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Health Reforms Must Include Long-Term Care Plan

By Stephen Baetge
Staff Writer

Leaders from the nation’s top long-term care advocacy organizations have presented a reform proposal to the president and Congress that they claim will enhance senior care choices and save $35 billion over 10 years but cautioned that any broad-based reform of the nation’s health care system in the months ahead will be incomplete without including long-term and post-acute care as part of the fix.

The proposal was developed by the American Health Care Association (AHCA), the National Center for Assisted Living (NCAL) and the Alliance for Quality Nursing Home Care (QNHC).

Assessment of the proposal was provided by health care strategy analysis firm, Avalere Health, using a new proprietary model to assess the federal costs of change in long-term care policy using methods and assumptions similar to those employed by the Congressional Budget Office.

According to Avalere, reforming the Medicare post-acute payment system would generate $81 billion in savings over 10 years of operation. Those savings would offset the costs of launching a new federal long-term care program estimated to cost $46 billion over the 10 years it would take to come to fruition.

The total 10-year program savings is $35 billion. A full set of assumptions and methods is published in the report entitled, “Post-Acute and Long-Term Care Reform/ Estimating the Federal Budgetary Effects of the AHCA/NCAL/Alliance Proposal.”

“The health reform goals debated today — achieving greater efficiency and value for the healthcare dollar, adding discipline to Medicare spending and better use of evidence to improve patient experience — are inextricably tied to improving long-term and post-acute care in the U.S,” explained Anne Tumlinson, a vice president at Avalere Health and lead author of the firm’s analysis. “Any meaningful reform effort will involve a careful analysis of choices, policy options and trade-offs.”

Key components of the AHCA/NCAL/Alliance plan include a voluntary federal long-term care benefit and greater choice of care settings and services for consumers with expanded access to assisted living and other home- and community-based services in addition to nursing facility care.

The plan also includes qualification guidelines for indigent participants who would be exempt from payment of plan participation fees ranging from $50,000 to $180,000 based on income and assets. Care costs above those paid by participants would be paid by the government.

The plan increases the effectiveness of health care coordination as part of the overall benefits package and also includes development of a new “prospective payment system” for Medicare post-acute care services that would base payments on patient need instead of the setting in which services are delivered.

Supporters of the proposal cautioned that decisive action is necessary to ensure the plan is effective.

“The health care reform goals articulated by President Obama and our congressional leaders — expanding access, improving quality, enhancing choice, boosting efficiency and controlling costs — can now be achieved in a realistic, comprehensive manner by adopting our proposal,” stated Bruce Yarwood, president and CEO of AHCA.

“There exists a narrow window of time to achieve the global reforms that will guide the U.S. health system for decades to come, and we must not allow this enormous opportunity to escape our collective grasp,” he concluded.

Others emphasized the need for long-term care reform as part of an overall plan to deal with the American health care system.

“Addressing post-acute and long-term care in the manner we advocate — which has now been validated by highly credible health policy experts — is not only consistent with the overarching national goal of health care reform, it is central to achieving it,” opined Alan G. Rosenbloom, president of the Alliance. “This plan provides a substantive roadmap to accomplish many of the key reform policy objectives that will benefit every American.”

There was also a call to action directed at long-term care professionals as well as to elected officials.

“Now that there is a strong, credible plan to bring about positive change that benefits every senior in need of care, it is incumbent on our elected leaders as well as our profession to help move this proposal from the drawing board to the health care marketplace,” David Kyllo, executive director of NCAL declared.

AHCA/NCAL/Alliance leaders said the current patchwork approach to reform is unsustainable in its present form and will eventually collapse.

They also said that accessing the long-term care they need to live productive, dignified lives requires many older Americans to exhaust their personal resources and declare bankruptcy — which in itself is an admission the system is morally wrong.

Advocates stressed that the demand for eldercare services like those under discussion is expected to double by 2040 and that America has an obligation to reform the nation’s healthcare system in a manner that optimizes quality, choice and efficiency throughout the health care system.

 


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