Seven CA plans (Aetna, BC of CA, BS of CA, CIGNA, Health Net of CA, PacifiCare, and Western Health Advantage) paid out a combined $55 million to an estimated 35,000 physicians who met Integrated Health Association's Pay for Performance standards in 2006. Wait. . . misread that figure. 35K doctors are eligible. It doesn't say how many were paid. Interesting because my initial thought was that $55M over 35K is an average of about $1571 per doctor. Not much considering the investment of time and money it takes to get there. A figure we'd like to see is the average payout and what it took to get to the highest levels of payout - something that would give some real perspective.
Many physicians are suspicious of (or downright hostile toward) P4P, viewing it as an insurance company move to ultimately lower reimbursement.
(Third, will P4P be an excuse for some payers to reduce reimbursement?
Medicare is the most influential payer to announce a P4P initiative
because Medicare's reimbursement rates are the benchmark used by other
insurance providers. For example, an insurer may reimburse at 110
percent of the Medicare rate and another, at 85 percent. If private
payers parallel Medicare in lowering reimbursement but do not also
adopt a performance bonus, physician reimbursement would decrease.)
An article sent our way by FOB (Friend of Blog) Darrell Pruitt decries P4P as a tool of insurers to get physicians to spend less money:
"We're concerned that as insurers try to maximize profits they are
saying that the doctor that charges the least amount of money is the
highest quality," said Dr. Jim Rohack, a cardiologist and AMA board
member.
Insurers deny such motives. And according to IHA's numbers, physicians "reported screening about 60,000 more women for cervical cancer, testing nearly 12,000 more diabetics, and administering approximately 30,000 more childhood immunizations than during the previous year for their patients enrolled in participating health plans." Probably not something that saved the plans money in the short term - but that they expect will save money over time as less cervical cancers go unchecked and more patients with diabetes learn to control their condition.
It's a complex question that doesn't benefit from the simplifications of either the pro or con camps. The principle is sound but the execution may not have yet caught up. Or perhaps it has? We don't really know as long as we don't understand how much the doctors in CA are getting individually for meeting P4P standards.
Take a look here at the Transparency Report on 2006 Payouts. See what you make of that and whether it's helpful information.
More information on IHA's P4P program
Letter: Questioning CMS's P4P Results
IHA Press Releases