A look back at the week's health policy news with a
focus on ACA implementation
While you were (hopefully) celebrating (something) with
family and/or friends, the world continued to rotate and HHS continued to
release enrollment numbers. In this special two week holiday recap you'll find
looks back, looks forward and looks at where things stand now with a myriad of
ACA provisions. We'll also discuss that it’s now possible Texas and Florida
could expand Medicaid before Maine. That along with two weeks’ worth of other
updates means we better get started…
Looking backwards and forwards
We'll start with a list that would be funny if it weren't
true: The 8
most bogus health claims of 2014. We've
discussed many of them during the year (lies about Ebola, lies told by Dr. Oz),
take a look and try and estimate the damage they've caused. To help prevent
more of these in the coming year consider this next piece a vaccine against
ignorance: 11 Ways
To Sniff Out Clickbait Health Journalism. The Commonwealth Fund took a look
at the 8 most important health care stories of the year, this piece also
includes stories familiar to most of you. From the lowering of the rate of
uninsured to Ebola to Sovaldi, here is their The
Health Care Year in Review.
And speaking of the uninsured, it’s hard to argue that the
story that should top anyone’s list was ACA implementation. Courtesy of Larry
Levitt (Kaiser Foundation) here is Obamacare's
first year, in one tweet:
10 m ↓ in uninsured
Benchmark premiums ↑ 2% on avg
6.7 m in marketplaces
9.7 m ↑ in Medicaid
3.8 m in the Medicaid gap
Before we change direction, a reminder that 2014
Has Seen Largest Coverage Gains in Four Decades, Putting the Uninsured Rate at
or Near Historic Lows.
We’ll start our look forward with the Press Herald: In
Maine, health care changes in store as new laws take effect. They review changes taking place in 2015 such as the
employer mandate (also an invocation of the Mitchell rule since I’m quoted). Vox
also takes a look forward, focusing on 5 health challenges
the world will face in 2015.
Brookings take a look at what the new make-up of Congress
means for the ACA. Worth reading for many reasons not least of them being this
sentence “Following the travails of President Obama’s health reform is a bit
like watching successive episodes of the movie serial, The Perils of Pauline,
in which the eponymous damsel weekly faced death from assorted villains.”: Republican
Control of Congress: What Does it Mean for Health Reform?
How things play out in Congress will be interesting. The
President has already said he expects to use his veto pen: Obama
Warns GOP He Plans To Use Veto Pen In 2015 “He added: "I'm going to defend gains
that we've made in health care. I'm going to defend gains that we've made on
environment and clean air and clean water."” Will that be enough to get the Republicans to
the table? There are tradeoffs that
supporters of the bill would be willing to make – the question is after the
Kabuki Theater of votes to repeal followed by the veto, will there be a
willingness to compromise?
And finally from our friends at the Maine Medical
Association, Top
Ten Predictions for Health Care in Maine and the Nation in 2015. Some
optimistic predictions and some less so. I won’t attempt to judge their
accuracy, but I’d be happy if some of them came true (they predict MaineCare
expansion and SCOUS upholding the availability of subsidies).
ACA: Status/Opposition
I’m starting this section with a “small” story - it talks
about just one person – but in this one person we can see all the good the ACA
can do, and all the harm that’s been done by its opponents. The Washington Post
dissects the story for you: The
substance and politics of Obamacare, in one citizen. And here is the original NY Times piece that got so many
people talking: Success
of Kentucky’s Health Plan Comes With New Obstacles.
SCOTUS announced that it will hear the subsidy case on March
4 (Supreme
Court to hear King v. Burwell on March 4, decision likely in June). We’ve reviewed in the past how little most states are
doing to prepare. On the Federal level, during a news conference, Secretary Burwell
would not discuss any contingency planning being done by HHS (HHS
won’t say if it’s preparing for a Supreme Court Obamacare nightmare). But the enrollment numbers (that we review below)
highlight the need for figuring out what can be done if the worst happens: New
Enrollment Numbers Show Importance of Coming Supreme Court Case.
Famed Princeton economist Uwe E. Reinhardt writes about
Gruber, and so much more: Rethinking
The Gruber Controversy: Americans Aren’t Stupid, But They’re Often Ignorant —
And Why He talks about the ignorance
of the public when it comes to the details of the policy debates going on and
how that enables the “spinning” of the facts. For example: “Consumer driven
health care … aka rationing by income. How many politicians, for example, would
forthrightly and bluntly proclaim on the campaign trail that, to control the
growth of health spending, they favor the rationing of health care by income
class, that is, by price and ability to pay?”
(If you read one full link this week, read this one.)
ACA: Enrollment Reports
HHS continued with their policy of releasing weekly
enrollment reports. They also released the first state breakdowns reflecting
the first month of open-enrollment. Let’s start with the most recent number:
8.8 million plan selections as of 12/31!
That is courtesy of http://acasignups.net/,
the analyst combines Federal and State data and provides the most comprehensive
number (including auto-reenrollments). His numbers have proven to be incredibly
accurate, but for those looking for a more main stream media source, the
Washington Post had reported At
least 7.1M signed up for 2015 Obamacare plans so far (not including all the states full data).
Here in Maine, the first month saw Health
care sign-ups in Maine start strong at 36,000 (36,000
Mainers pick Obamacare insurance plans). A great start thanks to the incredible work of the local
assisters. We are less than halfway through open-enrollment, so there is still
lots of time for those without coverage to sign-up. That said, without Medicaid
Expansion here in Maine there are still many who have no good options.
Two interesting results from the reports, reflected both in
Maine and nationally. First, People
Are Shopping for Health Insurance, Surprisingly. Some,
myself included, were worried that most people who were going to be
auto-reenrolled would not shop for plans this year. The numbers show that here
in Maine over 60% of those with a plan shopped around, while nationally more
than a third did so. I believe the numbers here in Maine reflect the concern
and focus of those working on the issue and doing everything possible to get
the message out.
Also, the reports show that More
HealthCare.gov enrollees seeking financial aid in 2015. Both nationally and in Maine the number approaches 90%
of those selecting a plan qualifying for some subsidy. As noted above, this
highlights the importance of the decision SCOTUS will make regarding the subsidy
case this year.
Finally, for those interested in the raw numbers, below are
links to the HHS reports:
- HEALTH INSURANCE MARKETPLACE 2015 OPEN ENROLLMENT PERIOD: DECEMBER ENROLLMENT REPORT For the period: November 15, 2014 – December 15, 2014
- 87 percent of people who selected 2015 plans through HealthCare.gov in first month of open enrollment are getting financial assistance to lower monthly premiums
- Open Enrollment Week 5: December 13 – December 19, 2014
- Open Enrollment Week 6: December 20 – December 26, 2014
ACA: Marketplaces
While many are firmly focused on this enrollment period,
reaction continues to the CMS proposals to the next one.
How reenrollment is managed continues to be an issue –
should CMS change an individual’s plan for the next year based on cost? Many are not pleased with that proposal: Obamacare
re-enrollment into lower-cost plans draws objections. Here is a detailed look at the issue: Health
Policy Brief: Reenrollment
Subject to discussion are other aspects of the proposed
rules, including network adequacy standards and accessibility of provider lists
and formularies. Not surprisingly, hospitals want better network standards (so
they can be included in more networks). More surprising (and sad) is that
insurers are objecting to machine readable networks and formulary lists –
something sorely needed if tools are going to be developed to make appropriate
comparisons (CMS
enrollment proposals spark criticism on range of issues).
Also being discussed is that actual timing of the open
enrollment period. It’s been argued that the end of the year is one of the
worst possible times: The
administration could be missing a major chance to boost Obamacare enrollment.
Finally, a look at two start-up companies that are creating
decision support tools to help consumers select plans. Given the confusing
nature of health insurance these types of tools have the potential to offer
real benefit: Startups
help consumers navigate insurance exchanges
ACA: Premiums
Two pieces released by the Commonwealth Fund, one on premium
changes and one on rate review:
“A new analysis of
the Affordable Care Act’s health insurance marketplace costs finds that,
nationwide, marketplace premiums did not increase at all from 2014 to 2015,
though there were substantial average premium increases in some states and
declines in others. The average premiums for the second lowest-cost silver
plan—or benchmark plan for calculating the federal subsidy in a given
state—were also unchanged. And the average deductible for a marketplace plan
increased by just 1 percent year to year. (Analysis
Finds No Nationwide Increase in Health Insurance Marketplace Premiums)
“Highlighting the essential role states continue to play in
shaping the legal and regulatory landscape for health coverage, a new
Commonwealth Fund issue brief examines the variety of state approaches to
implementing the Affordable Care Act’s rating standards for insurance
premiums.” (Premium
Rating Practices: How States Are Implementing the ACA's Reforms)
And a reminder that one it comes to rate review, some states
could do a much better job: Health
Insurance Rate Setting: Time To Raise The Bar And Lift The Veil Of Secrecy.
ACA: Employers
Despite fears to the contrary, a Kaiser sponsored Urban
Institute study confirmation that employers did not drop coverage in response
to the ACA: “Before Obamacare launched in June 2013, 71.2 percent of workers had
employer-sponsored health plans. That number ticked upwards just slightly to
71.2 percent as of September 2014, a change that the researchers say is not
statistically significant. Numbers held constant at both large and small firms…
” (Obamacare
has not killed health insurance at work, survey finds)
While that’s good, the process is still far more complex
than we would like it to be. This is true for individuals as well as employers.
Read here about one small employers attempt to make sense of his choices and
help his employees through the process: Is
This Any Way to Pick a Company Health Insurance Plan?
ACA: Other
The Bangor Daily News in partnership with the Sun Journal
are taking an in-depth look at the ACA one year after the first open enrollment.
The initial article looked at the difference a year can make: From
‘hellish’ to health care: The Affordable Care Act in Maine 1 year later. The full series (including future installments)
can be found here: Affordable
Care Act 201.
The New York Times took a detailed look at how taxes and the
ACA intersect: Affordable
Care Act’s Tax Effects Now Loom for Filers and How
Affordable Care Act Rules Affect Your Taxes. Expect to
hear much more about this as the public starts completing their tax returns and
is faced with the complexities of the penalties and subsidies.
While enrollment is going well this year, that’s not to say
that everything is smooth sailing. There are continuing concerns that some
plans are trying to get around the “no preexisting exclusion” rule by adjusting
their benefits for costly conditions. The Feds are taking a look: Obama
Administration to Investigate Insurers for Bias Against Costly Conditions. Although some advocacy groups are
not waiting for the Feds to act: Group
Sues Aetna, Claiming Discrimination Against H.I.V. Patients .
Fallout continues from VT’s decision not to proceed with
single-payer. Sarah Kliff takes a detailed look: How
Vermont's single-payer health care dream fell apart. But while the VT developments dashed
the hopes of many, some are not so easily discouraged: Single-payer
is dead — except not at all for young voters “Well, this new poll from
Northeastern U bears out that point. It shows that, among this so-called
"Generation Z (defines as Americans aged 16 to 19 years old)," 64
percent believe that government should provide health care to its citizens ...
free of charge. Just 20 percent disagree -- a three-to-one margin.”
As a sign of just how smoothly healthcare.gov is operating
this year, the lead consultant on the project just received a contract renewal:
Accenture
wins $563M contract to continue with HealthCare.gov.
And finally, both because the topic is important and not at
all because this is the best article title ever, a report by Milliman on the
risk corridor program and how it may be impacted by a few lines in the
Cromnibus legislation: Risk
corridors episode IV: No new hope.
Medicaid
As we start January, primary care physicians Medicaid rates
are being reduced in many states (As
Docs Face Big Cuts In Medicaid Pay, Patients May Pay The Price). As of now
Maine providers have not been notified of a rate change, but we don’t yet have
clear word on what the future (and the budget) have in store.
Also with the New Year, the topic of CHIP renewal is getting
more attention. Here is one look: Health
Law Helped Adults. Now, What About Children?
Lots to discuss with respect to Medicaid expansion. Vox took
a look at how Red states
are using Obamacare to rip themselves off. Basically, what should have been a transfer of Fed money
from Blue states to Red so far has been the opposite as Red states refuse the
Fed money for Medicaid expansion.
Regarding the Red states that did expand “In a new
Commonwealth Fund issue brief, George Washington University’s Sara Rosenbaum
and Carla Hurt examine the variety of Medicaid reforms that Arkansas, Michigan,
Iowa, and Pennsylvania are currently testing” (How
States Are Expanding Medicaid to Low-Income Adults Through Section 1115 Waiver
Demonstrations). And Kaiser provides the Status
of State Action on the Medicaid Expansion Decision.
Regarding state specific developments, in news that
surprised many, hints that both Texas and Florida (yes, you read that
correctly) may be considering expansion: Medicaid expansion effort in Florida
could get sunnier in 2015 “The Florida Chamber of Commerce told CNBC it its
taking "a fresh look" at Medicaid expansion and is moving to change
its current position on the issue.” And Is
Texas, the biggest domino, about to topple on Medicaid expansion? “That would be a dramatic departure
from the state's stance under departing Gov. Rick Perry, who called Medicaid
expansion "a fool's errand" and made his state the national epicenter
of opposition to the ACA.”
Finally, under the category of two steps forward, one step
back, Arizona
Supreme Court Allows Medicaid Plan Lawsuit. If successful, the suit could
nullify the expansion already underway in Arizona.
Medicare
Two piece of good news on the Medicare front:
“Starting next year, the government will offer some seniors
enrolled in private Medicare Advantage insurance an opportunity to leave those
plans if they lose their doctors or other health care providers.” Medicare
To Offer Help To Some Seniors When Advantage Plans Drop Doctors
“The federal office responsible for appeals for Medicare
coverage has cut in half the waiting time for beneficiaries who are requesting
a hearing before a judge. The progress follows an announcement last January
that officials were going to work through a crushing backlog by moving
beneficiaries to the front of the line and suspending hearings on cases from
hospitals, doctors and other providers for at least two years.” Seniors’
Wait For A Medicare Appeal Is Cut In Half
And a reminder that there is still work to do as Medicare
Patient Skips Mortgage to Cope With $20,000 Bill. This and other stories like it highlight two important
points. First that while generally a strong benefit, there are people who fall
through the cracks in the program. Second, Note that unlike ACA compliant
plans, there is no out-of-pocket maximum for Medicare patients. Its presence is
one of the unsung heroes of insurance reform and should be a part of Medicare
as well.
Costs
Lots going on in the Accountable Care Organization (ACO) world.
HHS announce that 89
ACOs will join Medicare Shared Savings Program in January. Remember, the
Medicare Shared Savings program is just one flavor of ACO, although for now one
of the predominant flavors. The article discusses how while some more groups
are signing on to the program, there are changes in store.
Regarding current participants in the program, a piece in
the Press Herald regarding MaineHealth’s bonus payment: Redefining
care saves federal money, earns MaineHealth a $9.2 million windfall “It’s a
good sign, but this is all still very preliminary,” Stein said. Why did I say
that? After the announcement of the Shared Savings results was the announcement
of penalties for hospital infections, where MaineHealth also made the list (Feds
penalize Maine Med and five other hospitals in the state for patient injuries).
Kudos to them for the achievements so far, but there are questions regarding
the completeness and appropriateness of the measures being used by the current
program.
Also on the cost front, a frightening story out of Alabama
regarding the lengths one hospital is going to collect unpaid bills: In
Alabama, A Public Hospital Serves the Poor — with Lawsuits
A look at the years before the ACA and the recent health
cost increase slowdown, much if not all of you potential raise went to pay for
increased benefits costs while salaries stayed stagnant: You
may have been getting a raise for years. It's just not going to your bank
account.
Drugs
Time to once again talk Hepatitis C treatments. There are
now three treatments available, Sovaldi (old new), Harvoni (approved in October
and like Sovaldi from Gilead), and the newest of them all, Viekira Pak (from
AbbVie).
First, Harvoni, it is an improvement over Sovaldi because
there is no need for companion Interferon injections and is proving to be
wildly popular: This
drug costs $1,125 per pill and is about to shatter sales records. Although no cheaper than Sovaldi, it does have the
potential to cost less for some patients because they will be cured with a
shorter treatment length.
The AbbVie drug is an alternative but
has some drawbacks compared to the Gilead drugs – it requires four
pills a day (vs. one) and requires an additional drug that sometimes has severe
side effects. Still for many, this can be as effective as the Gilead entrants.
Stepping into the fray, Express Scripts has entered into an
agreement with AbbVie saying all their customers will try their drug before the
Gilead ones: AbbVie
Deal Heralds Changed Landscape for Hepatitis Drugs –Express
Scripts, insurer moves could signal tougher drug bargaining tactics. An understandable approach given the costs involved but
needs monitoring.
Switching focus, here is a fascinating look at opioid abuse
and its history: Painkiller
Abuse, a Cyclical Challenge “Despite the growing recognition of the
limitations of opioids for pain, we are still in the midst of an epidemic.
Policy makers continue to struggle to balance access to appropriate medications
with their risks, while the pharmaceutical industry provides and promotes new
formulations of narcotic painkillers.”
Now let’s talk about antibiotics and antibiotic resistant infections:
“My incredibly sick patient also highlights the need for more robust antibiotic
development so medical professionals aren’t resorting to toxic antimicrobial
agents as last line therapies because no other safer, effective antibiotics
exist. This last point is concerning because despite the current landscape of
antibiotic resistance in the U.S. there is a dearth of new antibiotic
development today.” (How
antibiotics are killing us and the new ones can’t come fast enough). According to the President, antibiotic
resistance is a threat to national security. There is work being done to try
and get the situation under control: Hospitals
focus on antibiotic overuse as CMS prepares new mandate. But damage has already been done.
A new paper looks at C. difficile,
how it developed and spread (Homegrown
bioterror). This one bug is causing much more harm in the US
than Ebola, even though it gets little attention: Our
fascination with Ebola exposes a double standard “But that same level of
caution and concern does not exist when it comes to preventing the spread of C.
diff and other hospital-acquired infections. In fact, CDC figures from 2011
reported 722,000 U.S. hospital-acquired infections that year, resulting in
approximately 75,000 unnecessary deaths. …
Given these staggering statistics, how is it possible for caregivers not
to wash their hands when they go in and out of a patient’s room?” While we wait for new drugs, there is
something simple you can do. Although it won’t fix everything, if you find
yourself in a hospital, remember to wash your hands, and make sure the staff
does so as well.
System Transformation
Let’s start this section with a great summary of what ails
our health care “system”: Fixing
our broken health care system: Sometimes David wins. The victory he refers
to concerns smoking rates, but he also outlines the areas where a lot more work
is needed.
One of the biggest issues we face is that we often don’t
address the underlying problems: When
doctors aren't enough to help patients keep diabetes in check “Among a
group of 411 patients being treated for Type 2 diabetes in the Boston area,
those who suffered from food insecurity and those who tried to save money by
skimping on their meds were only half as likely as their more financially
secure counterparts to be managing their disease.” ““Addressing access to food and to
medication together may be important to improve clinical diabetes control,” they
concluded.”
Sometimes there is nothing that can be done. A new look at
cancer shows that Biological
bad luck blamed in two-thirds of cancer cases “"They like to believe there's a reason.
And the real reason in many cases is not because you didn't behave well or were
exposed to some bad environmental influence, it's just because that person was
unlucky. It's losing the lottery."”
And sometimes something can be done, regardless of why you
get cancer, we have made advances in its treatment. A report found that More
than 1.5 million cancer deaths averted in last two decades. And more help is on the way as
researchers look at different ways of tackling disease: In
a New Approach to Fighting Disease, Helpful Genetic Mutations Are Sought. The idea here is not looking for
mutations that cause problems, but look for mutations that prevent them.
One disease we’re able to prevent sometimes is the flu. This
year, not so much as it looks like the early numbers were correct and As
Feared, It’s a Season of High Flu Intensity. “The
worrisome outlook is the result of a confluence of factors: an early start to
the flu season, with more people sick in December than usual; a strain that
tends to make people sicker; a relatively low vaccination rate; and a mismatch
between this year’s flu vaccine and the virus that’s making people sick.” So
far, it’s worst in the Southeast and Midwest, but the rest of the country could
still be in for a bad time.
Since I’m on my ninth page of writing this morning, I’ll
leave it as an exercise for the reader to write the transition from the flu to
vaccinations in general J
Maine
bill seeks to halt surge in vaccination avoidance. The bill
would make it harder for parents to obtain a philosophic exemption to having
their children vaccinated by requiring them to meet with a primary care
provider and have them sign the request. While vaccination opponents argue that
puts too much of a burden on providers, the Maine Medical Association, is in
favor of the bill.
The Washington Post continues its stellar coverage of
end-of-life issues. First observing that 2014:
The year we finally learned how to talk seriously about dying. The also looked at the quality of
hospice organizations. First by examining visits by hospice staff in the last
days of life: The
many hospices that fail patients just before they die and then be looking at the for-profit/nonprofit status of
organizations and how that impacts quality: Dying
and profits: The evolution of hospice. Among the findings “Nonprofit
hospices typically spent about $36 a day per patient on nursing visits;
for-profit hospices spent $30 per day, or 17 percent less. The gap between
for-profits and nonprofits remains whether the hospices are old or new.” (Link
to full series: The
Business of Dying - Patients in Peril)
Finally, a look at the growth of urgent care clinics here in
Maine: Opening
of urgent care clinic adds to Maine trend and
nationally: Blockbuster
Is Out, the Doctor Is In. While these centers can fill an important role in
our system, they need to be integrated with an individual’s overall care. Also
the growth in the number of for-profit centers seems to indicate there are
large profits being made, something out system can’t afford.
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"