Introduction of New

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Introduction of New Very Integrated
Programfor Dual-Eligible BeneficiariesTuesday,
January 10, 2011300 p.m. ET
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Agenda

• Introduction
• Options for New Integrated Care Program for
  Persons Dually Eligible for Medicare and
  Medicaid
• Jane Hyatt Thorpe, J.D. Katherine Jett Hayes,
  J.D. George Washington University School of
  Public Health and Health Services Department of
  Health Policy
• Discussion

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About ACAP

• Our mission To represent and strengthen
  not-for-profit safety net health plans as they
  work with providers and caregivers in their
  communities to improve the health and well-being
  of vulnerable populations in a cost-effective
  manner.

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ACAP Represents 57 Safety Net Health Plans

• Arizona
• University Physicians Health Plans
• California
• Alameda Alliance for Health
• CalOptima
• CenCal Health
• Central California Alliance for Health
• Community Health Group
• Contra Costa Health Plan
• Gold Coast Health Plan
• Health Plan of San Mateo
• Inland Empire Health Plan
• L A. Care Health Plan
• Partnership HealthPlan of California
• Santa Clara Family Health Plan
• San Francisco Health Plan
• Colorado
• Colorado Access
• Denver Health

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ACAP Represents 57 Safety Net Health Plans

• Massachusetts
• Boston Medical Center HealthNet Plan
• Commonwealth Care Alliance
• Neighborhood Health Plan
• Network Health
• Michigan
• CareSource Michigan
• Minnesota
• Metropolitan Health Plan
• New Jersey
• Horizon NJ Health
• New York
• Affinity Health Plan
• Amida Care
• Elderplan Homefirst
• Health Plus
• Hudson Health Plan
• New York (cont.)
• Monroe Plan for Medical Care, Inc.

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Key Provisions of Todays Proposal

• Discusses barriers to clinical and financial
  integration in services for dual eligibles
• Identifies models used by states to integrate
  care through contract and waiver authority, pre-
  and post-ACA
• Introduces a new, permanent model for dual
  integration that is not a subset of Medicare
  Advantage

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Integrated Care and Financing for Dual Eligibles
A New Permanent State Plan Option

• Jane Hyatt Thorpe, J.D. and Katherine Jett Hayes,
  J.D.
• Department of Health Policy
• School of Public Health and Health Services
• George Washington University
• December 8, 2011

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The Challenge

• Dual Eligibles Nine million individuals
• High Need
• Sixty-six percent (66) with three or more
  chronic conditions
• Sixty-one percent (61) considered cognitively or
  mentally impaired
• High Cost
• Two hundred and thirty billion (230b) federal
  and state spending in 2006
• Thirty-six percent (36) of Medicare spending
• Thirty-nine percent (39) of Medicaid spending
• Reference Gretchen Jacobson, Tricia Neuman,
  Anthony Damico Barbara Lyons,, Kaiser Family
  Foundation, The Role of Medicare for the People
  Dually Eligible for Medicare and Medicaid (2011).
  Available at http//www.kff.org/medicare/upload/8
  138.pdf The Kaiser Commission on Medicaid Facts
  Dual Eligibles Medicaids Role for Low-Income
  Medicare Beneficiaries (2011) Available at
  http//www.kff.org/medicaid/upload/4091-08.pdf.

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ACA New Opportunities

• Historically, barriers to integration
• Care for dual eligibles reimbursed separately by
  Medicare and Medicaid through fee-for-service and
  managed care models
• Only PACE and Medicare Advantage Special Needs
  Plans (SNPs) provide opportunities to integrate
  care and financing, but limited in scope
• ACA provided new authority
• Federal Office of Coordinated Health Care
  (Medicare-Medicaid Coordination Office)
• Center for Medicare and Medicaid Innovation
• Expanded demonstration authority
• Funded technical assistance for 15 states,
  opportunities for other states
• Sense of impermanence remains, states interested
  in permanent model

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New State Plan Option

• Congress could pass legislation authorizing a new
  permanent program
• provides an additional pathway for states
• provides a sense of permanence not currently
  available through demonstrations or SNP model
• Could borrow from structure of PACE
• Elements

Structure Eligibility Benefits Enrollment Provider Network Adequacy Marketing and Enrollee Communications Grievances and Internal and External Appeals Setting Payment Rates Quality Beneficiary Protections
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Structure

• States and the federal government act as partners
  in establishing the framework
• As is the case with PACE, treat as a separate
  program with a single set of requirements
  regarding eligibility, application procedures,
  administrative requirements, services, payment,
  participant rights, quality assurance, and
  marketing requirements.

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Eligibility

• All full-benefit dual eligibles eligible for full
  range of medically necessary Medicare and
  Medicaid services, as well as care coordination
  and non-medical benefits offered through a health
  plan as part of home- and community-based
  long-term care supports and services
• Allow participating states to adopt 1-year of
  continuous eligibility for dual-eligible
  beneficiaries.

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Benefits

• Plans required to cover all Medicare benefits, as
  well as all Medicaid benefits offered under a
  Medicaid plan and home- and community-based
  waivers.
• Plans required to offer coordination services and
  permitted to offer additional supplemental
  benefits

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Enrollment

• Passive Enrollment with Opt-out
• To address low participation rates by dual
  eligible individuals and the need to assure a
  higher volume of beneficiary enrollment
• Beneficiary education
• Strong beneficiary protections

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Provider Network Adequacy

• Use an existing standard applicable to qualified
  health plans, such as the requirement to contract
  with essential community providers under the ACA
• Plans should demonstrate adequate capacity for
  medical and behavioral health services, as well
  as long-term care services and supports

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Marketing and Enrollee Communications

• Integrated materials (one set)
• outreach and education materials
• enrollment and disenrollment materials
• benefit coverage information
• operational letters for enrollment,
  disenrollment, claims or service denials,
  complaints, internal and external appeals and
  provider terminations
• Information accessible and understandable to the
  beneficiaries that enroll in the plan, including
  individuals with disabilities and limited English
  proficiency

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Grievances and Internal and External Appeals

• Single set of complaints and internal appeals
  processes based on Medicare Advantage, Medicare
  Part D, and Medicaid managed care requirements

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Payment

• Payment Model
• Both the Medicare and Medicaid programs calculate
  and provide risk-adjusted prospective payments to
  a participating health plan
• Health plan discretion to combine the payment
  streams as appropriate to manage and reimburse
  care for the eligible enrolled individuals
• Use risk adjustment model that more accurately
  reflects the scope and usage levels of care
  needed for the dual eligibles
• Include broader set of diagnoses that reflect
  care needs of dual eligibles, including
  comorbidities, complications associated with
  frailty, and behavioral health
• Account for actual service utilization ideally
  over the course of the previous 12 months at the
  individual level, as well as functional status
  (using activities of daily living scale), and
  mortality of the dually eligible population
• Include an opportunity for shared savings
• Similar to PACE payment structure

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Quality

• States work closely with health plans and CMS to
  develop a new set of quality and access measures
  that are specific to the more vulnerable dual
  eligible population and focus on outcomes
  measures, including rates of emergency room use,
  long term care, hospital admission and
  readmission rates, and medication errors
• Participate in 5 Star Quality Demonstration and
  Program

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Beneficiary Protections

• Use of passive enrollment for dual-eligible
  individuals with an opt-out, must include strong
  consumer protections to assure that individuals
  or their families have a meaningful process for
  opting-out of the program, including opting-in to
  other plans or back into fee-for-service Medicare
  
• Protections
• Network adequacy
• Quality of care
• Consumer representation on plan governing boards
• Notice and explanations regarding enrollment and
  disenrollment
• Assurances that all services are culturally and
  linguistically appropriate and physically
  accessible
• Individualized care plans that maximize consumer
  choice in decisions relating to patient care

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Discussion