Lawmakers learn more about high health care costs

A growing coalition of unions and medical groups lobbied for attention Wednesday as state lawmakers geared up to debate changes to the health care system.

More than $33 billion — a figure twice the size of the annual state budget — was spent on health care in 2006, according to the Office of Insurance Commissioner.

Out of each of those dollars, 30 cents was spent on administrative tasks such as billing and record keeping, said Insurance Commissioner Mike Kreidler, who presented a study on the subject to lawmakers.

"The findings are solid; the recommendations are solid. But the one thing that's missing is benchmarking; what should be the administrative costs?" asked Sen. Karen Keiser, chairwoman of the Senate Health Care Committee.

"I am sorry to tell you there are not any benchmarks I have ever put my hands on," replied Howard Thomas, a consultant who studied administrative costs for the insurance commissioner.

Too much time and money are spent sorting out the billing systems used by doctors, hospitals and insurance companies, he said.

But how much can be saved simply has not been proved. He recommended creating a central agency or group to handle efficiency issues.

Many of the people talking about health care issues Wednesday, including Kreidler, said it could take years to make major changes to a broken system.

Amid the problems, more organizations are lobbying for change.

The Healthy Washington Coalition showed its union roots in a rally on the Insurance Building's steps. Washington State Labor Council lobbyist Robby Stern led the chorus, "What do we want?"

"Quality, affordable health care!" bellowed back a crowd of about 100.

Behind the slogans, however, the coalition has added many of the major health care groups in the state.

Members include the Washington State Medical Association, the Washington State Hospital Association and Group Health, the insurance provider.

"We have built the largest health reform coalition that has ever existed in the state of Washington" Stern said.

Among the group's priorities are prohibiting drug companies from buying the prescription records of doctors for marketing purposes, doubling a student-loan payment program for rural doctors to $6 million, and giving the insurance commissioner more power to control increases in individual health-plan premiums.

"These are things that are doable right now, but they're first steps," said Dr. Robert Crittenden, a member of the coalition from Seattle who came to participate in the rally and lobbying.

Kreidler told the crowd about his proposal to subsidize minimal insurance coverage — for costs of more than $10,000 — to every Washington resident.

"I'd like to take it to a vote of the people, because I think the people will support it," Kreidler said.

The costs of Kreidler's proposal are as yet unknown. The Democratic leaders in the Legislature, who passed a package of health care reforms last year, have pledged to keep new spending down this year, ahead of elections in the fall.

Rep. Eileen Cody, chairwoman of the House Health Care Committee, said Kreidler's proposal won't pass this year, even if he would support a public vote on it.

"I think we'll see something in the future," she said.