The head of the Medicare program told lawmakers earlier on Thursday that the changes being implemented through the Affordable Care Act are making a difference for the nation’s seniors, and expected even more positive change with the advent of Accountable Care Organizations (ACOs)Me and payment reforms.
Jonathan Blum, deputy administrator for the Centers for Medicare & Medicaid Services (CMS) and director of the Center for Medicare, appeared before the Senate Committee on Health, Education, Labor, and Pensions (HELP) to discuss the role of health care delivery system reform in improving quality and lowering costs.
"At a time when other health care costs are rising faster than inflation, Medicare costs are stable. Following the implementation of the Affordable Care Act, growth in Medicare per capita spending has declined significantly. Overall, Medicare Part D, Medicare Advantage, and Medicare Part A premiums will remain virtually the same for 2012 as in 2011, even as beneficiaries enjoy new benefits, and Medicare Part B premiums in 2012 will be lower than previously projected,” he said.
Blum noted that much work is being done on smoothing out the delivery of care for Medicare beneficiaries across the country. States currently experience too much variation in cost structure and delivery of quality care, he noted.
“It is one of CMS’ top priorities to lead the transformation of the delivery of care, so that all our beneficiaries receive high-quality care that is coordinated among their doctors and specialists, and which also avoids errors and saves money,” Blum said.
“In order to achieve this goal, CMS has already established initiatives that encourage health care providers to deliver high-quality, coordinated care at lower costs. CMS is transforming from a passive payer of services into an active purchaser of high-quality, affordable care through these newly established initiatives.”
One HELP committee member, Sen. Mark Kirk (R-Ill.), questioned the projected savings that CMS has promoted under its Partnership for Patients program. Kirk said the idea that $35 billion would be saved over three years is not supported by any hard analysis.
“There is no actuarially estimate to back this up,” he said.
Blum admitted more needs to be done on cutting costs in the Medicare program, but said the ACO program and payment reform, along with beefed up fraud and abuse control, will go a long way in achieving the agency’s goals.
He also testified on the issue of dual eligibles, those beneficiaries able to qualify for both Medicare and Medicaid, and said new efforts to bring state and federal solutions are underway.
“Beneficiaries who are dually enrolled in Medicare and Medicaid are typically low-income seniors and people with disabilities. Although most have complex care needs, too often their care is fragmented, resulting in poor health outcomes and increased costs,” Blum said.
“These beneficiaries, their families, and their caregivers would be better served by improved coordination that ensures their complex care needs are met through seamless, person-centered approaches. To that end, the CMS Medicare-Medicaid Coordination Office has advanced new initiatives designed to align the two programs’ rules and policies and develop and test demonstrations across the country.”
Tags: Medicare, CMS, Accountable Care Organizations