Showing posts with label Medicare. Show all posts
Showing posts with label Medicare. Show all posts

Monday, June 30, 2025

Killing Us Slowly…..

 

I became aware today of a Brown University study that estimates the current Trump tax cut bill will close about 580 nursing homes. Since the average nursing home has about 109 beds that means 63,220 people will be out on the street or worse.  Where do politicians (more specifically the Republican party and their constituents) think these people will go?  And why don’t they seem to care?

Over the course of my career – I have probably been in at least 50 different nursing homes in Wisconsin and Minnesota.  The care I have observed in most of those places is managed to be adequate to barely adequate.  By that I mean like all businesses they are managed to make money.  Unless they are privately financed by a foundation or high paying patients, that typically means there is minimal staffing and the most qualified people are typically RNs who spend most of their shift managing medications and medical problems.  That can mean long waits for medicines or care.  It can also mean that behavioral problems like agitation or overt aggression are allowed to escalate to a dangerous point.

When I first started doing assessments in nursing homes it was 1986.  In those days, there were very few diagnoses of Alzheimer’s Disease (AD) or vascular dementia (VaD) since the NINCDS-ADRDA criteria were not widely known.  Most of the people I was seeing had diagnoses of arteriosclerotic dementia, arteriosclerosis, or hardening of the arteries. At some point very early in this timeline, there was an initiative to make sure that old people with psychiatric diagnoses did not get admitted to nursing homes.  But like all political initiatives it was not always an either-or situation.  I would frequently see people with schizophrenia and bipolar disorder who had developed AD, VaD, Parkinson’s plus syndromes, or tardive syndromes in addition to the primary psychiatric disorder.  In many of those situations a subsequent rule about tapering antipsychotic medications to prevent oversedation and associated morbidities became a problem because of the need for maintenance medication.

Psychiatric services are needed in nursing homes for all of those reasons but they are rare.  The reason they are rare is funding – specifically rationing psychiatric services by both Medicare and Medicaid. I ran a Geriatric Psychiatry and Memory Disorders Clinic for a decade and we eventually closed because we could not maintain an adequate work quality and get adequate reimbursement. For a time, my clinic nurse and I decided to go out into nursing homes and see patients there to make it more convenient for patients, families and staff and see if it made a difference. We were reimbursed at an even lower rate for those efforts.  My speculation is that most of the psychiatric care and treatment in nursing homes is done by nonpsychiatrists and probably nonphysicians.  This in part is an additional reason for low quality care in most nursing homes.

Let’s consider the impact of all of these nursing home closures. First, it will greatly add to the current burden of emergency department (ED) congestion.  There is always a steady influx of nursing home patients to the ED with new diagnoses (pneumonia, urinary tract infections, cellulitis, etc). With further reductions in staffing, it may be more difficult to get them back.  I can recall one of my social work colleagues calling 22 different nursing homes one day to discharge one of our stable patients.  None of them would accept that patient. We were under intense pressure from the hospital at the time to discharge that patient because we needed to admit patients from the ED.  That whole chain of events will get worse – not the least due to the fact that far fewer nursing homes will accept people who have been admitted to an acute care psychiatric unit. There will be backups all around – on inpatient units and in the ED.  The same chain of events will occur on medical and surgical units who often put pressure on psychiatry to take their “stable” nursing home patients who may have a psychiatric disorder.

There will also be a steady-state of patients bouncing in and out of the ED-inpatient psychiatry or medicine-discharge sequence.  This is a familiar pattern in many hospital subpopulations that usually occurs because of a lack of adequate housing.  Expect to see more elderly nursing patients captured by this cycle.

Will there be excessive mortality and morbidity?  Of course there will be.  In the course of my career, I had to discharge patient to nursing homes where I knew they could not get the level of care they got on my inpatient unit.   I worked with highly skilled RNs – 4 on the day shift, 3 on the evening shift, and one on nights with 3, 2, and 2 nursing assistants respectively covering 20 beds. We cared for patients with complex medical problems that required frequent monitoring and intervention.  I knew there was no nursing home that I could discharge them to where they would get the same level of care and that would be a problem for them.

I have also walked in to a nursing home and seen the results with my own eyes. I recall visiting a 92 yr old woman with congestive heart failure and hypertension.  She was obtunded, cyanotic, and barely responsive.  When I asked the staff to check her oximetry and start oxygen they produced a nursing supervisor instead for a discussion.  When the oximetry was finally done it was 60% and she regained a normal conscious state with oxygen.  The assessment I made only required knowing this patient’s baseline state and asking what had happened given her chronic conditions.  Is that too much to ask in the case of nursing home staff?

In another more recent case – a 92 yr old man had C. difficile colitis following extended antibiotic therapies for post COVID-19 pneumonia.   During that time his body weight went from 130 to 87 lbs (he was 5’11” tall).  He was weak and barely able to ambulate. Despite the C. difficile diagnosis there were no infection control precautions and he shared a bathroom with 3 roommates.  Despite his clinical status (barely able to walk unassisted, not able to eat, BMI of 12.1) the insurance company paying for his care insisted that he be discharged home under the care of his family where he died the next day.  

Both of these cases are examples of low-quality care.  Rationing care is the most likely reason.  In one case the rationing is implicit (low staffing based on the need for profits from reimbursement) and explicit (inappropriate utilization review decision).   It all comes back to reimbursement.

A final consideration is that the funding cuts go far beyond nursing home care.  The most conservative estimate I have found is that the cuts would increase the number of uninsured by 7.8 million people and reduce Medicaid enrollment for 10.3 million.  Hospitals are legally obligated to treat all people with acute care conditions whether they have insurance or not. That means that many of these people will be in the ED-inpatient-discharge steady state cycle taking up beds.  They will also more likely be acutely ill and spend more time in the hospital.  All of that care is unreimbursed.  That means higher health care costs and premiums for everyone.  One projection is a doubling of premiums.  This is essentially another tax on the average American who is just trying to break even.  All of that is to provide tax cuts for billionaires and businesses while still incurring a 3-5 trillion dollar deficient.

It also means less access to hospital beds when you need it.  I have illustrated on this blog what can happen when you don’t have timely hospital bed access for what is considered a routine condition.

In the final analysis, nursing home care in the United States is seriously rationed care. Although there are some high-end nursing homes that require additional reimbursement and provide more supportive environments most are not operating at that level.  They provide the basic function of providing care on a 24/7 basis to a severely disabled person that the family cannot care for.  Even that is a recent concept in American society.  As an example, one of my elderly ancestors had a closed head injury as a result of blast injury. He lived at a time when there were no nursing homes in his area only a poor farm, that cared for the indigent and poor elderly.  He had a problem with severe aggression and would routinely wreck all of the furniture in the house. I never learned how they were able to contain this behavior, but the modern question is whether this is an acceptable standard for families.  Can family members be expected to contain severe aggression from a family member with dementia and keep everyone safe?  I don’t see how.      

Severely rationing of health care in the bill being debated hurts us all…

 

George Dawson, MD, DFAPA


Photo Credit:  Thanks to Rick Ziegler for the thunderstorm photo. 

Friday, August 25, 2023

The Donut Hole Gets Real


 


Like most people my age I am taking some medications regularly and got the text message today from my pharmacy that I could pick up one of those prescriptions. The medication is a commonly prescribed medication from a group of medicine called  Non-Vitamin K antagonist oral anticoagulants or NOACs.  The medication is apixaban or Eliquis. People commonly take it to prevent blood clots or emboli and the complication including stroke, thrombosis, and pulmonary emboli. I have been taking it for about 2 years.

I usually get a prescription for 180 – 5 mg tabs and the last time I picked it up was on May 25, 2023.  At that time there was a copay of $94.  I am on Medicare A and B and a Medicare Supplemental Policy.

This time as I drove through the line the pharmacist told me the copay was $500. I asked him to clarify what had happened, but he had no idea.  Even though I had all of my previous refills at this pharmacy he had no idea what had happened and advised me to call the insurance company. When I got home that is exactly what I did. They advised me that this was the standard coverage gap for prescription drugs also known as the donut hole.  The insurance company pays for $4660 worth of medication (in my case almost all apixaban) and at that point copays stop and the patient is responsible for a flat 25% of the total cost of the medication or the $500).  When the patient incurs a total of $7,400 in pharmaceutical costs the number falls to 5% of the total, but by then it is probably a new year and the running tally resets. The customer service rep told me that I might be able to apply for assistance through company or state program, but they all had low-income requirements.

The donut hole started in 2006 as a result of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. All Medicare Part D plans have it. It initially required patients to pay 100% of the drug cost during the coverage gap.  That was reduced to the current 25% by the Affordable Care Act (ACA) passed in 2010. By 2025 there will be a cap of $2,000 for costs incurred in the coverage gap

It turns out that apixaban is number 10 on the list of 17 most expensive drugs purchased through Medicare programs.  In 2019, the average person taking it spent $7,234 for 12 refills per year and $2,172 in out-of-pocket costs.  A reform of this pricing has been suggested but obviously has not been done since I am paying about the 2019 list price.   The top drugs on this list are easily not affordable for many people. The cost of the top 5 agents are $16,348 to $182,162 per year with out-of-pocket costs ranging from $3,242 to $11,532 due to the coverage gap (1).  Apixaban in the single largest Medicare Part D expenditure at $12.5 billion per year (last filed in 2021).

Flashbacks of my work in acute care. For 22 years, I treated low to no income people in acute care settings. I was lucky to work with excellent social workers who would exhaust every available resource to help them with funding for medical care and housing.  Getting their medications funded was a chronic problem.  People on Social Security Disability do not get a lot of money each month.  At one point the state instituted a spenddown.  That meant if you were hypothetically making $1,000/month in disability payments, the state could demand that you spend a significant portion of your disability on medications before they would add any additional money for that purpose.  It is not possible to live very well – if at all under those financial constraints.

One of our attempts to adapt was to use the company scholarship programs to get them assistance from pharmaceutical companies. With many patients that took a great deal of coordination and filling out forms.  It also required nursing time for both the paperwork and an additional effort to manage free samples of medication. We were often scrambling to find medications in urgent situations or because one of the authorizations had lapsed.  All the samples also had to be catalogued by lot number in case there was a recall of that medication. I did not look forward to dealing with the forms or samples but realized we had to do it or some people would not get the medication they needed.

Today the tables were turned and I was looking at an arbitrary payment or I would not get the medication.  I have also heard this story many times. People unable to pick up a needed medication because of the copay – leading to an abrupt discontinuation or attempting to stretch out an existing medication until the first of the year. You really cannot stretch out an apixaban prescription.  I have read many news stories about people trying to stretch out their expensive forms of insulin resulting in medical compromise and death. I was lucky enough to have savings to cover the $500.

What are the problems with the donut hole?  I can think of at least 4:

1: It kicks the can down the road (also known as cost shifting). When confronted with these large payments, I can imagine a lot of people tell the pharmacist to forget about it and drive away. In the case of this medication that can lead to strokes, pulmonary emboli, thrombosis of large blood vessels, and/or death.  Treatment typically involves hospitalization and possible nursing home placement.  Worst case scenario might involve death, prolonged rehabilitation and the hospital or nursing home eventually seeks all of a patient’s assets to cover the accumulating bills.  All of those events could have been prevented with the prescribed medication.

2:  The structure of this billing is an incentive for pharmaceutical companies to increase prices since that will cause benefits to hit the wall earlier and cause the patient to enter the coverage gap and to pay more cash.  In fact, it is an obvious way to extract the maximum payment from both the insurance company and the patient. 

3:  It is another classic example of how politicians work to subsidize businesses in a non-transparent way.  I know more about medical billing than most people but I had no idea I was turning over $500 today until I was advised by the pharmacist.  

4:  This is a clear example of why the Republican and Libertarian ideas about "free market" healthcare are false.  In other words, we would choose to pay for what we really wanted in a free market and pay those market prices.  Obviously, anyone would pay $500 (or more) to prevent a stroke - but not if it means not eating.  The politicians involved will say: “well yes – but there is no free market.”  Of course, there is no free market. The market is actively manipulated to optimize profits for health care companies and minimize guidance from physicians.  That is the political system in the US. No doctor that I know of wants to prescribe a medication and hear at some point that the patient could not afford to take it. Sometime that news is very slow and the prescribing doctor does not find out until they see the patient back in a couple of months.

Don't ever think that American "free market" capitalism is a big deal in health care.  It is a big deal when politicians work with businesses to give them access to your assets and allows other businesses with more focal products like pharmaceuticals to charge whatever they want. There is no better example than the donut hole.  The cost savings that these companies promised is not from cost containment, but from rationing and that is a big difference. 

 

George Dawson, MD, DFAPA

 

References:

Dusetzina SB. Relief in Sight - Estimated Savings under Medicare Part D Redesign. N Engl J Med. 2021 Dec 23;385(26):e93. doi: 10.1056/NEJMp2116586. Epub 2021 Nov 10. PMID: 34758246.


Supplementary 1:

I downloaded this list of medication arranged by total Medicare Part D expenditure from the CMS web site on 8/26/2023.  The most recent data they have is for 2021.  Medications for psychiatric indications do not appear until # 24 Invega Sustenna and #31 Latuda.  More than a little interesting because psychiatrists have endured medication based attacks for over 20 years - primarily on grossly inflated conflict of interest concerns, pharmaceutical company profits concerns, and drug safety.  Many of those attacks continue today even though most of these medications are inexpensive generics and much of the rhetoric has lost its punch.  These same critics apparently have no similar concerns about significantly more profitable and higher risk medications.  That adds to my commentary in this post



Supplementary 2:  The Medicare Part Drugs selected for HHS negotiations with manufacturers include the following.    There is some overlap with the most expensive medication listed above but Farxiga, Entresto, Enbrel, and the list of diabetes mellitus medication are not on that list. For more information on the list click on the link at the bottom of the table. 

Medicare Drugs Selected by HHS for Price Negotiations

 

Eliquis

 

Jardiance

 

Xarelto

 

Januvia

 

Farxiga

 

Entresto

 

Enbrel

 

Imbruvica

 

Stelara

 

Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill

 

 

https://www.hhs.gov/about/news/2023/08/29/hhs-selects-the-first-drugs-for-medicare-drug-price-negotiation.html

 

 

 

Graphic Credit:

Evan-Amos, Glazed Donut Public domain, via Wikimedia Commons"

Link:

https://commons.wikimedia.org/wiki/File:Glazed-Donut.jpgalt="Glazed-Donut

File:

https://upload.wikimedia.org/wikipedia/commons/thumb/a/a5/Glazed-Donut.jpg/512px-Glazed-Donut.jpg

 

 

 

 

 

 

 

 

Monday, November 4, 2013

Accountability - The Last Refuge of a Scoundrel

On April 7, 1775, Samuel Johnson said:  "Patriotism is the last refuge of a scoundrel."  His biographer had to clarify that Dr. Johnson was not talking about love of country but "pretend patriotism which so many have made a cloak for self interest".  We see the rhetorical application in American elections where politicians spend more time on discussions of their military records rather than issues relevant to any kind of plan that they have for the nation or solving any real problems.  Nunberg makes the observation that that the term can also mean an irrational bias favoring one's country and that Americans have applied the term indiscriminately at times. He also points out that it can be a word designed to put people on the defensive.  

If I had to pick a word in the medical field that has similar uses - it would be "accountability".  There has probably been no single word more responsible for facilitating managed care and recent government intrusions into the practice of medicine.  If you think about the premise of physicians being "accountable" to politicians and businesses - it is absurd on the face of it.  Taking a professional who has been trained to be accountable to an individual patient and who operates in a professional environment that specifies behavior toward that person and telling them that they are now going to be monitored by businesses with a goal of maximizing profits or politicians with numerous conflicts of interest and a clear interest in getting re-elected - is an ongoing disaster.  So  how has it happened?  I would suggest that most of it has to do with rhetoric.

Before I point out the medical applications of the accountability rhetoric let me say that I don't consider this to be specifically applied to medicine.  Accountability rhetoric is broadly applied by any person or group seeking some kind of political advantage.  An obvious example is education and teaching.  Politicians everywhere get a lot of mileage out of the idea that they are going to hold teachers accountable usually through standardized test scores.  It has become a pat answer to taxpayers concerns about the money being spent on education and low graduation rates.  In some states, the test scores are marched out every year and used to rank schools and teachers.  Never mind the fact that the school system that produces the top international performance scores does not work that way.  In Finland, a professional teaching culture is by far and away the most significant factor in their academic excellence.  In the book written about this the teachers say they would not tolerate the kinds of intrusions that are common in the United States.  These intrusions are all based on accountability rhetoric.  

In preparing for this post, I searched my e-mails from the past three years and found 1800 e-mails containing the word accountability.  Most of those hits were due to the Health Insurance Portability and Accountability Act (HIPAA).  If you read the long title of this act it was clearly doomed out of the box.  The major impetus for the PPACA (Obamacare) was health insurance portability suggesting that HIPPA was already a failure.  That did not deter legislators from including a Privacy Rule under HIPAA to supposedly crack down on privacy violations.  My read of the bill is that is actually broadens the use of anyone's medical information among all "covered entities" affiliated with your health plan.  In the meantime,  the Privacy Rule was so threatening that it almost immediately made it more difficult for the doctors doing the work to get access to data.  Was it necessary for physicians?  Absolutely not - physicians are trained in medical privacy and all broad breaches of medical privacy have been due to either hacking or business people losing computers with significant amounts of data.  Make no mistake about it - politicians will be there to make the most accountable people accountable and greatly decrease their efficiency.   A great example of the title of this post.

I have recently posted a number of examples of accountability rhetoric being used for political leverage against physicians.   It can be used by medical boards, advocacy organizations, state agencies, federal agencies, and specialty boards in addition to politicians.  I am going to focus on a single example and that is Medicare.  All of the information that follows is public and can be accessed through the Medicare link on the American Psychiatric Association's web site.  I picked it up on my Facebook feed but it disappeared and I had to call APA staff to figure out where it went.  I am very familiar with the history of Medicare quality initiatives because I was one of their quality reviewers for inpatient hospitalizations in Minnesota and Wisconsin in the late 1980s and 1990s.  If you look for inpatient psychiatry measures you will find that many of them (polypharmacy, multiple drugs from the same class, discharge planning) are unchanged from that era, despite the fact that the review organization was disbanded because it did not find enough quality or utilization problems to justify its ongoing existence.

The APA points out that Medicare now has a fee scale that takes into account "quality of care measures instead of just paying a standard fee for every procedure (CPT) code".  They have a Physician Quality Reporting System (PQRS) that requires psychiatrists to report on one measure in order to avoid a 1.5% penalty.  For 2013 that report has to be made on one Medicare patient.  This is described as an "incentive" to report on quality performance measures and of course a "penalty" for those who fail to report.   A managed care company would call it a "holdback" in that it is technically work that has been done, but the no cost way to turn it into an "incentive" is just to take it from the people doing the work and make it seem like they are rewarded with it later.

The document goes on to document "measures identified as pertinent to psychiatrists (along with their designated codes)".  If you are a psychiatrist read through these reporting measures and marvel at the morass of initial codes that I am sure are going to grow as this administrative nightmare continues.  The further problem is that Medicare/CMS clearly has the goal of comparing physicians and holding them accountable based on the fantasy that these measures actually mean something in clinical practice or even the world.  And if this list of measures is not enough, there are also 50+ page guidelines online like: "The American Medical Association-convened Physician Consortium for Performance Improvement - Adult Major Depressive Disorder Performance Measurement Set" that describes an additional set of performance measures.  The AMA is involved and if you click the link 2013 PQRS Quality Measures you can search on Major Depressive Disorder and find the following links.  You can download the 50+ page document from the top link.

Most people realize that physicians currently have some of the highest burnout rates of any group of professionals.  Those burnout rates are directly related to micromanagement even before we get to the level I just described in the above paragraphs.  The paradox that every physician is aware of is that these reportable measures are not valid objective markers and they are being promoted by bureaucrats who not only have no accountability but in the case of the mental health system of care are some of the same people who destroyed it in the first place.  Don't forget that Congress skewed insurance coverage of mental illness and addictions so badly that Senators Wellstone and Domenici had to write legislation in an attempt to correct that.  At this time the final form of their legislation is still pending.

So accountability has become the last refuge of scoundrels.  Be very skeptical of any politician or bureaucrat waving that flag.  It has little to do with reality and more to do with promoting their own self interests while creating a tremendous and unnecessary burden for the doctors they regulate.

George Dawson, MD, DFAPA

Nunberg G.  Going Nucular: language, politics, and culture in confrontational times.  Cambridge: MA Perseus Books Group, 2004.

For a complete analysis of political doublespeak as applied to medicine see:

Robert W. Geist:  Hot Air IndexPolitical/Commercial Double-speak Lexicon for Medicine