Kids’ Advocates Worry About How State Exchanges Will Determine Medicaid Eligibility


Kids’ Advocates Worry About How State Exchanges Will Determine Medicaid Eligibility
By Jane Norman, CQ HealthBeat Associate Editor

Advocates for children’s health warn that low-income families might slip through the cracks in the new state health benefits exchange system, according to a letter advocacy groups submitted in response to provisions in an exchange rule issued earlier this year.

In the rule, “many provisions would potentially undermine the ACA’s [Affordable Care Act] clear intent to establish a simple, unified pathway to health coverage for consumers,” wrote the groups, including the American Academy of Pediatrics. One major element of the rule would let state exchanges opt out of making final determinations on public program eligibility, they said.
There have long been concerns about making sure that families eligible for Medicaid, the Children’s Health Insurance Program or subsidized coverage in the exchanges understand how the new system works and that they are not frustrated by its complexities.

The idea of the exchange itself is that it is a one-stop shop. However in its comments the group said that might not be the case for the poor, many of whom may be gaining health insurance coverage for the first time in their lives. Under the health care law, Medicaid will be extended to every adult under 65 who is earning less than 133 percent of the federal poverty level.

The groups are also concerned that states will be given too much time to ponder their final say-sos on whether people are eligible for insurance coverage, especially pregnant women in need of prenatal care and newborn babies who should be seen by doctors regularly.

While a final 644-page exchange regulation was issued in March, Department of Health and Human Services officials kept several provisions as interim final regulations, which meant they were still open to public input. Overall, the rule sets up a framework in which HHS will assist states in setting up their exchanges, though not every detail is available yet. Public comments were due on Friday.

The coalition of children’s health advocates, including the Children’s Defense Fund, Children’s Hospital Association and March of Dimes, wrote that they were “very troubled” by a decision to allow the state exchanges to decide if they want to give up responsibility for making eligibility decisions on Medicaid. Instead, under the exchange rule, state Medicaid and Children’s Health Insurance Program offices would make those determinations, the groups said.

Proposed rules published in 2011 said that Medicaid determinations would be made initially by the exchanges so they could ensure that people were enrolled in the right programs, said the children’s advocates. However in the revised rule published in March, states can opt to have the exchanges make a preliminary “assessment” and hand off the final decision to Medicaid agencies. In the past it has been a problem when this responsibility was split among agencies even in states with the best of intentions, the groups said.

This could prove a problem for families in which different members may be covered by different programs, or where household income fluctuates month to month and eligibility changes. A February 2011 study in Health Affairs estimated that in a typical year, 28 million people will shift between being eligible for Medicaid and for subsidized health care through the exchanges. These families would then have to figure out how to navigate as many as three different systems during the course of a single benefit year: the exchange, Medicaid and CHIP, said the groups.

“Unfortunately, we know that families in this situation are at greater risk of falling through the cracks of coverage and that a fragmented eligibility system will exacerbate this risk,” they wrote. “We are deeply concerned that it is the nation’s children who will most frequently suffer if states fail to establish simple, user-friendly eligibility and enrollment systems.”

States strapped for cash might even opt to split up the responsibility if they think it might slow down enrollment in Medicaid and CHIP, the groups said.

They suggest that “if a state is going to be allowed to adopt a more complicated eligibility system than is necessary, it should be required to first establish that it could do so without harming families.” The groups said that states should have to demonstrate that their Medicaid agencies are capable of making eligibility determinations in full compliance with the final Medicaid eligibility rule issued by the federal government, that their health technology systems can work in tandem with the exchange systems and that they will comply with requirements that they not subject families to repeated verifications or requests for information.

The groups also said they are worried that the government would give states as many as 45 days to determine Medicaid eligibility for people without disabilities and as many as 90 days for people with disabilities. The groups pointed out that prompt prenatal care is important and newborns are supposed to see a health care provider three times in their first month. Given that the government is making massive investments in new health technology, eligibility decisions should be made within a few days when data is available and “under no circumstances” longer than 30 days, they said.


Wednesday, May 16, 2012

Primary Care Doctors Who Treat Medicaid Patients Get a Two-Year Boost


Primary Care Doctors Who Treat Medicaid Patients Get a Two-Year Boost
By Jane Norman, CQ HealthBeat Associate Editor

Primary care physicians will receive reimbursements for Medicaid equal to what Medicare pays in a two-year “fix” mandated by the health care law, Health and Human Services officials said Wednesday.
The increase will apply to Medicaid services provided in calendar years 2013 and 2014, and will go to family practice physicians, pediatricians and other practitioners of family medicine, as well as some primary care sub-specialties such as neonatologists.

This could be a significant increase for many doctors. States set Medicaid provider reimbursement rates, and primary care practitioners currently are paid 66 percent of the Medicare rate on average, though the percentages vary from state to state, Centers for Medicare and Medicaid Services (CMS) officials told reporters in a conference call.

Cindy Mann, deputy administrator at CMS, said that the $11 billion, two-year boost in reimbursements will be entirely paid for by the federal government rather than the state-federal sharing that generally is the practice for Medicaid. One of the key goals of the health care law is to emphasize primary care, and the increased payments are an example of that, even if they will only last two years, Mann said.

The reimbursement increase was included in a proposed rule published by CMS on Wednesday.
Roland Goertz, board chairman of the American Academy of Family Physicians, who was on the call with Mann, said that family doctors know that people who don’t have access to care put off health needs, and then a simple problem can become complicated. Two-thirds of the members of his academy continue to accept Medicaid patients even though the payment rates are low, he said. “We can’t continue to depend on the good will of physicians who continue to provide care for less than the cost of that care,” Goertz said.
Asked if doctors will seek to extend the temporary pay increase just as they have tried to avert scheduled reimbursement cutbacks under the Sustainable Growth Rate, Mann said that officials will be reviewing the results of the two-year change and whether the pay boost has provided a clear improvement in health care.
Said Goertz: “We’re ready to lobby for what’s right for improving the system.”

Overall, the pay increase is projected to cost the government $5.7 billion in calendar year 2013 and $5.9 billion in 2014, CMS says. Unless Congress provides additional money, the higher rates for primary care providers would end after 2014. Individual states could, however, choose to maintain the higher reimbursements.

Sen. Orrin G. Hatch of Utah, ranking Republican on the Senate Finance Committee, criticized the rule in a statement late Wednesday.

“It’s nonsensical to think a temporary, two-year bump in pay will actually attract and retain doctors to the Medicaid program unless the White House thinks Congress will keep extending these higher payment rates in perpetuitym,’’ Hatch said. “Every year, Congress has to stop Medicare physician payment rate cuts and this proposed regulation will now create the same dilemma under the Medicaid program. When that rate drops back down after 2014, what will happen to the health care Medicaid beneficiaries receive? Or is this just another budget gimmick to hide the true cost of the President’s $2.6 trillion health law?”

As the nation moves toward full implementation of the health care law in 2014 and the expansion of eligibility for Medicaid to all adults under 133 percent of the federal poverty level, “it is critical that a sufficient number of primary care physicians participate in the program,” the rule says.

Public Health Experts Make Recommendations For Obesity Prevention


Public Health Experts Make Recommendations For Obesity Prevention
By John Reichard, CQ HealthBeat Editor

An optimist might say America is about to turn the corner in its battle against obesity. It isn’t because things are getting markedly better. It’s that there may be a growing realization that the obesity epidemic could easily get worse. With that recognition, action may follow.


An intense round of meetings and briefings on obesity in recent days and new reports appeared to heighten that awareness. The experts involved said that nothing less than a culture change is required to counter the health threat. And every level of society must be involved.


The message to Congress: Do not shirk your role in addressing the many influences that foster obesity. Schools, employers, health care providers, insurers, families and individuals cannot afford to do so either.


Anchoring a week’s worth of events was the May 8 release of a 478-page report by the Institute of Medicine. It predicted that people will act when they know the facts. “Once awareness of the catastrophic nature of the obesity problem is understood and felt and the need for diverse and numerous leaders is recognized, all will share the moment of saying to themselves, ‘I can do something about this, and I want to play a role.’ ”


Americans have slowly but surely modified their behavior to cope with other public health threats. They have significantly reduced their use of tobacco, for example. But the Institute of Medicine report’s prediction may be based more on faith than reality, judging from the difficulty of turning back the tide of obesity.


A Bad Neighborhood

The institute report described the powerful influences that promote obesity by talking about “environments” relating to physical activity, food, beverages and messages. It says in effect that Americans live in a bad neighborhood when it comes to avoiding obesity. Adults and children have ready access to cheap, high-calorie foods that come in super-sized portions and are heavily promoted on TV. Physical education classes, once the norm in schools, are no longer offered or have been curtailed. Children play computer games by the hour. In inner cities, where obesity rates are highest, the “built environment” conspires against activity with limited access to exercise areas and high concentrations of fast-food outlets.


“People have a very tough time achieving healthy weights when inactive lifestyles are the norm and inexpensive high-calorie foods and drinks are readily available 24 hours a day,” said Dan Glickman, who chaired the institute panel that produced the report. Glickman, a former Kansas congressman, was Agriculture secretary in the Bill Clinton administration.


Without successful anti-obesity efforts, the percentage of obese adults will reach 42 percent in 2030, up from 33 percent now, according to projections released by the Centers for Disease Control and Prevention at a “Weight of the Nation” conference the agency sponsored in Washington May 7 to 9. That will add $550 billion over the next two decades to the nation’s health care tab. Treating illnesses related to people being obese or overweight costs $190 billion a year, the institute report said. Two-thirds of adults and a third of children are either obese or overweight.


Experts worry especially about the young. Type 2 “adult-onset” diabetes brought on by obesity and inactivity now accounts for half of new diabetes cases in adolescents, compared with 3 percent a few decades ago.


“We are learning that type 2 diabetes is a more aggressive disease in youth than in adults and progresses more rapidly,” said Philip Zeitler, a researcher at Children’s Hospital in Aurora, Colo. The longer a person has type 2, the greater the chances that blindness, stroke, heart and kidney failure will occur.


Widespread media coverage of these and other alarming findings adds to the drumbeat of press reports in recent years on obesity. The institute suggests that awareness eventually will reach a point where the “bold, widespread and sustained action” called for by the study begins to occur. “Funding for implementation is likely to become available as the seriousness of the obesity threat is understood,” the report says.


To help coordinate action the report offers dozens of recommendations to reach five goals: make schools the heart of anti-obesity efforts; make physical activity a daily part of everyone’s lives; offer healthy foods and beverages in all settings; change food marketing; and involve employers, doctors and hospitals in the effort. Congress, it says, should consider taxing soft drinks. And within two years it should legislate marketing standards if industry does not act voluntarily before then to promote healthier nutrition.


But the going will be slow before any tipping point is reached. A major finding calls for 60 minutes a day of physical education through grade 12 — tough to achieve given tight budgets and school testing demands. Industry blocked a soda tax during the health law debate and has resisted federal marketing guidelines. Lawmakers are raiding the multibillion dollar health law fund created to prevent obesity and other costly conditions.


That’s “not a very good priority choice when health care is the fastest growing part of our national budget and the whole focus is on debt reduction,” Glickman said.

Monday, May 7, 2012

Preventive care stepped up


Preventive care stepped up

Misty Williams; Staff  Atlanta Journal Constitution  May 7, 2012

'Medical home' model may expand, aiming to boost care, cut costs.

Imagine this: Doctors getting paid more if they help improve your overall health rather than simply treat ailments as they arise.

It could become a reality for some Georgia doctors and patients if plans in the works by two insurance giants pan out. Aetna and WellPoint say they expect within the next year to start reimbursing selected doctors for coordinating all of a patient's health needs both inside and outside the office.

Both companies' initiatives focus on the "medical home" model in which primary care doctors become a hub for a patients' care, whether creating plans to manage chronic diseases, connecting them with specialists or extending office hours to accommodate work schedules.

The goal is to improve care and cut costs by preventing unnecessary hospital visits and catching illnesses early.

"The health care system that we have in this country is incredibly fragmented," said Jill Hummel, WellPoint's vice president of payment innovations. "We can't just sit around twiddling our thumbs, waiting for the ... industry to transform."

Introduced by pediatricians in the 1960s, the medical home concept has built momentum in recent years as a possible solution to escalating health care costs, in part because advanced technology allows doctors to keep tabs on more patients, communicate with each other and better measure outcomes.

Medical homes have historically treated small groups of chronically ill people, said William Custer, a health care expert at Georgia State University. Expanding the idea to the general population, which has a wider range of conditions and treatments, requires a broader network of providers, he said.

"Connecting them all in a meaningful way was impossible even 20 years ago," he said.

Still, the medical home movement will likely take years to spread, reaching just a fraction of patients at first.

Medical home experiments across the country have returned mixed results on quality and cost savings, Custer said. WellPoint has reported an 18 percent decrease in hospital admissions in a Colorado pilot program.

"The results have been encouraging enough and the intuition strong enough that the whole industry is moving that direction," Custer said.

Becoming part of a medical home has brought Renate Howard a peace of mind the North Georgia resident struggles to express.

Her physician, Dr. Marti Gibbs, is part of the Longstreet Clinic near Gainesville. It recently became one of only 28 practices in Georgia to receive medical home certification by the National Committee for Quality Assurance, a nonprofit focused on improving care.

Gibbs coordinates care among three specialists for Howard's 89-year-old mother. She also helps the 63-year-old manage her borderline osteoporosis.
It's good that the way doctors are paid is changing, Howard said. "[Gibbs] can be blessed more for the services that she gives."

Giving doctors a financial incentive is critical to the medical home concept working, experts say.

Electronic health record systems can cost tens of thousands of dollars. It costs more to hire health coaches, case managers and others to help manage care. But they don't necessarily get paid for making follow-up calls, holding health education classes, creating exercise plans or other nontraditional services aimed at keeping people healthy.

"Why should a physician's practice invest the time, money and culture change if they're not going to be compensated?" said Wayne Hoffman, a former Atlanta family physician turned health care consultant.

Starting in early 2013, Blue Cross and Blue Shield of Georgia, a WellPoint subsidiary, will begin paying some physicians for services not typically reimbursed, such as creating care plans for patients with multiple illnesses. The company has roughly 2.4 million members and nearly 18,000 doctors in its network in Georgia. It's unclear how many will become part of the program, since practices will have to meet certain standards.

Physicians could also see a cut of any savings generated by reducing costs and earn as much as 30 to 50 percent more than they currently do.

Connecticut-based Aetna is also rolling out a program later this year that will pay doctors an extra $2 or $3 per member each month upfront with the potential for an end-of-the-year shared savings bonus.

That extra cash can help physician practices afford electronic medical records or hire extra staff, said Elizabeth Curran, head of Aetna's national network strategy and program development. More pay could someday be a boost for doctors who have already invested heavily in the transformation.
Dr. Gibbs would prefer that day come sooner rather than later.

Her practice has spent the past year and a half becoming a medical home. Nurses spend more time with patients, analyzing charts before visits to identify needed screenings and making follow-up calls to ensure drugs are taken properly.

Gibbs is still paid, however, based on each traditional medical service and continues to see 25 to 30 patients daily to pay overhead costs and salaries.

"That's not providing the best care for those patients, and it's certainly not what I went into medicine for," she said. "Every patient is an individual, and I don't want to lose sight of that in the numbers."

It will take years for payment models to transition from volume to value, said Dr. Jim Sams, medical director of primary care for Piedmont Medical Care Corp.

Current medical home efforts are a bridge --- still paying fee-for-service while adding shared savings opportunities for lowering costs, Sams said. Physicians will eventually assume more risk with insurers potentially withholding payments if they don't meet quality and cost goals, he said.

"[Health care] is capable of bankrupting our country over the next 10 years," he said. "Something has to change."
The 'medical home' concept

Designed to improve overall health, a medical home serves as a central point for coordinating a patient's medical care. That often includes services doctors' offices haven't traditionally provided. As part of a medical home, patients may:

*Work with nurses and doctors to create management plans for chronic illnesses, such as diabetes.
*Receive follow-up calls after visits from nurses who can answer questions.
*Have expanded access to care through evening hours, weekend hours and email.
*Receive reminders about upcoming preventive screenings.
*Be connected with nutritionists, social workers and other professionals who can help them achieve wellness goals.

Debate Heating Up Over CMS Payments for Health IT


Debate Heating Up Over CMS Payments for Health IT
By John Reichard, CQ HealthBeat Editor

The enforcement of federal rules written to prod doctors and hospitals to adopt health information technology is attracting wide scrutiny, with congressional auditors worried that Centers for Medicare and Medicaid officials are too lax and providers and their allies saying the requirements are too tough.

A Government Accountability Office report released this week says that the rules create a complex system of financial rewards and penalties for using the technology. That complexity increases the risk that CMS will make improper Medicare and Medicaid payments relating to health IT.

“CMS could take steps, beyond those already taken, to assess and mitigate the risk of improper payments and to improve program efficiency,” said the report. GAO said, for example, it is “encouraging” that CMS has awarded contracts to evaluate how well states are adopting electronic health records in Medicaid. But the report complains about the lack of a CMS timeline to review the agency’s audit strategy for the Medicare electronic health records program.

Temperature Rising

Meanwhile, hospitals and doctors are objecting to a CMS proposal that aims to increase the use of health IT to make care more efficient. But IT vendors and consumer groups are pushing back against provider objections. IT’s promise won’t be realized if CMS caves, they assert.
At issue is the CMS “stage two” proposal for “meaningful use” requirements, whose comment period ends May 7 (See related story, CQ HealthBeat, March 2, 2012).

Stage one got many providers to buy IT systems and begin using them to record patient information and some data on clinical performance measures. But CMS wants providers to report data on more measures in stage two. It also wants to spur the ability of hospitals to exchange medical information with unaffiliated doctors’s offices that use different IT systems. The idea is to create an “interoperable” system where different computer systems talk to one another and providers throughout a wide area can easily share medical data.

But stage two goals “may be too ambitious for some small or solo practice physicians to meet,” said Rep. Renee Ellmers, R-N.C., chairwoman of the Small Business Subcommittee on Healthcare and Technology. She said that doctors are worried about Medicare payments reductions scheduled for 2015 for physicians who don’t demonstrate meaningful use of health IT. “I urge you to allow hardship exemptions for very small practices,” Ellmers said in a May l letter to CMS Acting Administrator Marilyn Tavenner.

Hospitals argue that the stage two rules imperil widespread adoption of health IT. “Taken as a whole, the proposed requirements for meeting stage two raise the bar too high and are not feasible for the majority of hospitals to achieve,” the American Hospital Association said in an April 30 letter to CMS.

The 68-page comment letter says when it comes to complying with meaningful use requirements, “the rushed timelines and complex regulatory requirements make the process difficult.” Costs are large, it adds, estimating that “hospitals spent $57,000 a year per bed on IT in 2010.”

However, patient advocacy groups are worried about AHA’s power to pressure CMS to water down the regulations. “With the deadline looming, one of the powerhouses in the health care provider community has made public its displeasure with a number of the most robust and important patient-engagement criteria,” said Christine Bechtel of the National Partnership for Women and Families, referring to the AHA letter. “In fact, leaders of this organization made their views known with such vehemence that their views should be characterized as hostility,” Bechtel added.

She chided AHA for urging that hospitals be given more time to give patients web access to medical information relating to a hospital stay.

The stage two proposal says patients should have access to that information within 36 hours of being discharged. But Bechtel says AHA wants hospitals to have up to 30 days “for access to such basic, crucial and highly time-sensitive information as discharge instructions, medication lists, lab test results and care transition summaries.”

She adds that “this is the very information that can help keep patients from being readmitted unnecessarily. No patient in this day and age should have to wait a full month for access to their own health information, which is vital to their ability to get and stay well.”

Another concern relates to a proposed requirement that hospitals to be able to transmit electronically a summary-of-care record when a patient is transferred or referred to another provider that has an electronic health record system from a different vendor. At least 10 percent of summary-of-care record transmissions in these cases should be performed electronically with outside organizations that use different electronic health record systems, CMS is proposing.

AHA says this requirement would create an unreasonable burden because providers “would need to count transitions, track the organizational affiliations of the recipients, and track the vendors used by the recipients.”

The Health IT Now coalition says this is one of the few provisions in the stage two proposal that would begin laying the groundwork for the widespread sharing of medical information, which is critical to achieving IT’s potential for making care safer and more efficient, it adds.
“We believe these standards are achievable and that more must be done to promote the exchange of information to better coordinate patient care,” said Joel White, executive director of the coalition. “We will encourage HHS to take steps in that direction.”