Health Care Financing Reform in the United States

Similar documents
ACA in Brief 2/18/2014. It Takes Three Branches... Overview of the Affordable Care Act. Health Insurance Coverage, USA, % 16% 55% 15% 10%

Prescription Drugs Spending Distribution and Cost Drivers. Steve Kappel January 25, 2007

Coverage Expansion [Sections 310, 323, 324, 341, 342, 343, 344, and 1701]

Status: Time: 12:00 pm. Date: 3/19/10

More Than One-Quarter of Insured Adults Were Underinsured in 2016

2012 Physician Quality Reporting Measures Groups Specifications Manual Release Notes 11/10/2011

MN DEPARTMENT OF HEALTH PROVIDER PEER GROUPING (PPG) ADVISORY GROUP DEFINING PARAMETERS ANN ROBINOW

2014 Physician Quality Reporting System (PQRS) Measures Groups Specifications Manual Release Notes 12/13/2013

Improving the Mind, Body, and Spirit of Texans. Kevin C. Moriarty, President & CEO Methodist Healthcare Ministries April 2010

2014 Physician Quality Reporting System (PQRS) Measures Groups Specifications Manual Release Notes 01/23/2014

Value-Based Insurance Design

Risk Adjusted Episodes as Benchmarks for ACOs: A Society of Actuaries Sponsored Study

Disease Management Initiative. Legislative Authorization. Program Objectives

AFFORDABLE CARE ACT. And the Aging Population Jan Figart, MS & Laura Ross-White, MSW. A Sign of the Times: Health Trends and Ethics

Shifting the Self-Pay Patient Paradigm: The Economic Management of the Patient Responsibility

Bundled Payment: Practicalities, Contractual and Governance Issues

Health Reform Summary March 23, 2010

This Morning s Topics

Health Reform and NACo Policy

HealthStats HIDI A TWO-PART SERIES ON WOMEN S HEALTH PART ONE: THE IMPORTANCE OF HEALTH INSURANCE COVERAGE JANUARY 2015

National Healthcare Reform Patient Protection and Affordable Care Act (HR 3590) & The Health Care and Education Reconciliation Act (HR 4872)

STATE MUTUAL INSURANCE COMPANY OUTLINE OF COVERAGE SPECIFIED DISEASE INSURANCE

Update on Implementation of the Affordable Care Act

Implementing the Patient Protection and Affordable Care Act in Your Practice

Provision Description Implementation Date Establishing a Patient Centered Outcomes Research Institute Excluding from Income Health Benefits Provided

2013 Physician Quality Reporting System (PQRS) Measures Groups Specifications Manual Release Notes

Health Reform HEALTH REFORM IMPLEMENTATION TIMELINE

Medicare at 50. R. B. Drennan, PhD Associate Professor Fox School of Business Temple University 28 January 2016

Healthcare Financial Management Association Certification Program. Module I: The Business of Health Care Learner s Guide

Stuart H. Altman. The Changing Health Care System: Economic Forces Pushing States To Become More Involved

Kalpana Thakur, M.D. PA Registration Form

ACOs/Shared Savings Demonstration Project: What Does It All Mean?

Health Reform Implementation Timeline

Value-Based Payments (VBP)

Cardiac Bundle (AMI, CABG, and SHFFT), CR and ACO Track 1+ January 11, 2017

I. PLAN DESCRIPTIONS. A. POS Point of Service

US Healthcare Reform Anticipated Benefits and Challenges

State and Federal Health Care Reform in Alameda County:

Health Care Reform in the United States

Value Based Payment 101

THE FUTURE OF HEALTHCARE: TRENDS THAT WILL AFFECT YOUR PROFESSIONAL AND PERSONAL LIFE

The Case For Value ACA to MACRA to MIPS

Payment Reform in Support of Population Health Management

Health Economics and Financing

Risk Contracting: What to Know About Stop Loss Insurance KATHRYN A BOWEN, EXECUTIVE VICE-PRESIDENT OCTOBER 27, 2016

04/12/2016 C H A L L E N G E S F A C I N G U N I T E D S T A T E S H E A L T H C A R E S Y S T E M

PQRS and erx Incentive Program Updates. Julie Orton Van, CPC, CPC-P, CEMC 2013 AAPC Regional Conference Orlando, FL

Chapter 1: A Distinctive System of Health Care Delivery

A Path to Accountable Care Organizations: How Do We Get From There to Here? Financial Considerations for Accountable

Health Care Reform Update

UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT, SIXTH EDITION Louis C. Gapenski and George H. Pink Healthcare Reform Update (November 2010)

Strategic Purchasing of Medical Devices

Bundled Payment: Practicalities, Contractual and Governance Issues

The Affordable Care Act: Opportunities to Influence Implementation

The Value of the Local Healthcare System on the Jefferson County Economy

Why does rural need reform?

No An act relating to health care financing and universal access to health care in Vermont. (S.88)

Jackie Prokop, RN, MHA Director Program Policy Division Medical Services Administration Michigan Department of Health and Human Services

Paying providers to increase Value for Money: Is Pay for Performance the Answer? Review of OECD experience

Implications of Healthcare Reform for Local Communities

The HPfHR 3-Tier System

January 1, State Notification Regarding Exchanges

UnitedHealthcare Choice Plus. United HealthCare Insurance Company. Certificate of Coverage

Predictive Analytics and Technology Session

The Value of the Local Healthcare System on the Harrison County Economy

The Value of the Local Healthcare System on the Lyon County Economy

In This Issue (click to jump):

Controlling Healthcare Costs through Innovative Methods - Analytics

Health Care and Texas:

REFERENCE GUIDE HOW-TO HANDBOOK

How Bundled Payments Create Value in New Product Designs Cognizant

The Center for Hospital Finance and Management

Health Care in California: The Chronically Ill

Population Health and Wellness: 2 Stories from Cleveland Clinic. Elizabeth Sump Senior Director, Health Policy Cleveland Clinic

Affordable Care Act Affordable Care Act

Health Insurance (Chapters 15 and 16) Part-2

This sample includes the instructor s manual section and PowerPoint slides for chapter 1, The Rise of Medical Expenditures.

Why would I need the CMM Plan?

5/5/2014. The Affordable Care Act* 45 th Annual WMSHP Spring Seminar. The Affordable Care Act (ACA) March 23,2010

Building Actuarial Cost Models from Health Care Claims Data for Strategic Decision-Making. Introduction. William Bednar, FSA, FCA, MAAA

STRATEGIES FOR MANAGING HEATH PLANS THROUGH A CHALLENGING ECONOMY

September 6, Re: CMS-1600-P; CY 2014 Physician Fee Schedule Proposed rule comments

DHCFP. Provider Payment: Trends and Methods in the Massachusetts Health Care System

Medicare supplement (Medigap) plan application

Healthcare Reform. North Carolina Dietetic Association September 12, Duke Medicine

How Health Reform Saves Consumers and Taxpayers Money

Public and Private Payer Responses to Pharmaceutical Pricing in the United States

Correcting for the 2007 MEPS Discontinuity in Medical Condition Spending and Treated Prevalence

Overview of the Patient Protection and Affordable Care Act (ACA) Steven Abramson, Marketing Manager Community Health Alliance of Pasadena

Sarah Jacobson NC Government Relations Director, American Heart Association

What Risk Adjustment Looks Like Today

Health Care Reform: Chapter Three. The U.S. Senate and America s Healthy Future Act

MANAGEMENT S DISCUSSION OF FINANCIAL AND OPERATING PERFORMANCE

Health Care Economics. David M. Cutler September 28, 2016

GLOSSARY. MEDICAID: A joint federal and state program that helps people with low incomes and limited resources pay health care costs.

City of Los Angeles Periodic Utilization Report 3rd Quarter 2017 (10/1/2016 9/30/2017)

Solely the opinions of Jeffrey Selevan, MD

Using Analytics To Transform Your ACO

Temporary Insurance Plans Quick Guide

MDwise Annual IHCP Seminar. Exclusively serving Indiana families since 1994.

Transcription:

Health Care Financing Reform in the United States Richard M. Scheffler,, PhD Distinguished Professor of Health Economics and Public Policy Director of the on Healthcare Markets and Consumer Welfare University of California at Berkeley Hong Kong, Hospital Authority Convention 2011 June 8 th, 2011 1 1

2

National Health Expenditures: Comparing NHE and GDP Growth for selected time periods Health care spending has exceeded overall economic activity in every recent decade which means it takes up an ever-increasing slice of the Source: overall Centers for economy Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group, at http://www.cms.hhs.gov/nationalhealthexpenddata/ (seehistorical;nhesummaryincludingshareofgdp,cy1960-2005;filenhegdp05.zip). 3

4

United States Health Care System Medicare Covers 65+ years old Medicaid State-run Covers individuals at the poverty level Employer-paid private health insurance 5 5

Who is not covered? 15-20% of the population (45-50 million) Under 65 years of age Self-employed Small firm employees (<50) Undocumented individuals 6 6

Patient Protection and Affordable Care Act Health insurance requirement mandate Required to buy or penalized Covers 70% of uninsured (35 million) Under 65 years of age Excludes: Undocumented individuals Abortion 7 7

Patient Protection and Affordable Care Act State-based American Health Benefit Exchanges Subsidy (133-400% of federal poverty level) Separate Exchanges for small businesses Private Insurance 8 8

Financing Medicare from 1.45% to 2.35% 3.8% of unearned income Cadillac plan tax moral hazard exceed $10,200 individuals exceed $27,500 families Excise profits tax Private health insurance companies Pharmaceutical companies 9 9

Improving Health System Patient-Centered Outcomes Research Institute National Medicare pilot program Independence at Home demonstration program Medicare value-based purchasing program 10 10

Improving Health System Increase Medicaid payments States to receive 100% federal financing 10% bonus payment to primary care physicians 11 11

Prevention and Wellness Preventive Services and Community Preventive Services Evidence-based and community-based prevention and wellness services 12 12

Long-Term Care CLASS Act National, voluntary insurance program Community living assistance 5-year vesting period Average $50 or more per day (non-medical) 13 13

Workforce Increase workforce Scholarships and loans Training and capacity building State grants to underserved areas Train and recruit in rural areas Public health workforce loan repayment program Mental and behavioral health training programs 14 14

Current Payments Fee-for-service payment DRG Capitation Concerns: Over use; Under use Risk adjustment Perceived problems with financial risks 15

Proposed Payment Bundled payment systems ( case rates or episode-based payment) Middle ground between fee-for-service and capitation Make single payment Multiple providers and settings Example: coronary artery bypass graft 16

How it works Bundle payment by services Bundle payment for all services Bundle services related to hospitalization 17

Has it been tried before? Medicare Participating Heart Bypass Center Medicare Cataract Alternative Payment Private sector initiatives knee and shoulder arthroscopic surgery CABG surgery 18

Total expenses for selected conditions by type of service: US, 2005 Conditions Hospital Outpatient or Office-Based Hospital Inpatient Stays Emergency Room Visits Prescribed Medicines Home Health Total Heart conditions 12,671.88 48,413.53 2,874.45 8,168.45 4,363.53 76,491.84 Trauma-related disorders 26,979.29 29,913.04 9,537.30 1,592.18 4,430.03 72,451.84 Cancer 33,559.39 29,923.19 519.11 3,365.76 2,310.61 69,678.05 Mental disorders 16,253.92 8,228.19 816.99 23,902.56 6,763.95 55,965.61 COPD, asthma 12,045.09 13,665.46 2,756.21 17,850.79 7,497.78 53,815.33 Hypertension 10,073.01 5,919.88 662.01 22,937.04 2,687.93 42,279.86 Diabetes mellitus 10,347.87 5,385.30 245.86 15,241.92 3,067.42 34,288.36 Osteoarthritis and other nontraumatic joint disorders 12,050.16 11,175.74 257.99 6,836.76 3,918.02 34,238.67 Back problems 17,598.68 8,834.78 728.77 3,957.72 1,367.82 32,487.77 Normal birth/live born 7,871.03 23,526.98 606.11 281.69 30.21 32,316.01 Kidney disease 14,633.31 12,829.51 1,265.82 1,761.44 595.4 31,085.48 Disorders of the upper GI 5,349.87 7,535.37 788.94 11,597.64 772.2 26,044.03 Hyperlipidemia 5,851.14 427.59 17.92 17,295.31 384.71 23,976.67 Skin disorders 6,965.23 10,717.62 514.68 3,127.09 2,370.60 23,695.22 Other circulatory conditions arteries, veins and lymphatics 5,380.38 12,275.86 243.48 1,611.52 1,392.01 20,903.25 Source: Agency for Healthcare Research and Quality. Medical Expenditure Panel Survey Component Data 19

An accountable care organization (ACO) is a type of payment and delivery reform model that starts to tie provider reimbursements to quality metrics and reductions in the total cost of care for an assigned population of patients. 20