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
Significant Efforts Needed to Ensure Quality 322 enrollment for the estimated one-third of disabled individuals who are 'dually eligible' for health care under
Experimentation Is Under Way in Rate-Setting and Risk-Sharing emi S-y 323 Information about the services provided to disabled patients is essential for effective monitoring Since services are no longer paid for on a fee-for-service basis, however, the reimbursement process no longer produces this information. Developing comprehensive, consistent data on services provided under prepaid care takes time and effort To date, only Arizona has substantial experience in doing so. The effort, which can be expensive and time-consuming, can permit states to identify areas in which service utilization rates are overly low or high. It can also allow states to track movement of high-cost individuals among health plans, a step that could help spot service delivery problems. Prepaid care capitation rates are normally based on average costs for broad categories of beneficiaries, such as all disabled people in a state. However, some categories of disabled individuals have very high costs, while others have relatively low costs. Paying the same rate for groups with different health care needs increases the risk that plans will seek to enroll only the healthier, less expensive individuals. If plans feel financial pressure from treating high-cost cases, they may also seek to limit inappropriately the services these individuals receive. Three states (Massachusetts, Missouri, and Ohio) are experimenting with ways to set rates for disabled enrollees that more accurately reflect their varying needs for care. For example, Ohio is exploring an approach that varies the prepaid rate based on prior medical costs, with medical plans receiving more money for people with demonstrated higher needs. Most states that include disabled beneficiaries in prepaid care, and especially those with mandated enrollment, provide some form of safety net' for plans that experience losses related to treating high-cost cases. The most common form is called reinsurance"-essentially an insurance policy that plans can buy. Reinsurance is directed only at losses. Five states (District of Columbia, Massachusetts, Ohio, Utah, and Wisconsin) have implemented another type of arrangement, called a 'risk corridor," that not only shares losses between the plan and the state but also restricts how much of its capitation payments the plan can retain after paying for enrollees' health care needs. In Massachusetts, for example, plans serving those who are severely disabled must return to the state any profit that exceeds 10 percent of the capitation payments they received. Under a risk corridor, a plan's incentive to limit services inappropriately and thereby increase the amount it may retain is reduced because such amounts are limited to a maximum. nod PA8MMEsIs4-t5 MEdkd M4amd C ta th.
- Page 274 and 275: 272 Table 20-1. Medicaid</s
- Page 276 and 277: 274 The slowdown in spending after
- Page 278 and 279: 276 Section 1115 Demonstration Waiv
- Page 280 and 281: 278 primary care case management ar
- Page 282 and 283: 280 Table 20-2. Enrollment in <stro
- Page 284 and 285: 282 / Figure 20-6. Enrollment Growt
- Page 286 and 287: 284 Marnaged-care growth at the sta
- Page 288 and 289: 286 Figure 20-9. Enrollment in Risk
- Page 290 and 291: 288 The extent of problems in repor
- Page 292 and 293: 290 plans (PPRC 1996). In other are
- Page 294 and 295: 292 There appears to be a clear tre
- Page 296 and 297: Enrollment and Disenrollment Polici
- Page 298 and 299: 296 individually with plans over ra
- Page 300 and 301: 298 Health Care Fi
- Page 302 and 303: Medicaid M
- Page 304 and 305: Support & Services Office 120 W. Tw
- Page 306 and 307: INTRODUCTION 304 Presently, nearly
- Page 308 and 309: 306 more mandatory services. Full-r
- Page 310 and 311: 308 the ability of beneficiaries to
- Page 312 and 313: 310 managed care also requires the
- Page 314 and 315: 312 condition period. Such requirem
- Page 316 and 317: 314 If a state contracts with or in
- Page 318 and 319: Appendix A State Activity* 316 Many
- Page 320 and 321: GA { I ~United States (3 Mu General
- Page 322 and 323: Results in Brief E.. - 320
- Page 326 and 327: Recommendations Agency Comments E-d
- Page 328 and 329: cow 326 Chapter 4 Traditional Rate-
- Page 330 and 331: Chapter I Background 328 Me
- Page 332 and 333: ovapt I 330 the option of extending
- Page 334 and 335: Federal Requirements Govern State U
- Page 336 and 337: Table 1.2: Comparison of Ma
- Page 338 and 339: Objectives, Scope, and Methodology
- Page 340 and 341: 338 Chapter 2 States Are Moving Tow
- Page 342 and 343: Table 21 nEnollmen of Disabled Bene
- Page 344 and 345: 342 chona Se. As To~ed Id C"fn, Dai
- Page 346 and 347: Table a& Eabent to Which 17 State I
- Page 348 and 349: 346 So A- hbydf TSo -d Cam fo DIbbi
- Page 350 and 351: Table 2.5: Extent to Which 17 State
- Page 352 and 353: 350 8t" Age Bowi T-Mar 11 Cue fRa D
- Page 354 and 355: 352 C".Pt a Q...itA- Efl~t. . - C f
- Page 356 and 357: Addressing Concerns Through Enrollm
- Page 358 and 359: Assignment Active Management of a D
- Page 360 and 361: 358 fo.V D Axd B ref .Ak,.d - CC-e
- Page 362 and 363: Targeted Quality-of-Care</s
- Page 364 and 365: Encounter Data Analysis Shows Poten
- Page 366 and 367: 364 Chapter 4 Risk-Adjusted Rates a
- Page 368 and 369: 366 Cu.pd 4 Rk-A4tAjLd Row Ad RIASW
- Page 370 and 371: States Could Experience Adverse Sel
- Page 372 and 373: 370 Ckspt. 4 JUek-Mtod Rate Wd HIa
Significant Efforts Needed<br />
to Ensure Quality<br />
322<br />
enrollment for the estimated <strong>on</strong>e-third of disabled individuals who are<br />
'dually eligible' for health care under <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> and Medicare. Medicare<br />
law guarantees these individuals more freedom in switching providers<br />
than they have under <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> managed care programs, which require<br />
prepaid plan enrollment The few states wrestling directly with this issue<br />
have taken varying approaches, ranging from adjusting their programs to<br />
c<strong>on</strong>form with Medicare requirements to seeking waivers of Medicare law<br />
that would allow requirements closer to <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>'s.<br />
States that rely <strong>on</strong> m<strong>on</strong>itoring the services prepaid care plans provide to<br />
the average enrollee may find that these efforts do not provide enough<br />
specificity for assessing care received by disabled enrollees. For example,<br />
problems in care provided to a very vulnerable disabled category, such as<br />
quadriplegics, might escape general view because few if any cases of<br />
quadriplegia would generally appear in random samples across the entire<br />
populati<strong>on</strong> served by a health care plan. Most states recognize a need to<br />
specifically m<strong>on</strong>itor managed care for disabled enrollees and plan to do so<br />
as they expand their programs<br />
Important aspects of states' quality assurance activities can fall into two<br />
main categories: (1) building safeguards into the programs through<br />
adequate planning and c<strong>on</strong>sensus-building and (2) tailoring various<br />
aspects of the program (such as enrollment and m<strong>on</strong>itoring) to meet the<br />
specific needs of disabled beneflciaries To date, most of the efforts have<br />
been made by several states with mandatory participati<strong>on</strong> by disabled<br />
individuals or by states with programs targeted exclusively to disabled<br />
beneficiaries <strong>on</strong> a voluntary basis. The following are examples:<br />
* Oreg<strong>on</strong>'s <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> staff met weekly with health plans, advocates for<br />
disabled individuals, and others for more than a year before the program<br />
was implemented.<br />
. Wisc<strong>on</strong>sin requires the health plan serving participants in its targeted<br />
prepaid care program, which serves <strong>on</strong>ly disabled beneficaries, to have a<br />
<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> advocate <strong>on</strong> staff who is knowledgeable about disabilities.<br />
Wisc<strong>on</strong>sin also mandates that case managers c<strong>on</strong>duct needs assessments<br />
within 55 days of enrollment in the plan.<br />
* Massachusetts allows specialists to act as primary care providers and uses<br />
a health needs assessment that assists enrollment staff in working with<br />
beneficiaries to select a plan.<br />
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