Comprehensive Health-care Legislation Brings Potential for Major
Changes in Oncology Practice
This inaugural issue of The ASCO Post follows an
intense year of debate about the American health-care system. The
themes of the health-care debate on both sides were distilled down
to two issues: (1) concerns about access to quality health care,
and (2) the personal, private sector, and public costs of health
care. Driving these two issues were the appropriateness-and the
costs-of current medical practice patterns.
A year ago, the evaluation of current medical practice by
comparative effectiveness research (CER) was codified in the
American Recovery and Reinvestment Act (ARRA). The ARRA created an
interagency infrastructure, the Federal Coordinating Council for
CER, within the Department of Health and Human Services. To
accelerate CER, this infrastructure received $1.1 billion in
appropriations. The passage of the Patient Protection and
Affordable Care Act (PPACA) 2010, in title VI, part III, subtitle
D, section 6302, subsequently ordered the indefinite insertion and
funding of the Federal Coordinating Council for CER within title XI
of the Social Security Act, in addition to the creation of multiple
other agencies for the evaluation of medical practice.
Targeted Areas of Research
Quickly fulfilling its charge to prioritize topics for CER of
medical practice, the Institute of Medicine under ARRA targeted
high-volume and high-cost areas in oncology for the first quartile
of the program. Among the topics in oncology targeted for the first
quartile of CER were the "effectiveness of management strategies,"
including watchful waiting for ductal breast carcinoma in situ and
localized prostate cancer, the use of imaging technologies in every
aspect of cancer diagnosis and care, and the use of genetic and
biomarker testing. These oncology topics have also been recently
addressed by the U.S. Preventive Services Task Force, the Medicare
Coverage Advisory Committee, the Medicare Payment Advisory
Commission (MedPAC), and the Institute of Clinical and Economic
Review.
Reducing Medicare Spending
The Congressional Budget Office estimated that the impact of a
Federal Center for Comparative Effectiveness Research on total
health-care spending would be five times the cost of funding the
center. It was estimated that CER could reduce Medicare and
Medicaid spending by $1.3 billion between the years 2008 and 2017.
This is particularly important given the approximate $500 billion
cuts in Medicare reimbursement budgeted within the PPACA. With a
$75 billion appropriation, the PPACA mandates that the
Administrator of the Centers for Medicare & Medicaid Services
develop quality measures for medical practice between 2010 and
2014, with an additional $20 billion dollars appropriated for
periodic review. These measures will be used to report performance
information to the public, and for all public and private
health-care programs.
The Social Security Act will be amended by the PPACA to include
an Authorization of Adjustment for Cancer Hospitals. In this
authorization, the Secretary will conduct a study to determine if
the costs incurred by cancer hospitals "exceed...costs incurred by
other hospitals furnishing services under this subsection with
respect to ambulatory payment classification groups," taking into
account the cost of drugs and biologicals. However, this provision
allows the Secretary to "provide for an appropriate adjustment...to
reflect those higher costs effective for services furnished on or
after January 1, 2011." Both children's and free-standing cancer
hospitals remain excluded from the Medicare prospective payment
system (PPS). Quality reporting by PPS-exempt cancer hospitals is
required in section 3005 of the PPACA and must be published by
October 2012.
Programs of Importance to Oncology
Oncology is included within the PPACA's provision for tax
credits and grants for therapeutic discovery projects. Qualifying
therapeutic discovery projects must show reasonable potential to
(1) produce new therapies that treat areas of unmet medical need,
by preventing, detecting, or treating chronic or acute diseases;
(2) reduce long-term health-care costs; or (3) "significantly
advance the goal of curing cancer within the 30-year period."
Moreover, consideration will be given to projects with the greatest
potential to (directly or indirectly) create and sustain
high-quality, high-paying jobs in the United States, and to advance
U.S. competitiveness in the fields of life, biologic, and medical
sciences. In addition, the PPACA addresses initiatives for the
diagnosis of oral cancer and colorectal cancer.
Also important to oncology is the Community-Based Care
Transitions Program in section 3026 of the PPACA, which "provides
funding to eligible entities that furnish improved care transition
services to high-risk Medicare beneficiaries." A high-risk Medicare
beneficiary is defined by a "hierarchical condition category score,
as determined by the Secretary, based on a diagnosis of multiple
chronic conditions or other risk factors associated with hospital
readmission," which may include cognitive impairment, depression, a
history of multiple readmissions, or "any other chronic disease or
risk factor as determined by the Secretary."
Additionally, the Secretary "may expand the duration and the scope
of the program...if the Secretary determines...that such expansion
would reduce spending under this title without reducing quality."
This Community-Based Care Transitions Program will be funded by
$500 billion from Medicare.
Hospice Reform
In concert with the Community-Based Care Transitions Program,
section 3132 (entitled Hospice Reform) mandates that "the Secretary
shall collect additional data and information...appropriate to
revise payments for hospice care" by no later than January 1, 2011.
The data may include but are not limited to (1) charges and
payments, (2) the number of days of hospice care attributable to
individuals enrolled for benefits, (3) the number of days of
hospice care attributable to each type of service, (4) charitable
contributions and other revenue, (5) the number of hospice visits,
(6) the type of practitioner providing the visit, and (7) the
length of the visit and "other basic information with respect to
the visit" that can include but is not limited to the cost of the
type of service and the amount of payment for the type of service.
Adjustments in per diem payments "will reflect changes in resource
intensity in providing...care and services during the course of the
entire episode of hospice care." The legislation also adopts MedPAC
hospice program recertification recommendations.
In Conclusion
The sweeping health-care legislation passed over the past year
will impact oncology practice through increased regulatory
intervention and justification of therapeutic measures via
comparative effectiveness research that incorporates
patient-centered outcomes. Watchful waiting is now an accepted
strategy in oncology. It is unknown whether the current strategies
for locally advanced, metastatic, or other poor prognosis cancers
will be influenced by CER, especially given the focus on hospice
care within the PPACA. Time will tell how these legislative
measures will influence the care of the cancer patient.
Dr. Janjan is a consultant in health policy after retiring
in 2008 as Professor of Radiation Oncology and Symptom Research at
The University of Texas M. D. Anderson Cancer Center in Houston,
Texas.