Why hospitals really don’t want to go back to pre-Obamacare days

https://www.axios.com/why-hospitals-really-dont-want-to-go-back-to-pre-obamacare-days-2162243137.html

Image result for pre-Obamacare hospitals

Hospital executives know that if Obamacare is repealed and not replaced, the ranks of the uninsured will swell, and they will still be required to treat those patients.

That’s why they’re hit especially hard these days by the uncertainty over what will happen and when, as Republicans try to figure out how they want to get rid of the law. The biggest concerns for hospital executives: losing Medicaid payments, and having more privately insured patients who can’t pay their bills because of high out-of-pocket costs. Hospitals were just getting relief from uncompensated care, and don’t want those costs to rise again.

The primary concern: It’s not the potential loss of patients with private Obamacare insurance that worries hospitals the most. It’s the loss of patients with Medicaid coverage.

Even though state Medicaid programs pay hospitals less than Medicare or private insurers, it’s still been better than nothing. That’s why state hospital associations have aggressively lobbied for Medicaid expansion in Republican states that haven’t embraced it.

Dennis Dahlen, chief financial officer of Banner Health in Phoenix, recently said there could be “dire consequences” if Medicaid expansion is rolled back and if Republicans move toward Medicaid block grants. That would threaten revenue immediately and lead to more uninsured patients walking into the emergency room.

“Our biggest exposure and biggest concern is Medicaid funding,” Dahlen said. About 13% of Banner’s patient revenue comes from Medicaid.

Today in Obamacare: the big hurdle to block-granting Medicaid — explained by a GOP legislator who wants to do it

http://www.vox.com/2017/2/1/14475974/obamacare-medicaid-block-grants

Image result for medicaid block grants

GOP legislator: Block-granting Medicaid will be “harder” than I thought

Yesterday afternoon, I interviewed Rep. Phil Roe (R-TN), a conservative legislator who co-chairs the GOP Doctors Caucus and authored the Republican Study Committee’s Obamacare replacement plan. We spent most of the time talking about that health care bill, and you can read that full conversation here.

But one of the things Roe told me that surprised me the most was that he has begun to think block-granting Medicaid is going to be much harder than he initially expected. Here was the full answer:

What I thought was going to be easy was I thought Medicaid, we’d just block-grant it to the states. That one actually is going to be a little harder than I thought. The reason is there are states like New York, states that expanded [Medicaid]. How do you cover that 10 or so million people on Medicaid?

Why this is surprising: There is a lot that divides Republicans on health policy right now (what exactly to do about the Affordable Care Act, for example). But if there is one major idea that unites them, it is block grants for Medicaid.

Today in Obamacare: Trump quickly changed his mind on drug prices. Expect the same on Obamacare.

http://www.vox.com/policy-and-politics/2017/1/31/14455656/obamacare-trump-drug-prices

Image result for aca repeal

If Trump’s pharma comments are any clue, we have no idea what he wants on Obamacare

President Trump has apparently done some rethinking on his views of American drug pricing policy, offering confusing remarks that indicated he might not support Medicare negotiating drug prices.

“I’ll oppose anything that makes it harder for smaller, younger companies to take the risk of bringing their product to a vibrantly competitive market,” Trump said after meeting with pharmaceutical executives Tuesday. “That includes price-fixing by the biggest dog in the market, Medicare, which is what’s happening.”

This appears to contradict what he said a mere two weeks ago, at a press conference in Manhattan. “Pharma has a lot of lobbies, a lot of lobbyists, and a lot of power. And there’s very little bidding on drugs,” he said there. “We’re the largest buyer of drugs in the world, and yet we don’t bid properly.”

This back and forth on drug pricing is suggestive of what to expect from the president on the Affordable Care Act. There too, Trump has made big promises that most of his Republican colleagues on the Hill have not. The biggest one is that he will come up with a plan to cover everybody and do it at a lower cost than Obamacare.

In this drug pricing example, I see how Trump could break his promise to cover everyone. It boils down to three main reasons, all present in the drug pricing situation.

President Obama flouted legal norms to implement Obamacare. Now Trump may go further.

http://www.vox.com/the-big-idea/2017/2/1/14463904/obamacare-executive-power-trump-law

This month, Kellyanne Conway, senior adviser to President Donald Trump, was asked whether the administration would refuse to enforce the Affordable Care Act’s individual mandate — the requirement that people get health insurance or pay a penalty. “He may,” she said, instantly sending a shiver of fear down the spines of health reform’s supporters. Without the mandate, insurance markets in many states will teeter; some will probably collapse.

Would it be legal for Trump to decline to enforce the mandate?

The short answer is no. The longer answer is more complicated, but it’s also instructive. At key points, President Barack Obama delayed aspects of the ACA in an effort to put health reform on a sound footing. The delays were classic examples of executive overreach; they never should have happened. The Republican-led House of Representatives even sued the president over them.

And now the shoe is on the other foot. With Trump in office, some of Obamacare’s fiercest critics seem almost giddy at the prospect that he might use the same weapon against the act. Pick your favorite tagline: payback is a bitch, what goes around comes around, “I learned it from watching you, Dad!”

What Trump has hinted at, however, would be a far greater overreach than Obama ever attempted. But Obamacare’s critics are unlikely to care. There’s an important lesson here about the accretion of executive power in the 21st century, how law is enforced outside the courts, and what presidential power might look like in an age of Trump.

Bloggingheads.TV on repeal and replace

bhtv-2017-01-31-glass-mcintyre

Image result for Bloggingheads

Earlier this week, Kevin Glass, director of policy at the Franklin Center and contributor at The Washington Examiner, invited me to chat on his Bloggingheads show about the future of the ACA. We touch on the scope and implications of Trump’s executive order, the Cassidy-Collins plan, and the difficult politics of repeal and (particularly) replace. We also spend a fair bit of time talking about the market uncertainty created by those politics, which threatens to undermine access to coverage in 2018, regardless of policy outcome.

Kevin Glass (Franklin Center for Government and Public Integrity) and Adrianna McIntyre (The Incidental Economist)

Premium support is back. What is it?

Premium support is back. What is it?

Image result for cost shifting to the elderly

Click to access premium-support.pdf

A number of Republican health care policy proposals that seemed out of favor in the Obama era are now being given new life. One of these involves Medicare, the government health insurance program primarily for older Americans, and is known as premium support.

Right now, the federal government subsidizes Medicare premiums — those of the traditional program, as well as private plan alternatives that participate in Medicare Advantage. The subsidies are established so that they grow at the rate of overall per enrollee Medicare spending. No matter what Medicare costs, older Americans can be sure that the government will cover a certain percentage of it. That’s the main thing that panics fiscal conservatives, because that costs the government more each year.

Premium support could quiet that fear. Subsidies would be calculated so they don’t grow as quickly, thus protecting the federal government (that is, taxpayers) from runaway spending. There are lots of variants, but there are really two principal ideas.

Hospital leaders support keeping many elements of ACA

http://www.revenuecycleinsights.com/news/hospital-leaders-support-keeping-many-elements-aca?mkt_tok=eyJpIjoiWWpCaU1USXhZbVEzWkRCaiIsInQiOiJURzlCeG5tb05KNjN5QU9UMGIrVFBoZkxiS3Q2WHdPZDZRNXJ0TFQzemdXdVwvS3pPa3UrcWNOQTVxanpaVW5mMFFoUzk4OXc0ejg2dSs2SkRGWHErZDlqUjlhd1dTQit3c2VBaXdGSDdPK1IzQXEwdWNNaWt6YjFRQ2xyR3JZNloifQ%3D%3D

An overwhelming majority of hospital C-suite and pharmacy executives support preserving the protections in the Affordable Care Act (ACA) for patients with preexisting conditions, according to a post-election survey.

Member-based healthcare performance improvement company Vizient conducted the survey to assess how member hospitals were reacting to the planned repeal of the ACA by the Trump administration and Republican leaders in Congress. Vizient also asked executives about their top concerns for the future as well as their priorities for 2017.

Nearly 90 percent of C-suite leaders (89.5 percent) and 96 percent of hospital pharmacy executives surveyed said the ACA’s protections for patients with preexisting conditions should be kept in place.

Other findings from the survey show:

  • 68 percent of hospital C-suite leaders and 35 percent of hospital pharmacy executives want to keep incentives for expanding Medicaid coverage
  • 56 percent of hospital executives and 46 percent of hospital pharmacy leaders want to continue subsidies to help consumers pay for insurance
  • 52 percent of hospital C-suite leaders and 39 percent of pharmacy executives want to continue value-based reimbursements.

The top three priorities for all executives this year were 1) reducing clinical variation across care delivery 2) migrating toward value-based models, and 3) the integration of existing technology systems, Vizient said.

“In reviewing the survey results, central themes come through: uncertainty and concerns about financial viability,” Byron Jobe, president and chief administrative officer for Vizient, said in a statement. “There are many open questions about the future of the ACA, and what a repeal and replacement strategy could look like. As Congress wrestles with these decisions, it’s important to ensure reimbursement levels are enough to allow hospitals to continue their mission of caring for patients in their communities. Equally important, hospitals must quickly gain a clear understanding of where health policy is heading so they can begin to prepare.”

Congress must act by March to stabilize individual markets, experts say during Senate hearing

http://www.fiercehealthcare.com/payer/congress-must-act-by-march-to-stabilize-individual-markets-experts-say-at-senate-hearing?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTm1RM01HUTJORE15WVdRNSIsInQiOiJFd0pManZSb09vTTVCbXdwQThsTnBycFZvaEdvbmVBZUpFWU42RFlCNHpmNW81eG5vNzFGcFRWVjRodGZFRDhWTlQ1WG1OeU5CTklYaFdjSWN0OCtaWGRLU3laOU5NVGdQV3hYWE5PVUpTeXVtcnZnWFZcL040c241SnB6SytsMXYifQ%3D%3D

America’s Health Insurance Plans CEO Marilyn Tavenner testifies during Wednesday’s Senate hearing on the state of the individual marketplaces.

Expert witnesses warned lawmakers during a Senate hearing Wednesday that if they fail to ensure a stable transition while repealing and replacing the Affordable Care Act, they risk worsening the already unstable individual marketplaces.

“Insurance markets do not respond well to uncertainty,” Julie McPeak, Tennessee’s commissioner of commerce and insurance and president-elect of the National Association of Insurance Commissioners, testified at hearing held by the Senate Health, Education, Labor and Pensions Committee. “As you consider ACA reforms, it’s critical to remain transparent and to minimize surprises in our insurance system.”

For his part, Committee Chairman Sen. Lamar Alexander, R-Tenn., asked McPeak how quickly Congress needs to act in order to shore up the marketplaces enough for insurers to feel comfortable participating in 2018.

“I think you need to provide some indication to plans as quickly as possible, but March would be extremely helpful,” McPeak said, noting that insurance carriers have to file their rates by early spring. Janet Trautwein, CEO of the National Association of Health Underwriters, agreed, saying action is needed by late March at the latest.

“Right now, plans are trying to price for ‘18, and the uncertainty around cost-sharing subsidies and the tax credits would cause them to hesitate to price because we need to understand what the funding support is going to be, because that affects premiums,” America’s Health Insurance Plans President and CEO Marilyn Tavenner added.

Thus, she pointed to suggestions AHIP has previously made public, such as making full reinsurance payments for 2016, and continuing to provide premium subsidies and cost-sharing reductions through at least 2018. “Absence of this funding would further deteriorate an already unstable market and hurt the millions of consumers who depend on these programs for their coverage,” Tavenner said.

But that isn’t enough to ensure a stable and workable transition away from the ACA, Tavenner noted. Other necessary steps include recalibrating premium subsidies to encourage more young people to participate, federal risk pool funding and continuous coverage incentives.

 

Executive actions Trump could take to change the ACA

Executive actions Trump could take to change the ACA

Image result for executive actions

The executive order President Trump signed on Friday does not have any immediate policy effect, but it does call attention to the wide range of administrative actions that a Trump administration could take to change the Affordable Care Act—all without legislation from Congress.

We’ve compiled a list of those actions. It’s not exhaustive; there is a lot more a Trump administration could do. Nor do we mean to suggest that these actions would be legal. Declining to enforce the individual mandate, in particular, would be problematic, although the Trump administration might seek cover from dubious enforcement decisions made by the Obama administration (like the “like it, keep it” fix and employer mandate delays).

Whether and which actions a Trump HHS chooses to pursue will depend on the administration’s willingness to gamble the stability—already quite fragile, in some states—of the individual market. And it will depend, too, on what Congress is willing to do through legislation. If Congress wipes out the individual mandate, for example, there’d be no need to change the rules governing hardship exemptions.

More families with employer-sponsored insurance are needing public assistance

http://www.academyhealth.org/blog/2017-01/more-families-employer-sponsored-insurance-are-needing-public-assistance

Image result for More families with employer-sponsored insurance are needing public assistance

As employer-sponsored insurance becomes more expensive for children, public programs are picking up the slack.

The Medicaid Expansion, which was responsible for a large part of the reduction in uninsurance in the United States over the last few years, was mostly aimed at adults. This is because Medicaid has traditionally covered nearly all children in poverty for some time. The CHIP program has bolstered that coverage, so that uninsurance in children fell steadily in the 1990’s and well into the 21st century.

The passage of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) assured that CHIP coverage would continue for some time. But even before that, trouble was brewing with respect to the coverage of children. These troubles were not in the Medicaid  program, though. Issues were arising in the employer-sponsored insurance market.

As I’ve written about in many posts here before, the cost of employer-sponsored insurance has been rising quite steadily for some time. Further, the out-of-pocket costs for such insurance have also been increasing. Deductibles, co-pays, and co-insurance – not to mention premiums – can put the cost of insurance out of reach for many employees even when it is “offered” as a benefit from their job. The costs of insurance have outpaced both income and wages for more than a decade, meaning that more and more must come out of employee’s pockets if they want to maintain coverage for themselves and their children.