Monthly Archives: December 2013

Acupuncture & Insurance, Part 2 — Affordability

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Many of us see it as a no-brainer. We want acupuncture to be affordable, insurance/Medicare makes it affordable, how could anyone be against that? This reasoning relies upon a superficial understanding of health care costs and affordability.

Consider:

  • Affordability must take into account premiums as well as co-pays and out-of-pocket expenses.
  • Both cost to the individual and sustainability of the system are part of affordability.
  • All medical costs are ultimately borne by the public.
  • When coverage is provided for the very sick, the premiums of many healthy people contribute to their medical expenses.
  • If health care spending exceeds what the insurance companies have planned for, premiums will go up and reimbursements for providers will go down.
  • Controlling health care spending depends upon providers accepting reduced payment for their services and upon a bureaucracy determining what services are appropriate.
  • The wealthiest in our system typically have the best insurance coverage.

A respected colleague said I give the impression that Community Acupuncture is the only way for people to get affordable acupuncture and that everyone should treat that way. My bad — I don’t believe that. I do believe it is a good way — it accepts the reality that acupuncture isn’t really more affordable if it doesn’t cost the system less. It provides affordable treatment to everyone, not just to those with the best insurance coverage. And it keeps big business out of treatment decisions.

I continue to treat one client at a time, in a private room. I have a generous sliding scale, available to all, to help a wide range of people afford acupuncture.  Some practitioners treat in private rooms and charge one low price to all patients. I have colleagues who reserve a certain percentage of their appointments for those who need steeply discounted services, and I have others who volunteer in free or low-cost clinics. These are all ways to make acupuncture affordable.

Disguising the cost of acupuncture by hiding the expense in co-pays and premiums (many so expensive that they are subsidized by taxpayers) doesn’t make it more affordable. Changing the way you treat so that your reimbursements match what you think you deserve doesn’t make acupuncture more affordable (or support arguments for cost effectiveness).

CA is not the only way to make acupuncture affordable and I certainly don’t think it is the only style of treatment that should be available.  But insurance increases the big picture affordability of acupuncture only to the extent that it limits reimbursement rates and access.  Insurance is not a magic wand, and those practitioners who believe it is are in for a rude surprise.

For more, check out this post, and these statistics about the increases in health care spending in the US.

Acupuncture & Insurance, Part 1 – Universal Impact

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“It’s fine if you don’t want to take insurance/participate in Medicare, but don’t stand in my way. If you don’t want to participate you can make that choice.” — that’s the sort of thing practitioners pushing for insurance coverage of acupuncture lob at those who express reservations.

Although I personally believe third-party payer influence will be bad for our profession and our medicine, my greater concern is that most of those pushing for these changes have a limited understanding of how we will all be affected. If the profession as a whole understood what’s involved and still thought it was a good idea, I’d get off my soapbox. In the meantime, I’ll do my best to provide food for thought.

I have a client who is financially comfortable and she paid my fee for years without a second thought. At some point, her insurance began covering acupuncture. I collect full payment at the time of the treatment and provide a receipt which patients can submit for reimbursement if they choose. My typical treatment includes two sets of needles so I divide the payment into a 97810 and a 97811 code.

One day, though, I came into the treatment room after the first set of needles and there was that feeling of a great treatment. The room was peaceful, the patient was glowing, the pulses were balanced and lovely. Anything else I did would not make the treatment any better and most likely would make it worse. When I told the patient her pulses felt great she said, “I can tell.”

Before meeting her at the front desk, I spent some time struggling with her receipt. The treatment had still taken 50 minutes. But I hadn’t done two units of acupuncture, so I couldn’t use two codes. So, I used my 97810 code, and put the additional amount of the bill under other services, with no code.

This meant that the patient’s reimbursement was less than she expected, and she, of course, wanted to know why when she came for her next treatment.  I explained that I had done only one unit of acupuncture instead of my usual two. The conversation then covered why I couldn’t bill for two units even if I had only done one (fraud), why I couldn’t have just done two units even if she didn’t really need it (also fraud, plus, not good for her), and why I charged her the same amount as usual if I had done less (I set my fee based on my time, not the number of needles). My client, who had never before questioned my treatment decisions and had been happy to pay my full fee before insurance gave her any reimbursement, was now an unhappy client.

Do I refuse to give any receipts to avoid this issue? Do I lower my rates if I do only one set of needles, even though, since I don’t know what will be needed in advance I still have to schedule the same amount of time?

Let me know what you think, but, here’s one thing I know. Don’t tell me that my practice won’t be impacted by your efforts to have insurance cover acupuncture.

The Acupuncture Profession, News and Analysis

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Three dedicated AAAOM Board members and AAAOM (super-qualified, knowledgeable, and committed) Executive Director, Denise Graham (my last hope that things could get better) resigned recently.

One board member spoke of an uncomfortable and increasingly controlled board environment, a declining membership (now less than 2% of the profession), and poor relationships with national and state leaders. Another stated that the AAAOM doesn’t have the support, revenue, or credibility to make progress towards legislative goals.

This isn’t the first time AAAOM has been on the ropes. If it hadn’t been for money from the AAC and support from other organizations, I doubt they would have survived this long. Somehow, though, they still manage to control the conversation.

In other news, NCASI, the National Center for Acupuncture Safety and Integrity, has appeared on the scene. NCASI’s list of “10 Facts” should be titled “10 Things We Insist are True and/or Important.”  Dry Needling by PT’s is legal in many states. Review my past posts on dry needling and scope for more background. We take real risks when we files lawsuits like these.

For twenty years, the acupuncture organizations have insisted that our success depends upon —

  • Increasing credentials/educational requirements/scope. It doesn’t matter if the old education, credentials, and scope worked fine. It doesn’t matter if it increases practitioner expense, decreases practitioner flexibility, or prevents some LAcs from utilizing techniques available to any other citizen.
  • Getting someone else to pay for acupuncture. Fight for third-party payment systems even if other professions report they make good medicine more difficult and practice less enjoyable. Ignore the hypocrisy of participating in a system that requires discounting services while also criticizing LAcs who offer low-cost or discounted treatments directly to patients. Insist that practitioners who don’t want to participate won’t be impacted, and turn a blind eye to the fraud that many practitioners engage in to make the $’s work.
  • Demanding a monopoly.  There’s no need to earn your market share by providing the best product — instead establish it through litigation and turf battles. Don’t worry if this requires you to disparage your fellow health providers or contradict your message that the public should be able to choose their providers.

After twenty years many LAcs struggle to stay in business, and most voluntary acupuncture organizations struggle to survive. Got questions about ADA compliance, insurance billing, privacy issues, advertising questions, disciplinary actions? You won’t get answers from the AAAOM and you probably won’t get them from your state organization.

It’s time to change our strategy. We have enough training, clients who seek our services, and other providers who respect the medicine so much they want use it themselves. Yes, we always need be aware of and informed about the regulatory/legislative landscape, but we also need business skills, PR, positive marketing, and an easing of the regulatory burden.  We need a good hard look at the cost of education. We need legal advice and business tools and positive interactions with potential referral sources and colleagues. We don’t need more legal battles, more regulation, more legislation, more degrees that further divide us.

When our organizations provide these things, we’ll have successful organizations, and successful practitioners. (If you don’t believe me, ask POCA.)

 

AAAOM Medicare Town Hall

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A few folks asked me to post after the Town Hall, so here goes —

Sorry to say I missed the beginning of the call — the instructions to join were not easily available or straightforward.  At the peak, there were about 70 participants.

Bottom line, the AAAOM lacks the level of expertise they need before moving this legislation forward. The AAAOM does not have an idea of how many LAcs are likely to opt in, didn’t have the correct history of why the Chiropractors do not have the opt-out clause (and seemed to believe they currently can opt-out), didn’t realize that becoming part of the system would limit the amount non-participating providers could bill Medicare clients (a participant provided correct information), wasn’t clear that other providers would be able to bill for acupuncture if it becomes a covered service, hadn’t considered the impact on the practices of practitioners opting out, etc. The information about enrolling, opting in or out, participating or non-participating was still unclear.

A caller suggested it is premature to ask practitioners whether they’ll be likely to opt in — there are too many unknowns. I understand, but don’t we need some idea before we spend millions moving forward with the legislation? A few callers seemed confused about the difference between acupuncture as an EHB and the proposed legislation. Others seemed to think the legislation had already been introduced.

The bill writer/lobbyist wasn’t willing to make predictions, but I’ll go out on a limb. The AAAOM says they need about $1,000,000/year to move this legislation forward and the fundraising remains at around $25,000. According to the lobbyist she’s only been contracted for a month. The current Congress (113th) ends January 3rd, 2015. I say there is a 0% chance any of these bills will pass in the next year.

Would the AAAOM please focus their efforts on things that could help all practitioners now? In an ideal world they could work on both long term and short term projects, but this isn’t an ideal world. Without evidence that a significant majority of the profession intends to participate, why oh why is this legislative effort their only focus?

I hope everyone had a great Thanksgiving.  I did.