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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808 5. give patients opportunities to select and change primary care providers within the plan; and 6. ensure patient confidentiality. VI. Governance The governance and advisory structures of managed care plans should represent the interests of the community. Participation by members of the broad community offers a valuable mechanism for understanding and achieving access, community service, and other goals contained in these Principles. Community involvement can include board membership, advisory committees, community forums, and other vehicles for gathering information from community members. The governance of managed care plans should: 1. be dearly identifiable and accountable entities responsible for governing the plan; 2. provide a mechanism for local involvement by community members, employers and other purchasers, physicians and other members of the health care workforce, and institutional providers of care; and 3. publish a mission statement identifying the populations and communities served and the plans' commitment to responding to health care needs in the community as well as to the enrolled population. I1I

809 VII. Financial Responsibility The need to conserve resources must be balanced against the obligation to meet the health care needs of patients and the community. By adopting appropriate financial standards and by committing adequate resources to implement these Principles, plans can help ensure that balance is achieved. Specifically, managed care plans should demonstrate financial responsibility by: 1. meeting appropriate federal or state standards related to financial solvency, capitalization, surplus, reserves, deposits, bond requirements, and fiscal soundness; 2. complying with applicable prohibitions against inurement (private benefit), excessive compensation, conflict of interrest, self-referral, fraud, and abuse; 3. reinvesting in services and management activities, including information services and quality assurance, designed to improve organizational effectiveness; and 4. budgeting adequate resources to carry out the Principles described above relating to access, qvality, community service, health system improvement, consumer choice, and governance. 12

808<br />

5. give patients opportunities to select<br />

and change primary care providers within<br />

the plan; and<br />

6. ensure patient c<strong>on</strong>fidentiality.<br />

VI. Governance<br />

The governance and advisory structures of<br />

managed care plans should represent the<br />

interests of the community. Participati<strong>on</strong><br />

by members of the broad community<br />

offers a valuable mechanism for understanding<br />

and achieving access, community<br />

service, and other goals c<strong>on</strong>tained in these<br />

Principles. Community involvement can<br />

include board membership, advisory committees,<br />

community forums, and other<br />

vehicles for gathering informati<strong>on</strong> from<br />

community members. The governance of<br />

managed care plans should:<br />

1. be dearly identifiable and accountable<br />

entities resp<strong>on</strong>sible for governing the<br />

plan;<br />

2. provide a mechanism for local<br />

involvement by community members,<br />

employers and other purchasers, physicians<br />

and other members of the health<br />

care workforce, and instituti<strong>on</strong>al providers<br />

of care; and<br />

3. publish a missi<strong>on</strong> statement identifying<br />

the populati<strong>on</strong>s and communities<br />

served and the plans' commitment to<br />

resp<strong>on</strong>ding to health care needs in the<br />

community as well as to the enrolled populati<strong>on</strong>.<br />

I1I

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