Friday, June 14, 2013

Director Keck Goes to Washington

By Scott Hultstrand, SCMA General Counsel

Our State Medicaid Director Tony Keck was called to Washington this week by the US House Energy and Commerce Committee to testify at a hearing that was entitled:  “The Need for Medicaid Reform:  A State Perspective.”  Here you can view the written comments that he submitted along with the video of the entire hearing, which lasted almost two hours.

Keck testified alongside two other invited guests, including Dr. Joe Thompson, the Surgeon General of Arkansas, and Seema Verman, a health policy expert who helped with much of Indiana’s Medicaid reforms. 

So was he there to beat the drum against Medicaid expansion?   
Not at all, and in fact Medicaid expansion wasn’t even really discussed, except for a few passing remarks by House members who were asking questions.  Instead, the focus was on this question:  “What changes need to be made to the Medicaid program in order to ensure its long-term sustainability without breaking the federal or state budgets?”  Keck’s primary answer to that question is revealed in his opening remarks:  

“I believe there is a developing bi-partisan interest among states for flexibility to manage programs locally in exchange for more accountability for improved health and more predictability in expenditures at the state and federal level.”  In other words, more local control of Medicaid and less federal interference in how the states run their programs.   

Much of the discussion centered on the role that the Medicaid recipient should play in controlling their health care costs.  Talk about empowering Medicaid beneficiaries to make health care decisions centered on the lack of flexibility states have had to wield either the carrot or the stick when it comes to patient benefit design.  Keck testified that South Carolina is pursuing some aggressive goals when it comes to what’s known as Value Based Insurance Design, but that “Medicaid is all carrots and no sticks, and sometimes you need sticks.”  He said that South Carolina wants to go much further than the federal government has with respect to requiring patients to take an active and responsible role for their care, and that he will be approaching CMS in the next few months with waiver requests.

Speaking of waiver requests, that was a major bone of contention during the hearing.  Keck responded to the first question of the day, which was from the Republican chairman, about things that he would do to remove roadblocks in the Medicaid system by suggesting that the waiver process needs to move much quicker.  Keck brought up a waiver that South Carolina requested 5 years ago that was just now being approved after taking up “hundreds if not thousands of hours of staff time,” even though the waiver was regarding an issue that only cost $3 million.  The first Democrat to ask questions brought up a different perspective on the waiver issue, eliciting a response from Arkansas’ Surgeon General that Arkansas’ latest Medicaid waiver had only taken CMS two months to grant (though further questioning from the next Republican revealed that Arkansas had other waivers that had taken much longer than two months).

Block grants also came up.  Not surprisingly, the questions and comments landed safely within the party lines, with Republicans making statements for and Democrats against block grants.  During this line of questioning Keck agreed that if a state could be given more flexibility within the constraints of a capped block grant amount, then better Medicaid outcomes would result.  What about payment reform?  According to Keck, “Fee for service is not universally the cause of all our problems…”, but he and the others testifying made it clear that payment reform was necessary and would be coming.  In a nod to the hospital community, Keck also testified that EMTALA reform was necessary to address the abuses of emergency room visits.

All in all, if you are interested in the continued fight about Medicaid expansion, this hearing will disappoint.  But, if you are interested in three top Medicaid experts and their thoughts on the reforms that need to be made to the Medicaid program, and if you enjoy some occasionally snarky back and forth between US House Republicans and Democrats when asking (loaded) questions, then take a few hours and watch the hearing.  Whether you end up agreeing with Keck or not, you will be hard pressed to disagree with the fact that further changes in South Carolina are coming –  whether it be the way that physicians are paid or patients are held responsible (unless CMS denies the waiver!). 

Therefore, South Carolina’s physicians need to continue to be the Voice of Health Care when it comes to treating the Medicaid population, and this means we need to be involved in these significant policy discussions, which also means we need to be thinking deeply from our front-line perspective of how best to care for the neediest in our great state. 

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