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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640 APPENDIX C ENDNOTES 1. See, for examples, General Accounting Office, ong>Medicaidong>: Data Improvements Needed to Help Manage Health ong>Careong> Program , (IMTEC-93-18), May 1993; General Accounting Office, ong>Medicaidong>: Experience wvith State Waivers to Promote Cost Control and Access to ong>Careong>, (T-HEHS-95-115), March 1995; Kaiser Commission on the Future of ong>Medicaidong>, ong>Medicaidong> and ong>Managedong> ong>Careong>: Lessons from the Literature, Washington, DC, March 1995. John K. Iglehart, "Health Policy Report: ong>Medicaidong> and ong>Managedong> ong>Careong>," New England Journal of Medicine (322) 25, June 22, 1995, 1727-1731; Joel Schendler, "Implementing a ong>Managedong>-ong>Careong> System in a Fee-for-Service Environment," W Memo, vol.7, no.7, July 1995, pp. 29-31; Physician Payment Review Commission, Annual Report to Congress, 1995; General Accounting Office, "ong>Medicaidong> ong>Managedong> ong>Careong>: More Competition and Oversight Would Improve California's Expansion Plan," (HEHS-95-87), April 1995; National Academy for State Health Policy, ong>Medicaidong> ong>Managedong> ong>Careong>: A Guide for States, Portland, Maine, 1995; and Michael S. Sparer, ong>Medicaidong> Reform and the Limits of State Health Reform, (Philadelphia: Temple University Press, 1996. 2. In this report, we use the term "organizational" challenges in reference to those internal issues affecting the productivity of the agency. They center around how agency management relates to agency staff and defines their missions, roles, and tasks. These challenges are of course related to, but yet distinct from those focusing on the design, implementation, and assessment of managed care efforts. 3. The National Academy for State Health Policy has given some attention to these challenges. See its chapter on administrative issues in ong>Medicaidong> ong>Managedong> ong>Careong> Guide: A Guide for States. 4. Donna Checkett, "A State ong>Medicaidong> Director on ong>Medicaidong> ong>Managedong> ong>Careong>," Health Affairs 15 (3), Fall 1996, 172. 5. The States are California, Florida, Ohio, Massachusetts, Minnesota, Missouri, New York, Oregon, Rhode Island, and Utah. Our in-depth visits were to California, Minnesota, and Massachusetts. 6. Nowhere; it seems, has ong>Medicaidong> managed care been ushered in more quickly than in Tennessee. See G. Girden Bonnyman, Jr., "Stealth Reform: Market-Based ong>Medicaidong> in Tennessee,' Health Affairs 15 (2) Summer 1996, 306-14; Jim Cooper (former congressman), "Tennong>Careong>: Tennessee's ong>Medicaidong> Experiment," Letter to the Editor in Health Affairs 15 (4), 282; and David M. Mirvis, et al., 'Tennong>Careong>-Health System C- I

641 Reform for Tennessee," Journal of the American Medical Association," (274) 15, October 18, 1995, 1235-1241. 7. In an extended discussion, Medicine and Health reports on four basic stages of health care market development as delineated by the American Practice Association. See Christina Kent, editor, "Perspectives," Medicine and Health, April 17, 1995, 1-4. 8. California, for instance, has undertaken some major ong>Medicaidong> managed care efforts in the early 1970s; They turned out to be largely unsuccessful, but provided a body of lessons learned experience to draw upon in framing the more recent initiatives. See Sparer, ong>Medicaidong> and the Limits of State Health Reform. 9. The California ong>Medicaidong> program covers about 5.5 million enrollees. In contrast, the Rhode Island program covers a little more than 100,000. Clearly, the dimensions of the retooling challenges are very different in these two settings. 10. The complexity is greatly influenced by factors such as the number and type of carveouts; the number and scope of relationships with other State agencies, with county governments, and with local service providers (such as c mmunity health centers); and the number of linguistic groups being served (about 40 in Caifornia) 11. In particular, these would involve State health departments and State departments responsible for licensure of insurance entities. 12. Given that our categories are general and that the pace of change in the States is often quite fast, any assignment of individual States to particular Stages, as we have done, can be risky. Perhaps the most difficult assignment in this regard is Massachusetts. At this writing, PCCM remains as the dominant mode of managed care in Massachusetts. However, the ong>Medicaidong> agency has a substantial number of disabled enrolled in PCCM arrangements and the agency leadership has infused throughout much of the agency a purchaser orientation much like that we describe for Stage II or III States. 13. Our typology of five challenges omits one that might normally be regarded as one of the most prominent: the adequacy of staffing levels to carry out managed care responsibilities. In our presentation, that challenge is to some degree subsumed under some of the others, which we found more compelling. For instance, the challenges of establishing a core team and acquiring the necessary knowledge and skills clearly involve obtaining adequate numbers of staff. None of this is meant to minimize the danger of managed care initiatives being jeopardized by having too few staff associated with their implementation. Indeed, in a recent review of five Section 1115 ong>Medicaidong> managed care demonstration projects, the authors offer the following warning: "New programs need to have enough administrative resources." They add: "At least in the short term, states may require more administrative capacity, particularly if they are continuing to use fee-for-service for some populations or services." See Mathematica Policy research, Inc. and the Urban Institute, Implementing State Health ong>Careong> Reform: What Have We Learned From The First Year? C-2

640<br />

APPENDIX C<br />

ENDNOTES<br />

1. See, for examples, General Accounting Office, <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>: Data Improvements Needed<br />

to Help Manage Health <str<strong>on</strong>g>Care</str<strong>on</strong>g> Program , (IMTEC-93-18), May 1993; General Accounting<br />

Office, <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>: Experience wvith State Waivers to Promote Cost C<strong>on</strong>trol and Access to<br />

<str<strong>on</strong>g>Care</str<strong>on</strong>g>, (T-HEHS-95-115), March 1995; Kaiser Commissi<strong>on</strong> <strong>on</strong> the Future of <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g>,<br />

<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> and <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>: Less<strong>on</strong>s from the Literature, Washingt<strong>on</strong>, DC, March 1995.<br />

John K. Iglehart, "Health Policy Report: <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> and <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>," New England<br />

Journal of Medicine (322) 25, June 22, 1995, 1727-1731; Joel Schendler, "Implementing<br />

a <str<strong>on</strong>g>Managed</str<strong>on</strong>g>-<str<strong>on</strong>g>Care</str<strong>on</strong>g> System in a Fee-for-Service Envir<strong>on</strong>ment," W Memo, vol.7, no.7, July<br />

1995, pp. 29-31; Physician Payment Review Commissi<strong>on</strong>, Annual Report to C<strong>on</strong>gress,<br />

1995; General Accounting Office, "<str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>: More Competiti<strong>on</strong> and<br />

Oversight Would Improve California's Expansi<strong>on</strong> Plan," (HEHS-95-87), April 1995;<br />

Nati<strong>on</strong>al Academy for State Health Policy, <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>: A Guide for States,<br />

Portland, Maine, 1995; and Michael S. Sparer, <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Reform and the Limits of State<br />

Health Reform, (Philadelphia: Temple University Press, 1996.<br />

2. In this report, we use the term "organizati<strong>on</strong>al" challenges in reference to those<br />

internal issues affecting the productivity of the agency. They center around how agency<br />

management relates to agency staff and defines their missi<strong>on</strong>s, roles, and tasks. These<br />

challenges are of course related to, but yet distinct from those focusing <strong>on</strong> the design,<br />

implementati<strong>on</strong>, and assessment of managed care efforts.<br />

3. The Nati<strong>on</strong>al Academy for State Health Policy has given some attenti<strong>on</strong> to these<br />

challenges. See its chapter <strong>on</strong> administrative issues in <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g> Guide: A<br />

Guide for States.<br />

4. D<strong>on</strong>na Checkett, "A State <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Director <strong>on</strong> <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> <str<strong>on</strong>g>Managed</str<strong>on</strong>g> <str<strong>on</strong>g>Care</str<strong>on</strong>g>," Health<br />

Affairs 15 (3), Fall 1996, 172.<br />

5. The States are California, Florida, Ohio, Massachusetts, Minnesota, Missouri, New<br />

York, Oreg<strong>on</strong>, Rhode Island, and Utah. Our in-depth visits were to California,<br />

Minnesota, and Massachusetts.<br />

6. Nowhere; it seems, has <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> managed care been ushered in more quickly than in<br />

Tennessee. See G. Girden B<strong>on</strong>nyman, Jr., "Stealth Reform: Market-Based <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> in<br />

Tennessee,' Health Affairs 15 (2) Summer 1996, 306-14; Jim Cooper (former<br />

c<strong>on</strong>gressman), "Tenn<str<strong>on</strong>g>Care</str<strong>on</strong>g>: Tennessee's <str<strong>on</strong>g>Medicaid</str<strong>on</strong>g> Experiment," Letter to the Editor in<br />

Health Affairs 15 (4), 282; and David M. Mirvis, et al., 'Tenn<str<strong>on</strong>g>Care</str<strong>on</strong>g>-Health System<br />

C- I

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