Friday, April 11, 2014

That Was The Week That Was - Issue 5

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

7.5 million and counting, that's where we stand with respect to those choosing a plan through the Marketplace - just wanted to get that out of the way before we dive in to this week's news.  Soon to be ex-Secretary of HHS Katherine Sebelius gave the updated number on Capitol Hill yesterday.  If you're wondering when we'll see the March enrollment report, if the past is any indication HHS will release it between the 11th and 14th.  That said there is no official word on if they will do so again or wait until the end of April when they can include the enrollments through the extension deadline of April 15th (the report would then include the 7.5 million and more).   

For those confused by the "soon to be ex" in front of Sebelius above, it's because last night we learned that she will be resigning as Secretary of HHS and current  Office of Management and Budget (OMB) chief Sylvia Burwell will be nominated to take her place.

This is big news, but in the end not very surprising.  If there was ever a time for her to make a graceful exit, this is it, after the successful end of the open-enrollment period and before the start to this year's election season.  There will be (and has already been) much written about her legacy (Health Secretary Resigns After Woes of HealthCare.gov, Website fiasco will taint Kathleen Sebelius’ legacy but I look at it this way.  She was a great Insurance Commissioner and then Governor in Kansas and has done a lot of good at HHS.  With our 20-20 hindsight we now know that she was not the right person to oversee the creation of the website, but the botched rollout should not be the only way she is remembered (The Sebelius Legacy: One Epic Tech Failure, Millions of Newly Insured Americans, Republicans pile on at news of Sebelius’s exit).

In fact, it can be said that her resignation now is a positive sign, in the words of Ezra Klein: Kathleen Sebelius is resigning because Obamacare has won.  (Yes, our old friends Ezra and Sarah are back, their new site vox.com is now live - and no, I don't believe there is a wonk bubble.)

The President's choice to replace her, Sylvia Burwell, is an impressive one.  In addition to being the current head of OMB she served in the White House during all eight years of the Clinton presidency in various roles, is a graduate of Harvard and a Rhodes Scholar.  Additionally, in her work both during the shut-down and during the budget deal to follow, she showed she can work with legislators on both sides of the aisle.

In fact, one of the first reactions to her nomination came from Senator McCain who tweeted:  “Sylvia Burwell is an excellent choice to be the next HHS Secretary”.  You can read more about her background here Meet the nominee to lead HHS and here Sylvia Mathews Burwell: Six things to know about the new White House budget director (March 2013).  But that doesn't mean the opponents of the ACA won't be playing this event for all it's worth: Sebelius exit opens new Obamacare front.

Even before this news hit on Thursday night, there was a lot to talk about this week.  Rand issued a new report regarding the previously uninsured who are now have health coverage:

"The survey, which comes with some caveats, finds that of the previously uninsured who gained new coverage, 7.2 million were covered by employer plans, 3.6 million were covered by Medicaid and 1.4 million signed up through the Obamacare exchanges. In all, employer coverage increased by 8.2 million since September, Rand said."    (Forget about Obamacare exchanges. Employer coverage is booming, survey finds)

While many were surprised by these numbers, we shouldn't have been.  Remember, the greatest number of people in this country with health insurance get it from their employer. One of the benefits of the mandate is it encourages more people to accept that offer from their employers. These numbers for the first time show the extent of that increase (Should we have expected this week’s big surprise on employer health insurance?,  The best evidence we have that Obamacare is working).  You can read the primary source and link to the actual survey here: Survey Estimates Net Gain of 9.3 Million American Adults with Health Insurance.

There were other numbers released this week as well, a Gallop poll showed the number of uninsured continues to decline (note that these do not even reflect the March enrollment surge  Another Day, Another Sign That Obamacare Is Working).  Other number released showed that as expected, it was the sicklier individuals who signed up first (Study Finds Sicklier Enrollees in Earliest Stage of Health Law) which can also be understood to be a positive since these people needed care (More Evidence Obamacare Is Getting Insurance To People Who Need It).

As part of the doc fix legislation discussed last week, there was an ACA fix included to eliminate the requirement that employer plans adhere to a different standard re out-of-pocket costs than individual plans.  To me, this represented the first substantive adjustment to the law supported by both proponents and opponents of the ACA (GOP seeks coverage choices in health law they hate).  For a while it looked like we would see another example - this time as a standalone bill (House to pass new, bipartisan ObamaCare tweak) with an adjustment to requirements for ex-pats.  However, the compromise wording ended up failing to win the expected bipartisan support and did not pass the House (House rejects expatriate Obamacare bill).

For those keeping track, mid-April was when we were going to finally see the Republicans' alternative to the ACA, alas that is not to be:  House GOP: We'll Have That Obamacare Alternative Soon! Really!.  In perhaps one of the most revealing quotes on this topic, you had a Republican staffer admitting what proponents of the law have been saying all along - the ACA is the most conservative friendly way to accomplish the goal of universal coverage:

"If you want to say the further and further this gets down the road, the harder and harder it gets to repeal, that's absolutely true. As far as repeal and replace goes, the problem with replace is that if you really want people to have these new benefits, it looks a hell of a lot like the Affordable Care Act. ... To make something like that work, you have to move in the direction of the ACA. You have to have a participating mechanism, you have to have a mechanism to fund it, you have to have a mechanism to fix parts of the market."  (The Right Searches for Obamacare Replacement, Finds Obamacare)

Of course there are those who don't want a conservative friendly solution to the issue and are trying a different tact - you can find some of them in Vermont (Forget Obamacare:  Vermont wants to bring single payer to America).

This week also saw the historical release of physician level Medicare claims data.  This is the first time that physician level data is available to the public.  There has been a tremendous amount written about this (a sample of links are below) but here is my take:  For all its shortcomings this data is an important part of the process of reforming our system.  The data is not perfect and you need to take some time to understand it, but it will provide a great resource for analysts and advocates to better understand the state of our system.  While there is opportunity for individuals to look up their own providers (EASY LOOK-UP:  How Much Your Doctor Received From Medicare) the power of the data will be in what it reveals about the system (Nobody Blames Doctors for High Medical Costs. That's About to Change, Disclosing Medicare payment data could be a boon for the nation).

For those who want to dig deeper...

Next some of the information gleaned so far:  Cost of drugs used by Medicare doctors can vary greatly by region, analysis finds, Sliver of Medicare Doctors Get Big Share of Payouts, Want to see how problematic Medicare pricing is? Look to ophthalmology  The top 10 Medicare billers explain why they charged $121M in one year, How does one doctor earn $21 million from Medicare?.  No, I don't expect most of you to click on all those links, but I want to make the point that there is a lot to be learned from the data in spite of its limitations.


For those looking for the local take, Jackie Farwell did a deep dive into Maine specific data: Long-secret Medicare data reveal payments to Maine doctors.

And finally, if you really want the details, here's where you can get the data yourself: THE DATA: Medicare Provider Utilization and Payment Data: Physician and Other Supplier.

Also on the Medicare front, the Administration released the new Medicare Advantage (MA) rates.  I'm sad to report that bowing to political pressure, the new rates were not as low as indicated in the preliminary guidance issued earlier.  To recap, MA is a program that allows seniors to enroll in a private insurance company plan instead of traditional Medicare.  This was originally introduced because the private market said they could provide the benefits cheaper than the traditional plan.  That didn't happen.  Instead, MA plans now get more for each enrollee than the government pays for traditional Medicare.  The ACA said that's not fair to the over 70% of enrollees who are not in an MA plan, if the private plans want to play, they should get the same amount as everyone else.

That was the plan, but there was a lot of pressure from both sides of the aisle (Here’s the next part of Obamacare that has Democrats worried about November) to keep the MA plans happy and the enrollees unaffected by any changes.  As a result, the new rates issued this week do not have the cuts originally intended  (Obama Administration Retreats On Private Medicare Rate Cuts).

Now let's move  away from the ACA and towards reforming the overall health system.  First up, this week we saw some interesting stories about the use of specific care.  Wonk superstar Nate Silver weighed in on the mammogram debate attempting to objectively discuss this very emotional topic on his new fivethirtyeigt.com website:   Are Mammograms Worth It?.  Across the pond there was the release of a new study indicating that Tamiflu - a drug many governments stockpile in case of a flu epidemic - may not be any better than acetaminophen.  This story also highlights the need for true transparency with respect to study data - an issue perhaps as important as the issue of transparency with respect to prices:  What the Tamiflu saga tells us about drug trials and big pharma.

Alzheimer's is the focus of this month's Health Affairs journal:  April 2014; Volume 33, Issue 4: The Long Reach Of Alzheimer’s Disease.  And some good news out of Minnesota with more proof that spending money on items other than direct medical interventions can have a big impact.  Here money was spent on support for caregivers of Alzheimer's patients, thereby keeping people out of institutions because their caregivers were better able to cope with keeping them at home longer (Alzheimer’s Disease Support Model Could Save Minn. Millions).

Moving even further on the aging process, some great pieces on the end of life issue.  It's not secret we don't deal with that well either within society or within our health care system.  My feeling is the more we talk about it, the better we'll be able to cope and make good decisions (Answers to Tough Questions About Dying, A ‘Code Death’ for Dying Patients).
And finally, a few more stories that I found interesting this week:      
Finally, for those who missed it I was a guest blogger over on enroll207.com earlier this week discussing the end of the ACA's first open enrollment period:  The End of the Beginning.

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"