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    Healthcare Reform Briefing

    Presented to the

    NorthLakeAssociation of Medical

    Managers

    September 21, 2011

    by James Person

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    James Person is the Public Affairs Specialist for St. Tammany ParishHospital. He is responsible for analyzing the effects of federal, state andlocal legislation and regulations on the hospitals ability to deliver world-class healthcare close to home. He also assists with external and internalcommunication efforts.

    Person previously served on Capitol Hill as a legislative aide for two Members ofCongress and a prominent public policy think tank. He also managed and workedon congressional election campaigns in North Carolina, Wisconsin and Louisiana.

    He is a native New Orleanian and an alumnus of Mandeville High School andLouisiana State University- Baton Rouge where he received a Bachelor of Arts

    degree in Mass Communication. Currently, he attends the University of NewOrleans where he is earning a Master of Business Administration degreeconcentrating in finance. He lives in Mandeville with his wife and two sons.

    Biography

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    Super Committee

    Whats Left to Do

    Outlook

    Presidents Proposals

    Healthcare Reform

    Overview

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    Super Committee

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    Stage 1- Budget Control Act Immediate budget reductions of $917 B

    Super Committee

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    Stage 1- Budget Control Act

    Immediate budget reductions of $917 B Extends debt limit by $900 B

    until Feb/March

    Super Committee

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    Stage 1- Budget Control Act

    Immediate budget reductions of $917 B

    Extends debt limit by $900 Buntil Feb/March

    No cuts to Medicare or Medicaid

    Super Committee

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    Stage 1- Budget Control Act

    Immediate budget reductions of $917 B

    Extends debt limit by $900 Buntil Feb/March

    No cuts to Medicare or Medicaid

    No tax increases

    Super Committee

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    Stage 2-

    Find $1.5 T in deficit reductionrecommendations by Thanksgiving

    Super Committee

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    Stage 2

    Find $1.5 T in deficit reductionrecommendations by Thanksgiving

    If a deal is reached:

    Up-or-down clean vote in Congress

    Super Committee

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    Stage 2

    Find $1.5 T in deficit reductionrecommendations by Thanksgiving

    If a deal is NOT reached:

    Sequestration

    Super Committee

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    Sequestration

    $1.2 T in cuts

    Super Committee

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    Sequestration

    $1.2 T in cuts

    Automatic, across-the-board

    Super Committee

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    Sequestration

    $1.2 T in cuts

    Automatic, across-the-board

    Cuts $123 B from Medicare

    Super Committee

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    Sequestration

    $1.2 T in cuts Automatic, across-the-board

    Cuts $123 B from Medicare

    Medicaid exempt

    Super Committee

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    Sequestration

    $1.2 T in cuts

    Automatic, across-the-board

    Cuts $123 B from Medicare

    Medicaid exempt

    If deal

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    Sequestration

    Some groups may actually prefer this!

    Super Committee

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    October 14: Congressional committee recs due

    Important Dates

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    October 14: Congressional committee recs due

    November 23: Super committee votes

    Important Dates

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    October 14: Congressional committee recs due

    November 23: Super committee votes

    December 23: House and Senate votes

    Important Dates

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    Medicaid ($100 B)

    Options

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    Medicaid ($100 B)

    No more provider taxes

    Options

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    Medicaid ($100 B)

    No more provider taxes

    Blended FMAP rates

    Options

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    Medicare

    Options

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    Medicare

    IME cuts ($15 B)

    Options

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    Medicare IME cuts ($15 B)

    Eliminate bad debt payments ($15-$30 B)

    Options

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    Medicare

    IME cuts ($15 B)

    Eliminate bad debt payments ($15-$30 B)

    Others ($69-$71 B)

    Options

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    Medicare

    IME cuts ($15 B)

    Eliminate bad debt payments ($15-$30 B)

    Others ($69-$71 B) Expansion of IPAB

    Options

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    Other Increase retirement age ($125 B)

    Means-testing ($38 B)

    Medicare copay reform andincreases ($110 B)

    Medigap restrictions ($53 B) Home health copays ($40 B)

    SNF copays ($50 B)

    Options

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    Expiring tax provisions

    AMT patch

    R & D tax credits

    Accelerated depreciation

    Whats Left to Do?

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    Expiring tax provisions

    AMT patch

    R & D tax credits

    Accelerated depreciation

    Medicare DOC FIX !!!! ($300 B)

    Whats Left to Do?

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    MedPAC doc fix proposal

    Doc Fix

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    MedPAC doc fix proposal

    Cut specialist payments 6%

    Doc Fix

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    MedPAC doc fix proposal Cut specialist payments 6%

    Keep PCP rates flat

    Doc Fix

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    MedPAC doc fix proposal

    Cut specialist payments 6%

    Keep PCP rates flat

    Paid for with cuts to otherhealthcare sectors

    Doc Fix

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    Outlook

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    Outlook

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    Outlook

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    Outlook

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    Reduce payroll taxesIncrease spending by $447 B

    Jobs Proposal

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    Reduce payroll taxes

    Increase spending by $447 B

    paid for with

    Jobs Proposal

    b l

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    Reduce payroll taxes

    Increase spending by $447 Bpaid for with

    Tax increases andlimiting itemized deductions

    Jobs Proposal

    b l

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    Reduce payroll taxes

    Increase spending by $447 Bpaid for with

    Tax increases andlimiting itemized deductions

    Jobs Proposal

    fi i d i l

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    Deficit Reduction Proposal

    D fi i R d i P l

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    Deficit Reduction Proposal

    D fi i R d i P l

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    Save $3.5 T over 10 years

    Deficit Reduction Proposal

    D fi i R d i P l

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    Save $3.5 T over 10 years

    $320 B from Medicare and Medicaid

    Deficit Reduction Proposal

    D fi it R d ti P l

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    Save $3.5 T over 10 years

    $320 B from Medicare and Medicaid $248 B from Medicare

    $73 B from Medicaid

    Deficit Reduction Proposal

    D fi it R d ti P l

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    Save $3.5 T over 10 years

    $320 B from Medicare and Medicaid

    $248 B from Medicare

    $73 B from Medicaid

    OMB baseline assumes doc fix?!

    Deficit Reduction Proposal

    D fi it R d ti P l

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    No cuts to Social Security

    No structural changes to Medicare No benefit changes

    Deficit Reduction Proposal

    D fi it R d ti P l

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    Blended FMAP

    MOE

    No provider taxes ($26 B)

    Increase

    Deficit Reduction Proposal

    D fi it R d ti P l

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    MedPAC recommendations

    o

    IME cutso Bad debt payment cuts

    o Medical imaging utilizationrate cuts

    Deficit Reduction Proposal

    D fi it R d ti P l

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    IPAB

    PPACA:Medicare spending

    per beneficiary > GDP growth + 1%

    Deficit Reduction Proposal

    Deficit Red ction Proposal

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    IPAB

    Obama deficit reduction:Medicare spending

    per beneficiary > GDP growth + 0.5%

    Deficit Reduction Proposal

    Deficit Reduction Proposal

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    IPAB

    Obama deficit reduction:Medicare spending

    per beneficiary > GDP growth + 0.5%

    Deficit Reduction Proposal

    Deficit Reduction Proposal

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    Deficit Reduction Proposal

    Deficit Reduction Proposal

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    IPAB

    Obama deficit reduction:

    Medicare spending

    per beneficiary > GDP growth + 0.5%Sequestration

    Deficit Reduction Proposal

    Deficit Reduction Proposal

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    IPAB

    Obama deficit reduction:

    Medicare spending

    per beneficiary > GDP growth + 0.5%

    Sequestration = Provider CUTS

    Deficit Reduction Proposal

    Healthcare Reform

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    Healthcare Reform

    Healthcare Reform

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    Healthcare Reform

    Policy

    http://www.mgma.com/index.aspx
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    MGMA PrinciplesFix the Medicare physician payment system

    Simplify administrative transactions

    Medical liability reform

    Expand coverage

    Improve quality and safety

    Promote adoption of HIT

    Policy

    Policy

    http://images.google.com/imgres?imgurl=http://www.law.columbia.edu/ipimages/Information_technology/images/checkmark.png&imgrefurl=http://www.law.columbia.edu/it/&usg=__jX0eg2MojVqURzW7Q-niNk_4f6o=&h=318&w=364&sz=36&hl=en&start=1&itbs=1&tbnid=7xi1LVPsRlhOgM:&tbnh=106&tbnw=121&prev=/images?q=check+mark&hl=en&safe=active&sa=G&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.law.columbia.edu/ipimages/Information_technology/images/checkmark.png&imgrefurl=http://www.law.columbia.edu/it/&usg=__jX0eg2MojVqURzW7Q-niNk_4f6o=&h=318&w=364&sz=36&hl=en&start=1&itbs=1&tbnid=7xi1LVPsRlhOgM:&tbnh=106&tbnw=121&prev=/images?q=check+mark&hl=en&safe=active&sa=G&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.law.columbia.edu/ipimages/Information_technology/images/checkmark.png&imgrefurl=http://www.law.columbia.edu/it/&usg=__jX0eg2MojVqURzW7Q-niNk_4f6o=&h=318&w=364&sz=36&hl=en&start=1&itbs=1&tbnid=7xi1LVPsRlhOgM:&tbnh=106&tbnw=121&prev=/images?q=check+mark&hl=en&safe=active&sa=G&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.law.columbia.edu/ipimages/Information_technology/images/checkmark.png&imgrefurl=http://www.law.columbia.edu/it/&usg=__jX0eg2MojVqURzW7Q-niNk_4f6o=&h=318&w=364&sz=36&hl=en&start=1&itbs=1&tbnid=7xi1LVPsRlhOgM:&tbnh=106&tbnw=121&prev=/images?q=check+mark&hl=en&safe=active&sa=G&gbv=2&tbs=isch:1http://www.mgma.com/index.aspxhttp://www.mgma.com/index.aspx
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    MGMA Statement

    MGMA cannot support this final legislation

    HCR fails to address SGR and payment fix

    Independent Payment Advisory Board (IPAB)

    No meaningful federal medical liability reform

    Cuts to the technical component of imaging services

    Physician-self referral ban

    Administrative simplification not fully realized

    Policy

    http://www.mgma.com/index.aspx
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    Expanding Coverage to 32 Million

    158 million

    25 million

    What Would Happen Under Reform

    Source: Congressional Budget Office

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    Coverage: Insurance Exchanges

    In 2014, all individuals will be required to obtain coverage orface a penalty.

    Individuals can purchase coverage from newly createdinsurance exchanges.

    Federal help for some individuals to pay for insurance.

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    Coverage: Insurance Exchanges

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    Questions

    ?