The Future Of Delivery System Reform

http://healthaffairs.org/blog/2017/04/20/the-future-of-delivery-system-reform/

Over the past several years, the federal government has put billions of dollars into a variety of programs aimed at improving the way health care is delivered. The Affordable Care Act (ACA) authorized a broad agenda of reform projects, including accountable care organizations (ACOs), bundled payments, value-based purchasing, primary care initiatives, and other payment and service delivery models. The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015 established new ways of paying physicians intended to promote high-quality patient care.

What will happen to these initiatives under a Congress where Republicans are still seeking to enact major new health reforms and a president who could aggressively use authority granted by the ACA to make sweeping changes in Medicare and other health programs? Does this spell the end of delivery system reform, or could this be a new start with a greater potential to promote efficient and effective health care?

The prospect of ACA repeal has raised concerns among advocates, who argue that the enactment of Medicare-led efforts to promote higher-value care represents a real turning point in the battle to reduce waste and inefficiency. They fear that any reversal of the ACA framework would be a setback to the cause of lower costs and higher quality.

Those fears are overblown. There is bipartisan agreement on the goal of promoting more efficient and effective health care. MACRA, which is aimed at improving the value of physician services through payment changes, was enacted on a bipartisan basis. The debate is over the best way to accomplish the goal, not the goal itself.

We agree that it would be unwise to jettison entirely the delivery system reform provisions of the ACA, but their demise would not be the end of efforts to improve US health care. Rather, we see those provisions as far less consequential than their advocates claim, yet they can serve as departure points for putting in place more effective changes that provide room for private initiative and consumer preferences alongside changes in Medicare’s payment systems.

Summing Up

The cost of health care in the United States has grown rapidly for many years, typically well above growth in the overall economy. Those high costs have not guaranteed high-quality care or good patient outcomes, and our delivery system remains inefficient. What is needed is a process of continuous improvement in the efficiency and quality of the care delivered to patients. That is the core belief motivating the delivery system reform effort, which should be continued even as important features of the ACA come under review.

The key question is how best to pursue more cost-effective care delivery in the United States. At the moment, the federal government is trying to use its leverage to bring about greater efficiency, employing its regulatory powers under the Medicare program. That approach, while understandable, should be amended to make room for more private initiative and consumer incentives. Those are the driving forces for productivity improvement in other sectors of the national economy, and they should be harnessed to produce better outcomes in health care as well.

 

The Lessons of Obamacare

http://www.vox.com/policy-and-politics/2017/3/15/14908524/obamacare-lessons-ahca-gop

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On January 6, President Barack Obama sat down with us for one of his final interviewsbefore leaving the White House. The subject was the Affordable Care Act — the legislation that has come to carry his name and define his legacy.

It was strange circumstances Obama found himself in. He was leaving office an unusually popular president, with approval numbers nearing 60 percent. But his most important domestic achievement was imperiled. Republicans had spent years slamming Obamacare for high premiums, high deductibles, high copays, and daunting complexity. Donald Trump had won the White House in part by promising to repeal the ACA and replace it with “something terrific.” Both houses of Congress would be controlled by Republicans who appeared set to carry out his plan.

But over the course of the next 70 minutes, it became clear that Obama didn’t think they would get the job done. If he sounded unexpectedly confident, it’s because he believed the wicked problems of health reform — problems that bedeviled him and his administration for eight years — would turn on the GOP with equal force.

“Now is the time when Republicans have to go ahead and show their cards,” he said. “If in fact they have a program that would genuinely work better, and they want to call it whatever they want — they can call it Trumpcare or McConnellcare or Ryancare — if it actually works, I will be the first one to say, ‘Great; you should have told me that in 2009. I asked.’”

Two months later, the release of House Republicans’ replacement plan — the American Health Care Act — has made Obama look prescient. The bill quickly placed Republicans under siege from both the left, which has found more to like in Obamacare as its survival has become threatened, and the right, which attacked the replacement as unrealistic and ill-considered, and, most damning of all, as “Obamacare 2.0.”

The biggest problem Republicans face, though, isn’t from activists in either party. It’s from the tens of millions of Americans who now depend on Obamacare, and their friends, families, co-workers, and neighbors. They have been promised a replacement that costs less and covers more, and the GOP’s plan does neither.

According to the Congressional Budget Office, the AHCA would throw 24 million people off health insurance over the next 10 years and leave the remnant in plans with higher deductibles, higher copays, and less coverage. The law would let insurers charge older Americans 500 percent more than younger Americans, and the sparer subsidies wouldn’t adjust to the local cost of insurance coverage, and thus would be insufficient in many areas. This is not the “something terrific” Trump promised, nor the kind of health care that polling shows Americans want.

We are reporters who have covered health care, and the legislative ideas that became the Affordable Care Act, since before Obama’s election. In the course of that reporting, including recent conversations with Obama and dozens of elected officials and staffers responsible for the Affordable Care Act’s design, passage, and implementation, we have unearthed several lessons from the law, which current and future health reformers should heed.

At the moment, Republicans are ignoring most of them.

 

Cartoon – Who do you think is in charge here anyhow?

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