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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508 Will the Program Be Voluntary or Mandatory? An important and emotional issue states must face is whether to make participation of special populations voluntary or mandatory. States are divided on this question. About half of those enrolling special populations in risk-based programs do so on a mandatory basis. The following table provides examples of voluntary and mandatory programs serving special populations. ong>Medicaidong> Choice in Selected State Programs (Program Status as of May 1997) Program Eligible Populations ong>Medicaidong> Choice Arizona All Mandatory for all California County Organized All Mandatory for all Health Systems (5 counties) California Geographic All, though emphasis is on Mandatory for TANF; ong>Managedong> ong>Careong> (2 counties) TANF Voluntary for all others Minnesota Prepaid Medical Elderly and TANF Mandatory Assistance Plan (PMAP) Minnesota Senior Health Dually eligible elderly Voluntary Options (MSHO) Nebraska HMO Program All Mandatory for all New Jersey HMO Program All Mandatory for TANF in most counties; Voluntary for all others Oregon Health Plan All Mandatory for all Tennong>Careong> All Mandatory for all Wisconsin Iong>Careong> People with disabilities Voluntary Wisconsin Partnership Elderly and people with Voluntary disabilities who qualify for long term care The issue of mandatory or voluntary enrollment is more complicated for older people and people with disabilities than it is for TANF beneficiaries, for a number of reasons. * Untested Nature. As the introduction to this chapter notes, managed care is still a relatively new concept for special populations, and some early research has given us reason to proceed cautiously. Some believe The National Academy for State Health Policy+ ©3 8/97 IV-5

509 that voluntary programs are more appropriate for special populations until success is proven. * Equal Treatment. On the other hand, some states (particularly those with statewide programs) established as a guiding principal that all ong>Medicaidong> beneficiaries, regardless of eligibility category, would be subject to the same enrollment options. That's not to say that individual exceptions are not made. Oregon, for example, allows people to opt out of managed care when necessary to ensure continuity of care, but exceptions are made on a case-by-case basis, rather than through policy affecting entire groups of beneficiaries. * Numbers. Risk-based managed care depends on large numbers of members to spread risk. Voluntary programs typically have difficulty attracting members. This has been the case in the Wisconsin Partnership Program, for example, in which enrollment remains low despite concentrated efforts to make the program attractive to potential members. This issue is complicated by the fact that commercial HMOs tend to view older people and people with disabilities as high risk groups, and may be less inclined to participate in voluntary programs, where enrollment (and thus funding) is not guaranteed. * Waivers. States do not need a federal waiver to operate a voluntary program that serves any group of ong>Medicaidong> beneficiaries or a mandatory program that serves any group of ong>Medicaidong> beneficiaries except: those who are also receiving Medicare, certain children with special needs, and (under most circumstances) American Indians. 9 Since many elderly and persons with disabilities also belong to one of the 'exempted' groups it is likely that states wishing to pursue a mandatory program for the elderly or persons with disabilities will need to seek a waiver. In particular, states interested in including Medicare in a mandatory program for those who are eligible for both Medicare and ong>Medicaidong> (dually eligible), should be prepared to demonstrate to HCFA that full freedom of Medicare choice (which is unwaivable) is preserved within the program; * ADA/NRA. The Americans with Disabilities Act and National Rehabilitation Act may impact a state's ability to create mandatory programs for people with disabilities if they are different than the programs serving other populations. As long as managed care is an 9 The ability to mandate enrollment without need of a federal waiver for some groups of ong>Medicaidong> beneficiaries is effective with contracts entered into or renewed after October 1, 1997. (§4701 and 4710, Title IV-H of the Balanced Budget Act of 1997). The National Academy tor State Health Policy * 0 8/97 Iv-

508<br />

Will the Program Be Voluntary or Mandatory?<br />

An important and emoti<strong>on</strong>al issue states must face is whether to make participati<strong>on</strong><br />

of special populati<strong>on</strong>s voluntary or mandatory. States are divided <strong>on</strong> this questi<strong>on</strong>.<br />

About half of those enrolling special populati<strong>on</strong>s in risk-based programs do so <strong>on</strong> a<br />

mandatory basis. The following table provides examples of voluntary and<br />

mandatory programs serving special populati<strong>on</strong>s.<br />

<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Choice in Selected State Programs<br />

(Program Status as of May 1997)<br />

Program Eligible Populati<strong>on</strong>s <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Choice<br />

Ariz<strong>on</strong>a All Mandatory for all<br />

California County Organized All Mandatory for all<br />

Health Systems<br />

(5 counties)<br />

California Geographic All, though emphasis is <strong>on</strong> Mandatory for TANF;<br />

<str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g> (2 counties) TANF Voluntary for all others<br />

Minnesota Prepaid Medical Elderly and TANF Mandatory<br />

Assistance Plan (PMAP)<br />

Minnesota Senior Health Dually eligible elderly Voluntary<br />

Opti<strong>on</strong>s (MSHO)<br />

Nebraska HMO Program All Mandatory for all<br />

New Jersey HMO Program All Mandatory for TANF in most<br />

counties;<br />

Voluntary for all others<br />

Oreg<strong>on</strong> Health Plan All Mandatory for all<br />

Tenn<str<strong>on</strong>g>Care</str<strong>on</strong>g> All Mandatory for all<br />

Wisc<strong>on</strong>sin I<str<strong>on</strong>g>Care</str<strong>on</strong>g> People with disabilities Voluntary<br />

Wisc<strong>on</strong>sin Partnership Elderly and people with Voluntary<br />

disabilities who qualify for<br />

l<strong>on</strong>g term care<br />

The issue of mandatory or voluntary enrollment is more complicated for older<br />

people and people with disabilities than it is for TANF beneficiaries, for a number of<br />

reas<strong>on</strong>s.<br />

* Untested Nature. As the introducti<strong>on</strong> to this chapter notes, managed<br />

care is still a relatively new c<strong>on</strong>cept for special populati<strong>on</strong>s, and some<br />

early research has given us reas<strong>on</strong> to proceed cautiously. Some believe<br />

The Nati<strong>on</strong>al Academy for State Health Policy+ ©3 8/97 IV-5

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