Ex-Obamacare Chief Warns Trump’s Already Weakening The Health Care System

http://www.huffingtonpost.com/entry/ex-obamacare-chief-warns-trumps-already-weakening-the-health-care-system_us_588bca30e4b0b065cbbc071b?utm_source=&utm_medium=email&utm_campaign=5982

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Andy Slavitt helped save Obamacare once already. He’s hoping he can do it again.

Until Inauguration Day, Slavitt had been acting administrator of the Centers for Medicare and Medicaid Services since March 2015. That agency oversees the two health programs in its name along with the Children’s Health Insurance Program and the Affordable Care Act’s health insurance exchanges. CMS, as it’s known, manages benefits for 140 million people and its $1 trillion budget is bigger than the Pentagon’s.

In the short time since Slavitt left federal service, he’s already seeing signs that President Donald Trump and the GOP Congress are dealing damage to the health care system before even repealing the Affordable Care Act. And health care executives are telling him the same thing, Slavitt said.

The Affordable Care Act first entered Slavitt’s life in the fall of 2013, when he helped lead the effort to salvage HealthCare.gov, the federal insurance exchange website, after its disastrous launch. From there, Slavitt left his position as group executive president of Optum, a unit of UnitedHealth Group, to join CMS as a senior official. President Barack Obama nominated Slavitt for the top job in July 2015 but the Senate never held a vote on him.

Now Slavitt is out of government, but he’s not abandoning the fight over the Affordable Care Act. In an interview with The Huffington Post, he argued that Trump is already undermining the law and threatening coverage for millions ― in spite of his repeated promises to ensure that all Americans would have health care under his policies.

“I take the new president at his word. He said he wants to expand coverage. He said he wants the coverage to be high-quality. He said he wants it to be affordable to Americans who have trouble affording health care,” Slavitt said. “Those are the right goals, and I think the president should start out with those goals. Now, the actions that we’ve seen so far don’t support those goals.”

Specifically, Slavitt cited the executive order Trump issued the day of his inauguration, which instructs federal agencies to “take all actions consistent with law to minimize the unwarranted economic and regulatory burdens of the Act, and prepare to afford the States more flexibility and control to create a more free and open healthcare market.”

The White House subsequently signaled this could include halting enforcement of the law’s individual mandate that most Americans obtain health coverage.

Executive actions such as these, and like the Trump administration halting television advertising for the sign-up period that ends Tuesday, threaten to destabilize the health insurance market, Slavitt. These moves signal to health insurers that enrollment will be lower this year than it could have been, and that fewer of the healthy consumers needed to offset the costs of the sick will buy coverage. Without the mandate’s tax penalty for being uninsured, some consumers will opt against buying insurance.

“It increases premiums, it will send people out of the market,” Slavitt said. “Those actions that we’ve seen haven’t gotten us on the track that we would hope and that we need to be on in a bipartisan fashion, and so I’d hope that they’re quickly corrected.”

Koch-backed group details hopes for healthcare reform

http://thehill.com/policy/healthcare/316875-koch-backed-group-pushes-for-high-risk-pools-medicaid-freeze-in-obamacare

Koch-backed group details hopes for healthcare reform

A conservative group funded by the Koch brothers is pushing for high-risk pools and a freeze on Medicaid expansions as lawmakers try to coalesce around a replacement for ObamaCare.

Freedom Partners began circulating a memo on Capitol Hill Monday with specific reforms it thinks lawmakers should pass, including: the creation of high-risk pools at the state level to cover people with pre-existing conditions; the elimination of the ObamaCare mandate, which required everyone buy insurance or pay a penalty; and the expansion of access to health savings accounts, so people can save and pay for healthcare with pre-tax dollars.

The recommendations fall in line with what top Republicans in Congress have indicated they support.

High-risk pools offer coverage for sick people that otherwise could be denied coverage for having pre-existing conditions if ObamaCare is repealed.

California’s Uninsured: As Coverage Grows, Millions Go Without

Click to access PDF%20CaliforniaUninsuredDec2016.pdf

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Since the implementation of the Affordable Care Act (ACA) in 2014, the uninsured rate in California dropped by nearly half, from 16% in 2013 to 9% in 2015. However, 2.9 million Californians remained uninsured.

California’s Uninsured: As Coverage Grows, Millions Go Without provides a look at the uninsured two years after full implementation of the ACA. There could be big changes in health insurance coverage ahead with the election of President Donald Trump.

Key findings include:

  • The drop in the uninsured rate was mainly due to a seven percentage point increase in individually purchased insurance coupled with a five percentage point increase in Medi-Cal enrollment.
  • One in three of California’s uninsured had annual incomes of less than $25,000. At this income level, people are potentially eligible for Medi-Cal.
  • Of the state’s remaining uninsured, one in four were age 25 to 34, one in three were noncitizens, and more than half were Latino.
  • 62% of the uninsured were employed. Of the 1.8 million uninsured workers, 44% worked in firms with fewer than 50 employees.
  • Fewer Californians cited “lack of affordability” as the main reason for going without health insurance in 2015 compared to 2014.

Price Vows ‘Access to Coverage’ Under Health Executive Order

https://morningconsult.com/2017/01/24/hhs-nominee-vows-access-to-coverage-under-aca-executive-order/

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President Donald Trump’s nominee to be the nation’s top health official would not promise every American would get to keep their coverage under an executive order signed last week.

“What I commit to the American people is to keep patients at the center of health care, and what that means to me is making certain that every single American has access to affordable health coverage,” Rep. Tom Price (R-Ga.) told Finance Committee ranking member Sen. Ron Wyden (D-Ore.) when asked if he would commit to no one losing coverage.

The distinction between “access” to health insurance and “health coverage” appears to be a growing division between members of Congress and Trump, who vowed insurance for everyone in interviews ahead of his inauguration.

Heritage VP: Obamacare Repeal Efforts Going in ‘Wrong Direction’

https://morningconsult.com/2017/01/26/heritage-vp-obamacare-repeal-efforts-going-wrong-direction/

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The Heritage Foundation, an influential conservative think-tank, is pushing Republicans to repeal the Affordable Care Act as quickly as possible without waiting for a replacement.

The GOP’s self-imposed Jan. 27 deadline for legislation that would repeal Obamacare is slipping by and plans for repeal are “murkier than ever” and headed in the “wrong direction” wrote James Wallner, the Heritage Foundation’s vice president for research, in the Daily Signal, a website created by Heritage.

“Given this, President Donald Trump and congressional Republicans should reiterate their commitment to the full repeal of Obamacare,” Wallner wrote. “And they need to get to work by taking the first step in the process, which should be passing legislation to repeal Obamacare as soon as possible.”

CHS Chief Leads Discussion on Wall Street’s Healthcare Outlook

http://www.healthleadersmedia.com/leadership/chs-chief-leads-discussion-wall-streets-healthcare-outlook?spMailingID=10315063&spUserID=MTY3ODg4NTg1MzQ4S0&spJobID=1082253801&spReportId=MTA4MjI1MzgwMQS2

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After a tough 2016, market analysts say that this year they expect a better investment climate in many healthcare sectors.

 

Why some KC-area hospitals are still throwing their hat into ACA payment model

http://www.bizjournals.com/kansascity/news/2017/01/26/prime-healthcare-aco.html

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A Kansas City-area health network may benefit from its new designation through a pilot program created under the Affordable Care Act — if it isn’t repealed. As an accountable care organization (ACO), physicians affiliated with the Prime Healthcare ACO in Kansas and Missouri could benefit from cost-sharing incentives for Medicare patients.

Specifically, providers and the Centers for Medicare and Medicaid Services would split the savings from reducing costs for a patient through coordinated care, such as not ordering duplicate tests. Of course, ACO providers still must meet key quality metrics.

“It’s looking back at those procedures that have already occurred,” said Paula Ellis, chief nursing officer at Saint John Hospital, a Prime Healthcare affiliate in Leavenworth. “It’s really being a lot more mindful, and looking at all of the information that’s out there. It’s seeing where (the patient) is getting care that their primary care provider doesn’t know about.”

Prime Healthcare also owns Providence Medical Center in Kansas City, Kan., St. Joseph Medical Center in Kansas City, Mo., and St. Mary’s Medical Center in Blue Springs

While savings between different ACO providers have been mixed, Ellis said other markets under Prime Healthcare have found success. The California-based for-profit hospital operator launched its first ACO in California last year.

Its application for the Kansas City ACO model was granted on Jan. 1. It is serving about 10,000 Medicare patients who use Prime Healthcare physicians as their primary care provider.

“The model’s been out there for a few years,” Ellis said. “It has a track record.”

It’s worth noting that the future of ACOs, for the most part, is unknown. The model is part of the Medicare Shared Saving Program, established under the Affordable Care Act, to reduce costs and improve care. A substantial number of providers have adopted it; CMS reported 480 ACOs served a total of 9 million assigned beneficiaries as of January.

WEB BRIEFING FOR JOURNALISTS: REPEALING AND REPLACING OBAMACARE

Web Briefing for Journalists: Repealing and Replacing Obamacare

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With passage of budget resolutions in the House and Senate, Congressional efforts to repeal and replace the Affordable Care Act are underway. Key issues for Republicans in Congress and the Trump Administration have emerged around how quickly to move forward with partial repeal of the ACA through a budget reconciliation measure and whether replacement proposals should be considered simultaneous with a repeal debate. A variety of Congressional repeal proposals have been floated – including one by Rep. Tom Price, President Trump’s nominee for Secretary of Health and Human Services — but none have yet come up for a vote.

On Wednesday, January 25, the Kaiser Family Foundation hosted a web briefing for journalists to answer questions and sort through possible scenarios for repealing and replacing the ACA, including implications for coverage, the insurance market, the Medicaid program, and women’s health.

Panelists included Larry Levitt, senior vice president for special initiatives and co-executive director of the Foundation’s Program for the Study of Health Reform and Private Insurance; Usha Ranji, the Foundation’s associate director for women’s health policy; Diane Rowland, the Foundation’s executive vice president. Rakesh Singh, the Foundation’s vice president for communications, moderated.

Why risk adjustment is a crucial component of individual market reform

https://www.brookings.edu/blog/up-front/2017/01/25/why-risk-adjustment-is-a-crucial-component-of-individual-market-reform/

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The mantra of ‘Repeal and Replace’ has escalated in recent weeks, though what, specifically, the ‘Replace’ component might look like is still unclear. However, many of the current proposals include, at a minimum, some type of continuous coverage provision that allows people with chronic health conditions who have continuously maintained coverage to buy health insurance at standard rates. For example, Paul Ryan’s A Better Way proposal and Tom Price’s Empowering Patients First Act would each prohibit insurers from charging sicker patients more than standard premiums in the individual market as long as they have maintained continuous coverage since before becoming sick.

Such provisions are important to keep patients from seeing their health insurance premiums sky-rocket after becoming sick, which would defeat the purpose of insurance in the first place. However, these provisions also require that insurers sell policies to these patients at premiums that they know will not cover their expected health care spending, generating losses for the insurance company. On its own, this would create a situation where insurers have a strong financial incentive to avoid enrolling these sicker patients.

Risk adjustment combats disincentives to provide coverage for sicker patients

In order to mitigate these incentives for insurance companies to avoid sicker patients, policymakers will need to include a risk adjustment program in any replacement reforms that require insurers to issue insurance to any applicant (also known as “guaranteed issue”) and set limits on adjusting premiums to fully reflect an enrollee’s health status. Continuous coverage provisions are one example of such limits, but risk adjustment will be necessary to combat against adverse selection across a wide range of potential reforms.

A risk adjustment program would make behind-the-scenes financial transfers to insurers to adequately compensate them for enrolling these sicker patients when they are not allowed to charge the individual higher premiums. Risk adjustment will be necessary to promote a well-functioning market where private insurers compete based on the value they deliver and not simply by avoiding sicker patients.

Improving Quality and Value in the U.S. Health Care System

https://www.brookings.edu/research/improving-quality-and-value-in-the-u-s-health-care-system/

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Executive Summary

The U.S. health care system faces significant challenges that clearly indicate the urgent need for reform. Attention has rightly focused on the approximately 46 million Americans who are uninsured, and on the many insured Americans who face rapid increases in premiums and out-of-pocket costs. As Congress and the Obama administration consider ways to invest new funds to reduce the number of Americans without insurance coverage, we must simultaneously address shortfalls in the quality and efficiency of care that lead to higher costs and to poor health outcomes. To do otherwise casts doubt on the feasibility and sustainability of coverage expansions and also ensures that our current health care system will continue to have large gaps — even for those with access to insurance coverage.

There is broad evidence that Americans often do not get the care they need even though the United States spends more money per person on health care than any other nation in the world. Preventive care is underutilized, resulting in higher spending on complex, advanced diseases. Patients with chronic diseases such as hypertension, heart disease, and diabetes all too often do not receive proven and effective treatments such as drug therapies or selfmanagement services to help them more effectively manage their conditions. This is true for insured, uninsured, and under-insured Americans. These problems are exacerbated by a lack of coordination of care for patients with chronic diseases. The underlying fragmentation of the health care system is not surprising given that health care providers do not have the payment support or other tools they need to communicate and work together effectively to improve patient care.

While many patients often do not receive medically necessary care, others receive care that may be unnecessary, or even harmful. Research has documented tremendous variation in hospital inpatient lengths of stay, visits to specialists, procedures and testing, and costs — not only by different geographic areas of the United States, but also from hospital to hospital in the same town. This variation has no apparent impact on the health of the populations being treated. Limited evidence on which treatments and procedures are most effective, limited evidence on how to inform providers about the effectiveness of different treatments, and failures to detect and reduce errors further contribute to gaps in the quality and efficiency of care. These issues are particularly relevant to lower-income Americans and to members of diverse ethnic and demographic groups who often face great disparities in health and health care.

Reforming our health care delivery system to improve the quality and value of care is essential to address escalating costs, poor quality, and increasing numbers of Americans without health insurance coverage. Reforms should improve access to the right care at the right time in the right setting. They should keep people healthy and prevent common, avoidable complications of illnesses to the greatest extent possible. Thoughtfully constructed reforms would support greater access to health-improving care — in contrast to the current system, which encourages more tests, procedures, and treatments that are at best unnecessary and at worst harmful.

This report reviews the evidence on a range of payment and delivery system reforms designed to improve quality and value. It reaches several conclusions: