Subscribe to RSS
DOI: 10.1055/a-2222-8676
Trends in Hospital Billing for Mastectomy and Breast Reconstruction Procedures from 2013 to 2020
Funding None.Abstract
Background With greater acceptance of postmastectomy breast reconstruction (PMBR) as a safe and reliable treatment option, the role of plastic surgeons in breast cancer management continues to rise. As Medicare reimbursements for surgical procedures decline, hospitals may increase charges. Excessive markups can negatively affect uninsured and underinsured patients. We aimed to analyze mastectomy and breast reconstruction procedures to gain insights into recent trends in utilization and billing.
Methods We queried the 2013 to 2020 Medicare Provider Utilization and Payment Data with 14 Current Procedural Terminology (CPT) codes to collect service count numbers, hospital charges, and reimbursements. We calculated utilization (service counts per million female Medicare enrollees), weighted mean charges and reimbursements, and charge-to-reimbursement ratios (CRRs). We calculated total and annual percentage changes for the included CPT codes.
Results Among the 14 CPT codes, 12 CPT codes (85.7%) with nonzero service counts were included. Utilization of mastectomy and breast reconstruction procedures decreased from 1,889 to 1,288 (−31.8%) procedures per million female Medicare beneficiaries from 2013 to 2020. While the utilization of immediate implant placements (CPT 19340) increased by 36.2%, the utilization of delayed implant placements (CPT 19342) decreased by 15.1%. Reimbursements for the included CPT codes changed minimally over time (−2.9%) but charges increased by 28.9%. These changes resulted in CRRs increasing from 3.3 to 4.4 (+33.3%) from 2013 to 2020. Free flap reconstructions (CPT 19364) had the highest CRRs throughout the study period, increasing from 7.0 in 2013 to 10.3 in 2020 (+47.1%).
Conclusions Our analysis of mastectomy and breast reconstruction procedures billed to Medicare Part B from 2013 to 2020 showed increasingly excessive procedural charges. Rises in hospital charges and CRRs may limit uninsured and underinsured patients from accessing necessary care for breast cancer management. Legislations that monitor hospital markups for PMBR procedures may be considered by policymakers.
Publication History
Received: 26 July 2023
Accepted: 29 November 2023
Accepted Manuscript online:
05 December 2023
Article published online:
24 January 2024
© 2024. Thieme. All rights reserved.
Thieme Medical Publishers, Inc.
333 Seventh Avenue, 18th Floor, New York, NY 10001, USA
-
References
- 1 Jagsi R, Jiang J, Momoh AO. et al. Trends and variation in use of breast reconstruction in patients with breast cancer undergoing mastectomy in the United States. J Clin Oncol 2014; 32 (09) 919-926
- 2 Albornoz CR, Bach PB, Mehrara BJ. et al. A paradigm shift in U.S. Breast reconstruction: increasing implant rates. Plast Reconstr Surg 2013; 131 (01) 15-23
- 3 NCD - Breast Reconstruction Following Mastectomy. (140.2). Accessed February 13, 2023 at: https://www.cms.gov/medicare-coverage-database/view/ncd.aspx?ncdid=64
- 4 Women's Health and Cancer Rights Act (WHCRA) | CMS. Accessed February 13, 2023 at: https://www.cms.gov/CCIIO/Programs-and-Initiatives/Other-Insurance-Protections/whcra_factsheet
- 5 Friedman-Eldar O, Burke J, de Castro Silva I. et al. Stalled at the intersection: insurance status and disparities in post-mastectomy breast reconstruction. Breast Cancer Res Treat 2022; 194 (02) 327-335
- 6 Potetz L, Cubanski J. Neuman T. A Primer on Medicare. Vol 11.; 2015:11–16. December 19, 2023 at: http://kff.org/health-reform/issue-brief/a-primer-on-medicare-financing/
- 7 Gong JH, Bai G, Vervoort D, Eltorai AEM, Giladi AM, Long C. Decreasing Medicare utilization, reimbursement, and reimbursement-to-charge ratio of reconstructive plastic surgery procedures: 2010 to 2019. Ann Plast Surg 2022; 88 (05) 549-554
- 8 Gupta N, Thornburg DA, Chow NA. et al. Procedural trends in Medicare reimbursement and utilization for breast reconstruction: 2000-2019. Ann Plast Surg 2022; 89 (01) 28-33
- 9 Gupta N, Haglin JM, Marostica CW, Thornburg DA, Casey III WJ. Trends in Medicare reimbursement for reconstructive plastic surgery procedures: 2000 to 2019. Plast Reconstr Surg 2020; 146 (01) 1541-1551
- 10 Siotos C, Aminzada A, Whitney N. et al. Trends of Medicare reimbursement rates for lower extremity procedures. J Reconstr Microsurg 2024; 40 (04) 294-301
- 11 Teven CM, Gupta N, Yu JW. et al. Analysis of 20-year trends in medicare reimbursement for reconstructive microsurgery. J Reconstr Microsurg 2021; 37 (08) 662-670
- 12 Clemens J, Gottlieb JD. In the shadow of a giant: Medicare's influence on private physician payments. J Polit Econ 2017; 125 (01) 1-39
- 13 Gong JH, Long C, Eltorai AEM, Sanghavi KK, Giladi AM. Billing and utilization trends for hand surgery indicate worsening barriers to accessing care. Hand N Y N. 2023; 18 (07) 1190-1199
- 14 Bai G, Anderson GF. Extreme markup: the fifty US hospitals with the highest charge-to-cost ratios. Health Aff (Millwood) 2015; 34 (06) 922-928
- 15 Bai G, Anderson GF. Variation in the ratio of physician charges to Medicare payments by specialty and region. JAMA 2017; 317 (03) 315-318
- 16 Bai G, Chanmugam A, Suslow VY, Anderson GF. Air ambulances with sky-high charges. Health Aff (Millwood) 2019; 38 (07) 1195-1200
- 17 Keisler-Starkey K, Bunch LN. Health Insurance Coverage in the United States: 2021.
- 18 Moss HA, Havrilesky LJ, Zafar SY, Suneja G, Chino J. Trends in insurance status among patients diagnosed with cancer before and after implementation of the affordable care act. J Oncol Pract 2018; 14 (02) e92-e102
- 19 Berrian JL, Liu Y, Lian M, Schmaltz CL, Colditz GA. The relationship between insurance status and outcomes for breast cancer patients in Missouri. Cancer 2021; 127 (06) 931-937
- 20 Vervoort D, Bai G. The identification of outlier medical specialties from examining the association between the change in charges and the change in Medicare payments from 2010 to 2019. J Gen Intern Med 2022; 37 (12) 3220-3223
- 21 CMS Program Statistics - Centers for Medicare & Medicaid Services Data.. Accessed February 5, 2023 at: https://data.cms.gov/collection/cms-program-statistics
- 22 Consumer Price Index Historical Tables for U.S. City Average. Mid–Atlantic Information Office: U.S. Bureau of Labor Statistics. Accessed February 13, 2023 at: https://www.bls.gov/regions/mid-atlantic/data/consumerpriceindexhistorical_us_table.htm
- 23 Total Number of Medicare Beneficiaries by Type of Coverage. KFF. Accessed October 22, 2023 at: https://www.kff.org/medicare/state-indicator/total-medicare-beneficiaries/
- 24 Distribution of Medicare Beneficiaries by Sex. KFF. Accessed October 22, 2023 at: https://www.kff.org/medicare/state-indicator/medicare-beneficiaries-by-sex/
- 25 Haglin JM, Lott A, Kugelman DN, Konda SR, Egol KA. Declining Medicare reimbursement in orthopedic trauma surgery: 2000–2020. J Orthop Trauma 2021; 35 (02) 79-85
- 26 Haglin JM, Eltorai AEM, Richter KR, Jogerst K, Daniels AH. Medicare reimbursement for general surgery procedures: 2000 to 2018. Ann Surg 2020; 271 (01) 17-22
- 27 Sen S, Deokar AV. Toward understanding variations in price and billing in US healthcare services: a predictive analytics approach. Expert Syst Appl 2022; 209: 118241
- 28 Cemal Y, Albornoz CR, Disa JJ. et al. A paradigm shift in U.S. breast reconstruction: Part 2. The influence of changing mastectomy patterns on reconstructive rate and method. Plast Reconstr Surg 2013; 131 (03) 320e-326e
- 29 Momoh AO, Griffith KA, Hawley ST. et al. Postmastectomy breast reconstruction: exploring plastic surgeon practice patterns and perspectives. Plast Reconstr Surg 2020; 145 (04) 865-876
- 30 Roostaeian J, Pavone L, Da Lio A, Lipa J, Festekjian J, Crisera C. Immediate placement of implants in breast reconstruction: patient selection and outcomes. Plast Reconstr Surg 2011; 127 (04) 1407-1416
- 31 Anderson GF. From ‘soak the rich’ to ‘soak the poor’: recent trends in hospital pricing. Health Aff (Millwood) 2007; 26 (03) 780-789
- 32 Fischer JP, Fox JP, Nelson JA, Kovach SJ, Serletti JM. A longitudinal assessment of outcomes and healthcare resource utilization after immediate breast reconstruction-comparing implant- and autologous-based breast reconstruction. Ann Surg 2015; 262 (04) 692-699
- 33 Sando IC, Chung KC, Kidwell KM, Kozlow JH, Malay S, Momoh AO. Comprehensive breast reconstruction in an academic surgical practice: an evaluation of the financial impact. Plast Reconstr Surg 2014; 134 (06) 1131-1139
- 34 Billig JI, Lu Y, Momoh AO, Chung KC. A nationwide analysis of cost variation for autologous free flap breast reconstruction. JAMA Surg 2017; 152 (11) 1039-1047
- 35 Giladi AM, Yuan F, Chung KC. Plastic surgery practice models and research aims under the Patient Protection and Affordable Care Act. Plast Reconstr Surg 2015; 135 (02) 631-639
- 36 Sheckter CC, Razdan SN, Disa JJ, Mehrara BJ, Matros E. Conceptual considerations for payment bundling in breast reconstruction. Plast Reconstr Surg 2018; 141 (02) 294-300
- 37 Kind GM, Davis MJ, Abu-Ghname A. et al. Carving out financial success: the power of insurance carve-outs in a private plastic surgery practice. Plast Reconstr Surg 2021; 148 (01) 239-246
- 38 Chhabra KR, Fuse Brown E, Ryan AM. No more surprises—new legislation on out-of-network billing. N Engl J Med 2021; 384 (15) 1381-1383
- 39 Richman B, Hall M, Schulman K. The no surprises act and informed financial consent. N Engl J Med 2021; 385 (15) 1348-1351
- 40 Fact Sheet: Hospital Price Transparency | AHA. Accessed July 9, 2023 at: https://www.aha.org/fact-sheets/2023-02-24-fact-sheet-hospital-price-transparency