The Affordable Care Act in 2014 and Oncology Kavita K. Patel MD, MS
Transcription
The Affordable Care Act in 2014 and Oncology Kavita K. Patel MD, MS
The Affordable Care Act in 2014 and Oncology November 2013 Kavita K. Patel MD, MS Fellow and Managing DIrector Brookings Institution @kavitapmd © The Brookings Institution. All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means without permission in writing from the Brookings Institution, 1775 Massachusetts Avenue, N.W., Washington, D.C. 20036 (Email: magnuson@brookings.edu). Spending on health care driving US federal deficits Source: 2011 CBO Long-Term Budget Outlook 2 Cancer System • 1.5 million newly diagnosed patients annually and 13 million cancer survivors • Over 500,000 annual deaths-leading cause of lost life years • 11,000 medical oncologists, 1,500 radiation oncologists – PCPs, surgeons, other specialists with significant role • Care is complex and fragmented – In 2000, Medicare patients with lung cancer saw median of 11 physicians in 6 different practices 3 Cancer health care system needs coordinated leadership of stakeholders IOM 1999 Report: Ensuring Quality Cancer Care “Like other chronic illnesses, efforts to diagnose and treat cancer are centered on individual physicians, health plans, and cancer centers. The ad hoc and fragmented cancer system does not ensure access to care, lacks coordination, and is inefficient in its use of resources. The authority to organize, coordinate, and improve cancer care services rests largely with service providers and insurers.” Over a decade later, a general lack of coordination and communication remains. Through interviews of 23 peer-nominated experts, a National Cancer Institute commissioned report identified the major barrier to high quality cancer care to be wide variations in care due to a lack of standardization for diagnosis, treatment, and surveillance. Other recommendations included the use of navigators to coordinate care among multiple caregivers and electronic records to reach all points of care. -Aiello Bowles. Cancer 2008 4 Gaps in quality of care driven partially by lack of patient-centered approach • Extensive documentation of variation and gaps in quality of care in peer-reviewed literature and multiple IOM reports • Adherence to guidelines typically around 65-85%, worse for palliative and supportive care • Very poor information sharing and care consistent with patient preferences – 60-80% of patients receiving palliative treatments believe cure is possible (NEJM 2012;367:1616-1625) – Overwhelming majority of studies indicate more patient-centered care leads to substantially less aggressive care and lower costs 5 Cancer care costs are significant and growing • Reportedly 10% of spending across payers – Difficult to define cancer specific costs – Using 2011 20% CCW- 15% of beneficiaries have a cancer claim and represent 23% annual spend ($15,839 PBPY) and 1.6% of beneficiaries also had >$500 chemotherapy costs representing 5.1% of annual spend ($32,225 PBPY) • Growth reported at approximately 10-15% in commercial population – Analysis of 2008 and 2011 20% CCW files indicates growth similar to overall Medicare population among chemotherapy utilizers (per capita growth ~11% from 2008-2011) with high growth in hospital outpatient and Part D (32% and 30%) 6 Chemotherapy utilizers costly subpopulation of cancer patients Part B Patient Populatio Chemo Use n 2011 Benes All Medicare Combined <$500 All Cancer Payment Growth 2008-2011 >$500 32,553,065 100.0% 31,918,170 98.0% 2.8% $342,752,730,8 79 $322,293,513,9 95 5,031,130 15.5% Payment Growth 2008-2011 4,507,065 13.8% 12.1% $79,690,467,18 100.0% 5 $62,344,254,68 89.6% 1 Payment Growth 2008-2011 524,065 1.6% 9.9% $17,346,212,50 10.4% 4 Combined <$500 Sum 2011 Total annual Pct Pct Pct Mcare Cancer Pct Mcare Cancer cost 2.1% -1.5% Mean Total Cost of Care 100.0% $10,529 94.0% $10,097 9.1% 23.3% 100.0% $15,839 18.2% 78.2% $13,833 7.7% 5.1% 9.4% 21.8% $33,099 11.1% 7 7 Chemotherapy and inpatient use drivers of spending in chemotherapy utilizers, hospital outpatient and Part D high growth Mean Total Mean Mean Cost of Inpatien Mean Outpatie Mean Care t Carrier nt Part D Patient Populatio n All Medicare Nonchemo users Payment Pct Total Growth 2008-2011 All Cancer Nonchemo users 2011 Benes 32,553,06 5 $10,529 31,918,17 0 $10,097 $3,956 $1,979 $1,110 $715 $363 $555 $335 $1,084 $19 100% 39% 20% 11% 7% 4% 5% 3% 11% 0% 9.1% 3.1% 7.4% 24.5% 18.2% -6.4% 7.0% 22.5% 20.3% 44.6% 4,507,065 $13,833 $5,495 $3,288 $1,661 $768 $410 $619 $405 $1,187 $108 100% 40% 24% 12% 6% 3% 4% 3% 9% 1% 7.7% 1.0% 7.1% 22.3% 25.6% -1.5% 6.9% 9.2% 18.5% 65.7% 524,065 $33,099 $11,910 $9,478 $6,090 $1,272 $885 $1,110 $768 $1,587 $6,637 36% 29% 18% 4% 3% 3% 2% 5% 20% 3.3% 8.4% 32.4% 29.7% 5.6% 3.0% 8.4% 20.0% 22.2% 2.8% Mean DME Mean Mean Mean HHA Hospice SNF Mean Total Chemo 5,031,130 $15,839 Payment Pct Total Growth 2008-2011 Payment Chemousers Pct Total (>$500/yr) Growth 2008-2011 2.1% 100% -1.5% 11.1% Source: Analysis of CCW This information has not 20% been files publicly disclosed 8 8 Current payment system problematic Current payment system • • • Majority of revenue and margin from buy-and-sell chemotherapy Poorly reimbursed for discussions, complication management, coordination Higher payment for equivalent services in hospital outpatient setting exacerbated by 340B discounts to hospitals 9 9 Medical oncology practices rely on drug margins to cover poorly reimbursed services • Oncologists have high overhead practices, with high cost and margin in chemotherapy (Average revenue/physician = $5 million) – Creates incentive to select most expensive therapy Drug margin = total E&M revenue = Chemo admin revenue Cost of drugs 64% of practice expens e Towle E. Journal of Oncology Practice. Nov 2012 8(6) 10 10 Changes in payment policy contribute to providers’ desire for new payment model • In 2005, Medicare transitioned from reimbursing AWP to ASP+6%, substantially reducing margins • Community oncologists have argued reduced drug margin and competition from hospitals straining practices – Hospital outpatient reimbursement increasing from ASP+4% to ASP+6% in FY2013 – Hospitals and affiliate sites receiving discounts through HRSA 340B program tripled from 2005-2011 – Studies by Avalere and Milliman suggest total cost of care higher for patients treated in hospital outpatient setting • Impact of sequestration high concern 11 11 Incentives driving selection of higher cost therapies? • Evidence that financial incentives result in costlier drug selection mixed • Impact may be greater for later line therapies • Difficult to assess pathways through claims-based analyses • Systematic reporting/capture important for both understanding and managing issue • Rapid development of novel treatments/diagnostics and lack of clear recommendations or comparative evidence impossible for physicians to assimilate 12 12 Variation in Drug Costs For Guideline Adherent Regimens: Metastatic Non-Small Cell Lung Cancer Name Pemetrexed/Cisplatin1-4,6 Total Monthly Total Cost Monthly Chemotherapy Chemotherapy (12 Weeks) Cost Drug Cost Drug Cost $16,913.37 $6,105.91 $19,594.13 $7,073.69 Gemcitabine/Cisplatin1-6 $9,745.83 $3,518.35 $13,303.24 $4,802.61 Docetaxel/Cisplatin1-6 $8,916.64 $3,219.00 $11,647.20 $4,204.77 Irinotecan/Cisplatin1-5 $934.60 $337.40 $7,984.63 $2,882.54 Vinorelbine/Cisplatin1-6 $519.45 $187.53 $4,929.03 $1,779.43 Etoposide/Cisplatin1-5 $217.06 $78.36 $4,453.86 $1,607.89 Vinblastine/Cisplatin1-5 $183.97 $66.41 $3,741.38 $1,350.68 Paclitaxel/Cisplatin1-6 $518.45 $187.17 $3,578.70 $1,291.95 1 National Comprehensive Cancer Center (NCCN), 2 American College of Chest Physicians, 3 Cancer Care Ontario (CCO), 4 Alberta Health Services, 5 Australian National Health and Medical Research Council, 6 National Institute for Health and Clinical Excellence (NICE) 13 Source: Bach P. Presentation to Cancer Center Business Summitt: Will ACOs bundle 13 off oncology? Present State of Cancer Care Delivery Fragmented Cancer Care Delivery Coordinated, High-Quality Cancer Care Misaligned Payment Incentives Newly Aligned Payment Incentives 14 Various Payment Reform Options Bundling/ Aggregation Across Providers Comprehensive Capitated Payment Episode Payment for Physician and Hospital Services Episode Payment for Physician Services (Oncology, Radiology, Surgery) Value-based Pathways Traditional FFS Chemotherapy Management Fee Patient-Centered Medical Oncology Homes Case-Based Physician Payment 15 Alternative 2: Oncology Patient-Centered Medical Home -Substantial structural change required for accredited distinction Care Delivery Oncology PatientCentered Medical Home -Additional oncology-specific modifications -Case-management fee Payment Potential Unintended Consequences -Additional infrastructure development payment -Minimal provider savings achieved 16 Patient-Centered Medical Home Care Delivery Structure • Goal – Improve the quality, coordination and patient-centeredness of care – Reduce emergency department visits and hospitalizations • Changes to structure of care delivery: – See NCQA criteria for Level III Patient-Centered Medical Home and oncology-specific goals in handout – In action, above criteria are met in the following ways: • Adherence to clinical pathways • Patient navigators/care coordinators in place • Enhanced hours and augmented access to clinicians , telephone triage • Patient engagement and empowerment • Practice assumes primary responsibility for coordination of all cancer-related services 17 Patient-Centered Medical Home Payment Structure • Goal – Cost savings from better coordinated, more patient-centered care – Minimize unnecessary utilization of services • Payment structure – Case management fee • Currently non-standard among pilots • Overlaid on fee-for-service • Intended to reimburse new delivery features of the model: extended hours, medication management, patient education, telephone triages service, etc. – Infrastructure development payment • Defray cost of practice transformations • Conditions unclear • Payment conditions – Initiation on diagnosis, extends into survivorship phase of care – Must meet performance and outcomes benchmarks – Minimal risk, substantial increase in provider accountability18 Patient-Centered Medical Home Advantages and Disadvantages -Patient-centered, coordinated care -Includes use of pathways -Incorporates quality targets -Positive incremental shift from feefor-service -Shifts some current fee-for-service payments -Payment tied to quality and performance -Case-based payment -Payment for practice transformations -Moderate structural changes necessary -Higher implementation costs -Potential administrative burden -Payment overlays on fee-for-service -Minimal change in provider incentives 19 Illustrative Clinical Example • • • • Patient presents for a new visit upon initial diagnosis of cancer – Standard flat payment level with no adjustment for type of cancer or other associated factors (one time payment) with practice required to demonstrate minimum competencies at initial visit Patient with cancer has an estimated six month duration of treatment (six treatment months) – PMPM established based on length of treatment which is predetermined by type of cancer/stage – PMPM fixed no matter what length of treatment is Patient experiences complications which extend usual treatment length; complications arise which change course of treatment – PMPM could terminate OR continue with risk adjusted payment levels Potential payment for: – Transitions from oncology to primary care – Non-treatment month payments (pt still under care of clinic primarily but not receiveing treatment) 20 Moving forward: alignment across payment reforms • • • Common core performance measures across reforms and a rapid but feasible pathway for improving measures and the underlying outcomes of care Timely and consistent methods for sharing underlying data with providers to improve performance Evolve and integrate rapid evaluation methods based on common measures Medical Homes for Specialites • Supports care coord, prevention, disease management • Rewards reductions in oncology carerelated cost trends Bundled Payments for Specialty/Intensive Care or PAC • Combine payments across providers/ settings for specific episodes to promote coord & efficiency • Linked to quality measures to support accountability Accountable Care (System-wide) • Reimburses population-level improvements in quality and overall per-capita costs • Encourages coordination across the continuum of care • Can reinforce/ support “piecewise” accountablecare reforms 21 Appendix: Current Pilots UPMC/Highmark • Pathways for breast and non-small cell lung cancer-now expanded 500 providers in 8 states • Results (Presentation to CMS): – Breast (Total cost growth rate: 7% UPMC, 16% Control; Hospitalization rate -15% UPMC, 2% Control); – Lung (Total cost growth rate: 1% UPMC, 6% Control; Hospitalization rate -12% UPMC, 4% Control) • UPMC has proposed similar model to Medicare 22 Appendix: Current Pilots Priority Health/ION/Physician Resource Management • Pays drugs at cost and provides case management fee. Includes pathways for 4 high volume conditions and care management/navigation services. Shared savings for reduced ED/inpatient use • Start: 2011 • Results: ? • ION proposed similar model to CMS 23 Appendix: Current Pilots CareFirst/Cardinal Health • Generation 1: Fees for pathway adherence; Generation 2: shift reimbursement from drugs to cognitive, “align incentives”, CQI, end-of-life initiative • Start: 2008; Gen 1-230 providers; Gen 2-31 providers • Pathway adherence Gen 1 improved from 77% to 92%, estimated $8.5 million savings net of fees (J Clin Oncol 28:15s, 2010 (suppl; abstr 6013)) • Gen 2 – preliminary results show some savings but too early to tell (Feinberg AJMC 2012 18(6)) • Cardinal Health has proposed a similar model to CMMI 24 Appendix: Current Pilots Aetna-US Oncology-Innovent • Pathways program with nurse call-center, advanced care planning initiative • Start: 2010 • Preliminary results reduction ER (40%), IP admits (17%), IP days (36%) (Hoverman J Clin Oncol 30, 2012 (suppl 34; abstr 227)) • US Oncology has proposed a similar model to CMMI 25 Appendix: Current Pilots UnitedHealthCare Bundle • Bundled payment for professional services, drugs are paid at cost • 5 oncology groups • 19 clinical episodes in breast, colon, and lung cancer • Start: 2010 • Results: ? 26 Appendix: Current Pilots Wilshire Clinic/WellPoint • Pathways, data sharing, care management, end-of-life program • Start: August 2011 • Results: “Substantial savings” though not quantified http://www.valuebasedcancer.com/article/wilshire-oncology-medical-homepilot-reengineering-cancer-care 27 Appendix: Current Pilots Consultants in Medical Oncology and Hematology • NCQA Level III Accredited Medical Home • Start: ~2006 • Results: Reported 65% reduction ED visits and 43% hospitalizations (Eagle Oncology 2011 25:7) 28 Appendix: Current Pilots NCQA-COA • 10-15 practices in Pennsylvania to pilot CMOH model sponsored by NCQA and Community Oncology Alliance • Start: January 2013 • Results: ? • NCQA has PCORI grant to test model 29 Appendix: Current Pilots Florida Blue-Baptist and Moffitt • ACO arrangement for total cost of cancer care-shared savings if quality thresholds met • Intervention: Predominantly data sharing and pathway development • Start: Baptist May, 2012; Moffitt January, 2013 • Results: ? 30 Appendix: Current Pilots Florida Blue/Mobile Surgery International • Bundled payment for prostatectomy • Start: 2011 • Results: ? 31 Appendix: Current Pilots Humana/21st Century Oncology • Bundled payment for courses of radiation therapy for 13 specific diseases • Start: August 2012 • 21st Century has proposed similar model to CMMI 32 Appendix: Current Pilots Michigan BCBS/Quality Oncology Practice Initiative • Statewide consortium of oncologists to measure and improve oncology care-Michigan BCBS pays for data collection • Start: 2009 • No measurable effect at 2 year assessment (Health Affairs, April 2012 31:4) 33 Thank You! © The Brookings Institution. All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means without permission in writing from the Brookings Institution, 1775 Massachusetts Avenue, N.W., Washington, D.C. 20036 (Email: magnuson@brookings.edu).