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The Latest Research, Commentary, And News From Health Affairs

Wednesday, August 4, 2021

Dear John,

New papers in our Considering Health Spending series discuss drug
utilization management and the influence of market consolidation on
public-to-private cost shifting.

Drug Utilization Management & Cost Shifting

In a new Considering Health Spending paper, Michael Chernew and
coauthors examine the effects of commercial price increases

from market consolidation on cost shifting from public to private
payers.

The authors find that operating margins for hospitals where Medicare
revenue accounted for more than 65 percent of total revenue in 2010 were
substantially lower than for hospitals with a Medicare share below 35
percent. Further, between 2010 and 2016, hospitals with a higher
Medicare share were more likely to close or be acquired.

In another article in the series, Scott Howell and coauthors investigate
drug pricing and spending, as well as the intensification of payers'
utilization management efforts
.

They find that combined costs shared among stakeholders totaled to at
least $93.3 billion per year. The authors deem drug utilization
management "one of the most counterproductive uses of resources in the
US health care system."

Our Considering Health Spending
series provides a focal
point for analysis and discussion about how much the nation spends on
health care, what we get for our money, and how we might change the
spending trajectory.

Today on Health Affairs Blog, Taleed El-Sabawi and coauthors argue that
the Drug Enforcement Agency's new rule on mobile methadone
units

doesn't address regulations that stigmatize and decrease its access.

Check out our COVID-19 Resource Center
for content
about all things related to the pandemic.

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On

**Thursday, August 12, 2021**, you are invited to join

****

**Health Affairs** Editor-in-Chief

**Alan Weil** when he welcomes

**Chiquita Brooks-LaSure**, the new administrator of the Centers for
Medicare and Medicaid Services (CMS) at the US Department of Health and
Human Services. At

****CMS, Brooks-LaSure oversees programs including Medicare, Medicaid,
the Children's Health Insurance Program (CHIP), and the HealthCare.gov
health insurance Marketplace.

There will be an opportunity for viewers to contribute questions before
and during the live session.

Date:     Thursday, August 12, 2021
Time:    1:00 p.m. - 2:00 p.m. (EDT)
Place:    Online details will be shared with registrants 24 hours in
advance of the event

Register Here

Your Daily Digest

Public Payment Rates For Hospitals And The Potential For
Consolidation-Induced Cost Shifting

Michael E. Chernew et al.

Quantifying The Economic Burden Of Drug Utilization Management On
Payers, Manufacturers, Physicians, And Patients

Scott Howell et al.

The New Mobile Methadone Rules And What They Mean For Treatment Access

Taleed El-Sabawi et al.

 

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mailto:[email protected]

About Health Affairs

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