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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Table 1.2: Comparison of ong>Managedong> Cars Flexibillty Undwr Program and Demonstration Walvam ,- I Brpeod 334 Program waivers General characterlstics Demonstration waivens Allows for waier of a limited set of ong>Medicaidong> Allows for waiver of nearly asy provision in requirements ong>Medicaidong> law Approval is generally based on meeting Approval is based on the discretion of the certain established conditions Secretary of HHS Waivers can be renewed for 2- to 5-year Generally not renewableperiods Generally used to establish primary care More recenty used to establish broad case management programs and home and changes in ong>Medicaidong> programs community-based service programs Chlacterlstics pertaining to prepald managed cars Prepaid plans must still meet federal Prepaid plans may enroll ong>Medicaidong> requirement tor 25% or more private pabents exclusively enrollment Full range of mandatory services must be Benefit package may ba modiied' offered Prepaid plan enrollment 'lock-in limited to Prepaid plan enrollment "lock-in" may be 1 monthr exntended to 12 months No restrictions on access to family planning Access to family planning providers may prowiders be restricted Th.e Congres has auisnrzed renewal of some demnstrason waivers. 'To date. oney Oregon has been permind to modify tie baneits package or traditiorna Medeaid benelficianes. Other states have been permined to offer a modiried package only to lhane tnsy eligible far Medicad coverage undar the deonstratpn. 'Lock-in is 6 months tor prepaid plans meesng certain tederal requirerent. The use of prepaid managed care to provide health care for disabled beneficiaries is also affected by the statutory requirements of other programs besides ong>Medicaidong>. Specifically, because many disabled ong>Medicaidong> beneficiaries are simultaneously eligible for one or more other federal programs-most notably Medicare"-state prepaid programs must accommodate requirements of these other programs. The Medicare statute, in particular, contains a number of provisions that cannot be waived and that directly affect basic features of ong>Medicaidong> prepaid care. For example, the Medicare statute requires participating health plans to have an enrollment mix with no more than 50 percent publicly insured i"M.&-, xuthrhed by rthe XlV ofstIr Ol Srd Semiry AM, i a federad heudrh irse perflvas tdis onrrs me -pesple aged 6s or tader, all people who rerelve Sodnia S-riy dsabiaty b-enota tar 24 encth, s- , and ness peeple who softer ftem kidey raune. Medi-are r aors of tswo pa pass A, ebbSh rnrem bipadest hbspisaL, skoted nasing rar, h.ome he.It, and hnapi- e#rvices, aid pan 10 whkihn osee phyisin r a wide r-mte o other wntAes, isicaddig physical trempy reg is GeC8ES 4-1a-ni Medbeid ong>Careong> C ra the OCh leiesd

Applying ong>Managedong> ong>Careong> to Disabled Beneficiaries Poses Additional Challenges Calp- 335 enrollees, in contrast to ong>Medicaidong>'s allowance for up to 75 percent publicly insured members. Interest in using prepaid managed care programs for disabled ong>Medicaidong> beneficiaries has prompted concerns about whether this approach is suitable to meet the needs of disabled beneficiaries. One positive viewpoint is that disabled individuals have much to gain from managed care because of its guarantee of access to a primary care practitioner and its potential for coordinating an array of available services. Improved access may particularly benefit segments of the disabled population that have historically been unable to locate practitioners willing to serve them. However, because prepaid plans typically emphasize primary care, limit access to specialty care, and carefully control the utilization of services as ways to control costs and manage care, they are potentially disadvantageous to certain disabled beneficiaries because of their need for extensive services and access to a range of highly specialized providers. For example, compared with nondisabled children in the general population, disabled children use twice as many physician visits and prescribed medications and five times as many other services, such as physical therapy. Among ong>Medicaidong> children, the average per-person health care costs in 1992 were seven times higher for disabled than for nondisabled children Other estimates place the per-person cost for moderately disabled individuals at two to three times the cost for nondisabled individuals. The 'medical necessity- standards within many prepaid plans are one example of the potential problems that disabled individuals may face, according to advocacy groups. While not unique to prepaid care, these standards often call for "substantial improvement' or 'restoration of function" as conditions for recommending therapies or certain types of medical equipment. However, many disabled people have conditions that preclude making substantial improvement or restoring functions. Advocacy groups worry that medical necessity standards may restrict disabled people from receiving therapy or equipment when they need it basically to maintain their existing level of functioning or to substitute for lost functioning. Advocacy groups have also raised concerns about the potential for managed care plans to disrupt the network of providers that disabled persons have assembled over time. Another concern that has been raised about using managed care for disabled people is the potential effect on what could be called the PW is GA041IuS-aul Medi.d Lloyd CD f- th. Dlfd

Table 1.2: Comparis<strong>on</strong> of <str<strong>on</strong>g>Managed</str<strong>on</strong>g><br />

Cars Flexibillty Undwr Program and<br />

Dem<strong>on</strong>strati<strong>on</strong> Walvam<br />

,- I<br />

Brpeod<br />

334<br />

Program waivers<br />

General characterlstics<br />

Dem<strong>on</strong>strati<strong>on</strong> waivens<br />

Allows for waier of a limited set of <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Allows for waiver of nearly asy provisi<strong>on</strong> in<br />

requirements <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> law<br />

Approval is generally based <strong>on</strong> meeting Approval is based <strong>on</strong> the discreti<strong>on</strong> of the<br />

certain established c<strong>on</strong>diti<strong>on</strong>s Secretary of HHS<br />

Waivers can be renewed for 2- to 5-year Generally not renewableperiods<br />

Generally used to establish primary care More recenty used to establish broad<br />

case management programs and home and changes in <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> programs<br />

community-based service programs<br />

Chlacterlstics pertaining to prepald managed cars<br />

Prepaid plans must still meet federal Prepaid plans may enroll <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g><br />

requirement tor 25% or more private pabents exclusively<br />

enrollment<br />

Full range of mandatory services must be Benefit package may ba modiied'<br />

offered<br />

Prepaid plan enrollment 'lock-in limited to Prepaid plan enrollment "lock-in" may be<br />

1 m<strong>on</strong>thr exntended to 12 m<strong>on</strong>ths<br />

No restricti<strong>on</strong>s <strong>on</strong> access to family planning Access to family planning providers may<br />

prowiders be restricted<br />

Th.e C<strong>on</strong>gres has auisnrzed renewal of some demnstras<strong>on</strong> waivers.<br />

'To date. <strong>on</strong>ey Oreg<strong>on</strong> has been permind to modify tie baneits package or traditiorna Medeaid<br />

benelficianes. Other states have been permined to offer a modiried package <strong>on</strong>ly to lhane tnsy<br />

eligible far Medicad coverage undar the de<strong>on</strong>stratpn.<br />

'Lock-in is 6 m<strong>on</strong>ths tor prepaid plans meesng certain tederal requirerent.<br />

The use of prepaid managed care to provide health care for disabled<br />

beneficiaries is also affected by the statutory requirements of other<br />

programs besides <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>. Specifically, because many disabled <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g><br />

beneficiaries are simultaneously eligible for <strong>on</strong>e or more other federal<br />

programs-most notably Medicare"-state prepaid programs must<br />

accommodate requirements of these other programs. The Medicare<br />

statute, in particular, c<strong>on</strong>tains a number of provisi<strong>on</strong>s that cannot be<br />

waived and that directly affect basic features of <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> prepaid care.<br />

For example, the Medicare statute requires participating health plans to<br />

have an enrollment mix with no more than 50 percent publicly insured<br />

i"M.&-, xuthrhed by rthe XlV ofstIr Ol Srd Semiry AM, i a federad heudrh irse perflvas<br />

tdis <strong>on</strong>rrs me -pesple aged 6s or tader, all people who rerelve Sodnia S-riy dsabiaty b-enota tar<br />

24 encth, s- , and ness peeple who softer ftem kidey raune. Medi-are r aors of tswo pa<br />

pass A, ebbSh rnrem bipadest hbspisaL, skoted nasing rar, h.ome he.It, and hnapi- e#rvices, aid<br />

pan 10 whkihn osee phyisin r a wide r-mte o other wntAes, isicaddig physical trempy<br />

reg is<br />

GeC8ES 4-1a-ni Medbeid <str<strong>on</strong>g>Care</str<strong>on</strong>g> C ra the OCh leiesd

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