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Tag: Policy

HEALTH PLANS/TECH/POLICY: Health plans and brokers — pathetic, pathetic, pathetic

I’’m on my way to HIMSS today but in the meantime, more on my ongoing personal struggle to get health insurance…..

Remember that I was kicked out (or the association that I bought my insurance through was kicked out) from the PacAdvantage buying group? So my choices are to go back to the individual market or, luckily as I’m now “domestic partnered”, to pay some $450 a month for the rich benefit plan on my partners insurance.

So I finally got around to fixing myself short-term insurance while I’m being underwritten by Blue Shield and Health Net for standard  individual insurance. For the short term insurance from Blue Shield the application I initially started last year puzzled me because the common generic medication I take for gout wasn’t on the approved drug list (It costs $40 a year!!) but a whole bunch of much worse medications were! I’d saved my application from last year because it itself didn’t enable you to change the desired date of coverage but you could restart it and it would start on the next effective date. But if you went “back” to change the date, you lost all you’d put in. A stupid UI screw-up which I wrote about when it happened last year. When I re-continued my “saved application” it denied me. But I had in between talked with the Blue Shield people who told me that the drug list had been discontinued as part of the short-term program. So I started a new application (start counting how many I end up filling in) on eHealthinsurance, and got approved — or at least got accepted and later (with no new email informing me) got a form in the mail saying I was approved. Oh, and for the short term coverage, you can’t set up automated payment or credit card even thought you pay for the first month in advance online with a credit card. Instead, you have to send a check. Pathetic.

Then I started the next application for normal individual HDHP insurance with HealthNet, also on eHealthinsurance. It asked me a bunch of the same questions, none of which carried over from page to page. It even asks you to fill in the same doctor’s information on 3 different pages (it asks about conditions, then drugs, then visits — all were the same one shot visit to one doctor for me!!) It never gives you the chance to carry over the information or tick a box saying “same”. And of course nothing came over from the short-term application I’d just filled in, even though it’s all in eHealthinsurance’s database. The UI on the form and the user experience is pathetic.

Now of course I get an email from eHealthinsurance saying that HealthNet needs more info, and will be mailing me a form to fax back! So much for the “e” in their name.

As this was going on I’d called Blue Shield to ask about their guaranteed issue plan (Over $400 a month for dreadful coverage). Later on Blue Shield had a different agent call me to direct me to her website where I could download a PDF application, fill it in bt hand and fax it back. Don’t forget, AHIP tells us that this is one of America’s most technologically advanced health plans! Ten years ago they allegedly did a deal with Healtheon to help their customers apply and manage their benefits online—oh, how far we’ve come! Oh, and the PDF crashed my system because I didn’t have the latest version of Acrobat, so I had to download that too. Pathetic

And of course the joke is I am already a Blue Shield customer via the group plan (or was till the end of January) and am on the short-term product right now!  And I was a customer on their short-term product back in 2004 when I last had surgery. So I’ve been constantly covered by them since 2003. They could look in the claims database for everything that I’ve had in the past 3 years. But none of that information appears to be available. Pathetic

In the end I thought that I’d go back to eHealthinsurance rather than fill in a paper form. So I find the same plan and the same price as Blue Shield offered me direct, and applied for that. They of course wanted all the exact same information that HealthNet wanted. Of course all that information is in the eHealthinsurance system. The eHealthinsurance customer rep told me that it was fine to apply for multiple plans at once. I asked her if, when I gave the same information to a different health plan, would they underwrite me the same way and come back with the same price? She said, no they vary greatly.

BUT I could not transfer the information from the HealthNet form to the Blue Shield form even though it’s all in the same damn database! So I had to re-key it in. She told me that I wasn’t the first person to ask for that function by a long chalk. And once again I couldn’t even carry physician information over from page to page of the application, even though you can go via eHealthinsurance to HealthNet’s electronic provider directory to find out information on the exact physician. But you cannot import it into the application form. Pathetic.

Now the interesting part will be figuring out a) what else the plans think they need to know and b) what rates they will charge once they figure out that I had knee surgery in the past — even though it’s only a minor indicator of whether I’ll need it in the future.

Meanwhile, eHealthinsurance says that when you look at its plans it gives you a comparison between them, but it doesn’t even put the most important single feature of a HDHP on the front page— that is the maximum out of pocket (i.e. your maximum exposure if you have a catastrophic event). And it doesn’t even define the maximum out of pocket the same way when you click through to it — for some plans the number includes the deductible, sometimes it doesn’t.

I had an email conversation with the preeminent medical director working in the corporate benefits world about this exact topic. He told me that he came to realize what a mess this all was when he was unable to figure out what was the best option for his mother among the multiple competing plans with different premiums and benefits in Medicare Part D. If I’m in the top 1% of Americans on this topic he’s in the top one or two period. And he can’t figure it out.

This is a world of deliberately confusing plans and benefits, presented in a deliberately confusing way, taking advantage of none of the technology that makes our lives easier in other areas of business. Pathetic. pathetic, pathetic.

And it’s a world that many many more people will be heading for.

 

 

PHARMA/POLICY: Suggestions for advancing beyond indignation & conventional wisdom, by The Industry Veteran

Today I’m off to a meeting on Pay for Performance, so I hope I’ll have something riveting for you all later. Meanwhile, as I’ve overblogged (and been over-exposed) in the past week or so, I thought that this morning I’d leave you all with the dulcet tones of The Industry Veteran. As the scandal of pharma and med device companies bribing doctors has got serious enough that even the New York Times has noticed, today the Veteran’s thoughts turn to the issue of how big Pharma might be made to keep to the letter and spirit of whatever new guidelines eventually get suggested to them regarding physician “incentives”—and not simply ignored as the previous many go-rounds have been. As you may have guessed, the Veteran’s suggestions are a little, shall we say, unusual:

I guess the symbiotic corruption of Big Pharma and physicians has become part of the conventional wisdom if the staid editorial column of the NYTimes issues an admonitory tsk-tsk. Well a dog does have four legs and the sun rises in the east, so in good Times-Democratic Party fashion, it’s worth deploring this state of affairs and mentioning that, together, we can do better. Meanwhile Billy Joe Tauzin and the AMA’s Babbitts will again confirm Lincoln Steffan’s opinion concerning muckraking’s futility by showing the crooks how to avoid getting caught next time.

 

Beyond exposing corruption and pointing out contradictions within the American system of political economy, Steffans, Ida Tarbell and their colleagues provided negligible help in showing a way out. Your note on HSAs in South Africa reminded me that it was Steffans who visited collective farms in the Soviet Union and returned to say, “I have seen the future and it works.” Upton Sinclair turned to health foods and crackpot schemes in California before running a feckless campaign for governor.

 

To avoid a perpetuation of same-old, same-old in health care, allow me to offer some guidelines for regulation and punishment meant to guide the life-diminishing hands of lawyers and legislators.

 

First, let’s deal with the manufacturers. Capitalism works by essentially outsourcing the regulatory oversight function to the same private concerns whose activity requires such monitoring. This is true even in a so-called “regulated” industry such as health care. That’s not necessarily bad because the latitude it permits businessmen and their hirelings in science, law and elsewhere facilitates innovation and attention to consumer demands. Unfortunately, since the pursuit of unconscionable profits also beats ethical constraint every time (and “twice on Sunday,” as my barber on Sixth Avenue used to say), this outsourcing usually becomes a license to steal, maim and kill.

 

Now despite the many shortcomings of the Sarbannes-Oxley law (it was, after all, intended to make up the revenue shortfalls of big accounting firms in the wake of the Enron/Arthur Andersen auditing scandal), I do admire the fact that it recognizes corporations are not shapeless forces of nature. To the contrary these institutions represent the lengthened shadows of a few greedy bastards at the top and, accordingly, the law requires that these officers sign to the veracity of Sarbannes-Oxley statements under liability for criminal penalties. It is thus in pharmaceuticals as well. The CEOs in that industry generally made their abbreviated, Bush-like journeys from birth on third base to home plate by functioning as the most effectively devious, unscrupulous, alpha-males within their various launching milieus. For that reason legislation prohibiting manufacturers from bribing, improperly inducing or influencing physicians should be directed principally toward the fiduciary officers rather than shareholders’ earnings. Any agreements between the companies and their officers related to indemnifying or otherwise reimbursing executives for these financial penalties should be construed as efforts to defeat the statutes and held for naught.

 

Legislation on this matter should also recognize that in cases of the culturally middle class, a little shame administered in front of the country club peers, the trophy wives and the compliant secretaries goes a long way. In other words degradation rituals should be made integral parts of regulatory penalties. We’re talking more than just mandatory perp walks here. The executives who derive enormous satisfaction from preening around as the dominant males within their respective companies should literally have their pants pulled down. This means mandatory Internet publication of their three-sided, nude photos: front view, side view (to show the paunch beneath the $2,000 suits) and rear bent-over view (to be advertised as previews for other inmates).

 

Legislation drafters must also deal with the greed and narcissistic egotism of physicians on this matter. I believe remediation here is a far more pedestrian matter. Physicians generally regard the advance of damnation as consisting of more work, less pay, less discretion in their professional decision making, more clerical duties and less deference from their support staffs. For this reason penalties should make even casual transgressors realize their Dantean fantasies. They must receive sentences that oblige them to practice medicine in circumstances that turn to ashes every reason that led them to medical school and their residencies.

 

Instead of providing scientific interest, the work of bribe-taking physicians must become mind-numbing drudgery. Their well-being must be placed into the hands of bulldog secretaries, each lacking the ability to add a column of four numbers. Far from receiving the fawning deference of women or the respect of men, they must be made to work in post office surroundings that all but brand large L’s on their foreheads.

 

Legislation can achieve a general deterrent effect from these punishments by requiring that once offenders are released, they must discuss their experiences with colleagues in detail after resuming private practice.

 

I offer the above suggestions in the interest of enlightened penology, which as it turns out, is equivalent in policy terms to better health care.

POLICY/HOSPITALS: Outsourcing West Virginia’s Health Care

THCB can’t claim to focus much on health policy (or anything else going on) in West Virginia. Bob Coffield, who writes the Health Law Blog, does a bit more, probably because he lives there. And he picked up this very interesting one. Apparently there’s a bill in the legislature that will allow (and presumably eventually if it’s going to have an impact, force) state employees to go overseas to get elective care. Pretty interesting stuff, and it means that hospitals there may have to compete with those in Thailand and India on price. Gulp.

PHARMA/POLICY: Anyone know about best price?

This is pretty interesting, and it relates to real wonkery AND to more stretching of the truth by my favorite health plan lobbyist, Karen Ignagni. In the article Drug firms to get profits windfall, a Univ of Minnesota Professor estimates that because the dual eligibles are no longer in Medicaid — they’re the ones that have been automatically moved to Medicare — and therefore they don’t have to offer "best price", they can charge higher prices to the taxpayer for their drugs.

The boost in profits comes from a shift in the drug coverage of 6.4 million poor and elderly people from Medicaid to the new Medicare drug benefit. Unlike Medicaid, which requires drug companies to charge their lowest or "best price" for medications, the Medicare program relies on competition among private drug plans to keep prices low.By eliminating the need to discount drugs for the government, the industry can now pocket the savings. "The net effect over 10 years is probably closer to $40 billion in extra profit," said Stephen Schondelmeyer, a pharmaceutical economics professor at the University of Minnesota. A little-known study by the Prudential Equity Group from June 2005 estimated that the makers of three anti-psychotic medications stand to benefit most from the change, taking in roughly $1.1 billion in new profits on products used by the 6.4 million who are Medicare’s most poor and frail patients.Experts say drug prices in the Medicare program will be higher this year than prices under Medicaid because the private Medicare drug plans won’t likely match the price discounts achieved by Medicaid, the joint state and federal health program for the poor.

Now hang on a second. This raises two key points. Not one week ago, Karen Ignagni said that the exact opposite was true. State medicaid directors were apparently telling her that they were getting worse deals than the private plans she represents. So which is true?  Well guess who I’m more likely to believe. After all, did PhRMA pay all those political contributions to end up losing money

And then one thing that I just don’t know. Suspend your disbelief and pretend that at least in some cases for some drugs, Ignagni is telling the truth. Presumably best price still applies to the rest of the Medicaid program. Are deals between Pharma and Medicare Part D PDPs exempt from Medicaid best price? Anyone know?

POLICY: Kevin Drum. Kevin Dumb?

I know he’s got a lot on his mind but leading liberal blogger Kevin Drum writing in his blog at The Washington Monthly actually wrote this in his post about HSAs:

These proposals sound pretty good, don’t they?

Did he start channeling Ron?  Or was he just too lazy to go read the reams and reams of stuff written about HSAs, and figure out their one or two tiny flaws…

Who knows, but plenty of his commentators are ripping him a new one.

PHARMA/POLICY: Richard Paey’s case hits 60 Minutes

Richard Paey was put in jail for 25 years basically taking pain pills, so that instead the state in Florida can fund his medical care. Oh the prosecutor said that he forged prescriptions, even though at first he wanted to go after his doctor.  Well this shameful attack on a wheelchair-bound patient is finally getting some attention. Last Sunday is made it onto 60 Minutes.

Much of the thanks for this must go to John Tierney from the New York Times, who continually writes about the craziness of our war on patients and doctors. He pointed out in his column that the prosecutor is an earnest man who genuinely believes that he is doing the right thing, and claims that he made no medical judgments even though his entire case is based on his made-up "fact" that "no one could take 25 pills a day". He reminds me of the concentration camp guard, who was sure he was just following orders.

You’d think that, as Jeb Bush has a daughter who herself was in trouble for forging prescriptions, and apparently was just a regular addict, the wise Christian governor of Florida could find a little mercy in his heart.

 

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