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Thursday
May172018

Medication Nonadherence: Data and Analytics Can Make an Impact

By Claire Thayer, May 16, 2018

Over two-thirds of hospital readmissions are directly due to medication nonadherence.  Many factors contribute to patients not taking their medications, including fear of side effects, out-of-pocket costs, and misunderstanding intended use.  Interventions targeted at understanding the underlying causes on nonadherence are critical to improving chronic disease outcomes.  Successful interventions include: educating patients on purpose and benefits of treatment regimen, reducing barriers to obtain medication, as well as use of health IT tools to improve decision making and communication during and after office visits. 

This weeks’ edition of the MCOL infoGraphoid, co-sponsored by DST Health, explores how data and analytics can provide insight to drive behavior change to improve adherence.

MCOL’s weekly infoGraphoid is a benefit for MCOL Basic members and released each Wednesday as part of the MCOL Daily Factoid e-newsletter distribution service – find out more here.

Friday
May112018

The Disconnect with Consumers and Health Plan Costs

The Disconnect with Consumers and Health Plan Costs
 

By Clive Riddle, May 11, 2018

 

eHealth this week released a new eleven page report: Costs and Consequences in the ACA Market: A Survey of Individual and Family Health Insurance Consumers, presenting findings from more than 1,700 consumers who purchased their ACA-compliant plans via eHealth that included:  (1) “Consumers’ idea of a fair price is hard to find in today’s market;” (2) Policyholders aren’t willing to pay extra for key ACA benefits;” and (3) “Voters are bringing health care frustrations to the mid-term elections this fall,” (66% said it was one of their top three issues.)

 

Consistent with a number of previous studies, there is a significant disconnect between consumers sense of where healthcare prices should be in the market, and what they actually are. Health reports that the average individual monthly premium cost during the last open enrollment was $400,  Only 3% surveyed felt $400+ was a fair price. Only 9% felt $300+ was fair. Only 25% felt $200+ was fair. So what is fair? 38% felt premiums should be $100 or less. Another 36% felt $200 or less was fair.

 

The disconnect carries over consumer sense of the value of specific benefits. 61% want mental health benefits, 60% want maternity care and 55% want birth control coverage (which are all ACA required), but only 25%, 24% and 16% respectively, want to pay for them. Even emergency room benefits experience this disconnect: 80% want the benefit and 54% are willing to pay for it.

 

ACA compliant HDHPs are prevalent in the ACA marketplace, and continue to gain the large group environment as well. Benefitfocus this week released a new eleven page survey report: The State of Employee Benefits 2018 - Industry Edition that examined benefit trends for four sectors: education, health care, manufacturing and retail, with an emphasis on examining the impact of HDHPs in each sector.

 

Benefitfocus found that regarding HDHP prevalence by sector:

·         Education: 50% of employers offer HDHPs compared to 23% in 2016.

·         Healthcare: 73%% of employers offer HDHPs compared to 56% in 2016.

·         Manufacturing: 88%% of employers offer HDHPs compared to 54% in 2016.

·         Retail: 76%% of employers offer HDHPs compared to 55% in 2016.

·         All Industries: Healthcare: 70%% of employers offer HDHPs compared to 58% in 2016.

 

When large employers offer other type plans and HDHPs side by side (many employers do not offer both), the HDHP employee enrollment rates by sector were: Education: 34% (30% in 2016); Healthcare: 27% (23% in 2016); Manufacturing: 29% (46% in 2016); Retail: 40% (27% in 2016) and All Industries: 35% (40% in 2016).

 

What would drive such different results by sector? Employee premium HDHP contributions compared to last year decreased 27% in Education, increased 4% in healthcare, increased 46% in manufacturing, increased 20% in retail, and increased 4% overall for all industries.

 

So just as in the individual marketplace, much comes down to price, even though there is a disconnect in the value that price reflects.

 
Friday
May112018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

Trump touts plan to lower drug costs but rejects Medicare negotiations

President Donald Trump on Friday will unveil a sweeping strategy for lowering drug prices that aims to reshape Medicare, boost competition and pressure foreign governments that the White House believes are “freeloading” off of the U.S. pharmaceutical industry, two senior administration officials said Thursday night.

Politico

Thursday, May 10, 2018

Medical device recalls reach historic levels in 2018 with software as leading cause

Medical device recalls reached record highs in the first three months of 2018 thanks to software complications that are likely to continue with the proliferation of high-tech devices.

Fierce Healthcare

Wednesday, May 9, 2018

How Mayo Clinic's prescribing guidelines are cutting opioid prescriptions by half

After analyzing opioid prescribing practices following surgery and improving prescribing guidelines, researchers at the Mayo Clinic Department of Orthopedic Surgery in Rochester, Minn., saw a 48 percent decrease in opioids prescribed for hip and knee replacement surgery, according to a study published in Clinical Orthopaedics and Related Research.

Becker's Hospital Review

Tuesday, May 8, 2018

Trump proposes $15 billion spending cuts, targets children's health program

U.S. President Donald Trump will request a package of $15 billion in spending cuts from Congress on Tuesday, including some $7 billion from the Children’s Health Insurance Program championed by Democrats, senior administration officials said on Monday.

Reuters

Tuesday, May 8, 2018

Health insurance CEOs earned $342.6M in 2017

Nearly every health insurance CEO got a pay raise in 2017—in most cases, bringing home more than 300 times the amount their average employee earned.

Fierce Healthcare

Monday, May 7, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Friday
May042018

Welcome to Lifestyle Medicine

By Clive Riddle, May 4, 2018 

The May issue of Circulation includes the research article: Impact of Healthy Lifestyle Factors on Life Expectancies in the US Population, which presented findings from a study that aimed “to estimate the impact of lifestyle factors on premature mortality and life expectancy in the US population.” 

Using data from previous studies they defined five low-risk lifestyle factors

  1. never smoking
  2. ≥30 min/d of moderate to vigorous physical activity
  3. moderate alcohol intake
  4. a high diet quality score (upper 40%)

The study “estimated hazard ratios for the association of total lifestyle score (0-5 scale) with mortality,” and used available national public databases to estimate life expectancy by levels of the lifestyle score, examining mortality of 42,167 adults. 

They found the females who adopted all five of these low risk factors would at age 50 live 14.0 more years that those who adopted zero of the five; and that men at age 50 who adopted all five would live 12.2 years longer than those who adopted zero. They “estimated that the life expectancy at age 50 years was 29.0 years for women and 25.5 years for men who adopted zero low-risk lifestyle factors. In contrast, for those who adopted all 5 low-risk factors, we projected a life expectancy at age 50 years of 43.1 years for women and 37.6 years for men.” 

With these findings in mind, let’s stop by the American College of Lifestyle Medicine (ACLM), established several years ago as “the professional medical association for those dedicated to the advancement and clinical practice of Lifestyle Medicine as the foundation of a transformed and sustainable healthcare system.” They tell us that “Lifestyle Medicine involves the use of evidence-based lifestyle therapeutic approaches.” 

ACLM and Blue Shield of California have just announced a collaboration “to provide Lifestyle Medicine continuing medical education and other training tools to the nonprofit health plan’s in-network healthcare providers.” They tell us that “with this new collaboration, Blue Shield becomes the first health plan to offer its in-network healthcare professionals access to discounted ACLM courses, membership, conference registration, board certification review coursework and registration for the American Board of Lifestyle Medicine exam.” 

In November last year, ACLM announced the first physicians and health professionals to be board-certified in the field. They also have developed True Health Initiative (THI), “a coalition of world-renowned health experts committed to cutting through the noise and educating on only the evidence-based, time-honored, proven principles about lifestyle as medicine. The ultimate mission of the THI is to eliminate as much as 80% of all lifestyle-related chronic disease through lifestyle as medicine.”

 

Friday
May042018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

‘Pharma Bro’ Shkreli Is In Prison, But Daraprim’s Price Is Still High 

It was 2015 when Martin Shkreli, then CEO of Turing Pharmaceuticals and the notorious “pharma bro,” jacked up the cost of the lifesaving drug Daraprim by 5,000 percent. Overnight, its price tag skyrocketed from $13.50 a pill to $750.

Kaiser Health News

Friday, May 4, 2018

Health Insurers Had Their Best Quarter in Years, Despite the Flu

U.S. health insurers just posted their best financial results in years, shrugging off worries that the worst flu season in recent history would hurt profits.

Bloomberg

Thursday, May 3, 2018

CVS ‘Moving Forward’ With Aetna Deal, Profit Tops Estimates

CVS ‘Moving Forward’ With Aetna Deal, Profit Tops Estimates CVS Health Corp. said it’s making “good progress” on getting regulatory approval for its $68 billion deal to buy health insurer Aetna Inc. -- one of two megamergers in the health-care industry that are under antitrust scrutiny.

Bloomberg

Wednesday, May 2, 2018

HHS Secretary Alex Azar to Supreme Court: Time to rule on Medicare case that affects $4 billion

Health and Human Services Secretary Alex Azar asked the U.S. Supreme Court to review an appeals court case won by numerous hospitals over disproportionate share hospital payments.

Healthcare Finance News

Wednesday, May 2, 2018

Bill Gates got President Trump fired up about a universal flu vaccine

Bill Gates was talking to President Trump in the Oval Office last month when the conversation turned to the notion of a universal flu vaccine — probably, as Gates recalled in an interview, “the longest conversation about universal flu vaccine that the president’s ever had.”

Stat News

Monday, April 30, 2018


These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 

Friday
Apr272018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

CMS extension of transitional health plans could ding ACA market

The CMS has once again allowed insurers and states to renew so-called transitional health plans that pre-dated Affordable Care Act coverage requirements and that don't have to comply with those rules.

Modern Healthcare

Thursday, April 26, 2018

 

Anthem sees profits rise after scaling back participation in ObamaCare

Anthem experienced a profit boost in the first quarter of 2018 after scaling back its participation in the ObamaCare markets, the health insurer announced Wednesday.

The Hill

Wednesday, April 25, 2018

HHS proposes Medicare payment rules to encourage hospitals to be clearer about prices

The Trump administration is proposing to rewrite rules on federal payments to hospitals treating older Americans on Medicare, making it easier for patients to see the prices of procedures and care.

The Washington Post

Tuesday, April 24, 2018

Senate Health panel approves opioid bill

The Senate Health Committee unanimously voted Tuesday to send the panel’s bipartisan opioid bill to the chamber’s floor.

The Hill

Tuesday, April 24, 2018

Insurer group issues warning on Trump administration's short-term health plan proposal

The nation's largest trade group for health insurance companies is sounding the alarm on a proposal from the Trump administration that would expand the sale of plans that cover fewer services.

The Hill

Monday, April 23, 2018

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 

 
Friday
Apr272018

Nine Things to Know Jump Out of Leapfrog Hospital Safety Grade Report

Nine Things to Know Jump Out of Leapfrog Hospital Safety Grade Report
 

By Clive Riddle, April 27, 2018

 

In May talk of frogs would lead one to the annual Calaveras Jumping Frog Jubilee (check out www.frogtown.com). But in April, talk of frogs leads one to The Leapfrog Group, who just released the spring 2018 edition of the Leapfrog biannual  Hospital Safety Grades. Leapfrog tells us their “grading assigns “A,” “B,” “C,” “D” and “F” letter grades to general acute-care hospitals in the U.S., and is the nation’s only rating focused entirely on errors, accidents, injuries and infections that collectively are the third leading cause of death in the United States.”

 

Here’s nine things to know from the Leapfrog report card results they have shared:

1.     Five “A” hospitals receiving this grade for the very first time this spring had an “F” grade in the past

2.     46 hospitals have achieved an “A” for the first time since the Leapfrog Hospital Safety Grade began six years ago

3.     89 hospitals receiving an “A” at one point had received a “D” or “F”

4.     Of the approximately 2,500 hospitals graded, 30 percent earned an “A,” 28 percent earned a “B,” 35 percent a “C,” six percent a “D” and one percent an “F”

5.     The five states with the highest percentage of “A” hospitals this spring are Hawaii, Idaho, Rhode Island, Massachusetts and Virginia

6.     Rhode Island, Hawaii, Wisconsin, and Idaho once ranked near the bottom of the state rankings of percentage of “A” hospitals but now rank in the top ten

7.     Hospitals with “F” grades are located in California, Washington, D.C., Florida, Iowa, Illinois, Maryland, Michigan, Mississippi, New Jersey and New York

8.     There are no “A” hospitals in Alaska, Delaware or North Dakota

9.     Impressively, 49 hospitals nationwide have achieved an “A” in every grading update since the launch of the Safety Grade in spring 2012

 

In addition to staterankings, you can search for specific hospital safety results at their webaite: http://www.hospitalsafetygrade.org

 
Wednesday
Apr252018

Five Questions for Erin Benson and Rich Morino with LexisNexis Health Care: Post-Webinar Interview

Five Questions for Erin Benson and Rich Morino with LexisNexis Health Care: Post-Webinar Interview
 

Last week, Erin Benson, Director Marketing Planning and Rich Morino, Director, Strategic Solutions, LexisNexis Health Care, participated in a Healthcare Web Summit webinar discussion on opportunities for health plans to leverage social determinants of health data to attain quality goals while managing cost and enhancing member experience.  If you missed this engaging webinar presentation, watch the On-Demand version here. After the webinar, we interviewed Erin and Rich on five key takeaways from the webinar:

 

1. What are some of the ways that member health is impacted on a daily basis by social, economic and environmental factors?

 

Erin Benson and Rich Morino: The environment in which a person lives impacts their likelihood to develop health conditions as well as their likelihood to effectively manage those conditions. Care recommendations need to be a good fit for a member’s environment, not just their medical condition. If recommendations won’t work within the person’s physical environment, aren’t affordable or conveniently located, and are provided in a way that is hard for the member to understand, they won’t be effective at improving health. Studies support this fact. For example, 75-90% of primary care visits are the result of stress-related factors (JAOA Evaluating the Impact of Stress on Systemic Disease: The MOST Protocol in Primary Care). Money, work and family responsibilities – all reflective of social determinants of health -- are cited as the top three causes of stress (APA 2015).

 

2. We've heard reference to aggregating data at the zip code level for use in personalizing care for members. However, this is one of your top five myths about socio determinants of health. Can you tell us more?

 

Erin Benson and Rich Morino: While aggregate data can be useful in certain capacities, it isn’t recommended as a best practice for personalizing care. Within a single zip code, it is not unusual to see variance in income levels, crime rates and other factors impacting an individual’s neighborhood and built environment, so we recommend looking at an individual’s neighborhood from the perspective of their specific address. Focusing on zip code alone also ignores the influences of education, economic stability and social and community context so we recommend incorporating these other social determinants of health into decision-making in order to view the member holistically and create a more comprehensive plan of care outreach.  

 

3. Can you briefly explain why previous generations of SDOH have failed to improve health outcomes?

 

Erin Benson and Rich Morino: There are two primary reasons why previous generations of SDOH have failed to improve health outcomes, data and workflow.   In order to get sufficient value, the data needs to address all 5 categories of SDOH to properly draw useful insights.  The data should also be at the member level, and address who the member’s family and close associations.  Without that information, we cannot tell if someone is socially isolated or living with caregivers, for instance.

 

The second reason why previous generations of SDOH have failed is how they are deployed in the workflow.  An example would be a plan simply adding them to an existing claims-based model to achieve an increase in lift.  The lift is nice, but no changes in process are filtering down to the Care Management team interacting with the members.   In this scenario, a lot of value was ignored.

 

A better method would be if the plan also built models identifying members with barriers to improved health outcomes.  If you now apply this to your chronic or at-risk population you can determine not just who is sick and in need of help, but how to most likely achieve success in an intervention program.  Care Managers would immediately know the challenges to success, and what type of intervention program the member should be in enrolled in from the start.

 

4. One of the SDOH models to uncover health barriers referenced during your webinar was social isolation. Can you provide more context for us here?

 

Erin Benson and Rich Morino: Studies have shown that social isolation can increase risk of heart disease by 29% and stroke by 32% (New York Times How Social Isolation Is Killing Us). By understanding factors about an individual such as who else is living in the household with them, their predicted marital status, and how close their nearest relatives and associates live to them, healthcare organizations can identify who may be socially isolated. This allows care providers to ask the right questions to determine if that person needs access to social support systems such as support groups or community resources to improve their health outcomes.

 

5. What are some ways social determinants can help health plans enhance predictions and improve care management?

 

Erin Benson and Rich Morino: The most common way of utilizing SDOH data so far has been to incorporate it into existing claims-based predictive models to improve predictive accuracy or to use it to create new predictive models. The second use is for care management purposes and this is where social determinants of health can be truly transformational. We recommend as a best practice to use social determinants of health insights to also build models that identify health barriers. The combination of models allows healthcare organizations to better stratify the risk of their members and then better tailor care to their medical and social needs.

 
Friday
Apr202018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

Top News From the Past Week as reported from key news services, and compiled by MCOL

Opioid prescriptions fell 10 percent last year, study says

Prescriptions for opioids fell sharply last year, the steepest drop in the amount of painkillers dispensed to patients in 25 years, according to a report from IQVIA Institute for Human Data Science, the research arm of a health-care data firm.

The Washington Post

Thursday, April 19, 2018

Congress Urged To Cut Medicare Payments To Many Stand-Alone ERs

The woman arrived at the emergency department gasping for air, her severe emphysema causing such shortness of breath that the physician who examined her put her on a ventilator immediately to help her breathe.

Kaiser Health News

Tuesday, April 17, 2018

1.7 million people could be impacted by Medicaid work requirements in 10 states

About 1.7 million Medicaid beneficiaries could be impacted by work requirement proposals in 10 states, according to new report released Monday from the PwC Health Research Institute.

The Hill

Monday, April 16, 2018

CVS Rallies After Amazon Report

CVS Health Corp., along with rival drugstores and drug distributors, rallied after a report that Amazon.com Inc. had shelved plans to sell drugs to hospitals and other businesses.

Bloomberg

Monday, April 16, 2018

New Medicaid Requirements Signals Trump Crackdown On Public Assistance Programs

Michel Martin speaks to Diane Rowland from The Kaiser Family Foundation about a new order from President Trump to establish work requirements for recipients of Medicaid and other federal benefits.

NPR

Sunday, April 15, 2018

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Wednesday
Apr182018

No Signatures Required!

No Signatures Required!
 

By Kim Bellard, April 18, 2018

 

If you live in the U.S., you've probably had the experience of paying for a meal using a credit card.  The server takes your card, disappears to somewhere in the back, does something with it that you can't see, and returns with your card, along with two paper receipts, one of which you need to sign.

As of last week, the major credit card companies are no longer requiring that signature.  As a Mastercard person told CNET, "It is the right time to eliminate an antiquated practice."  

No kidding.  Healthcare should be eliminating its antiquated practices too.

Ending the requirement was 
announced last year, went away last week, but its actual demise will happen more slowly, as individual merchants can still require it.  Of course, the signature is only part of the antiquated process.  They're probably not looking up your card number on a monthly list of stolen cards any longer, nor using a manual imprinter to charge your card, but both using the physical card and taking it from you are steps that there are 21st century alternatives to. 

Still, I'd be willing to bet that the credit card companies and merchants bring their processes fully into the 21st century before healthcare does.


Let's go through some of these:

·         Healthcare still relies heavily on faxes. Supposedly it is because of security, "HIPAA," etc., but this reliance is a lot like requiring signatures for credit cards. 

·         In an era of ubiquitous smartphones, healthcare is still making heavy use of pagers, especially within hospitals

·         I can use an AMT pretty much anywhere in the world, and can not only access my bank account to obtain balance or transfer funds, but even to get cash on the spot.  In healthcare, I can't even go to a new doctor or healthcare facility without having to start from ground zero in terms of information about me (unless they are part of a health system I've already used).  

·         Patient portals have proliferated, with more options to do tasks online, but how many times do you visit a health care professional without having to fill out or sign yet another form? 

·         We can make online reservations for, say, restaurants, airlines, or hotels.  When it comes to making healthcare appointments, though, we're almost always forced to go through a tedious phone tree and end up negotiating with a human scheduler.   In 2018?

·         Manufacturers have overwhelmingly turned to just-in-time processes.  Meanwhile, in healthcare, an appointment time is usually at best an approximation; we expect to be seen late.  If you are in a facility expecting a test or procedure, it's even worse.  These aren't even 1960's levels of precision.

·         Telemedicine is widely available, but usually it won't be with your doctor and the doctor you end up getting won't have your medical history.  Shouldn't virtual visits usually be the first step?  

·         With healthcare there, no institution has access to even most of our medical history, which remains highly scattered, siloed, and sometimes even still paper-based.  How 1980's!  

·         We continue to urge people to get annual preventive exams, even though the value of them for most adults is highly dubious.  We still make people get unpleasant procedures like digital rectal exams, or tests of questionable value like PSAs or even mammograms.  

 

In many ways, we do have "space age" healthcare, but that space age is too often more like 1960's NASA than 21st century SpaceX. 

 

We can do better.  Much of healthcare has one foot firmly planted in the 21st century, and its vision looking forward.  But too much of it still has the other foot dragging in the 20th century. It is past time to not only identify but also to act upon antiquated practices in healthcare.
 

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

 
Friday
Apr132018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

More Americans Choose a Health Savings Account with a High Deductible Plan for Their Financial Security

Approximately 22 million Americans have chosen a health savings account (HSA) coupled with a high deductible health plan (HDHP), according to a new survey from America’s Health Insurance Plans (AHIP).

AHIP

Thursday, April 12, 2018

Drug executives to testify before Congress about their role in U.S. opioid crisis

Current and former executives with the pharmaceutical distributors that are accused of flooding communities with powerful prescription painkillers have been summoned to testify before Congress about their role in the U.S. opioid epidemic.

The Washington Post

Thursday, April 12, 2018

Why America's physician shortage could top 120k by 2030

The U.S. could face a shortage of more than 121,000 physicians by 2030, according to updated data from the Association of American Medical Colleges. The estimate is higher than AAMC's 2030 projections published last year.

Becker's Hospital Review

Wednesday, April 11, 2018

JP Morgan: Value-Based Care Will Guide Amazon, Berkshire Work

Amazon, JP Morgan, and Berkshire Hathaway will build their new company upon best practices in value-based care, including improving preventive care and managing member costs through data sharing, said JP Morgan Chase & Co. CEO Jamie Dimon in an investor letter.

HealthPayer Intelligence

Monday, April 9, 2018

Medicaid patients have better access to care than uninsured

Medicaid enrollees have better access to medical care than people who are uninsured, according to a new insurance industry study that refutes critics who say patients are better off without the government program for the poor.

Washington Examiner

Monday, April 9, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 

 
Thursday
Apr122018

Long Term ACO Impact: Medicare vs. Medicaid vs. Commercial

Long Term ACO Impact: Medicare vs. Medicaid vs. Commercial
 

By Clive Riddle, April 12, 2018

 

Commercial accountable care – value based payment arrangements between purchasers and providers seem to be spreading virally. States Medicaid accountable care initiatives are proliferating.  Will Medicare continue to consumer the greatest share of healthcare stakeholder attributed ACO patients and financial resources?  The April issue of Accountable Care News Thoughtleaders Corner ask a panel this question: “Which type of ACO activity will have more impact on stakeholders in the long term: Medicare, Medicaid  or commercial?”

 

Kirit Pandit, Co-Founder & Chief Technology Officer of VitreosHealth responds that “I think Medicare ACO activity will have the most impact in the long term based on where incentives are maximized. Fully capitated plans such as Medicare Advantage and managed Medicaid plans will have the highest incentive to reduce costs and maintain high quality scores. This is where ACO activity will produce the best outcomes. The per member per month costs are high to make it attractive for providers to participate in these performance-based contracts.  However, compared to Medicare ACOs, Medicaid has higher churn rates. This makes it challenging for the providers to manage these members with a long-term perspective. If the churn rates are high, chronic care management activities will not have enough time to impact patient behavior and outcome. So the Medicare ACO plans that are fully capitated and have minimal member churn will have the highest impact.”

 

 Michael Millenson, President, Health Quality Advisors; adjunct associate professor of medicine at Northwestern University’s Feinberg School of Medicine and author of the book Demanding Medical Excellence has this to say: “Right now, it’s synergistic. Medicare is by far the nation's largest payer, but joining an ACO is voluntary. However, Medicare’s clout and standardization are critical. On the other hand, Medicaid and private payers can both push their programs on providers (a state or large employers can choose only ACOs) and be much more innovative. Statutorily, CMS could switch all Medicare to ACOs without additional congressional authorization. If that ever happens – with implicit Congressional approval and definitely in the long term – this question will have answered itself.”     

 

William DeMarco, Founder and President, Pendulum HealthCare Development Corporation, which has advised a wide range of ACO clients shares that “We think after all the dust settles, Medicare will offer the biggest impact on stakeholders. This considers total dollars and the fact that 10,000 Baby Boomers turn 65 every day and total cost of care will continue to rise ahead of inflation – so it will always be a big number. Medicaid will continue to be in a constant state of change on a state-by-state basis, but will slowly follow the ACO transition that may very well lead to more Special Needs and Dual-Eligible strategies being promoted by states and offered by insurers, as well as provider-led health plans that see the advantage of receiving a large capitated sum from Medicare and Medicaid for eligible patients. I say this based upon the number of Section 1115 waivers being sought to permit states to offer above and beyond Medicaid benefits through ACOs and CCOs. Commercial will always be in transition, as self-funded and fully insured are finding big deductibles do not work and the fiduciary accountability starts to weigh heavily on many of the purchasers of care. What employers are interested in are ACOs that can manage the active workers and retirees at a predictable cost. Health plans and insurers are seeing their profitability is linked with these ACOs that can take partial or full risk for the medical portion of the premium, and this allows the health plan to improve administrative cost savings – plus predict total cost of care.”

 

So, some collective wisdom seems to point towards Medicare continuing to hold the strongest magnetic force attracting ACO activity.

 
Friday
Apr062018

The PBM side of CVS

The PBM side of CVS
 

By Clive Riddle, April 6, 2018

 

Assuming the CVS acquisition of Aetna clears all final hurdles, perhaps the most attention given to the merged company is in respect to the retail synergies. But the CVS Caremark PBM also deserves considerable attention. After all, Cigna’s big merger recently announced with Express Scripts was purely a PBM play.

 

With that in mind, its interesting to poke through the just released 14-page CVS Health Drug Trend Report 2017. Similar to Express Scripts previously released 2017 report, the CVS Health report was certainly positive, and they touted that drug prices for clients  rose “at a minimal 0.2 percent, despite manufacturer price inflation near 10 percent.”

 

But it must be noted that the touted 0.2 percent increase was just for prices. There was 1.7% cost growth due to utilization, yielding a total pmpy drug trend in 2017 of 1.9%, still quite a positive trend.

 

Here is additional data CVS shared about their client experience in 2017:

·         While CVS drug price growth was 0.2%, the manufacturer AWP inflation rates were 9.2& for traditional brands, 8.3% for specialty brands, and 0.4% for generics.

·         The CVS generic dispensing rate was 86.1%.

·         CVS traditional and specialty brands accounted for 14% of prescriptions dispensed, but 69% of pharmaceutical spend.

·         The CVS specialty trend consisted of 3.7% price growth plus 9.2% utilization cost growth for a total 12.9% 2017 specialty trend.

·         CVS gross client costs pmpm were 108.42 pmpm in 2017 compared to $104.10 in 2016.

·         For CVS Clients with managed formularies, costs were $88.94 pmpm compared to $87.43 pmpm in 2016.

·         The managed formulary differential in overall drug trend for 2017 resulted in a 1.7% trend with managed formulary clients compared to 4.2% trend for other clients.

·         42 percent of CVS Health commercial PBM clients spent less on their pharmacy benefit plan in 2017 than they had in 2016.

·         For clients aligned with the company's managed formularies, drug price declined by 0.1 percent, in 2017, as compared to the overall 0.2 percent drug price growth.

·         Member out of pocket costs pmpm declined from $11.99 in 2016 to $11.89 in 2017.

·         In 2017 24% of members had zero out of pocket costs (no claims), 49.4% of members had out of pocket costs under $100, 14.6% had out of pocket costs between $100-$299, 5% had out of pocket costs between $300 - $499, 4.3% between $500-$599 and 2.7% above $1,000.

 
Friday
Mar302018

Wal-Mart and Humana: How Healthcare on Wall Street Imitates Hollywood

Wal-Mart and Humana: How Healthcare on Wall Street Imitates Hollywood
 

 

By Clive Riddle, March 30, 2018

Hollywood notoriously chases a hot movie trend with much more of the same – imitation being the most sincere form of flattery.  Wall Street when it comes to healthcare continues to flatter Hollywood by imitating this strategy as best they can.

 

In the 1980s, public hospital companies rushed to acquire health plans. They subsequently rushed to spin-off or otherwise unload them. That’s how Humana become just a health plan company. In the 1990’s, the PPM industry was born as integrated delivery systems where split up, giving birth to PhyCor an others who subsequently flamed out.

 

More recently, on the heels of ACA implementation, the mantra was to increase clout to succeed in the Marketplaces and expanding Medicaid and Medicare Advantage programs. Aetna announced the Humana acquisition and Centene announced the HealthNet acquisition within a day of each other in early July 2015. Three weeks later Anthem announced the Cigna acquisition.

 

Then in February 2017, Aetna-Humana and Anthem-Cigna separately announced on the same day the death of their proposed mergers, thanks to DOJ opposition, and in Anthem-Cigna’s case, merger indigestion. Additionally, the new Trump administration and Republication Congress’ zeal for Repeal made the merger’s marketplace strategy seem moot.

 

But a year later a new blockbuster movie formula has developed. There is Amazon style retail market disruption looming over the pharmacy sector in particular but the rest of healthcare as well, and the specter of the mysterious Amazon-BershireHathaway-JPMorgan healthcare venture. There is the outcry over pharmaceutical costs, and the questioning of the PBM sector’s role.  From this backdrop the CVS-Aetna merger emerges in early December.  Then early this month Cigna announces their Express Scripts acquisition.

 

And now the Wall Street Journal and many others report Walmart is in early stage acquisition talks with Humana. WSJ notes the annual revenue of WalMart is $500 billion and Humana’s is $54B, compared to $185B fir CVS, $61B for Aetna, $42B for Cigna and $100B for Express Scripts.

 

Will the Walmart-Human movie deal get inked? Will any of these new projects make it through production and get released? And what sequels and similar projects are under development?

 
Friday
Mar302018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

CDC director pledges to bring opioid epidemic 'to its knees'

The new director of the top U.S. public health agency on Thursday pledged to work to bring the nation's opioid epidemic "to its knees" and said he believes the AIDS epidemic could be ended in three to seven years.

ABC News

Thursday, March 29, 2018

Walmart talking with Humana on closer ties; acquisition possible: sources

U.S. retailer Walmart Inc (WMT.N) is in early-stage talks with health insurer Humana Inc (HUM.N) about developing closer ties, with the acquisition of Humana being discussed as one possibility, people familiar with the matter said on Thursday.

Reuters

Thursday, March 29, 2018

White House: 'No one is talking about privatizing the VA'

President Donald Trump said Thursday he fired Veterans Affairs Secretary David Shulkin because he wanted to give veterans more choices, but a spokesperson said his actions did not signal a desire to privatize veterans' health services.

Politico

Thursday, March 29, 2018

Thousands Mistakenly Enrolled During California’s Medicaid Expansion, Feds Find

California signed up an estimated 450,000 people under Medicaid expansion who may not have been eligible for coverage, according to a report by the U.S. Health and Human Services’ chief watchdog.

Kaiser Health News

Wednesday, March 28, 2018

Urgent Care Center Utilization Skyrocketed by 1725% in Last Decade

Healthcare payers saw urgent care center utilization grow by 1725 percent from 2007 to 2016, indicating that urgent care may the one of the fastest-growing choices for receiving healthcare.

HealthPayer Intelligence

Monday, March 26, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.
 
Friday
Mar232018

Animal Farm Meets Health Care

Animal Farm Meets Health Care
 

By Kim Bellard, March 23, 2018

 

 

In George Orwell's classic Animal Farm, the animals revolt against their human masters, and establish a classless society with the inspiring principle, "All animals are equal."  As events play out, their society devolves into a dictatorship with a ruling elite, and the principle becomes "All animals are equal, but some are more equal than others."

This, surprisingly, makes me think of health care.  

 

I am old enough to remember when maternity coverage was at best only very limited even in employer group health plans.  It took the Pregnancy Discrimination Act (1978) to require them to treat maternity the same as any "illness," and, even then, individuals plans often did not include it until ACA required it Similarly, coverage for mental health was typically skimpy until the Mental Health Parity Act (2008) required parity.

Preventive services were usually only available for (the small percentage of) people enrolled in HMOs, until network-based managed care plans grew more widespread in the 1990's.  The same happened with prescription drug coverage, which used to only be available to the minority of people with "major medical" coverage.

It took the Affordable Care Act to standardize what "essential benefits" should be included in health plans.
For services like dental, vision, or hearing, not so much.   Evidently, some services are more equal than others.

We've managed to push our rate of people without health insurance to 
around 11%, but it's more than double that for dental insurance, and worse yet for vision coverage.  For seniors, the figures are significantly worse

The real question should be, why do we have separate coverages for services like dental or vision, especially when many lack them?

This matters.  
According to NCHS, 14% of Americas report hearing trouble, 9% vision trouble -- and 7% have no natural teeth left (25% for those over 75).  There is a well documented link between oral health and our overall health, yet a study found that dental care had the highest financial barriers to care, compared to other health services.

 

If you break a bone, you'll see a doctor; if you break a tooth, you'll see a dentist.  If you have problems with your throat, you'll see a doctor; if you have problems with your gums, you'll see a dentist.  If you want to correct your vision with glasses, you'll see a optometrist; if you want to correct it with Lasik, you'll see a physician.

 

Specialization is understandable, as most physicians end up doing, but I have to wonder why some types of specialization start at the beginning of training, rather than after the basic medical training (see my previous article on balkanized medical education).

We accept all this because, well, that's the way it always has been.  That doesn't mean it makes sense, or that it is best for our health.

We each only have one body.  Although some health issues are fairly specific, we are increasingly realizing that many are systems issues involving multiple parts of the body.  It's time to stop drawing artificial distinctions between what care we get, who gives it to us, and how those professionals get trained. 

Health is not equal to health care.  Health care should not be limited to medical care.  We need to get past "historical accidents" and focus on what is best for our health, and our care.

Unless you actually do believe that all health services, and all health care professionals, are equal, but some are more equal than others.

 

This post is an abridged version of the posting in Kim Bellard’s blogsite. Click here to read the full posting

 
Friday
Mar232018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

CMS plans Medicaid 'red-tape' rollback for states

States could see less administrative burdens in the near future thanks to a proposed regulatory rollback by the Medicaid agency.

Fierce Healthcare

Friday, March 23, 2018

Graphic: Opioid Painkiller Is Top Prescription In 11 States

Americans fill about 4.5 billion prescriptions each year, at a cost of more than $323 billion. But what are we actually buying?

Kaiser Health News

Thursday, March 22, 2018

Medical Research, Drug Treatment And Mental Health Are Winners In New Budget Bill

The big budget deal reached this week in the House doesn't include a long-sought-after provision to stabilize the Affordable Care Act marketplaces. But the $1.3 billion plan, set to fund the government through September, has lots of new money for medical research, addiction treatment and mental health care.

NPR

Thursday, March 22, 2018

States Extend Medicaid For Birth Control, Cutting Costs — And Future Enrollment

The Trump administration is weighing whether to allow Texas to receive millions of federal Medicaid dollars for its family planning program, which bars abortion providers.

Kaiser Health News

Thursday, March 22, 2018

 

Highmark Health added $1B in net income in 2017 with a ‘substantial turnaround’ in ACA plans

Highmark Health’s Affordable Care Act exchange plans were profitable for the first time in 2017 as the insurer added $1 billion in net income compared to 2016. The Pittsburgh-based Blues plan that covers nearly 5 million members in Pennsylvania, West Virginia and Delaware saw significant growth in commercial and government plans, including its Medicare Advantage segment.

Fierce Healthcare

Tuesday, March 20, 2018

 

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 

 
Friday
Mar162018

National Healthcare Measures: A lot of Improvement Overshadowed By Obesity and Diabetes

National Healthcare Measures: A lot of Improvement Overshadowed By Obesity and Diabetes
 

By Clive Riddle, March 16, 2017

On this Ides of March the CDC
National Center for Health Statistics released Selected Estimates Based on Data From the January-September 2017 National Health Interview Survey with great data covering measures fifteen different selected topics. We selected a key statistic from ten of the topics to share below.

What’s striking is that despite our marked improvement in most topics during the past two decades, the percentage of persons reporting they had excellent health didn’t improve (although half a percentage point better than ten years ago, it is two percentage points lower than twenty years ago.)

The culprits in the case must be due in a large part to the fact we living large(er). Two topics below in which increasing percentages aren’t a good thing are obesity and diabetes, but increase we did. We can make policy and administrative changes that impact the percentage of people with insurance, access  care, receive vaccinations, promote exercise and promote smoking cessation. Obesity and Diabetes seem  tougher to tackle.

·         Percentage of persons without health insurance coverage: 2017  9.0% | 2007 14.5% | 1997 15.4%

·         Percentage of Persons With a Usual Place to go for Medical Care (Age adjusted):  2017  88.1% | 2007 86.5% | 1997 86.3%

·         Percentage of persons of all ages who failed to obtain needed medical care due to cost at some time during the past 12 months (Age Adjusted): 2017 4.4% | 2007 5.8% | 1997 4.5%

·         Percentage of adults aged 65+ who received an influenza vaccination during the past 12 months (Age Adjusted):  2017 70.6% | 2007 66.8% | 1997 63.1%

·         Percentage of adults aged 65 and over who had ever received a pneumococcal vaccination (Age Adjusted):  2017 69.9% | 2007 57.8% | 1997 42.6%

·         Prevalence of obesity among adults aged 20 and over (Age Adjusted):  2017 31.4% | 2007 26.6% | 1997 19.5%

·         Percentage of adults aged 18 and over who met 2008 federal physical activity guidelines for aerobic activity through leisure-time aerobic activity (Age Adjusted):  2017 54.8% | 2007 42.0% | 1997 43.3%

·         Prevalence of current cigarette smoking among adults aged 18 and over (Age Adjusted):  2017 14.3% | 2007 19.7% | 1997 24.6%

·         Percentage of persons of all ages who had excellent or very good health:  2017 66.5% | 2007 66.0% | 1997 68.5%

·         Prevalence of diagnosed diabetes among adults aged 18 and over: (Age Adjusted):  2017 8.4% | 2007 7.5% | 1997 5.3%

 
Friday
Mar162018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

The Other Opioid Crisis: Hospital Shortages Lead To Patient Pain, Medical Errors

Even as opioids flood American communities and fuel widespread addiction, hospitals are facing a dangerous shortage of the powerful painkillers needed by patients in acute pain, according to doctors, pharmacists and a coalition of health groups.

Kaiser Health News

Friday, March 16, 2018

GOP support for Obamacare stabilization grows, but abortion policy still unresolved

Congressional Republicans are growing more receptive to funding an Obamacare stabilization effort in the omnibus spending bill but remain divided over abortion restrictions.

Politico

Thursday, March 15, 2018

BCBS joins with Lyft, CVS and Walgreens in new pop health effort

The Blue Cross Blue Shield Association (BCBSA), the parent company for 36 Blues companies spread across the country, has launched the Blue Cross Blue Shield Institute to address social determinants of health (SDOH) and the influence on health and outcomes.

HealthCare Dive

Thursday, March 15, 2018

SEC charges Theranos CEO with 'massive fraud'

Elizabeth Holmes, founder and CEO of the embattled blood-testing startup company Theranos, has been charged with “massive fraud,” the Securities and Exchange Commission announced Wednesday.

The Hill

Wednesday, March 14, 2018

More than 60% of healthcare orgs saw cyberattack in past year

Cybersecurity concerns continue to hound healthcare organizations, with 62% of executives reporting a cyberattack in the past year and more than half of those losing patient data, a new Ponemon Institute survey shows.

HealthCare Dive

Tuesday, March 13, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.

 
Friday
Mar092018

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition

Friday Five: Top 5 healthcare business news items from the MCOL Weekend edition
 

Every business day, MCOL posts feature stories making news on the business of health care. Here are five we think are particularly important for this week:

 

A Health Plan ‘Down Payment’ Is One Way States Try Retooling Individual Mandate

As President Donald Trump and congressional Republicans tirelessly try to dismantle the Affordable Care Act, a number of states are scrambling to enact laws that safeguard its central provisions.

Kaiser Health News

Friday, March 9, 2018

US to Idaho: ‘State-based’ health plans don’t pass muster

Idaho’s move to let companies offer health insurance plans that don’t meet Affordable Care Act standards is illegal, U.S. officials said Thursday.

AP News

Friday, March 9, 2018

Cigna Bets on Getting Bigger as Rising Costs Vex Health Business

Under pressure to tame ever-increasing health-care costs, the companies that help millions of Americans manage their medical care are wagering that they can be stronger and simpler by joining forces.

Bloomberg

Thursday, March 8, 2018

Amazon Offers Discount Prime Membership to Medicaid Recipients

Amazon.com Inc said on Wednesday it was expanding its discounted Prime membership offer to Medicaid members, the U.S. government's health insurance program for the poor.

The New York Times

Wednesday, March 7, 2018

UnitedHealthcare to share drug rebates with 7M members; the Trump administration approves, says HHS' Alex Azar

UnitedHealthcare will offer drug rebates directly to some of its members, a move that comes as payers and pharmaceutical companies fight over who's to blame for rising drug prices. Beginning in 2019, UnitedHealthcare will expand its pharmacy discounts to about 7 million enrollees who are in fully insured commercial group plans, the insurer announced.

Fierce Healthcare

Tuesday, March 6, 2018

These and more weekly news items on the business of healthcare are featured in the MCOL Weekend edition, along with the MCOL Tidbits, and more, for MCOL Premium level members.