The WiSER program to erode your Medicare coverage: Not WISE for you!

While much about American health insurance is infuriating, starting with it treating the healthcare system as a vehicle for making money rather than providing healthcare, “prior authorization” (PA) is one of its most infuriating, and dangerous, practices. It means that before you can get the treatment your physician has recommended, indeed often before you can see the physician you want, the insurance company must authorize it. This practice is ubiquitous in commercial health insurance, including “Medicare Advantage” (MA), a program that allow an insurance company to collect the money allocated for you by Medicare. This means that if you receive a terrible diagnosis, such as lung cancer and your oncologist recommends a specific treatment, it is entirely possible that they will deny coverage for it, especially if your cancer is rare, or requires an expensive drug. You can file an appeal, but even if it is eventually granted, the process takes time, and meanwhile you are sick and your cancer is advancing.

But if you have Traditional Medicare (TM), this has not been a problem. TM covers virtually all doctors and hospitals in the country, covers most treatments, and does not subject the individual to PA, or decide that another (usually cheaper and possibly less effective) treatment, or even no treatment might be better for you. Or that a different doctor or hospital that is “in network” (for them) would be a better choice even if their track record is inferior. The absence of PA is a major reason why many health experts recommend TM over MA. 

Back in January, 2023 I wrote about the proposed ACO/REACH program at CMS (Privatizing Medicare through "Medicare Advantage" and REACH: The Wrong Way to Go!), which would allow companies (many owned by private equity) to purchase primary care practices, and voilà!, all those doctors’ patients were now in the company’s ACO and subject to restrictions on their care, including PA, without having to do anything at all and thinking they were safe because they were in TM! The REACH name was dropped but the program still continues; a friend in northern NJ was just informed he is now part of an ACO because they have acquired his doctor’s practice!

And other assaults on TM and the patients it covers continue. If you live in Arizona, as I do, or in 5 other states (New Jersey, Ohio, Oklahoma, Texas, Washington), even if you have TM you will suffer the indignity and damage of PA as Medicare implements a 6-year “pilot program” called WiSER (Wasteful and Inappropriate Services Reduction). No longer will you be able to get any Medicare-approved procedure from any Medicare-accepting doctor at any Medicare-accepting hospital (ie, virtually all doctors and hospitals). Medicare will contract with private companies that will utilize artificial intelligence (AI) algorithms to decide whether you can get the treatment. As with ACO/REACH, you have no choice, as participation is “voluntary” by state, but not by individual Medicare recipient. Actually, then it is worse than ACO/REACH, which you could get out of by changing your primary care physician (provided you could find another one!); WiSER will require you to move out of state!

Maybe the AI algorithms know better than you or your doctor. After all, isn’t reducing wasteful and inappropriate services a good thing? If you believe that the high cost of health care is the result of your using inappropriate and wasteful services, you might want to consider that the companies Medicare contracts with to do the PA will be paid “based on a share of averted expenditures.” That is, they will be paid on commission, receiving a percentage of the money saved by denying your care! But that won’t affect their decisions at all, right?

In reality, the use of “inappropriate and wasteful services” by you and your family and friends is not the reason for the high cost of health care. The reason is the enormous administrative costs of the US healthcare system, including the huge amounts made by for-profit insurance companies and pharmaceutical companies (and the eight-figure salaries of their CEOs and other executives), as well as health care providers (hospitals and health systems and the physicians, usually employed by them). This is a system found nowhere else among wealthy countries, every single other one of which comprehensively covers the care of all their people at much lower per-capita cost.

Bringing PA into Medicare is not “wiser”. It is the exactly wrong way to go. What we need is the expansion of Medicare to include everyone in the US, birth to death, and the improvement of that system by covering all health needs, including mental, dental, hearing, vision, and eliminating the 20% hospital co-pay Medicare recipients now are responsible for (and must buy Medigap insurance to cover). The “administrative costs” now being taken out of the “healthcare” system by companies would more than pay for it.

We would then have a system designed to provide health care for the American people, not profit for corporations. Imagine that!

 

adapted from a piece originally written to be a guest essay in the Arizona Star, but not published 

Healthcare and Public Health: Issues from 2024 will continue into 2025

As we end the year and begin a new one, what can we say was the most important health-related story of 2024, and what will be the biggest in 2025? Certainly, late in 2024 a huge story was the murder of Brian Thompson on the streets of New York. This was not in any way a random killing, but an assassination of someone the killer believed was responsible for hundreds or thousands of deaths in his role as CEO of UnitedHealthCare, the nation’s largest health insurer. As I discussed in my December 8, 2024 post ‘Murder of a Health Insurance CEO: People HATE the companies and the people who run them’, Thompson was guilty of presiding over a company whose role was to make money by collecting premiums and denying care. He also was guilty of having made this problem worse by bring in artificial intelligence algorithms, which had been shown to be wrong up to 90% of the time, to deny health care to his supposed customers – I say “supposed” because the only customers health insurance companies really have is their stockholders; the people they insure could be called “victims”. 

 Although much of the mainstream media tried hard to focus attention elsewhere – on the accused killer and his personality, on self-serving nonsensical essays like the one by Thompson’s boss, UnitedHealth Group’s CEO Andrew Witty run as a NY Times Op-Ed, etc. – the real story is the outpouring of fury at the health insurance industry from the great mass and majority of the American people. While most did not applaud the murder itself, virtually no one outside themselves and their paid punditry had anything good to say about US health insurance. Probably the overall public sentiment reflected that of Chris Rock: “He actually killed a family, a man with kids. I have condolences for the healthcare CEO. This is a real person, but sometimes drug dealers get shot.”

Another huge story, which will become even bigger in 2025, is the planned nomination by President-elect Donald Trump of profound enemies of public health to the positions responsible for ensuring that health. Foremost among these, of course, is Robert Kennedy, Jr. to be Secretary of Health and Human Services. Kennedy is well-known as a vaccine “skeptic”, which essentially means vaccine opponent, and if he is confirmed as Secretary and is able to implement policies reflecting the positions he has long advocated, we will see the resurgence of many diseases long gone from American life with accompanying deaths, as I discussed on November 15, 2024 in ‘Raw milk, vaccines, and RFK, Jr: Some dates worth remembering’. Remember polio? Measles? I do, but most do not. Check out the numbers on this picture. This is an incredible threat to the public’s health.

But, ultimately, the real story of 2024 – and probably 2025, and sadly beyond – is the fact that the American people remain the only ones in the developed, rich or really even middle-income, world that do not have universal health insurance or care. This is what would prevent the crises, delays, denials, and deaths that the private health insurance industry heaps upon our population and that engenders the wrath of so many. Indeed, that wrath continues to grow because the people who are affected, either personally or through someone they love such as a family member, who realize the inexcusable evil that the actions of these companies inflict, grows over time. While only a small percent of the ostensibly insured will have a terrible event each year, with more years more people and families experience such terrible events. Also, of course, the practices of the health insurance companies become more restrictive and more draconian, leading to both more delays and denials and deaths and more out-of-pocket costs for more people. In other countries, this happens, essentially, very little or not at all. The following chart presents the dates when other countries implemented universal health care, and when they got rid of it because it wasn’t working. Look at it carefully and you might discern a trend:

The US has a higher mortality rate than many of these countries. Jim Kahn, in the Health Justice Monitor, makes an effort to quantify the extent to which health insurance (or lack of it) contributes to this. It is an estimate, but as he notes, whether 170,000 or 220,000, it is too much. And, more, we spend much more than all these other countries on what we call “healthcare” despite so much of it going to corporate profit, that the fact that there is any excess mortality due to lack of health insurance is even more intolerable.

This might come as a shock to many Americans, especially those who have yet to personally experience the delays, denials, and deaths that the for-profit health insurance industry heaps upon its victims, because we are regularly and consistently told by politicians and pundits that a universal health insurance system would be a bad idea, that it wouldn’t work for Americans. That it would be too costly. That it would limit our freedom. We need to recognize that this is not true. Few of us want to have the freedom to choose which insurance company takes our money and then tries its best to limit our access to care (although, if we can afford it, we might choose the one that does it least). What we do want is the freedom to choose the doctors and hospitals that we believe will provide us the best care for our health needs and have our insurance pay for it. Of course, this is not the freedom that they are talking about; what they mean is the freedom of insurance companies (and to be fair, many health care providers) to make as much money as possible, which is what would be limited in a universal government-run health insurance system. And, oh, by the way, provide the funds to pay for it. Imagine that our health care dollars, from our pockets and those of our employers and our government (from the taxes we pay; the large corporations and billionaires who own them don’t) could be spent on providing us with health care rather than lining corporate pockets!

There are actual examples of “single payer” health care in the US. Military retirees and families are covered by government-funded health insurance through the VA or TriCare. In the military itself, for active duty service members, health care is not only single-payer, it is government run. The other big example of single-payer available to Americans is traditional Medicare, for those over 65 or disabled. Medicare. The most popular government program since…Social Security. Under traditional Medicare, health care services are approved for people who need them and have them ordered by a doctor, not micromanaged for each individual with people (or AI!) denying them willy-nilly. In an alternative to Medicare, people can opt for enrollment in an HMO/PPO like system run by the same insurance companies that insured (and often screwed) them before they became eligible for Medicare, and have it paid for by Medicare funds. This program, misnamed “Medicare Advantage”, takes away the guarantees of traditional Medicare and puts you back a the mercy of those for-profit health insurance companies that have treated you so well before!

This is exactly what we don’t need – erosion of Medicare. We need Medicare to be improved, to pay for 100% of all needed medical care, and expanded to cover every American, cradle to grave, paid for by the money now going to insurance company and pharmaceutical and device company and health system profits. The reason to do it is because it would benefit people, remove the major cause of heartache, loss and bankruptcy in the US, and make us more secure and happy people. The reason not to do it is that these huge corporations would no longer be making their exorbitant profits by taking premiums and denying health care, and thus would not be able to make such large contributions to the legislators who should be acting, instead, for the American people.

What do you want? Maybe in 2025 it is time to let your legislators know!

 

A final thought from Bernie Sanders:

 

 

 

 

People are more important than profit. Period.

In his recent piece, ‘An Appropriate Anger’ on his Substack “The Reframe”, writer AR Moxon states that “All people have an intrinsic and indestructible worth that cannot be measured”.

He notes:  “That’s not true of everything, you know. If a car stops functioning properly, it’s no longer as valuable as it was when it was functioning properly…[but] It’s not that way with people who, as it so happens, are not things.”

I happen to agree with that, and honestly believe that most people do. But not everyone does. Moxon has some things to say about the businesses, and the people who hide behind the corporate logo, who clearly think that profit is more important than people and act on it. He particularly focuses on healthcare as he had a very scary event with a person close to him. But healthcare is a particularly good example of the core problem that he cites. Healthcare is a system which people want to believe, and often in the face of powerful evidence to the contrary do believe, exists to help them. In fact, it is actually an incredibly efficient and effective producer of profit for the industry, often at the expense of the health of the people it ostensibly exists to help.

What makes this worth continuing to comment upon is the ongoing, aggressive, and accelerating rate at which it is happening. No sooner can one say “well, this is bad, but at least we have X as an alternative” than X is taken away or modified into a profit-producing structure that decreases availability and quality of care for people while increasing their costs. And, as a result, harming their health. (Just in recent blogs I have written about ‘Why are we paying wealthy corporations billions to limit our healthcare?, July 23, 2023; ‘Older adults cannot afford healthcare even if they are insured: Time for a new system!’, Aug 22, 2023; ‘The problems with our US 'Healthcare' system are well documented. We need to start with the solution!’, Sept 3, 2023;  ‘Primary Care, Private Equity, and Profit: How to ensure poor quality care for the American people’, Sept 28, 2023).  The perpetrators of these evils – and they are evils -- are corporations including insurance companies, health care providers, and pharmaceutical companies, often now overlapping in a vertical integration, as for example with UnitedHealth’s ownership of the physician group Optum that now provides more income and profit than its insurance business! But the perpetrators are also the people that run those corporations and make their decisions.

Groups that study the healthcare system, such as the Commonwealth Fund and the Kaiser Family Foundation, continue to issue increasingly distressing, indeed terrifying, reports about the state of US healthcare, the access people have to it (or not), and the impact that this has upon their health. The Commonwealth Fund in particular has published a series of pieces that, although written in a calm manner, create great alarm in me because of their content. ‘High U.S. Health Care Spending: Where Is It All Going?’, Oct 4, 2023, notes that ‘The United States spends twice as much per person on health as peer nations’ and concludes that

More than half of excess U.S. health spending was associated with factors likely reflected in higher prices, including more spending on: administrative costs of insurance (~15% of the excess), administrative costs borne by providers (~15%), prescription drugs (~10%), wages for physicians (~10%) and registered nurses (~5%), and medical machinery and equipment (less than 5%). Reductions in administrative burdens and drug costs could substantially reduce the difference between U.S. and peer nation health spending.

[Note that wages for physicians and nurses is on 15% of this total!]

The ‘Findings from the Commonwealth Fund 2023 Health Care Affordability Survey’ are reflected in its title, ‘How Health Care Costs and Medical Debt Are Making Americans Sicker and Poorer’. Those findings demonstrate that they are, and it is getting worse, and although the greatest impact is in those already marginalized (particularly Black Americans and those already poor), it is affecting more than half of the US population, those insured and uninsured:

Large shares of insured working-age adults surveyed said it was very or somewhat difficult to afford their health care: 43 percent of those with employer coverage, 57 percent with marketplace or individual-market plans, 45 percent with Medicaid, and 51 and percent with Medicare.

 

Commonwealth also had a series of reports, appearing every year or two, called “Mirror, Mirror on the Wall” which compared US health care costs and outcomes to other comparable (wealthy) countries. The US always did worst (see ‘US Health Rankings remain low and #Trumpcare will make them worse!’, June 18, 2017, which includes scary data tables comparing US health system performance to others). The most recent report, from 2022, has a different title that is even scarier: U.S. Health Care from a Global Perspective, 2022: Accelerating Spending, Worsening Outcomes. It includes as “highlights” (or lowlights)

·        Health care spending, both per person and as a share of GDP, continues to be far higher in the United States than in other high-income countries. Yet the U.S. is the only country that doesn’t have universal health coverage.

·        The U.S. has the lowest life expectancy at birth, the highest death rates for avoidable or treatable conditions, the highest maternal and infant mortality, and among the highest suicide rates.

Comment: These are not good things.

 It is also easy to lose health insurance. It can happen intentionally when insurance companies seek to offload high-cost individuals (ie., the sick people). This procedure (“lemon dropping”) is common in Medicare-substitute programs like Medicare Advantage and push them into regular Medicare. It is the complement to efforts to enroll only healthy seniors (“cherry picking”). The ideal insurance client, from the point of view of maximizing profit (is there another point of view?) is one who pays premiums and never uses care. Of course, if you are not yet on Medicare, you can be dropped and – that’s that. You are uninsured.

But you can also lose insurance coverage by mistake or oversight; in her Oct 25, 2023 essay ‘It Shouldn’t Be This Easy to Lose Your Health Insurance’ in the New York Times, physician Danielle Ofri describes how she lost coverage because the notification for “open enrollment” from her own HR department was collected by her spam filter, and she was put into the “basic” plan – without coverage for her family. Why does she have to re-enroll every year? And why do Medicaid patients?

The stated reason for this bureaucratic merry-go-round is that eligibility must be ascertained every year so as not to allot services to someone who doesn’t qualify. But the process of determining eligibility is highly flawed. Only some disenrolled Medicaid patients, for example, are truly ineligible; according to KFF, a health policy research organization, a majority of people (more than 90 percent in some states) were disenrolled for procedural reasons, such as missed deadlines, paperwork issues and outdated contact information. Many of these people are eligible for insurance but lose coverage because of the byzantine logistics.

Yes. Dr. Ofri was able to reinstate her coverage but not everyone can; she is not only highly educated but a physician: “For me, it took endless phone calls to fix the problem and a miserable week in which I was convinced that I’d failed my family. For millions of Americans, the system is simply unnavigable.” Especially for those Medicaid patients.

Dr. Ofri concludes with the key point:

Of course, none of this would be necessary if the only requirement for getting insurance was — as it is in many countries — being born. 

Think about that. Everybody is insured – and coverage is the same – for every person in the country. There is no enrollment or disenrollment, no coverage lapse, no inability to afford it. Everyone is covered. And it costs less – all of those countries spend less, overall and per capita, than does the US. It is administratively simpler, less costly, more effective, and results in better health status for the population. It has been adopted by every other well-to-do (and many much less well-to-do) country in the world. The US is an outlier, not in a good way, in being the only nation that doesn’t.

But American insurance companies and health care providers make huge amounts of money, money that is intended (often by the government) to be spent on providing health care but instead ends up on the positive side of a corporate balance sheet. That can be seen as a good thing, if you are a corporate executive, a completely heartless and unempathetic bastard, and, of course, you are certain that the negative impact will never affect you. We need to change that, i.e., make it affect them.

Moxon goes on at great length documenting how the “profit motive”, which can have positive effects on a society, has been so perverting by being the ONLY thing that is considered to matter (“the profit motive doesn’t care about enriching the lives of people, and it never will, any more than a garden trowel cares about the state of your garden”) that it leads to mass suffering, in health care and  “with justice, and with education, and public safety, and housing, and transport, and recreation, and water, and the arts, and elder care, and on and on and on.”

What is amazing is that so many of us have drunk enough of the Kool-Aid to believe that, while  these are not good things, we think it is inevitable and the way that things have to be. Of course, there are also those who in fact believe, either because they are ideologues or are getting rich from the corporations they control or both, or are politicians being paid from the lobbying arms of those corporations, that profit is in fact more important than people. They should voluntarily (or not) sign up on the list of people who will not get care because that would decrease profit. They are welcome to live out their principles. Until they can’t because they aren’t getting health care.

As long as the rest of us do not continue to have to sacrifice our health to their profit.