Slowly however steadily, Marlene Nathanson was recovering. She had suffered a stroke in November 2022 at her house in Minneapolis and spent a week in a hospital; afterward, when she arrived at Episcopal Homes in St. Paul for rehabilitation, she couldn’t stroll. Weakness in her proper arm and hand left her unable to feed herself, and her speech remained considerably garbled.
But over three weeks of bodily, occupational and speech remedy, “she was making good progress,” her husband, Iric Nathanson, stated. “Her therapists were very encouraging.” Ms. Nathanson, then 85, had begun to get round utilizing a walker. Her arm was rising stronger and her speech had practically returned to regular.
Then, on a Wednesday afternoon, one among her therapists advised the Nathansons that their Medicare Advantage plan had refused a request to cowl additional remedy. “She has to leave our facility by Friday,” the therapist stated, apologetically.
Mr. Nathanson, then 82, felt anxious and indignant. He didn’t see how he might organize for house care aides and tools in 48 hours. Besides, he stated, “it didn’t seem right that the therapists and professionals couldn’t determine the course of her care” and needed to yield to an insurance coverage firm’s dictates. “But apparently it happens a lot.”
It does. Traditional Medicare hardly ever requires so-called prior authorization for providers. But nearly all Medicare Advantage plans invoke it earlier than agreeing to cowl sure providers, significantly these carrying high worth tags, akin to chemotherapy, hospital stays, nursing house care and residential health.
“Most people come across this at some point if they stay in a Medicare Advantage plan,” stated Jeannie Fuglesten Biniek, affiliate director of this system on Medicare coverage at KFF, the nonprofit health coverage analysis group. After years of steep development, greater than half of Medicare beneficiaries are actually enrolled in Advantage plans, that are administered by non-public insurance coverage firms.
In 2021, these plans acquired greater than 35 million prior authorization requests, in accordance with a KFF analysis, and turned down about two million, or 6 p.c, in entire or partially.
“The rationale plans use is they want to prevent unnecessary, ill-advised or wasteful care,” stated David Lipschutz, affiliate director of the nonprofit Center for Medicare Advocacy, which frequently hears complaints about prior authorization from each sufferers and health care suppliers. But, he added, it’s additionally “a cost-containment measure.” Insurers can get monetary savings by limiting protection; they’ve additionally realized that few beneficiaries problem denials, regardless that they’re entitled to and often win after they do.
Medicare Advantage plans are capitated, that means they obtain a mounted quantity of public {dollars} per affected person every month and may maintain extra of these {dollars} if prior authorization reduces costly providers. “Plans are making financial decisions rather than medical decisions,” Mr. Lipschutz stated. (Medicare Advantage has never saved money for the Medicare program.)
Such criticisms have circulated for years, bolstered by two studies from the Office of Inspector General within the Department of Health and Human Services. In 2018, a report discovered “widespread and persistent” problems associated to denials of prior authorization and funds to suppliers. It famous that Advantage plans overturned 75 p.c of these denials when sufferers or suppliers appealed.
In 2022, a second inspector common’s report revealed that 13 percent of denied prior authorization requests met Medicare coverage rules and doubtless would have been permitted by conventional Medicare.
By that time, a KFF evaluation discovered, the proportion of prior authorization denials overturned on attraction had reached 82 p.c, elevating the chance that many “should not have been denied in the first place,” Dr. Biniek stated.
Yet few denials — solely about 11 p.c — are appealed. Last yr, a KFF research discovered that 35 p.c of all Medicare beneficiaries didn’t know they had a legal right to appeal; 7 p.c mistakenly thought they’d no such proper.
Moreover, the appeals course of could be complicated, a burden for these already struggling by health crises. “Insurers may deny more aggressively because they know people don’t appeal,” Dr. Biniek added.
Faced with denials, sufferers could pay out of pocket for care that needs to be lined; if they will’t afford to, some simply quit. “People don’t get the care to which they’re entitled,” Mr. Lipschutz stated.
Responding to the inspector common studies, and to a rising tide of complaints, the federal Centers for Medicare and Medicaid Services has established two new guidelines to guard shoppers and streamline prior authorization.
Among different actions, it clarified that Medicare Advantage plans should cowl the same “medically necessary care” as traditional Medicare. “CMS will be conducting oversight” to make sure compliance, the company stated in an e-mail to The Times; its enforcement mechanisms embrace monetary penalties.
Starting in 2026, another new rule will pace the method, reducing the time through which insurers should reply to prior authorization requests to seven days from 14. (For “expedited requests,” it’s 72 hours.) The rule additionally would require insurance coverage to publish prior authorization data — numbers of requests, assessment occasions, denials and appeals — on their web sites. The following yr, plans should undertake a new digital system in order that plans and suppliers can extra effectively share details about prior authorization assessment.
Patients and advocacy teams have highly effective allies of their efforts to reform prior authorization; health care suppliers have additionally complained. The American Medical Association, the American Hospital Association and different skilled and commerce teams have referred to as for change; congressional representatives from each events have launched laws.
“Medicare Advantage makes us jump through so many hoops,” stated Dr. Sandeep Singh, chief medical officer of the Good Shepherd Rehabilitation Network in Allentown, Pa. “It’s created such stress in the health care system.” A couple of years in the past, his group had one “insurance verification specialist” whose job was to deal with prior authorization requests and appeals; now, it employs three.
Prior authorization has delayed admissions, Dr. Singh stated. It has steered sufferers away from specialised hospitals like Good Shepherd, with its intensive remedy schedules, to plain nursing properties or to house care, he added, the place sufferers obtain fewer hours of remedy and face greater charges of re-hospitalization. It diverts time the workers would moderately spend on affected person care.
On a current weekend, Dr. Singh spent two hours coordinating and submitting an attraction for a affected person with spinal twine harm and mind trauma. After 19 days at Good Shepherd, “she’s come a long way, but she can’t be home alone safely,” he stated. Yet her insurer was “telling us to push her out now.” He determined as a substitute to increase her keep whereas the prior authorization appeals proceed. “Unfortunately, we will have to absorb the costs” — about $1,800 a day, he stated.
Will Medicare’s new guidelines make a distinction? So far at Good Shepherd, “we continue to see the same level of resistance” from Advantage plans, Dr. Singh stated.
Mr. Lipschutz, of the Center for Medicare Advocacy, stated, “It’s clear the intention is there, but the jury’s still out on whether this is working.”
“It comes down to enforcement,” he stated. He identified one lesson from researchers, nevertheless: It pays to attraction.
Usually. Earlier in 2022, Mr. Nathanson acquired a prognosis of prostate most cancers. His oncologist ordered a specialised M.R.I.; his Advantage plan stated no. But his physician contacted the insurer, and after some forwards and backwards it agreed to cowl the scan. Mr. Nathanson is in remission, though he’s nonetheless exasperated on the two- to three-week delay in his care.
The attraction for additional rehabilitation at Episcopal Homes for Ms. Nathanson didn’t reverse their insurer’s denial, nevertheless. She stayed for 2 extra days, which price the couple $1,000 out of pocket; they felt lucky to have the ability to pay it.
After breaking a hip final fall, Ms. Nathanson now lives at Episcopal Homes. She, too, resents having her insurer overrule her health care professionals. “I wish I could have stayed with them longer,” she stated in an e-mail. “But I had to go home before I was ready.”
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