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Affordable Care Act: Negative Implications

Affordable Care Act: Negative Implications. Roger Anderson, Leslie Burgy, Margie Pokorski, and Carolyn Sucaet Siena Heights University LDR-614 August 13, 2013. Introduction to the Affordable Care Act. Key Areas of Concern Quality Satisfaction Cost Access IT Issues

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Affordable Care Act: Negative Implications

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  1. Affordable Care Act: Negative Implications Roger Anderson, Leslie Burgy, Margie Pokorski, and Carolyn Sucaet Siena Heights University LDR-614 August 13, 2013

  2. Introduction to the Affordable Care Act • Key Areas of Concern • Quality • Satisfaction • Cost • Access • IT Issues Overall, issues with implementation will outweigh any potential benefit

  3. ACA Quality Issues -Overview One stated intent of the Affordable Care Act is to improve quality. This is to occur using the following methods: • Values-Based Purchasing (VBP) • Health Insurance Exchanges (HIE)

  4. ACA Quality Issues-VBP • 33 Approved measures to determine how well ACOs meet minimum quality standards Issues • This is a very finite or limited list • No high-level evidence that this enhances quality (O’Brien, Kumar & Mertsky, 2013) • Described as a “…program built on penalties…” (Shoemaker, 2011) • Gaps in areas of focus may lead to decreases in quality (e.g. Behavioral Health)

  5. ACA Quality Issues-VBP Diversion • Funding will tend to follow those areas that are being measured • This is parallel to the “carve-out” methodology seen earlier in Medicaid programs • Costs increase when care shifts to another setting • This could be seen when a patient with behavioral health issues such as depression is unable to receive OP services and seeks emergent care during a crisis, possibly leading to an acute admission

  6. ACA Quality Issues-Resources • The ACA’s quality mandates have forced funding to shift in order to support these initiatives • Now that key quality measures are linked to reimbursement, there is more money dedicated to initiatives around re-admissions and LOS • This can draw away from funding of new research and clinical innovation

  7. ACA Quality Issues-Technology • Costs will also be incurred for technology related to Health Information Exchange (HIE) development and the use of data. • No total has been quantified inclusive of capital, operations, and ongoing maintenance • No provision in the act to keep the systems current or up-to-date • Concerns have been noted with the public trust regarding data security. This can result in lack of accurate or complete data and undermine the quality

  8. ACA Cost Issues – Goals/Methods • Goal: Increase coverage for 32 M uninsured • Methods: • Medicaid Expansion • State Insurance Exchanges • Uninsured Purchase Mandate

  9. ACA Cost Issues – Projections/Funding • CBO projects increased Federal Government spending by almost $1Trillion over the subsequent decade. • Six Funding Sources: • 14% Reimbursement reduction to private Medicare Advantage Programs • 33% decrease in MC reimbursements to hospitals • 0.9% increase in MC payroll tax with extension for higher incomes

  10. ACA Cost Issues – Projections/Funding • 11% revenues from new taxes from other health sectors • 3% increase in revenue from Cadillac tax • 21% increase in tax revenue from other areas such as penalty payments and “higher wages resulting from reduced employer spending on health care insurance”

  11. Cost Projections- Administrative • CBO’s estimates do not include $274.6 B to administer programs related to ACA • $7.5 B IRS enforcement • $7.5 B CMS administration • $50 B Grant programs • $209.6 B MC Physician Payment Reform • Additional deficits of $562 B in the first 10 years

  12. ACA Cost Issues - Medicaid Expansion • As of June 2013, 14 states have chosen to opt out of expansion due to cost • Tennessee: 1994 Expansion to cover 500,000 residents increased costs from $2.5 - $8B in 10 years • Alabama: Gov. Bentley refused to participate due to projected cost of $50M annually • Massachusetts: costs continue to grow 8% annually despite recommendations to control spending

  13. ACA Cost Issues - Health Insurance Exchanges • CBO projects 20-23 million covered through exchanges • Average 2014 individual market premium in 11 states for silver-tiered plan $321 compared to $450 current market average • How feasible to predict individuals will begin spending $4000 or 8.4% of their income for insurance versus paying penalty of 2.5% ($1,150) or $695 (whichever greater)

  14. ACA Cost Issues - Employers • Employers opting out and paying penalties may be more economic than mandates • SouthWest Airlines estimated costs to company at additional $414 M annually in order to comply with ACA regulations • Unclear as to extent of corporate savings achieved to offset increased tax revenue projected

  15. ACA Costs- Summary • Implementation Costs: $940 B by 2019 • Additional Administration Costs $562 B in first 10 years • Total $15.02 B in 10 years

  16. ACA Access Issues Supply Driven Demand

  17. ACA Access Issues Underuse

  18. ACA Access Issues Information Technology

  19. ACA Access Issues Patient Satisfaction

  20. ACA Access Issues Physician-Centric Care

  21. CONCLUSION “The changes we would need to mobilize in pursuit of the Triple Aim (care, health and cost) are large, and the obstacles are daunting” ( Berwick, Nolan, & Whittington, 2008,p.76) Biggest Barriers: Supply driven demand New Technologies Physician-centric Care

  22. Conclusion • Cumulative impact of barriers is making any substantial increase in quality unlikely • “Iron triangle” of healthcare reform prevails: “Cost, quality, and access constrain each other in complicated ways” (Clarke, 2013, p. 47) • Leaders should prepare for increased costs • Consumers should prepare for increased expenses or increased taxes, or both

  23. REFERENCES Ancker, J. S., Edwards, A. M., & Miller, M. C. (2012). Consumer perceptions of electronic health information exchange. American Journal of Preventive Medicine, 43 (1), 76-80. Bao, Y. P., Casalino, L. P., & Pincus, H. A. (2012, November 28). Behavioral health and health care reform models: patient-centered medical home, health home, and accountable care organization. Journal of Behavioral Health Services and Research, 1-11. Becher, E. C., & Chassin, M. R. (2001). Improving the quality of health care: Who will lead. Health Affairs, 20(5), 164-179. Bergner, A., & Thompson, M. (2013). The new economics of health care benefits. FinancialExecutive, 29-32. Berwick, D. M., Nolan, T. W., & Whittington, J. (2008). The triple aim: Care, health, and cost. Health Affairs, 27(3), 759-769. Block, J. (2013, July 18). Reform update: Obama touts ACA benefits amid GOP efforts to dismantle provisions. Retrieved from Modern Healthcare: http://www.modernhealthcare.com Brock, J., & Boutwell, A. E. (2012). How did we make transitions such a big deal? Journal of American Society on Aging, 36(4), 35-43. Cantlupe, J. (2013). Primary care finds a (medical) home. HealthLeaders, 43-48.

  24. REFERENCES Clarke, S. P. (2013, March). Healthcare reform in 2013: Enduring and universal challenges. Nursing Management, 45-47. Colchamiro, E., (2012, July-August). Affordable Care Act upheld: Understanding what could come next. Physician Executive Journal, 78-80. Colwill, J. M., James, C., & Kruse, R. L. (2008). Will generalist physician supply meet demands of an increasing and aging population? Health Affairs, 27(3), 232-241. Davis, K., Schoenbaum, S. C., & Audet, A.-M. (2005). A 2020 vision of patient-centered primary care. Health Policy, 953-957. Frerick, E. A., & Lechner, K. E. (2012). Health care reform and young adults' access to sexual health care: An exploration of potential confidentiality implications of the affordable care act. American Journal of Public Health, 102(10), 1818-1821. Frisse, M. E., Johnson, K. B., Nian, H., Davison, C. L., Gadd, C. S., Unertl, K. M., et al. (2012). The financial impact of health information exchange on emergency department care. Journal of the American Medical Informatics Association, 19, 328-333.

  25. REFERENCES Gardner, D. B. (2013). Health insurance exchanges: a call for nursing action. Nursing Economics, 31 (3), 152-154. Gorrin, S. H. (2011, May). The Affordable Care Act: Background and analysis. National Association of Social Workers, 36(2), Grens, K. (2013). The high-deductible trap. Modern Healthcare, 6-7. Green, J. A. (2011, April). The physician hospitals of america's constitutional challenge against the stark law amendments within the patient protection and affordable care act. Health Law Perspectives, 1-9. Retrieved from http://www.law.uh.edu/healthlaw/perspectives/homepage.asp Gruber, J. (2011). The impacts of the affordable care act: How reasonable are the projections? National Tax Journal, 64(3), 893-908. Hacker, K., & Walker, D. K. (2013, May 16th). Achieving population health in accountable care organizations. American Journal of Public Health, e1-e5. Holtz-Eakin, D., & Ramlet, M. J. (2010). Health care reform is likely to widen federal budget deficits, not reduce them. Health Affairs, 29(6), 1136-1141.

  26. REFERENCES Jacobi, J. V., Watson, S. D., & Restuccia, R. (2011, Spring). Implementing health reform at the state level: Access and care for vulnerable populations. Using Law, Policy, and Research to Improve the Public's Health, 69-72. Kaiser Commission on Medicaid and the Uninsured. (2012, February). The Henry J. Kaiser Family Foundation. Retrieved June 18, 2013, from www.KFF.org/KCMU: http:// kaiserfamilyfoundation.files.wordpress.com/2013/01/8046-02.pdf Lau, R., & O'Connor, M. (2012). Behind the rhetoric: is palliative care equitably available for all? Contemporary Nurse, 43 (1), 56-63. Lee, T. H. (2010, April). Turning doctors into leaders. Harvard Business Review, 50-58. McBride, T. D., Barker, A. R., Pollack, L. M., Kemper, L. M., & Mueller, K. J. (2012). Federal employees health program experiences lack of competition in some areas, raising cost concerns for exchange plans. Health Affairs, 31(6), 1321-1328. Merisalo, L. J. (2013, January). The top ten in 2013. Healthcare Registration, 22(4), 9-11.

  27. REFERENCES Murray, T., Schappe, A., Kreienkamp, D., Loyd, V., & Buck, E. (2010). A community-wide academic-service partnership to expand faculty and student capacity. Journal of Nursing Education, 49(5), 295-299. O'Brien, J. J., Kumar, A., & Metersky, M. (2013). Does value-based purchasing enhance quality of care and patient outcomes in the ICU? Critical Care Clinics, 29 (1), 91-112. O'Connor, S. J. (2012). Editorial. Healthcare Management, 57(6), 375. Price, C. C., & Eibner, C. (2013). For states that opt out of medicaid expansion; 3.6 million fewer insured and $8.4 billion less in federal payments. Health Affairs, 32(6), 1030-1036. Rawls, P. (2013, July 14). Alabama covered entirely by insurance exchange. Retrieved from Modern Healthcare: http:// www.modernhealthcare.com Shoemaker, P. (2011). What values-based purchasing means to your hospital. Healthcare Financial Management, 61-68. Showalter, J. S. (2013, January). SCOTUS and the voters have spoken, where do we go from here? Healthcare Financial Management, 66-71.

  28. REFERENCES The Daily Briefing. (2012, May 1). Retrieved from The Advisory Board: http://www.advisory.com/Daily-Briefing/2012/05/01/Et-cetera Turner, G. M. (2013). A model for reform. Modern Healthcare, 43(18), 28-29. U.S. Government Accountability Office. (2011). Pre-existing condition insurance plans. Medical Benefits. Verret, D. & Rohloff, R.M. (2013). The value of palliative care. Healthcare Financial Management, 50-54. Wood, D. (2013, July 3). How the 'fiscal cliff' deal, ACA and other changes will affect nurses this year. Retrieved from http:// www.nursezone.com (2012, July 6). The iron triangle of health care – implications for the ppaca. Image retrieved from http://ficklefinger.net/blog/2012/07/06/ the-iron-triangle-of-health-care-implications

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