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Money Talks for Medicaid

March 10, 2015 / 15:48

This episode discusses Medicaid underpayment to doctors, the impact of the Affordable Care Act, and research findings on appointment availability for Medicaid patients.

Dr. John Smith, an economist, explains how Medicaid underpays doctors, making it difficult for patients to find care. He highlights a policy change under the Affordable Care Act that aimed to increase payments to primary care physicians.

The research involved calling medical practices to assess appointment availability for Medicaid patients compared to those with private insurance. The results showed an increase in appointment availability when doctors were paid more, with variations across states.

Dr. Smith emphasizes the importance of evidence-based policy, noting that adequate payment can lead to better access for Medicaid patients. He discusses the implications of the policy's temporary nature and its potential impact on future access to care.

The episode concludes with a discussion on ongoing research and the broader implications for healthcare access as Medicaid expands.

TLDR

Increased Medicaid payments led to more doctors accepting patients, improving access to care for Medicaid recipients.

Episode

15:48
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so the the problem i'm trying to research is that medicaid underpays doctors
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and when medicaid underpays doctors it's hard for patients who have medicaid insurance to
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get to get to find the doctors they need to get the care they need either the providers that typically give care to
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low-income patients are you know struggling with their their finances or they they go out to doctors in the
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community and a lot of them don't want to see the patients that where they don't get paid a lot of money
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so as part of the affordable care act they decided to pay medicaid doctors more they pay them the same amount that
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they pay medicaid patients that like doubled the amount they got paid for those doctors that saw patients for
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for primary care um so the question is that we are studying um is are there more doctors willing to
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see these medicaid patients when they're paid like twice as much as they were
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before and as an economist it seems like a pretty obvious answer to that question that you
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know you you get paid more you're more likely to see patients but this was a critical policy question
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because this was a policy that was in and put in place for just two years just to see how well it worked
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um and and the hope was is that doctors would engage the system at a time where medicaid was expanding they're more
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patients available so what we did was we called up these practices pretended we had field workers who
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pretended they were patients and they said uh can i get a new patient appointment and then we just mark down
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whether they got an appointment or not it was as simple as that half the time those scripts included
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patients who had medicaid insurance and have time for a control group they had private insurance
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and we did this exact same study in 2012 before this policy went to effect and then again this past
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spring in 2014 right in the middle of the um of this implementation of this policy
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and we uh um and we saw about an eight percentage point jump in the percentage of uh patients who were
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getting appointments and uh what was really uh compelling about our findings was there's great variation between
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states in terms of how much pay increase because medicaid pays different amounts
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it's a state-run program and so for some states the jump was double 100 jump in others maybe 30 or 40
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percent in those states where the jump was double um the increase in appointment rates
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were about 15 and in those states where as much lower is about five percent so you saw this
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um much greater increase when they got paid even more and then when we looked in the private
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insurance group as a control to say you know maybe there's something else going on during
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the same time we saw no change at all so with some pretty compelling results it really suggested this policy worked
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to increase appointment availability for primary care physicians when you pay them more
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money in the medicaid system well this is a very uh timely research for um for policymakers
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it was a two-year policy that ended january 2015. so policymakers were really interested in whether this
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policy worked so the key takeaway is the policy worked um and another key takeaway
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is that um there's a debate about why patients why doctors don't see medicaid
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patients and what this suggests is that if you pay them reasonably they show up to see
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these patients that it's really about payment and it's not the fact that there
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may not be enough providers i mean there's some areas where there may not be enough providers
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overall but the solution if if physicians aren't seeing medicaid patients is to pay them adequately um
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this seems to our results seem to show it makes a difference when we started this study
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uh there was a lot of hesitation because it was the very beginning of this policy implementation as i said as
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a two-year policy it was starting up in 2013 and that was when we were getting ready for our second round
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um of data collection uh implementation was delayed by six months they had real trouble uh figuring
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out exactly how to pass through payments there's like capitated managed care
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it's a lot easier when it's a fee for service than when it's capitated so
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struggles with implementation and a lot of people said well the the payment is temporary
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and so doctors aren't going to change their patterns for a temporary policy and the other thing that we had heard is
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that a lot of physicians weren't really calling up the medicaid office and saying you know gee i really want to be
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in this program so a lot of the anecdotal evidence was pointing towards there really no
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being no action so at the end of the summer it was like september we took our first peek at the results
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and we were all very surprised um to see such a large unambiguous effect so really the surprise was that we found
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something particularly when the rhetoric at the time was that this policy really
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wasn't having an impact well i think the most practical implication um you know i guess i think about it for
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for policy makers a lot of discussion at the state level states were trying to decide if they
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wanted to you know extend this uh pay bump uh policy and uh what they were saying at the time
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was you know there's no evidence yet so we're not going to make a decision
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because there's no evidence but now we have evidence so i think the real practical
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um implication for people who are kind of on the front lines of deciding whether doctors should be paid more for
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this specific policy is that um you know there's there's evidence and evidence-based policy is an
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important way to make policy and here this policy seems to work but you know i think there's a a broader point that
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that can be made that's important for physicians who run businesses um and you know i think physicians are not
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um immune to the same economic incentives as anyone else running a business um you know i think that there's
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uh when you're talking about health there might be some you know maybe moral obligation to see everyone
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who comes in your office but you're you can't have an office that that can turn the light on unless
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you can pay the bills and when you don't pay enough to to you know turn the lights on to to see
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the patients who you know the reimbursement is like 30 or 40 dollars for a half hour of your time it's really
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hard for some of these doctors to justify that um in their day they're just trying to
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um you know have have a business where where they bring in more money than they spend so i think what this suggests is
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from a practical end particularly as someone who's running a business is that you know physicians are running
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businesses too um and they shouldn't be you know set up against different rules
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than than you know other businesses you know there's a lot of debate in congress right now
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i wouldn't say a lot of debate in congress but um this policy uh of this what we call the medicaid
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rate bump was introduced um in the president's budget just a couple weeks ago in february he he proposed to
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congress that they extend the pay bump for another two years and make some modifications
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and there's a lot that's going on in washington to to make some decisions
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about various aspects of health policy it's all very very political but from a practical end this is about a
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six billion dollar a year policy to pay medicaid providers for primary care at the same rate
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as uh as they pay for medic or pay medicaid doctors the same amount as medicare and cost six billion dollars which is
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really a drop in the bucket when you think of the trillion dollar medicaid you know aca bill um and so i
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think the practical implications is you know we know that there are some effects
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important effects for patients getting access to providers having continuity of care and there this
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provides some evidence that um that there's a benefit of this policy and you know that
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now the politicians have to decide um if that that payment you know that expenses is
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worth is worth it for the gain that you get the focus here was on primary care physicians
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in medicaid and that's what the policy was aimed at but uh in medicaid it's it's really difficult
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not only uh in some areas not only to get um access to primary care providers but
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if you have a need for specialty care it could be even more difficult the payment
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gaps for specialty care can be even more severe so the implications extend beyond primary
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care you pay doctors more they're more likely to extend appointment availability
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to patients with that insurance type and i think it would extend beyond primary care providers specialty care providers
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and in particular areas where that access is a real issue you know it suggests that that paying
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specialty providers more money would help address that problem there was a front page article
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in the times right in december when this two-year policy ended it was always a temporary policy
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and so payment rates doubled two years ago but when they went back down in uh january 1st the headline was doctors get
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pay cuts of 50 you know will they still see patients so i mean at that time it was a 50
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reduction in in the amount they were getting paid within medicaid but that was certainly a
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headline at the time um so i think uh what you know i believe you know what goes up is
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probably going to come down so in response to the headline what will happen now that rates
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uh payment rates have gone back down i think we can expect that the gains that we saw in the
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last two years in terms of more doctors participating in medicaid will probably go back down
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and you know we'll go back in the field and measure it but i think for for the
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impact on medicaid patients i think it's an important finding you know there's a perception
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that there are fewer doctors that see medicaid patients maybe it's because doctors
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don't want to see medicaid patients and what this research suggests is that if you pay them reasonably
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um they'll show up to to see these patients and and it's more about the payment rates than it is about something
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about this patient population this is the first time we've been able to look at the relationship
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between payment rates and physician appointment availability or just you know access participation
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medicaid program using experimental methods so other people have looked um in data those states that have higher
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payment rates tend to have more doctors that participate versus low but it could be
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for a number of reasons that doctors set up their era that that medicaid sets up payment rates that
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way and it's just observational but to be able to go into the field pose as um
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as patients actually seeking appointments measure real behavior and kind of this
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audit methodology in this experimental way where we randomized the scripts to having medicaid or private insurance
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we've controlled for other aspects of of access really sets us apart really clean design
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that is able to that has this compelling narrative that you know you actually are
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measuring it by calling up doctor's offices i think just that that audit methodology is very compelling for um
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people on the street if you say i ran a regression analysis and my p-value was whatever somehow you've already lost
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half the crowd so it was both a clean experimental design i think very compelling easily to relate to finding
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this uh paper that i was telling you about is is part of a much larger project larger data collection
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effort which is about um tracking how um how available physicians are for seeing
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patients around the insurance expansions of the affordable care act so in the past
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couple of years it's been a large group of people 10 15 million who didn't
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have insurance before and now have insurance and will be demanding uh to see doctors in ways that they haven't
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before because they have insurance to cover those visits so the fear is that that there won't be enough doctors to to
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meet this increased demand for care so we did our baseline measures in 2012 before insurance expanded and in a
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number of different domains we're studying whether um uh whether there's sufficient capacity
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in the um in the work in the physician workforce to meet this increased demand are we going to see a squeeze on the
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medicaid side our private uh um for private insurance and one of the questions that
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people are curious about is whether those people have always had insurance you know the question is will their care
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remain the same but if their doctors are so busy because they're more patients
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maybe for them even their care won't be the same and we'll be able to measure
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that we'll have you know these baseline data to know that what things are like
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before we can monitor changes we're going to look at changes look at the access issues
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that exist in health insurance exchanges so there's a lot of questions we're
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still pursuing with this larger ongoing work we're hoping to go back in the field
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to collect the third round of data within the next six to 12 months you

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Episode Highlights

  • Policy Effectiveness Confirmed
    The study confirms that higher payments to Medicaid doctors increased appointment availability.
    “The key takeaway is the policy worked.”
    @ 03m 35s
    March 10, 2015
  • Impact of Medicaid Payment Rates
    Research shows that increasing Medicaid payments leads to more doctors willing to see patients.
    “If you pay them reasonably, they'll show up to see these patients.”
    @ 11m 46s
    March 10, 2015

Episode Quotes

  • The key takeaway is the policy worked.
    Money Talks for Medicaid
  • Doctors get pay cuts of 50%. Will they still see patients?
    Money Talks for Medicaid
  • If you pay them reasonably, they'll show up to see these patients.
    Money Talks for Medicaid

Key Moments

  • Medicaid Underpayment00:05
  • Policy Implementation00:36
  • Surprising Results05:20
  • Future Implications09:02

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