The Bipartisan ‘Single Payer’ Solution: Medicare Advantage Premium Support For All

http://healthaffairs.org/blog/2017/05/11/the-bipartisan-single-payer-solution-medicare-advantage-premium-support-for-all/

US national flag flying over Capitol Hill Building in Washington DC

In my last Health Affairs Blog post, I outlined a potentially bipartisan four-step plan to move past the American Health Care Act’s (AHCA’s) disastrous framework toward a more stable, less expensive health care system. For those seeking incremental, near-term solutions, I hope those recommendations provide helpful guidance.

But the AHCA’s reckless drive through the US House of Representatives has taught us something about the current status of health care politics and may have opened the window to more significant, ultimately more successful, reforms. To put it mildly, the public is essentially fed up with debating how to realign the fragmented elements of our Rube Goldbergian system. Its machinations are too complex, its politics too fickle, and its rent is too damn high for the care we are getting.

Where do we turn, then? More complexity? Cutting millions from coverage and shifting more costs to working families? With those options likely to be rejected, as conservative heavyweight Charles Krauthammer recently asserted, we may be heading “inexorably” toward a single-payer system. Poll after poll has in fact shown that a majority of Americans support such an approach. Most recently, an Economist/YouGov survey found that 60 percent of Americans support expanding Medicare to cover everyone, with only 23 percent opposed. If the AHCA defies odds and is enacted, this will only become exponentially truer as its impacts are felt.

But, you are quick to add, there are a variety of deep-seated concerns with a single-payer approach that have kept it out of mainstream political discourse so far. That’s undoubtedly true. They include: It will necessitate massive tax increases; it will cut reimbursement for services to unsustainably low rates; it will be lower quality than the employer-sponsored coverage most Americans currently have; it will consolidate power into the hands of a small number of bureaucrats; etc., etc.

My goal with this post is to demonstrate that a “unified” (punchline: It wouldn’t truly be single payer…), market-driven, federally regulated, privately delivered system need not possess any of these objectionable attributes. In fact, the parameters of such a system are all but staring us right in the face. I call it: Medicare Advantage Premium Support for All (MAPSA).

While any flavor of single payer may be the last thing that comes to mind when contemplating bipartisan initiatives, just as the far left and far right share some libertarian (and other) commonalities, we may have indeed finally come full circle in this tiresome, so-far-futile debate. By combining two shots of conservative orthodoxy with one overflowing progressive one, and stirring slowly, it is not at all far-fetched to envision an endgame cocktail for our health care system that covers everyone, decreases costs, and can pass Congress. Cheers.

ObamaCare uncertainty driving premium hikes

ObamaCare uncertainty driving premium hikes

ObamaCare uncertainty driving premium hikes

Uncertainty among insurers about how the Trump administration will handle the Affordable Care Act could translate into double-digit premium increases for 2018.

Insurers are beginning to file rate requests with state insurance regulators, and some states could see premium increases of 50 percent or more.

Insurers are worried about how President Trump’s plans for -ObamaCare — particularly whether the requirement for individuals to buy insurance will remain and whether insurer subsidies for covering low-income enrollees will continue.

“It’s a significant factor in pricing this year,” said Cynthia Cox, a health insurance expert with the Kaiser Family Foundation.

“I think it’s fair to say these rates are higher than we would have expected to see in the absence of uncertainty.”

Insurers also blamed rate increases on an unbalanced risk pool — which means there are too many sick, expensive patients and not enough healthy ones — higher claims for medical care and drugs, and the reinstatement of an -ObamaCare tax on health insurers.

Maryland’s largest health insurer, CareFirst BlueCross BlueShield, is proposing an average rate increase of more than 50 percent.

In a statement, CareFirst said the “lack of clarity” about whether the individual mandate would be enforced played a “significant role” in its proposed rate increases.

“Failure to enforce the Individual Mandate makes it far more likely that healthier, younger individuals will drop coverage and drive up the cost for everyone else,” CareFirst said in a statement.

The company is also requesting premium increases of 35 percent in Virginia and 29 percent in Washington, D.C.

Another Maryland insurer, Evergreen Health, is requesting rate increases of 27 percent, blaming uncertainty about -the ObamaCare insurer payments and the enforcement of the individual mandate as the “primary driver.”

In Connecticut, Anthem is requesting an average premium increase of 34 percent for plans on the -ObamaCare exchanges. The state’s other exchange insurer, CTCare, is requesting a 15 percent increase.

Rate requests must be reviewed and approved by state regulators and can often change.

Connecticut and Maryland both have earlier filing deadlines than most other states, which align more closely with the federal deadline of June.

Still, these states have been a good indicator of how insurers in other states will set their premiums, Cox said.

Because -ObamaCare subsidies are designed to increase as premiums go up, the people most affected by rate hikes would be those with higher incomes getting insurance through the exchanges and people getting insurance in the individual market.

It is difficult for insurers to price plans when they don’t know what will happen to -ObamaCare next year.

Medicare Didn’t Investigate Suspicious Reports Of Hospital Infections

http://www.npr.org/sections/health-shots/2017/05/09/527432852/medicare-didnt-investigate-suspicious-reports-of-hospital-infections

Almost 100 hospitals reported suspicious data on dangerous infections to Centers for Medicare & Medicaid Services officials, but the agency did not follow up or examine any of the cases in depth, according to a report by the Health and Human Services inspector general’s office.

Most hospitals report how many infections strike patients during treatment, meaning the infections are likely contracted inside the facility. Each year, Medicare is supposed to review up to 200 cases in which hospitals report suspicious infection-tracking results.

The IG said Medicare should have done an in-depth review of 96 hospitals that submitted “aberrant data patterns” in 2013 and 2014. Such patterns could include a rapid change in results, improbably low infection rates or assertions that infections nearly always struck before patients arrived at the hospital.

The IG’s report, released Thursday, was designed to address concerns over whether hospitals are “gaming” a system in which it falls to the hospitals to report patient infection rates and, in turn, the facilities can see a bonus or a penalty worth millions of dollars.

The bonuses and penalties are part of Medicare’s Hospital Inpatient Quality Reporting program, which is meant to reward hospitals for low infection rates and give consumers access to the information at the agency’s Hospital Compare website.

What moderate GOP senators want in ObamaCare repeal

What moderate GOP senators want in ObamaCare repeal

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The House managed to narrowly pass its ObamaCare repeal bill by finding a delicate balance between hard-line conservatives and moderates. Now the Senate is looking to achieve the same feat, only with a smaller margin for error.

Senate moderates have already put their markers down on the healthcare issues that concern them the most. Individual senators hold much more power in advancing the health bill than individual House members, and if Senate Republicans can’t find a balance among their caucus, the ObamaCare repeal effort could be doomed.

The Senate will only need 51 votes to pass the bill, but because of their slim majority, Republicans can only afford to lose two votes.

The centrist senators have several major concerns with the House bill, known as the American Health Care Act (AHCA), most notably its changes to Medicaid.

The Affordable Care Act allows states to expand Medicaid coverage to more people, funded mostly by the federal government. So far, 31 states and D.C. have done so.

Even as the healthcare bill was working its way through the House, moderate GOP senators hailing from states that took the Medicaid expansion objected to the proposed cuts to the program.

In early March, Republican Sens. Rob Portman (Ohio), Shelly Moore Capito (W.Va.) Cory Gardner (Colo.) and Lisa Murkowski (R-Alaska) sent a letter to Majority Leader Mitch McConnell (R-Ky.) objecting to the Medicaid cuts in the House bill. “We will not support a plan that does not include stability for Medicaid expansion populations or flexibility for states,” the lawmakers wrote.

The legislation has changed since then, but the Medicaid provisions have been largely left alone. The House bill would undo ObamaCare’s Medicaid expansion by 2020, and would cut over $800 billion from the program.

After the House passed the legislation last week, Portman, Capito and Sen. Dean Heller (R-Nev.) were quick to say they still opposed the bill because of the Medicaid provisions.

Capito on Monday said she would like to see some form of Medicaid expansion remain permanent.

“I have seen a lot benefits to the Medicaid expansion in our state, particularly in the mental health and opioid and drug abuse areas,” Capito told reporters. As for the people who have gained coverage through expansion, Capito said “you can’t just drop them off and wish them good luck. “

Moderates have also objected to the fact that the most recent estimates of an earlier version of the House bill would have resulted in 24 million fewer people having insurance coverage over a decade.

Sen. Bill Cassidy (R-La.) has crafted, along with Collins, a different ObamaCare replacement bill that would allow states to decide whether they want to keep ObamaCare or enact something different.

Cassidy has repeatedly objected to the House version of the legislation because he says it doesn’t fulfill President Trump’s promises to “lower premiums, maintain coverage and protect those with pre-existing conditions.” During a May 8 speech at the American Hospital Association, Cassidy said that while the AHCA may lower premiums, it does so by giving people “terrible coverage.”

Aside from coverage issues, abortion is also likely to cause some headaches in the Senate.

The primary group in the Senate working on the bill includes prominent conservatives like Ted Cruz (R-Texas) and Mike Lee (R-Utah), who are likely to insist that the Senate keep a provision from the House that largely strips Planned Parenthood of funding. But Collins has said any Planned Parenthood language is a non-starter.

Moderates are also likely to insist on making sure language is removed from the House bill that would prohibit the bill’s tax credits from being used to purchase coverage on insurance plans that cover abortion. That could be a major problem for conservatives, especially if the revised bill is to have any chance at passing the House again.

Senate Majority Whip John Cornyn (R-Texas) on Monday acknowledged the balancing act leaders will need to pull off. “Now it’s a question of building consensus within the Republican conference. All 52 Republican senators are going to be part of the process … because we’re going to need everybody.”

Cornyn also said he wasn’t concerned about losing votes if the Planned Parenthood language remained in the bill.

Altarum Institute Urges CMS to Adopt Physician-Focused Payment Models

http://altarum.org/about/news-and-events/altarum-institute-urges-cms-to-adopt-physician-focused-payment-models

Image result for Physician-Focused Payment Models

Altarum Institute joins the debate over whether the Centers for Medicare & Medicaid Services (CMS) should delay expansion of its controversial bundled payment programs, specifically the Comprehensive Care for Joint Replacement (CJR) pilot and the cardiac care bundled payment initiative (also known as the Episode Payment Models, or EPM).

In a column published today in Health Affairs, Altarum Vice President and Director of the Center for Payment Innovation, François de Brantes, argues that CMS should delay and ultimately replace its Bundled Payment for Care Improvement (BPCI) program with a physician-focused model.

De Brantes writes that the BPCI program has five flaws that physician-focused models do not have, and those flaws are serious enough to compromise the successful long-term adoption of bundled payment models, which are critical to reducing health care costs and improving outcomes.

“I applaud CMS’s effort to launch bundled payment models, but the current models they have introduced—the CJR pilot and EPM—are inherently flawed, and unlikely to be successful,” says de Brantes.

The five flaws are outlined in detail in the Health Affairs article and in a public comment letter to CMS from Altarum President and CEO Lincoln Smith. They are summarized below:

Hospital Centricity. Each bundle under the program is triggered by an inpatient stay, and in particular, by a specific Diagnostic Related Group, where there is significant variation in the total costs of episodes. This makes it more difficult to distinguish between warranted and unwarranted variation. Additionally, when regulators force every episode to be triggered by a hospital stay, they prevent physicians from exercising judgement in finding the best site for a given episode.

Lack of severity adjustment. The program does not provide a risk adjustment for patients with more complications. For example, a physician performing a total knee replacement for a patient with a serious heart condition would be paid the same to perform the surgery on a patient without complications. This provides an incentive for providers to favor certain patients over others in an effort to avoid losses.

Encouraging hospitalizations for acute exacerbations. The program includes bundles for patients with an Acute Myocardial Infarction (AMI), providing an incentive to hospitalize a patient with a mild AMI that normally would not require an inpatient stay. This runs counter to the purpose of alternative payment models, which is to encourage better management of patient conditions and reduce the potential for acute events.

Weak ties to quality measures. While hospitals enrolled in the CJR pilot and EPM must report certain quality measures, there are instances in which there are not any thresholds required to receive reconciliation payments. In other words, some could be rewarded for reducing cost relative to the target price, even if quality of care deteriorated.

Moving goalposts. One of the core principles of an effective payment model is to provide clear performance targets. The CJR pilot and EPM adjust the target to reflect changes in national trends, but the new targets are not revealed until at least six months after the performance period. This means participants will not know the standard to which they are being held during any given performance period, potentially encouraging participants to overestimate the probability of losses.

In his public comment letter to CMS Administrator Seema Verma, Altarum President and CEO Lincoln Smith states that “Altarum is a strong advocate of payment bundles and alternative payment models in general, but the proposed mandated models is the wrong approach.” He goes on to encourage CMS to consider a physician-focused model proposed by the American College of Surgeons, which “adjusts for patient severity, ties patient outcomes to gains and losses, enables physicians to exercise judgement in providing the best treatment, and encourages collaboration across disciplines.”

 

PREPARING FOR HEALTH CARE COSTS IN RETIREMENT: AN AMERICA’S HEALTH RANKINGS® ISSUE BRIEF

http://www.americashealthrankings.org/learn/reports/issue-brief-financial-preparedness

Click to access ahr_issuebrief17.pdf

This issue brief, released in collaboration with United Health Foundation and the Alliance for Aging Research, examines current and future seniors’ readiness for health care costs in retirement. Based on analysis of a recently conducted survey of retired seniors (age 65+) and non-retired adults (age 50-64), as well as data from studies on recommended health care savings targets in retirement, key findings include:

  • Many current and future retirees are at risk of not being able to afford the high costs of health care in retirement;
  • A high percentage of current and future retirees are unsure about how much to save to cover both anticipated as well as unexpected health care costs; and
  • Current and future retirees with retirement savings of $20,000 or less are more likely to be in poor health, have chronic disease, and have lower incomes than those with higher rates of retirement savings.