Nov
10

Disclosure, cranky lawyers and bad actors

So, what happened yesterday at the comp conference?
Lots. Two work comp execs agreed to sit in front of a couple thousand people while being grilled by an opinionated and occasionally-combative interviewer, an event about as rare as a Rick Perry-Mitt Romney group hug. And in a clear demonstration of his commitment to full financial transparency Sedgwick’s Dave North agreed to share his vendor contracts with customers.
Kudos to Dave for his bold stance.
Local Las Vegas attorneys got really mad at Chris Brigham for his involvement in impairment ratings and discussion of Nevada’s…”challenges”. Mad enough for conference organizers to hire security for Chris very-well-attended talk yesterday when threats to disrupt were made.
A much-needed and by all accounts well-done and even handed presentation on medical foods by Progressive’s Tron Emptage was interrupted by a rather belligerent representatative of Physician Therapeutics Inc., the firm behind much of the physician dispensing of medical foods in CA. Methinks the inciden confined the very point Tron was making; there are good and bad actors in the medical foods business; Tron singled out HSA client Primus as one of the good actors.
More later…


Nov
8

The Sandy Blunt story; good news at last

For what seems like years I’ve been reporting on Sandy Blunt’s case and his ongoing and till now fruitless effort to clear his name.
Today we got some good news.
Sandy has long contended the prosecutor, Cynthia Feland, withheld key information that proved he (sandy) did not commit a felony. Today, a North Dakota court agreed, stating:
” The Panel concludes Cynthia M. Feland did not disclose to Michael Hoffman, defense attorney for Charles Blunt, the Wahl memo, and other documents which were evidence or information known to the prosecutor that tended to negate the guilt of the accused…”
Feland, now a sitting elected judge, has had her attorney’s license suspended and has been ordered to pay court costs.
This is not the end of the story. Feland will undoubtedly appeal. But she may well find the more she tries to justify her actions the worse it gets for her.
Beyond this specific issue lies the complete failure of the North Dakota justice system and particularly the Supreme Court. That august body refused to grant Sandy a new trial even when it was confronted with the same evidence that he was wrongfully convicted.
One would hope they feel at least some small embarrassment, if not shame at their complete abdication of responsibility.
One would hope.


Nov
7

Opioids in work comp – problem solved!

I received a welcome email from a colleague Friday with the news that one company has solved a problem of monumental proportions that has bedeviled many a payer, regulator, employer and claimant – the rampant abuse of opioids.
Imagine my surprise and delight. The $1.4 billion catastrophe that has driven up costs for employers, kept many injured workers out of work for far too long, devastated families and led to addiction and diversion – is now fixed.
Talk about making my day!
I eagerly opened the email link, my fingers tripping over each other in my haste to discover who had achieved this epic success. As I waited for the link to open, my mind was filled with wonder at the achievement! Who could have done this? How could we reward them? For truly this wondrous accomplishment deserves all the recognition the industry can possibly confer!!!
At last (it was actually microseconds, but such was my excitement that it seemed like it took FOREVER) a window opened, and the screen filled!
It was none other than Integrated Prescription Solutions, formerly known as WorkCompRx.
Amazed. Stunned. Blown away. That was my reaction.
My bright hopes instantly burned to ashes as I read the screen. Imagine my pure, unadulterated shock; the bottomless pit of disappointment filled with crushed hope into which I fell as I discovered the party that had claimed this transcendental success.
For IPS/WorkComp Rx is the same company that, a mere two years ago, had taken my copyrighted work and without my permission, used it in a marketing presentation. Moreover, this company mischaracterized the work in such a way that it appeared I endorsed their approach and business model, if not them specifically.
Now, perhaps they had changed their ways, and had actually found the Holy Grail of opioid abuse prevention.
Alas, it was not to be. As I read their website, it became abundantly clear that while the name had changed, the company had not. In fact, I’m not sure they have progressed at all over the last two years.
There was precious little about opioids, and no “solution” I could find. Nope, same old marketing-speak claiming best-in-class this and industry-leading that. A mention here and there of opioids and utilization control but nothing new, insightful, innovative or even remotely promising.
There are no miracle solutions, no instant results. There is just hard work, careful analysis, thorough attention to detail, and persistent efforts. That’s what it will take to reduce the problem of opioids in workers comp.
Anyone who tells you they’ve “solved” the problem either a) doesn’t understand the problem – at all; or, b) doesn’t think you do.


Nov
3

Opioids in work comp – gaining visibility

Most workers’ comp executives have moved opioid abuse and overuse to the top of their “we’ve got to fix this now” list.
Those who haven’t, should.
Here’s why.
Employers and insurers will spend $1.4 billion on narcotics this year; the vast majority of those dollars will pay for opioids – OxyContin, Percoset, Actiq, Vicodin and the like.
In all likelihood, hundreds of claimants are dying every year as a direct result of opioid abuse.
There’s very little credible evidence that long term opioid use is appropriate treatment for work comp injuries. These are drugs primarily developed – and approved by the FDA for – treating end-stage cancer pain. Not much cancer in work comp.
There’s ample evidence that long term opioid use leads to longer claim duration, long term disability, higher costs and much more medical expense. And that’s on top of the damage it does to relationships, families, and society.
The insurance industry is beginning to focus on this as a critical problem, one that, although it is societal in nature, directly and dramatically affects employers and policyholders. Regulators and legislators are also keenly interested; I participated in an IAIABC webinar earlier this week along with Dr Kathryn Mueller, Medical Director for Colorado’s work comp system and Dr Gary Franklin, Medical Director for the Washington State Fund. There were more than 170 folks on the call, a clear indication of how important the issue is.
The big insurance trade groups are also addressing opioid use, driven by members looking for so-far elusive solutions to a problem costing their policyholders billions in added, unnecessary cost.
It is also going to be the subject of at least one session in next week’s workers comp conference and is on the agenda for WCRI later on this month as well.
This is long overdue but nonetheless very, very welcome.
To quote Gary Franklin MD, this is a “hair on fire” issue – and if your hair’s not on fire yet, you’re either a) bald or b) not paying attention.


Nov
2

The WCRI Conference – what to expect

Following close on the heels of the National Work Comp Conference is the annual educational get-together put on by the Workers Comp Research Institute in Boston. This year marks the 28th (or perhaps 29th) edition; the agenda reflects how this industry has evolved over those three decades.
I caught up with WCRI Executive Director Rick Victor yesterday to discuss the conference and get a bit more detail on what’s going to be shared with attendees.
MCM – What are the goals of the conference?
Rick – We are focused on most important issues e.g. narcotics, use and cost of medications, and other cost drivers. We want attendees to come away with hard evidence of the nature of problem and information about solutions, including hard data on their effectiveness.
MCM – Any changes this year from past?
Rick – The format continues to evolve; it is a pretty robust mix of research and includes practitioners who don’t always agree with each other or with WCRI. We think it is important to not stack the deck.
MCM – The agenda has a strong focus on pharma – why and what’s driving it?
Rick – We try to align our research agenda with very important national issues like abuse and diversion of narcotics; as you know this far transcends WC and is a national public health crisis. Public policies about pharmaceuticals in WC are about 10 years behind medical policies and medical utilization, and this needs to change.
Some of the actions that public officials have taken about narcotics are not very well informed and not very sophisticated; there ought to be good opportunities to address this issue, if they have good info to make good decisions. Moreover, public decisions don’t make it easy for payers to get into they need to identify abuse and diversion; our research might help public officials to make better decision about what tools are appropriate.
MCM – There’s a session re hospital expense – what will we learn?
Rick – We see in WCRI’s CompScope(r) benchmarking that in a majority of states hospital costs are a bigger driver than non-hospital costs. Hospital price regulation is an area that is elusive for public officials and we would like to bring a bit more light to that. We’ve developed a new tool that will be unveiled at meeting, a hospital cost index, that will make meaningful and interesting comparisons among and between states.
MCM – I note there’s a surprise ending to this year’s conference – What’s the surprise?
Rick – It’s a big issue, an ‘elephant’. Elephants are big and can be nasty, and we want to help show how you might step out of the way when the charge is occurring. We will focus on an issue that is significantly under appreciated, hopefully to move it higher on the radar screen.
You can register for the Conference here.


Nov
1

The comp conference…

Is looking pretty busy. According to organizer Nancy Grover, this year’s industry get-together will have more folks in attendance than last year. The vendor list is long as well, which bodes well.
Here’s a few of the sessions that caught my eye.
Good friend and colleague Mark walls is moderating the General Session panel featuring many of the big names in comp: Maureen McCarthy of Liberty, Ken Martino of Broadspire, PMA’s Tina Preisig, and Eileen Auen of PMSI are just a few of the headliners.
Tron Emptage of Progressive Medical is speaking on medical foods Wednesday afternoon. Medical foods have gotten big press in California of late and look to be one of those areas ripe for abuse. However, there’s a lot more to this than you might think, and there’s very solid science behind some products, products that offer a much-needed and safer alternative to certain drugs.
Dr Jake Lazarovic, Broadspire’s Medical Director, and Dr Steven Feinberg of American Pain Solutions are leading a session Thursday am on Chronic Pain. These are two highly experienced and very knowledgeable experts who are certain to shed much-needed light on an issue that’s at the top of many an agenda.
A session Thursday afternoon on managing psychosocial issues in comp has a strong panel focused on what may be the knottiest problem in comp.
Of course there’s the usual menu of vendor entertainment options; the mail box has been flooded with invites for the past week. You west coast folks need to remember those of us from the east are three hours behind you; when you’re just getting going we’re nearing bedtime!


Oct
27

Health Wonks – the SuperHero Edition!!!

The deficit battle is on and politicians are in full voice – both in Washington and out on the hustings, where GOP candidates are loudly denouncing health reform as unAmerican and a job killer. Hipsters and greying hippies are occupying Wall Street and Main Street, while Tea Partiers are claiming they hold the title of most outraged. The one percent is wondering what the 99 percenters are so upset about, while the 99 percenters are after their well-coiffed scalps.
Into the bloody fray, with nary a fear for life or health, reputation or career, plummet our worthies, those denizens of the blog-o-sphere that specialize in separating the non- from the -sense, the BS from the fertilizer, the ill-formed opinion from the logically-based interpretation!
Join us as we follow their heroic deeds, gasp as you read their trenchant and timely missives, awed by their grasp of the incredibly-esoteric and yet critically important.
Let’s get it started (cue Fergie…)
First out of the box are Shannon Brownlee and Joe Colucci of the New Health Dialogue. These erudite authors show no trepidation as they take on the opponents of the US Preventive Services Task Force, marshalling cogent, clear language to confront the fallacies of those who would condemn the USPSTF’s stance on prostate screening. Watch out, Newtster!
Closely on their heels comes Maggie Mahar, who is very concerned the USPSTF will get defunded by some knuckleheads in Congress just because some physicians, device manufacturers, and others don’t like hearing their stuff doesn’t work like they say it does. Maggie, Maggie, Maggie! Where is your faith in the goodness of mankind??
Jaan Sidorov wants to make sure we don’t get all amazed by Siri and her techno-friends; we do need people involved in the care process, even if it is telemonitoring.
At the extreme other end of the political spectrum is John Goodman, who’s ‘penned’ an intriguing treatise on what we should be doing about long term care. He has five main points, several of which I – dare I say it – actually concur with. Wonder of wonders!
Chris Langston reports from his first meeting of the Medicare Payment Advisory Commission – that rationer of care also known as MedPAC. No, it’s not a medical device company’s PAC, it’s the group that heavily influences Medicare’s payment and coverage policies. For all those who decry them durn gubmint byoorowkrats, read Chris’ post.
Big news is coming soon, with the Medicare Shared Savings Final Rule amongst the biggest (at least among us kids). Health Affairs has a multi-post entry that you can best find at their blog; discussing the key aspects of the Shared Savings program in detail. If this is your thing, click on!
Tinker Ready’s flavoring her post with a hefty dash of outrage from Boston’s Occupiers – who don’t like the private company – health insurance linkage one little bit.
From deep within the world of insurance, David Wlliams emerges with an explanation of the “Explanation of Benefits” he got from his insurance company, as explained by his provider. It’s pretty entertaining, and surprisingly well-written. Of course, anything that’s remotely readable that comes from an insurer or provider is deemed “well-written”…
On a macro scale, one topic that deserves much more consideration is population health. From that part of the wonking world comes a great post on disparities between – and some of the reasons for – health status in rural and urban areas. Thanks to Kristen Siemering for her entry!
Louise – a very experienced and highly knowledgeable insurance broker in Colorado, thinks the folks predicting the demise of the insurance broker are misguided, misinformed, and just plain wrong. There is value there, value that can’t be replaced easily or cheaply.
Another view comes from Bob Vineyard, who’s commenting on one exchange that seems to be struggling.
Trudy Lieberman’s thinking that those employer policies that don’t provide much coverage and have massive deductibles and copays are not serving employees – or their families – well.
The Insurance Exchanges are slated to play an important role in reform – and California is well on the way with their’s. After multiple meetings and much dialogue with lots of stakeholders, Linda Leu is seeing good progress.
Another perspective comes from Jason Shafrin, who thinks the exchanges may not do much to help competition as many markets are already consolidated.
Gary Schwitzer takes the mass/statistically illiterate/medically ignorant media to task in his post on media’s common mistakes – well, that’s not exactly what it’s about, but pretty close. Gary points out that what you read may well be, well, wrong.
One area that cries out for clear, cogent explanation is the whole hospital readmissions uproar. Fortunately, Bradley Flansbaum’s here to clear things up!
Your faithful author’s contribution is a treatise on what’s REALLY going on in Massachusetts post-reform. Hint – it’s been five years, and things are starting to change – a lot.
Roy Poses continues to shine his very bright light on inappropriate or concerning links between research and commercial entities – as he’s ben doing for as long as I can remember. This week he takes the NYTimes to task for not asking the tough questions about an academic institution’s desire to work more closely with private industry. Roy is great, but I hope he checks under his car before he starts it every morning.
While all the attention is on the health insurance market, Jon Coppelman hasn’t missed a big story in workers comp – the market for insurance looks to be getting harder, with pricing ticking up. That big gust of wind that just went by? Nope, not a hurricane remnant, but a sigh of relief coming from Liberty Mutual, Chartis, Hartford, and the Travelers…
Now that this is put to rest, we can all hit the sack, secure in the knowledge that here, in (YOUR HOME TOWN), we are safe and sound, protected by misinformation by these diligent pursuers of the truth. Or at least their version of it.
cheers!


Oct
26

Will Florida fix its (work comp) drug problem?

This morning’s edition of WorkCompCentral came with the welcome news that legislation has been introduced in the Florida state senate to cap the price of repackaged drugs at the original manufacturer’s AWP plus a dispensing fee.
The bill, which has strong backing from the Chamber of Commerce, insurers, and many employers, is an attempt to forestall a work comp premium increase driven in part by the added cost of repackaged drugs that have added 2.5 percent to employers’ premiums.
Repackaged drugs now account for over half of the drug spend in the Sunshine state, and the cost per script is more than three times what retail pharmacies would charge.
While there are powerful interests backing the bill, repackagers and companies such as AHCS are opening their wallets and unleashing their lobbyists in an attempt to forestall any action.
I don’t know what it will take legislators to pass the bill, and given Gov Rick Scott’s propensity for blind ignorance if not willfull cupidity on these matters he could well veto any bill.
In which case employers will be paying millions more to line the pockets of these repackagers and dispensing/”technology” firms.


Oct
25

Is “ObamaCare” increasing health premiums?

There’s been much discussion of the impact of the health reform bill – the NFIB and GOP Presidential candidates claiming the ACA has already caused insurance premiums to climb, while others are deriding President Obama for his statements that ACA would reduce premiums.
What’s true, and what’s BS?
One way to separate the fertilizer from the poop is to turn to independent sources, such as FactCheck. Another is to go back and see what the President actually said reform would do.
First, FactCheck. In their view, “The [health reform] law has caused only about a 1 percent to 3 percent increase in premiums, according to several independent experts.”
That finding is consistent with reports from other sources, and is based on the changes already in place due to ACA – no upper monetary limits on benefits, covering children to age 26 with no pre-ex exclusions, and no cost preventive care. There’s lots of sources in the link above that verify the 1 – 3 percent figure, including former Bush appointee Gail Wilensky.
Now on to President Obama’s blown promise that reform would reduce premiums. Let’s see what he actually said:
“On Monday I met with representatives of the insurance and the drug companies, doctors and hospitals, and labor unions, groups that included some of the strongest critics of past comprehensive reform proposals. We discussed how they’re pledging to do their part to reduce our nation’s health care spending by 1.5 percent per year. Coupled with comprehensive reform, this could result in our nation saving over $2 trillion over the next 10 years, and that could save families $2,500 in the coming years — $2,500 per family.”
I’d note that the President was making two points;
1) reform and cost reductions from stakeholders would reduce spending by 1.5 percent. Not reform alone.
2) this statement indicates the cost reduction, when spread across every American family, would equate to a reduction of $2500 per family over ten years.
Obama did NOT say that family premiums would drop by $2500 per year, and in his other statements, the President made it clear reform would reduce the RATE OF INCREASE by 1.5 points, not total spending.
That said, it is still premature for any conclusions re the impact of reform on health care premiums, other than the one noted above – initial, already-implemented measures have increased premiums by 1 – 3 percent.
That still doesn’t address why premiums went up nine percent. And I’d argue that the data indicates the differential has much more to do with insurers’ desire to generate margin than any real increase in underlying costs.


Oct
21

Physician dispensing – boy do we have a deal for you!

A friend who happens to be a practicing physician here in Connecticut was approached recently by physician dispensing firm Rx Development with a great offer. The physician could dispense medications right from his/her own office, at no cost and no obligation, and make buckets of money!
How much money?
Well, how about a 4443% markup on Soma’s generic?
Or 4330% on Mobic’s?
2060% on Ultram’s?
But wait. There’s more. The doc can pick her/his own drugs, negotiate for a bigger share of the margin, and Rx Development does all the work, provides all the drugs, handles all the billing, and trains the doc’s staff – all at NO CHARGE!
Of course, this only applies to work comp and auto accident patients.I guess increasing compliance, the avowed intent of physician dispensing, isn’t that important unless you can get paid huge dollars.

Oh well, one should do well if one is doing good! And if one can’t do well, what’s the point of doing good?
I’m hoping the State of Connecticut is aware of this, and takes prompt action to address this practice – which is nothing more than abusing the system to make outrageous profits at the expense of Connecticut’s employers. If you agree, please pass this on to the Connecticut Workers Compensation Commission Chair at
wcc.chairmansoffice@po.state.ct.us
We have GOT to stop this.
Here’s the letter received by the physician.
“Dr. Jenson,
Thanks for taking the time to speak with me this morning. We work with Offices in your area that see workmans comp [sic] patients and assist them with almost every aspect of the visit. Here is some information regarding what we were discussing and what we offer. Also here is a link to the Website. www.rxdevelopment.com
Our largest asset is In-Office Medication. What we do at Rx Development is store only the medications you would like in prepackaged (30,60,90,120 Count bottles) in a cabinet for your workman comp [sic] and auto accident patients. The medication is bar coded and electronically scanned through our web based dispensing system. There is absolutely no out of pocket cost to the Doctors or Patients. We handle everything for you: supplies, collections, set up and training, and tracking of inventory. Not only do your patients have the convenience of having their medical needs addressed in one location, you also capture the profit your [sic] passing onto local drugstores. [emphasis added]
We would love the opportunity to give you a free no obligation consultation to show you what makes us different and show you how easy and effective this really is!!
Here is more information from our Website:
Point-of-Care physician dispensing makes sense for both doctors and patients alike. From the convenience of having prescriptions on-site to the extra revenue doctors can easily generate, Rx Development offers unparalleled medication dispensing services that are above the rest.
In-office medication dispensing or point-of-care dispensing, gives physicians a greater success rate when it comes to managing the treatment process. While patients enjoy the convenience of having their medical needs addressed in one location, doctors achieve maximum medical improvement (MMI) for the injured, getting them back to work as soon as possible. Medication dispensing programs not only expedite Workers’ Compensation, personal injury, and automobile accident claims, but effortlessly yield supplemental revenue sources for the physicians.
· Obtaining Medications–It all begins with the convenience and availability of patient pharmaceuticals at your office. Rx Development will advance the amounts necessary to implement the program including medications that have been properly labeled and packaged in compliance with DEA and FDA regulations.
· Equipment and Supplies–Everything you need to properly dispense medication is at your fingertips. No out-of-pocket costs are necessary; all supplies are included as part of our management. This includes:
· Billing and Collections–Enjoy financial peace of mind while utilizing the Rx Development in-office medication dispensing program. A full suite of pharmaceutical A/R services is available so you don’t have to concern yourself with billing and collections. Rx Development advances the funds to purchase the medications and handles all insurance company reimbursements.
· Inventory Consulting–The Rx Development point-of-care dispensing program helps you maintain adequate inventory without incurring out-of-pocket costs.
· Comprehensive Training–Staff members will be completely trained in administering pharmaceuticals, accessing reports, processing patient requests, and more.
· Supplemental Income–Earn residuals as you provide a convenient service of dispensing pharmaceuticals to your patients without ever leaving your office.
· Industry Updates–Rx Development helps you stay abreast of current industry standards, as well as local, state, and federal regulations. Our knowledgeable advisors will keep your staff informed of the latest updates.”
I’m encouraging my friend to resist the temptation….