Thursday, February 12, 2015

That Was The Week That Was - Issue 48

A look back at the week's health policy news with a focus on ACA implementation

“The only constant in life is change” – Heraclitus

This week I present to you Issue 48 of That Was The Week That Was. And with mixed emotions I write to tell you that the last edition will be Issue 52 (to be published on March 13).

I cannot thank the Maine Health Access Foundation enough for supporting this publication. Through their support I have been able to, as my wife says, read more about healthcare than is probably good for me. It has been a tremendous learning experience and a lot of fun. However it’s time for me to move on to my next adventure.

Like John Stewart (that other guy who announced this week he was leaving his current gig), I’m not yet sure what my next step will be. I’m interested in moving back to a full-time position related to health policy, either here in Maine or elsewhere. For those of you not familiar with my background, I spent 20 years working in various capacities for Mercer Human Resource Consulting (employer-sponsored health care). Since coming to Maine I worked at Health Dialog, where I created a new department - The Office of Program Coordination, and was the Policy Director at Consumers for Affordable Health Care. You can read more about me on my LinkedIn Profile. If any of you have any thoughts or suggestions, please let me know

In the meantime, we still have a month together that will include the wrap-up of open-enrollment, the Supreme Court hearing oral arguments on the subsidy case, and I’m sure many surprises. So without further ado, here is this week’s issue where we look at an ACA replacement plan, more on the subsidy case, open enrollment ending, Medicaid expanding or not, measles, provider consolidation, end of life and more. Here we go.

ACA: Opposition
Last week we took an initial look at the “replacement” plan introduced by Burr/Hatch/Upton. Now other smarter people have taken a more detailed look and have also found it lacking: “The Hatch-Upton-Burr plan claims to provide affordable coverage and improved access to care as a replacement for the Affordable Care Act. But relative to current law, the plan would likely disrupt existing coverage for millions of people — including many poor beneficiaries who rely on Medicaid today — and cause many of them to become newly uninsured or underinsured. It would move the United States backward, toward the poorly functioning individual market that existed prior to health reform.” (Republican Health Plan Would Cause Millions to Lose Current Coverage and Add to the Ranks of the Uninsured and Underinsured). 

And this: “And there is a deeper lesson. One should not be fooled by slogans and generalities. One has to examine details in order to know whether a plan is or is not a basis for negotiation. Make no mistake—details of Obamacare do need fixing-- but those repairs involve filling holes in coverage, not making more holes. It requires making benefits more generous, not less. The Burr-Hatch-Upton plan proposes to move in the wrong direction. Such a plan cannot serve as a basis for negotiation.” (Not Ready for Prime Time: The Burr, Hatch and Upton Obamacare Proposal)

ACA: Court Cases
Lots of talk this week about the subsidy case (King v Burwell). With oral argument less than a month away, the media is taking stock of all the briefs that have been filed. First let’s note that “… not a single business group—not the US Chamber of Commerce, not any of the health industry companies and trade groups that opposed the law when it was being drafted—has presented a brief endorsing this lawsuit.” (America's Largest Health Care Company Tells Supreme Court That Anti-Obamacare Argument Is "Absurd")  In addition to no businesses supporting the suit, many have filed defending the existing subsidies: “Among those filing amicus briefs defending health reform are HCA, the American Hospital Association, America's Health Insurance Plans, the National Alliance of State Health Co-ops, the Catholic Health Association of the United States, the American Cancer Society, and the National Association of Community Health Centers.” (Backing Obamacare Ahead of Supreme Court Hearing).

Also, more theorizing about the case itself. Starting with a new email unearthed showing intent of the staff that drafted the bill: Key Premise Of Obamacare Lawsuit Contradicted By Email Senate Aide Sent In 2010 “The premise of the latest legal attack on Obamacare has always been shaky. An email that a key Senate staffer wrote in January 2010 would appear to make it even shakier.”

And these two (warning, legal theorizing ahead), the first deals with federalism: “When it comes to the exchanges, however, the ACA is not a conditional spending program. And it’s not a close call: the ACA doesn’t look like any other conditional spending program in the U.S. Code. … For starters, Congress isn’t coy about what happens when a state fails to participate in a conditional spending program. It speaks clearly—the state doesn’t get the money—and that consequence is spelled out in a provision that speaks directly to states.” (Respecting the states.) And the second deals with the word “such”: “The fate of Obamacare might hinge on the Supreme Court’s interpretation of just one word: “such.” Perhaps never before has so much been asked of “such.” It is a key part of the Obama administration’s argument urging the high court not to invalidate the Affordable Care Act’s insurance subsidies in most of the country.” (The One Word That Could Save Obamacare)

Also this week, the media started to look at the actual petitioners in the suit – remember, an individual has to be harmed to have standing to sue. Looks like it was tough to find such people: The Conservative Obamacare Challenge Has Become an Absurdist Comedy “The Supreme Court case that could eliminate Affordable Care Act subsidies in 34 states is nested in a fictional history of Congressional intent, and thus has a lot to answer for. Its credibility sustained a further hit this week, when reports in the Wall Street Journal and Mother Jones revealed damaging information about at least three, and possibly all four, of the King vs. Burwell petitioners.” 

“To be clear, the standing questions almost certainly won’t be enough to disable the lawsuit. All it needs is one plaintiff with standing. And there are other people out there — on other lawsuits, and beyond — who can legitimately claim injury. This legal challenge will go forward one way or another. But all of these new, emerging details feed the generally trumped-up, circus-like sense that is increasingly enveloping this lawsuit. And there are plenty of questions about it that remain unanswered.” (Morning Plum: Anti-Obamacare lawsuit comes under intense media scrutiny)

As the day of reckoning gets closer, a reminder that you should be careful what you wish for: Health Law Case Poses Conundrum for Republicans “On the one hand, Republicans in Congress are urging the Supreme Court to strike down subsidies for health insurance provided to millions of people in more than 30 states. On the other, they are chiding the Obama administration because it has no plan to avert the hardship that could occur if they win in court.”  Understanding the consequences, both practical and political, brings us here: Why Republicans Secretly Hope the Supreme Court Will Save Obamacare “If the Court grants Republicans a “victory,” many actual Republicans won’t consider it a victory at all, and the competing concerns of anti-Obamacare zealots, industry-friendly pols, swing state incumbents, governors, and presidential candidates will break out into the open.”

Remember that if the suit is successful, it impacts only states that use the federal marketplace. That means there are states where the suit will have no impact, leading to this: Get ready for deeper polarization of our health care system “For a time, it looked as if supporters of the Affordable Care Act had reasons for optimism about the law’s long-term prognosis in red states, as one GOP governor after another accepted the logic of the Medicaid expansion, which promises state lawmakers huge amounts of federal dollars to improve the lives of their own constituents. But it now looks like such optimism may have been premature: That logic is hitting a wall of opposition from conservative legislators even in states where GOP governors had thrown themselves behind versions of the expansion. All this — taken with the possibility that the Supreme Court could soon gut subsidies in three dozen states – suggests we may be heading for deeper polarization in our health care system.”

ACA: Enrollment
As I write this on Thursday night, there are three days left to open enrollment. So if you’re reading this and are not covered, stop reading and go sign up. OK, everyone else, let’s start by looking at the most recent enrollment report. It showed the expected uptick for the week before the deadline: Open Enrollment Week 12: January 31, 2015 – February 6, 2015 “Since Open Enrollment began on November 15, 7.75 million consumers selected a plan or were automatically re-enrolled through the HealthCare.gov platform, which includes the Federally Facilitated Marketplaces, State Partnership Marketplaces and supported State-Based Marketplaces.”

Here in Maine, last week showed double the activity we had the week before - mirroring the activity for the week of the Feb 1 effective date deadline – but remember, unlike that deadline, this one is for keeps marking the end of the open enrollment period (there are exceptions for life events, but if you’re reading this you probably know that, if not you can find info here: Your options outside Open Enrollment).

Week Ending    Cumulative              Week
9-Jan 59,126
16-Jan 61,964 2,838
23-Jan 62,983 1,019
30-Jan 64,069 1,086
6-Feb 66,118 2,049

The Marketplace has staffed up and is ready for the final rush since as a species, we do love to wait for the last minute: “Thousands of more friendly and better-trained call-center employees will be working starting Monday to deal with the expected late onslaught of people signing up before the Obamacare open enrollment ends Feb. 15. A 40% increase, to a 14,000-person workforce, is expected to help with wait times, which averaged about 2 ½ minutes the last week of January, but are likely to get longer as the deadline nears.” (A friendlier Healthcare.gov call center prepares for rush)

ACA: Marketplaces
Three reports out this week looking at coverage details on the marketplace:

Almost 6.5 million consumers qualify for an average tax credit of $268 per month through the Health Insurance Marketplaces “The U.S. Department of Health and Human Services released today a report outlining the impact of advanced premium tax credits on premiums in the Health Insurance Marketplaces. Almost 6.5 million individuals in the 37 states using the HealthCare.gov platform are estimated to qualify for an average of $268 per person/month in advanced premium tax credits. Among consumers who are signed up for 2015 coverage to date in the 37 HealthCare.gov states, 8 in 10 could choose a plan with a premium of $100 or less after tax credits, based on available options.”

Characteristics of Those Eligible for Cost-Sharing Reductions and Premium Tax Credits Under the Affordable Care Act Primary Source – Urban Institute study “The authors find that if all those eligible enroll in a plan by 2016, they would save, on average, $479 per year on things like co-pays, deductibles and co-insurance. Co-insurance is the percentage of the actual cost of health services—things like prescriptions, imaging tests, hospital stays, etc.—that a person has to pay out-of-pocket for covered services.”

New Reports Analyze Cost Sharing in 2015 ACA Marketplace Plans in 37 States “In a new brief and collection of 36 charts, the Foundation compares cost sharing across standard silver plans and their variants in federally-facilitated ACA marketplaces, examining average deductibles and out-of-pocket limits, as well as copayments and coinsurance for hospital stays, physician visits, emergency room visits, and prescription drugs.”


ACA: Affordability
Unfortunately, with the battle continuing for the mere existence of the law, there is little prospect in the near future of trying to improve it. And make no mistake, as much as an improvement the law was over the status quo, there is still work that needs to be done. One of the main areas that could be improved is affordability.

We know that everything is trade-offs. If you want low premiums, you end up with high cost sharing. The law as it currently exists tries to soften the blow with cost sharing subsidies and out-of-pocket limits, however the current situation is not all we might wish it to be. One of the issues with high cost sharing is that it indiscriminately leads to less care – both needed and unneeded care and that can have unintended consequences: High deductibles could stymie efforts to slow healthcare spending “That's because patients are likely to forgo highly effective treatment to escape medical bills under high deductibles. The new study found use of preventive medicine dropped when one employer switched to high-deductible health benefits. … “This study adds confirmation to the simple adage: If you make people pay more for something, they will buy less of it, regardless of the clinical value,” Fendrick said.”

The NY Times also took a look at the issue. However, one lack in this piece is that it focuses on some examples of people that have real issues without providing balance or magnitude.  Yes these people need more help, but do they represent 5% of those covered or 50%? “The Affordable Care Act has ushered in an era of complex new health insurance products featuring legions of out-of-pocket coinsurance fees, high deductibles and narrow provider networks. Though commercial insurers had already begun to shift toward such policies, the health care law gave them added legitimacy and has vastly accelerated the trend, experts say.” (Insured, but Not Covered)

But to end on a positive note, a Study finds it cheaper for students to buy insurance than go without “A new analysis from the CSU Health Insurance Education Project found that half the approximately 445,000 students in the CSU system are able to purchase health insurance for less than they would have to pay in fines for remaining uncovered.”

ACA: Other
This piece takes a look at Puerto Rico, it is a fascinating story – they have Medicaid expansion with no insurance subsidies or individual mandate, but they do have a no pre-existing condition exclusion – a situation that many states could find themselves in if SCOTUS rules against the subsidies: In Puerto Rico, Health Overhaul Gets An Incomplete

Many of the new insurance plans set up with government loans (COOP plans) are struggling. However the S&P report singled out our own Maine Community Health Options as the exception: Obamacare Insurance Co-Ops Struggle With Cash Flow “Obamacare’s startup health insurance plans are flirting with financial distress, as all but five of the 23 nonprofit companies had negative cash flow from operations in the first three quarters of 2014, Standard & Poor’s said in a report today.”

Medicaid
Let’s start this week’s Medicaid look with a focus on Maine. First, Mike Tipping takes a look at the predictions of last year’s Alexander report in light of the new MaineCare budget, and confirms (yet again) how bad the report was: LePage-authorized Alexander Report was a complete con job, new numbers show.

Also a look at the impact of not expanding Medicaid on our community health clinics: Community health clinics struggle with impact of MaineCare cuts ‘’ Since Maine trimmed eligibility for MaineCare, reducing the ranks of Medicaid patients from 357,000 in 2011 to about 290,000 this year, community health centers have increasingly felt the financial fallout.”

The problems providers face when Medicaid isn’t expanded are not unique to Maine, here’s a look at Baton Rouge: When a state blocks Obamacare, ERs close: The lesson of Louisiana “Baton Rouge, La., is about to lose one of its crucial hospital emergency rooms, and the reason is clear: The administration of Gov. Bobby Jindal has refused to expand Medicaid under the Affordable Care Act, and won't put up any other money to keep the facility open.”

It’s worth remembering that Medicaid is a big program and there are other topics to discuss besides expansion. While we know the President’s budget will not be passed as is, there are reforms included that will become part of the discussion. One important one is this: Is Obama Budget The Beginning Of The End For Nursing Home-Based Medicaid? “Under a new pilot program, as many as five states could effectively skip that waiver process. Instead, they could assess a person’s care needs and simply determine where she could receive the most appropriate, cost- effective care. No longer would a nursing home be the default solution.”

And with that exciting news behind us, back to Medicaid expansion…  Here is a great review by the NY Times of this week’s developments. Chief among them are the two red states where the Governors were supporting expansions but the legislature said no: Complicated Politics of Medicaid Expansion Are Playing Out State by State “These new developments underscore just how complicated the politics of expanding Medicaid have become — and just how different the results of seeking an expansion have been from state to state.”

Medicare
“On Thursday the CMS issued a national coverage determination giving certain Medicare beneficiaries immediate coverage for the screening test.” (Medicare will pay for lung CT scans for cancer screening)

However, there was those who questioned the decision: Can I interrupt your repeating a Medicare press release to talk about cost-effectiveness? “Wait, what? For current smokers, the cost effectiveness for current smokers of this screening was $116,000 per QALY. For former smokers – which Medicare is going to cover – the incremental cost-effectiveness was more than $2.3 million per QALY. And this study was using 2001 $US, cause it was published back in 2003. Now, people in this country may think that’s money well spent. That’s fine. But let’s acknowledge that this is a pretty high cost per QALY gained. I see nothing but praise for this development in the media, while Sovaldi (incremental cost-effectiveness of less than $26,000 per QALY $54,000 per QALY) is often portrayed as a budget-busting, crazily priced monstrosity.”

We know we can’t do everything, so we really do need to be having frank discussions on what we cover and don’t cover.

Measles
So much has been written in the past few weeks on this topic, what else is there to say?  We are in the middle of an outbreak that could have been a lot less severe if everyone was up-to-date on their vaccines. Some want nothing to do with vaccines, some think they know better and should spread them out more, and some have busy lives and can’t get everything done on time. All the attention is good, with a bit of perseverance and luck it will lead to higher vaccination rates.

With that in mind, and again sparing you all the links I could have shared, here are a few highlights from this week:


An important public endorsement, once again trying to combat one of the more pervasive lies about vaccines: Autism Speaks, leading autism advocate, urges vaccination “A leading autism advocacy organization, Autism Speaks, is urging parents to vaccinate their children amid a measles outbreak that has swept 14 states. As some continue to cite unfounded fears that vaccinations can lead to autism, Autism Speaks chief science officer Rob Ring has released a statement saying vaccinations cannot cause the disorder — and telling parents to vaccinate their children.”

Most politicians are rallying together (note I said most, not all): Bipartisan support voiced for vaccinations, as one critic stays away ““Too many parents are turning away from sound science,” said Sen. Lamar Alexander (R-Tenn.), chairman of the Senate Committee on Health, Education, Labor and Pension during a hearing. “Sound science is this - vaccines save lives.””

An update to an employment policy that can help those too young to be vaccinated: KinderCare requiring measles shots for infants' caregivers “A national day care provider says that as of next week it will require measles vaccinations for all staff members who work with children less than months old, after health officials in Illinois announced measles diagnoses in five infants who attended a suburban Chicago center.”

And finally a look at the dollars involved in combatting an outbreak: Measles Outbreak in Dollars and Cents: It Costs Taxpayers Bigtime “But only a handful of folks have talked about costs. Measles is expensive. Really expensive. And even if you live in a highly vaccinated area with no outbreaks, a measles case in your state – that’s a third of the U.S. right now – still means health department tax dollars diverted from other programs to deal with a disease that was eliminated from the U.S. in 2000.”

Drugs
Ever wonder why I’m not a big fan of the pharmaceutical industry?  One big reason is that they expect profit margins that hospitals, providers, and insurance companies can only dream of. They claim they deserve that because of the amount they spend on research. But take a look at this: 9 of 10 top drugmakers spend more on marketing than research “These spending numbers are at odds with a common claim by pharmaceutical companies that they need to patent drugs for extraordinary amounts of time to justify the massive amounts of money spent on research. Not only do many top drugmakers appear to spend more on advertising, but their profit margins, the BBC noted, are often larger than their research spending.”

John Oliver in his show this week took a look at the industry, it’s worth watching if for no other reason than this wonderful line: “"Drug companies are a bit like high-school boyfriends," Oliver said. "They're much more concerned with getting inside you than being effective once they're in there."” (John Oliver returns with a devastating message about pharmaceutical companies)

When did this country turn its back on science?  I have no answer, but I do have two examples this week.

Prescribing off-label: It’s gotten out of control “Modern medicine was meant to be different — it would be based on scientific evidence that could tease out real effect from placebo effect. Unfortunately, evidence-based medicine is only as good as the evidence it is based on. And in many instances our evidence is not very good because it comes from biased drug company studies.”

Stupid Pills: The Politics of Fraudulent Dietary Supplements  “To understand how we got here, you have to go back to 1994, when Senator Orrin G. Hatch of Utah midwifed through Congress a new industry protected from all but minimal regulation. It is also an industry that would make many of his closest associates and family members rich. In turn, they’ve rewarded him with sizable campaign contributions.”

Costs
Yes cost increases have moderated recently, but don’t be fooled. We still have a long way to go and worse, we are really not sure of the path to true cost control.

One possibility is called all-payer rate setting. Here Vox takes an in-depth look at the issue: All-payer rate setting: America’s back-door to single-payer? “All-payer rate setting, as the system is known, shares the same goals of single-payer: it aims to increase efficiency and reduce insurer overhead in the health care system. Single payer does this by eliminating private plans for one government plan. All-payer rate setting gets there by setting one price that every health insurer pays for any given medical procedure.”

The ACA does not address the issue, but in an interview, the President seemed to point in that direction (at least when it comes to prescription drugs): On health-care prices, Obama goes where Obamacare doesn't “In an interview with Vox, Ezra Klein asked Obama whether America should have "private insurers band together with Medicare, with Medicaid, to jointly negotiate prices." Obama answered by saying: "I think that moving in the direction where consumers and others can have more power in the marketplace, particularly when it comes to drugs, makes a lot of sense."”

One sign that we are still figuring things out has to do with provider consolidation. On the one hand it’s claimed that it improves efficiency and patient care, on the other hand it gives the consolidated organization more market power which can lead to higher rates.

This week, the courts weighed in: Courts prove tough crowd for consolidating providers ““I think this is sort of a wake-up call for hospital systems,” said Matthew Cantor, an antitrust lawyer with the firm Constantine Cannon in New York. “Just stating that you're merging to better patient outcomes to achieve the goals of the Affordable Care Act—that you somehow intend to gain cost efficiencies without providing the flesh to that argument—that's not going to work under antitrust laws,” Cantor said.”

One way consolidation contributes to price increases is the different ways hospitals and independent physicians are compensated. But that may change: When Hospitals Buy Doctors’ Offices, and Patient Fees Soar “Still, Robert Berenson, a physician and a senior fellow at the Urban Institute, said it’s clear that a lot of recent doctor-hospital mergers have been driven by Medicare’s disparate pay policies. He thinks the budget proposal lacks needed subtlety, but he supports equalizing many payments in concept. “If hospitals are going to employ physicians, it should be done for the right reasons, not the wrong reasons,” he said.”

And finally, for all the talk about paying for quality instead of quantity – it’s easier said than done: We really want to pay for quality, but it’s so darn hard. “Paying for quality, not quantity is getting to be almost cliché. Recently, the Obama administration doubled down, however, announcing ambitious targets for Medicare payments to be “tied to” quality in the future. Unfortunately, the evidence behind such programs working continues to elude us.”

System Transformation
Quality of Care
Here’s a quick list you should share with your family. We all are consumers of health care, know what you’re buying: 9 facts about medical errors you should know before entering a hospital

Unfortunately, all bad treatment is not done unintentionally. This piece takes a look at overuse of certain cardiac procedures: Are Doctors Exposing Heart Patients to Unnecessary Cardiac Procedures? ““You have to wonder what’s going on,” says Harvard physician and historian Dr. David Jones, author of "Broken Hearts: The Tangled History of Cardiac Care." “Are these doctors going to get bigger paychecks at the end of the month for doing more of these procedures? That may be an uncomfortable question to ask, but it’s something patients should wonder about.””

But knowledge is power, and Google is here to help…  They are working to insure that information you get when you search includes some credible sources: Google works with Mayo to add medical facts to search results “But the distinguishing characteristic of the new feature will be added credibility, the company contends. Each piece of data will be reviewed by an average of 11.1 doctors — led by Google's Dr. Kapil Parakh — before being published, according to the company.”

Data Security
Last week’s announcement of the Anthem hack continues to reverberate.

We have the NAIC taking a look at this specific incident: Anthem's data hack prompts probe by national insurance group ““We are in agreement that an immediate and comprehensive review of the company's security must be a priority to ensure protection of consumers who are covered by Anthem,” Monica Lindeen, the NAIC's president and Montana's insurance chief, said in a news release.”

In case you were wondering why health care data is a target: Cyber hackers see potentially rewarding targets when they attack health care companies “"If someone steals your credit card and home address, they might be able to buy something, but you can usually get that locked down quickly," said Tony Anscombe, a security expert with the cybersecurity firm AVG Technologies. "With medical records and a social security number, it's not so simple."”

And no, it’s not just your insurance company, your doctor’s office is vulnerable too: Is Your Doctor's Office the Most Dangerous Place for Data? “Last year, more than million people in the U.S. were affected by health care data breaches — including hacking or accidents that exposed personal information, such as lost laptops — according to a government database that tracks incidents affecting at least 500 people.”

And finally, it’s not going to stop: Experts Warn 2015 Could Be 'Year of the Healthcare Hack' “Stolen healthcare data can be used to fraudulently obtain medical services and prescriptions as well as to commit identity theft and other financial crimes, according to security experts. Criminals can also use stolen data to build more convincing profiles of users, boosting the success of scams. "All of these factors are making healthcare information more attractive to criminals," said Rob Sadowski, marketing director at RSA, the security division of EMC Corp.”

End of Life Care
It should never come to this (warning, have tissues ready): “Everyone on the oncology unit chipped in two dollars, and she had enough medication to last at least ten days. She only needed enough for five days.”  She only needed enough for five because she only lasted that long: Be aware of cost savings available to every patient

We are still really bad at this stuff. Frontline partnered with Atul Gawande to take a look at “Being Mortal. Vox reviews the program here: Atul Gawande explains the biggest problem with dying in America and you can watch it in full here: Frontline: Being Mortal.  (In case you forgot, Atul is going to be the keynote speaker at this year’s Quality Counts Conference – Registration is now open)

Some say allowing physicians to help ease one’s passing would be helpful, but it is a topic of great controversy. This week Canada legalizes physician-assisted suicide: “In a landmark decision, Canada's Supreme Court ruled that physicians should be allowed to aid a patient in dying so long as "the person affected clearly consents to the termination of life" and is suffering from ""grievous and irremediable medical condition."” While in California, a Lawsuit Seeks to Exempt Doctors From Assisted Suicide Ban “A cancer patient and five doctors filed a lawsuit Wednesday seeking to exempt physicians who help terminally ill patients end their lives from a state ban on assisted suicide.” 

Regardless of if we allow for this or not, we have to do better at handling the last stage of life.


All comments and suggestions are welcome; please let me know what you think. And as always, thanks for reading!

Funded by support from the Maine Health Access Foundation

*The title is a tribute to the BBC show, the NBC show and the amazing Tom Lehrer album "That Was The Year That Was"