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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292 There appears to be a clear trend for states to regulate plan marketing tightly or, in many cases. to ban direct plan marketing. This trend has created new interest in finding other ways to inform beneficiaries about their options. Enrollment Brokers A growing number of states have chosen to contract out education and enrollment responsibilities to enrollment brokers. GAO reported that, overall, more than half of the states with a mandatory managed-care program use enrollment brokers or are considering contracting with them (GAO 1996b). The 1996 NASHP survey identified 18 states that used a private entity (other than the plans) for marketing their risk-based plans, though not all used them as the sole source of information. Other states use brokers in their PCCM programs (Horvath and Kaye 1997). Conclusions about the effectiveness of using private enrollment brokers are mixed. Generally, the fact that enrollment counseling is done at all appears to be more important than whether the state contracts the function out to a private entity. NASHP concluded that benefits counseling can be contracted out to a private entity or performed by agency caseworkers, but that the most significant factor is the scope of responsibilities assigned to the benefits counselor (Horvath and Kaye 1995). One indicator used to evaluate the effectiveness of different enrollment approaches is the extent to which beneficiaries choose their own plan or whether the state (assuming a mandatory enrollment policy) assigns them to one of the available plans. A well-designed enrollment counseling program, concluded NASHP, should help reduce the number of state assignments, boost satisfaction with choices of plan and providers, and lead to grcatcr acceptance of managed care generally (Horvath and Kaye 1995). The Kaiser/Commonwealth study reached a mixed conclusion about using enrollment brokers. In two of five states, the study reported that the enrollment experience was smooth. Oregon used an enrollment broker, while Minnesota handled the task through the state and counties. By contrast, the study found that in California, where a broker was used in the Sacramento County program, enrollment was characterized by confusion. Because the county preferred running the program itself, the state's decision to award the contract to a private broker was controversial and was finalized only four months before mandatory enrollment was to begin. The resulting process was characterized as chaotic and problematic, with incomplete informational materials, an understaffed toll-free telephone line, and other problems. About 16 percent of beneficiaries signed up for more than one plan. Some of the problems were resolved only after a 90-day delay of the program's start-up, but other problems have persisted (Gold et al. 1996; Sparer et al. 1996b). GAO reported that using state employees as enrollment counselors can take advantage of in-house knowledge of the ong>Medicaidong> program and the populations served. At least in the short term, though, it may be hard to add enrollment and education responsibilities to staffers' existing obligations for the fee-for-service program. Enrollment brokers can sometimes develop needed services (including 441 Physician Payment Review Commission

293 services for non-English-speaking beneficiaries and toll-free telephone lines) at a lower cost than the state can. Missouri reportedly chose to use a broker because of limits it faced in hiring more state employees and because it could accelerate implementation with this approach. Ohio, on the other hand, chose this approach because of a good experience in Dayton, where use of brokers provided a neutral source of information (GAO 1996b). Availability of Information As noted above, beneficiary education and counseling can be critical to the success of managed-care initiatives. Although none of the studies reviewed here had data from beneficiaries to judge how wellinformed or satisfied they were with the enrollment process, they agreed on the importance of the information proccss. Furthermore, they agreed that the content of the information and the process by which it is communicated are critical. The source of information is less vital, provided it is neutral and unbiased. GAO's report noted that all four states selected for their exemplary programs took responsibility in some way for the task of informing beneficiaries about how best to access care in a managed-care system and how to choose a plan. These tasks are particularly important for a clientele having only limited experience with managed care or its restrictions on provider use (GAO 1996b). States chose to use in-person meetings and mail or telephone contacts, depending on available resources and how rapidly decisions had to be made. GAO concluded that states seemed to prefer inperson interactions where possible. Whether these sessions occur in small groups or as individual interactions, they give counselors a chance to explain complex materials and choices. States that use mail or telephone contacts may use in-person consultations as a backup. All four states studied also used community-based groups to supplement the state's educational programs. The GAO study did not, however, report in detail on the content or subject matter of informational materials or meetings (GAO 1996b). The Kaiser/Commonwealth study pointed to similar findings in drawing lessons from the five state experiences. For example, it cited the importance of an enrollment process that includes written materials designed for low-income populations, a toll-free telephone number that can address a large volume of questions, and a means of providing in-person counseling (Gold et al. 1996). There are many issues related to the content of the information provided. Beyond factual data on plan characteristics that beneficiaries need to make choices, good information about provider networks is also needed. In addition, experts cite the importance of performance data, including the use of ong>Medicaidong>'s edition of the Health Plan Employer Data and Information Set (HEDIS). According to the NASHP survey, 27 states used some version of HEDIS. Only two, however, used reports cards as an educational strategy (Horvath and Kaye 1997). Many of these issues parallel similar issues that the Commission has addressed for the Medicare program (see Chapter 7). 1997 Annual Report to Congress/Chapter 20 442

293<br />

services for n<strong>on</strong>-English-speaking beneficiaries and toll-free teleph<strong>on</strong>e lines) at a lower cost than the<br />

state can. Missouri reportedly chose to use a broker because of limits it faced in hiring more state<br />

employees and because it could accelerate implementati<strong>on</strong> with this approach. Ohio, <strong>on</strong> the other<br />

hand, chose this approach because of a good experience in Dayt<strong>on</strong>, where use of brokers provided a<br />

neutral source of informati<strong>on</strong> (GAO 1996b).<br />

Availability of Informati<strong>on</strong><br />

As noted above, beneficiary educati<strong>on</strong> and counseling can be critical to the success of managed-care<br />

initiatives. Although n<strong>on</strong>e of the studies reviewed here had data from beneficiaries to judge how wellinformed<br />

or satisfied they were with the enrollment process, they agreed <strong>on</strong> the importance of the<br />

informati<strong>on</strong> proccss. Furthermore, they agreed that the c<strong>on</strong>tent of the informati<strong>on</strong> and the process by<br />

which it is communicated are critical. The source of informati<strong>on</strong> is less vital, provided it is neutral and<br />

unbiased.<br />

GAO's report noted that all four states selected for their exemplary programs took resp<strong>on</strong>sibility in<br />

some way for the task of informing beneficiaries about how best to access care in a managed-care<br />

system and how to choose a plan. These tasks are particularly important for a clientele having <strong>on</strong>ly<br />

limited experience with managed care or its restricti<strong>on</strong>s <strong>on</strong> provider use (GAO 1996b).<br />

States chose to use in-pers<strong>on</strong> meetings and mail or teleph<strong>on</strong>e c<strong>on</strong>tacts, depending <strong>on</strong> available<br />

resources and how rapidly decisi<strong>on</strong>s had to be made. GAO c<strong>on</strong>cluded that states seemed to prefer inpers<strong>on</strong><br />

interacti<strong>on</strong>s where possible. Whether these sessi<strong>on</strong>s occur in small groups or as individual<br />

interacti<strong>on</strong>s, they give counselors a chance to explain complex materials and choices. States that use<br />

mail or teleph<strong>on</strong>e c<strong>on</strong>tacts may use in-pers<strong>on</strong> c<strong>on</strong>sultati<strong>on</strong>s as a backup. All four states studied also<br />

used community-based groups to supplement the state's educati<strong>on</strong>al programs. The GAO study did<br />

not, however, report in detail <strong>on</strong> the c<strong>on</strong>tent or subject matter of informati<strong>on</strong>al materials or meetings<br />

(GAO 1996b).<br />

The Kaiser/Comm<strong>on</strong>wealth study pointed to similar findings in drawing less<strong>on</strong>s from the five state<br />

experiences. For example, it cited the importance of an enrollment process that includes written<br />

materials designed for low-income populati<strong>on</strong>s, a toll-free teleph<strong>on</strong>e number that can address a large<br />

volume of questi<strong>on</strong>s, and a means of providing in-pers<strong>on</strong> counseling (Gold et al. 1996).<br />

There are many issues related to the c<strong>on</strong>tent of the informati<strong>on</strong> provided. Bey<strong>on</strong>d factual data <strong>on</strong> plan<br />

characteristics that beneficiaries need to make choices, good informati<strong>on</strong> about provider networks is<br />

also needed. In additi<strong>on</strong>, experts cite the importance of performance data, including the use of<br />

<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>'s editi<strong>on</strong> of the Health Plan Employer Data and Informati<strong>on</strong> Set (HEDIS). According to<br />

the NASHP survey, 27 states used some versi<strong>on</strong> of HEDIS. Only two, however, used reports cards as<br />

an educati<strong>on</strong>al strategy (Horvath and Kaye 1997). Many of these issues parallel similar issues that the<br />

Commissi<strong>on</strong> has addressed for the Medicare program (see Chapter 7).<br />

1997 Annual Report to C<strong>on</strong>gress/Chapter 20 442

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