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Chaos Continues At HealthCare.gov

 

Stanley Feld M.D.,FACP,MACE

http://wtvr.com/2015/02/20/obama-administration-extending-health-care-enrollment-deadline/

Chaos continues at healthcare.gov with the sudden departure of QSSI. QSSI was a minor hub manger of healthcare.gov in early 2014 when the site was failing. It became the major integrator and senior advisor.

CGI was the major integrator at first.  Michelle Obama’s college friend was a principle in CGI. The friend obtained the non-bid CGI contract. CGI was dismissed as the web site disaster unveiled itself. The contract was for more than $600 million dollars.

QSSI was hired as the senior advisor and the web site’s prime integrator.

QSSI is a subsidiary of Optum the IT healthcare arm of healthcare insurance company United Healthcare. 

 Andy Slavitt, a senior executive at Optum, joined CMS in June 2014. He had subsequently been heralded by CMS as the savior of healthcare.gov

He received a rare waiver from federal ethics rules at the time which allowed him to be involved in contracting issues involving Optum and the United Healthcare Group.

When Slavitt joined CMS, a little known loophole in government hiring practices permitted him to pocket $4.8 million in tax-free money when he joined the government agency.”

Andy Slavitt was initially hired as deputy administrator of CMS. He was promoted to acting administrator when Marilyn Tavenenner left.

There has always been a question of conflict of interest between Slavitt , Optum and United Healthcare. It is not clear if Andy Slavitt is still at CMS.

Republican Sens. Chuck Grassley of Iowa, and Orrin Hatch of Utah, asked CMS and United Health Group in June 2014 about Slavitt’s potential conflicts of interest.

The answer to Senator Grassly and Hatch’s questions were never made public.

A scandal occurred recently when 800,000 Obamacare enrollees received incorrect subsidy information on the 1095-A tax forms sent by the federal exchange healthcare.gov.

Some enrollees were mistakenly told they received too large a subsidy, while others were told their subsidy was too small.

Publicity of this error was buried in the news that the Obamacare enrollment period for 2015 healthcare insurance was being extended until April 30th, after initially being extended to February 15th.

 The real reason for the extension appears to be poor enrollment in healthcare.gov despite the administration bragging that the enrollment was great.

 One month later Optum suddenly quit.

An Optum spokesman said,

 “Having achieved the goal of making HealthCare.gov a stable, reliable platform for people seeking health coverage, Optum will not seek to continue our role as senior adviser to HealthCare.gov,”

This isn’t the first time this has happened. Jeff Zients took over when healthcare.gov was launch in October 2013.

In December 2013 Zients, who Obama had turned to in the past to fix sticky issues, had “made it clear that he was not going to stay on the job past December.”

Kathleen Sebelius said in a blog post,

Today, the site is night and day from what it was when it launched on October 1. I am very grateful for his service and leadership," Secretary of Health and Human Services.”

The Obama administration then announced that former Microsoft executive Kurt DelBene took over the operation of HealthCare.gov in December 2013 in consultation with Marilyn Traverner and QSSI.
 

Somewhere in 2014 CGI was rehired and DelBene left. QSSI remained.

CGI was then relieved in December 2014.

Accenture was hired. In December 2014 Accenture was rehired with a $563 million dollar contract to run healthcare.gov.

“The Centers for Medicare and Medicaid Services (CMS) in January dropped a key contractor on the project, CGI Federal, and selected Accenture Federal Services to rehabilitate and build out the portal.”

Suddenly, in May 2015, QSSI quit.

This all seems fishy to me. The price tag of more than $1.1 billion dollar for healthcare.gov seems very high. The web site is still incomplete. The healthcare insurance premiums are unaffordable and rising.

Consumers and physicians do not approve of Obamacare.

State exchanges are losing money they cannot afford. There is little evidence that the electronic medical records program is increasing the quality of medical care.

The individual health insurance market through healthcare.gov is a mess.

The public does not know how many people are uninsured, have become uninsured and do not have access to medical care.

Obamacare has been delayed in the group market. Private insurance has increased in price. Large corporations are increasing part-time employment to avoid paying for employees’ healthcare insurance and to avoid federal government penalties.

Yet, the Obama spin machine is trying to influence the public and the Supreme Court through the media saying the subsidy should be extended to the Federal Health Exchanges.

It all seems crazy to me. There is a better, more efficient way to help Americans purchase insurance and be protected in case of serious illness.

It is not a government run single party payer system. The government cannot even build an efficient website.

  The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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Double Digits Increases In Obamacare Insurance Rates Proposed

Stanley Feld M.D.,FACP,MACE

Thirty-seven states refused to setup Obamacare State Health Insurance Exchanges. Thirty-seven states refused because of the expected cost burden to those states and citizens. States are required to balance their state budgets. Most states have deficits and do not have balanced budgets. Obamacare’s requirements would simply add to their budget deficits. States would be forced increase state taxes.

The 37 states felt that the Obamacare State Health Insurance Exchanges were an attempt, by President Obama, to decrease the federal cost burden and shift it to the states.  

It was also a states’ rights issue.

None of those states felt that Obamacare State Health Insurance Exchanges could work and not become an increased cost burden.

The Supreme Court ruled in 2012 that states have the right under the constitution to refuse to create a State Health Insurance Exchange.

In June 2015 the Supreme Court will rule on King vs. Burwell.

Can the Federal Health Insurance Exchanges subsidize applicants the same way State Health Insurance Exchanges can subsidize applicants.

The law’s language is specific. The Obamacare law specifically states that only the State Insurance Exchanges can subsidies applicants.

The Obama administration media manipulation machine is already spinning the truth in case the Supreme Court rules against the federal government.

Eight million people will lose their subsidy. There are 330 million people in America. There are as many people uninsured in 2015 as there were before the law was enacted. In five years we are no closer to the promise that Obamacare would provide universal care.

Obamacare is failing because it is a bad law in many respects.

The essence of the Obama administration’s spin is that if the Supreme Court rules against the government the cost of insurance will escalate to unaffordable levels for Federal Health Insurance Exchange purchasers.

Subsidies that made insurance plans affordable face a crucial test with decision expected in June.

The truth is the cost of healthcare premiums are going to skyrocket for Obamacare applicants because the only people who signed up have pre-existing illnesses and had to buy insurance or the very poor because their insurance was fully subsidized.

 The adverse selection and the financial accounting rules for the healthcare insurance industry allow them to raise the premiums.

President Obama’s subsidies for Obamacare premiums expire in 2016.

 

Megan McCardle writing in Bloomberg says;

Insurance companies have been bullied by the Obama administration into keeping rates as low as they are, even though they can't make any money.

For sheer survival, most companies will begin to charge enough so they at least don't lose any money, or leave the exchanges altogether.

For those of you who have followed my blog carefully, you know President Obama has provided the healthcare insurance industry a subsidy in order to get them to participate. It guarantees that it cannot lose more than 2% of its expected profit.

The insurance industry determines its expected profit.

The insurance company subsidy is about to expire. The guarantee in Obamacare, of not losing any money, is going to evaporate. In addition, only the sickest and poorest people have obtained insurance from the federal and state health insurance exchanges. The federal and state exchanges have lost a great deal of money.

These losses are slowly being revealed.

The State Health Insurance Exchanges are starting to publish their losses at the same time the healthcare insurance industry is reporting their potential losses for next year. Those potential losses are reflected in the proposed premium increases.

Moda of Oregon says that its claims were 139 percent of revenue.

CareFirst of Maryland says claims were 120 percent of revenue.

Tennessee told the Wall Street Journal it lost $141 million on exchange plans last year.

 State of New Mexico says it lost $23 million on revenue of $121 million.

 The states that signed up for the State Health Insurance Exchanges are losing money. Maybe the states that did not sign up were right. It would be a financial burden on those states.

The clause in the law permits only those states having a health insurance exchange to provide subsidies to their applicants. It excludes all others, including the federal government.

The only question the Supreme Court has to consider is, can the federal health insurance exchanges provide subsidies to applicants according to the law as written?

The law was written to encourage states to create health insurance exchanges. It did not include the provision of subsidy to applicants for  federal health insurance exchanges.

If the federal exchange would be permitted to provide subsidies, the law should be amended by congress.

A Republican congress would have to amend the law.

Obamacare is an apparent disaster to consumers, insurance providers, hospitals and physicians.

The majority of Republican are calling for Obamacare’s repeal.

It is unlikely that a Republican congress will change that provision in the law.

The “States only provision” in the law has backfired on President Obama and those states creating health insurance exchanges.

The cost of setting up and administering this new bureaucracy was enormous. The healthcare insurance offered by Federal and State Health Insurance Exchanges were either too expensive for healthy or young consumers or had too many unnecessary benefits for those consumers.

The only consumers who signed up were people who were too sick to be able to buy private insurance or too poor to be able to buy insurance without being subsidized.

Those consumers comprise 85% of the applicants. The result has been an adverse selection pool.

If the Supreme Court rules against President Obama he is going to say that private insurance does not work. The federal government must create an entitlement to everyone.

The result will be socialized medicine with the federal government being the single party payer controlling rationing of care, access to care and the cost of care to consumers.

I believe it will make healthcare coverage even worse than it is now.

Why no one is considering my concept of consumer driven healthcare with my ideal medical saving account is beyond me.

Rather than making consumers actively responsible for their health, healthcare dollars and healthcare, we are on the road to making them passive recipients of their healthcare.

America is going to be further down the Road to Serfdom.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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Medicaid Extortion

 

Stanley Feld M.D.,FACP,MACE

This topic is obscure. It is important because it is a defense of states rights opposed to federal control. The Obama administration wants to control states decisions through the use of subsidies 

I will try to make the issue as clear as possible.

The Obama administration has threatened to decrease funding of Medicaid in states (Florida, Texas and other states) that have declined to expand their Medicaid program.

The reason these states have declined to expand Medicaid is because at the end of two years these states would be stuck with increased costs they cannot afford to pay.

The Obama administration volunteered to pay all expenses for the first two years. When states that have expanded Medicaid under Obamacare are forced to raise taxes and increase their budget deficit, the people in those states will scream. The state will be hurt economically.

Obamacare and the state health insurance exchanges were designed to shift the financial responsibility for Medicaid from the federal government to the states. This action will drive the state budget deficits higher while slightly decreasing the federal deficit.

The federal government can print money. State governments cannot. State governments are required to have a balanced budget or an excess. A budget excess would result in lower state income taxes.

In June of 2012 the Supreme Court upheld the constitutionality of the Affordable Care Act by changing the “individual mandate” penalty for non-compliance to an individual tax.

I thought the court decision was wrong.

Americans must abide by the Supreme Court’s decision. This part of the decision captured the most media attention.

At the same time the Supreme Court struck down the Obamacare provision that let the federal government withhold Medicaid funding from any state that did not expand its Medicaid program or form a state insurance exchange as prescribed in the law.

 “This coercion of state governments—a “gun to the head,” as Chief Justice John Roberts put it—was a blatant violation of the constitutional principle of federalism.”

 The traditional mainstream media did not advertise this ruling widely. Many do not fully appreciate the significance of the ruling.

It is a decision in favor of states rights.

The traditional media has criticized the governors of Texas, Florida an eight other state governors that did not set up state health insurance exchanges. The criticism was that those states were wasting billions in federal funding.

In reality the ruling was a major blow to Obamacare. These governors know that Medicaid is a failed entitlement. All Obamacare did was expand Medicaid coverage to cover everyone earning less than 138% of the federal poverty level.

They knew they will be stuck with the cost overruns from a failed entitlement that did not fix the healthcare system. The ultimate result would raise taxes. These state were looking for a healthcare coverage program that would work and be budget neutral. Medicaid has not been budget neutral.

Everyone above 138% of the federal poverty level income threshold would get a subsidy to buy private coverage through the state health insurance exchanges.

The Supreme Court’s ruling has not bothered President Obama. He has a plan to get around that ruling. He has threatened to withhold more than $1 billion in Medicaid funds due the state of Florida under a waiver program first approved in 2005.

President Obama is threatening to cancel a five-year $29 billion dollar Medicaid waiver approved in 2011 for Texas.

Florida’s governor Rick Scott is suing the federal government for threatening to withhold that $1 billion. Greg Abbott Texas’ present governor will probably sue the federal government next. It will once more go to the Supreme Court.

The Obama administration is trying to get around the Supreme Court’s ruling .The scheme is called “cooperative federalism”.  Congress taxes a particular state’s residents. Congress then offers to give some of the revenue back to the state in exchange for that state adopting federal policies that the state had heretofore declined to adopt on its own.

President Obama is going to have a few problems. He needs a Democratic controlled Congress to pass the law to tax some states.

Medicaid payments are complex and vary from state to state. In Florida and Texas, Medicaid waivers allow these states to experiment with new forms of Medicaid coverage.

It is a smart move because Medicaid is a failed entitlement that needs a paradigm shift or a new system. States are supposed to be able to experiment with new ideas using these waivers..

 “States must get federal approval for their waivers, and although technically most are limited to five years, in practice they can be renewed or extended indefinitely. Some state waivers are decades old.”

Florida and Texas have waivers and get federal funding to pay for uncompensated care payment to hospitals treating Medicaid patients and the uninsured. 

The Obama administration informed Florida and Texas that expansion of Medicaid “would reduce the need for uncompensated care in the state and therefore he would link the waiver to expansion of Medicaid. If a state did not accept Medicaid expansion it might endanger the renewal of its waiver.

This sounds like extortion to me. I think Governors Scott and Abbott believe it sounds like too.

Chief Justice Roberts noted in the court’s ruling that Medicaid expansion under Obamacare “accomplishes a shift in kind, not merely degree.

“ Medicaid “is no longer a program to care for the neediest among us, but rather an element of a comprehensive national plan to provide universal health insurance coverage run by the federal government. ”

The Supreme Court found the conditions on federal funding of Medicaid to be coercive . 

When federal funds with conditions attached comprise such a large portion of a state’s budget, states do not really have any choice but to comply to the federal government’s wishes.

 States will find themselves unprotected from coercion by the federal government once they enter into the cooperative federalism scheme that President Obama and his administration concocted to bypass the Supreme Court’s ruling.

This example represents another trick play by President Obama and his administration in order to control and limit states’ rights.

I believe Chief Justice John Roberts understands this and the court will rule against the Obama administration.

However, the Obama administration’s threat will result in a huge waste of taxpayers’ dollars at both the state and federal level.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Trust Is An Important Word

Stanley Feld M.D.,FACP, MACE

Trust is confidence in the honesty or integrity of a person or thing. An example of trust is the belief that someone is being truthful.

 The world is complex. As individuals we cannot know and do everything. We must assign surrogates to express and carry out our will.                                                           

We must trust those surrogates. When those surrogate seem to deceive us we distrust them.

In the past six years Americans’ trust in their leaders has been eroded.

It seems that our government surrogates have tried to deceive us over and over again. I have discussed almost all the instances the Obama administration has deceived the American people with respect to Obamacare i.e If you like your doctor you can keep you doctor” to name one.

The State Department has deceived us about Benghasi and with the outlines of the nuclear agreement. The Clintons have deceived us with their Clinton Foundation donations and the perception of undu pedaling of influence.

The result is public distrust of our institutions and each other. They have promoted distrust and  media is the message.

Atul Gawande M.D., a surgeon and public-health researcher, became a New Yorker staff writer in 1998. He contributed greatly in the public healthcare arena in 2007 making surgery safer by creating a pre-op, inter-op and post-op surgical checklist.

He has also created a checklist for delivery of babies in under-developed countries. These checklists have decreased morbidity and mortality.

I am a Gawande fan. He is a good thinker. However, in my view, he has a few blind spots. These blind spots showed up in his most recent article “Overkill.”  

Dr. Gawande’s problem is that even if his observations are somewhat correct they are not universally valid. He proves that his observations are not totally correct as he describes his approach to clinical practice.

His approach to clinical practice is to do less, not more. However, he does not consider the potential unintended consequences of doing less.

Most of his writings in the New Yorker criticize physicians and their practice of medicine.

 The articles could be interpreted as an attack of practicing physicians’ care. It could erode consumers’ confidence in their physicians causing them to mistrust all physicians and their clinical judgment and advice.

 Dr. Gawande should reexamine some of his premises. He should focus on educating both consumers and physicians as he did with his surgical checklist.

 Yellow journalism does not solve the healthcare system’s problems. It creates greater problems.

 In this New Yorker article his blind spot is well illustrated. He initially quotes Kenneth Arrow an economist who in 1963 won a Noble Prize in Economics for describing a vital problem economic call information asymmetry.”

“There is a severe disadvantages that buyers have when they know less about a good than the seller does.”

Kenneth Arrow pointed out that the prime example was health care. Doctors generally know more about the value of a given medical treatment than patients, who have little ability to determine the quality of the advice they are getting.”

Kenneth Arrow is absolutely right. Since 1963 many industries have worked to solve this problem of information asymmetry using the Internet to make consumers Prosumers.

Physician leaders knew Arrow was absolutely correct. Some have tried to correct the situation through patient education and the developed System of Care through the use of Chronic Disease Treatment Teams.

To me this represents a constructive approach to information asymmetry in the healthcare system rather than the approach of stimulating consumers to mistrust their physicians.

There is a simple solution. Patients must be empowered to understand their disease and the options they have for treatment. They must also take responsibility for their care.

The American Association of Clinical Endocrinologists initiated the team approach for the treatment of Diabetes Mellitus in the 1990’s. It was called “A System of Intensive Self-Management of Type II Diabetes Mellitus.”

Teaching patients to intensively control their own blood sugars and helping patients become the “professor of their disease” can decrease the complication rate by at least 50%.

The complications of diabetes result in 80% of the cost of diabetes to the healthcare system. Managing Diabetes Mellitus correctly also decreases the pain and suffering resulting from this devastating disease.

It took twenty years for the government and the healthcare insurance industry to support this notion of chronic disease management.

AACE wrote guidelines outlining the development of Diabetes Education Centers wherein patients with diabetes were the center of the Diabetes team with physicians being the coach of the team and nurse educators, dieticians, exercise therapists, psychiatrists or psychologists being the assistant coaches and an extension of the physician’s care. 

“A System of Intensive Self-Management of Type II Diabetes Mellitus.”

It is critical patients take responsibility for their diabetes care.  They must not be passive about their treatment. They must judge the quality of their treatment. If it is not excellent they need to move on. The problem might be that the patients’ healthcare plan will not permit the patient to choose those physicians and care provders in Obamacare.

Consumers have abrogated their responsibility for their treatment and the cost of their treatment to a third party. This problem originated when they were able to buy first dollar healthcare insurance coverage. Consumers were not and are still not at financial risk even though their health is at risk.

This system of disease management demands that patients become responsible for the management of their disease.

Our health is our most valuable asset. We must be responsible for our health.

Obamacare’s health insurance exchanges continue promote the same defect in our healthcare system.  It does not encourage patients to be careful about healthcare dollars or the responsibility for their healthcare.

“Doctors, therefore, are in a powerful position. We can recommend care of little or no value because it enhances our incomes, because it’s our habit, or because we genuinely but incorrectly believe in it, and patients will tend to follow our recommendations.”

Please note that Gawande indicts physicians in his second sentence for recommending care of little or no value because it enhances income.

In fact ordering a CAT scan, MRI or lab work does not enhance physicians’ income unless the physicians own the machinery. Hospitals and independent testing centers own the machinery to do these tests and make the profit. Therefore his reason for “Overkill” is not primary.

Dr. Gawande goes on to expand Professor Arrow’s argument about over-testing in a system of information asymmetry.”

“Another powerful force toward unnecessary care emerged years after Arrow’s paper: the phenomenon of overtesting, which is a by-product of all the new technologies we have for peering into the human body.”

“The United States is a country of three hundred million people who annually undergo around fifteen million nuclear medicine scans, a hundred million CT and MRI scans, and almost ten billion laboratory tests.”

New technologies have ben a boom to the practice of good medical care. It could be argued that someone getting hit in the head and developing a long lasting headache should get a CAT scan or MRI of the brain rather than pre MRI, CAT scan era, a skull x-ray that would tell us almost nothing.

Perhaps the unnecessary care is not so unnecessary. Perhaps it is important to know the baseline study results of tests to understand the progression of an illness and controlthrough blood testing.  

There does seem to be too much testing. What might be the cause?

Dr. Gawande overlooks a very important cause of over-testing.

It is defensive medicine. Physicians are afraid of getting sued in our litigious society if they miss something. The Massachusetts Medical Society study brought out this very important point. Physicians by their own admission over-test to avoid missing an underlying disease.

A rough estimate of the cost of over-testing in America is between $200 billion to $750 billion dollars a year as a result of defensive medicine.

Dr. Ezekiel Emanual, an advisor to President Obama, has stated that the healthcare system does not need malpractice reform because defensive medicine only cost the system $25 billion dollars a year. The cost is insignificant. He is dead wrong. He is also immune to law suits because of institutional protection. He does not appreciate the wear and tear on the physicians being sued.

As Obamacare makes the healthcare system more dysfunctional consumers have less responsibility for their healthcare. A system of socialized medicine is evolving as a result of Obamacare. The government takes care of us. We all know that Medicare is unsustainable. Intelligent well-respected folks like Antul Gawade use questionable logic to unintentionally erode peoples’ trust in physicians and their judgment.

Meanwhile taxes continue to rise and America is digging itself into a deeper financial hole.

The question should be how do we do things in a constructive  rather than a destructive way.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Big Pharma’s Interactions With Obamacare

Stanley Feld M.D.,FACP,MACE

President Obama strategy is to provide favors to potential enemies and then throw them under the bus when he has gotten what he needed from them.

He managed to seduce the American Medical Association, the American Hospital Association and the American Pharmaceutical Association (Big Pharma) to support Obamacare as it was being passed.

Recently he has thrown the American Pharmaceutical Association under the bus.

President Obama needed Big Pharma’s support in order to decrease the resistance to the passage of Obamacare in 2009.  In order to get Big Pharma’s support President Obama made many promises to Big Pharma and satisfied Big Pharma’s vested interests.

These promises included political protection against the left wing wish list to control drug prices. The wish list included weakening drug patents, decreasing intellectual property shelters for new drugs from 12 years to seven years and decrease payment rates for medications administered in the hospital (namely cancer drug therapies). 

Additionally, the White House agreed to spare the drug companies from central planning such as allowing the Health and Human Services Department to “negotiate” lower drug prices.

President Obama succeeded in getting Big Pharma to contribute $80 billion dollars via drug discounts that would affect Obamacare’s bottom line. Big Pharma did that largely by increasing the Medicaid’s drug discount from 15.1% to 23.1%.

Big Pharma also agreed to mark down prescriptions for seniors by 50% above a certain drug cost.

It might appear that President Obama got the better of the deal to obtain Big Pharma’s support for Obamacare.  

This was definitely not true. Big Pharma is making a killing from the government and from out of pocket payment from consumers.

A small part of the killing is explained in Dr. Dale Fuller’s article (that appear in the blog) about Oncology drugs "Is Pharmaceutical Pricing Weird, Or What?"

“Remember the business line, circa 2009, that if you weren’t at the Obamacare table you were on the menu (to be eaten)? Well, Big Pharma sat at the table, gave Mr. Obama what he wanted, and is now back on the menu as the cheese course. “

I believe President Obama’s agenda was to take all the favors away after Obamacare was passed and became law.  He tried to take Big Pharma’s favors away in the 2015 budget. He did not succeed.

He slowly worked to get most brand name drugs covered by eliminating the price fixing reprieve. Medicare Part D pays nothing or little for Brand Drugs. 

“ 2009 was then. The budget directors now claims to be “deeply concerned with the rapidly growing prices of specialty and brand name drugs” and, sure enough, it rescinds the price-fixing reprieve.”

President Obama is becoming more aggressive. He is using the mainstream media to create a furor over the price of specialty drugs. A well-publicized example is the price of the drug that cures hepatitis-C. The government will negotiate a lower price.

Drug prices had been escalating long before Obamacare. Obamacare simply let the genie out of the bottle with its favors to Big Pharma.

Big Pharma overplayed its favors and took advantage of the price reprieve inviting Big Government to step in.

I predict we are going to see all of the favors given to Big Pharma  rescinded before President Obama’s time in office is over.

The federal government will launch a price fixing offensive and choke Big Pharma’s profit making machinery completely.

This is the era of generic drugs. Big Pharma gave this away to the federal government to retain control of the new drug profit margin.  

Since government doesn’t pay for new drugs it can brag, 

“Taxpayer costs were $353 billion or 36% less than the Congressional Budget Office’s original projections for 2006-2013.”

"President Obama’s order to rescind his deal with Big Pharma will result in unintended consequences. Big Pharma will have not the incentive to develop new drugs.

President Obama’s with Big Pharmadeal should have never been  made in the first place.

Handing the $1.093 trillion HHS bureaucracy Soviet-style price fixing powers will undermine the pharmaceutical innovation that depends on large returns on the few medicines that succeed. Even the threat of price fixing could distort investment decisions

President Obama double-crossed Big Pharma.

“ In this double cross lies a warning for the next CEOs and lobbyists who are deluded enough to trust Washington liberals.   Everyone will get devoured eventually.”

“It’s tempting to say the drug makers deserve their fate, except that the ultimate costs of their folly will be born by Americans who won’t enjoy the longer lives, fewer hospitalizations and less suffering that new therapies can bring.”

 It is clear to me that a centrally controlled market rather than a free market leads to a distorted marketplace that is not self-correcting. Consumers, and not the government, must be in control of the healthcare system.

The government should protect consumers from being abused by other stakeholders in the system.

Government should not make under the table deals that hurt consumers.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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Obamacare Enrollment Deceptions Continues

Stanley Feld M.D.,FACP, MACE

I made a big deal out of the poor enrollment in Obamacare throughout the winter.

There are more than 330 million Americans who should have healthcare insurance. In 2014, 15 million people lost their healthcare insurance because of Obamacare regulations.

At the end of the healthcare enrollment period for 2014 the Obama administration claimed there were 9 million enrolled in health insurance exchanges. The number was modified to 6.7 million enrollees because of mistakes in counting dental plans and non-payment of the enrollees’ initial premium.

Never the less President Obama did a victory lap and declared Obamacare is working. Nothing could be further from the truth.

It is very difficult to keep track of all the false numbers thrown at the public.

The 2015 open enrollment period was delayed one month until after the mid-term elections for political reasons. President Obama and the Democrats wanted to keep the conversation about Obamacare out of the traditional media headlines.

The enrollment period of November 15th to December 31st was extended to February 15th 2015. On February 16th it was extended to March 1st 2015.

On February 16, 2015 Aaron Albright, as CMS spokesman announced,

 “Americans who couldn't enroll in federal Obamacare insurance plans over the weekend because of computer glitches or long waits will now have until next Sunday to sign up, federal officials announced early Monday.

"We are pleased that the vast majority of consumers were able to apply and pick a plan through HealthCare.gov or its call center without a problem,"  

"For those consumers who were unable to complete their enrollment because of longer than normal wait times at the call center in the last three days or because of a technical issue such as being unable to submit an application because their income could not be verified, we will provide them with a time-limited special enrollment period for March 1 coverage."

“The special enrollment period begins Monday and ends Feb. 22.”

 The extension was prompted by the Saturday outage of an Internal Revenue Service function for Obamacare enrollment, which could have prevented about 500,000 people from enrolling.

The enrollment period was extended to allow those predicted 500,000 to enroll.

The enrollment period was was extended from February 15th to February 22nd and the March 1st.

 On March 1st a special tax penalty enrollment extension was started to expire April 30th.

Only 98,000 enrolled during that 2 month extension. The predicted five hundred thousand (500,000) people did not enroll as was announced.

On December 15th  2014 these were the published enrollment figures.

 

Confirmed 2015 QHPs: 3,039,524 as of 12/15/14”

“Estimated 2015 QHPs (Cumulative):


11/21: 610K (462K HCgov) • 11/28: 1.02M (765K HCgov) • 12/05: 1.80M (1.35M HCgov) Thru 12/15:
4.70M (3.52M HCgov

http://acasignups.net

Enrollment by state can be studied in the following link.

The Obama Administration bragged:

“The number of people enrolling or re-enrolling last week was considerably higher than in previous weeks. Week one saw 500,000 enrollees, week two had 300,000 and week three saw 600,000 sign up through HealthCare.gov.”

Only 3.4 million sign ups were confirmed to receive healthcare coverage by January 1,2015.

This is only seventy percent (70%) of the expected enrollment through 12/15/14. The enrollment had been extended before New Year to February15, 2015.

“The government estimates a total 10.7 million will enroll by February 15,2015. On February 2,2015 there were 7.53 million qualified enrollees. The original estimate in 2010 was 17.5 million. The first 2015 estimate enrollment in 2014 was reduced 3 months ago to 13 million. The enrollment figure was modified.”

Somehow, the February 22 deadline was extended to April 30, 2015. The Obama administration continues to make up the rules as the go.

 On April 28th two days before the open enrollment period was supposed to close for 2015 http://acasignups.net/ publish these figures.

 

Confirmed Exchange QHPs: 11,897,180 as of 4/28/15
Estimated: 12.30M (9.38M via HCgov) as of 4/28/15
 

http://acasignups.net/

It is important to note that only 9.38 million people enrolled via HCgov in 2015. There is no change from the 2014 pre modification of the 2014 data.

It is not known how many enrollees paid their first premium.

None of these fact have been reported in the traditional media. Obamacare and the health insurance exchanges are not doing as well as President Obama says they are.

President Obama and his administrations continue to lie to Americans about enWhen is the American public going to demand a stop to the Obamacare deceptions?

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Obamacare Is Not In The News

Stanley Feld M.D.,FACP,MACE

There has been little reporting about Obamacare in the traditional media lately. I believe it is intentional.

President Obama doesn’t want to talk about it. He has told us Obamacare is a success. The problem is he has left out the facts about its failures, costs and disruptions.

Last week a 70 plus year old woman wrote and told me that none of her brand name medicines are being covered by her high level Medicare Part D plan because of Obamacare regulations.

She said out of pocket expenses for her generic drugs have doubled in her in the past two years.

I found it hard to believe because there has been nothing reported about this in the traditional mainstream media.

Out of pocket expenses are beyond the reach of many Medicare recipients.  

A big out of pocket expense for many has been the cost of signing on to a concierge medicine doctor in some cities in the country.

The most prominent city is Los Angeles. I have been told that  primary care physicians will not see a patient that does not sign on to their concierge panel at a cost of $1500/year.

To my surprise Thomas B. Edsell a very liberal (progressive) United States journalist and academic, best known for his weekly opinion column for the New York Times online and for his 25 years of covering national politics for the Washington Post wrote two articles about the problems with Medicare and Obamacare.                        

The first article Obamacare, Hand Off My Medicare points out that President Obama is destroying Medicare.

The second article is entitled Has Obamacare Turned Voters Against Sharing the Wealth?”

Both articles state, in detail, reasons and excuses for Obamacare’s failures.

Here are just a few reasons and excuses.

“A number of factors underpin the anti-redistributionist shiftin public opinion that I wrote about last week.

First, and perhaps most important, is the emergence of significant resistance to downward redistribution among the elderly, a major voting bloc.”

How come this trend is occurring? It is because seniors of modest means are threatened. They are realizing Obamacare is a bad law with many defects.

“The Obama administration has reported that the Affordable Care Act will be financed in part by $716 billion in Medicare cuts over 10 years.

 Somewhat improbably, the administration also contends that cuts of this magnitude will not reduce services to Medicare beneficiaries.”

Another President Obama lie. Seniors are already feeling the Medicare cuts by a decrease in access to care and an increase in out of pocket expenses.

Seniors have learned that they cannot trust President Obama to preserve Medicare.

“Seniors have started raising concerns about the cost of these plans — higher taxes and premiums for those with coverage, more government interference in physician choices.”

These concerns are real and present.

 “Further increasing anxiety among the aged in the United States is the shift from defined benefit pensions, which guarantee payments, to defined contribution pensions, which do not.”

If Medicare shifts to a defined contribution policy, seniors are afraid if they live longer they will run out of money.

Obamacare is unsustainable. Once President Obama losses public trust any idea no matter how good it was thought to be in the past will not be supported.

The reasons for Obamacare’s failures were predictable before the bill was passed. I have written many articles giving reasons for its failures.

Now President Obama is setting up the public with excuses for its failure through these New York Times articles.

The President’s next step is to declare that Americans have to live with Obamacare because the Republicans have not come up with anything better.

President Obama does not listen to Republicans even when they come up with reasonable ideas.

This predictable step is taken to brain wash the public to accept a law that empowers the government to make the public more dependent on government and less free to make their own medical choices and decisions.

Seniors are starting to act out now because Obamacare, with its redistribution of their wealth, is hurting them economically and is not in their vested interest.

Seniors should start understanding how President Obama has given favors to the healthcare insurance industry, the pharmaceutical industry and the hospital industry at seniors’ expense. Once they understand, seniors will not support President Obama.

Seniors are a big voting block. They represent a large threat to the Progressive Democratic Party and its foolish laws and tactics.  

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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How Should Healthcare Quality Be Measured?

Stanley Feld M.D., FACP,MACE

 The U.S. Preventive Services Task Force’s (USPSTF) grading system for measuring the quality of healthcare is an wrong. It results in a way to limit physicians’ judgment and treats medical care as a commodity. It enables a computer program to judge if physicians have followed an algorithm to treat patients.

 “The U.S. Preventive Services Task Force (USPSTF).[57][citation needed has developed grading systems for assessing the quality of evidence for making judgments about treatments. 

  • Level I: Evidence obtained from at least one properly designed randomized controlled trial.
  • Level II-1: Evidence obtained from well-designed controlled trials without randomization.
  • Level II-2: Evidence obtained from well-designed cohort or case-control analytic studies, preferably from more than one center or research group.
  • Level II-3: Evidence obtained from multiple time series designs with or without the intervention. Dramatic results in uncontrolled trials might also be regarded as this type of evidence.
  • Level III: Opinions of respected authorities, based on clinical experience, descriptive studies, or reports of expert committees.”

The grading system is wrong. I will lead to shabby medical care. If quality of care should be measured, it should be measured by using Evidence-Based Behavioral Practice evaluations

 “Evidence-based behavioral practice (EBBP) "entails making decisions about how to promote health or provide care by integrating the best available evidence with practitioner expertise and other resources, and with the characteristics, state, needs, values and preferences of those who will be affected.”

Empirically supported treatments (ESTs) in some clinical settings are defined as "clearly specified psychological treatments shown to be efficacious in controlled research with a delineated population" [3]

Only when physicians’ clinical judgment and observations are included in the assessment of their quality of medical care should evaluation of that quality of care be measured.

The narrow criteria of the USPSTF will not define quality. It will only serve to restrict access to care and penalize physicians for using clinical judgment and consumers’ from receiving medical care.

Suddenly, it becomes easy to see how difficult it is to assess the quality medical care.

There is little question that an occasional physician practices terrible medicine. This is obvious to the medical community. The mechanism for improving a bad physicians quality of care is in place but not well executed.

Few, especially healthcare policy wonks, seem to understand the difficulty of assessment of medical care.

It should be easy for policy wonks to understand the limitations and criticisms of evidence based medicine.

Yet the Obama administration regards evidence-based medicine as measured presently as the gold standard of clinical practice,

Limitations and Criticisms of Evidence-Based Medicine (EBM)

  • EBM produces quantitative research, especially from randomized controlled trials (RCTs). Accordingly, results may not be relevant for all treatment situations.[67]

This is obvious to most physicians.

  • The theoretical ideal of EBM (that every narrow clinical question, of which hundreds of thousands can exist, would be answered by meta-analysis and systematic reviews of multiple RCTs) faces the limitation that research (especially the RCTs themselves) is expensive; thus, in reality, for the foreseeable future, there will always be much more demand for EBM than supply, and the best humanity can do is to triage the application of scarce resources.

The reasons for EMS shortcoming are listed below. The list is not complete.

  • Because RCTs are expensive, the priority assigned to research topics is inevitably influenced by the sponsors' interests.
  • There is a lag between when the RCT is conducted and when its results are published.[68]
  • There is a lag between when results are published and when these are properly applied.[69]
  • Certain population segments have been historically under-researched (racial minorities and people with co-morbid diseases), and thus the RCT restricts generalizing.[70]
  • Not all evidence from an RCT is made accessible. Treatment effectiveness reported from RCTs may be different than that achieved in routine clinical practice.[64]
  • Published studies may not be representative of all studies completed on a given topic (published and unpublished) or may be unreliable due to the different study conditions and variables.[71]
  • Research tends to focus on populations, but individual persons can vary substantially from population norms, meaning that extrapolation of lessons learned may founder.
  •  Thus EBM applies to groups of people, but this should not preclude clinicians from using their personal experience in deciding how to treat each patient. One author advises that "the knowledge gained from clinical research does not directly answer the primary clinical question of what is best for the patient at hand" and suggests that evidence-based medicine should not discount the value of clinical experience.[56] Another author stated that "the practice of evidence-based medicine means integrating individual clinical expertise with the best available external clinical evidence from systematic research."[72]
  • Hypocognition (the absence of a simple, consolidated mental framework that new information can be placed into) can hinder the application of EBM.[73]
  • Valid enthusiasm for science should not cross the line into scientism, losing critical perspective.
  •  Although clinical experience and expert opinion are insufficient by themselves, neither are they valueless, as EBM fervor that approaches scientism sometimes tends to paint them.

This last point is repetition of a very important shortcoming.

  • An informed clinician can weigh confounding variables in a clinical case and decide that following a population-based guideline to the letter feels inadequate for the situation. Thus clinical backlash against "cookbook medicine" is not always misguided, and "guidelines are not gospel."[74]
  •  Conceptual models, by having fewer variables than always-multivariate reality, face limits of predictive accuracy, just as even the best supercomputer simulations cannot predict the weather with 100% accuracy, whether because of the butterfly effect or otherwise.
  •  Thus, just as clinical judgment alone cannot give epistemological completeness, neither can RCTs and systematic reviews alone.”

The answer to the reader’s last comment and question, “I believe a carrot and stick approach may be necessary with more carrot and less stick.  Your thoughts?” is

I believe that government must learn how to evaluate quality medical care accurately, if they want to base healthcare payments on the quality of medical care. Presently, the government is far from achieving that goal.

It could also be that measuring quality medical care is not President Obama’s goal.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Meaning and Significance Of Evidence Based Medicine

Stanley Feld M.D.,FACP, MACE

I received the following from a reader after re-publishing Medical Care Must Not Be Converted To A Commodity.

"Hello Dr. Feld,

Can I ask a question regarding voluntary Physician compliance with evidenced based care. Your thoughts 

Who sets the guidelines (and changes them) and how do we get compliance when we know it takes a LONG time for new guidelines to gain adoption?

I believe a carrot and stick approach may be necessary with more carrot and less stick.  Your thoughts?

Thanks,

These are three great questions. They demand an answer.

1. Can I ask a question regarding voluntary Physician compliance with evidenced based care? 

This question is very difficult to answer with our present state of knowledge.

There is no Level 1 evidence based data available to the answer question.

Level 1 is evidenced based data is defined as;

Level I: Evidence obtained from at least one properly designed randomized controlled trial

2. Who sets the guidelines (and changes them) and how do we get compliance when we know it takes a LONG time for new guidelines to gain adoption?

I believe most practicing physicians try to comply with clinical guidelines written by their specialty organization. Most specialty organizations publish guidelines.

The guidelines are taught in courses physicians are required take to obtain Continuing Medical Education (CME) credits required for medical re-licensing. Guidelines by specialty groups differ slightly reflecting each specialty organizations clinical emphasis, clinical experience and clinical judgment in addition to the available evidence based medicine.

It would be nice to be able to determine if each physician in the country was up to date in every single area of medicine and surgery.

I would also be nice to have accurate measurable criteria to judge physicians’ practices.

How do you evaluate physicians’ judgment and clinical experience with a computer program? You can not.

This is the reason physicians object to cookbook medicine and the commodization of medicine and surgery. Physicians have been trained to use clinical judgment. Clinical guidelines and algorithms are a guide to help physicians reach the best conclusion they can reach.

The problem with evidence-based medicine is that does not define quality medical care. It defines the quality of studies that are rigid protocol studies that do not honor clinical observations, experience or  judgment.

I have made this clear with my observations about the deficiencies in the USPSTF’s studies and conclusions about subclinical hypothyroidism, the PSA value or the study of osteoporosis in men over 70 years old and breast cancer screening to mention a few.

In this era of decreased funding money for clinical studies that are random, double blind controlled research studies is rare.

Observational data studies and clinical judgment studies are considered weak and invalid.

Who suffers?

Patients suffer as the government takes over more of the healthcare payment system. Government is making consumers dependent on government’s healthcare decisions.  Government relies on the advice of the USPSTF to determine the value of treatments. Many of the USPSTF conclusions are invalid in my opinion.

Rather than going through the explanation of the shortcomings in Evidence Based Medicine (EBM), on which the conclusions of the USPSTF is based, I quote the literature and will let my readers judge for themselves.  

Evidence-based medicine (EBM) is a form of medicine that aims to optimize decision-making by emphasizing the use of evidence from well designed and conducted research.

Please note that clinical judgment and observational studies are not valued.

a. Although all medicine based on science has some degree of empirical support, EBM goes further, classifying evidence by its epistemologic strength and requiring that only the strongest types (coming from meta-analyses, systematic reviews, and randomized controlled trials) can yield strong recommendations; weaker types (such as from case-control studies) can yield only weak recommendations.

In my opinion meta-analyses is invalid statistical trick. It combines studies that do not have the same design. Each included study has different numbers of patient and different statistical power along with statistical significance. Combining different study designs does not increase statistical significance overall.

 b. The term was originally used to describe an approach to teaching the practice of medicine and improving decisions by individual physicians.[1]

EBM is one factor in improving medical care treatment. It should not be used exclusively in evaluating quality and paying for medical care.

Consumers of medical care are the ones that can evaluate the many factors that make up quality care. Unfortunately the government has no interest in the consumers of medical care. The focus is on decreasing the cost of care and not on improving the quality of care.

c. Use of the term rapidly expanded to include a previously described approach that emphasized the use of evidence in the design of guidelines and policies that apply to populations ("evidence-based practice policies").[2]

It has subsequently spread to describe an approach to decision-making that is used at virtually every level of health care yielding the broader term evidence-based practice.[3]

What is evidence-based practice?

Evidence-based practice (EBP) is an interdisciplinary approach to clinical practice that has been gaining ground following its formal introduction in 1992.

Its basic principles are that 1) all practical decisions should be made based upon research studies

2) That these research studies are to be selected and interpreted according to some specific norms characteristic for EBP.

Typically such norms disregard both theoretical and qualitative studies.

3) EBP considers quantitative studies according to a narrow set of criteria of what counts as evidence. If such a narrow set of methodological criteria are not applied, it is considered better just to speak instead of research-based practice.[1]

Students of EBM, EBP, and EBBP are starting to recognize the limitations of Evidence Based Medicine (EBM).

The methodology used by the Obama administration should be change before both healthcare and medical care are completely destroyed.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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