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Senate investigation finds MA insurers used tech to deny claims

October 17, 2024
Reporter, D.C. Diagnosis Writer

Hello, and happy Thursday from Boston at the STAT Summit! For those of you following along virtually, my co-author Sarah Owermohle is interviewing Atul Gawande, the assistant administrator of global health at USAID, this afternoon, and Bob Herman is interviewing former CMS administrator Don Berwick about the future of Medicare. Send news tips and your biggest outstanding election questions to rachel.cohrs@statnews.com.

CONGRESS

Medicare Advantage insurers ramped up use of technology to deny claims

An investigation by the U.S. Senate Permanent Subcommittee on Investigations found that Medicare Advantage insurers denied more claims after they adopted predictive technologies designed to automate coverage decisions, STAT's Bob Herman and Casey Ross report

The report cites STAT's series last year that investigated the use of algorithms and artificial intelligence within Medicare Advantage plans.

The Senate investigation, released this morning, shows that denials were concentrated among seniors who were requesting care in nursing homes, inpatient rehab, and long-term hospitals. It shows that UnitedHealth, CVS, and Humana, the three largest MA insurers, all used AI and algorithmic tools to aid in issuing denials. UnitedHealth's rate of denials for post-acute services jumped 172% between 2019 and 2022, topping out at 22.7%, according to the report.

Bob and Casey summarized the full findings, including an internal presentation from CVS.


election 2024

Joe Grogan on the GOP's strategy for fights over drug pricing and the ACA

Former Trump White House official Joe Grogan said at the STAT Summit that while Republicans don't have plans to repeal the entire Affordable Care Act, they should still grapple with tough issues on drug pricing and the ACA's premium subsidies. 

He argued that the Inflation Reduction Act's restructuring of Medicare Part D has destabilized the program to the point that it's in a "death spiral," and said that lawmakers should consider changes to the law, or the Part D program more broadly, if the current trends continue. 

Grogan, who maintains that the GOP should not extend additional ACA premium subsidies passed under the Biden administration, dismissed concerns that many of the people who benefit from the subsidies live in Republican-led states. He said that there is an "intolerable" amount of fraud in the program. 

Read more, including his take on what could be Republicans' chance to reform public health agencies. 


Q&A

Califf on obesity drugs

In an interview with STAT, FDA Commissioner Robert Califf seemed torn over what he thought of new anti-obesity medications as a long-term solution to the United States' obesity problem. 

He called the evidence for the drugs "overwhelmingly good," and said the potential for impact in other disease areas is "profound." At the same time, he emphasized that Americans aren't paying attention to the root causes of disease.

"I have this recurrent thought that my great-grandkids will read that there was once a country called the U.S.A. where we used overwhelming manipulation of food and advertising to create an enormously obese population. And our solution to it was to invent a class of drugs that cost $20,000 a year to try to counteract it," he said. "And they would say, 'What kind of country is that? Why didn't you just eat good food to start with and not end up like that?'"

Read STAT cardiovascular health reporter Liz Cooney's full interview with Califf on why Americans' cardiovascular health is so bad, and what needs to be done to improve it. 



business

Pharma executives opine on the election

STAT's Matthew Herper picked Bristol Myers Squibb CEO Chris Boerner's brain at the STAT Summit on all things related to the Inflation Reduction Act, and the upcoming election. Some highlights from their conversation:

  • Boerner said the worst part of his first year as CEO was the "unexpected opportunity" to testify before Sen. Bernie Sanders' HELP Committee. 
  • Boerner said BMS would be "front and center" in pushing for pharmaceutical companies to be able to offer patient assistance in the Medicare program. 
  • On the first round of Medicare drug price negotiations, Boerner said that he was "proud of how the team engaged with CMS," and that Eliquis was actually the kind of drug that the system should be incentivizing: relatively low-cost, widely taken, and could help prevent hospitalizations in the future. 
  • On the election, Boerner said that BMS is a global company that operates on both sides of the aisle, and he stubbornly stuck to those talking points even when prodded about which presidential candidate would be better for his company. "Our focus as a company doesn't really change depending upon who's in the White House or who controls Congress," Boerner said. 

Executives from Bayer and Sandoz also recently contributed First Opinion pieces outlining their priorities for a post-election world. Bayer is calling for both parties to "resist" price controls, and Sandoz warns against protectionism.


investigations

Inside UnitedHealth's strategy to pressure physicians

In the latest installment in STAT's investigation into UnitedHealth Group's business practices, the crew behind Health Care's Colossus examines how managers at the company pushed doctors to see more patients, and bring in more money. 

Doctors who scheduled more appointments were offered additional bonuses, and the company started a program to offer patients gift cards if they completed a checkup. UnitedHealth shared with doctors in the practice a dashboard comparing the percentage of chronic diseases they found among their Medicare Advantage patients to other practices within the company.

The full article is based on internal documents from a UnitedHealth practice, and is not one to be missed


policy

STAT's surprise billing Wunderkind

There are many truly extraordinary young professionals who won STAT Wunderkind awards this year. Erin Duffy is one of them.

Duffy is a leading expert on surprise medical bills and debt at the USC Schaeffer Center for Health Policy & Economics, among other accomplishments. She recently co-published a secret shopper study that highlights the difficulties people face in getting payment plan estimates for planned procedures. 

Her work on big policy failures started with her job as a case manager at Catholic Charities in Boston for refugees. She was struck by how often they had to deal with the same preventable problems – lost heat, eviction, disenrollment from public programs, bedbugs. (Duffy often helped with laundry.)

So she returned to school to study health care policy, eventually focusing her Ph.D. work on medical bills. 


More around STAT
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What we're reading

  • Ahead of public meeting, FDA signals flexibility in evaluating smoking cessation treatments, STAT
  • Trump raises eyebrows by proclaiming himself the 'Father of I.V.F.', The New York Times
  • Is it time to freak out about bird flu?, STAT
  • Walz unveils Harris' plan for rural voters as campaign looks to cut into Trump's edge, Associated Press
  • First Opinion: Mark Cuban has no doubt he can disrupt health care, STAT

Thanks for reading! More next week,


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