Why Not the Best? A High Performance Health System in Hawaii Hawaii Uninsured Project Fall Forum October 23, 2006 Anne Gauthier Senior Policy Director The Commonwealth Fund www.cmwf.org Presentation Overview • The Commission on a High Performance Health System • The National Landscape: How are States Performing Compared to Achievable Benchmarks • State Efforts to Improve Performance • Legislative Proposals • Moving Forward The Commonwealth Fund Commission on a High Performance Health System Objective: • Move the U.S. toward a higherperforming health care system that achieves better access, improved quality, and greater efficiency, with particular focus on the most vulnerable due to income, gaps in insurance coverage, race/ethnicity, health, or age The Commission is made up of 19 Commission members who come with divers practical and policy expertise in health care delivery, financing, and access and quality improvement. Major Commission Products • Framework Statement (August 2006) – – – – Provides sense of urgency to transform U.S. health care Defines “systemness” and stresses need to achieve it Depicts major sources of current system failures Delineates roles for public and private sectors • Scorecard Report (September 2006) – Compares U.S. national average with the best achieved benchmarks across arenas of quality, access, efficiency, and equity – Provides a mechanism for monitoring change over time – Provides a yardstick against which to assess the effects of existing or proposed policies to improve performance • The framework and scorecard reports are aligned in using the same dimensions of high performance Commission Conception of High Performing Health System ACCESS QUALITY • Getting the right care • Coordinated care • Safe care • Patient-centered care • Universal participation • Affordable • Equitable LONG, HEALTHY, AND PRODUCTIVE LIVES EFFICIENCY SYSTEM CAPACITY TO IMPROVE Achieving a High Performance Health System Requires: • Committing to a clear national strategy and establishing a process to implement and refine that strategy • Delivering care through models that emphasize coordination and integration • Establishing and tracking metrics for health outcomes, quality of care, access, disparities, and efficiency The National Landscape: How are States Performing Compared to Achievable Benchmarks? C F A D Scorecard on US Health System • The U.S. falls far short on each of the core goals for health system performance relative to benchmarks – The US average ratio score is 66 across health outcomes, quality, access, equity, and efficiency – There are wide gaps across key indicators on benchmarks largely drawn from achieved rates • The consequence is needlessly lost lives, wasted health care expenditures, and lower economic productivity – $50 to $100 Billion annual savings and 100,000 to 150,000 lives – $130 billion in potential productivity gains from insuring the uninsured (IOM estimate) • Given that the US spends more than any other country, we should expect to lead on access, quality and efficiency – Benchmarks provide targets for improvement • With cost and coverage vital signs moving in the wrong direction, moving to a high performance system is of great urgency to secure a healthy nation LONG, HEALTHY & PRODUCTIVE LIVES Mortality Amenable to Health Care Mortality from causes considered amenable to health care is deaths before age 75 that are potentially preventable with timely and appropriate medical care. Deaths per 100,000 population* International Variation, 1998 State Variation, 2002 134 150 129 130 132 106 107 109 109 119 110 115 115 103 93 97 97 99 100 75 81 84 90 84 92 88 88 88 50 Fr an ce Ja pa n Sp a Sw in ed en I Au taly st ra Ca lia na d No a Ne r th w a er y la nd s G re G e ce er m an Ne Au y s w Ze tria al a De nd Un n ite ma rk d St at es Fi nl an Un ite Ire d d l Ki and ng do Po m rtu ga l 0 U . .S i ge ai 0 th 5 th ia n 5 th 0 th a r 2 ed 7 9 aw 1 ve H M A Percentiles * Countries’ age-standardized death rates, ages 0–74; includes ischemic heart disease DATA: International: WHO mortality database from Nolte and McKee 2003; U.S. 2002 state estimates: K. Hempstead, Rutgers University using Nolte/ McKee methodology. Methods in technical appendix to Scorecard Chartpack. SOURCE: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 LONG, HEALTHY & PRODUCTIVE LIVES Infant Mortality Rate, 2002 Infant deaths per 1,000 live births International variation State variation 10 9.1 8.1 7.0 7.0 7.1 6.0 5.4 5.6 5.0 5.0 5.0 5.0 5.1 5.2 5 7.4 5.3 4.4 4.4 4.5 4.5 4.1 4.1 4.1 4.2 4.2 3.0 3.0 3.3 3.5 2.2 U. S. av ge ra g Ha e 10 wa t h ii 25 %il th e % M ile e 75 dia th n 90 %il th e % ile Ic el a nd Ja pa Fi n nl an Sw d ed e No n rw ay Sp ai n Fr an ce Cz ec Aus h t Re ria pu b Ge lic rm a Be ny lg i De um nm ar k Sw Ita ly itz Ne erla nd th er la n Au ds st ra Po lia rtu ga Ire l la nd Un ite Gre ec d Ki ng e do Ca m Ne na w Ze da Un a ite land d St * at es 0 * 2001. Data: International estimates—OECD Health Data 2005; State estimates—National Vital Statistics System, Linked Birth and Infant Death Data (AHRQ 2005a). Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 States Vary In Quality of Care 2000–2001 WA VT MT ND WI SD NY RI PA IA OH NE IL UT CA CO MA MI WY NV ME MN OR ID NH KS MO CT NJ DE IN MD WV VA DC KY NC TN OK AZ NM AR SC MS TX AL GA LA FL AK Quartile Rank First Second Third Fourth Note: State ranking based on 22 Medicare performance measures. Source: S.F. Jencks, E.D. Huff, and T. Cuerdon, “Change in the Quality of Care Delivered to Medicare Beneficiaries, 1998–1999 to 2000–2001,” Journal of the American Medical Association 289, no. 3 (Jan. 15, 2003): 305–312. QUALITY: THE RIGHT CARE Preventive Care Visits for Children, by Top and Bottom States, Race/Ethnicity, Family Income, and Insurance, 2003 Percent of children (ages <18) received BOTH a medical and dental preventive care visit in past year 59 U.S. average 64 Hawaii 73 Top 10% states 48 Bottom 10% states 62 White 58 Black 49 Hispanic 70 400%+ of poverty 48 <100% of poverty 63 Private insurance Uninsured 35 0 50 Data: 2003 National Survey of Children’s Health (HRSA 2005; retrieved from Data Resource Center for Child and Adolescent Health database at http://www.nschdata.org). Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 100 QUALITY: COORDINATED CARE Nursing Homes: Hospital Admission and Readmission Rates Among Nursing Home Residents, by State, 2000 Hospitalization rates Percent Re-hospitalization rate (within 3 months of nursing home admission) Percent 30 30 21 19 20 20 16 16 13 12 10 8 12 9 10 8 10 7 0 0 Median Best state 10th %ile 25th %ile 75th %ile 90th %ile Median Best state 10th %ile 25th %ile 75th %ile 90th %ile Data: V. Mor, Brown University analysis of Medicare enrollment data and Part A claims data for all Medicare beneficiaries who entered a nursing home and had a Minimum Data Set assessment during 2000. Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 13 QUALITY: SAFE CARE Pressure Sores Among High-Risk and Short-Stay Residents in Nursing Facilities Percent of nursing home residents with pressure sores State distribution, 2004 30 By race/ethnicity, 2003 22 18 15 14 13 9 8 23 19 16 14 15 9 0 l s a ii ta 5% 10% 5% te To Haw Sta op 2 m 2 m T % tto otto o 10 B B p To High-risk residents High-risk residents Shortstay residents White 13% 21% Black 17 26 Hispanic 15 25 Asian 12 22 AI/AN 17 23 l s a ii ta 5% 10% 5% te To Haw Sta op 2 m 2 m T % tto otto o 10 B B p To Short-stay residents Data: Nursing Home Minimum Data Set (AHRQ 2005a). Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 ACCESS: UNIVERSAL PARTICIPATION Percent of Adults Ages 18–64 Uninsured by State 1999–2000 2004–2005 NH NH ME VT WA NH WA ND MT VT MT MN OR ID NY WI SD MI WY PA IA NE CA OH IN NV UT IL CO MA KS MO WV VA KY NJ RI CT MN OR ID PA IA CA IL CO KS MO AZ NM MS TX AL NC AZ GA NM OK LA TX AL GA LA FL FL AK HI SC AR MS AK VA TN SC AR WV KY TN OK OH IN NV UT RI MI NE 23% or more 19%–22.9% HI 14%–18.9% Less than 14% Data: Two-year averages 1999–2000 and 2004–2005 from the Census Bureau’s March 2000, 2001 and 2005, 2006 Current Population Surveys. Estimates by the Employee Benefit Research Institute. Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 MA NY WI SD WY DE MD DC NC ME ND NJ CT DE MD DC States with Highest and Lowest Adjusted Health Plan Premiums, 2002 Employee-only adjusted premiums Dollars 5,000 4,000 4,001 3,621 3,582 3,544 3,203 3,000 2,981 2,954 2,833 Alabama Oregon California 2,717 2,000 1,000 0 Wyoming Maine Wisconsin West U.S. Virginia average Hawaii Adapted from J. Gabel, R. McDevitt, L. Gandolfo et al., “Generosity and Adjusted Premiums in Job-Based Insurance: Hawaii Is Up, Wyoming Is Down,” Health Affairs, May/June 2006 25(3):832–43. EFFICIENCY Medicare Hospital 30-Day Readmission Rates, by Regions, 2003 Rate of hospital readmission within 30 days 30 25 22 20 20 18 15 15 16 14 10 5 0 National Mean Hawaii 10th 25th 75th Percentiles Data: G. Anderson and R. Herbert, Johns Hopkins University analysis of 2003 Medicare Standard Analytical Files 5% Inpatient Data SOURCE: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 90th QUALITY: COORDINATED CARE Children with a Medical Home, by Top and Bottom States, Race/Ethnicity, Family Income, and Insurance Percent of children who have a personal doctor or nurse and receive care that is accessible, comprehensive, culturally sensitive, and coordinated* 46 U.S. average 45 Hawaii 60 Top 10% states 36 Bottom 10% states 53 White Black 39 30 Hispanic 58 400%+ of poverty 31 <100% of poverty 53 Private insurance 23 Uninsured 0 50 100 * Child had 1+ preventive visit in past year; access to specialty care; personal doctor/nurse who usually/always spent enough time and communicated clearly, provided telephone advice or urgent care and followed up after the child’s specialty care visits. Data: 2003 National Survey of Children’s Health (HRSA 2005; retrieved from Data Resource Center for Child and Adolescent Health database at http://www.nschdata.org). Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 EQUITY: THE RIGHT CARE Receipt of All Three Recommended Services for Diabetics, by Race/Ethnicity, Family Income, Insurance, and Residence, 2002 Percent of diabetics (ages 18+) who received HbA1c test, retinal exam, and foot exam in past year Total 53 55 White 54 Black 38 Hispanic 61 400% + of poverty 200% –399% of poverty 50 100% –199% of poverty 47 46 <100% of poverty Private* 54 24 Uninsured Urban** 55 45 Rural 0 40 * Insurance for people ages 18–64. ** Urban refers to metropolitan area >1 million inhabitants; Rural refers to noncore area <10,000 inhabitants. Data: Medical Expenditure Panel Survey (AHRQ 2005a). Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006 80 What are States Doing to Transform Health System Performance? C F A D ? Keys to Transforming the U.S. Health Care System 1. 2. 3. 4. 5. 6. 7. Guarantee affordable health care coverage Implement major quality and safety improvements Work toward a more organized delivery system that emphasizes patient-centered primary and preventive care Increase transparency and reporting on quality and costs Expand the use of interoperable information technology Reward performance for quality and efficiency Encourage public-private collaboration State Efforts to Guarantee Affordable Health Insurance Coverage 1. Guarantee Affordable Health Insurance Coverage Hawaii Employer Mandate • Prepaid Health Care Act of 1974 requires all private-sector employers to provide health insurance to full-time employees • Only state to implement an employer mandate Massachusetts Health Plan • MassHealth expansion for children up to 300% FPL; adults up to 100% poverty • Individual mandate, with affordability provision; subsidies between 100% and 300% of poverty • Employers must offer Section 125 Flex Accounts • Employer mandatory offer, employee mandatory take-up • Employer assessment ($295 if employer doesn’t provide health insurance) • Connector to organize affordable insurance offerings through a group pool Source: John Holahan, “The Basics of Massachusetts Health Reform,” Presentation to United Hospital Fund, April 2006. Massachusetts Strategies for Coverage: Everyone “does their part” Health Care System Government • Subsidized insurance • The Connector • Uncompensated Care pool reform • Meet quality and performance standards • New levels of “transparency” • Adjust to payment changes Expanded Coverage Employers • Fair Share Assessment • “Free Rider” provisions • Mandatory “cafeteria plans” Individuals • Individual Mandate Source: Lischko, Amy. October 16, 2006. “Massachusetts Health Reform.” NASHP 19 th Annual State Health Policy Conference, Pittsburgh, PA. Retaining and Expanding Employer Participation: Maine’s Dirigo Health Annual expenditures on deductible and premium $3,000 Deductible amount $2,738 Employee share of annual premium $2,500 $2,188 1250 $2,000 $1,638 $1,500 1000 • Employers pay fee covering 60% of worker premium $1,100 750 $1,000 $500 $0 $550 $0 0 MaineCare 250 300 <150% 500 600 <200% 888 <250% • New insurance product; $1250 deductible; sliding scale deductibles and premiums below 300% poverty 1188 <300% 1488 >300% * After discount and employer payment (for illustrative purposes only). • Began Jan 2005; Enrollment 14,700 as of 4/30/06 Vermont Health Care Affordability Act Enacted May 2006 • Coverage expansion – Catamount Health Plans • Targets individuals w/o access to work-based coverage • Premium subsidies based on sliding scale up to 300% FPL • Comprehensive benefit package including primary care, chronic care, acute care & other services • No patient cost-sharing for preventive or chronic care services • Builds upon Wagner’s Chronic Care Model • Financing – Employer assessment – Increase in tobacco taxes – Federal matching funds from Medicaid waiver Illinois All-Kids • • • • • Effective July 1, 2006 Available to any child uninsured for 6 months or more Cost to family determined on a sliding scale Linked to other public programs - FamilyCare & KidCare Funded by federal and state funds – Children <200% of the federal poverty level funded by federal funds – Children 200%+ of the federal poverty level funded by state savings from the Medicaid Primary Care Case Management Program • All-Kids Training Tour – Public outreach program to highlight new and expanded healthcare programs New Jersey Raises Age of Dependent Status for Health Insurance • As of 5/2006, NJ requires all state insurers to raise dependent age limit to 30 Millions uninsured, adults ages 19–29 15 – Highest age limit in country – Covers uninsured, unmarried adults with no dependents 10 who are either NJ residents or full-time students – Premium capped at 102% of amount paid for dependent’s 5 coverage prior to aging out • 200,000 young adults expected to receive coverage under the law 11.2 11.8 13.7 13.4 12.7 0 2000 2001 2002 2003 2004 Source: S.R. Collins, C. Schoen, J.L. Kriss, M.M. Doty, B. Mahato, “Rite of Passage? Why Young Adults Become Uninsured and How New Policies Can Help,” Commonwealth Fund issue brief, May 2006. (Analysis of the March 2001–2005 Current Population Surveys) Implement Major Quality and Safety Improvements 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements Puget Sound Health Alliance • Regional partnership involving employers, physicians, hospitals, patients, health plans • Working to promote evidence-based medicine throughout King County, Washington • Participants agree to use evidence to identify and measure quality health care, then produce publicly-available comparison reports designed to help improve health care decision-making Work Toward a More Organized Delivery System that Emphasizes Patient-Centered Primary and Preventive Care 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 3. Emphasize PatientCentered Primary, and Preventive Care Utah’s Primary Care Network Section 1115 Medicaid Waiver • Targets uninsured adults (19–54) with family income less than 150% FPL • Provides primary care and preventive care services – Physician office visits – Immunizations – Emergency care – Lab, X-ray, medical equipment & supplies – Basic dental care – Hearing & vision screening – Prescription drugs • Hospitals provide $10 million in charity care for PCN participants Increase Transparency and Reporting on Quality and Costs 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 4. Increase Transparency and Reporting on Quality and Costs 3. Emphasize Primary, Preventive, and Patient-Centered Care Wisconsin • Wisconsin Collaborative for Healthcare Quality – Voluntary consortium formed in 2003 -- physician groups, hospitals, health plans, employers & labor – Develops & publicly reports comparative performance information on physician practices, hospitals & health plans – Includes measures assessing ambulatory care, IT capacity, patient satisfaction & access • Wisconsin Health Information Organization – Coalition formed in 2005 to create a centralized health data repository based on voluntary sharing of private health insurance claims, including pharmacy & laboratory data – Wisconsin Dept of Health & Family Services and Dept of Employee Trust Funds will add data on costs of publicly paid health care through Medicaid Expand the Use of Interoperable Information Technology 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 5. Expand the Use of Interoperable Information Technology 4. Increase Transparency and Reporting on Quality and Costs 3. Emphasize Primary, Preventive, and Patient-Centered Care Information Exchange: States Leading the Way • New York State Health Information Technology (HIT) initiative – Under the Health Care Efficiency and Affordability Law for New Yorkers, $52.9 million awarded to 26 regional health networks to expand technology in NY health care system and support clinical data exchange; Commonwealth Fund-supported evaluation underway Source: Evolution of State Health Information Exchange, AHRQ, Publication No. 06-0057, January 2006. Reward Performance for Quality and Efficiency 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 5. Expand the Use of Interoperable Information Technology 4. Increase Transparency and Reporting on Quality and Costs 6. Reward Performance for Quality and Efficiency 3. Emphasize Primary, Preventive, and Patient-Centered Care Building Quality Into RIte Care Higher Quality and Improved Cost Trends Percent 160 Cumulative Health Insurance Cost Trend Comparison 140 120 100 • Improved access, medical home – One third reduction in hospital and ER RI Commercial Trend 80 – Tripled primary care doctors 60 40 RIte Care Trend 20 20 03 20 01 19 99 19 97 0 19 95 • Quality targets and $ incentives – Doubled clinic visits • Significant improvements in prenatal care, birth spacing, lead paint, infant mortality, preventive care Source: Silow-Carroll, Building Quality into RIte Care, Commonwealth Fund, 2003. Tricia Leddy, Outcome Update, Presentation at Princeton Conference, May 20, 2005. Encourage Public-Private Collaboration to Achieve Simplification, More Effective Change 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 5. Expand the Use of Interoperable Information Technology 4. Increase Transparency and Reporting on Quality and Costs 6. Reward Performance for Quality and Efficiency 3. Emphasize Primary, Preventive, and Patient-Centered Care 7. Encourage Public-Private Collaboration to Achieve Simplification, More Effective Change Minnesota Smart-Buy Alliance • Initiated in 2004 – alliance between state, private businesses & labor groups • Purchase health insurance for 70% of state residents ~3.5 million people • Pool purchasing power to drive value in health care delivery system • Set uniform performance standards, cost/quality reporting requirements & technology demands • Four key strategies: 1. Reward or require “best in class” certification 2. Adopt and utilize uniform measures of quality and results 3. Empower consumers with easy access to information 4. Require use of information technology Expanding Coverage is Only One Piece of the Puzzle 1. Guarantee Affordable Health Insurance Coverage 2. Implement Major Quality and Safety Improvements 5. Expand the Use of Interoperable Information Technology 4. Increase Transparency and Reporting on Quality and Costs 6. Reward Performance for Quality and Efficiency 3. Emphasize Primary, Preventive, and Patient-Centered Care 7. Encourage Public-Private Collaboration to Achieve Simplification, More Effective Change Several States Attempting Comprehensive Health Reform • Maine, Maine and Vermont have quality initiatives built into coverage expansions • Maine – Created Maine Quality Forum to advocate for high quality health care and help each Maine citizen make informed health care choices. • Massachusetts – Cost and Quality Council formed • Vermont – Quality improvement initiatives • Public-private collaboration • Collection of health care data from all payers • Provides rules to publicly report price & quality information Rhode Island: Five-Point Strategy • 5 point strategy – – – – – Creating affordable health plans for small businesses & individuals Increasing wellness programs Investing in health care technology Developing centers of excellence Leveraging the state’s purchasing power RI Quality Institute – Non-profit coalition including hospitals, providers, insurers, consumers, business, academia & government – Partnered with “SureScripts” to implement state-wide electronic connectivity between all retail pharmacies and prescribers in the state • Health Information Exchange Initiative – Statewide public/private effort – AHRQ contract 5 yr/ $5M – Connecting information from physicians, hospitals, labs, imaging & other community providers National Legislative Proposals to Facilitate State Innovations H.R. 5684: Health Partnership Through Creative Federalism Act Rep. Tammy Baldwin (D-WI) • • • • Rep. Tom Price (R-GA) Real cooperation from across the aisle – proposed by Baldwin and Price with the support of both the Heritage Foundation and the Brookings Institute; National Governor’s Association also had role in drafting the bill Requests that states submit proposals for state health care coverage expansion and improvements in quality, efficiency, cost-effectiveness, and the appropriate use of health information technology State proposals defined as statewide, multi-state or limited to certain regions Establishes a Commission to: – Request and review proposals and submit a list it recommends for approval to Congress – Report to the public concerning progress made by states – Make recommendations for minimizing negative effects of state programs on national employer, provider organizations, insurer S. 2772: Health Partnership Act Senator George Voinovich (D-WI) Senator Jeff Bingaman (D-NM) • Provides states with grants to carry out innovative state health programs, with priority given to programs most likely to expand coverage and improve access • Establishes a Commission to: – provide states with reform options for state health care expansion and improvement programs – establish minimum performance measures and goals with respect to coverage, quality, and cost of state programs – review state applications and determine whether to submit a state proposal to Congress Moving Forward States Can Lead the Way What States Can Do to Promote a High Performance Health System: Strategies to Expand Coverage • Design shared responsibility strategy to include state, employers and individuals • Expand public programs • Provide financial assistance to low income workers and employers to afford coverage • Require employers to offer Section 125 benefit plans • Mandate individuals to purchase coverage • Require employers to offer and employees to take up insurance • Require insurers to raise age limit for dependents • Pool purchasing power and promote new benefit designs to make coverage more affordable • Develop reinsurance programs to make coverage more affordable in the small group and individual markets What States Can Do to Promote a High Performance Health System: Strategies to Improve Quality and Efficiency • • • • • • • • Promote evidence-based medicine Promote effective chronic care management Promote transitional care post-hospital discharge Encourage data transparency and reporting on performance Promote/practice value-based purchasing Promote the use of health information technology Promote wellness and healthy living Encourage selection of medical home and improved access to primary care and preventive services • Simplify and streamline public program eligibility and redetermination Challenge for Hawaii: Continue the commitment to universal coverage AND choose another dimension on which to lead! Selected Commonwealth Fund Publications • The Commonwealth Fund Commission on a High Performance Health System, Framework for a High Performance Health System for the United States, The Commonwealth Fund, August 2006 • The Commonwealth Fund Commission on a High Performance Health System, Why Not the Best? Results from a National Scorecard on U.S. Health System Performance, The Commonwealth Fund, September 2006 • S. Silow-Carroll and F. Pervez, States in Action: A Quarterly Look at Innovations in Health Policy, The Commonwealth Fund, Summer 2006, Vol. 5. • Forthcoming: State Scorecard on Health System Performance All publications are available at http://www.cmwf.org Acknowledgements Karen Davis President Stephen C. Schoenbaum Executive Vice President for Programs Cathy Schoen Senior Vice President for Research and Evaluation Alyssa Holmgren Research Associate Sabrina How Research Associate Ilana Weinbaum Program Associate Visit the Fund at: http://www.cmwf.org