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Monitoring Medicaid Managed Care

Presented By:

Navigant Healthcare - Cheryl Duva and Tamyra Porter and The Commonwealth of Pennsylvania – Barbara Molnar

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Agenda

Navigant Health Care Overview

The Importance of Monitoring – Making the Case

The Changing Landscape of Medicaid

Integration and Coordination

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NAVIGANT HEALTHCARE

NAVIGANT HEALTHCARE OVERVIEW

Monitoring Medicaid Managed Care

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Who is Navigant Healthcare?

30+ years Global Consulting Firm

2,500 professionals located in over 45 U.S. / Global Based Offices Key Health Care Practice Areas:

Health Care: > 500 consulting professionals and industry thought leaders

Payer

 Provider

 Performance Improvement

 Life Sciences

Our Clients

Federal and State Government Agencies Health Plans

Health Systems and Physicians

Pharmacy Benefit Managers (PBMs)

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MAKING THE CASE

WHY IS MONITORING IMPORTANT

Monitoring Medicaid Managed Care

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The ultimate goal of monitoring plan and program performance is to improve health outcomes in the

most cost-effective manner while promoting

compliance with contract requirements

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Why is Monitoring Important?

Managed care is expanding

• State Medicaid agencies transitioning from FFS to Managed Care

• More than just a transfer of responsibility

• Effective contractor monitoring will be particularly critical for states moving populations with special needs to managed care

Rigorous federal reporting requirements

• Meeting these requirements becomes more challenging with expanding populations, particularly with expansion to shared savings models

Fiscal Responsibility

• States are increasingly under the microscope to ensure the best use of taxpayers dollars to gain the optimum return on the investment

Accountability

• Value based purchasing….driving performance improvement.

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Managed Care Operating in the States, 2010

Page 8 Comprehensive Medicaid

Managed Care enrollment = 66%

WY

WI

WV WA

VA VT

UT

TX

TN SD

SC

RI PA

OR

OK

OH ND

NC NY

NM

NJ NH

NV

NE MT

MO

MS MN

MI

MA

MD ME

LA KS KY

IA

IL IN ID

HI

GA

FL

DC DE

CT

CA CO

AZ AR

AK

AL

PCCM only (12 states) MCO only (16 states and DC)

No MMC (3 states)

MCO and PCCM (19 states)

Source: Kaiser Commission of Medicaid and the Uninsured. A Profile of Medicaid Managed Care Programs in 2010:A Summary From a 50 State Survey. September 2011.

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Federal Monitoring Regulations

Overview

Federal rules require quality management for Medicaid managed care plans

Federal Medicaid Managed Care Regulations (42 CFR 438.200 et seq.)

Program Performance

MCOs monitor service

delivery and performance improvement using HEDIS® and CAHPS®

State monitors quality of care

CMS monitors via a

Quality Strategy

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Impact of the Accountable Care Act on State Medicaid Programs

New populations and benefit

reductions

State budget reduction

targets

Increased pressures

for

efficiency

H.R. 1‐‐111th Congress: American Recovery and Reinvestment Act of 2009. (2009)

Kaiser Commission of Medicaid and the Uninsured. A Profile of Medicaid Managed Care Programs in 2010:A Summary From a 50 State Survey. September 2011..

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National Themes: Available Dollars

State budgets are stressed from the recession

Affordable Care Act provisions introduce new programs and requirements, including eligibility expansion

Source: Center for Budget and Policy Priorities. States Continue to Feel Recession’s Impact. Revised June 2011.

Source: Center for Budget and Policy Priorities. States Continue to Feel Recession’s Impact. Revised June 2011.

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National Themes: Costs

Page 12

Total Medicaid Spending and Enrollment Percent Change, FY 1998 – FY 2012

Source: Smith, Gifford and Ellis. Moving Ahead Amid Fiscal Challenges: A Look at Medicaid Spending, Coverage and Policy Trends Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2011 and 2012. Kaiser Commission on Medicaid and the Uninsured, October 2011

Source: Smith, Gifford and Ellis. Moving Ahead Amid Fiscal Challenges: A Look at Medicaid Spending, Coverage and Policy Trends Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2011 and 2012. Kaiser Commission on Medicaid and the Uninsured, October 2011

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National Themes: Payer & Provider Implications

Page 13

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Savings Opportunities

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Key Drivers to Cost Savings (in billions of dollars)

1. Administrative System Inefficiency and Errors $100 – $150 2. Provider Inefficiency and Errors $75 – $100 3. Lack of Care Coordination $25 – $50

4. Unwarranted Use $250 – $325

5. Preventable Conditions and Avoidable Costs $25 – $50

6. Fraud and Abuse $125 - $175

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THE CHANGING LANDSCAPE OF

MEDICAID: PREPARE FOR IMPACT

OPPORTUNITIES AND NEXT STEPS

Monitoring Medicaid Managed Care

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The Changing Landscape: Prepare for Impact

I. 2014 Medicaid Expansion

Effective January 1, 2014

ACA mandates coverage for all children and

nonelderly adults with family incomes up to 133%

FPL (estimated at 8 to 22 million)

States may pursue alternative managed care designs to handle the influx of new enrollees.

States may enroll additional members in current contracts States may need to contract with additional health plans to accommodate increase population

States may transition current, fee–for-service programs to risk- based managed care

H.R. 1‐‐111th Congress: American Recovery and Reinvestment Act of 2009. (2009)

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Other Federal opportunities that are changing the landscape and helping states prepare

The Changing Landscape: Prepare for Impact

Fe de ral In itiat ives

- EHR Incentive program

- Health

Insurance Exchanges - Payment

Integrity

Compliance

St at e Op po rtu nit ies

- Real-time data - Levers for

quality

improvement

and monitoring

- Federal dollars

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Page 18

EHR Incentive Program: Administration and Compliance

and Compliance

18

The Situation

Billions $ available to providers to promote the adoption and meaningful use of EHRs: Professionals: $60k;

Hospitals: Millions

All states, the District, and the territories are pursuing Medicaid EHR Incentive Programs and have enhanced 90 % Federal funding match available

40 states have already gone live and made incentive payments requiring administrative oversight through 2021

States have requested help designing, developing and administering their EHR Incentive programs

Providers can receive incentive payments from both State (Medicaid) and Feds (Medicare) and are at risk of financial forfeiture for non-compliance with program requirements

States must conduct audits within four months of provider payments ---includes all eligibility and meaningful use criteria

States will require data analytics to administer their incentive programs and interpret provider data States must identify all overpayments and return funds within a year to the Federal government States must identify all overpayments and return funds within a year to the Federal government

The Challenge

State Medicaid agencies are making significant investments in their Medicaid EHR Incentive Programs and providers stand to earn billions in incentive programs if they can successfully apply, attest, and comply with program requirements.

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Cost Containment: Payment Integrity Compliance

CMS imposes strict Fraud, Waste and Abuse program requirements on Medicare contractors and Medicaid State agencies

Payers are seeking new cost containment / performance improvement strategies Lack of PBM oversight

The Situation

Retrospective not enough …..prospective solutions are sought after as “cost avoidance” is more meaningful

Market Lacks comprehensive (integrated medical/pharmacy) one-stop-shop solutions

Payers typically have SIU units that focus predominantly on Fraud and not overpayments/abuse PBMs focus primarily on pharmacy fraud and overlook member and provider constituencies

The Challenge

Health Care Fraud, Waste and Abuse (FWA) is believed to be a $70B

industry and growing. Rx FWA offerings are in nascent stage.

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Health Insurance Exchanges

Exchanges continue to be one of the most pressing health care reform implementation issues for health plans, states and national policy makers

States will continue to examine the impact of health insurance market reforms, implementation of premium payments, submission of benefit and rate information to the Exchange, and the implications for the consumer experience as they search for insurance options

The Challenge The Situation

States are scrambling toward preparedness to comply with ACA Health Insurance Exchange Requirements and Market Impact (Economic

Feasibility/Sustainability, Provider Access, Health Plan Participation)

Significant systems integration likely required for State Agencies

e.g., State Agency coordination / integration re: eligibility and enrollment for better consumer experience

Key Impact: New Processes, e.g., Qualified Health Plan (QHP) Selection:

Licensing Certification

Re-certification / de-certification

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Monitoring Evolution: From Compliance to Performance Improvement

Basic Monitoring – Program Inception

• Focuses primarily on policies and procedures, operations, and health plans' past performance and experience.

• Includes the readiness review and focuses on collecting baseline data for future monitoring

• Can the health plan support the program?

Compliance Monitoring - “Growing Pains”

• Focuses on contract compliance and compliance with other program requirements

• Frequency of compliance monitoring is based on priorities and past compliance

Quality and Performance Monitoring - Seasoned/Tenured Program

• Helps the reviewer understand how the health plan operates

• Focuses on high priority clinical areas and measures to

what extent the health plan is successful in improving health outcomes

Page 21

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Monitoring Must-Haves

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Goals: Health plans and state agencies share the

same goal

Processes: Develop monitoring processes, policies and procedures

People: Train health plan and state staff to work together toward the

common goal Tools: Develop and use

tools that support the monitoring goals Structure: Develop and

maintain an appropriate

organizational structure

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Integration and Coordination

Clinical models and payments Technology as a driver of quality

Infrastructure to drive integration and performance improvement

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Integration and Coordination: Overview

States are realigning staff, data and technology to deliver “care for the whole person”

– The right data, presented in the right manner helps clinicians and policy makers make the right

decisions.

– Using the data effectively to monitor and evaluate

drives the quality and cost containment process

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Integration and Coordination

Clinical Models and Payment

• Promote integrated, organized

processes for delivering coordinated services that meet the highest quality and efficiency standards

• Designed at the macro/systems level

ACOs

• Similar goals of an ACO

• Utilize payment redesign, quality reporting requirements, data

requirements and accreditation to drive performance and quality

improvement at the micro/provider level

Patient Centered

Medical Homes

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Integration and Coordination

Technology as a driver of quality

EHRs: Real time collection of data used for quality monitoring and improvements

Health information exchange at the regional and state levels

Other Drivers: ICD-10; cost sharing for duals and data availability

Challenges persist: submitting and collecting valid data,

making comparisons over time across providers

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Quality Outcomes

Program Monitoring

Performance Improvements

Individual Monitors

Integration and Coordination

Infrastructure that drives integration and performance improvement

Infrastructure

- Training - Experience - Tools

The key is not to just have reports with numbers on them, but rather to build comprehensive plans for gathering, analyzing, disseminating, and using information to drive

performance improvement.

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Conclusion

• States must effectively monitor and plan

“today” to help them best prepare for

“tomorrow”

• Demand for accountability will increase

• Competition for dollars will increase

References

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