Recently in Healthcare Reform Category

I just attended the 10th annual National PALS event. PALS is the Patient Advocacy Leaders Summit, established by GSK in 2002. Over the past decade, PALS has built a community of patient advocates who come together both nationally and regionally to address current issues impacting America's health. PALS events address the needs of those who advocate for access to healthcare. 

This summit, entitled The Advocate's Role in Implementing Healthcare Reform in an Evolving Environment, brought together more than 100 advocates representing 84 different organizations. What an exciting day, to be alongside all these leading advocates who came to hear national experts talk about healthcare reform in the current political and economic environment. The presenters spoke about implications of the election results, federal budget processes, healthcare reform, and Medicare and Medicaid expansion. They talked about how information technology can drive improvements in quality, safety, and efficiency. And, importantly, they identified opportunities where we as advocates could make a difference. This event was incredibly timely, and it helped us recognize that we have opportunities to influence the changing environment. 

Attendees at the 10th Annual National Patient Advocacy Leaders Summit

As chair of the PALS Advisory Board it's a real an honor to work with health advocates from across the country representing different therapeutic areas who come together as a learning community. PALS gives me the opportunity to meet people with common interests, but who think about it from their own therapeutic perspective. PALS breaks down these silos to find common ground. We get together to share best practices, and learn from one another--how to legislate, how to use social media, how to educate constituents who don't know all there is to know about health reform and in particular the Affordable Care Act. As a direct result of PALS, coalitions have formed to advocate collectively for improved access to healthcare

I am thankful for this decade of support from GSK. These events involve thousands of advocates and ultimately impact public policy for the benefit of patients.

What comes to mind when you think about what makes a community "healthy"?

I'm pleased to announce that GSK is working with The Atlantic to bring together national and local thought leaders in three cities--starting with Philadelphia--to share their perspectives on building healthier communities. It kicks off September 24 at 3:00 PM (EDT). I hope you can make some time to watch it live.

I moved to Philadelphia a few years ago. What a great city! It has a history of medical innovation and an impressive collection of world-class medical institutions, including the nation's oldest hospital. Yet we have the third lowest life expectancy among America's big cities and the worst health outcomes in Pennsylvania. What are we doing wrong--or what aren't we doing at all?

With The Atlantic, our goal is to identify innovative, yet practical ways to work with communities and stakeholders--including health organizations, professionals, elected officials, advocates and citizens--to explore new approaches to improving the public's health.

Some of the region's top minds in the fields of medicine, public health, academia, government, business and philanthropy will examine the broader factors that influence health in Philadelphia and what is being done today in communities across the city to successfully overcome barriers and challenges.

After Philadelphia, we will travel to St. Louis and a third city, still to be identified, to continue the conversation. Be sure to like GSK on Facebook and follow @GSKUS on Twitter--and use #HealthyCommunity to weigh in--for updates from the events.

You can also learn more in an Op Ed I co-wrote with Philadelphia's Mayor Michael Nutter, and on our YouTube channel--in English and Spanish.

The constant news stories about our sluggish economy, high rate of unemployment and federal budget deficit are enough to make optimists start seeing the world as half empty. Yet amidst all this negative news, some things are actually working well.

Take Medicare Part D. According to the Congressional Budget Office, the program costs 41 percent less than originally projected and several recent studies show that the program is increasing access to medicines while lowering healthcare costs and improving health. You can watch a great new video on the success of Medicare Part D and the following studies provide even more excellent data.

·         A study published in the Journal of the American Medical Association (JAMA) reports that each year Part D prescription drug coverage saves Medicare about $1,200 in lower hospital, nursing home and other medical for each senior who previously lacked comprehensive prescription drug coverage. According to other experts, this equals about $12 billion per year in savings across Medicare.

·         A study by Harvard Medical School researchers published in Health Services Research found that in the 23 states for which the researchers had data, hospitalization rates declined by 4.1 percent, or by 42,000 annual admissions, across 8 conditions that are sensitive to medication adherence such as diabetes, COPD, asthma and acute myocardial infarction (AMI). Researchers concluded that access to prescription coverage under Medicare Part D has had positive clinical benefits, improving beneficiaries' underlying health, and reducing their need for hospital care.

Lawmakers in DC continue to advocate for mandated rebates in Part D as a way to fix our nation's budget deficit. As I noted in an earlier blog post, if the proposal is adopted, premiums are expected to rise for beneficiaries and thousands of high-quality jobs could be lost. Additionally, mandating rebates in Part D would hamper the biopharmaceutical industry's ability to continue investing dollars in the research and development of life-saving and -improving medicines and vaccines.

Medicare cost savings are just one bright spot in our economy.  Research and development of new medicines and vaccines continues to be a collaborative effort between the government and the pharmaceutical industry. In 2009, the private sector invested $65.3B. Another $30.5B was spent by the National Institutes of Health. Cultivating and maintaining an environment in the US that encourages research and development will allow us to remain a leader in medical innovation, and help our nation move forward.

Medicare Part D's competitive, market-based structure is working well--and should be preserved.

Today marks the one year anniversary of the signing of the Patient Protection and Affordable Care Act, more commonly called the Affordable Care Act (ACA) or just simply "healthcare reform."  The legislative path to last year's signing ceremony was perhaps the most politically divisive in decades. As the new law celebrates its first birthday, debate in DC and in state Capitols about the law's merits and flaws is no less acrimonious.

If the political back and forth leaves you with more questions than answers, you are not alone. The Kaiser Family Foundation has been tracking public perception of the law for the last year, and more than half--53% of those surveyed--remain confused about the law. This is only a two percentage point improvement from where people were a year ago. This is understandable because many of the law's provisions haven't taken effect yet, 2014 is when we expect to see major changes, but we do know that some Americans have already benefited from the law.

The Department of Health and Human Services posted information today on HealthCare.gov outlining some of what has happened in the last year. For example, seniors participating in Medicare Part D whose prescriptions fell into the coverage gap (or "doughnut hole") received a $250 rebate check in 2010. Beginning in January of this year, they started receiving a 50% discount from manufactures on all branded medications in the coverage gap. The Centers for Medicare and Medicaid Services published an excellent document called Closing the Coverage Gap that helps explain this new benefit.

Although the biopharmaceutical industry has already begun to face new financial challenges from the ACA's provisions requiring expanded discounts, rebates and fees, the ACA also includes a number of positive provisions that support the tenets of the Triple Solution for a Healthier America.  These provisions, promoting prevention, intervention, and innovation could help move our system in a positive direction in the long-term by reducing overall costs while improving patient outcomes. For example, effective since 2010, all new health plans must provide coverage without cost-sharing for preventive services recommended by the U.S. Preventive Services Task Force such as immunizations and well-child visits. U.S. Secretary for Health and Human Services Kathleen Sebelius and Assistant Secretary for Health Howard Kohn nicely detailed all the ACA's prevention provisions in a recent New England Journal of Medicine article.  

At this one year anniversary, it's still very early in the life of the ACA and a long road of implementation is ahead. Change of any kind always comes with some upsides and some downsides. Hopefully in the long-run the upsides will prevail and the law will be successful in increasing access to high-quality, affordable health care coverage and services for millions of Americans. Stay tuned.

Today, GSK's Jack Bailey, a senior VP, participated in a panel discussion on healthcare reform at the 17^th annual Wharton Health Care Business Conference held in Philadelphia.  This year's conference, entitled Leadership in an Evolving Global Market, explored the continuing evolution of health care and the leadership needed in both domestic and international markets.

The panel discussion, called "Health  Policy: Opportunities and Challenges," centered on these key questions:  

• What changes do you anticipate in your business in the next ~5 years as a result of healthcare reform?  What aspects of healthcare reform will create challenges or opportunities for your industry?
• What actions are you taking to prepare for these changes?  What other stakeholders will influence your strategy?  What effect will healthcare reform have on innovation?
• How should healthcare reform be implemented?  How can the cost controls included in the legislation be implemented in a way that will be meaningful?  How should "quality" be defined (what is the process through which it should be defined)?

Jack joined a prestigious panel from across the healthcare industry. He provided the audience with insight on how the pharmaceutical industry as a whole has been impacted by healthcare reform and the three key tools critical to shaping the future of healthcare delivery and payment:

1.     health information technology

2.     comparative effectiveness research, and

3.     quality standards.

"If used well, these tools will help coordinate care among providers and move us to a true "healthcare system," where delivery and payment will be based on quality of outcomes, not on quantity of services provided," stated Jack.

Jack also discussed how GSK is transforming its business model to fundamentally change the way we market and sell our medicines and vaccines in order to deliver the value our customers demand.   And how these changes are affecting how GSK approaches research & development and marketing & sales.

The annual Wharton Health Care Business Conference is a leading health care business forum for industry professionals, academics, and students. The two-day event typically attracts over 700 attendees from across the nation, and features distinguished speakers, dynamic panel discussions, special events, and various networking opportunities.

This week, roughly 1,000 biotech and pharmaceutical industry executives, entrepreneurs, research leaders, venture capitalists, and policy makers gathered at the Raleigh Convention Center to look at trends and opportunities in biomedical research and development. The event was a conference hosted by the Council for Entrepreneurial Development (CED), the North Carolina Biotechnology Center, and the North Carolina Biosciences Organization (NCBIO).

North Carolina ranks as the number three state in the nation for biotechnology and Research Triangle Park, NC, is the location for GSK's US headquarters.

The event opened with keynote addresses by North Carolina Governor, Beverly Perdue, and GSK's president of North America Pharmaceuticals, Deirdre Connelly.

Governor Perdue described the critical role the biotechnology industry has played in health, economic development, job creation, and support for education in the state of North Carolina. She stressed that North Carolina has been relentless in working to attract the biotechnology and life sciences industry to the state because of the benefits it brings to the state's economy and quality of life. She said her administration will continue to work to grow the industry in the state by competing nationally and globally to attract more bio investment in North Carolina.

In her talk, Deirdre Connelly outlined three major challenges facing the biopharmaceutical industry--healthcare reform, the changing regulatory environment, and waning research productivity--and described the steps GSK is taking to meet these challenges. Deirdre emphasized that in meeting all three challenges, GSK is working to ensure that it contributes innovative treatments that improve the quality of health outcomes and reduce the long-term costs of care.

To address the challenges facing the biopharmaceutical and biotechnology industries today, she encouraged those at the conference to show the same foresight, intelligence and resolve as those who founded the Research Triangle Park in 1959 and the NC Biotechnology Center did 25 years ago.  Deirdre concluded by noting that a concerted effort by all stakeholders to address today's challenges will make a difference in healthcare and deliver better health to the patients.

The speech is available here.

On Thursday this week, GSK is pleased to support an important discussion on health information technology, or what has become known as HIT. It has been two years since the HITECH Act was passed, authorizing $27 billion in new funding for HIT. The incentive program for physicians and hospitals begins this year and runs through 2015, paying up to $63,000 to each provider who implements the program and meets quality measures. GSK believes that HIT will play an essential role in changing the current state of the US healthcare system--helping to enhance quality and lower overall healthcare costs.

The event, organized by the American Journal of Managed Care (AJMC), is called "The Future of Healthcare Innovations and Health Information Technology." It will be held at the National Press Club in Washington, DC, pulling together healthcare stakeholders including policymakers, payers, providers, health IT professionals, health services researchers, patients, and medical educators, along with GSK, to discuss how HIT can best help improve care while lowering costs.

From the AJMC press release:

"For years, experts have speculated on the opportunities for broad adoption of HIT to improve healthcare delivery," said Dr. Jain, who in addition to co-hosting the event was the guest editor of the AJMC HIT special issue. "With passage of the HITECH Act, this speculation has grown into an ongoing, multi-sector, industry wide transformation. This event will shed light on this transformation and give additional direction to innovators who seek to participate in it."

In addition to sponsoring the live event, GSK sponsored a special issue of the AJMC, which can be viewed online at http://www.ajmc.com/supplement/managed-care/2010/AJMC_10dec_HIT.

This morning, President Obama signed the second part of the historic health reform package. This signing ceremony received far less fanfare than the ceremony he held last week, but it was no less important. Today's ceremony brings a year and half of political debate to a close and marks a turning point for healthcare in our country.

Now, you're probably wondering when you will start to see the benefits of this new law. The Kaiser Family Foundation has an excellent summary showing when each of the major provisions is scheduled to kick-in. The American Medical Association also has a good summary for physicians outlining what changes they can expect to see in their practices.

Certainly, implementing such a large piece of legislation will take time, so moving into this next phase of transforming our health system will require patience as regulators sort out all the details. GSK and other members of the pharmaceutical industry continue to be guided by a belief that all Americans should have access to high-quality, affordable health care coverage and services, and we believe the health reform legislation that passed this week is a step in the right direction. The legislation is not perfect, but we are committed to supporting its implementation so that it reflects the best interests of patients while preserving an environment that values medical innovation. 

This week's vote in the House of Representatives was nothing short of historic. It brought us one step closer to comprehensive health reform that will improve access to high-quality, affordable health care coverage and services. With the President ready to sign the Senate health reform bill into law, more than a year of debate is starting to draw to a close. But, before the ink is dry and other legislative issues rise to dominate the news, there is more work to do on healthcare.

This week, the Senate will take up debate on the reconciliation bill. Senate Majority Leader Harry Reid (D-NV) has promised that the reconciliation package will pass by the end of next week. While it's not a slam-dunk, the prospects are looking good for the reconciliation package to also make it to Obama's desk.

Together, the Senate health reform bill and the reconciliation package offer many positive provisions that improve access and promote wellness for all Americans. As the Biotechnology Industry Organization (Bio) outlined well in their health reform statement, the bills could also have a very positive effect on medical innovation. The current health reform bills aren't a panacea, and challenges will still remain for our industry and America's health system, particularly as the details of the legislation start to be implemented.  But overall, the vote was a very positive step forward towards comprehensive reform.

Yesterday's seven hour bipartisan extravaganza televised live on CSPAN gave viewers the opportunity to see first-hand why health reform has been stalled in Congress since January.  Despite President Obama's efforts to highlight areas where Democrats and Republicans agree, the party-line talking points triumphed for most of the day.

Through all the talking, those of us who still believe reform needs to be comprehensive and not just about insurance coverage found small glimmers of hope. Senator Tom Coburn (R-OK), a physician, spoke most eloquently of the need to better coordinate care and tackle chronic diseases by focusing on prevention. These ideas are central to controlling healthcare costs. Chronic diseases account for three-quarters of healthcare spending. Congress and the Administration must make every attempt to enact legislation that--at a minimum--includes prevention and wellness provisions to help drive down costs for chronic disease, thus driving down costs in the entire system.  No matter which side of the aisle holds a majority, this is some common ground where we all can agree.

Read GSK's full position on healthcare reform