Final! Flashcards
Stakeholder
people/ organizations that influence the direction of healthcare
Course major theme 1
technological accomplishments of the US healthcare delivery system are offset by problems of access, cost, and quality
Course major theme 2
previously confidential relationships between healthcare providers are now scrutinized/ shared by insurers, payers and quality managers
Course major theme 3
historic charitable health care mission has been replaced by profit driven enterprises
Course major theme 4
the healthcare industry has v large and diverse # of stakeholders
Course major theme 5
new ACA and MACRA requirements shift focus from a dollar-driven, volume-basis to a value-driven, population impact basis
Course major theme 6
the number and complexity of ethical issues of healthcare will increase as science and medicine continues to advance
Healthcare industry stats
$3.0 trillion, 12 million+ employees, ~18% of US GDP
world’s 5th largest economy
U.S. spends almost 2x avg. GDP of other comparable countries BUT…
- poor U.S. pop. health outcomes have lowest life expectancy and high infant mortality rates
- more $ on healthcare rather than social care than in other countries
- more spending has not improved overall US health status
Tech advances did not resolve…
- conflicting objectives between gov. & private sector markets
- variations in patient outcomes, efficiency, and effectiveness
- poorly aligned infrastructure
Size and complexity contribute to problems of…
- limited access, inconsistent quality, high cost
- unnecessary and wasteful service duplications
Historical understanding of healthcare
low understanding by American public, partly bc of health professional “mystique”
Current understanding of healthcare
increase transparency evolving from demands of insurers both gov. and private, consumers and employers; patients encouraged to participate in decisions
Efforts to change healthcare…
- markets make it hard
- “putting out fires”
- 1965: medicare/ medicaid
20th century healthcare accomplishments
- prevention/ treatment of infectious disease
- psychotropic drugs
- imaging
- cardiovascular tech.
- advancing tech. encouraged medical specialization
Medicare is…
federal
Medicaid is…
state
1966: Medicare part A
hospital insurance
1966: Medicare part B
insurance for non-hospital medical services
1966: Medicaid
covg. for poor, disabled
1997: Medicare part C
private insurance (Medicare Advantage)
2003: Medicare part D
drug coverage, mid range
Massachusetts as model for ACA
- Mitt Romney moderate republican gov.
- less ‘red tape’ bc one state
- healthcare system leaders on board
- bipartisan support
- business leader support
- online access was already running smoothly for other state programs
Health-Care Double Blind (EDIT THIS)
- keeping pre-existing coverage rule will basically end up with Obamacare
Can Markets Give us the Health System we Want?
- economic theory does not provide the best guidance for health care
- at state level, budget needs to be balanced
- consumers nor providers have the info. about cost bc there is no set cost
Until 1940s nature of healthcare
- dominated by physicians/ hospitals
- patient/ MD relationships sacred: treatments and payments confidential, mostly personal payments
Shifts from personal payment –> insurance payment
- distanced patients from awareness of costs and responsibility for decisions
- created business of medicine
Historical highlights: 1800s
sickness insurance by employers/ unions
Historical highlights: 1915
drive for compulsory insurance influenced by European models
Historical highlights: 1919
AMA opposed compulsory insurance (1919) bc thought insurance would decrease physician incomes
Great Depression: genesis of hospital insurance plans
- hospitals experimented w/ insurance
- Baylor University Plan: birth of blue cross model –> teachers paid per month to guarantee paid sick days
Growth of private insurance
insurance companies increase premiums w/ out any pressure to control costs
Social Security Act of 1935
- most significant social initiative in U.S. history
- federal aid to states for public health welfare, maternal/ child health, children w/ disabilities
- legislative basis for many later health+welfare programs including medicare+medicaid, 1965 amendments
Post WWII…
federal subsidies for hospital construction, research, professional education
1960s: Kennedy-Johnson administration
- direct aid to medicine, dentistry, pharmacy, nursing, and other professional schools
- federal support for healthcare delivery initiatives
1970s: Nixon administration
“block-granted” federal funds to states for use at their discretion
1970s-80s: Increase of Medicare reimbursement rates…
set standards for all insurers, medicare is the “pace car”
Iron triangle of U.S. healthcare
- cost, quality, access
- trying to control one affects the others
- ACA tries to alter this trend w/ focus on patient care value tied to reimbursement
1980s: Reagan administration
- DRGs (diagnosis related groups) become industry standard for hospital reimbursement
- Hospital gets paid one lump sum for admitting diagnosis (ex. broken leg = $X)
Drivers for Patient Protection and Affordable Care Act of 2010
- rising medical costs for families and corporations
- rising federal deficit
- high # of un/ underinsured
Features of ACA
- reverse cost raising incentives
- address quality through reimbursement reforms and transparency (improve quality and decrease cost)
- increase access to affordable care
- new consumer protections
- hold insurance companies accountable
ACA new consumer protections
- website to compare costs/ benefits of plans
- enhanced venues for appealing coverage denials
- prohibits insurance companies from:
denying access based on pre-existing conditions/ charging higher premiums bc of health status, imposing life time $ limits on benefits, denying coverage due to technical difficulties with original app.
ACA improving quality and lowering costs - examples
- small business health insurance tax credits
- closes gap for prescription drug costs
- health plans to cover certain preventative services
- enhanced anti-fraud/ waste in federal programs
- new Medicare value-based purchasing, bundled payment programs, and ACOs
ACA increasing access to affordable care - examples
- coverage up to 26 years on parent’s plan
- expand primary care workforce
- increase funding for federally qualified health centers
ACA holding insurance companies accountable
- companies need to spend 85% of premiums for large employers and 80% for small employers on healthcare/ coverage improvements
- rebates to consumers for non-compliance
Health care inflation in cost
- expenditure growth rate outstrips general inflation by large margins
- health care almost always has higher inflation that other products in general economy
Drivers of health care expenditures
- aging population: longevity = hospital care, drugs, unrestricted high cost interventions
- medical technology: diagnostic, treatment equipment and pharm. specialties
- un and under insured
- fee-for-service reimbursement (incentive for high volume)
- labor intensity (training, credentialing)
U.S. health outcomes
- largest % of economy dedicated to healthcare but lower life expectancy/ health outcomes
- U.S. spends far less on social services
- slower growth in life expectancy (healthcare system vs. social system of prevention)
Waste in healthcare
- 30-40% of healthcare spending
- failures in healthcare delivery
- failures in care coordination: duplication of services/ bad communication of results
- over-treatment
- administrative complexity
- overpricing
ACA immediate effects
- did not change fundamental mechanism
- uninsured numbers which were previously increasing immediately dropped by 1 million when ACA allowed children on parents’ coverage until 26
Premium
how much you pay to have insurance each month, regardless if you receive care
Deductible
how much you have to pay before insurance kicks in when receiving care
Copayment
pay at time of service before seeing doctor; prevents service over use, direct to facility
Beneficiary
person covered by insurance plan
Benefits
what your insurance covers
Managed care definition
system of healthcare where patients agree to visit only certain doctors+hospitals in which cost of treatment is managed by managing company (in/out of network)
Managed care characteristics
- provider network: set of designated doctors/ healthcare facilities
- standards for selecting providers
- formal utilization review and quality improvement programs
- some emphasis on preventative care
- financial incentives to encourages efficient care (caps on spending)
- way for insurers/ providers to limit their cost of spending on insurance
Medicare year and act title
1965: Title 18 of Social Security Act
Medicare coverage
all Americans older than 65 entitled to health insurance benefits… “universal coverage for elderly,” also covers others with certain health conditions
Joint Commission
Medicare conceded hospital accredition to private sector
Medicare part A (hospital) financing
primarily payroll taxes
Medicare part B (physician) financing
primarily general taxes
Medicare part C (Medicare Advantage) financing
premiums
Medicare part D (drugs) financing
general taxes, premiums, state payments (dual eligibles)
Medicaid title
Title 19 of Social Security Act
Medicaid coverage
finances health care for those with limited income
Medicaid financing
- almost entirely taxpayer-financed program
- costs are shared by states and federal gov.
- Federal Medical Assistance Percentage (FMAP): Federal matches state at least 1:1
- Medicaid Expansion = enhanced matching rates: 100% coverage of Medicaid costs for newly enrolled until 2020 and then 90%
Disproportionate Share Hospital Payments (DSH)
- since 1966, federal law requires Medicaid payments to states (DSH) for hospitals serving large # of Medicaid/ low income/ uninsured
Healthcare for the military (U.S. DOD)
- for active duty & retirees, dependents, survivors, former spouses
- Veterans Health Administration (VA): largest integrated U.S. health system
Indian Health Service (IHS)
- comprehensive care to members of federally recognized tribes and their descendants
- American Indian and Alaska Native (AIAN)
Children’s Health Insurance Program (CHIP)
- Title 21 of Social Security Act
- Federal block grants to states
- Covers children up to age 19
- No federal income threshold –> States cover children in families with incomes up to 200% FPL
Private Coverage and Cost under ACA
- insurers mandated to enroll YA until 26 under parents’ plan
- illegal to charge more/ refuse coverage for preexisting conditions
- all health plans to include certain “essential health benefits”
- fee on insurers for the privilege of selling plans through the exchanges
- MLR
- U.S. residents no longer required to have health insurance
- deductibles often unaffordable
- some large insurers left ACA exchanges
Medical Loss Ratio (MLR)
- measure of the percentage of premium dollars that a health plan spends on medical claims and quality improvements, versus administrative costs
- profits and other administrative expenses can make up no more than 20 percent (15 percent for large groups) of premiums collected
Health Insurance Marketplaces (HIMs)
provide consumers w/ web-based comparative info. on health plan choices and prices
Individual Mandate of HIM
- state option to create HIM, if not federal gov. est. and operated
- federal support for HIMS until 2015, after is self-sustaining
HIM participation eligibility
- American citizen
- legal immigrants w/out employer coverage or for whom cost is prohibitive
- acceptance guaranteed
- varying levels of federal financial assistance
North Carolina policymaking process
- 10.3 million ppl in NC
- diverse geography, culture, history, populations
- decentralized system - 100 counties, central oversight, locally administered
- strong spirit and history of collaboration/ partnerships
NC DHHS priorities
- Medicaid transformation
- Healthy Opportunities
- Early childhood
- Opioid crisis
Medicaid Transformation in NC
- build on existing infrastructure in NC and learn from best practices from other states
- focus on whole person health
- support provers and patients
- promote quality and value
- promote access to care
Healthy Opportunities NC
- up to 80% of a person’s health is determined through social and environmental factors and the behaviors influenced by them
- tackling foundational drivers of health: NC Care 360 (referral to food bank/ homeless shelter), Healthy opportunities pilots, Early Childhood Action Plan (preventative lens)
Early Childhood Action Plan NC
- brain and development
- children and families are center of work
- eliminating disparities for all NC children
Opioid Crisis NC
- coordinate infrastructure
- reduce oversupply of prescription opioids
- awareness + prevention through education
- expand access and linkage to care
Key Stakeholders (Opioid NC)
- governor - administration
- departments outside the administration
- NC general assembly
- counties
- outside stakeholders
- US Congress
- US Dept. of Health and Human Services
Opioid Epidemic Response Act
- increase access to office-based opioid treatment (OBOT) for opioid use disorder: remove duplicative state registration of buprenorphine prescribers
- allow ppl to test drugs for dangerous contaminants like fentanyl before use: decriminalize fentanyl test strips
- improve ability of syringe exchange programs to prevent the costly spread of disease: remove ban on using state funds to purchase supplies for syringe exchange programs
Plan of Safe Care
- legislation passed
- gathered stakeholders
- drafted policy
- signed off by governor
- outreach and education (ongoing)
- reporting data to US HHS
- ongoing meetings to discuss implementation
- tech. assistance from fed. gov.
- evaluation
Triple Aim in Healthcare
- improve patient experience
- better health through improved outcomes
- manage/ reduce cost
Factors the influence healthcare quality
- socioeconomic status
- physician supply
- risk behaviors
- health status
- etc.
Structural quality measures
- give consumers sense of healthcare providers capacity, systems, process
- ex.: electronic medical records, number physicians, provider to patient ratio
Process quality measures
- what provider does to maintain/ improve health
- ex.: % ppl receiving preventative care
Outcome quality measures
- impact on patient health status
- ex.: % of patients that die as result of surgery/ have complications
Data sources for quality measures
- administrative data
- patient medical records/ surveys
- comments from individual patients
- standardized clinical data