Archive for the 'Affordable Care Act' Category

Final rule for consumer disclosure rules announced

Last week, the U.S. Department of Health and Human Services (HHS) unveiled its highly anticipated final rule detailing required consumer-friendly benefit summaries and cost comparison tools, as required under Section 2715 of the Affordable Care Act. It is expected that more than 160 million Americans with private health insurance will receive the forms. The goal of the final rule is to set the design for easy-to-understand forms describing health insurance benefits in plain-English terms, with an accompanying standardized glossary. All carriers offering group and individual plans, along with group health plans must supply these documents “when shopping for coverage, enrolling in coverage, at each new plan year, and within seven business days of requesting a copy from their health insurance issuer or group health plan.” Requiring that benefit summaries use a single standard format will help consumers make an “apples to apples” comparison among health plans and result in more informed health plan choices.

Although the health system overhaul itself continues to divide the public, a major poll last year found that 84 percent of Americans support these benefit summaries. The general compliance effective date for both carriers and health plans is September 23, 2012, which is a change from the March 23, 2012 date in the proposed rule. Many carriers were concerned that the earlier date would not give enough time to implement the requirements, which likely includes extensive changes to current IT systems. The September date gives carriers more time for system updates, while giving consumers the new information in time for the popular fall annual open enrollment periods.

Another change from the proposed rule is that enrollee-specific premium amounts are not required as part of the benefit summaries. This is due in part to the large administrative burden required to provide such information that may change throughout the enrollment process.

The final rule continues to require large employer plans, including self-funded plans, to be subject to the requirements, despite heavy push-back from large employers insisting that their plans already supply employees with the benefit summaries they need. The law also requires the forms to give examples of specific coverage explaining how much a plan pays on average for common medical conditions. The initial two medical conditions chosen by HHS are pregnancy and type 2 diabetes. Over time, HHS plans to require four additional coverage examples be included in the forms.

HHS Press Release

Template for the Summary of Benefits and Coverage and Glossary

Final Rule Text

10 reasons why we can’t ignore health care costs

Many of us have heard the mantra our whole careers: To improve health—and the quality of American life—we must stem the rising cost of care. Health care’s percentage of the U.S. gross domestic product has doubled since 1980. At this rate, by 2040, health care will consume one of every three dollars.

With a U.S. debt crisis and a presidential election looming—and with Group Health paying continually rising prices for care purchased outside our own group practice—the cost-containment drumbeat can seem deafening. But here are 10 reasons why rising costs matter now more than ever:

1. Dollars spent on health care could go to education and other needs.
As former White House Advisor Ezekiel Emanuel, MD, PhD, recently wrote, “The more we spend on health care, the less we can spend on other things we value…middle-class salaries, public education, and other state-funded services.” Money spent on any of those things may promote health more than spending the same on medicine. Also, health care-related debts are weakening American businesses’ ability to compete globally.

2. Lower costs will let more Americans gain access to care.
When insurance premiums rise with the cost of care, fewer people can afford coverage. Emanuel predicted that even after the Affordable Care Act starts providing coverage for the uninsured through Medicaid and subsidies in 2014, some people will still find coverage unaffordable. But bending the curve of cost increases should allow more Americans into the system.

3. Lower costs can be compatible with better care.
Group Health proved this true in our patient-centered medical home evaluation. Results included lower costs, higher quality, fewer hospitalizations and emergency visits, and better patient and provider experiences. Ongoing research seeks to identify more innovations that cut costs while maintaining or improving quality.

4. We know where the money is.
Studies show that the greatest potential for health care savings comes from reducing avoidable hospitalization and improving care for chronic conditions. In the Journal of the American Medical Association, Emanuel recently outlined needed changes, including many under development and/or evaluation at Group Health:

  • tracking patients’ health status and physician performance with electronic health records
  • more intensive interactions between patients, caregivers, and clinic staff, including using care coordinators, 24/7 access, interventions to increase medication adherence, and specialized clinical services for patients with recurrent problems from chronic disease
  • providing services not traditionally covered by fee-for-service reimbursement, such as e-mail, wireless monitoring to increase medication adherence, home evaluations to minimize falls, and lifestyle interventions to improve nutrition and exercise

5. We’re uniquely positioned to help solve the problem.
As a learning health care system conducting non-proprietary research within an integrated health plan, we can study the processes and costs of care and coverage for a large population getting care in real-world clinical settings. This lets us continually refine our ability to design, implement, evaluate, and disseminate innovations that may reduce care costs for Group Health members and others across the United States.

6. We’ve got the connections.
Through Group Health Research Institute’s links to other organizations in the HMO Research Network and other consortia—and our collaborations with universities and medical centers nationwide—we can extend the diversity, power, and reach of our research on costs.

7. It’s the future.
The new Center for Medicare and Medicaid Innovation shows increasing interest in funding research to make care more efficient. Also, the establishment of accountable care organizations (ACOs)—as outlined in the Affordable Care Act—provides new incentives for cost-conscious health care.

8. Improvements are possible.
Other developed nations prove it’s possible to provide higher-quality care at lower cost. Among further glimmers of hope: the Centers for Disease Control and Prevention published a study last month showing a dramatic decrease in amputations among people with diabetes over the past decade, presumably because of better disease control. Such improvements should result in lower costs too.

9. We’re poised to address the problem.
At the Group Health Research Advisory Board Annual Meeting on January 25, leaders from Group Health and our collaborating institutions affirmed GHRI’s recently completed strategic plan. They encouraged the Institute to be more ambitious about solving cost control challenges—for both Group Health and the nation. So a small working group of Group Health leaders will meet soon to plan how GHRI will intensify efforts in cost-related research.

10. It’s our job.
GHRI’s mission is “to improve health and health care for everyone through leading-edge research, innovation, and evaluation.” Reducing costs of care is a pillar of this effort.

The best ways information technology can support health delivery systems

An important bi-partisan report was released today that includes a set of recommendations for the most effective use of health information technology (IT) dollars to support coordinated, accountable, patient-centered models of care. We were fortunate enough to have our President and CEO, Scott Armstrong, contribute to this work through the Bipartisan Policy Center’s Task Force on Delivery System Reform and Health Information Technology. Over the last six months, the Task Force, headed by Senators Daschle and Frist, has collaborated across industries and party lines to develop a set of recommendations for the most effective use of health IT dollars to support new models of care that improve quality and health, and reduce costs. Continue reading ‘The best ways information technology can support health delivery systems’

HHS issues bulletin on Essential Health Benefits

Last week, the Department of Health and Human Services (HHS) issued a bulletin (pre-regulation guidance) on the Essential Health Benefits (EHB) package in an effort to give states the information needed to begin constructing the Exchanges as well as the requirements for qualified health plans sold through the Exchanges. The EHB package, which must be offered by insurers in most policies sold to individuals and small businesses both in and out of the Exchange, is arguably one of the most important aspects of the federal health reform law. Continue reading ‘HHS issues bulletin on Essential Health Benefits’

America can’t control health costs it doesn’t understand

Deliberations over health care’s future continue to be divisive. The U.S. Senate “super committee”—deadlocked over deficits linked largely to health care spending—has thrown in the towel. The Affordable Care Act is headed for the U.S. Supreme Court. Medicare chief Don Berwick has resigned after Congress failed to confirm his appointment. And pundits predict next year’s presidential election will be yet another referendum on health reform. Continue reading ‘America can’t control health costs it doesn’t understand’

Supercommittee fails to reach an agreement — what now?

After many committee meetings and much speculation whether the bipartisan Joint Select Committee on Deficit Reduction (“Supercommittee”) would come to an agreement to cut the United Stated deficit by $1.2 trillion, the deadline has unfortunately past. Despite the fact that the Supercommittee had full authority to essentially cut from any government budget to reach the $1.2 trillion goal, the Democrats and Republicans could not agree on exactly how to reform certain programs for savings nor develop creative ways to raise revenue without increasing taxes for everyone. Our own Senator Patty Murray, a co-chair of the Supercommittee, stated that the group worked up to the wire to strike a deal, but in the end, no recommendation could be agreed upon by both parties. Continue reading ‘Supercommittee fails to reach an agreement — what now?’

The Supreme Court to hear arguments on the Affordable Care Act

On Monday, the Supreme Court of the United States decided it would hear the challenge to major provisions of the Patient Protection and Affordable Care Act (ACA) in its upcoming session. Specifically, the Court will hear arguments contained within the suit filed by 26 states and the National Federation of Independent Business that came through the U.S. Court of Appeals for the 11th Circuit. It is important to note this is the only appellate court to find the law to be unconstitutional. Continue reading ‘The Supreme Court to hear arguments on the Affordable Care Act’

HHS Releases Final ACO Rules

After much anticipation and an outpouring of feedback on the proposed rule released last March, the Department of Health and Human Services (HHS) released its final rule on the Accountable Care Medicare Shared Savings Program late last week. This program was created by one of a few key delivery system reform provisions in the health care reform law, to better align financial incentives in Fee-For-Service Medicare to strive for cost savings while protecting and improving quality of care. Provider groups had many concerns with the proposed rule, largely stemming from the lack of flexibility in initial funding that is required to develop a new ACO model and keep it running. The general analysis was that the potential upside offered through the program would not be sufficient to support the development of ACOs in the Medicare Fee-For-Service market – and the potential downside risk too great. Continue reading ‘HHS Releases Final ACO Rules’

IOM releases report on the essential health benefits package

 

The Institute of Medicine (IOM) released its recommendations for the essential health benefits (EHB) package this morning.  Continue reading ‘IOM releases report on the essential health benefits package’

IOM report on essential health benefits expected this week

The Institute of Medicine (IOM) announced that its report on recommended essential health benefits will be released October 7. The Affordable Care Act (ACA) requires the Department of Health and Human Services (HHS) to delineate the essential health benefits that must be offered by all carrier participants in the state health insurance exchanges. All health plans must cover these health benefits to be certified and offered in the proposed state health insurance exchanges. In addition, Medicaid state plans must cover these services by 2014. Continue reading ‘IOM report on essential health benefits expected this week’