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NEWS FLASH

Health Care Industry Braces For Double Whammy Of Health Cuts | As The Hill’s Sam Baker points out, health care providers may be on the hook for two rounds of cuts before the end of the year:

1) The triggers in the debt ceiling proposal would enact “across-the-board reductions that would cut up to 2 percent of Medicare’s total spending” to providers if the so-called super committee does not agree on a proposal to reduce spending. Even if it does agree, the group could target government reimbursements to hospitals and doctors.

2) At the end of the year, “the latest short-term patch to Medicare physician payment rates is set to expire,” meaning Medicare doctors will face another round of cuts.

Yglesias

What Gets Cut If The Debt Commission Doesn’t Agree?

A majority of the deficit reduction in the plan being proposed to resolve the debt ceiling crisis is supposed to come from the recommendations of a special commission. And to create an incentive for the commission to write a proposal that passes congress, there’s a “trigger” mechanism leading to automatic spending cuts if the commission proposal isn’t adopted. Half of those cuts come from defense, and half come from the non-defense side. But the sequestration mechanism “would exempt Social Security, Medicaid, unemployment insurance, programs for low-income families, and civilian and military retirement. Likewise, any cuts to Medicare would be capped and limited to the provider side.”

So what’s left? Here are Matt Cameron’s calculations:

Basically the “education, employment, and training” category of spending is going to get the largest share of the cuts. The State Department will also be really hit.

NEWS FLASH

Government Report Finds No Evidence Of ‘Government Takeover’ Of Health Care | Despite conservatives’ fears of a government takeover of health care as a result of the Affordable Care Act, the government’s “share of national health spending, while unquestionably large, is not growing much at all, and even in ten years it will be less than half of our country’s total health spending,” Kaiser Family Foundation President Drew Altman points out. In fact, last week’s report from the the Medicare Office of the Actuary found that “the share of health spending financed by the FEDERAL government will go from 29% in 2010 to 31% in 2020″:

Massachusetts Anti-Abortion Group Seeks To Repeal State’s Individual Mandate

An anti-abortion group is gearing up an effort to place a question on the Massachusetts ballot to repeal the requirement that all state residents obtain health insurance, a core provision of former governor Mitt Romney’s “landmark 2006 health care law.” Under the law, uninsured residents below 300 percent of the federal poverty level can participate in the state-subsidized Commonwealth Care program and receive a comprehensive package of benefits that includes “doctor’s visits, surgery, radiology and lab” and abortion services:

Anne Fox, president of Massachusetts Citizens for Life, told the News Service she hopes the repeal of the mandate will lead to an eventual dismantling of the entire law, which she said has lengthened the wait for doctor visits, contributed to rising insurance premiums and resulted in an increase in taxpayer-funded abortion.

“It’s a place to start,” she said of the petition effort. “We’re not saying that the individual mandate is the end. It’s the beginning.”

Fox said publicity around the national health care law – which she said should also be repealed – had focused attention on Massachusetts’s law. [...]

According to an advisory distributed by the organization Monday, MCFL intends to file 10 signatures with the office of Attorney General Martha Coakley by Tuesday to begin a repeal of “Romney-care,” a name that critics of the law have used derisively to tie it to the former governor and Republican presidential candidate.

It would be interesting to know what Romney — who has embraced the law as a “state solution” for a “state problem”, but has said that he opposes a federal individual requirement and government funding for abortion — will say about the measure, which most Massachusetts voters will likely oppose. A recent poll from Harvard School of Public Health and the Boston Globe “found that 63 percent of Massachusetts residents support the 2006 health law, up 10 percentage points in the past two years.” Fifty-one percent percent said they favor the individual mandate.

More than 98 percent of Massachusetts residents now have health care coverage as a result of the provision, including 99.8 percent of children — the highest in the nation.

Justice

Lawmakers Introduce Bill To Prohibit Pharmacists From Refusing To Fill Birth Control For Religious Or Moral Reasons

The right-wing campaign against women’s rights is leaping past the traditional bounds of abortion rights and targeting a woman’s access to birth control. Around 11 million women use a method of birth control. And yet, Republicans are not only standing against federal funding for contraception, but are trying to redefine life as beginning at the moment of fertilization — effectively turning many forms of birth control “into the legal equivalent of a homicide.” Last week, Democratic lawmakers Sen. Frank Lautenberg (NJ) and Rep. Carolyn Maloney (NY) introduced a bill to protect women against another method of infringement that conservatives are pushing: pharmacies’ refusals to fill birth control prescriptions.

In effort to help ensure the Obama administration’s requirement that insurance plans cover birth control without co-payments, Lautenberg and Maloney are supporting the Access to Birth Control (ABC) Act which would make it illegal for a pharmacy to refuse to fill birth control prescription or “interfere with or obstruct the delivery” of contraceptives:

The pharmacy shall ensure that its employees do not–

(A) intimidate, threaten, or harass customers in the delivery of services relating to a request for contraception;

(B) interfere with or obstruct the delivery of services relating to a request for contraception;

(C) intentionally misrepresent or deceive customers about the availability of contraception or its mechanism of action;

(D) breach medical confidentiality with respect to a request for contraception or threaten to breach such confidentiality; or

(E) refuse to return a valid, lawful prescription for contraception upon customer request.

If a pharmacy violates these requirements, it is liable for a civil penalty of up to $500,000.

As the National Women’s Law Center details, pharmacist refusals are not a theoretical problem. Pharmacists have refused to dispense prescription contraceptives or emergency contraception in at least 24 states. All the pharmacists who refused to deliver services based their objection “on personal beliefs, not legitimate medical or professional concerns” and even refused “to transfer a woman’s prescription to another pharmacist or to refer her to another pharmacy.” The ABC act would make it illegal to deny a referral.

Rather than penalizing pharmacies for refusing to assist women, many state statutes actually protect that behavior. Seven states prohibit outright obstruction of patient access to medication but allow pharmacist refusals. Six states have laws or regulations that specifically allow refusals without a requirement to refer or transfer prescriptions. And in 2011, Indiana, Missouri, and Pennsylvania pushed three bills that would permit refusals to dispense birth control “without protecting patient access.”

In pushing the ABC Act, Lautenberg stated that “birth control is basic health care for women.” “By guaranteeing access to birth control, we can ensure that women are never denied the right to make responsible decisions about their reproductive health,” he said. As Maloney points out, “Nearly 8 out of 10 Americans believe that a pharmacist should be required to fill prescriptions for birth control, even if they have a religious objection.”

As one New Jersey young woman put it, “I’m not going to a pharmacy to be judged…The doctors are the ones that should be asking questions, not the pharmacist.”

Kansas Abortion Providers Claim State Issued Licensing Regs Without Studying Possible Impacts

Last month, a federal judge temporarily blocked Kansas from enforcing new licensing regulations that sought to shut down the state’s three abortion clinics. Proponents of the new standards — which are far more stringent and specific than what the state currently requires of hospitals and ambulatory surgical centers — argued that stricter licensing requirements would help improve women’s safety, a notion the judge challenged before issuing a stay of the regulations.

Now, attorneys representing the Kansas abortion providers suing the state over the rules are alleging that officials drafted the regulations “without independently compiling data or studies on how the new rules would make the procedures safer for the women seeking them”:

Teresa Woody, a Kansas City, Mo., attorney representing two Kansas doctors who perform abortions, said Friday that the providers don’t think the state can show it has a medical justification for the new regulations. [...]

Health department officials have said they based their regulations on rules from other states, most notably Arizona and Texas. KDHE spokeswoman Miranda Myrick said Friday that both state and federal guidelines for hospitals, clinics and other facilities are based on an assumption that they will “result in a higher level of care.”

“In developing these regulations, KDHE looked to resources that used established, industry-accepted standards of care in clinical settings that have been developed over many years,” she said in an email, adding that such standards are “grounded in evidence.”

Indeed, the rules were issued so hastily, it’s difficult to see how officials could have had time to study any of their implications. The state legislature passed the standards in April and Gov. Sam Brownback (R-KS) signed it into law on May 16. Kansas’ Department of Health and Environment issued the final version on June 17 and informed clinics that they would have to comply with the rules by July 1.

Since Brownback became Governor in 2010, anti-choice lawmakers in Kansas have passed bills that “banned abortions after 21 weeks based on the disputed notion that fetuses can feel pain then; required minors seeking an abortion to obtain the notarized written consent of both parents or a legal guardian; restricted private insurance coverage for abortions; and redirected federal family planning funds from Planned Parenthood to other health care agencies.” Earlier today, a federal judge blocked the state’s law to defund Planned Parenthood, agreeing that the family-planning organization would “suffer irreparable harm while its challenge to the law works its way through the courts.”

NEWS FLASH

Health Care Costs Force Insured Family To Declare Bankruptcy | An insured family in Orlando has had to declare bankruptcy because of the high out-of-pocket health care costs of caring for their newborn daughter. Sadly, the Sutherland’s child, Ellie, died two months before her fourth birthday. “To this day,” Simon Sutherland said, “we still have creditors calling us, wanting to talk to Ellie. They’ll say things like, ‘We want to discuss how she’s going to take care of this overdue bill.’ I just lose it.” Watch local news coverage of the story:

 

– Shivani Parikh

Yglesias

Still True Today: Health Care Spending Drives Long-Term Fiscal Woes And Needs A Comprehensive Solution

Apart from the policy details, the debt ceiling deal is maddening in terms of its focus. On the one hand, drawing all the political oxygen into long-term fiscal policy rather than the short-term jobs crisis is infuriating. But on the other hand, we also seemed to see the president drop the dominant — and correct — progressive frame of the fiscal issue. The thinking here, which drove administration policy during its first 30 months in office, is based on the reality that high projected government spending is driven almost entirely by the rising cost of health care. The issue here is that one thing the government buys is health care for senior citizens. Another thing it buys is health care for the poor. A third thing it buys is health care for federal employees. A fourth thing it buys is health care for veterans. On top of that, it offers a tax subsidy for employer-provided health care plans. Thus, as my colleagues wrote in “Budgeting For Growth and Prosperity”, “Given that health care in the United States is expensive for everyone, it is not surprising that it’s expensive for our government, too.”

The point here is that addressing this in a serious way requires some combination of new revenue to pay for the reality that these health care obligations are expensive, and of measures that systematically decrease the cost of health care:

Otherwise, the consequences for those who rely on public programs would be devastating. Why? Because if spending on those public programs is limited while private-sector costs continue to balloon, some combination of three things will happen:

1. Out-of-pocketcosts for the elderly will grow.Thatis,the difference between what the public insurance programs pay and what the services cost will widen, leaving the elderly, most of whom are on fixed incomes, facing enormous financial strains.

2. Access to care and the quality of that care will decline. Better doctors and hospitals will cater to the higher-paying private market and avoid treating those who receive their coverage from the public sector—namely the elderly, disabled, and poor.

3. Costs will shift from the public to the private sector. As doctors and hospitals get squeezed by government program cuts they’ll raise prices for everyone else.

This was essentially the debate that the Affordable Care Act on the one hand and the House GOP budget on the other began to join. Under the House GOP Medicare privatization plan, the underlying per unit cost of health care services would rise sharply and then the deficit would be reduced by sharply scaling back the government’s willingness to pay. In lieu of controlling the cost of providing health care to the poor, the disabled, and the elderly, the House GOP would simply not provide the health care. The progressive alternative was to seek to reform the system, to make it more like the cheaper systems that prevail in every other country on the planet. Now this whole debate has been kind of weirdly swept under the table, even though it’s the bulk of the ballgame.

NEWS FLASH

Federal Judge: Kansas Must Resume Planned Parenthood Funding | A federal judge today blocked the implementation of a Kansas law that prevented Planned Parenthood from receiving federal funding. Agreeing that the family-planning organization would “suffer irreparable harm” while the courts decided on whether or not the law is unconstitutional, U.S. District Judge J. Thomas Marten ordered the state to immediately resume its support of the Kansas chapter, thereby saving one clinic from shutting its doors and protecting the access to Planned Parenthood’s health services for 5,700 patients.

Sarah Bufkin

NEWS FLASH

CBO: New Debt Deal Would Cut Deficits By $2.1 Trillion | According to an analysis by the non-partisan Congressional Budget Office, the debt deal brokered by the White House and Congressional leaders will cut deficits by $2.1 trillion over the next 10 years. $917 billion in deficit reduction would come from caps on discretionary spending, with another $1.2 trillion coming from either a package agreed to by the super committee that the legislation creates or from the “triggers” (automatic spending reductions) that go into effect if the committee can not come to an agreement.

NEWS FLASH

Debt Ceiling Deal Authorizes Additional Funding For HHS To Go After Fraud, Abuse | The legislative text of the debt ceiling compromise states that if Congress passes a bill that deals with health care fraud and abuse, then it is authorized to spend the following additional funds on the program: $270 million in 2012, $299 million in 2013, $329 million in 2014, $361 million in 2015, $395 million in 2016, $414 million in 2017, $434 million in 2018, $454 million in 2019, $475 million in 2012, $496 million in 2021. Note that this is only an authorization — Congress still has to appropriate the funds.

Florida Turns Away Health Care Grants Despite High Uninsrance Rate, Budget Gap

New York Times’ Kevin Sack reminds us that Florida — which has the country’s fourth-highest unemployment rate, its second-highest rate of people without insurance and a $3.7 billion budget gap this year — is still turning away millions of dollars in health care grants from the federal government because it opposes the Affordable Care Act. A list of some of the grants Gov. Rick Scott (R-FL) has rejected:

Meanwhile, Scott approved legislation seeking to privatize the state’s Medicaid program. If approved by the federal government, the new law would require “most of the state’s 3 million Medicaid enrollees to join private health plans after July 1, 2012.” The proposal “gives managed care companies more control over the program that’s paid for with federal and state money.” Reports have suggested that Scott’s companies could stand to benefit from the proposal.

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Administration Requires Insurers To Offer Contraception Without Cost Sharing, Exempts Religious Institutions

The Department of Health and Human Services has announced that health insurers will be required to cover contraception and other reproductive health care services without additional cost sharing, accepting most of the Institute of Medicine’s recommendations. The administration did add an additional caveat that would allow “religious institutions that offer insurance to their employees the choice of whether or not to cover contraception services.” “This regulation is modeled on the most common accommodation for churches available in the majority of the 28 states that already require insurance companies to cover contraception,” the agency notes. The services will include:

– well-woman visits;

– screening for gestational diabetes;

– human papillomavirus (HPV) DNA testing for women 30 years and older;

– sexually-transmitted infection counseling;

– human immunodeficiency virus (HIV) screening and counseling;

– FDA-approved contraception methods and contraceptive counseling;

– breastfeeding support, supplies, and counseling; and

– domestic violence screening and counseling.

HHS guidelines are based on a scientific review conducted by the IOM. Their recommendations, which were released on July 19, received a generally positive reception, but were met with strong criticism from conservatives opposed to contraception use.

More than 15 million women use hormonal birth control, which is one of the most frequently prescribed medications in America. Contraception improves women’s health and reduces the need for abortions, but the cost is often prohibitive for low-income women. A recent survey found that 78 percent of Americans “believe the federal government should subsidize birth control and other family planning services, excluding abortion, at government-funded clinics for low-income women.”

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Automatic Medicare Cuts In Debt Ceiling Deal Are Reminiscent Of Health Reform’s Reductions

If the final debt ceiling agreement makes significant concessions to Republicans in avoiding revenue increases and offsetting the increase with dollar-for-dollar spending cuts, the Democrats may have at least held the line in protecting entitlement programs from automatic across-the-board reductions. Gone are proposals to increase the Medicare eligibility age or block grant Medicaid spending to the states and in their place are the kind of changes advocated in the Affordable Care Act: reimbursement reductions to providers and insurers participating in the Medicare Advantage program.

The proposed legislation would raise the debt ceiling through 2012 by immediately cutting almost $1 trillion from mostly discretionary spending and establishing a joint congressional committee to recommend more than $1 trillion in further cuts. If the committee’s recommendations are not enacted, Congress would either have to approve a balanced budget agreement or accept an across-the-board cut in government programs, including Medicare and Medicaid. But those reductions won’t directly affect beneficiaries:

If the committee failed to reach its $1.8 trillion target, or Congress failed to approve its recommendations by the end of 2011, lawmakers would then have to vote on a proposed constitutional balanced-budget amendment.

If that failed to pass, automatic spending cuts totaling $1.2 trillion would automatically take effect, and the debt limit would rise by an identical amount.

Social Security, Medicaid and food stamps would be exempt from the automatic cuts, but payments to doctors, nursing homes and other Medicare providers could be trimmed, as could subsidies to insurance companies that offer an alternative to government-run Medicare.

Hospitals and doctors will complain about the possibility of future cuts, but as a general sense, it’s difficult to feel much sympathy for providers who will see an increase of revenue as a result of the coverage provisions in the Affordable Care Act. They, after all, can rejoice that Medicaid is exempt from the reductions — a great victory given that providers are already underpaid for their services and any additional cuts would further undermine access for beneficiaries. There just isn’t any real meet on the Medicaid bone.

Update

One health care policy analyst I just spoke to suggested that providers can actually use the cuts to hasten the adoption of delivery and payment reforms — since the legislation establishes a cap but does not specifying how it’s to be reached. Still, most would likely find it easier to simply shift the cost to beneficiaries in the form of higher cost sharing etc…

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Morning CheckUp: August 1, 2011

Debt ceiling deal: “President Barack Obama and congressional leaders reached an agreement on a two-stage deal to raise the federal government’s debt ceiling, with potential for an automatic round of future budget cuts that could include Medicare payments to providers and subsidies for Medicare Advantage plans.” [Modern Healthcare]

Florida still rejecting ACA funds: “Despite having the country’s fourth-highest unemployment rate, its second-highest rate of people without insurance and a $3.7 billion budget gap this year, the state has turned away scores of millions of dollars in grants made available under the Affordable Care Act. And it is not pursuing grants worth many millions more. ” [NY Times]

Medicare to penalize hospitals with high readmissions: “In an effort to save money and improve care, Medicare, the federal program for the elderly and disabled, is about to release a final rule aimed at getting hospitals to pay more attention to patients after discharge. A key component of the new approach is to cut back payments to hospitals where high numbers of patients are readmitted, prodding hospitals to make sure patients see their doctors and fill their prescriptions.” [Washington Post]

Medicare cuts payments to nursing homes: “Medicare said it will cut payment rates to skilled nursing facilities by 11.1% next fiscal year, sending shares of health-care providers tumbling after hours. The decision adjusts for what the Centers for Medicare and Medicaid Services called an unexpected increase in nursing-home payments this fiscal year and rejects another option that would have likely provided a 1.5% funding increase. ” [WSJ]

Maryland steps-up abortion clinic regulations: “Abortion clinics in Maryland will have to apply for a state license, provide a 24-hour hotline for patients, show that they have qualified anesthesia providers and develop emergency plans should procedures go awry according to new draft regulations the state’s Department of Health and Mental Hygiene released Friday.” [Baltimore Sun]

Planned Parenthood in court today: Planned Parenthood of Kansas and Mid-Missouri heads into a courtroom Monday in hopes of convincing a federal judge to block the implementation of a state provision defunding the clinic. [AP]

Rick Scott signs abortion bills already in law: Scott “shored up his conservative base Saturday with a ceremonial bill signing of four anti-abortion measures that are already law and went into effect nearly a month ago.” [Palm Beach Post]

Support for abortion growing: “The poll showed that 36 percent of adults think women should have access to abortion in “all circumstances. That’s up from 23 percent in 2009.” [CBS News]

Paul Ryan presses for changing tax treatment of employer health care: “In the last Congress, I introduced the Patients’ Choice Act that would have ended this discriminatory tax treatment and, instead, put Americans in charge of their health care dollars. This policy change would give people the freedom to shop for the health care coverage they want using a portable tax credit.” [Politico]

Center-right replacement for ACA: “A group of Washington D.C. Republican-leaning former business and government officials have launched a coalition to build support for a policy to replace the sweeping 2010 health law if it were to be repealed through the legislative or judicial process.” [Kaiser Health News]

Don Berwick on care coordination: “We’re moving on the right path toward the three core goals that guide all CMS strategy and were put within our reach by the ACA: better health, better care and lower costs. That’s a future that deserves all the determination that we can bring to it.” [Politico]

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