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The news is in: On November 7, 2014, the justices announced they would decide on a lawsuit claiming that the language of the Affordable Care Act doesn’t allow the government to provide tax-credits to low-and-moderate-income health insurance consumers using federally funded Obamacare exchanges operating in more than 30 states. Indeed, there’s a medical quagmire. And there is a lack of communication between doctors, staffing and patients. For example, the Affordable Care Act isn’t just about insurance coverage. The legislation is also about transforming the way health care is provided. In fact, it has brought in new competitors, services and business practices, which are in turn producing substantial industry shifts that affect all players along health care’s value chain. Read Amy Armstrongs story on page 16. On page 21, our reporter Judy Magness, profiles companies all over the country making incredible advances. Take a look at Functional Medicine and the driving breakthroughs in breast cancer while The news is in: On November 7, 2014, the justices announced they would decide on a lawsuit claiming that the language of the Affordable Care Act doesn’t allow the government to provide tax-credits to low-and-moderate-income health insurance consumers using federally funded Obamacare exchanges operating in more than 30 states. Indeed, there’s a medical quagmire. And there is a lack of communication between doctors, staffing and patients. For example, the Affordable Care Act isn’t just about insurance coverage. The legislation is also about transforming the way health care is provided. In fact, it has brought in new competitors, services and business practices, which are in turn producing substantial industry shifts that affect all players along health care’s value chain. Read Amy Armstrongs story on page 16. On page 21, our reporter Judy Magness, profiles companies all over the country making incredible advances. Take a look at Functional Medicine and the driving breakthroughs in breast cancer while

20.03.2015 Views

y amy m. armstrong Physician Shortfall in the Affordable Care Act A Problem of Supply and Demand As courts continue to hammer out whether the subsidies promised to low-income holders of health insurance benefits via the Affordable Care Act are legal and will be honored, the looming question of just how all of these new medical stakeholders will be serviced has yet to be answered. America is one year into these ground-breaking changes in health care, with a second round of enrollments kicking off Nov. 15, 2014 and scheduled to last three months. This first year’s enrollment and successful payment of premiums by approximately 7.3 million Americans was announced in August. It was significantly lower than the 12 million enrollees/ payees that the Obama Administration hoped for a year ago. Yet, based on the roll-out glitches with online health care exchanges, administration officials characterized August’s announcement as a positive step forward. As of now, the American medical system has 7.3 million more people eligible for basic health services. If they have not found one already, they are currently seeking primary THE SUIT MAGAZINE - NOV 2014 health care providers. This means that 7.3 million more cases of the flu, the common cold, high blood pressure or things more complicated such as cancer, heart conditions and stroke may be coming through the doors of clinics and hospitals. All are eligible for basic services. But are there enough providers to go around? And will the shortfall even create additional cases for the legal system as the newly insurance-entitled add litigation to the experience when their medical expectations have not been met? Just ask the leaders in the medical and legal industries, and they will vehemently tell you there is a big problem looming on the horizon. “With the implementation of the ACA, the biggest challenge is that, while in principal we are providing greater access to all Americans, the number of health care providers qualified to provide this care is disproportionate to the number of people eligible,” said Suzanne Arragg, a certified legal nurse consultant and owner of SEA & Associates in Ventura, California. Her firm evaluates the merit of medical cases from the perspective of the nursing staff, who interact with patients significantly more often than doctors. “To make matters even worse,” she said, “The number of qualified providers is also disproportionate to the reimbursement offered under ACA for the care and services provider.” Arragg forecasts a landslide of legal actions as patients get fed up with lack of access or with the treatment errors that are bound to occur in an overwhelmed system. She is not alone. Last fall, the Association of American Medical Colleges warned that the nation’s inventory of qualified doctors had dropped nearly 20,000 from the previous year. More than half of the doctors still practicing are older than 50 and headed toward retirement, according to the AAMC. Looking ahead, the AAMC indicated a shortfall of 45,000 primary care doctors by 2020 unless a major increase in enrollment, graduation and successful completion of internships occurs. That was a conservative estimate – and did not include an expected deficit of 46,000 medical professionals who handle specialties.

Arragg also sees the nation’s already crowded emergency rooms being forced to take up the slack, as patients unable to get care from a primary physician resort to a place where they cannot be turned away. Devon M. Herrick, a senior fellow at the National Center for Policy Analysis in Dallas also forecasts that trend, especially for Medicare patients. According to the Obama Administration, more than six million new enrollees opted for Medicare and the Children’s Health Insurance Program – neither of which are tied into the ACA health care exchanges – during the same time period that Obamacare had its first enrollment phase. The trouble is, the government isn’t quite sure yet about that six million number. The Center for Disease Control and the Census Bureau both released varying numbers in August. While the numbers differ, the effect remains the same. Because Obamacare lowers the dollar amount physicians are reimbursed for Medicare patients, it is quite likely that Medicare patients who do have a primary care physician may have trouble getting an appointment, especially if the practice limits the number of patients that can be seen within the economic demographic. Or, worse yet, doctors within the community will simply stop accepting Medicare. “With limited resources, more Medicare patients will turn to the emergency room,” Herrick said. He sees yet another access issue looming. Doctors, noting the laws of supply and demand, may opt to not only limit the type of insurance they accept, but may also begin charging patients a retainer fee to remain in their practice. “There aren’t enough doctors to treat all the new enrollees,” he said. “The ones most likely to suffer are those whose insurers pay the lowest reimbursements.” The government itself admits a possible supply and demand problem exists. Its own statistics from the Health Resources and Services Administration – the federal agency whose mission is to improve access to health care – indicate that 20 percent of Americans currently live in geographic areas with an insufficient number of primary care doctors. This is determined via federal guidelines dictating that each primary care doctor should have no more than 3,500 patients. Federal guidelines for dental and mental health professionals are even larger: a 5,000 patient limit for dentists and no more than 30,000 patients for mental health providers. According to the same agency, in addition to those who living in areas with an insufficient number of primary care doctors, sixteen percent live in areas with too few dentists and a whopping 30 percent are in areas that are short of mental health providers. How this plays out, remains to be seen. THE SUIT MAGAZINE p.17

y amy m. armstrong<br />

Physician Shortfall<br />

in the<br />

Affordable Care Act<br />

A Problem of Supply and Demand<br />

As courts continue <strong>to</strong> hammer<br />

out whether the subsidies<br />

promised <strong>to</strong> low-income<br />

holders of health<br />

insurance benefits via the Affordable<br />

Care Act are legal and will be honored,<br />

the looming question of just how all of<br />

these new medical stakeholders will<br />

be serviced has yet <strong>to</strong> be answered.<br />

America is one year in<strong>to</strong> these<br />

ground-breaking changes in health<br />

care, with a second round of enrollments<br />

kicking off Nov. 15, 2014 and<br />

scheduled <strong>to</strong> last three months. This<br />

first year’s enrollment and successful<br />

payment of premiums by approximately<br />

7.3 million Americans was announced<br />

in August. It was significantly<br />

lower than the 12 million enrollees/<br />

payees that the Obama Administration<br />

hoped for a year ago. Yet, based<br />

on the roll-out glitches with online<br />

health care exchanges, administration<br />

officials characterized August’s<br />

announcement as a positive step forward.<br />

As of now, the American medical<br />

system has 7.3 million more people<br />

eligible for basic health services.<br />

If they have not found one already,<br />

they are currently seeking primary<br />

THE SUIT MAGAZINE - NOV 2014<br />

health care providers. This means that<br />

7.3 million more cases of the flu, the<br />

common cold, high blood pressure or<br />

things more complicated such as cancer,<br />

heart conditions and stroke may<br />

be coming through the doors of clinics<br />

and hospitals.<br />

All are eligible for basic services.<br />

But are there enough providers <strong>to</strong> go<br />

around? And will the shortfall even<br />

create additional cases for the legal<br />

system as the newly insurance-entitled<br />

add litigation <strong>to</strong> the experience<br />

when their medical expectations have<br />

not been met?<br />

Just ask the leaders in the medical<br />

and legal industries, and they will vehemently<br />

tell you there is a big problem<br />

looming on the horizon.<br />

“With the implementation of the<br />

ACA, the biggest challenge is that,<br />

while in principal we are providing<br />

greater access <strong>to</strong> all Americans,<br />

the number of health care providers<br />

qualified <strong>to</strong> provide this care is disproportionate<br />

<strong>to</strong> the number of people<br />

eligible,” said Suzanne Arragg, a<br />

certified legal nurse consultant and<br />

owner of SEA & Associates in Ventura,<br />

California. Her firm evaluates the<br />

merit of medical cases from the perspective<br />

of the nursing staff, who interact<br />

with patients significantly more<br />

often than doc<strong>to</strong>rs. “To make matters<br />

even worse,” she said, “The number of<br />

qualified providers is also disproportionate<br />

<strong>to</strong> the reimbursement offered<br />

under ACA for the care and services<br />

provider.”<br />

Arragg forecasts a landslide of legal<br />

actions as patients get fed up with lack<br />

of access or with the treatment errors<br />

that are bound <strong>to</strong> occur in an overwhelmed<br />

system.<br />

She is not alone.<br />

<strong>Last</strong> fall, the Association of American<br />

Medical Colleges warned that the<br />

nation’s inven<strong>to</strong>ry of qualified doc<strong>to</strong>rs<br />

had dropped nearly 20,000 from the<br />

previous year. More than half of the<br />

doc<strong>to</strong>rs still practicing are older than<br />

50 and headed <strong>to</strong>ward retirement, according<br />

<strong>to</strong> the AAMC. Looking ahead,<br />

the AAMC indicated a shortfall of<br />

45,000 primary care doc<strong>to</strong>rs by 2020<br />

unless a major increase in enrollment,<br />

graduation and successful completion<br />

of internships occurs. That was<br />

a conservative estimate – and did not<br />

include an expected deficit of 46,000<br />

medical professionals who handle<br />

specialties.

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