Under the best of circumstances,
overseeing the Department of
Health and Human Services is an
enormous undertaking. With
65,000 employees and a budget of
$707.7 billion, it accounts for
nearly one-quarter of all
federal spending, second only to
the Defense Department.
But in the Obama
administration the job is taking
on a second, perhaps more
daunting, responsibility:
shepherding health-care reform
legislation through Congress.
Unlike his predecessors,
Thomas A. Daschle,
President-elect Barack Obama's
choice for HHS secretary, will
be given an expanded role,
leading administration efforts
to overhaul the U.S. health
system.
"This really creates a new
type of secretary," said Charles
N. "Chip" Kahn III, president of
the Federation of American
Hospitals. In the past, "HHS was
more or less a service
organization to the White
House," while White House
advisers drove policy
initiatives.
In broad terms, Obama
campaigned on the idea of
reducing medical costs,
improving quality and eventually
achieving universal insurance
coverage. He promised to cover
every child and to reduce the
average family's medical bill by
$2,500 a year. He advocated a
greater emphasis on prevention
and expanding participation in
the government-subsidized
Medicare and Medicaid programs.
"There are two aspects to the
challenge of pushing for health
reform," said Dan Mendelson, a
budget and health adviser in the
Clinton administration. "One is
to get the right concepts
together with what Congress
wants to do, and the other is
managing the disparate concepts
and generous egos."
A serious restructuring of
the health system will require
extensive data and analytic
capabilities to dissect the
proposed changes and the impact
they might have, said Karen
Davis, president of the
Commonwealth Fund, a private,
nonpartisan research foundation.
"Right now, there's nothing
other than the Office of the
Actuary to do
back-of-the-envelope estimates,"
she said.
With the expectation that
Daschle, a former Senate
majority leader, will focus
heavily on crafting and pushing
legislation, there will be an
even greater need for a strong
No. 2. HHS is a collection of 11
agencies including the Food and
Drug Administration, the
National Institutes of Health,
the Centers for Medicare and
Medicaid Services, and the
Centers for Disease Control and
Prevention.
"He'll need to have deputies
who are well-versed in the
agency as a whole and who can
manage the ongoing operation of
HHS while he leads the health
reform discussions," said Len
Nichols, director of health
policy at the New America
Foundation. One of those will
likely be Jeanne Lambrew, a
veteran of the Clinton
administration and a co-author
of Daschle's book "Critical:
What We Can Do About the
Health-Care Crisis."
Lambrew, in a chapter of a
book published by the liberal
Center for American Progress
outlining a proposed agenda for
the incoming president, agreed
that fixing the health system is
a top priority. However, she
noted, "these urgent problems
overshadow persistent, neglected
and potentially deadly
infrastructure gaps in the
system."
According to her assessment,
the nation's ability to respond
to natural or man-made crises is
weak, as evidenced by the poor
response to Hurricane Katrina.
Chronic illnesses such as
diabetes have been given short
shrift, and little has been done
to prepare for the long-term
health needs of an aging
population.
The Commonwealth Fund, after
interviewing two dozen health
leaders, issued its own set of
recommendations. It urged the
next administration to make a
"real focus on what it takes to
improve health outcomes," as
opposed to secondary issues
related to insurance markets,
Davis said. That means tackling
childhood obesity, racial
disparities and preventable
illnesses.
Both Lambrew and Davis cited
several instances in which they
said ideology or political
philosophy trumped science in
the Bush administration. Many of
those had to do with sexuality
and reproductive health,
embryonic stem cells and
allowing private firms to shape
Medicare insurance plans.
Tommy G. Thompson, who served
as HHS secretary during the
first term of President Bush,
did not dispute criticism that
politics factored into promotion
of abstinence-only programs and
Bush's refusal to fund embryonic
stem cell research. But Thompson
disputed the notion that
ideology extended beyond those
issues.
He said the next secretary
should act swiftly to stabilize
the oft-neglected FDA, appoint
"competent administrators" in
core divisions such as the NIH
and the CDC, and continue to
bolster the nation's
preparedness for biological,
chemical, radiological and
nuclear attacks.
HHS spokesman Bill Hall
offered a similar list of core
challenges, including greater
attention to food and drug
safety, strengthening terrorism
preparedness and moving toward
wider adoption of electronic
medical records.
In his 2004 State of the
Union address, Bush promoted the
use of electronic medical
records, but the
administration's efforts have
been slow and modest, several
experts said.
Beginning in January,
Medicare will provide 2 percent
bonuses to doctors who write
electronic prescriptions.
Mendelson said the
administration has the leverage
as the largest health-care
purchaser in the country to push
more physicians to adopt more
technology, more rapidly. "They
could say, 'If you want the
privilege of taking care of
Medicare patients, you have to
use electronic medical records,'
" he said.
In her article, Lambrew
suggested using expansions of
the Medicaid program -- such as
raising income eligibility
limits -- to extend coverage to
more Americans. It is a strategy
the Bush administration often
opposed. But even if Obama's HHS
is philosophically inclined to
permit those expansions, it will
not be easy. Most states, which
help underwrite the program, are
broke.