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Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD, MPP Institute Director Alice Hamilton Professor of Medicine Beyond the ACA: Health Policy & Sustainable Health Spending Altarum Center for Sustainable Health Spending July 18, 2017

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Page 1: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Medicaid Expansion & the ACA: The View from Michigan

John Z. Ayanian, MD, MPPInstitute Director

Alice Hamilton Professor of Medicine

Beyond the ACA: Health Policy & Sustainable Health SpendingAltarum Center for Sustainable Health Spending

July 18, 2017

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Jim Waterhouse’s Story *

• Diagnoses: diabetes, hypertension, heart disease, sleep apnea

• After becoming uninsured in his early 60’s:

– Reduced visits to primary physician and cardiologist

– Reduced glucose monitoring

– Ignored worsening dyspnea

– Discontinued CPAP for sleep apnea

– Deferred colonoscopy for new anemia

• Complications:

– Delayed visit to primary MD led to $46,000 admission

* Hayes et al. Too Sick to Work, Too Soon for Medicare Commonwealth Fund 2007

Page 3: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

“I tried to put off medical care until I became eligible

for Medicare, which complicated my condition.”

-- Jim Waterhouse, after gaining Medicare coverage

Page 4: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Adjusted Mortality Among Middle-Aged Adults

Health & Retirement Study

McWilliams, Zaslavsky, Meara & Ayanian, Health Affairs 2004

12.5

4.5

18.8

5.4

0

5

10

15

20

8-Year Mortality

(%)

Insured

Uninsured

P=0.02

P=0.35

Adults with diabetes, Other Adults HTN or heart disease

Page 5: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

The New Yorker

The Diagnosis of Exclusion…

“Unfortunately you have what we call‘no insurance’.”

Page 6: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Changes in Access to Care & Health Status

After Massachusetts Health Reform, 2006-2011:

A Quasi-Experimental Study

Van der Wees, Zaslavsky & Ayanian, Milbank Quarterly 2013

Key Findings (vs. rest of New England):

Cost as a barrier to care

Access to doctors, colonoscopies, Pap & cholesterol tests

-- especially for those <300% of poverty level

Health status beginning in 2010

Page 7: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Changes in Mortality After Massachusetts Health Reform:

A Quasi-Experimental Study

Sommers, Long & Baicker. Ann Intern Med 2014

Key Findings (vs. similar US counties):

2.4% in adjusted all-cause mortality for adults 20-64 (P=0.003)

4.5% in adjusted mortality for non-elderly adults with health care-amenable conditions, including cardiovascular disease (P<0.001)

No change in mortality for elderly adults

Page 8: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Affordable Care Act signing, March 2010

Page 9: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,
Page 10: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Healthy Michigan Plan signing, September 2013

Page 11: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

• One of few Republican-led states to expand Medicaid (w/ AZ, ND, OH, IN)

• Market-oriented reforms: cost-sharing, financial incentives

• Benefits to Michigan:– 650,000 low-income adults

have access to care

– Increased federal $ to pay providers ($3.5B in 2016)

– Hospitals provide less uncompensated care

• Model for bipartisan compromise

Page 12: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,
Page 13: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Impact of Medicaid Expansion on Michigan Hospitals

• Uninsured discharges:

4 percentage points

• Medicaid discharges:

6 percentage points

• No change in total discharges

Davis, Gebremariam & Ayanian JAMA 2016

Page 14: Medicaid Expansion & the ACA: The View from …altarum.org/sites/default/files/uploaded-related-files/14...Medicaid Expansion & the ACA: The View from Michigan John Z. Ayanian, MD,

Changes in Uncompensated Carein Michigan Hospitals, 2013-2015

• Uncompensated care costs by almost half from 5.2% of costs in FY13 to 2.9% in FY15

• For average hospital, annual uncompensated care expenses from $7.2 million to $3.8 million

• Large Detroit hospital from $35.8M to $19.5M

Buchmueller & Levy, December 2016 report to Michigan Dept of Health & Human Services

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February 2, 2017

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Key Findings for Michigan Economy with Medicaid Expansion

• Employment with federal Medicaid expansion

spending peaked at ~39,000 jobs in 2016 & projected

to support ~30,000 jobs through 2021

• Personal income associated with new employment

in Michigan: ~$2.2-2.4 billion annually

• Economic activity projected to yield $145-$153

million annually in new state tax revenue

Ayanian et al. N Engl J Med 2017

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Will Congress repeal, replace

or repair the ACA?

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Thank You

On the web: ihpi.umich.edu

On Twitter: @UM_IHPI

@jzayanian