10 Updates

'Obamacare' Is More Than Exchanges -- And These 3 Charts Will Help You Understand How

Apr 2 2014, 2:32am CDT | by

President Obama has a new favorite number. “7.1 million Americans have now signed up for private insurance plans” through the Affordable Care Act’s marketplaces, the president said in a speech on...

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16 weeks ago

'Obamacare' Is More Than Exchanges -- And These 3 Charts Will Help You Understand How

Apr 2 2014, 2:32am CDT | by

President Obama has a new favorite number.

“7.1 million Americans have now signed up for private insurance plans” through the Affordable Care Act’s marketplaces, the president said in a speech on Tuesday afternoon. “7.1,” he added after a pause for effect.

A few hours later, Obama dispatched an email to White House supporters and reporters. His subject line? “7.1 million .”

(All told, the president invoked 7.1 million seven times in his speech and email.)

Not even two months ago, the Congressional Budget Office estimated that just 6 million people would sign up for Obamacare this year because of technical problems, a 14% cut  to its initial projection of 7 million.

So understandably, the White House is celebrating an achievement that once seemed impossible . Hitting 7.1 million sign-ups is a politically significant victory.

What it isn’t: An especially useful way to judge Obamacare.

Don’t get me wrong. The number of enrollees is important, sure. It’s a barometer that I’ve tracked closely in my role as editor of the Advisory Board’s Daily Briefing.

But there’s a lot we still don’t know about the people who have signed up for insurance plans. How many were previously uninsured. How sick they are.

And all the early data we did know about Obamacare customers, as Megan McArdle writes at Bloomberg View, have been “blown to hell” by the final month’s frenzy of sign-ups.

Meanwhile, the difference between 6 million and 7.1 million enrollees may not be as relevant as you think. Even if 15% of Obamacare enrollees don’t end up paying, there’s not much of an impact for hospitals, insurance companies, or even the long-term success of the law.

The more important story now is all the other elements of Obamacare—the ones that no one is talking about when  they  talk  about  ”Obamacare .”

Don’t forget; the ACA is much, much more than just insurance exchanges. The law’s coverage reforms have gotten the lion’s share of attention, because they impact so many people and tend to be so politically sensitive.

But Obamacare also includes dozens of other provisions designed to increase access, lower spending, and boost quality.

Taken together, these elements are known as the “Triple Aim .” And its provisions are interconnected, in ways both obvious and subtle. For example, expanding coverage to millions of people has implications for health costs (they’ll probably grow) and care quality (it could suffer, if doctors don’t have enough capacity).

So here’s a more complete way to understand Obamacare: Look at some of the law’s other provisions…say, its planned changes to Medicaid, creation of accountable care organizations, and readmissions penalties. Taken together, they help capture the sweeping ambition of the law’s reforms, and illustrate how much is still left to do.

1. The incomplete Medicaid expansion

It’s a true glass half-full, half-empty scenario: Only 26 states have now said yes to the ACA’s Medicaid dollars.

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For the law’s supporters, the optimistic read is that 4.5 million more Americans will get Medicaid coverage this year, thanks to states like California and Ohio expanding their programs. The pessimistic viewpoint is that just as many Americans—nearly five million —are missing out on Medicaid in the 24 states that are currently sitting out.

As our map indicates, those holdout states generally remain across the South and Midwest—states where local leaders are concerned about the political and financial costs of opting into the program. Regardless of the reasons, the decision to opt out of Medicaid is causing short-term pain for providers  and has real implications for the law’s long-run success, too.

“Obamacare will be a failure until Medicaid expands in red states,” The New Republic‘s Alec MacGillis concluded last week.

“We have passed a law meant to expand coverage to all Americans, and yet it does not reach the poorest of our fellow citizens in nearly half the states in the country.”

2. Early ACO results appear mixed

The ACA also includes a slew of reforms intended to shift providers away from fee-for-service reimbursement and toward fee-for-value.

For instance, the law features value-based-purchasing provisions, which withhold and redistribute a small amount of reimbursement from providers, and represent the first real step by CMS toward pay-for-performance. (More on this in a second, in the context of readmissions.) And the ACA also has fostered several major payment pilots, such as Medicare’s bundled payment and accountable care organization  initiatives. Both programs have lured hundreds of participants thus far.

It’s too soon to tell how well the ACO payment reforms are working; the early evidence on achieving shared savings is mixed , and some of the initial cohort already has dropped out. But experts generally believe that the health care sector’s slowing growth (aka, “slowth “) partly reflects the shift toward these models—not just by CMS, but by private payers that are following the goverment’s lead.

I asked my colleague Rob Lazerow, who’s studied Medicare’s savings programs, for his early read on Obamacare’s payment reforms.

Programs like ACOs are “encouraging providers to examine the quality, efficiency, and quantity of the care they provide–plus how they contract with private payers too,” Lazerow said.

Lazerow also pointed out that the implications of payment reform probably outweighed coverage expansion for many hospital CEOs. “For many organizations, these new payment models will drive more near-term transformation than coverage expansion,” he added.

3. Readmissions penalties flash promise

Perhaps the least equivocal ACA-related victory yet has to do with care quality: The law appears to be having a real effect on readmissions rates, which refused to budge for years.

Specifically, the ACA’s Hospital Readmissions Reductions Program  allows CMS to withhold up to 1% of regular reimbursements for hospitals that have too many 30-day readmissions for heart attack, heart failure, and pneumonia patients.

The threat of penalties prompted hospitals to institute new programs —like home care visits and free medication—that seem to have translated into lower all-cause readmissions. The map below tracks the percentage point change in Medicare readmission rates by hospital referral region, beween January and August 2013 compared to the average across the 2007-2011 period.

If these early gains prove lasting, and the reductions in readmissions continue, CMS will be able to crow about a dual achievement: Improving care and lowering costs.

That’s an incredibly difficult goal, of course. And it’s harder to measure that than the number of people signing up through insurance exchanges. But achieving better quality at lower cost is what Obamacare’s really supposed to be about, too.

Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Collingwood Magpies Training Session
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was br ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakya ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Mini ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states la ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Musta ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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