2015 GASCO SPRING ADMINISTRATORS MEETING. 60 Second Summary
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1 COMMUNITY ONCOLOGY ALLIANCE 2015 GASCO SPRING ADMINISTRATORS MEETING Latest from Capitol Hill to Georgia Legislation Impacting Cancer Care Ted Okon Hilton Head, South Carolina March 6, Second Summary DC still a total mess but GOP Congress on the hot seat to get something really done this year into next But off to a rocky start! Ongoing battle over ACA/Obamacare SGR still a political football but pressure to fix this year COA pressing hard on drug reimbursement problems and Medicare/private payer payment reform 340B and site payment parity on the policy radar screens, as well as several others Cancer landscape still consolidating but community practices are innovating with novel payment models and networks Lots of positive momentum! Oncology Medical Home making real headway Community Oncology Alliance 2 1
2 Community Oncology Alliance 3 San Jose Mercury News Political Landscape in DC GOP has control of the House & the Senate Honeymoon in the Senate may be brief 24 GOP Senators up (7 in double-carry Obama states) in 2016; 10 Dems Pressure all on the GOP to advance meaningful legislation Not repealing ACA/Obamacare, like they started out doing More like meaningful bill to repeal and replace if Supreme Court rules against federal subsidies Still need 60 votes in the Senate to move a bill House GOP has hard-core right to deal with on issues Just look at homeland security fiasco President has the veto pen Community Oncology Alliance 4 2
3 Obamacare Prospects Supreme Court decision on subsidy issue could pull the cornerstone out from Obamacare Oral arguments started this past Wednesday Are subsidies only intended for state-run exchanges? If SCOTUS rules against validity of federal subsidies, does it open door for GOP repeal/replace? More serious repeal/replace plan introduced by Senate/House the Patient CARE Act Empowers individuals versus the federal government Protects some popular basics such as preexisting conditions and young adults Medicare malpractice reform Community Oncology Alliance 5 Problems with Current Medicare Reimbursement SGR-based formula broken Services payments for cancer care have been ratcheted down over time Cancer drug reimbursement based on ASP is flawed Artificially lowered by inclusion of manufacturer-to-distributor prompt pay discounts Bad debt and lagged rates further lower reimbursement Sequester cut makes everything worse and unsustainable If rates move any lower then payment reform will be academic Payers (Medicare and privates) will pay more for cancer care, in addition to patients. Community Oncology Alliance 6 3
4 Favorite (???) Acronym SGR Current patch runs out in March House/Senate, GOP/Dems have agreed on the policy of fixing the SGR and enacting payment reform Problem is how to pay for it!!! E&C trying to fix SGR by March deadline W&Ms more inclined to patch it till September Merge SGR into the budget reconciliation process Anyone s guess on what happens but safe bet is another patch Problem is how to pay for it!!! Community Oncology Alliance 7 SGR Payment Reform in a Picture Eliminates the SGR 0.5% Increases from Merit-Based Incentive Payment System Starting 2018 Increases or Decreases Based on Composite Score of Quality, Resource Use, EHR MU & Clinical Process Alternative Payment Model Participation 5% Bonus Payment Plus APM Payment 2024 & After 1% APM Increase 0.5% Increase Non- APM Additional Payment Care Management Payment for Medical Homes Community Oncology Alliance 8 4
5 It s All About the Drugs Source: The US Oncology Network Community Oncology Alliance 9 Community Oncology Alliance 10 5
6 Drug Dynamics Now & Coming MSK blacklisting of Zaltrap Dr. Peter Bach s articles/presentations on fixing the drug pricing issue through more regulation Prices of new cancer drugs escalating ASCO scorecard & 60 Minutes story Specialty pharmacy intervention Solvaldi (Harvoni) discounts close to 50% Express CEO vows to do the same with cancer drugs Medicaid implementing/considering specialty pharmacy distribution More competition therapeutic, generics (biosimilars) Pfizer buys Hospira Community Oncology Alliance 11 Medicare Drug Reimbursement Issues Manufacturer-to-Distributor prompt pay discounts artificially lowering ASP H.R. 696 and S. 506 to fix the problem Sequester cut to Medicare drug reimbursement lowering ASP + 6% to ASP + 4.3% Working with several House members to fix this Sequester politics are a headwind to a fix Both are top COA legislative issues to stop the bleeding President s budget had an ASP cut to + 3% but included rebates for drugs under water Community Oncology Alliance 12 6
7 3/17/2015 Other Radar Screen Issues 340B Increasing Hill realization that program is unsustainable and offers possible Medicare savings E&C hearing scheduled for yesterday but cancelled due to snow MedPAC hearing yesterday More cancer-related groups, not just pharma, focused on 340B problems (AIR340B) More studies on 340B problems (COA, BIO, etc.) No new data supporting 340B expansion in DSH hospitals Site Payment Parity MedPAC and now Obama budget recommending it Diverse coalition (including COA) focused on it Can pay for SGR fix, in part Weak at best response by AHA Community Oncology Alliance 13 Community Oncology Alliance 14 7
8 Other Issues Win on reducing 12 to 3 months reporting period for meaningless use Oops, meaningful use ICD-10 Think it s really coming this year Value-based Purchasing Modifier Coming to all practices by 2017 Truly meaningless for oncology COA on this! Community Oncology Alliance 15 Community Oncology Alliance 16 8
9 Consolidation of Cancer Care Community Oncology Alliance 17 Consolidation Over Last 5 Years Community Oncology Alliance Community Oncology Alliance 18 9
10 Move to Oncology Payment Reform Not prompted by the ACA/Obamacare The healthcare law lit the fuse on ACOs Providers and payers coming together to address two issues: Consolidation of cancer care into hospitals And resultant higher cost of cancer care Overall escalating cost of cancer care Increasing cost of therapy More patients being treated Community Oncology Alliance 19 Results of Early Pilots Promising Aetna Innovent Pilot General focus on following cancer drug pathways Greater adherence to pathways Lower ER utilization and hospitalizations Fewer cancer-related hospital stays PriorityHealth Oncology Medical Home (OMH) Pilot Better balancing of drug and services reimbursement within the structure of the OMH Lower ER and hospitalizations Increasing patient satisfaction Better adherence with advanced care planning and directives Community Oncology Alliance 20 10
11 United Episode-of-Care Pilot Designed to take the incentive out of chemotherapy/drug selection Pilot produced significant savings but for different reasons 34% in overall spending reduction in cancer care But included a 275% increase in drug spending No measured reduction in quality How were savings achieved? Focused on hospitalizations, ER use, and imaging Focused, timely feedback from United Right mindset Community Oncology Alliance 21 Pilots in Various Stages of Implementation COME HOME CMMI Grant Project 7 community practices transforming themselves as oncology medical homes Patient focused 24/7 cancer care Primary focus on keeping patients out of the ER and hospital AvMed & Baptist Health South Florida Oncology- Specific ACO Project Focused on the triple aim for cancer patients Moves from shared savings within fee-for-service environment to population management Assumption of greater risk Community Oncology Alliance 22 11
12 Additional Pilots in Various Stages of Implementation Blue Cross/Blue Shield of South Carolina OMH Pilot Building on the patient-centered OMH and delivery of quality and value New Aetna Project Building/broadening the concepts of pathway adherence and delivery of quality and value Anthem/WellPoint Cancer Care Quality Program Tied to pathway adherence Community Oncology Alliance 23 CMMI Oncology Payment Reform Pilot Care management fee ($160) and performance fee In addition to current FFS payments Structure similar to COA s model Must hit specified levels of quality Defined quality measures Built around 6-month chemotherapy bundle Services not drugs Major structural problems with the model Too prescriptive Performance is gainsharing competing against yourself Have no idea how performance will be measures Community Oncology Alliance 24 12
13 COA Efforts on Oncology Payment Reform Brought oncology providers and payers together in inaugural Payer Exchange Summit on Oncology Payment Reform in DC in fall of 2014 Summit II at the 2015 Community Oncology Conference April 23/24 in Orlando (Disney Dolphin Hotel) Working with Congresswoman Cathy McMorris Rogers on oncology payment reform bill based on the COA model and Oncology Medical Home Much simpler than CMMI model Draft sent out for comments; bill being finalized for introduction Working with the Energy & Commerce Committee Community Oncology Alliance 25 Medicare Oncology Payment Reform Bill 3 phase system Attest applying for accreditation Get at least conditional accreditation Implement the OMH 2 payment mechanisms Care coordination fee during the first 2 phases Shared savings after achieving accreditation Provides for easy upfront payment to put OMH processes in place Community Oncology Alliance 26 13
14 PROVIDERS AND PAYERS ARE WORKING TOGETHER! October 22, 2014 Washington Court Hotel, Washington, DC 2014 Community Oncology Alliance 27 HIGHLIGHTS FROM THE SUMMIT Over 120 providers, payers, and industry sponsors Panels on established private pay pilots & results, new pilots, and Medicare oncology payment reform Amazing similar themes/concepts across all the pilots/programs Paying for services, especially care coordination Walking lightly with the drug piece Eye opener for new payers Everyone asking for this to continue October 22, 2014 Washington Court Hotel, Washington, DC 2014 Community Oncology Alliance 28 14
15 Some Early Learnings from Oncology Payment Reform Pilots This works the quality of cancer care can be enhanced while costs reduced This takes work; it s not easy you have to change basic care processes!!! This isn t just saying you are going to change; you have to really change!!! Practice has to focus on changes that keep patients out of the ER and hospital Requires an investment in technology and people Not only is an EMR essential but getting data out of it is just as important Timely, regular feedback (scoring/benchmarking) from the payer key Community Oncology Alliance 29 Some Important Challenges Scaling the pilots for national implementation Tough to move from labor intensity of some pilots to the requirements of an automated national program Investment required for practices in staff and technology additions/upgrades Who makes the investment provider or payer? Proliferation of pathways Oncologists with multiple payer pathways not good or safe medicine Simply unsustainable Community Oncology Alliance 30 15
16 COA Oncology Medical Home Update Oncology Medical Home accreditation by the Commission on Cancer 7 COME HOME practices + 3 others working on accreditation now Standardizing 19 quality/value measures Increasingly being used by providers and payers Working with EMR and IT vendors to extract data on measures Patient satisfaction survey nearing 35,000 completed Working with CAHPS to make it official oncology survey English & Spanish versions; adding other languages Payment reform model that is adaptable Community Oncology Alliance 31 Community Oncology Alliance 32 16
17 Thank You! Ted Okon (CPAN) Community Oncology Alliance 33 17
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