(ATN) Oregon Health-Rationing Plan: AIDS Impact Feared

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(ATN) Oregon Health-Rationing Plan: AIDS Impact Feared

AIDS TREATMENT NEWS #137, October 18, 1991
John S. James


The state of Oregon is now asking the Federal Government's HCFA (Health Care Financing Administration) for permission (in the form of waivers of existing Federal laws) to replace its Medicaid plan with the "Oregon Medicaid Demonstration Project" for explicit rationing of health care. The goal of the plan is to list medical services in order of priority, using public input from hearings and phone surveys as well as input from ethicists and medical professionals. Then the legislature will use what funds it wants to spend to pay for the highest priority services, working down the list until the funds run out. Lower priority services will not be covered.

If Oregon is allowed to adopt this health-care rationing plan, other states are "waiting in line" and may essentially copy it for their own use. This Oregon plan could also become a national model, perhaps adopted as a Republican approach to health-care reform.

Because AIDS and other organizations may have only until mid November to bring their concerns to HCFA, we are publishing this short article now, even though we received the following information shortly before deadline and could not do an in-depth analysis.

The main argument in favor of the Oregon plan is that health-care rationing decisions are being made in any case, in that those who cannot afford health care and do not have insurance are denied access. Oregon wants to replace this haphazard health rationing with a rational system drawn up by health-care experts, ethicists, and the public. "Excluded, for example, are medical treatment for infertility, medical treatment for a viral sore throat, routine screening (e.g., colon cancer) for adults not otherwise at risk, and aggressive treatment for the end-stages of AIDS and cancers and for newborns weighing less than 500 grams and having less than 23 weeks gestation" (quoted from Oregon's application to HCFA for waivers to allow the state to implement the plan). Advocates say that the plan will cover all the poor, and provide them with basic benefits through managed care at reasonable rates.

Here are some of the concerns we have heard from opponents of the plan:

* While early treatment of HIV infection is given a fairly high priority, as is treatment of opportunistic infections when the treatment is not "experimental," "end stage" HIV disease (which is never defined) is rated very low and will not be funded, except for "comfort care" such as pain management.

"Diagnosis -- End Stage HIV Disease; treatment -- Medical Therapy...represents those cases where there is very little likelihood that the patient's quality of life will be at all improved by any known aggressive treatment for HIV disease. In these cases, comfort care will be offered as a replacement for ineffective or experimental treatments which hold little promise of stopping the disease (quoted from an explanatory attachment to the Oregon plan, emphasis in original).

Oregon patient advocates have been unable to get State officials to give definitions of "end-stage HIV disease," "end- stage AIDS," or "end-stages of AIDS," all used interchangeably throughout the Oregon Medicaid Demonstration Project. This vagueness could be reserving the right to defund most AIDS care, especially since many treatments for opportunistic infections are "experimental." Advocates are worried because of the history of the plan; early drafts did attempt to defund AIDS by providing only "comfort care" unless there was judged to be a 10 percent chance of survival in five years.

* Another concern is that well-organized groups such as the elderly can lobby for better treatment, whereas other groups such as infants cannot. Senator Albert Gore (Democrat, Tennessee), a leading opponent of the Oregon plan, commented on a TV documentary, "The Health Quarterly with Roger Mudd: The Oregon Experiment," that "They've picked out only poor women and poor children, and they say: 'You've got to bear the full brunt of this entire rationing scheme.'"

The Children's Defense Fund, in a September 10, 1991 memorandum, concluded that "rather than adding women and children to the Medicaid program and improving its performance in the areas of maternal and child health, the waivers, if granted {by HCFA}, would not only diminish coverage for the women and children now enrolled in Medicaid but could result in the denial or termination of any benefits whatsoever for thousands of children and women currently eligible for assistance (emphasis in original).

* Mike Isbel of Lambda Legal Defense is concerned with long- term implications:

"The overall purpose of the plan has been to put resources into early care, and not pay for end-stage care, which is often expensive. But it has always been understood that a few who are very sick consume most of the health-care resources. The Oregon plan -- likely to be copied by other states and perhaps proposed nationally -- is an attempt to peel off the bad risks.

"Such attempts are based on the myth that the United States does not have the money to pay for health care for everyone. But we pay a much larger percentage of our gross national product for health care than other industrialized nations, which have health plans covering everyone. The problem is inefficiency and how resources are allocated, not lack of resources. For example, administrative costs consume twice as large a share of healthcare expenditures in the United States as they do in Canada, because of the hodgepodge of U. S. providers, each with its own rules designed to shift the cost burden to someone else. To reduce benefits instead of correcting such inefficiencies is completely disingenuous.

"The Oregon plan is frightening because it could become a national pattern for conservative health-care 'reform'. We as a nation cannot live with a health-care system which takes care of the healthy and abandons those who become seriously ill."

For more information

For more information on the concerns about the Oregon Medicaid Demonstration Project, and how your organization can become involved, contact:

* Lambda Legal Defense, attn: Mike Isbel, 666 Broadway, 12th Floor, New York, NY 10012, 212/995-8585.

* AIDS Action Council, attn: Laura Fogt, 2033 M Street NW, #802, Washington, DC 20036, 202/293-2886 ext. 21.

* Vanguard, P. O. Box 231261, Portland, Oregon 97223, 503/245-6799.


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