Medicaid Managed Care - U.S. Senate Special Committee on Aging
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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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466 United States General Accounting OMce Report to the Ranldng Minority Member, GAO ong>Committeeong> on Government Reform and Oversight, House of Representatives October 1997 MEDICAID MANAGED GAO/HEHS-98-2 CARE Delays and Difficulties in Implementing California's New Mandatory Program

467 G OWebbingion, n-r- 2lS4 GAOUnited States t ~~~~~~~~General Accounting Offike Health. Education. and N Services Division 8-276078 October 1, 1997 The Honorable Henry A. Waxman Ranking Minority Member ong>Committeeong> on Government Reform and Oversight House of Petp.rmen"Iave Dear Mr. Waxman: California's ong>Medicaidong> program, Medi-Cal, served 5.2 million beneficiaries-almost one-seventh of ong>Medicaidong> beneficiaries nationwide-at a cost of nearly $18 billion in federal, state, and local ong>Medicaidong> funds in fiscal year 1996. Over the past 2 decades, Medi-Cal has increasingly relied on managed care delivery systems with the aim of improving beneficiary access to quality care while reducing the rate of program cost growth. In 1992, California began planning a major expansion of its Medi-Cal managed care program-one that would eventually require more than 2.2 million beneficiaries in 12 counties to enroll in one of two managed care plans participating in each county. In a 1995 report, we expressed concern about Califomia's ability to successfully carry out such an expansion because of several weaknesses that we identified in the Medi-Cal managed care program, including the state's potential inability to effectively monitor its contracts with managed care plans and to ensure that the services that plans were contracted to provide were actually provided.' Now, nearly 5 years after planning began, the state has repeatedly delayed its completion date for full implementation of the expansion. In light of these delays and the magnitude of the state's ong>Medicaidong> program, you asked us to follow up on our earlier report and (1) determine the implementation status of California's managed care expansion, including identifying the primary causes of delays; (2) assess the degree to which state efforts to educate beneficiaries about their managed care options and enroll them in managed care have encouraged beneficiaries to choose a plan; (3) evaluate the management of the state's education and enrollment process for the new program, including state and federal oversight of enrollment brokers that the state contracted with to carry out these functions; and (4) make an initial assessment of the impact of the managed 'Medkld MBU C- MC aM 0-d a Wo ' ,, em PeV I CG0EHSi-w2 cou' M.sMd ce EV.Ni

466<br />

United States General Accounting OMce<br />

Report to the Ranldng Minority Member,<br />

GAO <str<strong>on</strong>g>Committee</str<strong>on</strong>g> <strong>on</strong> Government Reform and<br />

Oversight, House of Representatives<br />

October 1997 MEDICAID MANAGED<br />

GAO/HEHS-98-2<br />

CARE<br />

Delays and Difficulties<br />

in Implementing<br />

California's New<br />

Mandatory Program

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