May 2012 FLI Expanding Access and Choice for Your Patients: A Description of How the Affordable Care Act is Important to the Naturopathic Physician Hon. Deborah Senn May 5, 2012

3 Minute University The Affordable Care Act Minute #1       Reforming the current insurance market  Pre-existing conditions

2014

(exc. kids)  Portability

2014

Guaranteed renewability No lifetime policy limits

2014 2010

Annual limits--restricted

2010

Dependent Coverage (under 26)

2010

No Rescission

2010

High Risk Pools 2010

Minute #2 Insurance Reforms cont.

        Medical Loss Ratio and rate review

2011

Independent appeal process

2010

Coverage of Preventive services

2010

Close Medicare donut hole

2010

Essential Benefits Package*

2011

Sec. 2706 Anti-discrimination*

2014

Sec. 3205 Medical Homes*

2014

Workforce Definition*

Minute #3 Expanding coverage--expanding the pool   Exchanges—established by states

2014

Exchanges provide tiers of basic health services: bronze, silver, gold, platinum,  Individual mandate 2014 (penalty if not covered) linked to: subsidies in the exchange  Tax provisions--many

New Law effective January 2014 Section 2706

 A group health plan and a health insurance issuer offering group or individual health insurance coverage shall not discriminate with respect to participation under the plan or coverage against any health care provider who is acting within the scope of that provider ’ s license or certification under applicable State law.

New Law con

’

t.

 This section shall not require that a group health plan or health insurance issuer contract with any health care provider willing to abide by the terms and conditions for participation established by the plan or issuer. Nothing in this section shall be construed as preventing a group health plan, a health insurance issuer, or the Secretary from establishing varying reimbursement rates based on quality or performance measures.

”

Washington state

law

: 1993

 (1) Every health plan delivered, issued for delivery, or renewed by a health carrier on and after January 1, 1996, shall: (a) Permit every category of health care provider to provide health services or care for conditions included in the basic health plan services to the extent that: (i) The provision of such health services or care is within the health care providers' permitted scope of practice; and

Implementation Misconceptions

        Too expensive (statement of Blue Shield counsel) How to credential Challenging law in court Excluding entire groups of licensed providers Limiting on number of visits or scope of practice Capping dollar amount of coverage Inadequate network of providers PCP Referral requirements for CAM only

CAM Provider Impact

     Problem provider Contracts Using subcontractors (sometimes illegally) Failure to comply with state contract req. Failure to notify providers of duties and responsibilities under the contract Failure to disclose termination or audit procedures or have an adequate grievance procedure    Illegal termination practices No provider manual Untimely payments--burdensome documentation

Good News-Regence study Competition and Cost advantage

 There is significant potential to control costs with alternative healthcare. There is mounting evidence that practitioners of alternative therapies can be highly cost effective relative to conventional providers at treating several increasingly pervasive chronic and stress related conditions

Regence Study cont.

 (savings of 30% and more have been found in recent European outcome studies) such as heart disease chronic pain, respiratory illness, diabetes…which are major cost drivers in the health care system and for which conventional medicine has less cost effective treatments.

More Recent Studies

 CAM users averaged $1,420 less in annual health care expenditures than nonusers in patients with the heaviest disease burden  Corporate health management programs associated with prevention and wellness showed a 26% reduction in health care costs and a $5.81-$6 returned for every $1 invested 4

More Recent Studies cont.

 Median per-visit expenditures were $39.00 for CAM care and $74.40 for conventional outpatient care in Washington. The total expenditures per enrollee were $2,589, of which only $75 (2.9%) was spent on CAM.

 A systematic review of cost benefit analyses of CAM compared to conventional care revealed 42% of the published studies showed cost savings

The Way Forward

       Where is the process?

Rules HHS Labor Treasury Essential benefits package Exchanges