CMMI: ‘Pork Project’ or Manhattan Project?

CMMI: ‘Pork Project’ or Manhattan Project?

Some herald the Center for Medicare and Medicaid Innovation as a transformative reform. Others say it's a $10 billion slush fund. On the eve of another round of funding awards, here's a look at both sides.

The Congressional Budget Office warned last week that without a major course correction, health care spending will drive the nation deeper into debt across the next 25 years.

And unfortunately, some demographic trends can’t be corrected. We can’t make aging baby boomers younger. We probably can’t compel Americans to eat healthier.

But maybe we can innovate ourselves out of trouble — and into cheaper health care.

At least, that’s the working theory behind the Center for Medicare and Medicaid Innovation. The 15-month-old program has drawn passionate support as a necessary reform, and some say it’s one of the best parts of the Affordable Care Act.

Of late, it’s taken just as fiery criticism, too.

Program Built Around Independence

First, here’s why the CMMI has won fans from ex-Medicare chiefs to academic researchers: It’s designed as a market-driven hothouse, intended to reform government health care from within.

The program’s administrators are empowered with plucking ideas from both the public and private sector, piloting them as necessary and near-instantly implementing them in the full Medicare program, assuming they meet basic cost and quality thresholds.

That makes CMMI staggeringly unlike its pseudo-parent, Medicare, which is subject to political reviews — and often has difficulty making transformative reforms, given that they’ll hurt some constituents of some legislator. Those ties to Congress have helped contribute to Medicare’s terrible record of implementing pilot projects that actually saved the government money.

Well, that and CMS’ 47 years of bureaucratic inertia. In contrast, CMMI isn’t even located on Medicare’s main campus, but in a small office about a mile away.

But where some see unfettered reforms, others see a slush fund waiting to happen.

Louisiana Rep. Charles Boustany (R) worries that the CMMI’s lack of congressional oversight will allow federal officials to steer funds to … well, whomever they like.

“I’m very concerned this is going to be a way of picking some winners and losers, rather than one actually looking at how you improve health care and innovate,” Boustany told Bloomberg’s Alex Wayne in March.

Criticism of Innovation Grants

Dr. Steven Greer recently echoed Boustany’s remarks, although with a twist. Greer isn’t just any CMMI critic — he briefly served as a grant reviewer for the organization, too.

In early 2012, Greer helped with the Health Care Innovation Challenge, which was CMMI’s open call for organizations to submit ideas that would trim health care costs and boost quality. The competition received about 3,000 applications, and CMMI announced 26 awards of about $5 million each in May.

But based on his exposure to the Innovation Challenge, which he describes as rushed, politically motivated, and even lacking functional computer support, Greer concluded that the CMMI is hardly transformative.

Instead, it’s a throwback, he said.

“Despite its lofty ideals, [CMMI] is one more pork program and venue for political cronyism,” Greer wrote in the Wall Street Journal last week. “Congress ought to dismantle and defund the program.”

(Greer’s original critique, posted on his website, was even more cutting; he suggested that one project was steered to the University of Chicago Medical Center because of President Obama’s personal ties to a hospital administrator.)

While Greer’s story made waves with health care analysts and was championed by anti-ACA critics like Sen. Jim DeMint (R-S.C.), it also provoked disagreement, too. One Journal reader, who purported to be an Innovation Challenge grant reviewer, described a much more productive experience of working with fellow researchers and receiving proper time to vet applications.

Several applicants who didn’t receive CMMI funding also spoke up for the program. Brian Lang, CEO of Seniors in Touch, described the process of preparing an application, which helped improve company operations. And while Greer charged that the Innovation Challenge bestowed money-losing “handouts” — like a $1.9 million grant for a George Washington University program that expects to save $1.7 million — Lang also noted that CMMI collectively funded about $126 million worth of projects, which are expected to lead to $254 million in savings.

Meanwhile, Dr. Steven Charlap, who leads an organization called MDPrevent, noted that if the CMMI was truly politically motivated, it wasn’t set up in a particularly savvy way.

Although some Wall Street Journal readers suggested that the grants were intended less as awards — and more as political rewards — Charlap explained that “only 6% of grants can be approved” under current funding levels. “There will be some 2,820 unhappy supplicants when this process is over,” he added. “That doesn’t seem like a very good political move, so let’s not rush to judgment.”

What Happens Next?

Of course, some of the questions dogging the ACA’s future are now haunting the CMMI, too.

While the program should survive — Sen. Sheldon Whitehouse (D-R.I.) recently stressed that although parts of the ACA could fall, there would be “no logic” to the Supreme Court striking down the CMMI, too — there’s always the possibility that the whole law could come tumbling down this month.

And what of CMMI?

Director Richard Gilfillan last month reiterated the position of HHS on the court’s looming decision.

“We’re confident that law will be upheld, and we’re moving forward,” he said.

Quite literally. The organization just put out another call for Accountable Care Organization applications, which won’t be due until late September … essentially, three months after the Supreme Court could decide that the ACA, and all of CMMI’s funding, is null and void.

Here’s what else is happening around the nation.

Administration Actions

Effects on Consumers

Eye on the Courts

Gauging Public Opinion

Inside the Industry

In the States

On the Campaign Trail

Studying Its Effects

Exit mobile version