Medicaid Managed Care - U.S. Senate Special Committee on Aging

Medicaid Managed Care - U.S. Senate Special Committee on Aging Medicaid Managed Care - U.S. Senate Special Committee on Aging

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101 Our experience with the AFDC populations and the elderly have taught us several lessons: 1. Humility - We did not have all the answers and we are continuing to learn how to better serve low income individuals. *2. One Size Does Not Fit All - Small programs targeted to unique members needs (i.e. high risk pregnant mothers or children with asthma) are more effective than a population or blanket approach. 3. Listening to the Member - Our ong>Medicaidong> members have taught us how to design services for them. We are not the experts. 4. Cannot Separate Health and Social Needs - A member who is given a prescription which must be refrigerated, but has no refrigerator, will not be compliant. Knowing the individuals social supports, housing situation, etc. is critical to maximizing the effectiveness of health care services received. As we now begin to explore enrolling the disabled population, we are trying to learn from these lessons of the past. The rest of my testimony will provide insight and recommendations for how managed care organizations can effectively develop programs to meet the needs of this unique population. The disabled population truly represents, I believe, the greatest challenge of all for managed care organizations. This is true for a number of challenges sited below: 1. The disabled individual covered by government programs are on these programs not because they are low income, but because they are medically needy. Many require extensive medical care to address chronic conditions as well as acute episodes of care. 2. Their health status can be much less predictable and more volatile than other ong>Medicaidong> or commercial populations.

102 3. ong>Managedong> care organizations often do not have contractual relationships with the types of care settings and care providers - who provide services to this population. 4. Rate setting is particularly challenging for the disabled population because of the volatility of health status and the unique special needs that are often present. 5. ong>Managedong> care organizations, because of liability and risk management issues, may feel that they need to credential and certify providers, thereby over-medicalizing services that are provided by friends or families. 6. Disabled individuals often have long standing relationships with certain providers, many of whom may have been providing care for years. If the disabled individual is required to change providers, the impact could be disruptive to the care plan and demoralizing for the member. There are also positive opportunities for managed care and the disabled population: 1. If the disabled population represents the last bastion of fee-forservice medicine and reimbursement declines, this population runs the risk of decreased access to health care services and programs and the possibly of the creation a two-tiered system, one for the disabled, and one for everyone else. 2. ong>Managedong> care, through its purchasing power, can reduce the cost of certain services or drugs needed by the disabled person. 3. ong>Managedong> care can act as an advocate for the disabled member, ensuring access to quality services. 4. ong>Managedong> care, through its credentialed network, can measure quality outcomes on behalf of the member.

101<br />

Our experience with the AFDC populati<strong>on</strong>s and the elderly have taught<br />

us several less<strong>on</strong>s:<br />

1. Humility -<br />

We did not have all the answers and we are c<strong>on</strong>tinuing to learn<br />

how to better serve low income individuals.<br />

*2. One Size Does Not Fit All -<br />

Small programs targeted to unique members needs (i.e. high risk<br />

pregnant mothers or children with asthma) are more effective than<br />

a populati<strong>on</strong> or blanket approach.<br />

3. Listening to the Member -<br />

Our <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> members have taught us how to design services for<br />

them. We are not the experts.<br />

4. Cannot Separate Health and Social Needs -<br />

A member who is given a prescripti<strong>on</strong> which must be refrigerated,<br />

but has no refrigerator, will not be compliant. Knowing the<br />

individuals social supports, housing situati<strong>on</strong>, etc. is critical to<br />

maximizing the effectiveness of health care services received.<br />

As we now begin to explore enrolling the disabled populati<strong>on</strong>, we are<br />

trying to learn from these less<strong>on</strong>s of the past. The rest of my testim<strong>on</strong>y will<br />

provide insight and recommendati<strong>on</strong>s for how managed care organizati<strong>on</strong>s<br />

can effectively develop programs to meet the needs of this unique populati<strong>on</strong>.<br />

The disabled populati<strong>on</strong> truly represents, I believe, the greatest<br />

challenge of all for managed care organizati<strong>on</strong>s. This is true for a number of<br />

challenges sited below:<br />

1. The disabled individual covered by government programs are <strong>on</strong><br />

these programs not because they are low income, but because<br />

they are medically needy. Many require extensive medical care<br />

to address chr<strong>on</strong>ic c<strong>on</strong>diti<strong>on</strong>s as well as acute episodes of care.<br />

2. Their health status can be much less predictable and more<br />

volatile than other <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> or commercial populati<strong>on</strong>s.

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