2/ in this article, Joseph Kannarkat and I break down all the tools that the Biden administration and @SecBecerra have to address competition beyond antitrust reviews
3/ first of all, if the Biden administration chooses to elevate health care competition as a priority, it may garner rare bipartisan support.
This is an issue that has support from left (@ZekeEmanuel) and right (@Avik) thought leaders and legislators.
4/ removing perverse incentives to consolidate in payment policies can arrest or reverse hospital-physician consolidation.
The appeals court upheld @CMSGov ability to enact site-neutral payments.
they need to be expanded beyond office visits to other services, like ultrasounds
5/ fight against state-level anticompetitive ploys
"Certificate of Need" is often abused to grant local monopolies that then drive up prices
CMS has set the precedent of saying "if there's a CON, we will provide additional flexibilities on network adequacy"- they can go further
6/ Enforce against holding data hostage.
I joined 5 other former national coordinators for Health IT in an unprecedented letter that supported using CMS Conditions of Participation as a tool for ensuring data sharing of hospital events.
We have a final rule, but no enforcement
7/ the FTC and DOJ should review physician non-competes.
They shouldn't be used to stifle competition if physicians find that hospital (or private equity) employment was not all they hoped it would be
8/ @JoeBiden was the first presidential candidate of a major party to explicitly call out the need to tackle market concentration in healthcare
But they can go beyond antitrust authority to ensure better care and lower costs for all.
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3/ On the risk adjustment policy front, there was a technical problem
The update (2023 data predicting 2024 costs) included skyrocketing skin substitute costs. Since policy took those costs away after 2025, model needed to be redone to lower the weight given to eg skin ulcer Dx
1/ A new @CMSinnovates ACO model was released this week
In our interview with @AbeSutton on the #ACOshow I teased him about how every new CMMI director seems to believe the world needs yet another primary care model (instead of improving the #MSSP model)
Did he prove me wrong?
2/ He might have
Here's what the RFA says is the new model is testing- bear with me and we will walk through each one
1. Bringing in high cost providers 2. Benchmarking that avoids ratchets 3. High needs/duals patient 4. Specialist engagement fin model 5. Beneficiary incentives
3/ Growing ACO participation
MSSP winners have been more efficient physician-led practices (fewer specialist/procedures, less expensive hospital care)
The hypothesis is that if we can get high cost providers into ACOs, they can save more money.
1/ CMS released the "2027 Medicare Advantage and Part D Advance Notice" on Monday afternoon, and health plan stocks lost some $100B of market value?
What was so shocking?
Let's descend into policy weeds & make some predictions about Final Notice
(not investment advice obvsly)
2/ Here's the big components of this year's notice, compared to last year.
A 5 percentage point difference in payments is a BIG deal for a $500B industry currently nursing profit margins of 0-2%
(this does not include an expected 2.45% increase in payments from coding trend)
3/ The top part is actuarial math-
good or bad, most people ascribe political intent to it, but it's just what the independent green-eyed shade professionals estimate for trends in costs in Traditional Medicare
by law, that's what the MA plan rate increases are indexed to
1/ The 2024 Medicare Shared Savings Program results are released from embargo!
topline results:
10,326,340 bene-years (12% @AledadeACO )
$6,452,075,989 in savings versus benchmark
$4,062,804,612 in payments to ACOs (19% Aledade)
Largest savings ever
Higher quality than FFS🎉
2/ fact sheet:
$643 (2024) vs $515 (2023) in gross per capita savings
Almost 2x savings rate for "low revenue ACOs" (physician-led/FQHC/RHCs) and for those composed predominantly of primary care clinicians vs high revenue ACOs (typically hospital-led)
"lower utilization compared to their benchmark across many categories of utilization including hospital discharges, Emergency Department visits and Skilled Nursing Facility stays"
Better chronic disease management
More prevention
Less suffering