Managed Care Friday

19: Percent of hospitals in a poll last week considering or establishing in-house specialty pharmacies. This developing trend is interesting given a new UnitedHealthcare policy starting in April. Hospitals will be required to obtain specialty medications from UHC’s specialty pharmacies when administered in the hospital outpatient setting, unless otherwise authorized. This means the hospital can’t bill for the medication and can’t bill the patient. The pharmacy will bill United and the hospital can only bill for ‘administering’ the drug. The insurer says they may deny the full claim if the...

CBO Fiscal Forecast Highlights Rising Healthcare Cost

CBO’s latest 10-year budget analysis projects historic federal budget deficits for the next decade—with rapidly rising federal healthcare costs a major contributor. Over the next 10 years, CBO estimates that federal healthcare costs will increase from 5.4% of GDP to 7.0% of GDP by 2030. This reiterates that the federal government will face significant fiscal pressures as the Medicare population grows and issues such as the solvency of the Medicare Part A trust fund loom over the next decade. Click to read more.

CMS Proposes 3-Year Extension to CJR Model, Folding in Outpatient

In February 2020, CMS submitted a proposed rule to extend the Comprehensive Care Joint Replacement (CJR) Model for an additional three years (2021-2023), and to include outpatient hip and knee replacements in the episode of care definition, with additional adjustments to other pieces of the model to account for these new changes. Click to read more.

Managed Care Friday

77: Percent of employers in our poll of 219 small, midsize, and large companies who say the time to diagnosis for pain and orthopedic issues is “excruciatingly slow” and “wasteful,” and has led to issues with “presenteeism, productivity” and ultimately higher health cost spend per employee. “Not just low back pain, but neck pain, knee pain, upper back, elbow – we have been pressing in recent years to use PT first for several weeks but sometimes an X-ray is needed right away to rule out issues,” says Dave Simmons, a medical director consultant for self-insured employers. Palliative Care:...

CMS Proposes 2021 Medicare Advantage Rates of +4.49%, Finalizes MA/Hospice Demo

CMS released the 2021 Medicare Advantage Advance (MA) Notice on February 5, 2020. The proposed rate updates are estimated to increase MA plan payments by +0.93%, with another +3.56% increase due to plan risk coding behavior. CMS also published more details on the voluntary demonstration program that allows Medicare Advantage plans to cover the Medicare hospice benefit. Specific capitation rate detail are expected to be released shortly. Click to read more.

Supreme Court Lifts Stay on ‘Public Charge Rule’, Likely Affecting Medicaid Enrollment

On January 27, the U.S. Supreme Court lifted a nationwide injunction on implementation of the Trump administration’s ‘Public Charge Rule’, which increases the government’s ability to reject green cards for individuals deemed dependent on government assistance, including Medicaid. The Supreme Court did not opine on the legality of the rule itself, and litigation to address that issue is ongoing. Click to read more.

Number of ACOs and Enrollees Rebounds in 2020 Enrollment Data

Following a decrease in both participating Accountable Care Organizations (ACOs) and assigned beneficiaries in 2019, CMS released 2020 enrollment data that showed participating ACOs making up ground to 2018’s high (517 v. 561) and assigned beneficiaries surpassing 2018’s 10.5M, rising to 11.6M. Click to read more.