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Wednesday, October 19, 2016

Health Care Reform Articles - October 19, 2016

The Final Rule

by Kip Sullivan, J.D.
When I read the original MACRA rule that CMS published last April, I was appalled at its complexity, at CMS’s total disinterest in measuring “performance” accurately, and CMS’s willingness to hype the performance of ACOs and “medical homes” (the main prototypes for the “alternative payment models” [APMs] authorized by MACRA). I entertained the faint hope that CMS would come to its senses after hearing the reaction to its original rule and propose something less complex, or maybe even urge Congress to suspend enforcement of the law until it could be rewritten. Foolish me.
I have read a substantial portion of CMS’s final rule, published last Friday. It is clear to me CMS intends to implement its original rule with only minor changes. I predict the implementation process will be a nightmare.
The most fundamental problem with the rule is its insane complexity. The complexity is a function of both the complexity of medicine and the impossibility of what Congress has asked CMS to do – to measure the cost and quality of physician services at both the individual and group level and to punish and reward doctors based on inaccurate scores, and to oversee the creation of vaguely defined and unproven entities like ACOs and “medical homes” which will also dish out penalties and rewards based on inaccurate data. 
Implementing such a monstrously complex law, or even portions of it, would be very difficult even for an agency run by clear thinkers. But CMS is not run by clear thinkers. It is run by people who think like employees of advertising agencies. They think their job is to persuade their listeners that their product is wonderful. They think they are supposed to exaggerate what MACRA will do, and to deny or obfuscate MACRA’s obvious defects.
CMS committed both types of errors – exaggeration and denial – in its first rule, and it committed identical errors in the final rule. At this point I think it’s reasonable to predict that CMS won’t admit either type of error until long after implementation has begun and reality has repeatedly smashed its staff over the head. Of course, by then much time and money will have been wasted, and many patients may have been harmed as well.
I’ll devote the rest of this essay to examining the worst examples of both types of errors – hyping that which should not be hyped, and overlooking that which should not be overlooked. I will close with a comment on how similar MACRA and the Affordable Care Act are. Both laws are already in trouble because they rely on the same bankrupt theory of cost-containment. Their troubles have only just begun.
“Evangelism is no vice, agnosticism is no virtue”
The most compelling evidence that CMS thinks of itself as an advertiser, as the PR agent for Congress, is its willingness to articulate their most basic premises as beliefs as opposed to conclusions backed by evidence. Consider the following quotations from the final rule (“final with comment period,” is the official label for this rule):
  • We believe participation in any APM offers eligible clinicians and beneficiaries significant benefits. [p. 1396]
  • [W]e believe that all APMs offer meaningful opportunities and benefits to clinicians…. [p. 1427]
  • We believe that both the inclusion of payment based on performance on quality measures in the Advanced APMs and the ongoing monitoring and evaluations conducted on all APMs are mechanisms for identifying whether appropriate care is withheld to save costs. [p. 1454] 
  • The costs for implementation and complying with the advancing care information performance category requirements could potentially lead to higher operational expenses for MIPS eligible clinicians. However, we believethat the combination of MIPS payment adjustments and long-term overall gains in efficiency will likely offset the initial expenditures….. [p. 1818] [emphasis added]
Not one of those statements is documented. They are all based on faith. And yet all of those statements have to be true if MACRA is going to improve quality and lower costs. It has to be true, for example, that “any APM offers eligible clinicians and beneficiaries significant benefits” – or at least that the great majority of APMs do so. It has to be true, to take another example, that CMS can detect and punish any denial of necessary care caused by risk-shifting to APMs and the physicians who work for them.
And yet CMS didn’t document these statements and numerous other claims that began with “we believe.” They didn’t for a good reason: They couldn’t. The evidence either doesn’t exist or the evidence indicates the assumptions are wrong. 
Take for example the crucial claim that “all APMs … offer benefits to clinicians.” This boast must, at minimum, mean doctors will not lose money if they join APMs. But we have no evidence for that assumption. Ashish Jha recently reported on THCB that CMS’s ACOs are, on average, not saving money, and when CMS’s bonus payments are counted, ACOs are raising Medicare costs. Similarly, all the evaluations of CMS’s “home” pilots indicate they are saving no money for Medicare, and those evaluations plus other studies demonstrate that physicians working in the “homes” are not being paid enough to cover the extra costs they incur to buy the goods and services “homes” are supposed to buy (see my discussion of the evidence here.
“Denial is no vice”
CMS’s sins of exaggeration are aggravated by sins of denial. The worst and most important examples of denial are CMS’s refusal to state that performance must be measured accurately if paying for performance is going to work. You will not find in either the original or the final rule a statement that says anything like, “We believe performance measurement must be accurate.” Is that not an obvious and essential statement? How hard would it be to say that? But you won’t catch CMS saying that.
Here are the two most important “we believe” statements I would have added to the rule:
  1. “We believe pay-for-performance can work only if performance is measured accurately.”
  1. “We believe accurate measurement of performance requires at minimum (a) adequate sample size, (b) accurate attribution of patients to doctors, and (c) accurate adjustment of quality and cost scores to reflect differences in patient health and other factors beyond physician control.”
These statements appear nowhere in the rule despite the fact that numerous commenters raised questions about the accuracy of patient attribution and risk adjustment. CMS just blew those people off. Here is an example:
One commenter was concerned with inaccurate data being reported on Physician Compare…. Another commenter expressed some concern with the accuracy of the information and its usefulness for consumers. One commenter recommended a principal focus be on providing reliable and useful data rather than expediency. Response: We appreciate your comments and remain dedicated to publicly reporting data that generally meet public reporting standards. [pp. 1393-94]
Translation: “We’re CMS. We’ll pretend to seek your input, but on the all-important question of whether we are measuring performance accurately, we intend to ignore you. We absolutely do not want to have an honest conversation about whether it’s financially or technically possible to measure physician performance accurately at any level relevant to even a few types of patients or diseases, much less all of them.”
Republicans and Democrats share the blame for the MACRA mess
In this post I have aimed my criticism at CMS for approaching MACRA with the mindset of a PR agent. CMS deserves harsh criticism because they are not being forthright, and in some cases they have been downright dishonest. [1] CMS’s unwillingness to tell the truth about MACRA does not bode well for its implementation and the ensuing public debate. 
But the ultimate blame for MACRA’s nightmarish complexity falls on Congress. Democrats and Republicans voted overwhelmingly for MACRA. How quickly we resolve the mess created by MACRA will depend ultimately on how quickly leaders of both parties understand MACRA’s defects. If both parties engage in some honest introspection, they will at some point realize both parties have subscribed to the same bankrupt theory of cost containment. This should be interesting to watch. On the issue of health care cost containment, there is no daylight between the parties. 
The Affordable Care Act, a law Republicans detest, is based on the same bankrupt cost-containment theory that MACRA is based on, namely the managed care diagnosis (overuse) and the managed care solution (shift insurance risk to doctors and micromanage them). Not one Republican voted for the ACA, a law which will succeed only if the claims made for “accountable care organizations” and “medical homes” and other alleged “value-based” reforms are true. And yet Republicans voted overwhelmingly for MACRA, a law which will succeed only if the claims made for ACOs, “homes” and other alleged “value-based” reforms are true.
Republicans need to get their message straight. They can continue telling the public the ACA has no effective cost containment in it (which would be accurate) and is therefore not affordable, but in that case they must level the same criticism at MACRA – it will not cut Medicare costs. Or they can continue to promote the false message that MACRA will cut Medicare costs, but in that event they must stop carping about the ACA and join Democrats in claiming the ACA really will “bend the cost curve” (which is sheer fantasy).
Because neither MACRA nor the ACA promote cost containment, and because both have destructive side effects (including higher administrative costs, more consolidation of the entire health care system, and accelerated physician burnout), both are going to fail. The only issue is how they will fail. Will they collapse overnight? No, I wouldn’t bet on it. I predict, rather, that they will create, each in their own way, so much antagonism that Congress will, after much dithering, be forced to amend them beyond recognition. My only hope is that when Congress amends the ACA it won’t result in a higher uninsured rate and worse coverage, but I fear that’s where we’re headed, at least in the short term. 
I predict as well that the amendments that will transform the ACA and MACRA will be contained in multiple bills enacted over a period of years rather than a single bill enacted in one session. These amendments will be stimulated by widespread anger – anger that starts out relatively subdued and spreads as reality sinks in and Congress dithers. The ACA will create (and already has created) anger among taxpayers and patients, while MACRA will create (and already has created) anger among doctors and some patients, including yours truly. Congress will eventually have to recognize this anger and do something about it. My hope for both MACRA and the ACA is total repeal and replacement with a law that focuses on the price of US health care and the administrative waste that drives price up as opposed to the volume, i.e. the overuse, of medical services sold. It is the obsession with overuse that brought us the MACRA mess.
[1] In both the original and final MACRA rule, CMS repeated a false statement it first made in an August 25, 2015 press release, namely, CMS’s ACO pilots are saving money (see p. 1821 of the final rule). Kaiser Health News was the first to demonstrate  this was not true. John O’Shea recently called attention to a report by the HHS Inspector General which criticized CMS for inflating the savings achieved by Pioneer ACOs. As O’Shea put it, “[A]fter the close of the Pioneer ACO Program’s Performance Year (PY) 1, CMS allowed five ACOs that would have had shared losses exceeding $6.8 million to retroactively transfer from a two-sided risk model to a one-sided model with no risk of shared losses. While CMS published information about the results of Pioneer Model PY1’s total shared savings and shared losses, it did not include the information about the five ACOs that had been permitted retroactively to select a one-sided payment arrangement. The $6.8 million in losses that they would have incurred were not included in the results.”


The Importance Of Being
by Abraham Verghese
Recently a colleague asked if I would address a small, informal quarterly gathering of hospitalists. We settled on a date, and when she asked me for a title for my remarks, I offered: “Presence.”
From the pause on the other end of the line, it was clear she seemed to think there was more to follow—a subtitle perhaps, without which the word seemed to dangle.
“Just ‘presence’?”
(I’d been doodling on the paper in front of me, trying it out.)
“Yes,” I said. “Presence, period.”
On the paper, the period seemed critical. (I’m reminded of the precocious boy-narrator in an Isaac Babel story who says, “No iron can pierce the human heart as icily as a well-placed period.”) My period asked me, the reader, to stay with the word—to be present. No subtitle. Just: Presence.
The idea of “presence” had its origins for me in a parking lot not far from my office at Stanford University and near one of my favorite spots on campus, the Rodin Sculpture Garden. In walking past Auguste Rodin’s Gates of Hell, a massive pair of bronze doors inspired by Dante’s Inferno, I’m consciously or subconsciously reminded to seize the day. In the past year, I’d watched construction on a unique building in the same vicinity. The signage said it was to be the home for the modern art collection of one family, the Andersons, who were giving the collection to Stanford. From a distance, it looked like a cake box sitting on a narrower and well-lit square pedestal.
It occurred to me that the intent of the university and of the Andersons might be that the collection should not only enhance our lives as viewers but specifically enhance our lives as educators, even in fields far removed from art history. Fields such as my own of internal medicine and infectious diseases. In clinical teaching, I’ve tried when I can to link art and medicine using such iconic paintings as Luke Fildes’s The Doctor. But with modern art, with the abstract, it feels challenging to make such a connection. In truth, modern art has always felt a little intimidating to me.
One afternoon shortly after the museum opened, on my way back to my car, I impulsively decided to walk in. It was spring. I felt brave. I imagined the punchline: “Physician walks into Modern Art Museum!” After all, this isn’t a place where we routinely find ourselves, or if we do, it’s not related to work. Personally, I felt my visit was related to work and not just by proximity to my place of work: I was here in the true spirit of an educator (so I told myself) trying to climb out of what novelist Walker Percy called the ruts of specialization, the narrow chutes of professional work and our specialized language that can leave us wearing blinders to other forms of knowledge and inquiry.
The building was suffused with natural light. There were no corridors, no rooms that led into rooms, no sense of a labyrinth. Instead it was open—the cake box sans cake. I could and did stroll around the whole thing in fifteen minutes. It was much less intimidating than, say, the Louvre, where a tourist popping in for a few hours (after standing in line for a long time) can come away overwhelmed, feeling the mind has been shrunk instead of expanded. And yet the compact space (by museum standards) held a who’s who of modern art: Jackson Pollock, Mark Rothko, Willem de Kooning, Wayne Thiebaud, and many more. Iconic names. I had a vague cognitive knowledge of that kind of art but no experience. Just as I might know who RuPaul is, or 50 Cent or Amy Winehouse—but don’t ask me to hum a tune.
I was pleased with myself after my visit. Whatever fears I had (about being grilled about my knowledge by docents, or scrutinized by security guards, or finding the art to be opaque and mysterious) were unfounded. The place was inviting and friendly.
From then on, I made it a practice to stop in.
It was in the repeated visits that I began to recognize and relate to certain paintings and sculptures. If I imagined myself to be a crude but sentient probe being sent into orbit around an unknown planet, then in my loop, my antenna received different and discrete stimuli. I was surprised to find I didn’t really care for “funk” art. Even though funk art is “figurative”—featuring recognizable things such as fish and words—I wasn’t drawn to it. Not yet anyway. My reaction was the opposite: to hurry past.
But I found myself seeking out the bench in front of Pollock’s Lucifer and Rothko’s Pink and White over Red. The scientist in me recognizes my bias here: These are well-known artists, their works the jewels of the collection, and the benches strategically placed. Still, I believe it was more than that: I was also responding to the inherent appeal of these paintings, even though the words to explain why didn’t come easily.
On Thursdays I have the great privilege of making afternoon rounds with the three chief residents in internal medicine at Stanford Hospital. They often have a patient in mind for the four of us to see. These sessions are about reading the patient’s body as a text, about bettering our skills at mining the body for all it is saying. But we make all sorts of diversions, and one afternoon, in lieu of the bedside, I took them to the Anderson Collection. I made no claim to knowledge or purpose. I wasn’t the tour guide—I just walked them through a space that was new to them. In doing so, I thought of a connection to our clinical work: I drew an analogy to the phenomenon of “transference” and “countertransference” in patient care. In psychiatry, for example, patients can develop feelings for the therapist; this “transference” is often useful for patient and therapist to dissect. “Countertransference” refers to the feelings the therapist develops for the patient, feelings that range from anger to attraction. Such feelings are normal and important to recognize in oneself, primarily so as not to act on them. Walking among these paintings and observing our responses—both positive and negative—was a means of being self-aware and attentive to a variety of countertransference.
After nearly a dozen visits, alone and with others, even though I wasn’t consciously trying to relate the art to the pedagogy of medicine, I began to make connections. My tool is the medical gaze, the desire to look for pathology and connection, and it would seem there was no opportunity for that within a pigmented square of uniform color or a rectangle of haphazard paint splashes. But in me a profound and inward sort of observation was taking form.
Pollock’s piece, Lucifer, had a manic energy, a seduction—not unlike some hypomanic people I know. (We all know them; they seem more prevalent than they really are, such is their energy.) The force was confined to an elongated rectangle against a white wall. I could imagine the frenzy of an artist standing over the canvas—no easel here—throwing paint at it, using different colors, using anything but a brush (turkey basters, syringes). At times I felt I was looking into a mind—his, or maybe mine—and seeing the neurofibrillary tangle. It was not the mind depicted in the static histology slides of medical school; it was dynamic and alive, like watching thoughts emerge from a substrate of neurons, or a dream evolving. Yet there was order in the midst of that anarchy. From a distance, the random splashes of color looked mostly black and green, and only when you got close could you see thin streaks of vibrant yellow and blue and red, which were nonetheless necessary for the energy perceived from afar. My response to Lucifer was far from constant; it seemed to have a connection with how my day had gone.
As my visits accrued, I felt much like someone returning to a city over a long time span. Each visit I noticed that I had changed, and what I observed was changing, too.
At first I had studiously avoided reading anything about the art. The rationale was this: In bedside physical exam rounds with my medical students on Wednesdays and chief residents on Thursdays, I ask that if at all possible, the physician or the student who knows the patient, and is bringing us to visit, not tell us anything medical about the patient—especially the diagnosis. This isn’t so we can be clever and deduce this on our own but rather to ensure that on these rounds (which are not about management, but observation) we are not biased by a label. We can read the body as a sacred text being opened for the first time. Labels such as “cirrhosis” or “endocarditis” can blind us to what else is on display. Similarly, with the paintings, I had wanted to experience them without bias. Now that they were becoming familiar, I read about whatever work caught my fancy.
In 1956 Pollock wrote of his work:
“When I am in my painting, I’m not aware of what I’m doing. It is only after a sort of ‘get acquainted’ period that I see what I have been about. I have no fears about making changes, destroying the image, etc., because the painting has a life of its own. I try to let it come through. It is only when I lose contact with the painting that the result is a mess. Otherwise there is pure harmony, an easy give and take, and the painting comes out well.”
The italics are mine. That line resonated with me because it paralleled the dystopia that is prevalent in American health care. It’s the thing that is dragging down the experience of patients and physicians alike: the sense of losing contact. More specifically, it’s the sense that the intermediary of the electronic medical record (EMR) and fulfilling every “Lean” mandate has made us lose contact with our work. The result is a mess, with great unhappiness in the ranks.
Rothko’s Pink and White over Red is a square of a beautiful and vibrant red with a long, horizontal pink rectangular slit at the top, like the slot in the door of a speakeasy as depicted in a noir film—the opening through which the bouncer checks you out. It’s the sort of painting that when I was young and ignorant I might have been tempted to dismiss. (“Big deal, I could’ve done that.” The older me might have replied, “Yes, but you would never have thought of it.”) But having learned to sit with the painting, to be present, I viewed it differently. It seemed to represent my interior space, what I see on the back of my eyelids when I close my eyes, the image still etched with the glow of the window through which I was gazing. It is soothing. It is the womb. It is emotion. It is pre-consciousness.
In the most cursory reading of Rothko, I came across this:
“If you are only moved by color relationships, then you miss the point. I’m interested in expressing the big emotions—tragedy, ecstasy, doom.”
And:
“Art is an adventure into an unknown world, which can be explored only by those willing to take the risks.”
Forgive me if I felt he was speaking to me personally, rewarding me for being brave enough to drop in from the parking lot and engage with his work. There was also pointed instruction here. If we were to substitute the word medicine for art, his aphorism would read:
“Medicine is an adventure into an unknown world, which can be explored only by those willing to take the risks.”
Being with patients, being present and willing to engage directly in the manner they most want is a form of risk. The representation of the patient in the EMR (the iPatient, as I call it) is necessary. But being with the iPatient too long is a guaranteed way of not being present with the actual patient. It can even begin to feel safer and simpler to be present with one of the many “enchanted objects” around us—computer screens, tablets, and smartphones—than with human beings. Perhaps this is what I most want to teach at the bedside: not the causes of low sodium or the latest sepsis protocol. Or not just that (and besides, odds are you can find that online in a flash). I want to teach the art of being present. That, as Rothko says, is an adventure into a risky, unknown world.
I look back and think of patients long gone, particularly patients in the early AIDS era, who were young men for the most part at a time when I too was a young man. Was I present? They were full of the ripening of life, full of desire and longing and ambition, at a time when I too was full of those things. I wanted to “do” for them, to fix what ailed them. I wanted to be busy with them in a medical way, even though in those days we had no effective HIV medications and there was nothing we could do to change the course. I would examine them, because that was what I knew to do, and that ritual, with its laying on of hands, conveyed an important message to the patient that they would not be abandoned. The absence of any treatment also taught us physicians powerful lessons. I learned from my physician assistant, Della, a warm and caring woman who felt less of the pressure to do, and instead could just be. I remember her cajoling me to make more home visits. Once as we walked in to see a patient who was hours from exiting the world, I said, “What are we going to do here, Della?” She said: “We are going to be with him.”
As the German philosopher Martin Heidegger said, sometimes words and speech (and action, I might add) are just a way of forgetting our being or that of the person we are dealing with. I don’t think I got it then. I get it now.
Recently, while on rounds with my students, we visited with a patient whose mother was in the room. They were both so gracious, and as ill as he was, he was generous in allowing us to examine him, to focus on aspects of his illness that had little to do with management but were purely to educate the students. Once we were in the hallway, I asked the students if they had noticed anything special about the mother. They had not. And yet the mother had vitiligo, a condition that strips the skin of pigment, a patchy process at first that eventually results in no pigment anywhere for most people with the disease. While it had no bearing on the son’s condition, it was a striking observation because the son had darker skin and the mother was almost white. Had we entered as true beginners without homing in on the label “patient,” they might have seen it too.
That sense of starting with a blank slate is a feeling I relish. It has become harder to come by. Increasingly, students have a “flipped” patient experience, where a “new” patient is someone they have already met in the computer, having read all their labels before seeing them in the flesh. It is as far from the blank canvas as one can get.
My colleague Alexander Nemerov, an art historian and Stanford professor, recently gave the “First Lecture” at the university—an occasion when all thousand-plus Stanford freshmen gather in Memorial Auditorium on their first academic day to hear from a chosen faculty member. In his lecture, Nemerov spoke of Helen Keller, who at nineteen months experienced a febrile illness and subsequently lost sight, hearing, and therefore speech. She was in darkness until a remarkable teacher, Anne Sullivan, came into her world.
Nemerov described his visit to the Keller home in Alabama, and to the now-famous water pump on the property, as if visiting a shrine. There, after months of struggling to teach Keller language through signing, Sullivan had held the young girl’s hand under the flowing liquid of a hand pump and repeatedly signed out the word “water” in her palm. Suddenly, she broke through. The child understood, as Nemerov says, that the “word and the world could almost magically be the same thing.”
I resonated with the image of Keller at the pump. It seems to me that our efforts as teachers are encapsulated in that moment: Our job is to allow the student to “see” in this way, to open up their world.
What is it I want my students to see? I want them to see the signs of disease, the phenotypic manifestations of disease that get buried by the hype around genotype. I want them to see that the outline of a cigarette packet in the shirt pocket of a male patient tells us much more about the patient’s risk of sudden death than anything in his genome. So much of diagnosis is to be found in the history and the physical, which in turn guides us to order tests more judiciously. Those visits to the bedside with my students every Wednesday and Thursday—guiding hands to feel spleens and eyes to observe neck veins—are like putting their palms under the water pump, allowing them to feel and connect.
Beyond that, there is another kind of seeing that is even more important. Disease is easier to recognize than the individual with the disease, but recognition of the individual whose care is entrusted to us is vital to both parties. There are some simple rules: First, we must go to the bedside, for that is where the patient is. It’s a vital and simple step, but harder than it looks. It simply isn’t possible for the patient to feel recognized and cared for when they feel unattended; the fact that their data is getting a lot of attention in a room full of computer monitors where doctors sit does not satisfy. The gravitational forces of the hospital are always pulling us away from the patient to a screen, and it is not our doing. We are chained to the medical record, and every added keystroke adds another link in the chain. We must be unchained.
Second, when we go to the patient, it follows that we must listen, and we must examine with skill. The patient’s disease is not located on an image in the computer, nor on a histology slide, nor in numbers of body chemicals—it is located in or on their body. To touch the place that hurts, to examine the body, is to affirm the locus of their illness.
Third, one must revisit and revisit, as few things are completely revealed at the first encounter.
The crisis in health care—spiraling costs; inequities of care; the abysmal incentives for primary care; the paucity of geriatric care when our population is aging; physician depression, dissatisfaction, and attrition—offer no easy solutions. There are a few things that are timeless in medicine, unchanged since antiquity, which we can keep front and center as we bring about reform. One is the simple truth that patients want us to be more present. We as physicians want to be more present with the patient, as well, because without that contact, our professional life loses much of its meaning.
It is a one-word rallying cry for patients and physicians, the common ground we share, the one thing we should not compromise, the starting place to begin reform, the single word to put on the placard as we rally for the cause.
Presence.
Period.




Savings? Yes. But Narrow Health Networks Also Show Troubling Signs.

by Austin Frakt - NYT

You probably chafe a bit every time you learn that a certain doctor or hospital isn’t part of your insurance network. Narrowing the scope of your network helps insurers save money. They can drive hard bargains with doctors and hospitals to get lower prices and walk away from higher-priced ones.
Increasingly, insurers are offering narrow network plans. Would you enroll in one? So long as quality doesn’t suffer, consumers should welcome the lower premiums they may offer.
Researchers at the Leonard Davis Institute at Penn analyzed the relationship between network size and premiums for plans offered in the Affordable Care Act marketplaces. Plans with very narrow networks (covering care by less than 10 percent of physicians) charged 6.7 percent lower premiums than plans with much broader networks (covering care by up to 60 percent of physicians). This translates into an annual savings for an individual of between $212 and $339, depending on age and family size. For a young family of four, the savings could reach nearly $700 per year.
“Marketplace consumers are looking for value,” said Daniel Polsky, the University of Pennsylvania health economist who led the study. “That level of savings could be a very good deal for consumers, but whether these plans provide value depends on how they are achieving those savings.”
One way plans might save money could make it harder for patients to get care — so that they get less of it. Narrow network plans may do this if they don’t cover enough nearby providers, with the ones they do cover too busy to take new patients in a timely fashion. Clearly this would be especially problematic if appointments with one’s preferred primary care doctor are hard to obtain.
Are today’s narrow network plans actually doing this? Until recently, we had no data to answer this question. But two studies published earlier this year — one focused on Massachusetts, the other on California — provide some insight.
In 2012, the Massachusetts Group Insurance Commission, which provides health insurance to a lot of government employees in the state, offered most of them the chance to waive three months of employee premium contributions if they enrolled in new, narrow network plans. This premium holiday amounted to an average of $500 in savings to an enrollee. The new plans covered about half as many physicians and one-third fewer hospitals than prior, broad network plans.
The deal was offered to the 100,000 or so state employees and their dependents, but not to the nearly 20,000 enrollees who are state municipality employees. That created the natural experiment we economists love. By comparing the experiences of the two groups, the economists Jonathan Gruber and Robin McKnight teased out the effect of narrow network plans on the 10 percent of enrollees induced by the premium holiday to enroll in one.
Switchers spent a whopping 36 percent less on health care. Some of these savings can be attributed to narrow network enrollees who saw expensive specialists less. This could be because healthier enrollees who require fewer specialists were more attracted to the plans.
But savings were not entirely driven by healthier people who switched to the plans. They were also achieved by more efficient use of the health system. Narrow network enrollees used the emergency department less, particularly for conditions treatable in office settings. The per-visit cost of outpatient care also fell for narrow network enrollees, which would be expected if the plans paid lower prices. The authors did not find evidence that patients in narrow network plans used lower-quality hospitals, consistent with other work that suggests networks can be narrowed without sacrificing quality.
The savings were concentrated among enrollees who retained their primary care physician as they switched plans. And the distance that narrow network enrollees traveled for primary care visits — but not for specialists — fell. This suggests that plans that narrow their networks of costly specialists but maintain or increase their network of primary care doctors are on the right track. Not only can primary care doctors help patients select specialists and hospitals — and advise them when they’re necessary at all — but retaining primary care physician relationships is also important to many patients.
That’s why the results of a recent study of new plans offered in California are especially troubling. Simon Haeder, a West Virginia University political scientist, and colleagues at the University of Wisconsin-Madison and the University of California, Irvine, found that access to primary care physicians was relatively poor for a sample of plans offered through California’s Affordable Care Act Marketplace in 2015. Most Obamacare marketplace plans in California, as well as in other states, are narrow network plans.
Using a “secret shopper” approach, the study found that only about 30 percent of attempts for appointments with specific primary care doctors were successful. In this approach, an individual pretending to be a patient seeking an appointment called the offices of over 700 primary care doctors listed in marketplace plan directories.
In about 15 percent of cases, the doctor did not accept the caller’s plan, despite being listed in its directory. In nearly 20 percent of cases, the directory included the wrong phone number or the number was busy in two calls on consecutive days. Ten percent of doctors called were not accepting new patients. And about 30 percent of doctors called were not primary care physicians, despite being listed as such in the directory.
When callers were able to make an appointment, the average waiting time for a physical exam was about three weeks. In cases for which the caller pretended to have acute symptoms, the average time until an appointment was about one and a half weeks.
“If patients struggle to obtain primary care appointments, narrow network plans may have a rocky future,” Mr. Haeder said. Consumers revolted against managed care in the 1990s, he notes, and they could very well revolt against poorly managed and loosely regulated narrow networks.
http://www.nytimes.com/2016/10/18/upshot/savings-yes-but-narrow-health-networks-also-show-troubling-signs.html?hpw&rref=upshot&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well

HealthCare.gov Will Add ‘Simple Choice’ Plans in Effort to Improve Value

by Robert Pear - NYT

WASHINGTON — When the Affordable Care Act’s health insurance marketplace opens in two weeks, many consumers will have a new option for the law’s fourth open-enrollment period: standardized health plans that cover basic services without a deductible.
With many health plans on the marketplace coming with deductibles in the thousands of dollars, consumers have complained that they were getting little benefit beyond coverage for catastrophic problems. The new standardized options are meant to address that concern — to ensure that “enrollees receive some upfront value for their premium dollars,” as the Obama administration said.
“Too many people, especially people on high-deductible plans, are still struggling to afford the care they need,” Senator Sherrod Brown, Democrat of Ohio, said, praising the new effort.
But the new plans could still be costly. While the federal government specifies deductibles, co-payments and other out-of-pocket costs for the standardized options, it does not limit premiums, which in most cases are still regulated by state insurance commissioners. The administration has said it does not expect the standardized options to have a significant effect on premiums in 2017.
Federal officials say the new option will simplify shopping under the Affordable Care Act by reducing variation among plans, and consumer advocates like the idea. The standardized options will be identified on HealthCare.gov with the label “Simple Choice.”
Open enrollment begins Nov. 1 and runs through Jan. 31. People without health insurance next year face possible tax penalties that could exceed $700 a person.
“This is one more tool that will make it easier for consumers to select the right plan,” said Marjorie K. Connolly, a spokeswoman for the Department of Health and Human Services.
Sandy H. Ahn, a researcher at the Health Policy Institute of Georgetown University, said the “standardized plans will allow consumers to make more of an apples-to-apples comparison.”
Administration officials did not say how many such plans will be available, in which states they will be offered or how much they will cost. The government encouraged but did not require insurers to offer standardized options.
The standardized version of a midlevel silver plan has a $3,500 deductible, but primary care and specialty care visits, outpatient mental health services and prescription drugs are generally exempt from the deductible. In other words, consumers may face co-payments, but they do not have to meet the deductible before the insurance company starts to pay for such services.
On HealthCare.gov, the administration intends to introduce the idea of standardized options by describing Simple Choice as “the easiest way to shop for plans.”
“All Simple Choice plans in the same category (like Silver) have exactly the same core benefits, deductibles and co-payments,” states a message to be displayed on the federal website. “When viewing Simple Choice plans, you can focus on other important features that may be different: monthly premiums, additional services covered, doctor and hospital networks.”
The Obama administration is still struggling to keep the Affordable Care Act affordable for many consumers. State officials have approved rate increases of 25 percent or more for many plans in 2017, after finding that insurers lost tens of millions of dollars in the exchanges. Aetna, UnitedHealth and other insurers have pulled back from the public marketplace, leaving consumers in many states with fewer choices.
Under the standardized version of a silver plan, co-payments would be $30 for a visit to a primary care doctor, $65 for a visit to a specialist, $15 for a generic prescription drug, $50 for a preferred brand-name drug and $100 for a nonpreferred brand-name drug. Consumers may be responsible for up to 40 percent of the cost of specialty drugs, including certain high-cost medicines for cancerrheumatoid arthritis and multiple sclerosis.
For the lowest-income families, the charges would be lower.
Federal officials said they had studied several state-run exchanges — in California, Connecticut, Massachusetts, New York, Oregon and Vermont — that provide standardized options.
Peter V. Lee, the executive director of the California exchange, said standardized options had contributed to the stability and success of the marketplace there.
“Californians seeking coverage through the marketplace can easily compare health plans, knowing that every health plan has the same cost-sharing levels and benefits,” Mr. Lee said.
Insurers generally dislike efforts to standardize health plans. Standardized options “increase the complexity of the decision-making process” by adding one more factor for consumers to consider, said America’s Health Insurance Plans, a trade group.
In a letter this month to the Obama administration, Anthem, one of the nation’s largest insurers, said, “Standardized benefit designs threaten to commoditize insurance and stifle innovation, while potentially misleading consumers.” The administration said insurers still had discretion to vary many features that would not be standardized.


Converting paper medical records to digital files a slow, difficult process

by Douglas Rooks

Asked about his interest in better medical record-keeping, Devore Culver tells a brief but vivid story. He was a young unit coordinator – part secretary, part head nurse – at Mass General when, he said, “I participated in killing a patient.”
“Everything was on paper, and there was a lot of bad information,” Culver said of the records. One day, he was talking with a nurse who carried out a physician’s order to give a diabetic patient 40 units of insulin. Not long after, an intern stopped by and told them he had already given 40 units to the patient – who died of an overdose.
“There had to be a better way,” Culver said. And he has devoted most of his subsequent career to that goal.
Since 2004 he has tackled the electronic medical records (or EMR) problem, first at Eastern Maine Medical Center in Bangor, and now with Maine HealthInfoNet, a nonprofit, state information exchange. Despite recent funding from federal sources, creating a coordinated network of digitized medical records has been daunting and progress slow. Expectations that the network would be operating and producing more coordinated care and, perhaps, lower health care costs, haven’t as yet materialized.
It turns out that the problem is nowhere as simple as transferring paper records to computers. The whole nature of health care “data” is radically different from what we normally expect computers to do, said Culver.
“This is not like banking, where you can quantify everything that’s important,” Culver said. Reducing an individual’s health care history, and prospects, to numbers isn’t easy, and there is so far little agreement even on such seemingly simple points as how to define the “normal” ranges on various medical tests.
The amount of data available, Culver said, is overwhelming. HealthInfoNet can, “every night, run information for 1.5 million people.” Yet sorting, defining and translating data into terms that can benefit providers and their patients is still very much a work in progress.
Andrew Coburn, professor of public health at the University of Southern Maine’s Muskie School, has been observing health care reform since before the Clinton Health Care Taskforce in 1993. EMR systems have required providers to spend more time entering data, which may reduce “face time” with patients. Yet he said electronic records offer so many potential benefits “there’s no going back” now.
Coburn said there can be “huge safety and quality benefits” from creating records that “capture the nuance of clinical information.” And, he said, “When a patient can go to an ER after being treated in a separately owned cancer facility, that’s a really important clinical benefit.” Yet attaining those results in a health care system that still involves thousands of separately owned providers, is likely to be elusive for some time to come.
THE DIGITAL PUSH
The notion that medical records should be digitized so they can be shared easily among a person’s health care providers was part of the American Recovery and Reinvestment Act of 2009, the “stimulus bill” that followed the nation’s financial crash a year earlier. The initiative was further refined by the Affordable Care Act in 2010.
Proponents argued that easy, but protected, access would allow for more informed, coordinated care, more engagement with patients and their families, and prevent redundant testing or dosing such as the one that doomed the patient at Mass General. The federal government mandated that health care providers should demonstrate “meaningful use” of EMR by Jan. 1, 2014. Those who didn’t by 2015 could be penalized with a 1 percent reduction in Medicare reimbursements.
The ARRA provided $19.2 billion for improving health care technology, a significant portion of which went to EMR systems – by far the largest federal commitment to date. All 50 states received money, including Maine, which received $6.6 million.
Culver said that the billions of dollars provided to states under the ARRA were a mixed blessing. The fundamental problem, he believes, was that the software programs that quickly went into use were being sold by experts in technology who knew little about health care, to health care experts who knew little about technology. Yet the grants did lay down a foundation for eventual improvement, he added.
And there have been success stories. Culver helped St. Joseph’s Hospital in Bangor reduce its readmission rate by 50 percent through better tracking of which patients would need additional support after being discharged.
In the five years Maine HealthInfoNet has been up and running, it has focused on “making data more meaningful,” Culver said – a key point since, as it turns out, doctors don’t even have a standard terminology for identifying something as simple as the sound of a patient’s cough. At this point, he said, along with Maine, only Delaware and Nebraska, and to an extent Rhode Island, have created statewide systems that meet this “value added” standard set by the federal government.
EFFICIENCY AND WORKFLOW
Dan Mingle understands the complexities of EMR. A family physician who practiced for 14 years in Norway, he grew frustrated by what he saw as the disconnected nature of his profession. Since middle school, “I had always had an aptitude for electronics,” he said, even buying one of the first Tandy computers. But his interest had been dormant until he moved to the Maine-Dartmouth Family Medicine Residency, a teaching institution that’s part of MaineGeneral in Augusta.
Maine-Dartmouth needed better electronic tools for residents, and Mingle was soon working full time on the project, eventually become chief information officer for the entire hospital.
He was able to set up medical reporting forms that could be used by all the providers in the regional hospital’s area, and the results were a major advance toward the aim of producing instantly available, standardized records that could be used by emergency room doctors and everyone else who might be treating the patient. Yet scaling up such advances to the state, regional and national levels has been daunting.
Mingle founded Mingle Analytics in 2011 in South Paris, which now has 58 employees and contracts with providers, from solo practitioners to systems with thousands of employees, in all 50 states. The company is trying to bridge the gaps between the original federal initiative and the day-to-day issues each provider faces in keeping track of patients, billing insurance companies, and trying to guide people toward better health, rather than just treating illness.
Mingle said he recommends three strategies to create a path toward successful EMR implementation: “Standardize, integrate – make sure everything works together,” and “simplify – look for ways to cut out steps.” Too much initial EMR work, in his view, tried to adapt electronic systems to existing patterns rather than figuring out how to create efficient work flows.
“Engrave them on your boardroom wall,” Mingle said of the three points. “If your policy doesn’t follow one of these rules, it’s probably not the right decision.”

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