An Ounce of Prevention

Universal to all faith traditions is the call to safeguard our personal health and the health of others as a moral obligation. ICCR’s voice in the national discourse on domestic health care begins with this moral mandate, but what makes its Domestic Health Care Leadership team unique is their insider knowledge of the sector, as many members are long-term representatives of large U.S. hospital systems. The broader mission of the group is to improve access to and affordability of health care services for all U.S. citizens. As health care professionals and shareholder advocates, they have been working with companies to achieve this goal for over 20 years.

Read our Statement of Principles and Recommended Practices for Corporations on Domestic Health Issues

We regard health care as an immutable human right and question the inequitable  distribution of health care coverage in America. For many of us with direct experience in U.S. hospital systems, we see that for too many Americans there is no security in the event of sickness.

Using the power of their investments as  a catalyst for change ICCR members engage pharmaceutical, insurance and health care companies to bring greater equity to our health care system through the mechanisms of direct dialogue, letter writing, shareholder resolutions, and the convening of industry roundtables. In 2007, ICCR released a set of eight strategic Principles of Health Care Reform signaling their support of health care reform legislation. ICCR’s recently  published Statement of Principles and Recommended Practices for Corporations on Domestic Health Issues is a reaffirmation of their commitment to these principles as the Affordable Care Act comes under heavy fire from groups opposing reform. The document not only clearly sets out the business case for reforming
health care, it articulates a detailed set of best industry practices pertaining to medical devices, pharmaceuticals, health insurance, and industry lobbying. ICCR members seek endorsement of the principles and practices outlined in the document by other investor organizations, faith-based communities, NGOs, health care systems and other
companies.

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ICCR member work in domestic health care is focused in three key sectors:

HEALTH INSURANCE
While the data varies by study, the 2010 U.S. Census Bureau Report put the number of uninsured Americans at over 50 million. Further, the Kaiser Family Foundation reported that after several years of moderate increases, the average annual increase in employer-provided family health insurance premiums increased by 9% in 2011, compared with average wage increases of 2.1% and general inflation of 3.2%. Premiums for employer-provided family coverage increased 113% in 2011 over premiums in 2001, while workers’ share of cost for this coverage has increased 130% over the same period. ICC is asking our health insurance companies to redesign their benefit models, provider networks and payment models to amplify access and to limit premium increases.

PHARMACEUTICAL PRICING
Increased regulatory requirements, insufficient innovation and intense competition from smaller  manufacturers and generics all point  to an unsustainable business model for big pharma. Meanwhile, the cost of two-thirds of the 15 best-selling drugs in the U.S. rose by double digit percentages in 2010. Examples include Lipitor, Plavix, Crestor and Singulair. Insurance providers are increasingly demanding evidence of a prescription drug’s value beyond
safety and efficacy. Fundamentally, we want to make sure the pharmaceutical companies we hold are committed to developing and marketing drugs that will have meaningful patient outcomes.” Continued Crosby, “This is why comparative effectiveness data is so important: benchmarking means greater accountability and increased choices for doctors and their patients.

MEDICAL DEVICES The rising cost of medical devices continues to have a significant impact on the entire health care system. The industry suffers from a lack of transparency around pricing structures, inadequate research on product effectiveness including quality control measures and competitive benchmarking, a lax regulatory climate and undisclosed/unclear contracting activities. “here needs to be a better system for testing and tracking these devices to eliminate the possibility of product failures, and to protect the safety of patients. In addition, we want to know what our companies are doing to increase access for indigent patients. To this end, ICCR members are currently engaged in over 50 health-related dialogues not only with major American pharmaceutical corporations and medical device manufacturers, but a host of other corporations from multiple sectors.

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