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Commonwealth Fund “Mirror, Mirror 2024: A Portrait of the Failing U.S. Health System” Shows How Much Of A Healthcare Outlier America Really Is

Every three years, The Commonwealth Fund does a great public service by publishing its “Mirror Mirror” analysis of developed world healthcare systems. This is the eighth report, which relies on surveys as well as national and international healthcare data. The 2024 analysis accounts for the COVID pandemic impacts and results are consistent with previous years.  In effect, the Commonwealth Fund ranks healthcare systems’ performance based on leading access, efficiency, quality, and value metrics. It looks at 70 health system performance measures in five areas: access to care, care process, administrative efficiency, equity, and health outcomes. This year it compared statistics in ten countries instead of 11: Australia, Canada, France, Germany, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, and the United States. Norway dropped off the analysis list because in 2022 the country exited the International Health Policy Survey. Norway was ranked number 1 in the 2021 analysis. The

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September 19, 2024

Paragon Institute Sees Fraud In Enhanced Premium Subsidies As Democrats are calling for the extension or permanent adoption of enhanced premium subsidies in the Exchange, the conservative Paragon Institute is arguing that the enhanced premium subsidies are creating fraud as enrollees and/or brokers misrepresent income to get better subsidies. They say this is occurring very much in the 100% to 150% of the federal poverty level (FPL) income group, where free premiums are offered under the enhancement. Paragon says the original subsidies should be put back in place to lessen fraud. In addition, Paragon says small business coverage has eroded since the enhanced subsidies have been in effect. There is fraud going on in the program, with brokers illegally signing people up or changing their plans. But Paragon is now raising a different issue of fraud – the true misrepresentation of income. Paragon also raised a possible compromise. While it

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Driven By Drugs, Employer Coverage Headed For Huge Increases

One of the most important surveys performed to understand the year-to-year status as well as long-term trends in employer coverage is the Business Group on Health’s annual healthcare strategy survey. The 2025 survey was fielded between June 3 and July 12, 2024. The survey was completed by 125 employers, which cover more than 17.1 million lives in the United States. U.S. and multinational companies completed the survey and range from under 10,000 employees to 100,000 employees and over. About 73% of respondents had more than 10,000 employees. They represent a broad range of industries. Remember that close to a majority of Americans are covered by employer-furnished insurance, usually self-insured ERISA coverage. What does the survey tell us overall? Looking at projected annual increases before plan design changes, the projected trend rose from 6% in 2022 to almost 8% for 2025. Even after design changes, actual healthcare costs continued to grow

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September 18, 2024

Near Final Medicaid Redetermination Data In The Kaiser Family Foundation (KFF) has done a great public service tracking and explaining the fallout over the reintroduction of Medicaid redeterminations. While some states will carry out remaining redeterminations into 2025, we are nearing the end of the journey. About 25 million people were disenrolled for some period of time since redeterminations began again in April 2023. There is some good news and bad news to the near-end of this redetermination story. The pause in redeterminations during the pandemic allowed rolls to grow in Medicaid and children’s health insurance to 94 million. Even with losses, almost 10 million more people are covered now than before the pandemic. At the same time, 13 million have lost Medicaid coverage since the peak. Many but not all have gained coverage in other ways. Kaiser Family Foundation press release: https://www.kff.org/medicaid/press-release/as-medicaid-unwinding-concludes-in-most-states-kff-finds-25-million-lost-medicaid-coverage-but-enrollment-is-10-million-higher-than-pre-pandemic-levels/ #medicareadvantage #walmart #humana #primarycare https://www.beckerspayer.com/leadership/why-centerwell-is-moving-into-walmart.html?utm_medium=email&utm_content=newsletter HRSA Notifies

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September 17, 2024

Fireworks At Senate Finance Hearing On Healthcare Fireworks erupted at the Senate Finance hearing on various healthcare issues. Supporters of the Inflation Reduction Act’s (IRA) Medicare drug price negotiations say it is a good first step and will reduce drug costs in the country. Opponents argue it will impact innovation and Part D changes will increase premiums. Others attacked GOP VP candidate J.D. Vance’s explanation of what a Trump Obamacare repeal may look like – principally setting up risk pools for those who are sick. On enhanced premiums, many support their extension, but the GOP discussed the huge price tag. Both parties seemed to favor pharmacy benefit manager reform. #healthcare #election2024 #healthcarereform https://www.fiercehealthcare.com/payers/lawmakers-policy-experts-spar-over-inflation-reduction-act Trump and GOP At Odds Over Medicare Drug Price Negotiations Interesting article from Axios on the divide between Donald Trump and GOP members of Congress on the Medicare drug price negotiations law. The lawmakers are doing the

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September 16, 2024

JD Vance Seemingly Flips on Obamacare And Says Trump Has A Repeal Plan As a senatorial candidate and even as a senator, GOP VP nominee JD Vance poo-pooed the idea of repealing the popular Affordable Care Act (ACA). He argued the program was helping many working Americans. It was a compassionate argument that many viewed as novel in the GOP. But on a Sunday news show, Vance said that Trump has a repeal plan and its cornerstone appears to be the old conservative policy of removing sicker populations from most insurance and putting them in high-risk pools. Despite Vance saying people would be protected, it certainly raises the issue of what happens to people with pre-existing conditions – both from a coverage and affordability standpoint. Such high-risk pools rarely worked as they did not protect patients with pre-existing conditions, were not funded correctly, and had exorbitant premiums. The GOP argues

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Growth From August To September In Medicare Advantage

I decided to continue my Medicare Advantage (MA) monthly enrollment blogs because of continuing month-over-month increases. The growth is tied to remaining strong benefit packages for 2024.   Many plans will rein in benefits and geographies for contract year 2025 due to significantly deteriorating bottom lines. This is being caused by the return of robust utilization, inflation picking up in the healthcare sector (especially at hospitals), poor Star scores, negative rate increases for 2024 and 2025, new regulatory burdens (such as the new prior authorization restrictions), and the greater costs MA plans will bear due to the Inflation Reduction Act’s (IRA) Part D changes. See my earlier blogs on this Part D topic here: https://www.healthcarelabyrinth.com/will-democrats-be-victim-of-an-october-surprise-of-their-own-making/ and https://www.healthcarelabyrinth.com/part-d-premium-woes-due-to-the-inflation-reduction-act/ . While we are outside of the two regular annual enrollment windows, increases in MA enrollment still occur given the aging of America and the ability of some populations, such as dual eligibles, to continue to make changes

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September 13, 2024

Medicare Drugs Prices Analyzed A good article in Health Affairs Forefront analyzes the final prices of the ten drugs subject to Medicare drug price negotiations for 2026. The analysis shows that savings are indeed achieved on a net basis when taking into account Part D rebates. However, the data also show that the new prices are far above net prices in other developed countries. As I have argued, Medicare drug price negotiations amount to a cautious start. As the authors also note, the best prices CMS can negotiate are for those drugs that have close therapeutic alternatives or substitutes. The authors also suggest that an ancillary benefit of the negotiation law is the publication of net prices.  This could now drive changes in other lines of business. (Article may require a subscription.) #drugpricing #ira #branddrugmakers https://www.healthaffairs.org/content/forefront/medicare-negotiation-tells-us-drug-pricing-u-s Tracking Poll Shows Widespread Support For Drug Price Negotiations A new Kaiser Family Foundation

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September 12, 2024

Key Republican Dismisses Idea ACA Could Be Repealed At the recent presidential debate, Donald Trump declared that he was still open to repealing the Affordable Care Act (ACA). Admittedly, he is much more measured in his views on the ACA now. He tries to stress that the ACA would only be repealed if a plan were developed to make coverage better. He as of yet has not unveiled a plan. But prominent congressional Republicans again are throwing cold water on the prospect of any repeal.  Sen. Bill Cassidy, R-LA and currently ranking member on the Senate HELP Committee, dismissed the idea that the ACA would be repealed by Congress. And Republicans are likely to take control of the Senate. Cassidy would lead the HELP committee. Along with the Finance Committee, HELP is a committee of cognizance over healthcare matters. Cassidy stressed that comprehensive healthcare reform would have to be bipartisan.

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Two Key CMS Announcements MA Plans Must Follow

Medicare Advantage (MA) plans are going to want to take note of two recent HPMS memos from the Centers for Medicare and Medicaid Services (CMS). Each touches on major areas of controversy for the program. Supplemental Benefits User Group CMS will host a user group to provide an overview of supplemental benefits data submission for encounter data records on September 26, 2024, 2:00 p.m. – 3:00 p.m. ET. You need to register in advance. See the flyer distributed with the September 10 HPMS memo on the topic. The issue of supplemental benefits is an explosive one right now. Opponents of MA say that MA plans are submitting bids that misrepresent supplemental benefit utilization and thereby inflating their margins. CMS has little to go by because encounter data for supplemental benefits is rarely submitted. CMS did two things to attack the controversial issue. First, it issued a memo requiring plans to submit

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