Impact of Medicare`s New Value
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Transcript Impact of Medicare`s New Value
Impact of Medicare’s New
Value-Based Payment Modifier
JENNIFER L. GWILYM, DO
HEALTH POLICY FELLOWSHIP
SEPTEMBER 20, 2013
Value-Based Payment Modifier
Replace Fee for Service Medicare (2015)
Complex calculation based on cost profiles and
quality data of physicians
http://www.acepnews.com/news/news-from-the-college/single-article/physician-value-based-payment-modifierstarts-in-2015/
Value-Based Payment Modifier
http://www.the-hospitalist.org/details/article/3782371/John_Nelson_Peformance_Key_to_Federal_ValueBased_Payment_Modifier_Plan.html December 2012
Medicare’s Financial Challenges
Covers “Reasonable and necessary” services
Problems: More beneficiaries qualify, healthcare is
more costly, fewer workers
CBO: Medicare Part A will be bankrupt in 2020
25% 65 and over living FPL in 1965 – now half of
beneficiaries live in poverty
Average lifespan 1965 was 70 y/o, now 78.5 years
Decreases in Tax Revenue Impact Medicare
Originally, payroll tax 2.9% of all wage earners, split
by employee and employer
2013 ACA mandates persons making over $250,000
will pay 3.8%
1965: 4.6
taxpayers
per retiree
2013: 3.7
taxpayers
per retiree
2030: 2.4
taxpayers
per retiree
New Physicians’ Cost profiles
Physicians with less than 10 years experience have a
13.2% higher cost profiles than physicians who have
been practicing for over 40 years
Possible reasons:
Newer and more expensive treatment modalities
More aggressive care due to lack of experience
Shorter relationships with their patients
Less-experienced may treat sicker patients or more noncompliant patients
Health Affairs, 2012
Experienced Physicians’ Practice Patterns
Physicians in practice longer
May provide lower-quality care
Posses less factual knowledge
Less likely to adhere to appropriate standards of care
May have poorer patient outcomes
Less likely to adopt new proven therapies
Exempt from recertification requirements
Systematic Review, 2005
Unintended Consequences of VBPM
Decrease access to new physicians to provide access
to quality care for patients
Force new physicians to modify their practice
patterns
New physicians in training programs would be
concerned with their cost profiles instead of learning
to practice medicine, resulting in less familiarity with
certain procedures
Decreased Medicare Reimbursement
Physicians will have to see more patients on a daily
basis, therefore, spend less time with each
Medicare reimburses 81% of private insurance
Sustainable Growth Rate (SGR)
Increased bureaucracy, additional paperwork, more
oversight, less autonomy = job dissatisfaction
Increase physician shortage-retire or switch careers
Deter people from pursing medicine as a career
Recommendations
Delay implementation of VBPM until guidelines are
written and simplified
Post on Health Compare Website
Encourage ‘parsimonious care’ – accept some
responsibility for the cost of care
Calculate cost profiles incurred during practice, not
during residency
Questions?
[email protected]
References
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http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/PhysicianFeedbackProgram/Background.html
Executive Summary-AOA. (2012, 9 4). 2013 Medicare physician Fee Schedule Proposed Rule Summary of AOA
Recommendations. American Osteopathic Association (AOA).
Value-Based Payment Modifier. (2012, 31 12). Retrieved from CMS.gov: http://www.cms.gov/Medicare/Medicare-Fee-forService-Payment/PhysicianFeedbackProgram/ValueBasedPaymentModifier.html
al., N. K. (2005). Systematic Review: The Relationship between Clinical Experience and Quality of Health Care. Annals of Internal
Medicine, 260-273.
Anita Arora, M. e. (2012). hat Kind of Physician Will You Be? Variation in Health Care and its Importance for Residency
Training. The Dartmouth Institute.
Bell, M. (2013, 3 4). Why Your Children Won't Have Medicare. Retrieved from Forbes.com:
http://www.forbes.com/sites/michaelbell/2013/03/04/why-your-children-wont-have-medicare/
CMS. (2012, 12 31). Medicare FFS Physician Feedback Program/Value-Based Payment Modifier. Retrieved from Centers for
Medicare & Medicaid Services: http://www.cms.gov/Medicare/Medicare-Fee-for-ServicePayment/PhysicianFeedbackProgram/Background.html
Cooper, R. a. (2009). States with More health Care Spending Have Better-Quality Health Care: Lessons About Medicare. Health
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Dunn, L. (2011, 8 31). AHA: Value-Based Purchasing Programs Fail to Meet Requirements Set Forth by ACA. Retrieved from
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Elliott Fisher, M. M. (2009, 2 27). Health Care Spending, Quality, and Outcomes More Isn't Always Better. A Dartmouth Atlas
Project Topic Brief. The Dartmouth Institute.
Fiegl, C. (2012, 9 17). Medicare Modifier Could Hit Unsuspecting Doctors with Pay Cuts. Retrieved from amednews.com:
http://www.ama-assn.org/amednews/2012/09/17/gvl10917.htm
Fisher ES, W. H. (1999). Avoiding the unintended consequences of growth in medical care: How might more be worse? JAMA,
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Jason Fodeman, M. (2011, 4). The New Health Law: Bad for Doctors, Awful for Patients. Retrieved from The Institute for
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Joseph P. Newhouse, P. a. (2013). Geographic Variation in Medicare Services. The New England Journal of Medicine.
References
Medicare Q & A. (n.d.). Retrieved from Budget.House.gov: http://budget.house.gov.settingtherecordstraight/medicare.htm
Mehrotra, A. e. (2012). Physicians With The Least Experience Have Higher Cost Profiles Than Do Physicians With The Most
Experience. Health Affairs, 2453-2463.
Neumann, P. J. (2012). Medicare's Enduring Struggle to Define "Reasonable and Necessary" Care. The New England Journal of
Medicine, 1775-1777.
News Staff AAFP. (2012, 8 8). Get the 4-1-1 on CMS' Proposed Value-Based Modifier payment. Retrieved from aafp.org:
http://www.aafp.org/online/en/home/publications/news/news-now/practice-professionalissues/20120808valuebasedprop.html
O'Reilly, K. (2012, 1 18). www.amednews.com. Retrieved from American Medical News:
www.amednews.com/apps/pbcs.dll.personalia/id=koreilly
Pollack, R. (2011, 11 1). STATEMENT ON INPATIENT VALUE-BASED PURCHASING PROVISIONS IN FINAL OUTPATIENT
PROSPECTIVE PAYMENT RULE. Retrieved from American Hospital Association:
http://www.aha.org/presscenter/pressrel/2011/110111-pr-opps.pdf
Richard A. Cooper, M. (2010). Health Care Reform From Myth to Practice. Annals of Surgery, 577-581.
Shaun Frost, M. S. (2012, 9 4). Society of Hospital Medicine. Re:CMS-1524-P, Medicare Program; Revisions to Payment Policies
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Staff, N. (2011, 8 31). AAFP to CMS: 2012 Physician Fee Schedule Needs Work . Retrieved from AAFP:
http://www.aafp.org/online/en/home/publications/news/news-now/government-medicine/20110831feescheduleltr.html
Stein, R. (2012, 1 3). Should Doctors Be 'Parsimonious' About Health Care? Retrieved from www.npr.org:
http://www.npr.org/blogs/health/2011/12/30/144485098/should-doctors-be-parsimonious-about-health-care
Westgate, A. (2012, 7 10). Major Changes Coming to Physician Reimbursement. Retrieved from Physicians Practice:
www.physicianspractice.com/print/131995
Westgate, A. (2012, 4 20). Three Problems with Medicare's Value-Based Payment Modifier. Retrieved from Physicians Practice:
www.physicianspractice.com/print/132265