The splashy Obamacare media story of the week was Jon Stewart’s Daily Show interview with Health and Human Services Secretary Kathleen Sebelius Monday night. It was worth watching, even if not as sharp as The Daily Show’s 2012 sit-down with Sebelius; the secretary stuck to her talking points, never really giving a good reply to Stewart’s repeated questions about why the individual mandate isn’t being delayed like the employer mandate. (Business Insider’s Josh Barro takes a crack at a better answer here.)
But the continuing rollout of the insurance exchanges is in many ways a state and local story, and the much of the interesting coverage from the past week was in the states. Here’s a look:
A shout-out. Steve Koff, the Washington bureau chief for the Cleveland Plain Dealer, deserves kudos for his deep dive into the roots of recent budget cuts at the Cleveland Clinic, a major healthcare provider in the PD’s backyard —and also the region’s largest employer. In mid-September, the clinic announced that it was cutting as much as $330 million from its 2014 budget. Spokeswoman Eileen Shiel said that an early retirement package would be offered to about 3,000 employees in October, and layoffs may be in the works. “Healthcare reform has really changed things, and the burden of the cost is going to be falling on patients,” Shiel said at the time. “We want to make sure we can keep care affordable.”
The news prompted a lot of to-do about the consequences of Obamacare. But this week, Koff took a methodical, clear, objective look at the factors actually shaping the Clinic’s finances—and teased out the effects of the Affordable Care Act as it was passed, subsequent court rulings and state-level policy decisions, and long-term industry trends. He deciphered the “disproportionate share,” or DSH, payments some hospitals got under Medicare to help care for the poor. These will be reduced under Obamacare—but there have been further, larger cuts under sequestration and other congressional budget deals. Koff also discussed the fallout from the decision of many states—including Ohio, thanks to the Republican-controlled state legislature—not to expand Medicaid, which will deprive hospitals of an expected revenue source. John Graves, a health policy professor at Vanderbilt, told Koff that between the DSH money and the failure to expand Medicaid, roughly 20 to 30 percent of hospitals’ uncompensated care money is being cut.
And Koff also looked at another hospital worry: the new policies on the exchanges, especially the low-premium-cost bronze and silver models that many consumers are expected to choose, and that have been heavily touted by the Obama administration. These high-deductible, high-co-payment plans will leave patients on the hook for thousands of dollars after a hospital visit. With bad debt from insured patients’ unpaid bills already on the rise, that may mean the law will reinforce an existing trend. At the same time, Koff’s piece acknowledges, most patients will now have at least some insurance—which reduces the chance that a patients’ entire bill will go unpaid. So how that issue shakes out is a little ambiguous. Either way, the PD’s detailed take was the kind of behind-the-scenes look at stakeholder claims—and check on political rhetoric—that we need more of.