Wednesday, May 31, 2017

GOP senators gloomy about repeal prospects, but watch out for House repeat

By Harris Meyer  | May 30, 2017

The seeming impasse among Senate Republicans to reach an agreement on how to repeal and replace the Affordable Care Act feels like déjà vu all over again.

The question is which senator will take on Republican congressman Fred Upton's role and broker a last-minute compromise. Upton's amendment in early May brought just enough moderates and conservatives together to pass the American Health Care Act in the House.

Late last week, after the nonpartisan Congressional Budget Office walloped the House GOP replacement bill by estimating it would spike the number of uninsured Americans by 23 million, Senate Republicans wrung their hands, acknowledging it would make their repeal-and-replace efforts more difficult. Some dreaded the hostile reception they might get back home during the Memorial Day recess.

"If I had to bet my house, I'd bet we don't get it done," an unnamed GOP senator told Politico.

Even normally unflappable Majority Leader Mitch McConnell said he didn't know how his party would get the needed 50 of the 52 Senate Republicans to pass a healthcare bill under special budget reconciliation rules requiring only a simple majority (Vice President Mike Pence would provide the 51st vote to pass the bill).

McConnell's drafting group of 13 senators began writing the Senate's bill at the end of the week, even though the GOP caucus remains far from agreement on many key issues, including phasing out the ACA's Medicaid expansion, structuring premium tax subsidies, capping Medicaid spending, letting states opt out of the ACA's insurance market rules, and whether to repeal all of the ACA's taxes that finance expanded coverage.

There is also discord over whether to end funding for Planned Parenthood, which at least three Republican senators oppose.

Prominent political reporters at the New York Times, the Wall Street Journal, and Politico wrote quasi-obituaries for the Senate's struggling healthcare effort, with headlines like "GOP turns gloomy over Obamacare repeal."

But don't forget that nearly everyone had written off the chances of House Republicans passing their repeal-and-replace bill after Speaker Paul Ryan and President Donald Trump withdrew their bill without a vote in late March. Ryan declared that "Obamacare is the law of the land" for the foreseeable future. Even three days before the AHCA passed on May 4, it was dubbed "zombie Trumpcare" —a dead bill that didn't know it was dead.

Opponents of the GOP repeal-and-replace effort, including many healthcare industry groups, were lulled into complacency thinking the bill was going nowhere.

Then Rep. Upton—who a day earlier said he couldn't vote for the AHCA because it weakened protections for people with pre-existing medical conditions—proposed an amendment offering $8 billion for high-risk pools to cover otherwise uninsurable people. Critics called that a fig leaf giving more centrist GOP lawmakers cover to reverse themselves and vote for the bill; but it worked, enabling Ryan to squeak the bill through on a 217-214 vote.

The same could well happen again, ACA supporters and opponents say.

"McConnell is probably the most effective leader on the GOP side in corralling votes, and anyone underestimating his ability to bring his caucus together does so at their peril," warned Ron Pollack, chair emeritus of Families USA, who helped build support for passage of Obamacare.

"I'm betting today that you get two-thirds of the House bill through the Senate," said Tom Scully, who headed the CMS under President George W. Bush. "The odds are better than 50-50."

While there's lots of talk about relative moderates from Medicaid-expansion states, such as Ohio Sen. Rob Portman, serving as a firewall against the House bill's repeal of the Medicaid expansion, those senators have indicated they are amenable to compromises. Portman said he wants a "soft landing" for states that expanded coverage to low-income adults. He's reportedly seeking a delay of several years in the phase-out of enhanced federal funding for the expansion population.

"A delayed cut is still a cut with long-term repercussions," Pollack said. "I worry whether the moderates will provide the kind of resistance to things that will harm their constituents that they appeared to be signaling early on."

That's why pro-ACA observers fear another Upton-type surprise in the Senate, with some GOP senator proposing modest changes to give cover to moderates to vote yes on the bill, despite big coverage losses and erosions in consumer protections that they previously opposed.

"Senate moderates are going to be under the same enormous pressure moderates faced in the House," said former Democratic Senate Majority Leader Tom Daschle. "Only time will tell if they cave in a similar fashion."

Many healthcare industry leaders, particularly in insurance, are keeping a low profile while they wait to see the shape of the legislation Senate Republicans produce.

But that strategy could be risky, because the Senate bill could make a rapid recovery from intensive care. Senate GOP leaders are determined to make that happen because they must pass their healthcare overhaul first to enact permanent large tax cuts later this year.

"Doing nothing is not an option," Senate Majority Whip John Cornyn of Texas said Thursday.

Billy Wynne, a former Democratic Senate staffer and healthcare lobbyist who represents hospitals and other industry groups, advised healthcare groups to press their positions on senators as strongly as possible now.

"Don't take anything for granted," Wynne said. "You can think something is dead, but then all of a sudden it's not."

http://www.modernhealthcare.com/article/20170530/BLOG/170539997?utm_source=modernhealthcare&utm_medium=email&utm_content=20170530-BLOG-170539997&utm_campaign=am

Sodium bicarbonate shortage puts surgeries on hold

By Alex Kacik  | May 26, 2017

The country's only two suppliers of a widely used drug have nearly run out of their stock that most homes have in their kitchen cabinet—baking soda.

Hospitals use the sterile form of baking soda—a sodium bicarbonate solution, which has baking soda as its base ingredient—in vital situations including heart surgery and other emergency events when a patient's blood is too acidic, which can lead to coma and death if left unchecked. The supplier shortage has forced providers to delay surgeries and shift operations as they search for new manufacturers and treatment alternatives, healthcare experts said.

"I can't imagine, being a former pharmacy director, not having access to sodium bicarbonate," said Chris Jones, director of pharmacy automation and technology for the group purchasing organization Premier. "There is no other substitute that can work as well and quickly as that can. It truly is a life-and-death kind of drug."

Providers often stock the drug on emergency crash carts for critical-care settings during advanced cardiac life support and as an antidote to some poisons. It is also used in some types of chemotherapy.

The biggest U.S.-based drugmaker, Pfizer, which is the main manufacturer of sodium bicarbonate, said in a May 16 letter that a manufacturing issue sparked the shortage. Pfizer and the other sodium bicarbonate manufacturer, Amphastar Pharmaceuticals, expect to restock the syringes and vials by mid-August, according to the American Society of Health-System Pharmacists. That's probably the best-case scenario, healthcare officials said.

The Food and Drug Administration allowed the vetted Australian drugmaker Phebra to export vials of sodium bicarbonate to the U.S. to help alleviate the shortage, but that relief won't come for a few weeks, officials estimate.

"Pfizer apparently has an issue with their supplier of glass syringes," said Erin Fox, director of drug information at the University of Utah Health Care's drug information service. "We don't know why they only have one supplier and they don't have a backup plan. We also don't know why Pfizer didn't ramp up production of these drugs in vials if they knew they had issues with syringes."

The sodium bicarbonate shortage is one of many shortages of generic sterile injectible drugs that have plagued providers over the years, including a dwindling supply of norepinephrine. Healthcare experts say the main problem is a lack of competition, but there is no quick solution. In the meantime, regulators have asked manufacturers to give the industry more lead time to mitigate shortages through an early alert system.

"Drug shortages have been around forever, but they are getting worse and worse for generic items," Jones said.

Cleveland Clinic is in a unique position to create its own sodium bicarbonate compounds, which is a multimillion-dollar luxury most systems cannot afford, said Dr. Scott Knoer, chief pharmacy officer. The Cleveland Clinic is currently using its compounding facility, at significant time and expense, to manufacture its own sodium bicarbonate. But the clinic is not able to sell the drug to other providers due to regulatory constraints, he said.

"It's not uncommon for intensive-care patients to need sodium bicarb," Knoer said. "It's used a lot in hospitals across the country. It's a huge deal."

Premier is encouraging alternative suppliers to file abbreviated new drug applications and has group purchasing organization contracts ready to sign upon approval, the company said. It is also working with the FDA on an importation strategy and is suggesting licensed compounders to the agency to see if they can help fill the gaps.

Compounders are held to a different set of regulations than traditional pharmaceutical manufacturers, but they have received much more scrutiny since the contaminated New England Compounding Center led to a meningitis outbreak in 2012, healthcare executives said.

"We have to have more competition in the marketplace and more manufacturers making these products," said Wayne Russell, vice president of pharmacy at Premier. "This is what happens when you have one main supplier. We are lucky to have compounders that are ready to step up."

FDA Commissioner Scott Gottlieb said Thursday that he wants to accelerate the review of the agency's backlog of some 2,640 applications of generic drugs to inject competition into the marketplace and curb drug price hikes. Stock traders responded early Friday by buying stock in generic drug firms.

That policy shift could lead to more competition for sodium bicarbonate and other drugs coming through the pipeline, Russell said.

Generic drug manufacturers typically limit production to an often outdated single facility given the significant expense, which can essentially halt production in the event of equipment failure or quality control problem. Single-source drugs, or ones without generic alternatives, are largely to blame for a steady increase in annual pharmaceutical spending, research shows.

There are several measures moving through Congress that aim to reduce drug costs. Two bills, with the shorthand names CREATES Act and FAST Generics Act, target alleged anticompetitive behavior that stifles generic-drug development. The bills could curb behaviors such as preventing generic developers from accessing samples of branded products to demonstrate that a generic is equivalent and blocking access to safety protocols needed to gain federal approval. It is estimated the bipartisan FAST Generics Act would reduce drug costs by $5.4 billion a year.

"Anytime there is not enough competition, all it takes is one or two suppliers to go down, and suddenly you are in big trouble," Jones said.

Alex Kacik is the hospital operations reporter for Modern Healthcare in Chicago. Aside from hospital operations, he covers supply chain, legal and finance. Before joining Modern Healthcare in 2017, Kacik covered various business beats for seven years in the Santa Barbara, California region. He received a bachelor's degree in journalism from Cal Poly San Luis Obispo in Central California.

http://www.modernhealthcare.com/article/20170526/NEWS/170529910?utm_source=modernhealthcare&utm_medium=email&utm_content=20170526-NEWS-170529910&utm_campaign=hits

INCLUDE TOBACCO IN YOUR SPRING CLEANING!

This year include tobacco in your annual spring cleaning, and haul away those cigarette butts for good! Why? Because tobacco use is the second leading cause of death worldwide, responsible for 1 in every 10 adult deaths. If you or someone you love is ready, Medicare can help you quit smoking.
Medicare Part B covers up to 8 face-to-face counseling sessions in a 12-month period when you get them from a qualified doctor or other qualified health care provider. You pay nothing for these sessions if your doctor or other health care provider accepts assignment.
Bring out the trash bags and brooms—and make May 31, World “No Tobacco” Day, your day for a clean start.
Visit the Centers for Disease Control and the National Cancer Institute to learn more about how you can quit smoking. You can also watch our video to learn more about how Medicare can help you kick the smoking habit.

https://blog.medicare.gov/ 

The Importance of Social Security Survivors Benefits

Posted on  by 

Most people don’t like to think about death. We plan for life, for that day when we retire, for the places we’ll go and the things that we’ll do then. Unfortunately, death is a part of life we must prepare for. The death of a worker is devastating for the entire family, not only emotionally, but also financially.  
Social Security is here to help you secure today and tomorrow with financial benefits, tools, and information to help support you throughout life’s journey. Part of that promise is protection for your family when a worker dies. Some of the Social Security taxes you pay go toward survivors benefits for your family. When an income earner dies, certain members of the family may be eligible for survivors benefits, such as widows and widowers, including divorced widows and widowers; children; and dependent parents. The amount of benefits your family receives depends on your lifetime earnings. The higher your earnings are, the higher the benefits will be. The value of your survivors benefit is probably more than the value of your individual life insurance.
You can check your Social Security Statement to see an estimate of survivors benefits we could pay your family. It also shows an estimate of your retirement and disability benefits, and provides other important information. To review your Social Security Statement online, create a personal my Social Security account. Your my Social Security account is secure and gives you immediate access to your earnings records, Social Security benefit estimates, and a printable Statement.
When a worker dies, we recommend that their survivors apply for benefits right away. You can apply by telephone or at any Social Security office. For more information about survivors benefits, visit www.socialsecurity.gov/survivors. If you think you qualify, please don’t wait. Apply today.

http://blog.socialsecurity.gov/the-importance-of-social-security-survivors-benefits/ 

Two insurers pay $31 million in Medicare Advantage fraud settlement

By Maria Castellucci  | May 30, 2017

Two managed care providers — Freedom Health and Optimum Healthcare — agreed to pay $31.7 million to settle claims that they fraudulently billed the CMS through the Medicare Advantage program.

A whistle-blower lawsuit alleged the insurers submitted false claims from 2008 to 2013 in order to inflate reimbursement dollars for some of its Medicare Advantage plans, according to the Department of Justice. Freedom Health's COO Siddhartha Pagidipati has also agreed to pay $750,000 to resolve his role in the scheme.

In addition, the DOJ claims Freedom Health misrepresented the size of its network of providers in an application to the CMS in 2008 so it could expand into new counties in Florida and in other states.

The lawsuit was filed by Dr. Darren Sewell, a former Freedom and Optimum employee from 2007 to 2012.

Both Freedom Health and Optimum are owned by America's 1st Choice Holdings of Florida, a holding company.

Freedom Health wasn't available for a request for comment Tuesday evening.

Acting U.S. Attorney for the Middle District of Florida Stephen Muldrow said in a statement that the settlement underscored his office's commitment to combatting healthcare fraud, and noted Medicare Advantage's increasing importance in the overall healthcare industry.

The DOJ has made efforts in recent years to highlight overbilling and fraud among Medicare Advantage plans. The federal government has joined two lawsuits against United Health Group alleging fraud in the Medicare Advantage program. The agency is also investigating Aetna, Health Net, Humana and Cigna's Bravo Health to determine if they have been engaging in medical upcoding.

Under the Medicare Advantage program, the government pays private health plans more for sicker members. These risk scores were created to incentivize plans to cover all seniors regardless of their health status, but there have been several whistle-blower lawsuits in recent years that allege health plans have been inflating the scores to collect more funds.

The DOJ's settlement with Freedom Health and Optimum marks one of the few cases that have been resolved.


Maria Castellucci is a general assignment reporter covering spot news for Modern Healthcare’s website and print edition. She writes about finances, acquisitions and other healthcare topics in markets across the country. Castellucci is a graduate of Columbia College Chicago and started working at Modern Healthcare in September 2015

http://www.modernhealthcare.com/article/20170530/NEWS/170539989?utm_source=modernhealthcare&utm_medium=email&utm_content=20170530-NEWS-170539989&utm_campaign=am

New Medicare cards offer greater protection to more than 57.7 million Americans

Department of Health & Human Services
Centers for Medicare & Medicaid Services
Room 352-G
200 Independence Avenue, SW
Washington, DC  20201 _______________________________________________________________________

CMS NEWS

FOR IMMEDIATE RELEASE
May 30, 2017
Contact: CMS Media Relations
(202) 690-6145 | CMS Media Inquiries
New Medicare cards offer greater protection to more than 57.7 million Americans
New cards will no longer contain Social Security numbers, to combat fraud and illegal use
The Centers for Medicare & Medicaid Services (CMS) is readying a fraud prevention initiative that removes Social Security numbers from Medicare cards to help combat identity theft, and safeguard taxpayer dollars. The new cards will use a unique, randomly-assigned number called a Medicare Beneficiary Identifier (MBI), to replace the Social Security-based Health Insurance Claim Number (HICN) currently used on the Medicare card. CMS will begin mailing new cards in April 2018 and will meet the congressional deadline for replacing all Medicare cards by April 2019. Today, CMS kicks-off a multi-faceted outreach campaign to help providers get ready for the new MBI.
“We’re taking this step to protect our seniors from fraudulent use of Social Security numbers which can lead to identity theft and illegal use of Medicare benefits,” said CMS Administrator Seema Verma. “We want to be sure that Medicare beneficiaries and healthcare providers know about these changes well in advance and have the information they need to make a seamless transition.”  
Providers and beneficiaries will both be able to use secure look up tools that will support quick access to MBIs when they need them. There will also be a 21-month transition period where providers will be able to use either the MBI or the HICN further easing the transition
CMS testified on Tuesday, May 23rd before the U.S. House Committee on Ways & Means Subcommittee on Social Security and U.S. House Committee on Oversight & Government Reform Subcommittee on Information Technology, addressing CMS’s comprehensive plan for the removal of Social Security numbers and transition to MBIs.
Personal identity theft affects a large and growing number of seniors. People age 65 or older are increasingly the victims of this type of crime. Incidents among seniors increased to 2.6 million from 2.1 million between 2012 and 2014, according to the most current statistics from the Department of Justice. Identity theft can take not only an emotional toll on those who experience it, but also a financial one: two-thirds of all identity theft victims reported a direct financial loss. It can also disrupt lives, damage credit ratings and result in inaccuracies in medical records and costly false claims.
Work on this important initiative began many years ago, and was accelerated following passage of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). CMS will assign all Medicare beneficiaries a new, unique MBI number which will contain a combination of numbers and uppercase letters. Beneficiaries will be instructed to safely and securely destroy their current Medicare cards and keep the new MBI confidential. Issuance of the new MBI will not change the benefits a Medicare beneficiary receives.  
CMS is committed to a successful transition to the MBI for people with Medicare and for the health care provider community. CMS has a website dedicated to the Social Security Removal Initiative (SSNRI) where providers can find the latest information and sign-up for newsletters. CMS is also planning regular calls as a way to share updates and answer provider questions before and after new cards are mailed beginning in April 2018.
For more information, please visit: https://www.cms.gov/medicare/ssnri/index.html

As It Sorts RFI Responses, CMS Considers MA Plan Flexibilities

By Lauren Flynn Kelly - May 25, 2017
In the 2018 final payment notice and Call Letter issued last month, CMS threw in an unusual request for information (RFI) soliciting ideas on ways it can bring more transparency, flexibility, program simplification and innovation to the Medicare Advantage and Part D programs. The agency has received more than 130 responses from a variety of stakeholders and is beginning the process of analyzing the pros and cons of the many suggestions and what they require in terms of subregulatory/regulatory guidance and statutory changes, according to Demetrios Kouzoukas, who was recently appointed principal deputy administrator and director with the Center for Medicare.
During a keynote address given at the Medicare Advantage and Prescription Drug Plan Spring Conference, held May 10 in Baltimore, Kouzoukas emphasized CMS’s interest in collaborating with plans to bring more innovation and flexibility to the MA program and encouraged plans to take advantage of the flexibilities that currently exist in tailoring their services for beneficiaries.
He said the comments received by CMS can be broken into three general categories and offered several examples for each:
1.     Streamlining and improving CMS’s oversight and management of plans. For example, commenters urged CMS to reconsider the way it provides subregulatory guidance and adopt a “more coordinated process” to communicating guidance that could involve frequent updates to the manuals and fewer notices sent via the Health Plan Management System.
2.     Enhancing the beneficiary plan selection process. “Our focus is to improve the visibility of the beneficiaries in the Medicare program to identify the best options for them,” stated Kouzoukas. He said CMS received suggestions on streamlining the marketing materials process and developing more beneficiary-friendly materials, implementing paperless marketing and comparing MA options with fee for service. “These are all really fascinating ideas,” he remarked. “I assure you we’re working diligently on a lot of these proposals.”
3.     Innovating program design to provide options in improving care. Suggestions were provided around “modernizing” the risk adjustment model, payment methodologies and coding guidelines — “Obviously an important area,” he said, although revisions may require statutory change — and expanding benefit flexibilities in MA around uniform benefits, telehealth and network adequacy. CMS also received recommendations around providing greater flexibility in Part D to manage costs, including the expansion of Part D network flexibilities and changes to any willing pharmacy rules.
In addition to considering these and other potential enhancements to the program, Kouzoukas said CMS is establishing a working group “to identify critical issues in processing encounter data.” After receiving extensive comments from plans and other stakeholders on its proposal to keep the same blend of encounter data system and risk adjustment payment system scores in determining risk-adjusted reimbursement, CMS in the final rate notice scaled back the use of 25% EDS to just 15% for 2018. The agency is working to ensure that its internal operations are functioning effectively so that it can process plan submissions accordingly, asserted Kouzoukas. “We do intend to ensure that encounter data is a fully robust system and that we have the ability to collect complete and accurate data,” he stated.
https://aishealth.com/blog/medicare-advantage-and-part-d/it-sorts-rfi-responses-cms-considers-ma-plan-flexibilities?utm_source=Real%20Magnet&utm_medium=Email&utm_campaign=112531739

Insurers continue to hike prices, abandon ACA markets

Tuesday, May 30, 2017

By TOM MURPHY ~ Associated Press

People shopping for insurance through the Affordable Care Act in more regions could face higher prices and fewer choices next year as insurance companies lay out their early plans for 2018.
Blue Cross and Blue Shield of North Carolina is asking regulators for a 23 percent price hike next year because it doesn't expect crucial payments from the federal government to continue.
That announcement comes after Blue Cross and Blue Shield of Kansas City said it will leave the individual insurance market next year, a decision that affects about 67,000 people in a 32-county area in Kansas and Missouri.
The Kansas City company's decision will leave shoppers in 25 counties with no options for coverage sold on public insurance exchanges unless another insurer steps in, according to data compiled by The Associated Press and the consulting firm Avalere.
The law's insurance exchanges are the only place people can buy coverage with help from an income-based tax credit.
Other insurers around the country, such as Aetna and Humana, have said they will not offer coverage on exchanges next year, though several, including Centene, said they will.
Options are growing thin in many markets. The Kansas City insurer's decision means only 10 of Missouri's 115 counties will have more than one insurer selling coverage on the exchange next year.
Blue Cross and Blue Shield of North Carolina sells coverage in all 100 North Carolina counties, and it is the lone option in 95. It said last week its participation for next year is not guaranteed.
Insurers still have a couple of months to consider their options before finally committing to selling coverage in 2018.
The North Carolina insurer said it expects no help from federal cost-sharing reduction payments next year, and that's reflected in its initial rate request that calls for a 23 percent price increase, on average.
If it could be assured of the subsidies that are part of the law and have been paid in the past, it said prices would rise about 9 percent. The insurer covers more than 460,000 people who bought coverage on the exchange.
It said about two-thirds of those customers get cost-sharing help, but the price increase for providing insurance without this help will be spread over all of its customers in that market.
"Many ACA customers will pay more for coverage that is already a large portion of their household income," said Brian Tajlili, director of actuarial and pricing services for the insurer.
The government has been giving insurers money to help customers with modest incomes cover out-of-pocket expenses such as co-payments and deductibles. But the future of those payments, which are separate from the income-based tax credits that help people buy coverage, is in political limbo.
Republicans had sued the Obama administration to stop the subsidies, and that case is tied up in court. President Donald Trump's administration has sent mixed signals over how it will pursue the case or whether the payments will continue. Insurers want some assurance the payments, which total about $7 billion, will continue through 2018.
Tajlili said his company wants to see some sort of a legal guarantee, such as Congress appropriating the money, to feel comfortable the payments will be made through 2018.
Some of the biggest companies on the exchanges have not announced their coverage plans for next year. Those include Anthem Inc., which covers more than 1 million people through Affordable Care Act exchanges, offering Blue Cross-Blue Shield insurance in large states like New York, California and Ohio.
Many insurance companies have faced large financial losses selling this type of insurance and have responded by raising prices or abandoning that kind of coverage altogether. Blue Cross and Blue Shield of North Carolina said earlier this year it lost $38 million on ACA plans last year and more than $400 million between 2014 and 2015.

UnitedHealth and Merck strike a deal to explore linking payments to drug performance

Thursday, 25 May 2017 | 2:00 PM ETCNBC.com
UnitedHealth Group's Optum unit has signed a multiyear agreement with Merck to develop a better way to reimburse drugmakers based on how well their drugs improve a patient's health.
"The aim is to identify opportunities where we can align value and payment," on high-cost treatments, said Curt Medeiros, president of Optum Life Sciences. "There's a lot of focus on high-cost specialty areas like oncology, but also in chronic conditions that affect a broad set of the population like diabetes."
UnitedHealth and other insurers have been pushing hospitals and doctors toward new value-based reimbursement contracts for more than five years. In the last 18 months, the health insurance industry has begun to focus more on new payment deals with drugmakers to enter outcomes-based risk sharing agreements, or OBRSAs.
Medicare plan provider Humana has more than a dozen agreements with pharmaceutical companies covering nearly two dozen drugs. Aetna announced a deal with Merck earlier this year. Cigna, Humana and others have deals in place with Swiss drugmaker Novartis for its high-cost heart drug Entresto.
UnitedHealth is targeting signing another five to 10 outcomes-based deals this year.
"The level of interest in our pharma and our biotech clients has increased significantly, so the amount of opportunities out there has really grown," said Medeiros. "Cost pressure ... is probably the largest driver."
While the future of federal funding for health programs like Medicaid remains up for debate in Congress, one thing is clear — the health industry is going to come under greater pressure to lower costs. And rising specialty-drug prices have put pharmaceutical companies in the crosshairs of private payers and the government.
President Donald Trump has said he would like to see federal programs such as Medicare have the ability to negotiate lower drug prices. It is an issue that has seen some bipartisan support. For the pharmaceutical industry, OBRSAs could be a way to get out in front of potential drug-price controls.
"The collaboration between Merck and Optum will help advance both organizations' common goals of improving patient health outcomes, expanding access to innovative therapies, and ensuring the best use of health care spending," said Susan Shiff, senior vice president at Merck, in the companies' announcement.
The actual returns on the program could still be years away, but UnitedHealth and Merck say they will share their data publicly with others in the industry to develop better payment models.
"The ability to drive down the cost — ultimately to the consumer — is the long-term objective," said Medeiros. "How much, at this time, we don't know."
http://www.cnbc.com/2017/05/25/unitedhealth-merck-to-explore-linking-payments-to-drug-performance.html

Quote of the Day

"We really shouldn't be relying on the market to drive millennials into our arms. Essentially, the bottom line is [payers] need to find some value in their plans to attract millennials. Just having a low price is not going to do it."

— John Rudoy, a principal at Oliver Wyman, tells Health Plan Week

1,886,000 ...

... is the number of commercial individual market lives enrolled in Anthem, Inc., the U.S. individual market leader. Following closely is Centene Corporation, whose 2016 acquisition of Health Net, Inc. more than quadrupled its individual enrollment figure from last year.

Tuesday, May 30, 2017

Medicare to cover supervised exercise for heart disease

By Virgil Dickson  | May 30, 2017

Following a request from cardiologists, the CMS now will offer national Medicare coverage of supervised exercise therapy for the treatment of peripheral artery disease.

The agency said in a coverage decision released Thursday that research has shown supervised exercise therapy can help alleviate common symptoms of the cardiovascular disease, including pain and discomfort in a patient's legs.

Peripheral artery disease occurs when plaque buildup narrows the arteries outside the heart. It affects 12% to 20% of Americans age 60 and older, and the incidence of the disease increases considerably with age.

Without exercise, individuals with peripheral artery disease could see their condition worsen to the point they lose functional independence.

"Medicare beneficiaries, a significant portion of which have peripheral artery disease will benefit considerably from participating in supervised exercise therapy sessions," American Heart Association CEO Nancy Brown said in a statement. "Evidence shows this therapy can improve quality of life for patients and enhance clinical outcomes."

Supervised exercise is a non-invasive treatment option, which can alleviate leg pain during exercise and improve a patient's walking distance, according to the American Heart Association.

Medicare will now cover a series of exercise sessions lasting up to 60 minutes and involve use of either a treadmill or a track. Each session is supervised by an exercise physiologist or a physical therapist or a nurse.

While there are plenty of studies that highlight the benefits of supervised exercise for these patients, a 2015 study in the American Heart Journal found that supervised exercise for these patients did not lead to a noticeable improvement in quality of life.

"Given the current lack of evidence that [supervised exercise] improves quality of life … further evidence may be needed before reimbursement policies for supervised exercise will be reconsidered," the study read.

Virgil Dickson reports from Washington on the federal regulatory agencies. His experience before joining Modern Healthcare in 2013 includes serving as the Washington-based correspondent for PRWeek and as an editor/reporter for FDA News. Dickson earned a bachelor's degree from DePaul University in 2007.

http://www.modernhealthcare.com/article/20170530/NEWS/170539995?utm_source=modernhealthcare&utm_medium=email&utm_content=20170530-NEWS-170539995&utm_campaign=financedaily

Johns Hopkins All Children’s Hospital at an impasse with United Healthcare

May 30, 2017, 3:02pm EDT Updated May 30, 2017, 4:38pm EDT
Margie Manning Finance EditorTampa Bay Business Journal

Talks have stalled in the first contract renegotiation in more than five years between Johns Hopkins All Children’s Hospital and UnitedHealthcare, and more than 10,000 pediatric patients are feeling the impact.
As of May 11, the contract was terminated between UnitedHealthcare and Johns Hopkins All Children’s, said Dr. Jonathan Ellen, hospital president.

The insurer now considers hospital-based services and physician services at Johns Hopkins All Children’s as out of network, and is telling insured families — including UnitedHealthcare members who are employed by the city of St. Petersburg, Raymond James Financial (NYSE: RJF), Pinellas County including the school system, Wells Fargo (NYSE: WFC), Walgreens, Walmart, Ceridian and Charter Communications (formerly Bright House Networks) — that if they want the kind of specialized services the St. Petersburg hospital provides, they have to go to Orlando or elsewhere outside the region, Ellen said.

Any UnitedHealthcare member in active treatment for a serious medical condition with an All Children’s physician may qualify for Continuity of Care, which enables them continued in-network coverage for their medical care at All Children’s, according to a statement from the insurer, which is part of UnitedHealth Group Inc. (NYSE: UNH). Applications for Continuity of Care are due by June 9, the insurer said.
UnitedHealthcare will continue to cover trauma and emergency-related services at a member’s in-network benefit level, the statement said.

The contract termination follows Johns Hopkins All Children’s efforts to get large insurers “to pay their fair share of expenses” to cover the investments the hospital has been making as it builds itself into a preeminent system for children needing care in the region and in Florida, Ellen said. Those investments include a new research and education building and new surgeons and physician specialists, he said.

All Children’s is paid competitive rates that are in line with other specialty hospitals in the St. Petersburg area, UnitedHealthcare's statement said.

The hospital opened negotiations with United Healthcare in the fall, initially asking for a 60 percent increase in rates, which Ellen said was below market cost for services. While Johns Hopkins All Children’s has since come down to a 35 percent proposed increase, United Healthcare has not been willing to go higher than 20 percent, Ellen said.

A 20 percent rate increase will ensure Johns Hopkins All Children’s is paid competitively and is able to cover the cost of services, while ensuring the thousands of local employers who pay the cost of their employees’ medical bills themselves do not experience an unsustainable surge in their health care budget, UnitedHealthcare's statement said.

Rates are only part of the negotiation, UnitedHealthcare said. The hospital wants a contract that excludes "value-based care" or reimbursement that is tied to performance or quality measures, the insurer said.

The last time the two sides sat down at the table together, United Healthcare offered to increase their rate offering by up to 3 percent more, if reimbursements could be tied to quality metrics, said Sylvia Ameen, vice president for marketing, communications and culture at Johns Hopkins All Children's. While there are established quality metrics in adult medicine that are tied to Medicare, such measures don't exist in the pediatric world, and few other children's hospitals have agreed to that kind of provision in a contract with United Healthcare, Ameen said.

Johns Hopkins has launched what is being described as an aggressive campaign to shed light on the issue.

“We hope families will contact United Healthcare and tell them to go back to negotiate, and get John Hopkins All Children’s back in network,” Ellen said.

About 30 percent of the hospital’s patients are covered by commercial insurance, and of those, 20 percent are covered by United Healthcare, he said. The remaining 70 percent of patients are covered by Medicaid.

But about 30 percent to 40 percent of revenue comes from Medicaid and the rest from commercial insurers, he said.

Johns Hopkins All Children’s executives have talked to other commercial insurers about rate hikes and “in general, they are much more receptive,” Ellen said. No insurer is paying more than market cost, he said.

Other children's specialty hospitals in the Tampa Bay area that are in network are Children's Medical Center at Tampa General Hospital, St. Joseph's Children's Hospital in Tampa and Shriners Hospital for Children in Tampa, UnitedHealthcare said.

Margie Manning is Finance Editor of the Tampa Bay Business Journal. She covers the Money beat.
http://www.bizjournals.com/tampabay/news/2017/05/30/johns-hopkins-all-children-s-hospital-at-an.html?surround=etf&u=PRc34AX1zS5mAFiGSVyIWw08d609d7&t=1496177069&j=78275911

New Medicare cards offer greater protection to more than 57.7 million Americans

CMS NEWS

FOR IMMEDIATE RELEASE
May 30, 2017
Contact: CMS Media Relations
(202) 690-6145 | CMS Media Inquiries


New Medicare cards offer greater protection to more than 57.7 million Americans
New cards will no longer contain Social Security numbers, to combat fraud and illegal use  

The Centers for Medicare & Medicaid Services (CMS) is readying a fraud prevention initiative that removes Social Security numbers from Medicare cards to help combat identity theft, and safeguard taxpayer dollars. The new cards will use a unique, randomly-assigned number called a Medicare Beneficiary Identifier (MBI), to replace the Social Security-based Health Insurance Claim Number (HICN) currently used on the Medicare card. CMS will begin mailing new cards in April 2018 and will meet the congressional deadline for replacing all Medicare cards by April 2019. Today, CMS kicks-off a multi-faceted outreach campaign to help providers get ready for the new MBI.

“We’re taking this step to protect our seniors from fraudulent use of Social Security numbers which can lead to identity theft and illegal use of Medicare benefits,” said CMS Administrator Seema Verma. “We want to be sure that Medicare beneficiaries and healthcare providers know about these changes well in advance and have the information they need to make a seamless transition.”  

Providers and beneficiaries will both be able to use secure look up tools that will support quick access to MBIs when they need them. There will also be a 21-month transition period where providers will be able to use either the MBI or the HICN further easing the transition

CMS testified on Tuesday, May 23rd before the U.S. House Committee on Ways & Means Subcommittee on Social Security and U.S. House Committee on Oversight & Government Reform Subcommittee on Information Technology, addressing CMS’s comprehensive plan for the removal of Social Security numbers and transition to MBIs.

Personal identity theft affects a large and growing number of seniors. People age 65 or older are increasingly the victims of this type of crime. Incidents among seniors increased to 2.6 million from 2.1 million between 2012 and 2014, according to the most current statistics from the Department of Justice. Identity theft can take not only an emotional toll on those who experience it, but also a financial one: two-thirds of all identity theft victims reported a direct financial loss. It can also disrupt lives, damage credit ratings and result in inaccuracies in medical records and costly false claims.

Work on this important initiative began many years ago, and was accelerated following passage of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). CMS will assign all Medicare beneficiaries a new, unique MBI number which will contain a combination of numbers and uppercase letters. Beneficiaries will be instructed to safely and securely destroy their current Medicare cards and keep the new MBI confidential. Issuance of the new MBI will not change the benefits a Medicare beneficiary receives.  

CMS is committed to a successful transition to the MBI for people with Medicare and for the health care provider community. CMS has a website dedicated to the Social Security Removal Initiative (SSNRI) where providers can find the latest information and sign-up for newsletters. CMS is also planning regular calls as a way to share updates and answer provider questions before and after new cards are mailed beginning in April 2018.

For more information, please visit: https://www.cms.gov/medicare/ssnri/index.html