Medicaid Managed Care - U.S. Senate Special Committee on Aging

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498 ACKNOWLEDGEMENTS This Volume of the Guide would not have been possible without the financial support of both The Center for Health <strong>Care</strong> Strategies and The Pew Charitable Trusts. We would like to thank Stephen Somers, Karen Brodsky and Ruth Martin of The Center for Health <strong>Care</strong> Strategies and our Pew Project Director, Linda Rich, for the insight and encouragement they provided. In addition to crucial financial support, this Volume would not be possible without the knowledge and assistance of people working in the field. We wish to thank those state, plan and advocate staff from Arizona, California, New Jersey, Oregon, Tennessee, and Utah who took the time to meet with us during our site visits to gather information for this Volume and to review the draft of the Volume. <strong>Special</strong> thanks goes to those who arranged our visits. They are: Kim Freeman and Lynn Martinez of Arizona; Alan Stolmack of California; Gretchen Brown and Mary Dewane of Ca1OPTIMA; Margaret Soltis and Daniel Walsky of New Jersey; Joel Young of Oregon; Theresa Clarke and Keith Johnson of Tennessee; and Edward Furia and-Holly Balken of Utah. There were also additional people who took the time to review drafts of this document to whom we offer our thanks and appreciation. In addition to those mentioned previously, they are: Richard Allen of Colorado, David Parrella of Connecticut, Nancy Hale of HMO Oregon, Fran Finnegan and Chris Zukas-Lessard of Maine, Bruce Bullen and Mary Beth Fiske of Massachusetts, Mary Kennedy and Pam Parker of Minnesota, Maureen Booth of the Muskie School of Public Service and a Fellow with the National Academy for State Health Policy, Barbara DeBuono, Barbara Frankel and Elizabeth MacFarlane of New York, Hersh Crawford of Oregon, Michael Jacobs of Pennsylvania, Tricia Leddy of Rhode Island, Linda Wertz of Texas, Robert E. Hurley of the Commonwealth University of Virginia, Jane Beyer, Julie Lake and Margo Westfal of Washington and Angie Dombrowicki and Peggy Bartels of Wisconsin. Finally, the production of this Volume would not have been possible without the contributions of the Academy's own: Cynthia Pernice who produced the graphs contained in this Volume and Mary Jo Torgerson who designed the covers. Copyright i 1997, by The National Academy for State Health Policy All Rights Reserved The National Academy for State Health Policy * 0 8/97
499 <strong>Medicaid</strong> <strong>Managed</strong> <strong>Care</strong>: A Guide for States, Third Edition Volume IV Challenges and Solutions: <strong>Medicaid</strong> <strong>Managed</strong> <strong>Care</strong> Programs Serving the Elderly and Persons with Disabilities TABLE OF CONTENTS Chapter 1 Program Design Issues Overview of <strong>Medicaid</strong> <strong>Managed</strong> <strong>Care</strong> for <strong>Special</strong> Populations ...... ......... IV-1 What Are the Program's Goals? . ......................................... IV-3 Improve Consumer Outcomes ................ ..................... IV4 Control Expenditures ............................................. IV4 Will the Program Be Voluntary or Mandatory? ......... ................... IV-5 Who Will the Program Serve? ........................................... IV-7 Eligibility Status ................................................ IV-8 Age ..................... ............................. IV-9 Long Term <strong>Care</strong> Services Need .................................... IV-9 Type of Disability ................................................ IV-9 What Services will the Program Include? ................................ IV-10 What's In and What's Out? .................... ................... IV-10 Medicare Services ............................................... IV-11 How Will Quality Be Ensured? . ......................................... IV-12 With Whom will the State Contract? ................ .................... IV-13 Purchasing Philosophy ........................................... IV-13 Target Group and Services Purchased .......... .................... IV-14 Availability .................................................. IV-14 Legal Authority ................................................ IV-15 How Will the Program Address Medicare Services? ........ ............... IV-15 Is it Possible to Establish a Mandatory Program? ....... ............. IV-17 The National Academy for State Health Policy* C 8/97
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S. HRG. 105-262 MEDICAID MANAGED CA
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CONTENTS PEOPLE WITH SPECIAL NEEDS,
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V Bazelon Center for Mental Health
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2 also apparent that structuring a
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4 through the doors when somebody o
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6 delay the onset of secondary disa
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8 BRIEFING FOR CONGRESSIONAL STAFF
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10 obstetric and gynecological serv
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JlSAes CRi. E CalD5Vilb J~iiiLi uls
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14 people with disabilities and spe
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16 and prospective enrollees the pl
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18 by the disorder. In fact, schizo
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20 r_ 06/23/1997 16: 03 7836845968
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22 Kathy. STATEMENT OF KATHLEEN H.
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24 even lead to an improvement-but
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26 MANAGED CARE AND LONG TERM T h e
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Consortium for C. 20249&Oid Citizen
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30 11 Managed care
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Strong Oualitv Assurance Measures 3
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NATIONAL ASSOCIATION 34 DEVELOPMENT
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36 Mrs. M.'s care plan is quite com
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38 nurses and social workers be ava
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40 EXPENDITURES FOR NURSING HOMES S
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REQUIRES THE SKILL OF A HIGHLY TRAI
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44 ALZHEIMER'S DISEASE AND RELATED
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46 WITHOUT ADEQUATE RESPITE CARE, I
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48 PROBLEM FOR PEOPLE SUFFERING FRO
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50 Ms. CHRISTENSEN. Thank you. Don.
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52 it will eradicate the virus. Man
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I 54 Today I participate in a state
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56 Ms. CHRISTENSEN. Thank you. [Ina
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58 rather than to community-based s
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60 now has to start looking at thin
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62 plan for that matter, can measur
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64 ual is getting state-of-the-art
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66 a larger population of people wi
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68 of recovery or rehabilitation th
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70 are entitled to renew their pres
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72 point and say that Patsy comes f
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74 .The WASHNTND MEDICAL CENTER CEN
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76 exceptions - have largely based
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78 Plans have not shown a willingne
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eligible people and for the program
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Table l.b Selected Provisions Relat
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VariiaIioils in rownlr-c1t language
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Variations in cbonIlrlcl Is1sgu;age
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Executive Summary 1. Setting the Co
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age, which pays for those M
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This consensus building exercise is
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95 Ms. CHRISTENSEN. I'm going to in
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97 abled population will all need s
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5601 Smetua- Drive PO. r,. 9310 Mmn
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101 Our experience with the AFDC po
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103 I have tried to list both the o
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105 BACKGROUND INFORMATION PATRICIA
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164 Communicating the Quality Messa
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119 Dr. SCANLON. In this series of
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121 lation in managed care in Minne
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123 thing, because you will have va
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125 If we develop them now around e
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127 I think those are the things yo
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130 to use, and they will be collec
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134 unlikely though that these futu
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136 While we are in the midst of th
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138 Center for Health Program Devel
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140 ('enter for Hearlth Proeram Dev
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146 If More is Better, Cost Contain
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148 ANALYSIS OF OUTCOMES SF-36 phys
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150 4-Year Physical Health Outcomes
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152 MAJOR FINDINGS -1 PHYSICAL DECL
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154 INTERPRETATION OF RESULTS * Equ
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156 Additional Information is on th
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order) were followed. Samplingpatie
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AP Ag. 0065(0 og. qP e8 y. d-ftd 04
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162 Tlbb. 5-Plso91 A& MerohJ H89t0
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and chest pain sufficient to requir
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166 Quality Special</strong
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THE STATE OF THE STATES TUESDAY, JU
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171 a little bit about some of the
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173 gatekeeper, and we also wondere
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175 Maryland ought to submit that w
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177 fined by us in our regulations,
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179 To get to that kind of situatio
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181 Outline of Presentation for Dep
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183 B. Approaches to Ensure Quality
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185 * Holds MCOs accountable for qu
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187 HealthChoice and People with <s
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189 HealthChoice and People with <s
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191 Take these three steps to choos
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193 Call 1-800-888-1965 if you are
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IF YOU HAVE HIV/AIDS 195 MCO staff
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197 * Refer you to a medical specia
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*pV 199 SERVICES FOR CHILDREN IN ST
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201 Ms. CHRISTENSEN. Thank you. Go
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203 We implement these QI goals thr
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205 Medicaid recip
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207 My name is Peggy Bartels. I am
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209 At the forefront of Wisconsin's
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211 Finally, we believe that high q
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213 WISCONSIN DEPARTMENT OF HEALTH
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2 SELECTED INDICATORS Access to <st
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Mental Health 217 * HMOs reported f
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'Nisconsin Medicaid</strong
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Program for Program Chareolorletice
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Primary Program AFDC/H8 Provlqar Ch
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225 Children Come First of Dane Cou
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227 Wraparound Milwaukee saving dol
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229 Another positive outcome of the
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231 AltDoughl Nkvie' iniCil costs i
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233 CCE's staff consist of a variet
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235 Al the cturent time, there is n
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237 PACE/Partnership programs guide
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239 necessarily relevant to the AFD
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241 about including these specialty
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EXECUTIVE COMMITTEE Ct-u B.1r- M.mb
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Considerations: 245 Enrolling <stro
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247 Medicaid <stro
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a. some counties 249 b. mandatory e
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251 counties as well-of managed car
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253 In other States devolution is m
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255 /-LCenter for Health Ca
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257 Forums on Managed</stro
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259 Medicaid Carve
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261 So I view Medicaid</str
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264 Medicaid: Spen
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266 a 50 percent match. 2 Since 198
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268 If enrollment of eligible indiv
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270 drugs, ICF services, and optome
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272 Table 20-1. Medicaid</s
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274 The slowdown in spending after
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276 Section 1115 Demonstration Waiv
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278 primary care case management ar
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280 Table 20-2. Enrollment in <stro
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282 / Figure 20-6. Enrollment Growt
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284 Marnaged-care growth at the sta
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286 Figure 20-9. Enrollment in Risk
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288 The extent of problems in repor
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290 plans (PPRC 1996). In other are
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292 There appears to be a clear tre
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Enrollment and Disenrollment Polici
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296 individually with plans over ra
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298 Health Care Fi
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Medicaid M
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Support & Services Office 120 W. Tw
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INTRODUCTION 304 Presently, nearly
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306 more mandatory services. Full-r
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308 the ability of beneficiaries to
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310 managed care also requires the
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312 condition period. Such requirem
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314 If a state contracts with or in
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Appendix A State Activity* 316 Many
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GA { I ~United States (3 Mu General
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Results in Brief E.. - 320
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Significant Efforts Needed to Ensur
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Recommendations Agency Comments E-d
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cow 326 Chapter 4 Traditional Rate-
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Chapter I Background 328 Me
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ovapt I 330 the option of extending
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Federal Requirements Govern State U
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Table 1.2: Comparison of Ma
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Objectives, Scope, and Methodology
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338 Chapter 2 States Are Moving Tow
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Table 21 nEnollmen of Disabled Bene
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342 chona Se. As To~ed Id C"fn, Dai
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Table a& Eabent to Which 17 State I
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346 So A- hbydf TSo -d Cam fo DIbbi
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Table 2.5: Extent to Which 17 State
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350 8t" Age Bowi T-Mar 11 Cue fRa D
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352 C".Pt a Q...itA- Efl~t. . - C f
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Addressing Concerns Through Enrollm
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Assignment Active Management of a D
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358 fo.V D Axd B ref .Ak,.d - CC-e
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Targeted Quality-of-Care</s
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Encounter Data Analysis Shows Poten
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364 Chapter 4 Risk-Adjusted Rates a
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366 Cu.pd 4 Rk-A4tAjLd Row Ad RIASW
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States Could Experience Adverse Sel
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370 Ckspt. 4 JUek-Mtod Rate Wd HIa
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372 Ch.piWr 4 JU-i.k.d Row md RJAk-
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374 Coob,, 4 RkikAdjned Rtr -d Rub-
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376 rued R.I. . 2".shBd c- provider
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378 c-5 Obh- .. I, Co.eWda, ad CHe
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380 Ob-e-eU-o, Co-ded, end C-ost pr
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382 United States General Accountin
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Results in Brief B-Z70335 384 manag
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B-2Kn0 386 assess service utilizati
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Table 1: Characteristics of <strong
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B-27035 390 numbers of patients. In
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B-270335 392 number of primary care
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B-Z7Oa33 394 developed on the premi
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States Challenged to Develop Effect
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B-270335 398 that beneficiary use o
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B.270335 400 of the care provided a
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States Could Learn More From Improv
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Targeted Analyses of Grievance Data
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Observations Agency Comments and Ou
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B-270335 408 Finally, the experts w
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410 Appendix I Scope and Methodolog
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- I 412 App-edU I Sw Wd Methodology
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414 AppeAdt U Fedo.I aod Stt. Ove0s
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416 Appendix III Major Contributors
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GAO July 1996 GAO/HEHS-96-120 418 U
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B-26632 420 family home, rather tha
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Background 1-206320 422 traditional
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States Use Waivers to Expand and Ch
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84=20 426 Figure 1: Staftes Use of
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B-266320 428 began the 1990s with s
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B26320 430 variety of other service
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Enrollment Caps and Management Prac
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Change in Federal Rule Could Result
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States Are Introducing Innovations
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B-nato 438 offered and the means fo
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440 We are sending copies of this r
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C-m 442 Table 2: Changes in Number
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444 App-ar I So-p and Mraodsogo ent
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446 Appendix H Medicaid</st
Page 450 and 451: 448 App-di. f M~I Wd., _. So 4 Of0
Page 452 and 453: 450 App-.i. il _-.1 - Desd s UCFVA'
Page 454 and 455: 452 Apeadls mn Stadad Seee - Defind
Page 456 and 457: 454 Appedi. M St.d.ed Se&ee s Dneoe
Page 458 and 459: Chore 456 Am..& IV LAO n.Gd .Mt. ,
Page 460 and 461: Occupational Therapy and Assessment
Page 462 and 463: Psychological Services Provider Typ
Page 464 and 465: 462 AWppdi IV U-e, Cotfi-, E d Othe
Page 466 and 467: Licensure/Registration Other Standa
Page 468 and 469: 466 United States General Accountin
Page 470 and 471: Results in Brief B-276078 468 care
Page 472 and 473: B-270078 470 Medi-Cal was implement
Page 474 and 475: _.27_7 Tab 1: Mad-C Eiglbli and Enr
Page 476 and 477: ~~- - o~~BZ760?S 474 I J I the enro
Page 478 and 479: B.276078 476 delaying the contracti
Page 480 and 481: State's Education Process Has Not R
Page 482 and 483: B.276078 480 and thereby supplement
Page 484 and 485: Weaknesses in State Management of t
Page 486 and 487: B-276078 484 standards can provide
Page 488 and 489: Insufficient Communication and Invo
Page 490 and 491: Some Safety-Net Providers Are Encou
Page 492 and 493: Conclusions B-276D78 490 Safety-net
Page 494 and 495: B-270078 492 current enrollment bro
Page 496 and 497: Contents Letter 494 Appendix 30 Sco
Page 498 and 499: (1115) oPP. -.M.taoy 496 oversight
Page 502 and 503: 500 Is Lock-in to a Managed
Page 504 and 505: 502 Plan and Provider Issues ......
Page 506 and 507: 504 Chapter 1 Program Design Issues
Page 508 and 509: 506 Other studies attest to improve
Page 510 and 511: 508 Will the Program Be Voluntary o
Page 512 and 513: 510 additional option for people wi
Page 514 and 515: 512 contractor collect spenddown pa
Page 516 and 517: 514 Option A is still quite rare. P
Page 518 and 519: 516 experience with special populat
Page 520 and 521: 518 particularly on a full risk bas
Page 522 and 523: 520 Dual eligibility raises a disti
Page 524 and 525: 522 special populations, and states
Page 526 and 527: 524 Chapter 2 Care
Page 528 and 529: 526 settings. Finally, plans that s
Page 530 and 531: 5281 needs. For example, women who
Page 532 and 533: 530 Oregon's rules require that pla
Page 534 and 535: 532 beneficiaries on July 1, 1997.
Page 536 and 537: 534 facility's delivery, dosage, an
Page 538 and 539: 536 * Strategies for measuring netw
Page 540 and 541: 538. arrangements with traditional
Page 542 and 543: 540 community based or well elders.
Page 544 and 545: 542 Finally, coordination for vulne
Page 546 and 547: 544 Care Coordinat
Page 548 and 549: 546 home health agency developed a
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548 develop a case management syste
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550 Coordinating services is compli
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Highlights 552 Effective care coord
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554 beneficiaries that belong to th
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556 services when needed. This is t
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558 federal government and not at s
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560 cannot enroll a person in a Med
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562 Medicare members are not typica
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564 Regence HMO Oregon staff noted
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566 community based organizations t
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568 Although technical advice for c
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570 Risk pools are usually used to
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572 Internal Quality Program Standa
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574 enrollee utilization patterns,
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576 that the overall prevalence of
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578 HMOs with risk contracts must h
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580 Summary As Medicaid</st
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582 Chapter 3 Medicaid</str
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584 carve-out approach: - improves
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586 Coordinating Medical and Non-Me
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588 Oregon,8 program planners origi
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590 Medicaid syste
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592 Oversight/Monitoring Quality De
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594 with family and friends, contac
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596 * The type(s) of data necessary
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598 * Specificity of desired result
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600 Initiatives under way may prove
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602 a estring the services authoriz
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604 Development of appropriate plan
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606 OFFICE OF INSPECTOR GENERAL The
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Establishing core developmental tea
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610 taken into account considerable
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PURPOSE 612 INTRODUCTION Our purpos
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614 MANAGED CARE PENETRATION The de
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616 CHALLENGES AND RESPONSES Our re
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618 > In building up and maintainin
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620 * For the most part, the agenci
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622 beginning to look for associate
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624 challenge will be to ensure tha
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626 RETOOLING AS AN ISSUE Retooling
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628 finding effective ways of deali
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630 COMMENTS ON THE DRAFT REPORT We
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Defining Managed <
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DATE: JU 27 1997 TO: June Gibbs Bro
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636 protocols will be enhanced thro
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638 Broad and explicit state health
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640 APPENDIX C ENDNOTES 1. See, for
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642 The First Biannual Report of th
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644 30. In Massachusetts, for examp
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646 CHILDREN WITH SPECIAL HEALTH CA
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Prface 648 The U.S. Maternal and Ch
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650 L DEFINING AND IDENTIFYING CHIL
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2. Child Health Questionnaire (CHQ)
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654 Limits * This approach identifi
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656 To what extent does the definit
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658 II. FAMILY PARTICIPATION IN MAN
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660 Description This is an integrat
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12. American Academy of Pediatries
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664 knowledge of a child's conditio
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666 though only the NACHRI approach
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668 Sources Ash A, Porell F, Gruenb
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C. Recommended Adivities 670 With t
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672 B. Examples of Current Research
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674 The Practice Parameters Project
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076 -Administrative Survey: Enrollm
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678 Description This guide provides
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680 APPENDIX 1: PARTICIPANT LIST MA
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682 MANAGED CARE EXPERT WORK GROUP
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684 APPENDIX H: BIBLIOGRAPHY MANAGE
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686 MANAGED CARE EXPERT WORK GROUP
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688 MAKING MEDICAID MANAGED CARE PR
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690 On Saturday, July 13, 1996 and
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INTRODUCTION Medicaid</stro
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694 INTRODUCTION People living with
Page 698 and 699:
696 |CONSENSUS FOR ATO of many of o
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- 698 There is a huge need to educa
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700 People fiving with HIV, and the
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702 The HIV epidemic disproportiona
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NATIONAL ASSOCIATION OF PEOPLE WITH
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706 People living with HIV must be
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708 CONSENSUS FOR ACTION service Fo
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710 E . | CONSENSUS FORACTION Peopl
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712 CONSENSUS FOR ACTION _ Under Cr
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714 PNDX Aj MedIcaId -A health care
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Resources 716 NAPWAserves as the vo
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Medicaid Working G
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Background 720 FAMILY"7OICES A nati
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722 was included. A telephone numbe
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724 provider to ask questions. fami
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726 * Families were twice as likely
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728 carefully to explain why they a
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Table I Family Voices Survey on <st
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Table 2 (continued) Family Voices S
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Table 4 Family Voices Survey on <st
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736 Table 7 Family Voices Survey on
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738 Table 8 Family Voices Survey on
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740 Table 10 Family Voices Survey o
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al 742 Table II Family Voices Surve
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744 Tn Uvman 1usoUU - Ya..e. PeMh i
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746 Tihe b d. - Yc'.n-e-aPcopb bith
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748 UT1, W L= 1. - Y g o. ith ,Pb M
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750 o As with the rest of the <stro
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752 Mlbe 1 Mediaid Benefici7 ibtas
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754 9: Office of the Assistant Secr
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The research for this paper Was sup
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Definitions of "Medically Necessary
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Who Should Define What Is Necessary
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762 contract. In that situation, th
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764 sannes and for certain conditio
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Defining Elements of a Definition o
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768 (6J identify and evaluate a men
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770 This paper highlights children'
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772 din resulut in inadequate or in
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774 dividual under public-sector ma
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BAZELON CENTER RESOURCES ON MANAGED
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ivn58ffR1eL_ 778 THF VARIAI LITY OF
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_4 What are the essential benefits
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WHAT PUBLIC PURCHASERS CAN DO - Oen
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ASSESSMENT OF STANDARDS - Quality M
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Accessibility, Availability, Referr
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- Credentialing and Recredtentialin
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Standards for Members' Rights and R
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Preventive Behavioral Health Servic
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9b4 etfJovrk9imut July 16, 1997 794
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hel,4Neipaork SEmi July 16, 1997 79
Page 800 and 801:
798 Principles for Accountable <str
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800 The Coalition for Accountable <
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802 Principles for Accountable <str
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Im. Community 804 Health plans shou
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806 4. participating in community p
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808 5. give patients opportunities
Page 812 and 813:
810 aRve New Children With Disabili
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Table of Contents 812 Executive Sum
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814 combination of HealthPartners d
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Introduction 816 F amilies whose ch
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818 Of the 24 families asked, 13 pa
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820 Shriner's Hospital, or claims s
Page 824 and 825:
822 Major Child and Family Concerns
Page 826 and 827:
Services and Funding Sources 824 Nu
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Physician Survey 826 M ost physicia
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828 Discussion and Recommendations
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830 * Claims and billing informatio
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832 El Advocate for a safety net of
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834 :i:PTNG F'AITH SYMThMr -"r W, M
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836 We recognize that managed care
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due to a host of complex demographi
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affect many different facets of an
Page 844 and 845:
state agencies, must be held accoun
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In selecting managed care entities
Page 848 and 849:
Z, W 0 V==4 . k PQ- 0 V-- 9 Q) bo =
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plans were virtually identical in b
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to chronically i persons has been t
Page 854 and 855:
Managed Risk Medic
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the lead. Large purchasers might wo
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ISBN 0-16-055952-9 9 [ 10111111 155
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Medicaid Managed Care - U.S. Senate Special Committee on Aging

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