Executive Order Issued to Protect Traditional Medicare and MA Plans

October 2019 ~

The president, on October 3, signed an executive order directing the Department of Health and Human Services (HHS) to increase efforts to provide more insurance plan options under Medicare Advantage and to remove regulations that are considered burdensome to health care providers. The order is intended to protect traditional Medicare and private Medicare Advantage while ramping up alternative payment models, time spent with patients, access to innovative technology and reducing the regulatory burdens on providers.

The order follows and is in response to, the proposed Medicare for All Act of 2019, which would establish a national health insurance program under HHS that seeks to prohibit cost-sharing and provide medical benefits including hospital services, prescription drugs, dental and vision services, and long-term care.

“Medicare for All plan would effectively end Medicare and take away the Medicare Advantage plans enjoyed by millions of seniors. Their plan would force 24 million seniors to lose their Medicare Advantage coverage,” the Administration said in a news release.

According to the text of the executive order, the White House Administration believes Medicare for All would be harmful to seniors and “would take away the choices currently available within Medicare and centralize even more power in Washington, harming seniors and other Medicare beneficiaries” and “eliminate health choices for all Americans”.

The president went on to say in the order that instead of ending the current Medicare program, the Administration plans to “protect and improve” the program by building on certain aspects of the program that work well, such as the market-based approaches and the MA component in the current system. To accomplish this, the president says the Medicare program will adopt and implement those market-based recommendations developed pursuant to Executive Order 13813 of October 12, 2017.

Additionally, the order directs HHS to develop policies that will:

Provide More Plan Choices to Seniors

    • (a) Within 1 year of the date of this order, the Secretary shall propose a regulation and implement other administrative actions to enable the Medicare program to provide beneficiaries with more diverse and affordable plan choices. The proposed actions shall:
      • (i) encourage innovative MA benefit structures and plan designs, including through changes in regulations and guidance that reduce barriers to obtaining Medicare Medical Savings Accounts and that promote innovations in supplemental benefits and telehealth services;
      • (ii) include a payment model that adjusts supplemental MA benefits to allow Medicare beneficiaries to share more directly in the savings from the program, including through cash or monetary rebates, thus creating more incentives to seek high-value care; and
      • (iii) ensure that, to the extent permitted by law, FFS Medicare is not advantaged or promoted over MA with respect to its administration.
    • (b) The Secretary, in consultation with the Chairman of the Council of Economic Advisers, shall submit to the President, through the Assistants to the President for Domestic and Economic Policy, a report within 180 days from the date of this order that identifies approaches to modify Medicare FFS payments to more closely reflect the prices paid for services in MA and the commercial insurance market, to encourage more robust price competition, and otherwise to inject market pricing into Medicare FFS reimbursement.

Improve Access Through Network Adequacy

Within 1 year of the date of this order, the Secretary shall propose a regulation to provide beneficiaries with improved access to providers and plans by adjusting network adequacy requirements for MA plans to account for:

  • (a) the competitiveness of the health market in the States in which such plans operate, including whether those States maintain certificate-of-need laws or other anti-competitive restrictions on health access; and
  • (b) the enhanced access to health outcomes made possible through telehealth services or other innovative technologies.

Enable Providers to Spend More Time with Patients

Within 1 year of the date of this order, the Secretary shall propose reforms to the Medicare program to enable providers to spend more time with patients by:

  • (a) proposing a regulation that would eliminate burdensome regulatory billing requirements, conditions of participation, supervision requirements, benefit definitions, and all other licensure requirements of the Medicare program that are more stringent than applicable Federal or State laws require and that limit professionals from practicing at the top of their profession;
  • (b) proposing a regulation that would ensure appropriate reimbursement by Medicare for time spent with patients by both primary and specialist health providers practicing in all types of health professions; and
  • (c) conducting a comprehensive review of regulatory policies that create disparities in reimbursement between physicians and non-physician practitioners and proposing a regulation that would, to the extent allowed by law, ensure that items and services provided by clinicians, including physicians, physician assistants, and nurse practitioners, are appropriately reimbursed in accordance with the work performed rather than the clinician’s occupation.

Encourage Innovation for Patients

Within 1 year of the date of this order, the Secretary shall propose regulatory and sub-regulatory changes to the Medicare program to encourage innovation for patients by:

  • (a) streamlining the approval, coverage, and coding process so that innovative products are brought to market faster, and so that such products, including breakthrough medical devices and advances in telehealth services and similar technologies, are appropriately reimbursed and widely available, consistent with the principles of patient safety, market-based policies, and value for patients. This process shall include:
    • (i) adopting regulations and guidance that minimize and eliminate, as appropriate, the time and steps between approval by the Food and Drug Administration (FDA) and coverage decisions by the Centers for Medicare and Medicaid Services (CMS);
    • (ii) clarifying the application of coverage standards, including the evidence standards CMS uses in applying its reasonable-and-necessary standard, the standards for deciding appeals of coverage decisions, and the prioritization and timeline for each National Coverage Determination process in light of changes made to local coverage determination processes; and
    • (iii) identifying challenges to the use of parallel FDA and CMS review and proposing changes to address those challenges; and
  • (b) modifying the Value-Based Insurance Design payment model to remove any disincentives for MA plans to cover items and services that make use of new technologies that are not covered by FFS Medicare when those items and services can save money and improve the quality of care.

Reward Care Through Site Neutrality

The Secretary shall ensure that Medicare payments and policies encourage competition and a diversity of sites for patients to access care.

Empower Patients, Caregivers, and Health Providers

    • (a) Within 1 year of the date of this order, the Secretary shall propose a regulation that would provide seniors with better quality care and cost data, improving their ability to make decisions about their healthcare that work best for them and to hold providers and plans accountable.
    • (b) Within 1 year of the date of this order, the Secretary shall use Medicare claims data to give health providers additional information regarding practice patterns for services that may pose undue risks to patients, and to inform health providers about practice patterns that are outliers or that are outside recommended standards of care.

Eliminate Waste, Fraud, and Abuse to Protect Beneficiaries and Taxpayers

    • (a) The Secretary shall propose regulatory or sub-regulatory changes to the Medicare program, to take effect by January 1, 2021, and shall propose such changes annually thereafter, to combat fraud, waste, and abuse in the Medicare program. The Secretary shall undertake all appropriate efforts to direct public and private resources toward detecting and preventing fraud, waste, and abuse, including through the use of the latest technologies such as artificial intelligence.
    • (b) The Secretary shall study and, within 180 days of the date of this order, recommend approaches to transition toward true market-based pricing in the FFS Medicare program. The Secretary shall submit the results of this study to the President through the Assistants to the President for Domestic and Economic Policy.  Approaches studied shall include:
      • (i) shared savings and competitive bidding in FFS Medicare;
      • (ii) use of MA-negotiated rates to set FFS Medicare rates; and
      • (iii) novel approaches to information development and sharing that may enable markets to lower cost and improve quality for FFS Medicare beneficiaries.

Reducing Obstacles to Improved Patient Care

Within 1 year of the date of this order, the Secretary shall propose regulatory changes to the Medicare program to reduce the burden on providers and eliminate regulations that create inefficiencies or otherwise undermine patient outcomes.

Maximizing Freedom for Medicare Patients and Providers

    • (a) Within 180 days of the date of this order, the Secretary, in coordination with the Commissioner of Social Security, shall revise current rules or policies to preserve the Social Security retirement insurance benefits of seniors who choose not to receive benefits under Medicare Part A, and propose other administrative improvements to Medicare enrollment processes for beneficiaries.
    • (b) Within 1 year of the date of this order, the Secretary shall identify and remove unnecessary barriers to private contracts that allow Medicare beneficiaries to obtain the care of their choice and facilitate the development of market-driven prices.

“Today’s executive order reflects importance on protecting what works on our system and fixing what is broken,” stated HHS Secretary Alex Azar to reporters previewing the order. “We look forward to swiftly implementing these bold and comprehensive policies, which build on the steps we have already taken, to increase choices, encourage medical innovation, empower patients, and eliminate waste, fraud, and abuse to protect seniors and taxpayers.”

“America’s seniors are overwhelmingly satisfied with the care they receive through traditional Medicare and Medicare Advantage, and the President is continuing to take action to strengthen and improve these programs,” said HHS Secretary Alex Azar. “These kinds of improvements, rather than a total government takeover of the healthcare system, are the path to our ultimate goal: better health for all Americans.”



Source(s): Becker’s Hospital Review; The Hill; Health Markets; Fierce Healthcare; Healthcare Finance News; Healio;