Memorial Day

Memorial Day

On Memorial Day, we pay tribute to the soldiers, sailors, and airmen who have fallen in defense of the United States, our country, as well as those who now are in service. At 3 pm today, I hope that everyone will observe the National Moment of Remembrance. In particular, I will remember my cousin Army Capt. Eric T. Paliwoda, 4th Infantry Division, West Point Class of 1997, who was killed in combat in Iraq on January 2, 2004. We will never forget.

Weekend Update / Miscellany

  • Good news! The House of Representatives has dropped its plan to statutorily require health plans to cover all mental illnesses identified by the American Psychiatric Association in its Diagnostic and Statistical Manual according to Workforce Management. This compromise with the Senate increases the chances that a stronger mental health parity law will be enacted this year.
  • A bi-partisan group of Representatives produced the outline of a House health information technology bill. Meanwhile, the Congressional Budget Office produced a report concludes, according to Government Health IT magazine, that

    “there still are many unknowns about the adoption of health information technology, including what its true costs and benefits might be.

    The report, “Evidence on the Costs and Benefits of Health Information Technology,” does not recommend what Congress should do about health IT, but it states that “if policymakers are interested in promoting health IT, some version of a requirement or an explicit or implicit penalty for providers who fail to adopt health IT is likely to be more cost-effective for the federal government than a subsidy.”

  • The National Alliance for Health Information Technology forwarded to the American Health Information Community a report including consenus definitions of the following six terms
  • Electronic Health Record;
  • Electronic Medical Record;
  • Health Information Exchange;
  • Health Information Organization;
  • Personal Health Record; and
  • Regional Health Information Organization.
  • The Federal Trade Commission reported to Congress last week that “Brand name pharmaceutical companies struck 14 deals that led to delayed sale of cheaper generic drugs in the 2007 fiscal year” according to Reuters. The FTC is encouraging Congress to enact a law restricting this practice which the FTC considers to violate antitrust laws.
  • On Friday, Medicare began denying electronic claims that included any provide identifying numbers other than the HIPAA National Provider Identifier and the employer or tax identification number. CMS, which enforces HIPAA standards transaction and identifier rules, advised health plan covered entities to similarly terminate their NPI contingency plans.

Google launches its PHR site

The internet giant, Google, launched its personal health record site on Monday. As I am a Google subscriber, I bit and signed in. I was presented with terms of service to approve. Here are some interesting tidbits from that agreement:

4. Use of Your Information If you create, transmit, or display health or other information while using Google Health, you may provide only information that you own or have the right to use. When you provide your information through Google Health, you give Google a license to use and distribute it in connection with Google Health and other Google services. However, Google may only use health information you provide as permitted by the Google Health Privacy Policy, your Sharing Authorization, and applicable law. Google is not a “covered entity” under the Health Insurance Portability and Accountability Act of 1996 and the regulations promulgated thereunder (“HIPAA”). As a result, HIPAA does not apply to the transmission of health information by Google to any third party.

plus indemnification of Google, exclusion of warranties, and limitations on Google’s liability.
Needless to say, I did not click any further. The New York Times reports on the launch here.

Weekend Update / Miscellany

  • Modern Healthcare Online published an interesting, wide ranging interview with HHS Secretary Mike Leavitt. Secretary Leavitt discussed the problems created by the “‘silo syndrome.’ Everything is paid for separately. You can’t possibly expect to get any kind of efficiency or coordination, and we have all kinds of bad things that happen as a result, not to mention dramatic amounts of overpayment.” It’s therefore not surprising that the Centers for Medicare and Medicaid Services announced last week “a new demonstration for hospitals to test the use of a bundled payment for both hospital and physician services for a select set of episodes of care to improve the quality of care delivered through Medicare fee-for-service.”
  • Government Health IT Magazine reported that following privacy protections crafted by Sen. Patrick Leahy (D Vt) will be added to the Senate’s Wired for Health Care Act:

    • Eliminate what Leahy called a loophole in the original bill that would have allowed operators of personal health information databases to give sensitive health records to virtually anyone under the Health Insurance Portability and Accountability Act Privacy Rule.

    • Ban certain health care providers from using or disclosing health records for marketing purposes.

    • Direct the HHS Secretary to submit a report to Congress recommending privacy and security protections for personal health records.

    • Give patients the right to inspect their e-health records and receive electronic copies of the records. Under the HIPAA Privacy Rule, individuals have a right to see their medical records, but there is no clear right to electronic ones.

    • Strengthen congressional oversight over federal health privacy compliance and enforcement of the HIPAA Privacy Rule.

    However, the article also reports that it is unlikely that Congress will pass the bill this year.

  • The Federal Times reports on a new FAR Council proposal to expand the proposed contractor code of ethics rule to commercial items and contracts performed in foreign countries. The dollar threshold for application of the rule is $5 million.
  • Looking forward, Friday May 23 is that date on which Medicare will begin rejecting provider claims that include any provider identifier other than the HIPAA National Provider Identifier and the tax identification number.

Mid-week Miscellany

  • On May 12, Rep. Henry Waxman (D Calif), chairman of the House Oversight and Government Reform Committee, and Rep. Danny Davis (D Ill.), chairman of the Committee’s Federal Workforce Subcommittee, sent letters to OPM Director Linda Springer and Acting CMS Administrator Kerry Weems asking for an explanation of why approximately 200,000 federal annuitants covered by the FEHB Program are enrolled in Medicare Part D and why FEHB plans are not coordinating benefits with Medicare Part D. The representatives requested a reply by Friday May 16.

    It’s my understanding that many of these annuitants are so-called dual eligibles who were automatically enrolled in Medicare Part D because they also are covered under Medicaid. For others, it’s a personal choice. As FEHB plans carriers hold the insurance risk for their plans, they have every reason to coordinate benefits with Medicare.

  • HHS’s Office for Civil Rights, which is responsible for the HIPAA Privacy Rule, has created a web page of compliance and enforcement statistics.
  • A Medco study concludes that 51% of insured Americans regularly take at least one drug for a chronic health condition according to this AP report.
  • Modern Healthcare Online reports that

    Average annual medical costs increased by 7.6%, or $1,109, for the typical American family of four from 2007 to 2008, according to the fourth annual Milliman Medical Index. The rate of increase was lower than the previous year—8.4%—and also represented the lowest rate of the past five years, according to the index.

Weekend Update / Miscellany

Happy Mother’s Day!

  • On May 8, the House Committee on Energy and Commerce’s Oversight Committee held a hearing on direct to consumer advertising of prescription drugs, in particular television advertising. According to an AP report, “Stupak, the oversight subcommittee chair, said he is considering new restrictions to ‘protect American consumers from manipulative commercials.'”
  • Tragically, as the AMA News reports that disciplinary actions against doctors are down for the third straight year, the Las Vegas Sun reported that

    The Regional Health District of Southern Nevada announced today [May 8] that 77 cases of potential hepatitis C cases have been identified from those who have been tested since an outbreak was announced in January. The 77 cases are not acute hepatitis C, said Jennifer Sizemore, a spokeswoman for the health district. Of the 49,000 people notified by health officials, these 77 people were then interviewed and identified, she said. To date there have been eight cases of acute hepatitis C cases identified with links to a clinic that reused syringes and provided anesthesia to two or more patients from single dose vials. Seven of them have been linked to the Endoscopy Center of Southern Nevada operated by Dr. Dipak Desai, who is not allowed to practice medicine and is under investigation by state and local authorities. Seven of the acute hepatitis C cases have been linked to the clinic at 700 Shadow Lane and the eighth to another clinic owned by Desai.

  • A Congressman, who is an MD, has refused FEHB coverage according to Scientific American.
  • Government HIT magazine reports on a recent Brookings Institution conference on e-prescribing. I did not realize that Dr. Mark McClellan, the former CMS administrator, had landed at Brookings. Interesting stats from the article:

    Although e-prescribing is increasing, it is still practiced by fewer than 85,000 of the country’s more than 560,000 doctors. The holdouts tend to physicians in smaller practices who lack technical expertise.

    In some cases, their local pharmacies do not accept e-prescriptions, although most large chain drug stores are equipped to handle them. Small, rural drug stores are less likely to be able to fill e-prescriptions.

Midweek Miscellany

  • The AIS Health Business Daily featured an article suggesting that FEHB enrollees are migrating to lower premium plans. In fact, that trend has been a feature of the FEHB Program for over 25 years. In 1981, the Reagan Administration forced carriers to cut benefits which made lower premium plans more attractive. That action result in a mass migration of enrollees into lower premium plans. The pace has slowed but it’s never stopped.
  • Govexec.com includes a column on the debate on Capitol Hill over whether or not to increase the dependent child age limit from 22 to 25. The column notes that

    While no official cost estimate has been calculated, Daniel Green, deputy associate director of the Office of Personnel Management’s Center for Employee and Family Support Policy, said covering dependents already in FEHBP for an extra three years could cost approximately $200 million per year. He said the estimate was calculated by multiplying the number of dependents in the 22-to-25 age bracket (245,000) by the annual cost of health care for a young adult ($1,640).Green added that the government would take on $160 million of the additional cost, with the remainder paid by enrollees through increased premiums.But Kelley and John Gage, president of the American Federation of Government Employees, argued that increasing the dependent age by three years is likely to decrease premiums, since infusing a large number of young and generally healthy adults into a risk pool of typically older or retired federal employees should come at very little to no cost.”It’s not a matter of simple math,” Gage said. “I can’t believe that this is a simple matter of multiplying the number of potentials times the cost for young adults, who should be very good at underwriting risk.”

    Give me a break. I am not an actuary, but common sense tells you that savings only occurs when FEHB plans add young, healthy employees who pay the full premium. However, as OPM points out, adding members to an existing family enrollment only increases the cost of the enrollment.

  • Taking a page out of the federal government’s Service Contract Act playbook, Aetna is planning to require its subcontractors to offer health benefits to their employees according to this Boston Globe report.
  • USA Today reported this week on identity thiefs who prey on medical records.

Interesting developments

  • Wal-Mart announced today that it is expanding its $4 generic drug pricing program to six additional drugs, is offering the generics at $10 for a 90 day supply, and is selling more than 1,000 over the counter drugs for $4. A Goldman Sachs analyst, according to the AP, opined that these changes would not adversely impact CVS/Caremark financially.
  • The American Medical Association is militating against Medicare’s never events policy according to the AMA News.
  • The AMA News also justifiably warns doctors that beginning May 23 health plans and Medicare will deny electronic claims that are include any provider ID numbers other than the HIPAA mandated National Provider Identifier. (The tax identification number is OK.) “Near the end of April, about 20% of all Medicare claims were being submitted with NPIs only, according to the Centers for Medicare & Medicaid Services.”