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The RAConteur: Special Bulletin: Color Me Surprised….

Posted by J. Paul Spencer, CPC, CPC-H in Fi-Med Services

Let’s just get right to it. We all know why I’m here today, rather than making my normal appearance on Wednesdays, and we all know what news we’re all waiting for, so here it is.

In a stunning 5-4 decision, the Supreme Court has upheld the most controversial segments of the Patient Protection and Affordable Care Act. Voting in favor of the law were Justices Breyer, Sotomayor, Kagan, Ginsburg and (the absolute surprise of the day) conservative Chief Justice John Roberts. Dissenting were Justices Kennedy, Alito, Scalia and Thomas.

As I write this, the opinions from both sides are still being read from the bench, but already, there is one big change to the law as dictated by the court. As the law was originally written, Congress would make funds available for the expansion of Medicaid programs, but could penalize states by withdrawing all Medicaid funds from a state if it refused to participate. The Supreme Court has invalidated this provision. As Justice Roberts clarified in his opinion:

“Nothing in our opinion precludes Congress from offering funds under the ACA to expand the availability of health care, and requiring that states accepting such funds comply with the conditions on their use. What Congress is not free to do is to penalize States that choose not to participate in that new program by taking away their existing Medicaid funding.”

Other than this funding change to the mandate, the entirety of the law stands.

So to review, here’s what we have:

  • People without insurance are required to purchase coverage. This is also known as the “individual mandate”. Those who do not would be subject to a tax. This will be equivalent to roughly 6% of the entire adult population;
  • Because the individual mandate has been ruled constitutional, the question of “severability”, or separating the mandate from the rest of the law, is a moot point;
  • Children up to age 26 can be covered under their parents’ plans;
  • There will be no such thing as a “pre-existing condition” as of 2014;
  • Medicaid will expand its definition of covered individuals to broaden the coverage pool;
  • Medicaid RACs can now operate freely in order to detect improper payments from Medicaid plans across the country;
  • New payment models that apply to hospitals can go forward uninterrupted; and finally,
  • John Paul Spencer has the equivalent of a four-egg omelette on his face

 

Had I placed a high dollar bet on what today’s decision would have been, I would be declaring bankruptcy about 15 minutes from now. This is why my wife Leslie does the books in our house, and I type here for the general entertainment of the masses.

The decision that was released within the past hour is going to change things. There will certainly be attempts by one-half of Congress to overturn the entire law, but that path faces an impossible road in the short term based on the party make-up of the Senate and the White House.

I leave it to others to determine the political “winners and losers” of today’s decision, but the American health care system has been changed permanently with today’s decision. Cue your inbox, grab the popcorn and let the rhetorical games begin.

Avoid The Rush: Say Goodbye To PPACA Now

Posted by J. Paul Spencer, CPC, CPC-H in Health Care Reform

I began writing this post at 1:12 AM in the morning on the 30th of March (or is it May?). At roughly 7:20 PM last night, I commenced reading through this week’s oral arguments from the Supreme Court regarding the constitutionality of the Patient Protection and Affordable Care Act. The three days of testimony spanning four sessions was strewn across over 400 pages.

Given the title that I have chosen for this particular post, it should not be hard for the reader to discern my conclusions about the future of PPACA after my reading the arguments, but in order to give full context as how I came to this inference, I feel I must first share a few personal observations on the Supreme Court.

In a perfect world, the make-up of the Supreme Court would consist of nine swing votes. Attorneys would present their arguments to the Court, and the justices would impartially decide the merits of each case using 223 years of judicial precedent as their guide. Unfortunately, since the administration of Ronald Reagan, nominees for the bench have been selected based solely on their political ideologies, rather than on legal competence. Since the rejection of Robert Bork in 1987, the Supreme Court has ceased to resemble the impartial interpretive Court of Last Resort envisioned by the Framers of the Constitution and has instead evolved into a 9-person monarchy. Sniveling weasels lurk in the shadow of the Court, waiting, much like over-eager princes, for a vacancy caused either by death or retirement, for with that one open seat, the ideological leaning of the entire Court hangs in the balance. In this context, the justices of the Supreme Court cease to be recognizable as respected jurists and instead morph into blathering carrion with vultures circling above their collective heads.

We fought a revolution to rid ourselves once and for all of this type of regal intrigue, with our evolution as a country helping to greatly reduce the additional lingering paternalistic stains of gender and racial discrimination. The three-decades-old politicization of the Supreme Court has been but one of several new and unexpected ideological battlefields that have had a measurable negative impact on the political discourse in our country. One need only peer briefly into the mosquito-infested swamp of the 24-hour cable news cycle or the comments section of the online version of your local newspaper to realize how far we have fallen. It is with great disappointment that I report that based on this week’s oral arguments, the Supreme Court of the United States continued down a path that eventually will lead directly to the end of our once-functional democracy.

Monday’s session began with all justices present and accounted for. On the conservative wing of the court sat budding weird uncle and semi-professional Borscht-Belt comedian Antonin Scalia, the self important tacticians Samuel Alito and John Roberts, the accidentally aloof Anthony Kennedy and, reprising his sterling impression of Harpo Marx for a sixth straight year (minus hat, horn and any sense of actually being funny) Clarence Thomas. On the other side of the Court sat Steven Breyer, whose interjections during oral arguments took on the appearance of following an old man wearing a hat in a Buick LeSabre in the left lane of the freeway. He was joined by the Court’s answer to Wilson Phillips, in the form of Elena Kagen, Ruth Bader Ginsburg and Sonia Sotomayor, shimmering with their sunny liberal harmonies.

The first day of arguments centered on the penalty terms of the individual insurance mandate provisions of PPACA. There was extended discussion over whether this penalty was actually a tax. It was referred to as a tax, a penalty and (you knew this was coming) a “tax penalty” during Monday’s arguments by different parties. This evolved quickly into a discussion as to the proper timing of injunctive relief for parties subject to the penalty, with the government attorneys arguing that it should be after the determination of a penalty. It is worth noting here that this portion of the Act isn’t in effect until 2014 (for now). 

Prior to recounting the second day of arguments, I should pause now for another philosophical rambling along our path. I have never had much of a need for attorneys. This comes mostly from personal interaction with lawyers within my own family. There were segments of my family that went into the medical profession and some that chose the legal route. The doctors were mostly well-meaning and successful people dedicated to their profession. The best of the attorneys in my family only rose to the unimpressive level of Apprentice Dirtbag. Other less-skilled familial esquires rose to the lesser title of Pond Scum. There was even one who ripped off the estate of an older female client to the tune of hundreds of thousands of dollars. Decency precludes me from telling you what notorious level this person occupied, but is it any wonder that I eventually changed my surname?

That being said, if your life’s mission is to be a high-level trial attorney, and you someday accept the position of Solicitor General of the United States, it is hoped that you have the ability to argue a case before the highest court in our country without resembling someone who accidentally swallowed a throat lozenge. Such was the fate of Donald Verrilli as Day 2 of arguments unfolded. Tuesday’s session was dedicated to the constitutionality of the individual mandate. The fundamental question to be answered was whether forcing uninsured citizens to purchase health insurance constitutes a creation of commerce (which Congress is prohibited from doing based on the Constitution), or the regulation of existing commerce. Verrilli found himself on more than one occasion without credible answers to questions that in his role as Solicitor General, he must or at least should have known would be asked. It bespoke of a fatal flaw in legal strategy for Team Obama. Tuesday’s session was further complicated by Justice Scalia attempting to compare the automobile industry to health care as similar types of commerce, which spoke volumes about his disdain for relevant context and his philosophical allegiances.  

Prior to this day’s session, it was thought that Anthony Kennedy may have been a swing vote with regard to this most important question regarding the Act. All illusions of such a stance were shattered shortly into oral arguments when Kennedy asked “Can you create commerce in order to regulate it?” This signaled to me that Kennedy’s mind is made up about Congress having overstepped its authority by creating commerce, making him by my count the fifth vote to eventually strike down the individual mandate to purchase insurance.

This led into the arguments of Day Three. Over two sessions on Wednesday, the issue of severability was on the table. Attorneys for both sides argued either for or against throwing out the entirety of the Act if the Supreme Court declared the individual mandate portion unconstitutional. Of all of the arguments brought forth this week, those of the third day should sufficiently scare the daylights out of everyone involved in any way, shape or form with a government health care program. The conservative wing of the Court appeared to signal their willingness to throw out the entire law based upon the central importance of the individual mandate, even those unrelated portions such as payment reform, the temporary 2010 Doc Fix (which set the table for the next four fixes), funding for the Indian Health Service and a host of other issues addressed across over 1,000 pages in the Act.

A final ruling is expected in June, but this week’s arguments were only the latest in the long and painful journey that has been the decline of the Supreme Court. It is recommended that all health entities begin to conduct impact analyses to determine what throwing out PPACA and starting again will mean to your facility or physicians. I’ve been wrong before, but I’m betting it all that PPACA died this week. E Pluribus, Chaos!