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How the “Public Option” Became Just Another Fuzzy Buzzword

In an earlier post, I criticized managed care proponents for promoting concepts defined only by the aspirations of their proponents.  HMO, ACO, “medical home,” and “patient-centered this and that” are examples.

The “public option” (PO) is the latest example of a buzzword defined only by the aspirations of its proponents. The PO, first introduced to the public a decade ago by Jacob Hacker, Democratic presidential candidates and advocates of what would become the Affordable Care Act, has been revived by Democrats over the last five months. [1] Hacker, Hillary Clinton, Barack Obama and others say a PO would reduce premium inflation. But they refuse to define the PO, which makes it impossible to determine whether it could survive, much less reduce premium inflation. It’s not even clear whether proponents are proposing a PO open to all Americans or just to those who shop on the state exchanges established by the Affordable Care Act. The best they can do is say the PO will be “like Medicare.” That’s not a definition. That’s an aspiration.

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The MACRA FAQ

Speaking of frequently asked questions, THCB will be collecting yours this fall going into the New Year.  Send us (or tweet) your questions about MACRA, value-based care and payment reform and we’ll publish them. While much of our coverage of payment reform centers on the big picture issues around the Affordable Care Act, the what-ifs and the whys and why nots, our readers also want practical advice and insight on how best to manage the transition to this important new payment model.

If you’ve had an experience with an early ACO you’d like to tell us about, feel free to write. You can also post your comments in this place. Be sure to include your organizational affiliation if you’d like credit for your ideas, although anonymous contributions will be accepted as always.  To get started, you can check out the online session on  MACRA Frequently Asked Questions here. Come back to THCB for posts in the weeks to come. 

Disrupting Deductibles: An Innovative Approach to HDHPs

screen-shot-2016-11-02-at-7-01-57-amHealth plan deductibles are on the rise in a big way. Deductibles, or the amount of money members must pay out-of-pocket before their health plans kick in, have soared a whopping 63% over the last five years. This is compared to the modest 19% growth in health plan premiums during the same time period. Rising deductibles represent a shift in who is being exposed to financial risk in healthcare. The burden of the spiraling healthcare cost problem in the United States is being shifted away from insurers and employers and more and more upon the shoulders of individuals and families in the form of out-of-pocket payments.

Insurers construct deductibles into their health plans as tools to prevent members from spending more on healthcare than they truly need. They reason that if members have ‘skin in the game,’ they will prudently shop around for reasonably priced healthcare providers, and not purchase more healthcare goods and services than necessary. Continue reading…

Medicare Advantage – the Cup that Spilleth Over

I was asked to see an unfortunate elderly man – Harry – one afternoon.  He had multiple coronary stents placed for coronary disease over the course of the last ten years, and after presenting with difficulty speaking, was found to have a brain tumor.  The neurosurgeon was hoping I could provide some reassurance about how healthy his heart was to undergo an operation.  An assessment revealed him to be high risk for a coronary event, and I had a lengthy discussion with the surgical team, and the patient, who elected to proceed with the surgery.  Three hours after the surgery, the nurse practitioner taking care of the patient messaged me to tell me his heart rate was slow – ‘in the 30’s’.  I was driving to another hospital, and when stopped, messaged back asking for an electrocardiogram to be sent to me. A quick glance at the image on my screen had me turning around.  There are three major arteries that feed the heart. One of Harry’s arteries had closed off.

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The Perversion of Fiscal Federalism: Daniel L. Hatcher’s, “The Poverty Industry: The Exploitation of America’s Most Vulnerable Citizens”

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It’s not that we do not know that Medicaid and Medicare fraud is rampant.  A 2012 estimate by the former CMS administrator, Donald Berwick, estimated the amount at $100 billion annually.  Nor are we unaware, that drug companies routinely pay massive fines for illegal business practices: eight firms have paid in sum over $11.2 billion in civil and criminal fines since 2010.  Beyond these issues what is possibly most disturbing about the numerous inter-related health and human services issues “The Poverty Industry” raises is Professor Hatcher’s detailed discussion of how state human service agencies, in partnership with private contractors, have monetized poverty or turned vulnerable populations into a source of state revenue.  As Hatcher says in his introduction, states are, “strip-mining billions in federal aid and other funds from impoverished families, abused and neglected children and the disabled and elderly poor. ” 

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A New Kind of Payment Mechanism Targeting Social Determinants of Health?

It’s been established that an effective way to manage an individual’s health is to address the root cause of health complications, known as social determinants of health (SDOH).  Unfortunately, interventions that address SDOH often exist outside the scope of the traditional healthcare payment system. 

There is a relatively new methodology that can be used to increase spending on SDOH while transparently enforcing accountability and outcomes. Social impact bonds, also known as  “pay-for-success” models, are multi-stakeholder performance-based contracts.

The five key stakeholders and their roles are as follows:

1) Service Provider:  Agrees to conduct a program designated to yield a future outcome that is valuable to the payer.  (Usually a nonprofit organization.)

2) Investor:  Provides up-front working capital for the service provider to channel toward the designated program.  In exchange, the investor will receive a “success payment” if the committed outcome is produced on schedule.

3) Payer:  Commits to pay the service provider a “success payment” when the specified outcome is produced.  (Usually a government agency.)

4) Intermediary Organization:  Facilitates the SIB contract, establishes payment and financing terms, and supervises the service provider’s program.

5) Independent Evaluator:  Determines if the committed outcome was achieved upon conclusion of the contracted period.

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Et Tu, Dr. Noseworthy?

MACRA and the New Quality Payment Program: Most Frequently Asked Questions

November 2 | 2-3 PM EST      / With THCB 

On Oct. 14 the Centers for Medicare and Medicaid Services (CMS) released detailed regulations for implementation of the Medicare Access and CHIP Reauthorization Act (MACRA). With so many changes to the Merit-Based Incentive Payment System (MIPS) and the Advanced Alternative Payment Model (APM) track, we at Health Catalyst have heard many questions and comments. This is understandable, as the substantial 962-page proposal has grown to the 2,398-page final rule. Also, since nearly all providers will be subject to the new Quality Payment Program (QPP), understanding MACRA and what it means for providers is imperative.

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Premium Hikes in the Exchanges: Not Good News, But Not the End of Obamacare Either

OK.  Yes, this is bad.  The Obama administration is being disingenuous if it tries to spin it any other way.   And, as has been clear for several months, this hands Hillary a “nasty” issue (pun intended). 

The “this,” of course, is the administration’s announcement on Oct. 24—after weeks of speculation and anticipation—that premiums in the exchanges will rise by an average 22% for 2017 coverage (if both state- and federally-run exchanges are included in the count.)

Despite the fact that tax subsidies will significantly soften the blow for the vast majority of people buying health insurance in the exchanges, millions of families will still be adversely affected.  

Specifically, about 2 million people who will buy coverage through the exchanges in 2017 will not get subsidies because their incomes are too high.  You could argue: hey, they can afford it.  But it’s still a pretty big hit when your monthly premium goes from $500 a month to $625.   Continue reading…

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