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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280 Table 20-2. Enrollment in ong>Medicaidong> ong>Managedong> ong>Careong>, by Range of Services Covered, 1995 Number Percent Percent of Range of Services of Enrollees of Beneficiaries ong>Managedong>-ong>Careong> Enrollees Comprehensive Range of Services 9,640,309 26.6% 83.0% Behavioral Health Services Only 1,535,780 4.2 13.2 Dental Services Only 443,840 1.2 3.8 Any ong>Managedong> ong>Careong>' 11,619,929 32.0 100.0 SOURCE: Physician Payment Review Commission analysis of Health ong>Careong> Financing Administration data (HCFA 1996a). As noted by HCFA, this total includes duplicated counts of eligible beneficiaries enrolled in multiple plans. The Commission has concluded that it is appropriate to eliminate enrollees in these carve-out plans from the managed-care counts.-HCFA's solution, as shown in its most recent report, differs in that it attempts to eliminate only those enrollees who are double-counted (i.e., enrolled in both a carve-out plan and another managed-care plan) (HCFA 1997). The Commission's solution excludes carve-out plans that offer substantially less than the full range of ong>Medicaidong> services. Adjustments have also been made to the 1994 and 1996 totals reported by HCFA using this approach." These adjustments eliminate the double-counting of beneficiaries, reducing enrollment below 100 percent for five of the six states identified above (Table 20-3). There are also errors in the counts of total beneficiaries, the denominators for these calculations, for several states. HCFA attempted to improve these data in its report on 1996 enrollment, noting that ong>Medicaidong> population counts were collected by states at the same time the managed-care enrollment numbers were collected instead of using regular state data reports as in previous years. An Accurate Count of Enrollment in Any Type of ong>Managedong> ong>Careong>. As previously noted, the Commission estimates that enrollment in any type of ong>Medicaidong> managed care in 1996 was 12.8 million beneficiaries, accounting for 38.6 percent of all beneficiaries's This estimate is about 500,000 below HCFA's published count. Total Commission-estimated managed-care enrollment in 1995 was 9.6 million. This count is about 2 million below the original count HCFA published and about 150,000 t HCFA's treatment of carve-out plans in 1994 was more consistent with the decisions described here. The 1994 data tables showed various plans with zero enrollees (HCFA 1995). Actual enrollments were shown in footnotes, but were not included in the totals. A few behavioral health plans in North Carolina and Washington, however, were not identified this way. Adjustments to the 1994 data are, made to the tables reported later in this chapter. National enrollment is reduced by less than I percent; enrollment for Washington is reduced from 71 percent to 56 percent; enrollment in North Carolina is reduced from 20 percent to 9 percent. '" The National Academy for State Health Policy recently estimated enrollment in any type of managed care as between 12 million and 13 million beneficiaries. This estimate, which was based on decisions about carve-out plans similar to the Commission's, used data from a 1996 survey of the states (Horvath and Kaye 1997). 429 Physician Payment Review Commission

281 Table 20-3. Enrollment in ong>Medicaidong> ong>Managedong> ong>Careong>, with Adjustments for Dental and Behavioral Health Plans, 1995 (percentage) Percent of ong>Medicaidong> Beneficiaries Percent of ong>Medicaidong> Beneficiaries State Enrolled Before Adjustment Enrolled After Adjustment Hawaii 5890/ 2985% Washington 141 58 Oregon 117 71 Colorado 114 47 Utah 102 55 Massachusetts 101 48 Iowa 86 31 North Carolina 30 18 California 23 21 SOURCE: Physician Payment Review Commission analysis of Health ong>Careong> Financing Administration data (HCFA 1996a). * Individuals who enrolled in managed-care plans under Hawaii's Section 1115 waiver are counted in enrollment totals, but not in the denominator (total recipients). below its corrected figure. Even with these adjustments, the pattern of enrollment over a six-year period shows rapid growth, especially in the last two years (Figure 20-6). ong>Medicaidong> managed-care enrollment is concentrated among low-income adults and children." 5 If viewed as a proportion of that population, the managed-care share would be about one-half in 1996. Putting ong>Medicaidong>'s managed-care penetration in context, the share of beneficiaries in managed care is roughly comparable to the proportion of workers in large firms who are enrolled in HMOs. But this share still lags behind the percentage of workers in any type of managed care. Some 20 states, Puerto Rico, and the District of Columbia have more than 50 percent of beneficiaries in any type of managed-care arrangement (Figure 20-7 and Table 20-4). This figure is more than double the number of states at this level just one year earlier. These states include some (e.g., Arizona and Oregon), where high managed-care penetration characterizes the commercial market and others (e.g., North and South Dakota) that made policy decisions to move aggressively into ong>Medicaidong> managed care in spite of a low commercial presence. At the other extreme, 8 states (down from 15 in 1995) have fewer than 10 percent of ong>Medicaidong> beneficiaries in such arrangements. They are mostly small rural states (e.g., Mississippi and Vermont), but also include Texas. According to data from the National Academy for State Health Policy, just over one million elderly and disabled beneficiaries are in managed care (Horvath and Kaye 1997). 1997 Annual Report to Congress/Chapter 20 430

280<br />

Table 20-2. Enrollment in <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>, by Range of Services Covered, 1995<br />

Number Percent Percent of<br />

Range of Services of Enrollees of Beneficiaries <str<strong>on</strong>g>Managed</str<strong>on</strong>g>-<str<strong>on</strong>g>Care</str<strong>on</strong>g> Enrollees<br />

Comprehensive Range of Services 9,640,309 26.6% 83.0%<br />

Behavioral Health Services Only 1,535,780 4.2 13.2<br />

Dental Services Only 443,840 1.2 3.8<br />

Any <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>' 11,619,929 32.0 100.0<br />

SOURCE: Physician Payment Review Commissi<strong>on</strong> analysis of Health <str<strong>on</strong>g>Care</str<strong>on</strong>g> Financing Administrati<strong>on</strong> data<br />

(HCFA 1996a).<br />

As noted by HCFA, this total includes duplicated counts of eligible beneficiaries enrolled in multiple plans.<br />

The Commissi<strong>on</strong> has c<strong>on</strong>cluded that it is appropriate to eliminate enrollees in these carve-out plans<br />

from the managed-care counts.-HCFA's soluti<strong>on</strong>, as shown in its most recent report, differs in that it<br />

attempts to eliminate <strong>on</strong>ly those enrollees who are double-counted (i.e., enrolled in both a carve-out<br />

plan and another managed-care plan) (HCFA 1997). The Commissi<strong>on</strong>'s soluti<strong>on</strong> excludes carve-out<br />

plans that offer substantially less than the full range of <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> services. Adjustments have also been<br />

made to the 1994 and 1996 totals reported by HCFA using this approach." These adjustments<br />

eliminate the double-counting of beneficiaries, reducing enrollment below 100 percent for five of the<br />

six states identified above (Table 20-3).<br />

There are also errors in the counts of total beneficiaries, the denominators for these calculati<strong>on</strong>s, for<br />

several states. HCFA attempted to improve these data in its report <strong>on</strong> 1996 enrollment, noting that<br />

<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> populati<strong>on</strong> counts were collected by states at the same time the managed-care enrollment<br />

numbers were collected instead of using regular state data reports as in previous years.<br />

An Accurate Count of Enrollment in Any Type of <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>. As previously noted, the<br />

Commissi<strong>on</strong> estimates that enrollment in any type of <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> managed care in 1996 was 12.8 milli<strong>on</strong><br />

beneficiaries, accounting for 38.6 percent of all beneficiaries's This estimate is about 500,000 below<br />

HCFA's published count. Total Commissi<strong>on</strong>-estimated managed-care enrollment in 1995 was<br />

9.6 milli<strong>on</strong>. This count is about 2 milli<strong>on</strong> below the original count HCFA published and about 150,000<br />

t HCFA's treatment of carve-out plans in 1994 was more c<strong>on</strong>sistent with the decisi<strong>on</strong>s described here. The 1994 data<br />

tables showed various plans with zero enrollees (HCFA 1995). Actual enrollments were shown in footnotes, but were not<br />

included in the totals. A few behavioral health plans in North Carolina and Washingt<strong>on</strong>, however, were not identified this<br />

way. Adjustments to the 1994 data are, made to the tables reported later in this chapter. Nati<strong>on</strong>al enrollment is reduced by less<br />

than I percent; enrollment for Washingt<strong>on</strong> is reduced from 71 percent to 56 percent; enrollment in North Carolina is reduced<br />

from 20 percent to 9 percent.<br />

'" The Nati<strong>on</strong>al Academy for State Health Policy recently estimated enrollment in any type of managed care as between<br />

12 milli<strong>on</strong> and 13 milli<strong>on</strong> beneficiaries. This estimate, which was based <strong>on</strong> decisi<strong>on</strong>s about carve-out plans similar to the<br />

Commissi<strong>on</strong>'s, used data from a 1996 survey of the states (Horvath and Kaye 1997).<br />

429 Physician Payment Review Commissi<strong>on</strong>

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