Deloitte gauges public opinion on healthcare reform

June 10, 2010 – 2:37 pm by Steven Niles

The June issues of Med Ad News and R&D Directions are now online, and between the two issues you’ll find substantial coverage of what the provisions in the new healthcare reform legislation will mean for the pharmaceutical and biotechnology industries.

In Med Ad News’ 19th annual Top 100 Biotechnology Companies report, I wrote about how the biotechnology industry is preparing to take a major financial hit as a result of imposed discounts and rebates and raised industry fees, but other provisions within the legislation can be counted as victories for the industry as a result of the lobbying efforts of the Biotechnology Industry Organization.

In the latest installment of our series on sales force effectiveness, I discuss the issues pharmaceutical marketers will need to assess around healthcare reform that will cause the selling environment to evolve.

And in R&D Directions, Senior Editor Michael Christel outlines the reform provisions that affect clinical research, with implications that may reshape the biopharmaceutical pipeline for years to come.

In one of the first surveys highlighting consumer sentiment following the passage of healthcare reform in the United States, a new Deloitte poll found a widespread anxiety from consumers who are concerned about possible changes that may come when the new law is implemented.

Of the 82% of consumers who consider themselves sufficiently insured, nearly all – 96% – are somewhat or very satisfied with their health plans overall. However, when asked about what the future might hold, consumers expressed concerns about possible changes to coverage and increases in costs.

Consumers with employer-sponsored coverage, as opposed to those covered through Medicare, are the most skeptical and expect to experience negative effects from the implementation of reform. Sixty-one percent believe that their employer will reduce benefits for dependents and retirees, and 32% believe that employers will probably pay the penalty and discontinue health coverage for employees altogether.

This segment of respondents agree with the following:

• The cost of the health reform act will be higher than expected (82%), which is significantly different from those who are individually insured (68%).
• The health reform act will not reduce healthcare costs in the long-term (58%), which is significantly different from the uninsured (43%).
• Employers will pass the increased cost of health benefits through to their employees (80%).

The cost of care was also an issue for the majority of consumers in the Deloitte poll, with 76% anticipating increases in taxes, 65% expecting increases in health insurance costs, including premiums and out-of-pocket expenses, 66% expecting increased hospital and physician services costs, and 54% anticipating increased cost of medications as reform is implemented.

On the bright side, more than half – 56% – of those surveyed believe that incentives for doctors and hospitals to use electronic medical records will be effective or very effective at improving the overall performance of the health care system.

Finally, the survey found that younger consumers are more optimistic that the reform bill will reduce healthcare costs in the long term.

Tags: Deloitte, healthcare reform