bd att 41 oregon public employee benefit board vision 2007 executive briefing
TRANSCRIPT
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Oregon Public Employee Benefit BoardVision 2007Executive Briefing
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Is the state getting good value for its health care investment?
The PEBB Program, 2005 40,000 employees 110,000 covered lives Two medical care vendors:
Kaiser Permanente in Portland, Salem with 15,000 lives
Regence Blue Cross statewide with 90,000 lives
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Is the state getting good value?
Value = Quality/Cost
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Is the state getting good value: quality? Estimated 2,000 preventable hospital deaths
in Oregon Estimated 6,000 preventable outpatient
deaths in Oregon Performance for chronic disease at about 55%
of recommended care
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Is the state getting good value: cost? Annual expenses 2004 $377M; 2005
(projected) $435M Average annual increase 1999-2005: 10.5%
vs. average annual wage increase ss%; vs. non-medical inflation uu%
Proportion of total employee compensation now going to health benefits: vv%
Proportion of general fund: xx? Proportion in 2010: zz?
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National premiums compared with other national indicators
Data from Kaiser-HRET surveys, KPMG surveys. Premium for family of four.
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1998
2002
$386
$470
$586
2003
2000/2001
2004$706
$641
State of Oregon average monthly employer contribution
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PEBB Vision for 2007 – why now?
Current contracting arrangements not clearly containing costs or improving health - and trends are going in the wrong direction.
PEBB is stepping up to address problems.
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PEBB Vision for 2007 – why us?
Traditional PEBB role - negotiate with insurance plans for rates, services.
Insurance plans have failed to address quality or cost trends.
PEBB must make changes in plan design, define alternative service delivery model, and strengthen partnership with members.
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Others in the same boat...
CalPERS Mass. Group Purchasing Alliance Wisconsin Alliance Florida Healthcare Purchasing
Coalition Bridges to Excellence employers Leapfrog Group employers King County purchasing coalition
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What they’re doing... Strong economic incentives (“pay for
performance”) for both doctors and patients Evaluate and reward results, not volume of
services Demand (and incentivize) redesign of
health care delivery system Demand transparency of outcomes and cost Support patient engagement Form alliances with like-minded
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Who controls cost and quality of members’ health care?
Members Insurers? Hospitals and clinics? Doctors? Patients? Unions? State agencies?
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What’s the appropriate role for PEBB?
Be crystal clear about what we want Use purchasing tools to encourage
positive private sector response Educate all stakeholders about need for
change and opportunity for improvement Hold plans and providers accountable for
performance Help members succeed
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Developing the PEBB Vision
Long-term view: where should we be in 2007?
Review of literature, best practices
Extensive stakeholder input
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PEBB Vision for 2007
PEBB envisions a new state of health for its members statewide.
Key components of the PEBB program will include:
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Vision component
An innovative delivery system in communities statewide that provides evidence-based medicine to maximize health and utilize dollars wisely.
Delivery system: A community’s doctors, providers, hospitals, clinics, labs, insurance carriers, etc.
Evidence-based medicine: Medical ‘best practices’ determined by ongoing review of quality research results
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Vision component
A focus on improving quality and outcomes not just providing healthcare.
Providing healthcare – paying for services, not outcomes
Quality – not necessarily the most expensive; instead, the right care at the right time
Outcomes – not how many services provided but whether treatments achieve the desired results
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Vision component
The promotion of consumer education and informed choices.
Consumers know their health risks, clinical status, treatment options, expected outcomes and supporting evidence
Providers freely share knowledge with consumers Consumers have support in reducing health risks and
navigating the healthcare system
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Vision component
Appropriate market and consumer incentives that encourage the right care at the right time.
Consumer incentives to choose care based on the evidence
Market incentives for providers to align their practice with the evidence
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Vision component
System-wide transparency through explicit, available and understandable reports about costs, outcomes and other useful data
All stakeholders have information about health plans, hospitals and clinical practices to make decisions
Information includes safety, patient satisfaction, evidence-based practices, and quality & performance indicators.
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Vision component
Benefits affordable to the state and employees.
Recognize the impact of health care costs on total compensation provided to employees
Recognize the impact of increasing costs on state’s ability to fund services
Ensure that members use appropriate services and share commitment to control escalating costs
Recognize shared responsibility to protect against high burden falling on some.
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Vision for 2007 PEBB’s Vision for 2007 provides a
roadmap to addressing healthcare cost and quality issues
What are our goals? Stabilize cost trend
Improve health status of workforce
Assure value for state’s health care dollars
How do we get there?
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Overall approach Define a vision Translate vision into uniform, concrete criteria for
purchasing services and evaluating performance Implement some core strategies statewide Recognize that different models to achieve
criteria may be required in different parts of state Work closely with potential providers to launch
significant pilot projects Gradually extend pilots where appropriate
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Illustration ... We want community based, multidisciplinary chronic care for all
members with diabetes We establish contract criteria, including delivering key services,
achieving good blood sugar control and reporting it, achieving good ability to function day-to-day and high patient satisfaction
In an urban area, the criteria might be met by a large group practice, with group visits, email reminders, use of diabetes registry
In small community, the criteria might be met by solo practice physician with help from disease management company
In mid-size community, the criteria might be met by an IPA that hires care managers to support all area physicians and programs common protocols into a standard electronic medical record system
PEBB can verify quality of care and outcomes in all these settings
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Illustration ...
Add library of illustrations for use by speakers in different situations
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What’s been done so far to move towards the Vision?
Analysis of evidence-based medication list Experts compare effectiveness of all
drugs in a class Results determine if any work better
than others If all work equally well, low-cost
version is preferred, with lowest co-payment or co-insurance.
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Illustration: Statins to lower cholesterol
Studies show all are equally effective Wide, unexplained range of costs*
Zocor $120; Pravachol $113; Lipitor $89; Lovastatin $69; Lescol $63
Consider effectiveness and cost to determine lowest co-payment or co-insurance
*30-day supply as reported 4/21/04 by AARP
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What’s been done so far to move towards the Vision?
Offer chronic disease management program for asthma, diabetes, heart disease Engage member in managing illness Avoid risks of serious complications Manage complex medications Coordinate care – right services at
the right time
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What’s been done so far to move towards the Vision? Back pain decision-support
program 2003 PEBB claims for muscle-skeleton
problems = more than $20 million Oregon has more discretionary back surgery
than any other state Evidence does not show that surgery is
always the best treatment Decision-support tools will help members
choose treatment best suited to their needs
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What’s been done so far to move towards the Vision? Statewide Wellness Program
On-site health screenings around the state to assess health risks (blood pressure, cholesterol, glucose, body mass)
Online wellness tools to assess health status and risks
Outreach with education and information Healthcare system navigation with
individualized referral and follow-up Pilot walking program Pilot tobacco cessation program (2005)
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What’s been done so far to move towards the Vision? Healthcare flexible spending
account (FSA)—beginning 2005 Pre-tax deposits through payroll
deduction Reimburses many out-of-pocket costs
Co-payments & co-insurance Vision care costs above allowance Dental costs above plan limits OTC drugs
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What do stakeholders say about PEBB’s Vision?
Providers, carriers, policy makers, employee representatives A “real” opportunity, ambitious, doable Needs long-term commitment Collaborate, create partnerships Requires cultural changes Communicate, communicate,
communicate
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What will it take?
Strong executive leadership State speaks with one voice State allies with partners: labor,
advocates, purchasers Willing, creative private sector
partners Willing, engaged members
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What will it take?
Consistent state strategy Steady attention to monitoring and
refining tactics
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How you can help...
Depends on audience...