Monday, December 21, 2009

Bittersweet Victory

The senate finally has the 60 votes it needs to avoid a filibuster from the increasingly ridiculous Republicans, who, for purely political reasons, have pulled out every trick in the book to obstruct health care reform. While this is certainly a good thing, my sentiments are mixed. On the one hand, health care will be extended to 31 million new people. On the other hand, Senator Reid's bill has way too many silly sweetheart deals, crazy payment schemes, and takes away the strongest lever for bringing down health care costs, i.e. the public option.

Some highlights of the "compromises" Democrats have made to get the bill passed:
  • Nebraska's Ben Nelson was able to get extra Medicaid funding for his state. Reminds me of a 1st round draft pick petulantly holding out for a better contract.
  • The ability for states to choose if their insurance exchange will pay for abortions.
  • A two-tiered insurance system for people who want to have an abortion. I.e. you have to buy extra insurance in case you think you might want to have an abortion at some point. Ironically, the Catholic Church AND Pro-Choice both oppose this part of the bill.
  • At least two national insurance providers chosen by the Office of Personnel Management, the same folks who run Congress' health plan.
  • Higher penalties on "Cadillac" health plans excluding plans for people in high-risk jobs like police, firefighters, miners, and longshoremen.
  • Higher penalties on the rich - 0.9% of income if you make $200K as an individual or $250K as a family.
  • A tax on indoor tanning salons in lieu of a tax on plastic surgeons. I wonder if Beverly Hills has its own lobbyist.

All in all, I think this bill is necessary and it would be a disaster if it didn't pass in some form or another. Sadly, I think the forest is being lost for the trees - in my mind we have to pass health care reform to get three achieve three big outputs. 1) Cover as many people as possible. 2) Don't allow Insurance Companies to "cherry pick" customers. 3) Keep costs low by increasing competition and rewarding efficiency.

Wednesday, December 9, 2009

Health Insurers Caught Paying Facebook Gamers Virtual Currency To Oppose Reform Bill

This is unbelievable. Thanks to Jeff for bringing it to my attention.

Health Insurers Caught Paying Facebook Gamers Virtual Currency To Oppose Reform Bill

Am pasting the article below, but credit goes to the authors from the link above:

Health insurance industry trade groups opposed to President Obama's health care reform bill are paying Facebook users fake money -- called "virtual currency" -- to send letters to Congress protesting the bill.

Here's how it's happening:

Facebook users play a social game, like "FarmVille" or "Friends For Sale." They get addicted to it. Eager to accelerate their progress inside the game, the gamers buy "virtual goods" such as a machine gun for "Mafia Wars." But these gamers don't buy these virtual goods with real money. They use virtual currency.

The gamers get virtual currency three ways:

  • Winning it playing the games
  • Paying for it with real money
  • By accepting offers from third-parties -- usually companies like online movie rentals service Netflix -- who agree to give the gamer virtual currency so long as that gamer agrees to try a product or service. This is done through an "offers" provider -- a middleman that brings the companies like Netflix, the Facebook gamemakers, and the Facebook gamemaker's users together.

It's this third method that an anti-reform group called "Get Health Reform Right" is using to pay gamers virtual currency for their support.

Instead of asking the gamers to try a product the way Netflix would, "Get Health Reform Right" requires gamers to take a survey, which, upon completion, automatically sends the following email to their Congressional Rep:

"I am concerned a new government plan could cause me to lose the employer coverage I have today. More government bureaucracy will only create more problems, not solve the ones we have."

OMGPOP CEO Dan Porter spotted the survey and took a screenshot for us. (Click on the image at the right to expand it.)

What is this practice called?

Paying people to act like political supporters is called "astroturfing," because its fake grass-roots campaigning. So maybe this should be called Virtual astroturfing. Virtual-turfing? Astroturfing 2.0?

Who are the people behind this?

Get Health Reform Right describes itself as a "project of organizations whose shared mission is to ensure consumers continue to have access to employer-sponsored healthcare plans."

We are concerned about federal legislation that would create new government bureaucracies that would unravel the workplace healthcare system where more than 160 million people get their coverage.

Under the "Who We Are" tab on GetHealthReformRight.org, the following organizations are listed:

Who are the gamers filling out the survey and sending emails to Congress?

Facebook gamers tend to fall into two groups: women in their 30s and 40s and teenagers of both sexes.

Is this legal?

Astroturfing, which involves real money, is not illegal, We can't imagine virtual curreny astroturfing would be illegal either. Whether or not it's ethical is a different question.

Who is profiting from this?

According to OMGPOP CEO Dan Porter, the middleman facilitating this transaction in multiple Facebook games is called Gambit. Up until a few weeks ago, these games included big hits like Zynga's Mafia Wars and FarmVille. Zynga has since removed all offers from its games. On its Web site, Gambit says its clients include:

  • #1 MySpace Developer
  • 20%+ of top 10 Facebook applications
  • SmallWorlds.com
  • School Vandals
  • Foopets.com
  • 2 Top 100 websites
  • ...and over 150+ more

One important thing to remember:

Gambit is just the platform here, bringing three parties together: gamers seeking currency, game-makers seeking monetization, and companies (and, apparently lobbying groups) looking for customers.

OMGPOP CEO Dan Porter tells us it's most likely the case that Get Health Care Reform agreed to pay an ad agency for every letter-writer it recruited. Dan supposes it was this third-party that bundled the above survey with several others and submitted it into Gambit's offer network.

Update: We reached out to Gambit CEO Noah Kagan for clarification. He told us:

"It's not that Dan is wrong. But we don't run hot political issues. You don't have any evidence that this is from Gambit. We don't condone this in our system. Sometimes stuff does happen, but we've been very proactive in making sure that there's not negative offers in our system."

To this, Dan replied:

"My point all along had little to do with the Gambit platform. We are testing it in house and will deploy it and it has controls for how conservative a partner wants to be. I wouldn't use them if I didn't think it would provide value for our users in a safe way. Gambit and every other offers company simply bundle in offers from outside vendors. The primary distributers of this fake activism are companies you will never know, like webclients.net doing business under eltpath.com. [They] distribute this stuff to sources all over the web from from freecomputer4u to sweepstakes promotions to offer providers."

The response from Get Health Care Reform:

We've also contacted Get Health Care Reform using an email address listed on their Web site. We received the following message back:

Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 553 553 sorry, that domain isn't in my list of allowed rcpthosts (#5.7.1) (state 14).

How the Senate bill would contain the cost of health care : The New Yorker

Gawande has a new article out on the health care bill

How the Senate bill would contain the cost of health care : The New Yorker

Dr. Gawande writes:

Turn to Page 621 of the Senate version, the section entitled “Transforming the Health Care Delivery System,” and start reading. Does the bill end medicine’s destructive piecemeal payment system? Does it replace paying for quantity with paying for quality? Does it institute nationwide structural changes that curb costs and raise quality? It does not. Instead, what it offers is … pilot programs. … Where we crave sweeping transformation, all the current bill offers is those pilot programs, a battery of small-scale experiments. The strategy seems hopelessly inadequate to solve a problem of this magnitude. And yet—here’s the interesting thing—history suggests otherwise.

Gawande draws parallels to the history of American agriculture when the country slowly updated farming practices through a series of government-guided pilot programs. He argues that the health care bill will achieve the same end result, even though there is no one big hammer to control costs, just a lot of little ones.

Pick up the Senate health-care bill — yes, all 2,074 pages — and leaf through it. Almost half of it is devoted to programs that would test various ways to curb costs and increase quality. The bill is a hodgepodge. And it should be.

There is a danger in drawing parallels to other industries - I know that as a consultant - it is one of our downfalls when we try to draw a line with only one data point - but seems like an interesting parallel. Agriculture was their health care - a major source of the economy that needed a major overhaul to keep America competitive.

Regardless, I'm continually impressed by Gawande's thinking and prose.

Friday, December 4, 2009

Getting the Facts Straight on Health Care Reform

Wow, just read an awesome article by an MIT economist Jonathan Gruber in the NEJM. Finally someone has provided a cogent, well researched, and passionate rebuttal to all of the scurrilous talk that's been flying around in Congress. I was feeling a little down about health care reform watching the news, but reading this article has made me believe again! We absolutely must pass something substantial this year, and Gruber has basically bashed every possible argument against reform.

Wednesday, December 2, 2009

Slightly random

This is not health care related. I saw this small article buried in the nytimes -

Darpa Puts On Contest to Find 10 Red Balloons Across U.S. - NYTimes.com

It reminded me of the Xprize that Kedar had posted a few months back about developing a health care system. DARPA - the military research unit - is putting up a $40k to see which group can identify the location of ten balloons on one day located throughout the country.

I don't get it. They say it's to learn about behavior of creative groups in collaborative situations. I think it takes its cue from the Netflix $1 million prize which was for a group that could improve the netflix movie suggestions software. When I read between the lines, however, it feels like you could replace the word "balloon" with "terrorist" and you get a sense of what the agency is trying to learn. But haven't we for ages posted reward signs for wanted criminals and relied on the public citizenry to assist the police and military in finding "red balloons" ? I don't get. What are they trying to get out of this experiment?

Sorry for the random non-health care post. Was just really curious to me.

Monday, November 23, 2009

Pricing in health care

this is a bit of a stream of consciousness post - so apologies in advance -

I came across this article on GE's change in their health care plan:

Health Care: GE Gets Radical - BusinessWeek

They are essentially changing from a traditional high up front premium, predictable co-pay model to one where there is greater price transparency given that there is a higher deductible, lower premium.

Interestingly, my own employer recently changed health benefits from what was a "cadillac" plan (insurance plans that shield consumers from the true price of health care - the types of plans that are given to high priced executives or union employees) to something more reasonable, with slightly more price transparency - tiered co-pays that gives the consumer at least a modicum of insight that some drugs and services are more expensive than others.

As pricing becomes more transparent in health care (btw we've been talking about price for years now - health savings accounts were supposed to transform health care as we all became more price sensitive - but instead most of us use it to buy eyeglasses and get dental work) it's important to understand how pricing works in health care.

A bit more on pricing:

As you prob know from an earlier post, I'm a big fan of the baseline scenario blog - an extremely well written blog about finance. The folks at the baseline scenario also produce the Planet Money podcast for NPR.

They have recently been looking into pricing in the US health system. they had two very well produced segments on pricing for MRIs.
The first is at this link - and worth a listen - gives a fantastic historic overview of how we developed a fee-for-service system in health care, and how price has become so perverse in health care. Jeff and I had an argument about why partners health care takes such big price hikes in boston - and this podcast explains a bit why institutions like partners can justify taking those price hikes in services.

Then there's a follow up on pricing for MRIs in other countries - the podcast is at this link . what they find is that pricing for MRIs in japan are substantially lower. However, what's fascinating about the japanese health care system is that their approach to controlling health care costs is to reduce price. Since 1990, the government has implemented a strict policy that has capped increases in both medical - treatment fees and the price of drugs to around 2 percent annually since 1995 (muc lower than any other OECD country). Theoretically this makes sense, if you pay less then health care costs should go down. Right? Wrong. What happened in japan is there has been an expansion of health care providers - supply has gone up, japan's population is ageing very fast, technology is growing faster than price decreases, japan's wealth has triggered more visits to the doctor, - and physicians, the finely tuned economic beings that they are, have compensated with declining price with increasing volume. Remember basic microeconomics? Price times quantity equals revenue. If price goes down, a rational economic being increases quantity. Therefore, japan is the most medicalized society in the world - On average, the Japanese see physicians almost 14 times a year, three times the number of visits in other developed countries!

Alright - I'll stop here - take a listen to the podcasts, and I'll try to write more about consumer directed health plans in my next post.

Friday, November 20, 2009

When Less Isn't More

The United States Preventative Services Task Force just recently changed the recommendations for breast and cervical cancer screening prompting an outcry from rationing sensationalists that government is again trying to kill its citizens. In summary, they basically said that for average risk women, you don't have to do mammograms until age 50, and even then, only every two years. They've also said to do away with self breast exams, which have been proven to not reduce mortality since the huge trial that came out of China in 2004. The same is likely to come out for cervical screening - biennial screening starting at 21. These recommendations are made by very smart people who have looked at the data and found that the previous screening remmendations were not only overkill, they were probably causing more harm than good. Yes, a rare occurence when evidence appears to outweigh emotion. Yet the crazies are still going to get upset that this is really a way to reduce costs - some have even called this a subversive attempt at "female population control."
I, for one, applaud the USPSTF's courage in trying to shift the way American's consume healthcare. Part of the reason why costs in this country countinue to skyrocket is our complete addiction and over consumption of medications, imaging, and procedures. The funny thing is, I think our national anxiety level is such that people don't think it's a relief to hear it's OK to test less. Let's say, for example you ask 100 women: would you rather be told you have a suspicious lesion and find out it's benign or not be told at all? I bet 75% would prefer to go through the testing, the trauma, and the worry even though in the end, the outcome is the same, and all you did was waste time, money, and peace of mind. It's the fear of the very rare occurrence and the media frenzy that surrounds the missed diagnosis of breast cancer in a 38 year old that breeds this level of anxiety - no one ever hears about the woman who gets staph mastitis from the unnecessary biopsy...

Wednesday, November 18, 2009

Monday, November 9, 2009

Is Brent James the savior of American health care?

If you read this week's Sunday New York Times Magazine, you saw this article about Brent James, the chief quality officer at Intermountain Health in Utah. The premise of the article, and Dr. James' philosophy is that data, systems thinking, and process improvement are the absolute best ways to improve patient outcomes.

For a while now, I've rejected the prevailing wisdom that individualized patient care is the best care. The US prides itself on the doctor's ability to decide what the right treatment is for any given condition, allowing him/her to tailor the panoply of available therapeutic options to make it just right for the patient. Of course, these choices are influenced by reimbursements, what's easiest for the doctor, and what restaurant the pharmaceutical rep lured you to last week. Naturally, if you ask doctors why they do what they do, they claim their actions are evidenced-based, yet the data overwhelmingly suggests enormous variation in physician practice.

In contrast, Intermountain has developed hundreds of protocols for routine care, which essentially automate decision making down to the level of what dose of beta blocker to prescribe for heart failure. The outcomes under this system beat the rest of the nation, and interestingly, doctors are not upset about the computerization of medicine. In fact, many docs feel that these protocols help them a) understand the evidence base, and b) relieve them of the myriad complex decisions that have to be made for every patient and are often overlooked during the course of a busy day.

While I think that the "Intermountain Way" isn't perfect, I think it's a great example of an organization who is really thinking about how to streamline and "hardwire" best practice into usual clinical routines. Add in Geisinger, Mayo, Kaiser Permanente, and the Cleveland Clinic, and you have the avant-garde of health systems thinking in America.

Monday, October 26, 2009

Rudolf Virchow and social medicine

Some random history for today:

I always thought Rudolf Virchow was an interesting physician. Granted he didn't believe in Darwinism or antisceptics, but he did have a great faith in medicine as a tool to lift the condition of communities. Virchow is credited with the founding of "social medicine" positing that disease is never purely biological, but often, socially derived.

I came across this page of his quotes and especially liked this one:

"Medicine is a social science, and politics is nothing else but medicine on a large scale. Medicine, as a social science, as the science of human beings, has the obligation to point out problems and to attempt their theoretical solution: the politician, the practical anthropologist, must find the means for their actual solution."

I leave it to you to determine this quote's modern day significance.

Thursday, October 22, 2009

U.S. Health Care Reform Interactive Timeline

Noticed this on NEJM today - neat little interactive graphic on the history of health care reform with links to the relevant NEJM articles from that time.

Health Care Reform 2009 | U.S. Health Care Reform Interactive Timeline

of note, there is an interesting cadence to these efforts - a push for reform, followed by years of stability / status quo - granted you don't want to reform constantly, or too disruptive to system. But regardless, pretty much every other year for the last 50 years a health care bill has been passed.

Tuesday, October 20, 2009

This American Life series on health care

If you haven't listened to it already - This American Life has a two part series on health care in the US. Co-produced with NPR/Planet Money group (involved w/ the Baseline Scenario bloggers that I quoted the other day)

This American Life - part one
This American Life - part two

Sunday, October 18, 2009

Calvin Trillin’s Theory, the financial crisis and health care mamangement

Calvin Trillin’s Theory at The Baseline Scenario:

Not directly health care related, but the chart when you follow this link is fantastic. Follow through with me on this and you'll see where I'm going (health care, like finance, has become too complicated for the old guard).

Recent Trillin op-ed recounted a fictional encounter where the interrogator asks what happened on wall st and the interviewee states smart people took over wall street.

"Then, however, as college debts and Wall Street pay grew in tandem, the smart kids started going to Wall Street to make the money, leading to derivatives and securitization, until finally: “When the smart guys started this business of securitizing things that didn’t even exist in the first place, who was running the firms they worked for? Our guys! The lower third of the class! Guys who didn’t have the foggiest notion of what a credit default swap was.”

In the blog link, there's an interesting point about how what's valued in CEO succession, doesn't necessarily lead to a good CEO. "Even when you don’t have the generational issue that Trillin talks about, the problem is that the sociology of corporations leads to a certain kind of CEO, and as corporations become increasingly dependent on complex technology or complex business processes (for example, the kind of data-driven marketing that consumer packaged companies do), you end up with CEOs who don’t understand the key aspects of the companies they are managing."

I wonder if this is an issue in health care. Has health care delivery become so complex, doctors are so disengaged from the process of health care management and reform, that we've slowly gotten ourselves into the current mess that we are in?

I'm really stretching the parallelism here, but I wonder if there is something to it. That's why I guess I'm such a big fan of giving more power to MedPAC - a technocratic body that is independent from politics, and infused with seemingly intelligent and capable health care reform thinkers.

Friday, October 16, 2009

High-Deductible Health Plans

An article in yesterday’s New York Times discusses the composition and relative merits of high-deductible health plans, which are most often paired with George Bush's favorite cost-containment vehicle, the Health Savings Account. Despite the bitter taste in my mouth when I think about our former president (blech!), I think that high-deductible health insurance plans do have some merit.

First, let's ask ourselves what the point of insurance is. Sounds obvious, but health insurance has metamorphosed into a creature nothing like life insurance or car insurance. In the latter, you pay a premium and if something happens, you first pay a deductible and then, for catastrophic accidents, you get full coverage. Interestingly, having this deductible actually promotes health, sorry car, maintenance activities. After all, you'd rather shell out 20 bucks for an oil change than the 500 dollars for a new transmission down the road - not to mention your car runs smoother in the meantime. Health insurance should really function the same way: you pay premiums and if something really horrible happens, you get totally covered after you surpass the deductible. The way most traditional plans work now, you continue to pay a percentage of costs when your bone marrow transplant costs $1 million, which is why healthcare debt is the leading cause of bankruptcy in the country. Because they cover such unlikely events, high-deductible plans can afford to have cheaper premiums since they make more money on the front end than they lose on the back end.

High deductible plans are meant to reduce the effects of “moral hazard,” which is the notion that people will use more of a good if they are shielded from the costs of consumption. As has been described on these pages, Americans are voracious consumers of healthcare, so perhaps exposing consumers to some of the costs, while not thoroughly penalizing them if something untoward happens, might reduce spending. Alas, health is not like car maintenance, and people have little insight into how health promoting activities may lead to lower financial (not to mention emotional and physical) costs down the road. Because health is so opaque for consumers, they might be willing to defer that colonoscopy if it means they have to shell out $1000 dollars. Furthermore, many of the benefits of health promoting activities wouldn’t accrue to the health plans, but probably to Medicare. Insurance companies, therefore, have no incentive to subsidize “good” behavior now if the beneficiary is the government 20 years from now.

So, this is where the Health Savings account fits in. High-deductible plans paired with HSA's benefit consumers because a) it's a pre-tax contribution and b) employers will often chip in the first $500 to $1000 dollars, and c) HSAs are portable and you never lose what you put in. The HSA is intended to offset the moral hazard problem with high-deductible plans - again, that irrational consumers will avoid costly health promoting activities like skin checks if they have to pay any proportion of that out-of-pocket. Contributing to the HSA is purely voluntary, though, and I suspect those who are trying to save money aren't likely to build a battle-chest of money in case they get sick.

From a pure economics standpoint, these plans make sense. For them to work for everyone, though, I think policy makers have to force insurers to provide basic stuff like checkups, Pap smears, mammograms, etc. for very low or even free prices.

Wednesday, October 14, 2009

Challenging the Assumption that Costs Always Rise

In this week's New England Journal, David Cutler, an economist and adviser to the White House, lays out a pretty solid argument for why costs might not rise in the future, even without health payment reform. Our prevailing assumption has been that health care costs will continue to rise, at a pace faster than GDP, until health care bankrupts the nation.

Cutler contends this might not be true based on three core ideas:
1) Technology: the rapid rise in health care costs over the past 10 years has been largely fueled by innovations in pharmaceuticals and medical devices. Cutler points out that the pipeline for new technologies is starting to dry up, and increasing imaging costs might be mitigated by imaging benefit managers akin to pharmacy benefit managers. A formulary for how to diagnose knee pain might not be far off. Further, he notes, profitable new technologies tend to draw lots of competitors, so cost growth is likely to be offset by increased substitution effects.
2) Health IT: Obama's plan to increase spending on EMR's and decision support may cut out huge amounts of wasted time in paperwork and administration, not to mention cut costs from duplicated diagnostic testing.
3) Chronic Disease Management: this one's a little trickier for me (see Sree's last post), but Cutler suggests that by improving disease management, we prevent readmissions and therefore reduce acute care costs. Whether these savings are offset by increased life expectancy is yet to be determined.

Overall, I found this article pretty well researched and thought out and I'm reassured that our Doomsday scenarios might not come to pass. That said, I'm kind of glad it looks like health care spend is on the uptick, because it means policymakers are more likely to pass substantial health care reform in the near term.

Tuesday, October 13, 2009

Primary care and the health care cost curve

Guys, I need to submit a blog post to policy2.org to kick start a conversation amongst policy makers and academics on the role of primary care in health reform. Specific question I was asked to answer was "how does primary care bend the cost curve". This is my response - can you give me some feedback in the next 18hrs? Argument flow is weak at points. Doesn't need to win any awards - just start conversation. Need to submit by end of work day tomorrow:

------

Expanding primary care will not bend the cost curve.

All primary care doctors do is postpone the time of eventual death. The patient lives longer and ultimately develops new and more costly diseases that are the consequences of aging.

Ever heard these arguments? I have and it’s fascinating. Intuitively, this makes sense to me. In the cold calculus of economics, good primary care will prevent disease and extend life. As they say, taxes and death are both inevitable. And death costs money, and I have to believe death when you are older is more costly than death when you are slightly younger.

I’m making two huge sweeping assumptions here. First - Primary care saves lives. Second – Death when you are older costs more money to the system. I did a quick literature search to challenge these assumptions.

So let’s question the first assumption – does primary care save lives?

Mackinko et al.did an interesting little interesting literature review in the International Journal of Health Services in 2007. They pooled together a series of studies, re-cut the data in order to assess primary care effect size and the predicted effect on health outcomes of a one-unit increase in primary care physicians per 10,000 population. What they found was interesting - Primary care physician supply was associated with improved health outcomes, including all-cause, cancer, heart disease, stroke, and infant mortality; low birth weight; life expectancy; and self-rated health. Pooled results for all-cause mortality suggested that an increase of one primary care physician per 10,000 population was associated with an average mortality reduction of 5.3 percent, or 49 per 100,000 per year. Not bad.

I am assuming this is not surprising. Primary care physicians include family medicine doctors, internists, pediatricians, and in some instances, obstetrician–gynecologists. Currently, primary care accounts for about one third of the physician workforce in America. For many, primary care physicians are the first contact for a person with an undiagnosed health concern, they provide patients with the opportunities to prevent disease and they offer continuity and coordination of care for many complex conditions. Given their pivotal role in delivering care, it follows reasonably that they will save lives.

Now the second question – does primary care save money?

This is the tricky one. But one of my favorite studies on this question is from Lubitz et al. from his New England Journal article entitled “Health, Life Expectancy, and Health Care Spending among the Elderly” in 2003. They found that elderly persons in better health had a longer life expectancy than those in poorer health but had similar cumulative health care expenditures until death. A person with no functional limitation at 70 years of age had a life expectancy of 14.3 years and expected cumulative health care expenditures of about $136,000 (in 1998 dollars); a person with a limitation in at least one activity of daily living had a life expectancy of 11.6 years and expected cumulative expenditures of about $145,000.

Goetzel had an interesting framing of this question in his 2009 Health Affairs article: “Providing certain preventive services, mostly in clinical settings, does not save money. But, then again, neither do most medical treatments. The issue relevant to this debate is how much value is achieved for any given preventive or treatment service. Instead of debating whether prevention or treatment saves money, we should determine the most cost-effective ways to achieve improved population health, and where to focus scarce resources to get the "biggest bang for the buck."

Note that I did not ask “does prevention save money?” If asked, I’m not sure I could defend the assertion that “prevention saves money.” For example, screening costs can exceed the cost of treatment if only a small portion of a population would get sick without any preventative services. As a society, it might be cheaper to simply treat, and not always prevent.

The question I asked, however, was “does primary care save money?” The role of the primary care physician is not just prevention. Not to be heavy-handed, but I do believe they are the guardians of health – they help the patient navigate the complex decisions of life and health – of prevention and treatment. I believe this is how the primary care physician helps control costs – by helping patients make rational decisions about their care, and providing the longest and healthiest life as possible.

These are just some quick thought starters. I now hand the conversation over to you. I encourage you to use Policy2.org to more fully engage each other, challenge and explore the data, and construct the story that helps us tell the American people that primary care physicians play a vital role in creating a healthier country with greater economic opportunity for all.

Sunday, October 11, 2009

Lobbyists Pull the Teeth out of Health Care Reform

An article in today's New York Times describes the frantic efforts of lobbyists to limit payment reform and hinder policymakers efforts to curb the spiraling cost of health care.

One of the most obvious reforms that's been proposed would be to tax high cost health plans which fuel rising costs because employers are more willing to accept higher premiums when they're tax free. Employees, generally unaware of the cost of health insurance, remain in the dark about what their employers are paying and therefore have no incentive to limit costs themselves. Congress has appropriately considered taxing so-called "Cadillac" plans in an effort to direct employers to purchase less costly health insurance plans and expose consumers to more of the costs. Naturally this check on rising costs is being challenged by the interests that have the most to lose - hospitals, doctors, and insurance companies. Ironically, big-labor has also opposed the reforms even though it would mean employers may pass on the savings in the form of increased wages. The CBO has given this initiative high marks in terms of cost-saving, yet lobbying efforts threaten to kill this part of the bill in committee.

The second major reform is to set up a non-partisan independent Medicare Commission, which seems a lot like the NICE in the UK. The commission would finally leverage Medicare's significant purchasing power to negotiate prices for drugs and negotiate lower costs with hospitals. Drug companies have negotiated only $80 billion in cost reductions over 10 years, which not only represents a drop in the bucket in terms of overall profits, but actually protects them in the long run. By agreeing to small losses, they would actually be protected from further cuts by the Medicare Commission even if five years from now there are major benefits to be extracted. Likewise, hospitals and the AMA are vigorously opposing the $155 billion in reductions to hospital and physician payments even though bloated, inefficient, and often profitable groups working essentially in a cost-plus environment currently have no incentive to limit their costs. What's left? Pilot programs in coordinated care, health IT, and comparative effectiveness (which get seriously dinged by the CBO).

This is just sad, and it's not just Republicans - Democrats in the House are being maneuvered, too. The Baucus bill that represents the only real change in the status quo is being so ticky-tacked that it's going to come out totally ineffective. I understand the need to pass something with some sort of bipartisan appeal, but what's the point if it can't effect any real change? The fact that our political process can't put together something that benefits citizens instead of the influential people that fund campaigns is absolutely pathetic.

Friday, October 9, 2009

Death of Wyden-Bennett

Jeff Greenberg first turned my attention to the Wyden-Bennett bill - and after reading it, I always thought it was a very good proposal for health care reform. David Brooks actually has a v. good op-ed piece today on the Baucus bill and Wyden/Bennett

Op-Ed Columnist - The Baucus Conundrum - NYTimes.com

More of a description on W/B is in the link from Brooks. But essentially one of my main concerns with the current insurance market and reasons to support W/B is the following:

1) Insurance in America is tied to employment
2) Most Americans switch jobs every few years (~5-15 jobs lifetime)
3) This in turn means that Americans switch their insurance company every few years (in the past decade I have switched insurance companies three times, average time with an insurance company is ~3-7yrs)
4) Insurance companies have little incentive to try to promote health preventative behaviors since all that benefit would accrue to another insurance company, and ultimately Medicare (where we will all get our insurance from eventually).
5) If you decouple insurance from employment and create an insurance exchange market (key elements of W/B), then insurance companies are more likely to have customers for a longer time, thus create sane products that promote healthy behaviors so they can accrue some of the cost benefit (while improving the lives of their customers)

Unfortunately, it seems the W/B is a no-go. And the question remains - to support Baucus bill or not...

Thursday, October 8, 2009

NEJM -- The Cost of Health Care -- interviews by Atul Gawande

Worth a scan. Gawande interviewing academics on health reform from New England Journal of Medicine this week -

NEJM -- The Cost of Health Care -- Highlights from a Discussion about Economics and Reform

Tuesday, October 6, 2009

Primary care shortage in the setting of expanding access

I was recently asked to comment for the Hope Street Group on what impact primary care would experience from expanding insurance access. There was an NY Times article about the Massachusetts reform effort.

In Massachusetts, Universal Coverage Strains Care - New York Times

Here was the initial outline I jotted:
  • Our nation faces an unprecedented primary care shortage with or without reform
    • Increasing health coverage for the uninsured could rapidly increase the future primary care supply gap from ~12k PCP-equivalent FTEs to ~29-68k PCP-equivalent FTEs by 2015 (equivalent to a 10-25% increase in today’s supply), and will add particular strains to the primary care system
    • Even in the absence of reform, a shortage of ~12k FTEs (equivalent to a 5% increase in current supply) is projected by 2015
    • To serve the 56 M projected uninsured in 2015, 17-56k additional FTEs would be needed, with additional strains on the system due to the unique demands of the uninsured
  • Primary care shortages are driven by mismatches in supply and demand that are not immediately addressable through market forces
    • Demand drivers include
      • Total population growth
      • Aging population
      • Growing prevalence of chronic conditions
    • Supply decreasing due to
      • Difficult to ramp up supply: Requires 7 yrs of postgrad training before entering health system
      • Compensation gap: Specialists paid 2-3 times more than PCPs
      • Difficult to control lifestyle: desire for more “controllable lifestyle” with -2% YoY decline in family medicine residency entrants
  • The case study of Massachusetts health reform provides key lessons to keep in mind – in particular, the critical need to address the initial demand surge as the newly insured enter the system, the risk of a “downward spiral” as PCPs become overstretched, and the need for transitional assistance to underserved areas
  • The uninsured demand on primary care has specific implications – it will exacerbate the issue of underserved areas, and it will require a geographic redistribution of resources and an immediate surge in PC supply as the newly insured enter the system

Monday, October 5, 2009

Cost Savings at the End of Life - can primary care make a difference?

I was recently asked to comment on what effect does "end of life" care have on the rise of health care costs in the US. probably the most relevant article that E. Emanuel (in White House currently) wrote a decade ago.

JAMA -- Abstract: Cost Savings at the End of Life: What Do the Data Show?, June 26, 1996, Emanuel 275 (24): 1907

My thoughts are below:

1) There is nothing inherently wrong with spending a majority of your money for inpatient care in the last years of life. The more appropriate questions are 1) is the percentage of money spent the right percentage of money overall spent and 2) is the rate of inflation for end of life costs in line or out of line with other expenditures.

When you look at the work that the McKinsey Global Institute did, we found that the major driver of health care cost inflation was outpatient delivery of care - not inpatient care.

2) Outpatient medicine accounts for more than 40 percent of overall health care spending and 68 percent of spending above expected compared to other OECD countries. This category expanded at 7.5 percent per annum from 2003 to 2006—a faster pace of growth than observed in any other cost category—to add more than $166 billion in costs during this period.

3) Inpatient care costs account for 25 percent of overall health care spending but only 6 percent of total spending above expected ($40 billion). This category grew by 6.0 percent annually (trailing GDP growth), or $73 billion, from 2003 to 2006.


End of life issues are tricky - they raise a lot of emotions. But if we look at this purely from a data perspective, the heart of the cost problem is in outpatient care. So yes, you could argue that there is an imperative to reform end of life care since they consume a majority of costs on the inpatient side. But the elderly (=Medicare) spend a large portion of their medical lives admitted in the hospital. And that's okay, in my opinion. If our goal is to bend the cost curve, we should focus on outpatient, not inpatient, care.

Can primary care help reduce the inpatient end of life care costs? I think so - I don't know the data as well. But my hypothesis would be that 1) people at end of life do not make rational informed choices about the care they wish to receive (living wills, care directives, durable power of attorney) and thus 2) they receive more care than they would have wished, but they are too sick to express their views (e.g. stroke patient on life support who would not have wanted to have been on life support). If primary care could provide greater information about what options are available at end of life, people could make more informed decisions. This is what the whole "death panel" issue was about. If these policies could be promoted in a way that ensures a means for patients to exercise their autonomy on end of life issues and are not coerced, then to me this obviously makes sense.

Friday, October 2, 2009

Smooth and Predictable Aid for Health

I just read this fairly interesting article on global health financing.

Smooth and Predictable Aid for Health: A Role for Innovative Financing? - Brookings Institution

The paper's thesis is that financial aid flow to developing world health sectors are volatile - the terms of making and delivering future commitments of financial aid from donors to donor recipient is uncertain, and therefore makes it poorly suited to fund recurrent health care costs. In english - Cameroon might get $120M one year in aid and $20M in aid the next year, making it hard to know when to buy vaccines, when to invest in human capital, etc - without a predictable flow, health ministers have a hard time allocating funds to projects to ensure they are sustainable.

Another interesting observation in the paper is that when external aid falls in a country, internal expenditures in health fall to an even greater extent. For example - if external aid falls 10%, the country's government will spend 15% less of its own budget on health than the previous year.

The paper argues that there are opportunities to use interesting financial vehicles to smotth out aid flos to make them more predictable. The author suggests that the potential (1) smoothing of irregular aid commitments through securitization of aid receivables; (2) health endowment funds; (3) a swing donor facility; and (4) a “health debit card” for financing shortfalls.

Financial tools have become increasingly sophisticated, and I like the idea of securitizing and creating financial cushions that can help smooth aid flows for countries that have reliable financial and health track records. This is happening already, but I have to imagine not as much as could happen to prevent these unfortunate consequences.

Thursday, October 1, 2009

Thai HIV Vaccine Trial Results are Mixed at Best

The huge NIH/Army HIV vaccine trial using the combination of two previously failed vaccines reported its results last week. The findings were in some ways very encouraging - there was a 1/3 reduction in new HIV cases in the group that received the vaccine when compared to the group that didn't. That said, the numbers were very very small with a three year incidence of 0.925% in the control group versus 0.6375% in the group that received the vaccine. With such small numbers, as some critics have pointed out, a tiny amount of statistical fling could have easily made this trial a total waste of $105 million of US taxpayers money. Not to mention, in terms of biology, there was no difference in terms of viral load in the two groups (suggesting that the vaccine didn't really boost immunity in any significant way). Finally, most vaccines result in at least an 80% reduction in incidence before people will spread them widely.

I wonder why they would have even done this trial in the first place. That is, who would have even thought this could have worked? Granted, the two vaccines were working in different ways, but to invest such huge sums of money when there was little likelihood of a real impact seems very short sighted. I suppose the international community so hungry for a breakthrough therapy for HIV, they'll pretty much fund anything...

Swiss Model for Health Care Is Gaining Admirers - NYTimes.com

I always find these comparisons misinformed. How can you compare a small country w/ a relatively homogenous population (ethnically and by gini coefficient of income distribution) with a country as diverse as the US?

Swiss Model for Health Care Is Gaining Admirers - NYTimes.com

In my opinion, the right comparisons are the NHS, France, Germany.

Wednesday, September 23, 2009

Walgreen to the Tamiflu Rescue

I thought this was an interesting piece on pvt sector intervention for a public health issue. Profit motive for sure, but seems like everyone wins in this. Would love to see the assumptions in the business plan for this piece:

Walgreen to the Tamiflu Rescue | The Market Update | Financial Articles & Investing News | TheStreet.com

The drugstore said it is prepared to compound Tamiflu capsules into the liquid form to produce its Oral Suspension prescription, usually given to children.

Roche, maker of Tamiflu, which is used to fight the flu, said that while the Oral Suspension is in short supply, there exists a stable stock of capsules.

The news fits well within the recent trend for drugstrores, namely that Walgreen, along with other drugstores, such as Rite Aid and CVS Caremark , has been taking advantage of flu season. The three chains are offering seasonal flu shots earlier than in years past, to meet heightened demand.

Thursday, September 10, 2009

Digital Health Records: The Hard Road Ahead

Steve Lohr's writing on EMRs for the NY Times is getting better.

He's the first lay press writer I've seen who actually segments the market. He understands that the drivers for EMR adoption are different for small vs. large offices.

Digital Health Records: The Hard Road Ahead - Bits Blog - NYTimes.com

As I've said before, free is not cheap enough for EMR adoption, especially in small physician offices. PMS (practice management software) reduces your working capital needs, but EMRs are just a huge fixed cost plus large yearly variable costs on maintenance / upgrades.

Wednesday, September 9, 2009

What's in the senate finance bill?

Tonight's Obama's big night for health care:

News Analysis - Despite Fears, Health Care Overhaul Is Moving Ahead - NYTimes.com

The senate finance committee is pushing forward with their bill. Below is a detailed summary of key policies in it. I will comment on the policies over the course of the upcoming weeks.

1. Insurance market reforms (beginning Jan 1, 2013)
- Guaranteed issue in individual and small group markets; no pre-existing condition exclusions or rescissions.
- Premiums in individual and small group markets can vary by up to 7.5:1, depending only on age, tobacco use and family composition.
- Individuals with current non-group coverage can 'grandfather' such coverage and avoid new mandates
- Mechanisms for risk adjustment, reinsurance and risk corridors will be included
- Interstate sale of insurance (starting 2015) through creation of "health care choice compacts" in non-group market
- State health insurance exchanges, to which individuals, micro and small group will have access
- 4 actuarial benefit categories (Bronze = 65%; Silver = 73%, Gold = 81% and Platinum = 90%) with a separate "young invincibles" policy for young adults who desire less expensive catastrophic coverage
- Benefit minimums: preventive and primary care, physician services, outpatient, ER, hospitalization, diagnostic imaging/screenings, maternity and newborn, pediatric services (incl. dental/vision), medical/surgical care, Rx drugs, radiation, chemotherapy, mental health and substance abuse services
- No annual or lifetime caps on benefits

2. Ensuring affordable coverage (subsidies)
- Sliding scale tax credits (subsidies) to families between 100-300% FPL. Max premium out-of-pocket for FPL<100 is 3% and for FPL<300% is 13%. Tax credits are tied to silver plan.
- Cost-sharing assistance available to those between 100-300%

3. Shared responsibility (mandates)
- Beginning in 2013, all US citizens and legal residents required to have health insurance or pay penalty (max family penalty is $1500 for FPL 100-300% and $3800 for FPL>$3800) (exemptions for those in which lowest cost premiums exceed 10% of person's income)
- Employers with FTE >50 must either offer insurance or pay a free rider penalty set equal to the value of the tax credit for each employee taking up insurance on the exchange

4. Health care cooperatives
- Federal loans to assist in start-up costs for nonprofit, member-run health insurance companies to ensure at least one co-op in every state

5. Medicaid expansion and CHIP reform
- Starting Jan 1, 2014, Medicaid must cover everyone, including childless adults, up to 133% FPL
- States must maintain existing income eligibility levels for all populations until state-based exchanges become operational
- Additional federal assistance to help cover costs of new Medicaid eligibles
- CHIP beneficiaries moved into exchange in 2013 and states provide a "CHIP-wrap" to provide supplementary benefits required under CHIP
- Federal floor for CHIP eligibility is FPL 250%
- Rx drug becomes mandatory Medicaid benefit
- Medicaid Rx drug rebates would apply to Medicaid managed care orgs and increase from 15.1% to 23.1%
- DSH payments reduced 50% once uninsured population in a state is reduced by 50%. Further reductions correspond with decrease in rate of uninsured. to a max reduction of 65% relative to 2012 allotment

6. Improving quality and efficiency
- Value-based purchasing in Medicare starting 2011 for:
- hospitals which ties percentage of hospital payment to performance on key quality measures
- Physicians, especially with respect to high-cost imaging services
- Medicare home health agency and skilled nursing facilities
- New patient care models
- Accountable care organizations in which provider groups can keep half of savings they achieve for Medicare program over 3-yr period
- Voluntary pilot program on payment bundling
- Hospital payment penalties for hospitals with top 25% of high-cost commonly acquired hospital infections
- Payment reductions for hospital readmissions in excess of certain benchmark
- Strengthening primary care through extra incentives/payments in shortage areas and increasing residency slots in primary care
- Scheduled 21% reduction in Medicare physician payment rates in 2010 would be replaced with 0.5% increase
- Reimbursement adjustments to Medicare physician fee schedule

7. Medicare Advantage (MA)
- Re-set of MA benchmarks based on weighted average of plan bids beginning in 2014. Plans keep 100% of difference between bid and new benchmark

8. Independent Medicare commissions
- Congress would have to pass an alternative proposal that yielded equivalent budget savings or commission payment recommendations would go into effect

9. Revenue provisions
- High cost insurance excise tax of 35% levied on insurance companies and insurance administrators of any plan that is above $8000 for singles and $21,000 for families. The tax would apply to self-insured plans and plans sold in group market, but not to individual plans. Tax would apply to the amount of premium in excess of threshold, which would be indexed for inflation, and could be increased for high-cost states
- New nonprofit hospital requirements that would include a periodic community needs assessment
- Pharmaceutical manufacturing companies fee of $2.3 billion per year, starting 2010, allocated by market share
- Med Device manufacturers fee of $4 billion per year, starting 2010, allocated by market share
- Health insurance provider fee of $6 billion per year, starting 2010, allocated by market share
- Clinical laboratories fees of $750 million per year, starting 2010, allocated by market share, except for small businesses

Friday, September 4, 2009

Helene Gayle to advise Obama on AIDS | Reuters

I don't think this is the same position that Paul Farmer was up for - I think he was under consideration for USAID - and I heard a lot of his writing was of concern with the Senate.

Anyways, Celine I know you are in touch w/ Helene. It is advisory, so I'm not sure how much sway on actual policy the panel will have, but regardless, very exciting.

Helene Gayle to advise Obama on AIDS | Reuters

Tuesday, September 1, 2009

Gang of Six seems to be dying

Montana Senator Max Baucus, the head of the Senate Finance Committee, said on Monday that health-care reform will pass this year, even if Republicans back out of bipartisan negotiations. This matters because Baucus is the head of the so-called Gang of Six—three Democratic and three Republican senators who have been negotiating over the bill.
Until recently, the White House has not remarked on any of the " Gang of Six ", but The White House press secretary Robert Gibbs recently slammed Senator Mike Enzi after he used the GOP’s weekly radio address to attack health care.

Baucus predicts health care overhaul this year

All of this makes it seem like the Dems are going to go this alone - without even their own moderate Dems - which honestly puts the public option back on the table.

Wednesday, August 26, 2009

CIA documents reveal close involvement of physicians in developing torture techniques

I honestly just can not understand what would drive a physician to have absolutely any part in torture. Jeff had blogged about this before, but this article raised the issue again. It is just atrocious.

Article in today's NYT -

Report Shows Tight C.I.A. Control on Interrogations - NYTimes.com:

From the intro:
"A prisoner could be doused with 41-degree water but for only 20 minutes at a stretch.... another detainee repeatedly knocked out with pressure applied to the carotid artery."

"Managers, doctors and lawyers not only set the program’s parameters but dictated every facet of a detainee’s daily routine, monitoring interrogations on an hour-by-hour basis. From their Washington offices, they obsessed over the smallest details: the number of calories a prisoner consumed daily (1,500); the number of hours he could be kept in a box (eight hours for the large box, two hours for the small one); the proper time when his enforced nudity should be ended and his clothes returned."

Later in the article:

"Waterboarding might be an excruciating procedure with deep roots in the history of torture, but for the C.I.A.’s Office of Medical Services, recordkeeping for each session of near-drowning was critical. “In order to best inform future medical judgments and recommendations, it is important that every application of the waterboard be thoroughly documented,” said medical guidelines prepared for the interrogators in December 2004.

The required records, the medical supervisors said, included “how long each application (and the entire procedure) lasted, how much water was used in the process (realizing that much splashes off), how exactly the water was applied, if a seal was achieved, if the naso- or oropharynx was filled, what sort of volume was expelled, how long was the break between applications, and how the subject looked between each treatment.”

When the doctors gauged what a drenching in a cold cell might do to a prisoner, they did their research, consulting a textbook entitled “Wilderness Medicine,” in particular Chapter 6 on “accidental hypothermia,” as well as a Canadian government pamphlet, “Survival in Cold Waters,” according to footnotes.

Monday, August 17, 2009

A Cure for Doctors' Bills

Was reading this article and what struck me is how relevant many parts of the discussion are still today.

A Cure for Doctors' Bills - The Atlantic

This article is from the atlantic from 1930. As a colleague of mine said - no matter what happens over the next few months, there will always be a need for health reform for ages to come.

---

"The high costs of medical care are not only the subject of countless articles in the public prints, but are even being discussed in the inner circles of the profession...

The medical profession itself has now seen the writing on the wall. Something must be done. In Europe the drift is toward state medicine. In this country, too, there is a definite set of opinion in that direction. At the annual meeting of the American Medical Association held in Detroit in June, the retiring president of the association told the house of delegates that socialization of medicine, along lines now suggested in England, was inevitable, unless the American physicians themselves established medical centres to enable the poor and the ‘white-collar classes’ to cope with the mounting cost of living.

‘Medicine,’ he said, ‘is being besieged on every side by forces that are constantly growing stronger and stronger, and unless some defensive effort is made to break the siege, the profession must eventually capitulate, become socialized, and become employees of the State.’

Most American doctors look upon any such solution with dismay. The medical journals are full of protestations against the threatened loss of the doctor’s professional independence. State medicine is their special bĂȘte noire."

Saturday, August 15, 2009

"How American Health Care Killed My Father" in The Atlantic

http://www.theatlantic.com/doc/200909/health-care

Monday, August 10, 2009

A Primer on the Details of Health Care Reform

Haven't muddled through this yet, but imagine it is similar to the KFF post from the other day comparing proposals

A Primer on the Details of Health Care Reform - NYTimes.com

Saturday, August 8, 2009

Health Debate Turns Hostile at Town Hall Meetings

Health Debate Turns Hostile at Town Hall Meetings - NYTimes.com

if it is any secret, this - to my understanding - is one of the main reasons that the WH wanted to pass health care reform prior to august recess.

will be interesting to see how legislators are influenced by these mobs - which seem to be more "brooks brothers brigade" than real populist uprisings.

worrisome, for sure.

Tuesday, August 4, 2009

Clinical trial recruitment challenges

Recent nytimes article on challenges of clinical trial recruitment (CTR).

Forty Years' War - Lack of Study Volunteers Hobbles Cancer Fight - Series - NYTimes.com

This is a cut on the challenges of CTR that I hadn't thought of before - the factoid that a patient has to spend 196 eight hour work days over the course of five years is unbelievable - that's two months of work a year you're committed to the trial. Most of the pharma conversation is about just trying to find the patients or the step prior - clinical trial feasibility(can we even find enough patients to do this trial) - but less around the challenges to a trial participant.

Interesting piece. More thoughts soon -

Wednesday, July 29, 2009

Sermo CEO on a mission...

The CEO of Sermo - a leading online community for physicians is now in a fight with the AMA and Doctors for America - an organization run by some friends of ours supporting the Obama health care reform effort.

Details at
Sermo CEO: AMA 'screwing' physicians - Modern Medicine Community Blog post and at the bottom of this email (a facebook message from DFA)

An interesting point raised in the first article is that the AMA receives a lot of money for the CPT coding system - a fact I did not know about:

"The AMA receives approximately $70 million in 'licensing fees' from anyone who needs to use those codes. Add to that insurance companies (who pay the AMA many of those millions) who can use the CPT coding system to further their own gains at the expense of the physicians, and it starts to make you realize why CPT codes have been so conveniently left out of the current debate."

The CEO of Sermo also supposedly went onto CNBC early this week saying that physicians opposed health care reform based on a survey they did on their online community.

I had blogged about this survery earlier this month. It seems spurious at best, though I agree with the general premise that the AMA does not speak for all physicians. However, I'm not sure what the motivation is for the CEO of Sermo - is he trying to supplant the AMA as the "voice of physicians"? It all seems like a bizarre sideshow about doctor power instead of the real debates on health care reform.

---

From DFA on facebook:

Dear Friends,

(If you haven't already, come be a fan of our Facebook Page: http://www.facebook.com/pages/Doctors-for-America/94559877688?ref=ts for updates on the latest in health reform and other fun.)

The CEO of Sermo plans to announce on national television that doctors oppose health reform legislation.

**Don't let him speak for you. Click to take our quick poll today!**
(www.drsforamerica.org/pol
l/house.php)

The claim is based on a misleading survey of Sermo members. It will be unveiled on Monday, July 27th on CNBC and shared with Congress. However, we know from the comments and actions of thousands of fellow physicians across the country that doctors want and need health reform this year.

**Do you have 2 minutes? Help us tell the truth about reform today!**
(www.drsforamerica.org/poll/house.php)

Doctors are the most trusted voice in health reform - you can make the difference. Just this past week, Doctors for America members in 30 states picked up their phones to call Congress in support of reform, and physicians from Kansas to Wyoming, from Alaska to New Mexico, have signed up to volunteer. You can help today with a quick poll on whether you like various aspects of the reform bill.

**Answer this quick poll today!**
(www.drsforamerica.org/poll/house.php)

After you have voted, please send this link to 5 friends. We will give preliminary results to CNBC and other media early Monday morning. We have made great progress toward achieving meaningful health reform, but those gains are only temporary until reform legislation lands on the President's desk. We need to do everything we can to help make sure we have good reform and that it passes this year. I know we can count on you.

Thanks,
Alice

Tuesday, July 28, 2009

Side-by-Side Comparison of Major Health Care Reform Proposals by the Kaiser Family Foundation

This link contains an interesting tool that allows Side-by-Side Comparison of Major Health Care Reform Proposals.
It is from the Kaiser Family Foundation.

"Achieving comprehensive health reform has emerged as a leading priority of the President and Congress. President Obama has outlined eight principles for health reform, seeking to address not only the 45 million people who lack health insurance, but also rising health care costs and lack of quality. In Congress, a number of comprehensive reform proposals have been announced as the debate proceeds over how to overhaul the health care system.

This interactive side-by-side compares the leading comprehensive reform proposals across a number of key characteristics and plan components. Included in this side-by-side are proposals for moving toward universal coverage that have been put forward by the President and Members of Congress. In an effort to capture the most important proposals, we have included those that have been formally introduced as legislation as well as those that have been offered as draft proposals or as policy options. This side-by-side offers a summary of the major components of these proposals; detailed descriptions of provisions relating to the Medicare and Medicaid programs can be found online. It will be regularly updated to reflect changes in the proposals and to incorporate major new proposals as they are announced."

Monday, July 27, 2009

ACP moving towards endorsing health care reform

We have talked previously about our frustrating with the American Medical Association (AMA). Many physicians do not believe that the AMA speaks "on their behalf."

On the other hand, most physicians place more stock in their respective specialty association. Since medicine is so diverse, the support needs are highly specialized by specialty and these associations cater specifically to the specialties needs. As an internist, I'm more keen to see what my association - the American College of Physicians (ACP) - has to say on the matter.

I received an email from my local ACP president which is fairly supportive of the current House bill. I'm not really following closely what the AMA has to say on the bill, but I'm glad to see that the ACP is thinking about the legislative process in a sane manner.

The last two paragraphs of this post I think are the constructive message for physicians - be a part of the process, instead of vilifying ourselves - and let's try to make this reform effort a step in the right direction.

-----

TO: ACP Key Congressional Contacts

FROM: Bob Doherty, Senior Vice President, Governmental Affairs and Public Policy

SUBJECT: ACP's views on H.R. 3200, the America's Affordable Health Choices Act of 2009, and efforts to organize opposition to it

Yesterday, the chairmen of the three House committees with jurisdiction over health care reform introduced the America's Affordable Health Choices Act of 2009, H.R. 3200. (The Senate Health, Education, Labor and Pensions Committee has introduced its bill; we are still awaiting a bill from the Senate Finance Committee, which may be released within days). I want to update you on why the American College of Physicians believes that H.R. 3200 merits internists' support, even as we continue to work for improvements through the legislative process.

I know this e-mail is long, but I encourage you to take the time to read through it. It is critical that we continue to work together as Congress moves forward on legislation so critical to patients and you, the physicians who care for them.

The bill is closely aligned and consistent with ACP policies on our top priorities for health reform as developed through our policy committees and approved by the Board of Regents (with input from the Board of Governors and ACP councils). Specifically:

Coverage: The bill creates a pluralistic framework so that all Americans will have access to affordable health insurance coverage, similar to ACP's own seven year plan. It will give eligible persons a wide choice of health plans, including the option of maintaining their current health plan. ACP supports the bill's proposals to reform the insurance industry so that coverage no longer is out of reach for people who have pre-existing conditions or who develop an illness while insured. We support sliding scale tax credits, coverage of evidence-based preventive services with no cost-sharing, and expansion of Medicaid to cover the poor.

ACP does not have policy on the bill's proposal to finance coverage through an income tax surcharge on higher income persons. I anticipate, though, that there will be major changes in the tax and financing mechanisms as legislation makes its way through the House and then has to be reconciled with the Senate, which seems disinclined to rely on an income tax surcharge. The College supports the bill's shared responsibility for funding health care reform, including requirements that employers contribute to coverage and that individuals obtain coverage once affordable options are available to them.

Workforce: The bill would establish a national health workforce policy to help set goals and policies to achieve a sufficient and optimal number and distribution of physicians and other clinicians. It includes policies, recommended in ACP's own policy paper on solutions to the primary care workforce crisis, to increase the numbers of physicians in primary care internal medicine, family medicine and geriatrics, including increased funding and creation of new pathways to provide scholarships and loan forgiveness to primary care physicians who agree to practice in areas of need and policies to facilitate increased training in office-based primary care practices. We also agree on the need to increase GME training positions for primary care specialties as the bill proposes.

Sustainable Growth Rate: The bill would eliminate the accumulated Medicare SGR payment cuts, and by doing so, pave the way for Congress to replace the annual cycle of Medicare payment cuts with a new update system. The bill provides a new framework for future updates that allow for spending on physician services to increase at a rate greater than GDP, and creates a higher spending baseline target for evaluation and management and preventive services, including those associated with primary care.

Primary Care Payment Increases: The bill provides for an additional 5% increase, beginning in 2011, for designated evaluation and management services by general internists and other primary care physicians. The primary care bonus is increased to 10% for designated services in Health Professional Shortage Areas. The bill also would increase Medicaid payments for primary care to be equivalent to Medicare.

Although ACP continues to believe that a larger primary care bonus is needed-we have asked for at least 10% in all areas the country, 15% in health professional shortage areas, we believe that the recognition of the need to increase payments for primary care is an important step forward, especially combined with other changes in the bill to support primary care.

Patient-Centered Medical Home: The bill also provides dedicated funding to pilot-test, on a national scale, the idea of paying physicians for care coordination in a qualified Patient-Centered Medical Home. ACP will continue to provide Congress with ideas on strengthening the payment and delivery system reforms to accomplish the goals of increasing the numbers of physicians in primary care fields.

Comparative Effectiveness Research (CER): The College strongly supports the proposal to fund independent, transparent and evidence-based research on the comparative effectiveness of different treatments to inform physician-patient decision-making.

In addition to its strong correlation with ACP policy and priorities, H.R. 3200 provides substantially more funding to physicians at a time when most other providers are facing deep cuts, according to preliminary estimates from the Congressional Budget Office.

$228.5 billion to eliminate accumulated SGR cuts
$1.6 billion for the PQRI (positive incentives only, no penalties for non-reporting)
$1.3 billion to make the geographic floor on Medicare payment permanent
$5 billion for the primary care bonus
$1.8 billion for medical home demonstrations

No bill is perfect, but the House bill delivers on our major priorities in a way that is remarkably consistent with ACP policies, policies that were developed by the College's leadership over many years and always guide how we-leadership, Key Contacts and staff-advocate for ACP's internal medicine physicians and your patients.

Despite all of the positive elements in H.R. 3200, there is an effort being made in many states to persuade physicians to oppose the bill. You should be aware of the arguments being made by opponents and how I respond to them:

• Opponents argue that the "public plan option" included in H.R. 3200 would lead to the destruction of private insurance and government-run health care.
This is an issue that has elicited strong but divided opinion among ACP members. Some internists have expressed practical and philosophical concerns about the public plan, while others have said that they believe a public plan is essential.

ACP policy says: a public plan could appropriately be offered, along with qualified private plans, if participation in the public plan is voluntary, if it competes on a level playing field with private insurers, and if it is not locked into Medicare's payment rates. Under H.R. 3200, physician and patient participation in the public plan would be voluntary. The public plan would have to pay for itself through premiums collected, rather than being funded from the U.S. Treasury, to help place it on a level playing field with private insurers.

ACP has advised the House that we are concerned that the House bill would have a public plan use Medicare rates (Medicare plus 5% for physicians who accept both Medicare and the public plan) for its first three years. The College will continue to strongly advocate that the public plan be required to pay competitively with private insurers. (The Senate HELP bill, for instance, would benchmark the public plan's rate to the average offered by qualified private plans, so there will be opportunities to address how the public plan sets its rates later in the legislative process).

Opponents also suggest that H.R. 3200 would prohibit private contracting and balance billing, but there is nothing in the law that prohibit existing rights for physicians and patients to enter into voluntary contracts. Like Medicare, however, physicians who choose to take care of patients in the public plan would have to accept limits on charges, similar to the Medicare participating and non-participating physician agreements. No physician would be mandated to accept the public plan and its rates.

The idea that the public plan would destroy private insurance is also not supported by expert analysis. The Congressional Budget Office notes that because physician participation in the public plan is voluntary, and payments are likely to be lower than payments under private insurance plans, it is difficult to estimate how many people would enroll in the public plan. The CBO suggests that enrollment in a public plan, at full implementation, could be as many as 8 or 9 million people out of the estimated 30 million who would get coverage through the exchange, many of whom though are currently uninsured, but even so, this would mean that most people in the exchange would be covered under private insurance. CBO also estimates that the vast majority of persons-164 million, an increase of two million persons compared to current law-would be covered by employers.

• Opponents argue that CER would lead to rationing of care by government bureaucrats.
Actually, the bill's CER provisions are completely consistent with ACP's support for an independent, transparent and evidence-based process to conduct research on the clinical effectiveness of different treatments to inform clinical decision making. There is nothing in the bill that allows costs to be used to deny care. The research would be conducted by physicians and other scientists in agencies, like the National Institutes of Health and the Agency for Health Care Research and Quality, not by government bureaucrats. Coverage decisions would still be made as they are today, but instead would be informed by the best available clinical evidence instead of by criteria that often is not guided by science.

Now it's time to think politics.

To try to influence Congress to consider our ideas to improve the bill, we will be far more effective if internists support all of the positive policies in the bill. We want to continue to be invited to the table and not to have to fight to be there. Destructive opposition will effectively remove us from being invited and place at great risk all of the positive changes that the bill would bring about -including the coverage, workforce, elimination of Medicare SGR cuts, and payment reforms to support primary care.

To this point, the overwhelming majority of physicians have supported health care reform. Let's stay together and let other stakeholders bloody themselves. We still have the senate bills to work through, votes to seek and a Senate-House conference committee to work with. We need, and hope for, your active participation throughout.