and mandates. Obama has also repeadly states that the reforms he will impose will lower a family’s health insurance premiums by about $2,500 a year.

These reforms include:

• Requiring employers, except small businesses, to provide health insurance to their employees or contribute to the cost.
• Requiring that all children have health insurance.
• Expanding Medicaid and the State Children’s Health Insurance Program (SCHIP).
• Creating a National Health Insurance Exchange to pool risk and give people the choice of competing private or public health plans.

Karen Davis, President of the Health Policy and Research Group Commonwealth Fund, states that “We can’t afford to stay on the path we are on with regard to total health spending,” she says. “Employers can’t afford it, the government can’t afford it, and individuals can’t afford it. It is just not sustainable.”