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HHS Secretary Leavitt urges state–federal partnership, touts Medicare Part D enrollment and cost changes
Summary
Health and Human Services Secretary Michael O. Leavitt told the Utah Senate states should lead on organizing private-market solutions to expand affordable coverage, saying Medicare Part D enrollment is high and average monthly costs have fallen from an earlier $37 estimate to about $22.
Secretary of Health and Human Services Michael O. Leavitt addressed the Utah Senate in a committee of the whole, urging state leaders to work with the federal government to organize private-market solutions that increase competition and lower costs.
Leavitt, who said he is traveling to meet governors at the president's request, warned against a single federal-run insurance model and argued that state-level partnerships can preserve consumer choice while expanding access. "If that were to occur, it would simply mean fewer choices, longer waiting lines and higher taxes," Leavitt said, contrasting that with a marketplace organized to produce better information and competition.
On Medicare Part D, Leavitt reported enrollment and satisfaction numbers and cited a drop in expected average monthly costs. "We now have 90 percent of those who are eligible who have a prescription drug plan," he said, and added that independent evaluators show "75 to 80 percent of all those who have them are happy with them." He said the program's initial $37-per-month estimate had fallen to about $22 on average.
Leavitt used a personal example to illustrate price variation in health care and urged development of standard "episodes of care" and better quality metrics so consumers can compare value between providers. "If I did and found out that they were both the same, I'd take the $3,000 one in a heartbeat if they were the same quality," he said, arguing for value-based competition.
Senators asked Leavitt to assess Part D and to clarify federal proposals to expand the Children's Health Insurance Program (CHIP). Leavitt said CHIP reauthorization could become a collision point in Washington if proposals expand coverage to adults, and he encouraged states to design approaches that complement the private market. "I believe programs like SCHIP should complement the private market, not replace it," he said.
The exchange concluded with Leavitt offering to work with Utah lawmakers on state-level measures and with Senate leaders to follow up on questions about CHIP funding and the interaction between state benefits and federal proposals.
Next steps: the Senate recessed the committee and returned to calendar business; Leavitt left an open invitation to continue state–federal collaboration on cost and quality measurement.
