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From Chatter, To Ideas, To Action: Humana’s Change Now 4 Health Campaign

You may be dubious that a big health insurer has much to add to the policy debate. But buried inside many of the giants are some interesting people indeed. Case in point Humana and its attempt to start an open discussion about reform. Here’s Fard Johnmar to give his perspective.

In late 2003, Congress funded a potentially powerful initiative designed to engage ordinary Americans in a dialogue about health reform.  This project, The Citizens’ Health Care Working Group (CHCWG), was funded along with the controversial Medicare Part D program.  It was designed to ignite a national public debate about how to improve the US health system so that “every American can obtain quality, affordable healthcare coverage.”  Beginning in 2005, 14 people, handpicked by the US Comptroller General held a series of meetings with ordinary Americans (the Secretary of Health and Human Services (HHS) served as the 15th member).  In addition, thousands of Americans chimed in online with their ideas for changing the system.  They made the following recommendations: -Establish Public Policy That All Americans Have Affordable Healthcare-Guarantee Financial Protection Against Very High Healthcare Costs-Foster Innovative Integrated Community Health Networks-Define Core Benefits & Services For All Americans-Promote Efforts To Improve Quality Of Care & Efficiency-Fundamentally Restructure The Way End-of-Life Services Are Financed & ProvidedIn September 2006, the Working Group delivered its recommendations to President George Bush.  In March, the president responded by rejecting CHCWG’s proposals.  HHS Secretary Mike Leavitt explained the president’s decision, saying that Bush agreed with many of the Working Group’s goals.  However, he “supports an approach emphasizing consumer choice and options . . . rather than mandates and government intervention.” Fundamental Healthcare Reform: Forever Stuck On Neutral? Bush’s response to the Working Group’s proposals highlights a key barrier to fundamental healthcare reform.  There are serious differences between many groups on how to radically change the system, which creates almost insurmountable logjams.  As William Roper, dean of the University of North Carolina School of Medicine, observed in the latest edition of Health Affairs: “The lesson of time, at least in quarter-century increments, is that the United States is fundamentally conservative in its view on changing its healthcare system.  Despite talk then and now by health policy elites about ‘fundamental reform,’ most changes in the U.S. healthcare system have been incremental.”  I agree with Roper.  Unfortunately, fundamental change will remain stuck on neutral for the foreseeable future.  Yet, we still have urgent problems that demand answers and the clock is ticking – in more ways than one.  In another essay published in this month’s edition of Health Affairs, Leonard Schaeffer suggests the usual suspects are running out of time to shape policy.  He thinks, “budget hawks and national security experts will eventually combine forces to cut health spending, ultimately determining health policy for the nation.” We must not allow this nightmare scenario to come to pass.  Although CHCWG Hit A Brick Wall, Is People Power Still The Answer? Although CHCWG failed to gain traction, getting the masses involved in reform efforts is a good idea.  However, we need to quickly move from attempting to broadly shape health policy to immediately implementing concrete ideas for change.  Fortunately, enterprising individuals, corporations and government agencies from across the country are chipping away at the system’s problems.  Unfortunately, these ideas often do not catch on nationwide because we don’t know about them.  This is where Humana comes in.  On November 19, the health company will officially launch Change Now 4 Health (CN4H), a broad, grassroots coalition committed to improving the nation’s healthcare system through immediate action.  Although launched in the shadow of CHCWG, Humana is not reinventing the wheel.  Rather it is: -Using Web 2.0 tools including blogs and online forums to form communities of change-oriented individuals to address specific problems-Doing its best to encourage rapid action rather than more recommendations for change that may or may not be implemented by policymakers -Using the wisdom of crowds to focus national attention on solutions to our shared problems -Allowing the community to come up with ideas rather than trying to control the conversation Of course, the biggest question is whether Humana can credibly manage this effort.  If it were trying to control CN4H from above, the answer would be no.  Instead, the company is doing something revolutionary (for the health industry).  It is providing the platform for CN4H, but leaving it up the community to determine its own direction.  Humana is putting its trust in the collective expertise of the public to determine its own course. How Will CN4H Move Beyond Talk To Action? Ultimately, Humana hopes to generate concrete ideas by facilitating three levels of online dialogue about reform:-Level 1 – High Level Issues: Humana has recruited a number of individuals (I am one of them) to develop blogs on key problems facing the health system.  While we are being compensated for our time, Humana is leaving editorial control of the blogs to us.  My blog focuses on how we can help consumers make better health decisions.  Humana has not edited or censored any of my blog posts. –Level 2 – Concrete Ideas For Change: This month, Humana will launch a series of online forums where individuals can discuss ideas for change.  –Level 3 – Idea Submission & Discussion:  To encourage public comment, Humana will produce an online form where people can submit their ideas for changing the system – today.  These ideas will be funneled into the bulletin boards and discussed on the community blogs.  Also, community participants will be able to vote on ideas. Spreading Ideas For Change Humana has committed to help spread the ideas generated by the community in a number of ways.  Most importantly, the company will fund the production of an e-book, tentatively titled “50 Ideas For Changing Health Today.” The fifty ideas receiving the most votes by the community will be featured in the book.  This free publication will be made available on the CN4H Website and major online book retailers, such as Barnes & Noble.com and Amazon.com.  Humana will also distribute the book to stakeholders in both the public and private sectors.  CN4H: Putting The Wisdom Of Crowds To Work I decided to become involved with this effort for many reasons.  (And, although it is nice to be compensated for some of my time, money had very little to do with it.)  Most importantly, I am a firm believer in the power of the wisdom of crowds to solve the most complex and vexing problems – health reform certainly qualifi
es.  In addition, I have been frustrated that previous efforts to change the health system have resulted in a lot of sound and fury, but very little action.  We need reform now, and our collective wisdom and intellect can make a real difference.  I encourage everyone reading this post to: –Visit The CN4H Community Website: Currently, the site features blog posts, but Humana will be deploying additional tools and features at and after the program’s launch –Spread The Word:  We are relying on the online community to shape the program.  Please help us by spreading the word about CN4H –Discuss, Submit & Vote On Ideas: Help make the e-book “50 Ideas For Changing Health Today” a reality by discussing, submitting and voting on ideas generated by the community I look forward to seeing what we can do together. 

HEALTH PLANS: Trading health plan stock rumors for fun & profit

Just when you thought stock action in health plans was all dull, along comes a little fun. Wellcare’s chart of course looks about as good as the average stock chart when the Feds raid. Whatever the company says, Wall Street believes it’s bad news. $120 to $25 in 5 days is Enron-type numbers, and one rumor is that some directors were selling not a couple of months back, but a couple of weeks.

Wellcare

But the fun continues. Humana is the “big” health plan that’s made the greatest push into Medicare Private FFS where most of the abuses have occurred and it’s also huge in Florida. (I don’t have to explain that statement I hope). That was enough for one analyst to say on Friday that they heard the sound of FBI sirens too, and the stock fell about 5% in a few minutes, before recovering when it was confirmed that the sirens were in his head. (OK, maybe the FBI doesn’t use sirens!)

Humana

But then Humana released some great financial results on Monday and the stock rallied on the opening up 5% from where it had been, but then ended up falling more than 10% on the day. Why? Well perhaps its because when some smart types look at the numbers they notice that the MLR fell from 84% to 81% in a year. So first, what happened that there was such a big fall? And second, if most of this increased profit comes from the Medicare business, why would the end-payer (you and me represented by Pete Stark et al) put up with it?

This of course makes Humana a fun stock for the swing traders on the message boards. But I’m not so sure it makes for great public policy.

HEALTH PLANS: Health Plans Behaving Badly

I spent Monday lecturing a bunch of health plans about their bad behavior and how that had to change or they’d eventually be put out of business. So how might that not play out? Here’s my best guess up at Spot-on. It’s called Health Plans Behaving Badly.

It’s not been too pretty a picture for America’s health insurers lately. Sure they’re still turning decent profits, but for the past two years their stocks have barely been matching the S&P 500 Index. What went wrong? Well, you can blame Wall Street. The Street is concerned with two things. Money now and money later.

Since 2001 the big health plans have managed to increase the percentage they keep of fast-growing health care premiums (which have been going up at 3 to 4 times the rate of inflation), a number known to stock analysts as the as the MLR. It used to be that for most big insurers roughly 82-87% of premiums went out the door to pay for actual doctors, hospitals, drugs et al. Now the MLR is generally below 80%, and in some cases below 75% meaning less money’s out the door and more is on the bottom line of the health plans.

But the health insurer party that’s been going on for most of this decade may be coming to an end. But perhaps being busted by the cops and being told to tidy the house might be the best thing that ever happened to the insurers. Let me explain.

Read the rest and come back here to comment as ever.

POLICY/HEALTH PLANS: Why Health Plans need to change their business model

A reporter called about the PNHP which is running single payer ads attacking Hillary, Barrack and John Edwards. Why are they doing it? Because they want to make sure those guys don’t give into the insurers. Realistically there will be a role for insurers in any reform scenario, so it has to be the right kind of role. And that means their role has to change, alot!

Why? Look at this quote

"[Senator Clinton’s proposal] would have negative implications for managed care companies, since it would limit their ability to manage risk in their most profitable book of business (individual and small group), likely causing margin compression."

– Morgan Stanley analyst Christine Arnold tellsAIS’s Health Plan Week

That is dead right and also dead necessary. The days of Golden Rule taking over United are not over by any means, but they need to end some time. The health plans have to start to be responsible citizens. That means telling Wall Street to go fish for now. Are you interested, Karen? The long term alternative is not pretty.

HEALTH PLANS/TECH: Selling out a name–et tu Harvard?

Over at HISTalk there’s frequent criticism of "awards" that are handed out by analysts to vendors, and frequent assessment of which consultants can be trusted as independent, as opposed to which ones will "sell" an award. Frost and Sullivan gets a particularly bad rap over there on the latter issue.

Which all struck me as a little strange when I saw this press release. South Carolina Blues has won an award for its pre-certification technology. Who bestowed this honor?  Harvard School of Public Health’s Dept of Health Care Policy.

BlueWorks is a partnership between the Blue Cross and Blue Shield
Association and Harvard’s Department of Health Care Policy that recognizes
innovative Blue Cross and Blue Shield companies working with doctors and
hospitals to increase the efficiency and consistency of care delivery
nationwide. <SNIP> Since 2004, Harvard Medical School’s Department of Health Care
Policy has named 35 Blue Cross and Blue Shield programs as BlueWorks winners.

Of course all major Universities collaborate with business, but I’m not sure I recall one going into the "handing out prizes" part of consulting. Anyone know any more?

BEST OF: Interview with Shawn Jenkins, CEO BenefitFocus

When I was contacted by the PR folks representing BenefitFocus I found out that they’d quietly put into place the original 1995 business plan of Healtheon–connecting employers and health plans electronically around enrollment and billing. (Remember The New New Thing?) Ironically enough some of the plans that announced that Healtheon was going to do that with them in 1996 are just getting online with BenefitFocus now! So I thought that it would be pretty interesting to talk with Shawn Jenkins, BenefitFocus’ CEO about their core business, which has been growing like crazy in the last couple of years.

Then I found out that they were also launching a Web2.0 media group including a new health care YouTube-type video site called ICYou (get it?), hiring a star local news anchor from Charleston SC, Nina Sossaman-Pogue, and creating a PHR, and that they also wanted to come sponsor and video the Health2.0 Conference. So then I really wanted to talk with Shawn!

Here’s the interview. (We had a slight technical hitch in the middle but I think my editing skills have overcome it!).

HEALTH PLANS: Who said this? No, really

But if you take five people who didn’t get coverage through their employer or were self-employed and you ask them, ‘What’s the No. 1 thing that keeps you awake at night?’ I think a large percentage would say health care. What we’re trying to do is create a better environment for the consumer, the provider and the payer. To all work together.

One very scummy company is launching a PR offensive. I’m sure there are plenty of people who’ve bought HealthMarket’s quasi-fraudulent products who aren’t sleeping too well at night.

A Broker Afterthought: An Acknowledgment, An Apology and A Criticism – Brian Klepper

In the comment section of my post on broker compensation, KWeller properly points out that 1) some states regulate broker commissions more stringently than Florida does and 2) I do a disservice to brokers who practice without financial conflict. He is right, and I apologize to anyone whose practice is at odds with my description.

On the other hand, as several other commenters noted, the practices I described are well-known and widespread, and they occur because the brokerage profession does not self-regulate very effectively. (If it makes anybody feel better – it shouldn’t – neither do many other groups of health care professionals.)

So if you’re not one of the broker’s I was referring to, please excuse me then for pointing to the poor behavior of your colleagues. I wouldn’t have tarred you with the same brush if you had held your fellow brokers to a higher standard of practice.

Consultants to Hospitals: Prepare for Transparency – Brian Klepper

We must view and treat the community as the "owner" to whom we are fully accountable. Aggregate financial performance data, aggregate productivity performance and aggregate quality and patient satisfaction data belong in the public realm. How else can consumers make a decision to…support us?

— Rich Umbdenstock, President and CEOAmerican Hospital AssociationInterview in Hospitals and Health Networks, 10/18/04

Most health care professionals sincerely believe in performance transparency, especially if it applies to someone else. Three years after the encouragement of Mr. Umbdenstock and similar pronouncements by colleagues throughout the industry, many physicians, health plan executives and hospitals executives remain extremely resistant to public reporting of pricing and performance.

Norton Healthcare in Louisville KY has developed one of the most progressive and forthright quality reporting efforts in the country. On their site, they provide their performance figures on a range of indices, indicating where they fall above or below national benchmarks. (You can just imagine how thrilled their staffs were with this decision to "bare all." ) The home page for their quality section lists six principals that drive their reporting.

   1. We do not decide what to make public based on how it makes us look.

   2. We give equal prominence to good and bad results.

   3. We do not choose which indicators to display.

   4. We are not the indicator owner.

   5. We display results even when we disagree with the indicator definition.

   6. We believe unused data never become valid. 

Norton sets a fine example for hospitals. But now, as demands for transparency become more compelling, the mega-consulting firms, always quick to lead the way and claim credit once a trend has been firmly established, are throwing their hats into the ring as well, hoping to provide guidance for tidy if exorbitant sums.

And so it is not surprising that the consulting firm Grant Thornton, in its spring newsletter Health Care Rx, has a thoughtful, pragmatic article urging hospitals to review and potentially change their pricing, document justifications when necessary, and generally take steps to ensure that they’re prepared as transparency efforts become irresistible. Its a good piece and, for hospital execs, well worth a few minutes time.

Managed Care Redux – by Brian Klepper

Like democracy, managed care is a great idea. It’s just that its rarely been tried.

Even so, my guess is that its about to re-emerge in a new, improved form, and possibly with some other name. If the signs around us now have any meaning, it will be different than our experience of a couple decades ago, and much truer to the original principles and possibilities that first caught our attention.

Last week the New York Times’ David Leonhardt ran another pop health economics piece, exploring several presidential candidates’ notion that the savings captured by providing better care could fund the uninsured. He explains better care as really being prevention – making sure that patients get services that stave off illness – and better management of the care process once they do get sick. And then, quoting a variety of health care experts, he takes issue with the notion that these approaches actually produce returns-on-investment. The problem, you see, is that while you may save money on the diabetic who avoids hospitalization to get his foot removed, you’re spending money taking care of all those diabetics who wouldn’t ever have had a costly problem.

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