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Money Talks for Medicaid

March 10, 2015 / 15:48

This episode discusses Medicaid underpayment to doctors, the impact of increased payments on appointment availability, and findings from a recent study on this issue.

The conversation centers around a study that investigated whether higher Medicaid payments led to more doctors accepting Medicaid patients. The study found that when Medicaid payments were doubled, there was an increase in appointment availability for primary care physicians.

Key discussions include the methodology of the study, where researchers posed as patients to measure appointment availability, and the significant variation in results across different states. The findings suggest that adequate payment is crucial for doctors to see Medicaid patients.

The implications of the study are relevant for policymakers, especially regarding the continuation of the Medicaid rate bump policy. The episode emphasizes the importance of evidence-based policy in healthcare.

Overall, the episode highlights the relationship between payment rates and physician participation in Medicaid, suggesting that financial incentives play a significant role in healthcare access.

TL;DR

Higher Medicaid payments increased doctor availability for patients, showing financial incentives impact healthcare access.

Episode

15:48
00:00:02
so the the problem i'm trying to
00:00:05
research is that medicaid underpays
00:00:07
doctors
00:00:09
and when medicaid underpays doctors it's
00:00:11
hard for
00:00:12
patients who have medicaid insurance to
00:00:15
get to get to find the doctors they need
00:00:18
to get the care they need either the
00:00:21
providers that typically give care to
00:00:22
low-income patients are you know
00:00:24
struggling with their their finances or
00:00:27
they they go out to doctors in the
00:00:28
community and a lot of them don't want
00:00:30
to see
00:00:32
the patients that
00:00:33
where they don't get paid a lot of money
00:00:35
so
00:00:36
as part of the affordable care act
00:00:40
they decided to pay medicaid doctors
00:00:43
more they pay them the same amount that
00:00:44
they pay
00:00:45
medicaid patients that like doubled the
00:00:47
amount they got paid
00:00:49
for those doctors that saw patients for
00:00:51
for primary care
00:00:53
um
00:00:54
so the question is that we are studying
00:00:58
um is are there more doctors willing to
00:01:00
see these medicaid patients when they're
00:01:02
paid like twice as much as they were
00:01:03
before and as an economist it seems like
00:01:05
a pretty
00:01:06
obvious answer to that question that you
00:01:08
know you you get paid more you're more
00:01:10
likely to see patients
00:01:13
but this was a critical policy question
00:01:16
because this was a policy that was in
00:01:18
and put in place for just two years just
00:01:20
to see how well it worked
00:01:22
um
00:01:23
and and the hope was is that doctors
00:01:25
would engage the system at a time where
00:01:27
medicaid was expanding they're more
00:01:29
patients available
00:01:31
so what we did was
00:01:33
we called up these practices
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pretended we had field workers who
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pretended they were patients
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and they said uh can i get a new patient
00:01:41
appointment and then we just mark down
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whether they got an appointment or not
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it was as simple as that half the time
00:01:46
those scripts included
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patients who had medicaid insurance and
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have time for a control group they had
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private insurance
00:01:54
and we did this exact same study
00:01:56
in 2012 before this policy went to
00:01:59
effect and then again this past
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spring in 2014 right in the middle of
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the um
00:02:05
of this implementation of this policy
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and we uh
00:02:09
um
00:02:11
and we saw
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about an eight percentage point jump in
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the percentage of uh patients who were
00:02:17
getting appointments and uh what was
00:02:19
really uh compelling about our findings
00:02:21
was there's great variation between
00:02:23
states in terms of how much pay increase
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because medicaid pays different amounts
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it's a state-run program
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and
00:02:31
so for some states the jump was
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double 100 jump in others maybe 30 or 40
00:02:36
percent in those states where the jump
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was double
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um the increase in appointment rates
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were about 15
00:02:42
and in those states where as much lower
00:02:44
is about five percent so you saw this
00:02:46
um
00:02:47
much greater increase when they got paid
00:02:49
even more
00:02:51
and then when we looked in the private
00:02:52
insurance group
00:02:54
as a control to say you know maybe
00:02:56
there's something else going on during
00:02:58
the same time we saw no change at all so
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with some pretty compelling results it
00:03:02
really suggested this policy worked
00:03:04
to increase
00:03:06
appointment availability for primary
00:03:08
care physicians when you pay them more
00:03:10
money in the medicaid system
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well this is a very uh
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timely research for
00:03:20
um for policymakers
00:03:22
it was a two-year
00:03:25
policy that ended january 2015. so
00:03:28
policymakers
00:03:30
were really interested in whether this
00:03:32
policy worked so the key takeaway is the
00:03:35
policy worked
00:03:37
um
00:03:38
and another key takeaway
00:03:40
is that um
00:03:41
there's a debate about why
00:03:43
patients why doctors don't see medicaid
00:03:46
patients
00:03:47
and what this suggests is that if you
00:03:48
pay them reasonably they show up to see
00:03:51
these patients that it's really about
00:03:53
payment and it's not the fact that there
00:03:56
may not be enough
00:03:57
providers i mean there's some areas
00:03:58
where there may not be enough providers
00:04:00
overall but the solution if if
00:04:02
physicians aren't seeing medicaid
00:04:04
patients is to pay them adequately um
00:04:06
this seems to our results seem to show
00:04:08
it makes a difference
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when we started this study
00:04:16
uh there was a lot of hesitation
00:04:19
because it was the very beginning of
00:04:21
this policy implementation as i said as
00:04:23
a two-year policy it was starting up in
00:04:25
2013 and that was when we were getting
00:04:28
ready for our second round
00:04:30
um of data collection
00:04:32
uh implementation was delayed by six
00:04:35
months they had real trouble uh figuring
00:04:38
out exactly how to pass through payments
00:04:40
there's like capitated managed care
00:04:43
it's a lot easier when it's a fee for
00:04:44
service than when it's capitated so
00:04:47
struggles with implementation and a lot
00:04:49
of people said well the the payment is
00:04:51
temporary
00:04:53
and so doctors aren't going to change
00:04:55
their patterns for a temporary policy
00:04:57
and the other thing that we had heard is
00:04:59
that a lot of
00:05:01
physicians
00:05:02
weren't really
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calling up the medicaid office and
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saying you know gee i really want to be
00:05:06
in this program so a lot of the
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anecdotal evidence
00:05:09
was pointing towards there really no
00:05:10
being no action
00:05:12
so at the end of the summer it was like
00:05:13
september we
00:05:15
took our first peek at the results
00:05:17
and we were all very surprised um to see
00:05:20
such a large unambiguous effect so
00:05:24
really the surprise was that we found
00:05:25
something particularly when the rhetoric
00:05:27
at the time was that this policy really
00:05:30
wasn't having an impact
00:05:35
well i think the most
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practical implication
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um
00:05:40
you know i guess i think about it for
00:05:42
for policy makers
00:05:45
a lot of discussion at the state level
00:05:48
states were trying to decide if they
00:05:50
wanted to you know extend this
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uh pay bump
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uh policy
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and uh what they were saying at the time
00:05:58
was you know there's no evidence yet so
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we're not going to make a decision
00:06:01
because there's no evidence but now we
00:06:03
have evidence so i think the real
00:06:05
practical
00:06:06
um implication for people who are kind
00:06:08
of on the front lines of deciding
00:06:10
whether doctors should be paid more for
00:06:12
this specific policy
00:06:14
is that um you know there's there's
00:06:16
evidence and evidence-based policy is an
00:06:20
important way to make policy and here
00:06:21
this policy seems to work but you know i
00:06:24
think there's a a broader point that
00:06:26
that can be made that's important
00:06:28
for physicians who run businesses
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um
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and you know i think physicians are not
00:06:35
um
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immune to the same economic
00:06:39
incentives
00:06:40
as anyone else running a business
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um
00:06:44
you know i think that there's
00:06:45
uh when you're talking about health
00:06:47
there might be some
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you know
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maybe moral obligation to see everyone
00:06:53
who comes in your office but you're you
00:06:55
can't have an office
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that that can turn the light on unless
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you can pay the bills and
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when you don't pay enough to
00:07:05
to you know turn the lights on to to see
00:07:07
the patients who you know the
00:07:08
reimbursement is like 30 or 40 dollars
00:07:11
for a half hour of your time it's really
00:07:13
hard for some of these doctors to
00:07:15
justify that um in their day they're
00:07:17
just trying to
00:07:18
um you know have have a business where
00:07:21
where they bring in more money than they
00:07:22
spend so i think what this suggests is
00:07:25
from a practical end particularly as
00:07:27
someone who's running a business
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is that you know physicians are running
00:07:31
businesses too um and they shouldn't be
00:07:33
you know set up against different rules
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than
00:07:35
than you know other businesses
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you know there's a lot of debate in
00:07:43
congress right now
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i wouldn't say a lot of debate in
00:07:45
congress but um this policy
00:07:48
uh of this what we call the medicaid
00:07:50
rate bump was introduced um in the
00:07:53
president's budget just a couple weeks
00:07:55
ago in february he he proposed to
00:07:57
congress
00:07:59
that they extend the pay bump for
00:08:00
another two years and make some
00:08:02
modifications
00:08:05
and there's a lot that's going on in
00:08:07
washington to to make some decisions
00:08:10
about
00:08:11
various aspects of health policy it's
00:08:13
all very very political
00:08:14
but from a practical end this is about a
00:08:17
six
00:08:18
billion dollar a year
00:08:20
policy to pay medicaid providers for
00:08:22
primary care at the same rate
00:08:24
as
00:08:26
uh
00:08:27
as they pay for medic or pay medicaid
00:08:30
doctors the same amount as medicare
00:08:34
and cost six billion dollars which is
00:08:36
really a drop in the bucket when you
00:08:38
think of the trillion dollar
00:08:41
medicaid you know aca bill um and so i
00:08:44
think the practical implications is you
00:08:46
know we know that there are some effects
00:08:47
important effects for patients
00:08:49
getting access to providers having
00:08:51
continuity of care and there this
00:08:54
provides some evidence
00:08:55
that um
00:08:57
that there's a benefit of this policy
00:08:58
and you know that
00:09:00
now the politicians have to decide
00:09:02
um if that
00:09:04
that payment you know that expenses is
00:09:06
worth is worth it for the gain that you
00:09:08
get
00:09:13
the focus here was on primary care
00:09:16
physicians
00:09:18
in medicaid and that's what the policy
00:09:21
was aimed at
00:09:22
but uh
00:09:24
in medicaid it's it's really difficult
00:09:26
not only
00:09:27
uh in some areas not only to get
00:09:30
um access to primary care providers but
00:09:32
if you have a need for specialty care it
00:09:34
could be even more difficult the payment
00:09:36
gaps for specialty care can be even
00:09:39
more severe
00:09:40
so
00:09:43
the implications extend beyond primary
00:09:45
care you pay doctors more
00:09:47
they're more likely to extend
00:09:51
appointment availability
00:09:53
to patients with that insurance type and
00:09:55
i think it would extend beyond primary
00:09:56
care providers specialty care providers
00:09:59
and in particular areas where that
00:10:01
access is a real issue
00:10:04
you know it suggests that that paying
00:10:06
specialty
00:10:08
providers more money would help address
00:10:10
that problem
00:10:15
there was a front page article
00:10:17
in the
00:10:18
times right in december
00:10:21
when this two-year policy ended it was
00:10:23
always a temporary policy
00:10:25
and so payment rates doubled two years
00:10:28
ago
00:10:29
but
00:10:30
when they went back down in uh
00:10:33
january 1st the headline was doctors get
00:10:36
pay cuts of 50
00:10:39
you know will they still see patients so
00:10:41
i mean at that time it was a 50
00:10:43
reduction in in the amount they were
00:10:45
getting paid
00:10:47
within medicaid but that was certainly a
00:10:49
headline at the time
00:10:51
um so i think
00:10:53
uh
00:10:54
what
00:10:55
you know
00:10:57
i believe you know what goes up is
00:10:59
probably going to come down so
00:11:02
in response to the headline what will
00:11:03
happen now that rates
00:11:05
uh payment rates
00:11:07
have gone back down i think we can
00:11:10
expect that the gains that we saw in the
00:11:12
last two years in terms of more doctors
00:11:14
participating
00:11:16
in medicaid will probably go back down
00:11:19
and
00:11:20
you know we'll go back in the field and
00:11:22
measure it but i think for for the
00:11:23
impact on
00:11:24
medicaid patients i think it's an
00:11:26
important finding
00:11:31
you know there's a perception
00:11:33
that
00:11:34
there are fewer doctors that see
00:11:35
medicaid patients maybe it's because
00:11:37
doctors
00:11:38
don't want to see medicaid patients
00:11:41
and what this research suggests
00:11:43
is that if you pay them reasonably
00:11:46
um they'll show up to to see these
00:11:48
patients and and it's more about the
00:11:50
payment rates than it is about something
00:11:51
about this patient population
00:11:57
this is the first time we've
00:12:00
been able to look at the relationship
00:12:02
between payment rates
00:12:04
and
00:12:06
physician appointment availability or
00:12:08
just you know access participation
00:12:10
medicaid program using experimental
00:12:12
methods so other people have looked um
00:12:15
in data those states that have higher
00:12:17
payment rates
00:12:18
tend to have more doctors that
00:12:20
participate versus low but it could be
00:12:21
for a number of reasons that doctors set
00:12:23
up their era that
00:12:25
that medicaid sets up payment rates that
00:12:27
way and it's just observational
00:12:29
but to be able to
00:12:31
go into the field
00:12:32
pose as um
00:12:35
as patients actually seeking
00:12:37
appointments
00:12:38
measure real behavior and kind of this
00:12:41
audit methodology
00:12:44
in this experimental way where we
00:12:46
randomized the
00:12:47
scripts
00:12:49
to having medicaid or private insurance
00:12:51
we've controlled for other aspects of of
00:12:53
access
00:12:55
really sets us apart
00:12:58
really clean design
00:13:00
that
00:13:02
is able to
00:13:03
that has this compelling
00:13:05
narrative that you know you actually are
00:13:07
measuring it by calling up doctor's
00:13:09
offices i think just that that audit
00:13:11
methodology is very compelling for um
00:13:14
people on the street if you say i ran a
00:13:16
regression analysis and my p-value was
00:13:18
whatever somehow you've already lost
00:13:20
half the crowd so
00:13:22
it was both a clean experimental design
00:13:24
i think very
00:13:25
compelling easily to relate to finding
00:13:32
this uh paper that i was telling you
00:13:35
about is is part of a much
00:13:37
larger project larger data collection
00:13:39
effort
00:13:40
which is about um
00:13:42
tracking
00:13:43
how um
00:13:45
how available physicians are for seeing
00:13:48
patients
00:13:49
around
00:13:50
the insurance expansions of the
00:13:52
affordable care act so in the past
00:13:54
couple of years it's been a large
00:13:58
group of people 10 15 million who didn't
00:14:01
have insurance before and now have
00:14:02
insurance and will be demanding uh to
00:14:04
see doctors in ways that they haven't
00:14:06
before because they have insurance to
00:14:08
cover those visits so the fear is that
00:14:12
that there won't be enough doctors to to
00:14:14
meet this increased demand for care
00:14:18
so we did our baseline measures in 2012
00:14:20
before insurance expanded and in a
00:14:22
number of different domains we're
00:14:24
studying whether um
00:14:27
uh
00:14:28
whether there's sufficient capacity
00:14:31
in the um in the work in the physician
00:14:33
workforce to meet this increased demand
00:14:35
are we going to see a squeeze on the
00:14:37
medicaid side
00:14:38
our private uh
00:14:40
um for private insurance and one of the
00:14:42
questions that
00:14:44
people are curious about
00:14:47
is
00:14:47
whether those people have always had
00:14:49
insurance
00:14:50
you know the question is will their care
00:14:52
remain the same but if their doctors are
00:14:54
so busy because they're more patients
00:14:55
maybe for them even their care won't be
00:14:57
the same and we'll be able to measure
00:14:59
that we'll have you know these baseline
00:15:01
data to know that what things are like
00:15:03
before we can monitor changes we're
00:15:05
going to look at changes look at the
00:15:07
access issues
00:15:08
that exist in health insurance exchanges
00:15:11
so there's a lot of questions we're
00:15:12
still pursuing with this larger
00:15:15
ongoing work we're hoping to go back in
00:15:18
the field
00:15:19
to collect the third round of data
00:15:21
within the next six to 12 months
00:15:47
you

Episode Highlights

  • Medicaid Payment Policy Success
    The research showed that increasing Medicaid payments led to a significant rise in doctor appointments for Medicaid patients.
    “The key takeaway is the policy worked.”
    @ 03m 35s
    March 10, 2015
  • Surprising Results
    Initial skepticism about the policy's impact was overturned by clear evidence of its effectiveness.
    “We were all very surprised to see such a large unambiguous effect.”
    @ 05m 20s
    March 10, 2015

Episode Quotes

  • The key takeaway is the policy worked.
    Money Talks for Medicaid
  • We were all very surprised to see such a large unambiguous effect.
    Money Talks for Medicaid
  • If you pay them reasonably, they'll show up to see these patients.
    Money Talks for Medicaid

Key Moments

  • Policy Impact03:35
  • Surprising Findings05:20
  • Doctor Participation11:46

Words per Minute Over Time

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