Mar
18

A very brief summary of the reform bill process

Not even the most intense civics class would have prepared you for the theatrics coming our way in Congress.
I’ve read several articles about the Democrats’ strategy to get reform passed and signed into law and the GOP’s efforts to block reform. There’s at least a semester’s worth of study just in the Congressional manueverings, with a full year required to flow the Senate processes, parliamentary rules, and political manupulation thereof.
Politico has a pretty good synopsis, with the net being this.
1. The House has to pass the current Senate bill as is.
2. There are provisions in the Senate bill that are repugnant to many Dems; they will pass a ‘sidecar’ bill to address those provisions which will then go to the Senate.
3. The Senate Republicans will seek to delay the vote in the House and Senate thru debate, asking for votes on amendments to peel away Dem votes, and seeking rulings from the Senate parliamentarian on points of order. These last are a key part of the Republican strategy as the rules for what can and cannot be passed thru the reconciliation process are arcane and complicated.
4. If the Dems are successful, they will seek a vote that only requires 51 yeas, and the reform will pass.
It’s anyone’s guess if that will happen. If it does I’ll be looking closely at the final bills to ferret out the key provisions…
Posted via iPhone so typos are probable.


Mar
12

Palin’s off message

In what must be one of her more enlightened statements, Tea Party diva Sarah Palin told a crowd of Canadians that in her youth, “We used to hustle over the border for health care we received in Canada. And I think now, isn’t that ironic? “
You betcha.
That from the same person who has repeatedly referred to her good fortune in obtaining ‘good union jobs with great benefits’…
Big tip of the toque to Maggie Mahar for the info.


Mar
10

Unsustainable, irrational, unaffordable health reform

I’ve been avoiding posting on health reform of late, mostly because I’m so dismayed by what’s happened, and what’s happening.
The Republican Congress passed and then-President Bush signed into law Medicare Part D which added about $8 trillion to our national debt.
Now the Democrats want to one-up the GOP by passing what would be a massive entitlement expansion, with no meaningful cost containment. They want us to believe we can expand coverage now and fix the cost issue later.
No, we can’t, and no, we won’t. It is far more difficult to get people to give things up they already have than to convince them they can’t afford those things in the first place.
The health care reform debate has provided all the evidence we need to see how hard it is to get physicians, or insurance companies, or unions, or voters, or employers, or state regulators, or pharma, or device companies to agree to give back business/rights/revenue/coverage they have today.
Bob Laszewski said it well in his post today –

“adding 30 million more people to an unsustainable system expecting it will create an even bigger crisis and thereby force real reform is tantamount to reboarding the Titanic in the hopes it will sink faster. It is also hard to see how doing such a thing is the politically courageous thing to do.
Just where is the moral imperative in ramming a trillion dollar entitlement expansion through knowing full well it will make our long-term deficit nightmare even worse–for those now uninsured and for everyone else?
The Democratic health care bill makes little if any systemic changes to the health care system–certainly not at the level we need.”

Neither party is acting in the best interest of the nation, or of their own constituents for that matter. And anyone who believes we can pass it now and fix it later is living in a fantasy world.
One example proves the point. The bill presently under consideration doesn’t address the ongoing issue of Medicare physician compensation, a failure that precisely illustrates the problem of passing it now and fixing it later. Medicare physician compensation legislation was passed a decade ago, with hard and tough limits on physician reimbursement. Yet every year Congress votes to overturn the cuts, with the result that we now have a $300 billion deficit in the program.
What does this mean for you?
Not only is sausage making ugly to watch, it produces inedible results
.


Mar
10

Time for more science in medicine – and less marketing

Prostate cancer may be one of the most over-diagnosed and over-treated conditions in the nation. It is also one of the most over-publicized, with ex-politicians (Bob Dole) and sports figures (Ed Randall) encouraging all men over 50 to get a test that is no more accurate than a flip of the coin, costs big bucks, and may well lead to costly, unnecessary, and painful surgery.
In an editorial in today’s NYTimes, Richard Ablin, who discovered PSA (the enzyme that is the target of the test), publicly disavowed the test, calling it a “hugely expensive public health disaster”. He went on to detail the statistics: “American men have a 16 percent lifetime chance of receiving a diagnosis of prostate cancer, but only a 3 percent chance of dying from it. That’s because the majority of prostate cancers grow slowly. In other words, men lucky enough to reach old age are much more likely to die with prostate cancer than to die of it.” [emphasis added]
The cost of prostate hysteria comes to about $3 billion a year for the tests, plus the pain and discomfort and sexual dysfunction – and cost – of men treated unnecessarily.
One study found “1410 men would need to be screened and 48 additional cases of prostate cancer would need to be treated to prevent one death from prostate cancer.”
Another study found “94% of the cancers detected with the routine PSA blood test would not cause death before the age of 85.”
What’s really disturbing about this is the evidence was there 15 years ago. I wrote a paper for a now-defunct journal describing the results of AHCPR’s Prostate Outcome Research Team which documented much of the problems described by Dr Amblin today. Yet the science is hard-pressed to overcome the marketing muscle behind the test, muscle that has been used to develop fake grassroots organizations supporting the testing (aka astroturf). These organizations are funded by companies who benefit not only from the test, but the devices and seeds used to ‘treat’ positive results.
Here’s one example.

Michael Milken, the principle founder of the Prostate Cancer Foundation, is a significant investor in the venture capital industries. Are you aware that Michael Milken founded Proquest Investments, a $1 billion venture capital fund, with a specific investment thesis centered around prostate cancer after founding the Prostate Cancer Foundation? If you review the board members to ProQuest, you will find that six of the seven scientific advisors to ProQuest Investments are executives or member doctors to the Prostate Cancer Foundation. It seems clear that ProQuest Investments operates as a for profit extension of the Prostate Cancer Foundation, a 501(c)(3) designated non-profit

.
This not for profit encourages testing and screening, resulting in millions of unnecessary tests, thousands of impotent and incontinent men, and billions in revenue for the physicians, device and pharma companies, and facilities providing the testing and treatment.
What does this mean for you?
Payers are wasting money, patients are getting unnecessary treatment, and physicians are violating their oath to do no harm. Which category are you in?
Note – I’ve contacted Ed Randall, the host of the popular (and very good) Talking Baseball radio program several times in an effort to encourage him to stop promoting PSA testing. He’s never responded. I encourage you to contact Mr Randall yourself here – http://www.erbatforthecure.org/ and ask him to reconsider his advocacy that harms patients and increases costs while benefiting for profit companies.


Mar
5

Health reform will fail

As presently conceived, health reform will fail. I’m talking not about the chances of a bill being signed into law but rather what happens when that happy day arrives.
I say this with deep regret, as I am an ardent advocate for health reform and a strong supporter of the President.
But we cannot force people of limited means to buy coverage they can’t afford, and we cannot force insurers to take all comers if people can opt out whenever they wish.
Without cost control, insurance costs won’t moderate, and without lower health insurance costs, many Americans can’t afford coverage. Despite the efforts of many, this seemingly-obvious conclusion hasn’t affected legislative efforts. Democrats are desperately trying to ram thru a huge entitlement expansion during a deep recession, while Republicans gleefully distort and demagogue, much more interested in helping the Dems commit political suicide than actually solve the health insurance crisis.
Over the last decade health insurance costs went up 131%; an annual rate of 8.7%.
If we are able to keep inflation to only 8.7% (doubtful in my mind), a family will pay $30,800 for insurance in 2019,
That inflation rate will moderate somewhat if everyone is covered (less need for cost shifting), but we’re still stuck with the prospect of forcing nursing aides making $12 an hour to buy coverage that they can’t afford.
To date private insurers have shown no ability to control costs; they’re too worried about on a reprise of the ‘managed care backlash’ of the nineteen-nineties when they should be thinking about the prospect of single-payer, a prospect that will look increasingly likely as health insurance costs approach $30,000 per family.
What does this mean for you?
There’s a lot of opportunities here for innovative, intelligent, creative approaches to coverage.
Insurers and employers will have to leave their comfort zones and try solutions that will make them nervous, but the ones who do stand a much better chance of surviving than their conservative competitors.


Mar
3

Medicare physician fees: the Senate kicks the can further down the road

Yesterday the Senate passed a bill extending unemployment and other benefits and subsidies for another month; one of the less well known provisions prevented imposition of a 21% cut in Meducare physician reimbursement.
‘Prevented’ isn’t exactly correct; the bill merely delayed implementation of the cuts till the end of March.
For years Congress has avoided implementing Medicare reimbursement decreases, bowing to intense lobbying by physian groups and other parties outraged at the very idea that their income will be reduced. I can’t really blame the docs; as I’ve reported here in the past physician income, especially generalist physician income, has not kept pace with inflation for several years.
What I’m less impressed with is the failure of physician advocacy groups to offer a reasonable alternative to the present fee-for-service system. Anyone with a clue acknowledges that FFS is one of the biggest problems in our health care system, rewarding providers for doing things to patients and not for keeping them healthy.
At some point we have to – must – adopt reimbursement methodologies that reward results not activity.
Don’t expect this to happen before the end of March. No, we’re much more likely to see the Senate boot this can once again, and with it the chance to fix a fundamental problem with our health care system.


Mar
2

Washington politics will hit workers comp

The political grandstanding and point scoring on Capitol Hill will have significant repercussions for work comp, with some states directly – and quickly – affected and others feeling the impact later and more subtly.
I’m refering to the inability of the Senate to pass
legislation preventing the 21% cut in Medicare physician reimbursement that went into effect yesterday.
The Senate is trying to pass legislation to (temporarily) prevent the cut but Sen Bunning (R TN) is holding up passage. I’m a bit conflicted over Bunning’s move: he’s a bit of a wild card and rather erratic, but his stated rationale isn’t unreasonable; he wants to know where the money’s going to come from.
Regardless, several states base their WC fee schedules directly on Medicare: the cut will theoretically impact physician bills for services rendered beginning yesterday and cotinuing until the impasse is resolved.
I’m actually in DC now, if nothing’s changed before I get back to the office I’ll dig out my files and report on which states are directly affected.


Feb
24

The Anthem Wellpoint mess: the other part of the story

There’s something missing from the debate/argument/shouting surrounding Wellpont’s rate increase announcement; nowhere, in any statement I could find, did the company or it’s critics address the core issue, Wellpoint’s inability to control costs.
Isn’t that what healthplans are supposed to do? Isn’t that a core part of their reason for existence?
If they can’t control costs they aren’t much more than transaction processors and provider contract aggregators.
Wellpont did make statements about the need to raise rates to address medical inflation and an aging population; what wasn’t presente was their solution to the problem.
Why not? Doesn’t one of the largest healthplans in the nation know how to control costs?
There’s no evidence that Anthem or United or Coventry or Aetna or Humana have any ability to manage medical care such that quality is high and costs aren’t. What is evident is their ability to raise rates to stay above medical inflation.
And therein lies the problem. Health plans, health insurers, both for- and not-for-profit, haven’t controlled costs. And outside the relatively minor investments in disease management and nascent provider profiling efforts, there is no evidence they are even working hard to figure it out.
I’m having a hard time understanding how the private sector is going to solve the health insurance crisis. Truth be told, Medicare’s blunt and clumsy approaches, for all theirany problems, have been more successful than any private plan.
What does this mean for you?
When costs get unaffordable, health plans will have no one to blame but themselves if they find their role reduced to administering a single payer program.


Feb
22

The Anthem rate increase – the reality behind the politicking

Anthem Wellpoint’s announcement that it was raising premiums up to 39% for members covered by their California individual insurance product hit at a really bad time – for Anthem.
HHS Secretary Kathleen Sibelius reaction was immediate and blunt, as she ordered a federal probe into the rate hike.
“It remains difficult to understand how a company that made $2.7 billion in the last quarter of 2009 alone can justify massive increases that will leave consumers with nothing but bad options: pay more for coverage, cut back on benefits or join the ranks of the uninsured.”
She’s right, as far as it goes. And things heated up even more last week, with the release of a report on insurance rate increases around the country.
To justify the increase, Wellpoint claimed
_ healthy customers are dropping coverage to save money while sicker ones retain it and run up medical bills
_ healthy customers also are switching to cheaper insurance options, further dinging revenue
_ some customers are moving into a higher age category that carries higher premiums
_ deductibles and co-payments haven’t gone up with inflation
_ prices for medical care are rising
_ people are using more health care, again, age is a factor
Here are the facts
1. The individual business accounts for 10% of Wellpoint’s California membership, or about 600,000 members. (other reports indicate this figure is higher, but this comes from their state filing)
2. The average rate increase will be about 25%.
3. Data from their filing with the state appears to refute Wellpoint’s claim that membership is declining, as it actually increased over the year.
4. The claim that healthier members are dropping coverage while sicker, more expensive members remain in the plan is likely valid. This is what happens when rates go up and healthier people, who have the option of joining a cheaper plan, leave while the members with pre-existing conditions who can’t find adequate, affordable coverage have to stay with their current plan.
5. Despite claims fro Sibelius et al, Wellpoint is not that profitable; while it did make $2.7 billion in Q4 2009, most of that was from the sale of their PBM division. In total Anthem (the parent company) made $4.7 billion last year on $65 billion in revenue; a 3.1% profit margin (on ongoing operations, discounting the one-time profit from the PBM sale).

And here’s the editorial view.

Health insurers are not that profitable; as an industry, net profits were 2.2% in 2008. I’ll stipulate that this is in large part due to a lack of creativity and foresight on the part of insurers, coupled with a demonstrated failure to do what they’re supposed to do – deliver good coverage at affordable prices. Most insurers are not much more than transaction processors and provider aggregators.
Another example of the insurance industry’s willingness ongoing penchant for shooting itself in the head. Health reform is clearly a highly politicized topic, yet just a couple days before the rate increase was announced, Wellpoint settled a dispute in California by agreeing to take back 2330 members they had terminated after those members had the temerity to actually submit bills for medical care.
Who could possibly have predicted the hue and cry? That a big rate increase after settling a rescission dispute would raise the ire of politicians while the nation’s debate on health care reform is still at full volume?
What does this mean for you?
Perhaps this will do the industry some good, as the focus on profits will reveal insurance companies aren’t making big bucks, and politicians will start searching for other, more meaningful areas to address.
Doubtful.


Feb
10

What reformers and their opponents should know

I’ve never had a guest post on MCM but an email from a colleague inspired me to ask if I could publish it not as a comment but as a post.
The writer addresses the issues laid out in my post earlier this week about the inherent conflicts in many Americans’ desire to pay lower taxes while getting whatever care they want from whomever they want.
Here’s the guest post.
Your most recent posting and photos brings to mind a case I am now reviewing of a woman who is suing a nearby city for a sidewalk fall. She has more than a decade of treatment and I have gone thru over 4000 pages of files for everything from GI problems, multiple orthopedic interventions including several ineffective spine and knee surgeries, obesity, migraine, ‘fibromyalgia’, history of hysterectomy at young age for pelvic pain, multiple bouts of depression and anxiety, history of domestic abuse, opiate dependence, multiple work comp, auto and disability claims. Her pharmacy records alone are a 59 page printout from 2006 through 2009. Providers include primary care, GI specialists, Gynecology, MSW, Psychiatry, Psychology, ARNP, chiropractors, massage therapy, acupuncture, neurosurgeons, orthopedists, physiatrists, physical therapy, neurology and some I have may be forgetting. And the file even includes over 100 pages of emails to and from the patient and the various providers.
I could go on. My task focuses mainly on causality of the recent injury claim to her back and spine complaints. As a psychiatrist I have been engaged along with other physicians because of the big picture; emotional issues are likely significant or primary drivers for her multiple somatic complaints, surgery, narcotic consumption and life decisions in general. Her demands for this injury are about $600,000 according to the referring attorney, with the inference being that her current problems are the result of a minor slip and fall in 2006.
I found myself wondering how much her care has cost the rest of us and how little of the care had any real value in terms of doing anything meaningful for her health and her life. She currently has chronic multi-system pain complaints, history of multiple surgeries without obvious underlying pathology or positive outcome in most cases, and she is now opiate addicted. My impression is that there may be more than a million dollars in care that she has received over the past decade or more. It is far from clear whether health reform would in any way change this for better or worse but she represents the Pareto principal (ie 80/20 or 90/10 or 95/5 rule in her case) in practice and she is far from alone. I am likely one of the minority of people engaged in the health debate who actually see individuals that reflect the problems we face in society and in health care. This case is an example of how we as a society medicalize emotional and social problems and the extraordinary level of waste represented by many medical interventions, to the degree that the interventions side-step or avoid what is really going on – but spend extraordinary resources in the process. Most practitioners can likely share similar stories from their training or practice, but it seems to be a secret hiding in plain sight. Consider the difference between this scenario and the meager resources available in much of the world for life changing and saving care. The cost of her care could vaccinate large geographic regions in the 3rd world and actually save lives if we could somehow reallocate the resources.
I find it interesting that some folks like us are willing to pay more in taxes for a better society, while we likely use relatively little in terms of government services – while many who rely on government largesse, like those riding power chairs because they are too lazy to walk, who may be collecting their own Social Security and Medicare while perhaps pulling out far more than they ever put in – are holding tea parties. Many of these protesters are one pink slip away from no health care and no income, yet they protest for who and for what?