| HIGHLIGHTS |
Benefits of Medicaid
Managed Care Presented at the Medicaid Commission
Maggie Brooks,
the County Executive of Monroe County in New York and Medicaid
Commission member, gave a presentation on the benefits of Medicaid
managed care at the Medicaid Commission. She discussed several
initiatives that the Monroe Plan, an ACAP member, have used to reduce
NICU usage in their plan as well as the ACAP report on savings from
managed care expansions.
Monroe Plan had
found that Prenatal/Perinatal Services were the highest Medical expense
diagnostic group and that NICU Admissions were a major driver of costs
for this group. In 1998 Monroe had 108 NICU admissions per 1,000 births
compared to the upstate New York Medicaid rate of about 110 per 1,000.
Beginning in late 1997 Monroe implemented their Healthy Beginnings
Prenatal Care Program.
The Program
consisted of 1) Use of Prenatal Health Risk Assessment Form, 2) enhanced
payment for Health Risk Assessment Forms submitted during the first
trimester and 3) the engagement of community-based outreach program
called BabyLove for psycho-social needs in 2002.
By 2004
Monroe's NICU admissions rates had fallen to 34.9 per 1000 while the
upstate New York average remained the same as before.
County Executive Brooks concluded her remarks by mentioning the
ACAP-sponsored
Lewin study which found that if states expanded their acute care
managed care to all TANF and non-dual SSI the Federal government and
states would save $82 B over ten years.

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| PUBLIC POLICY AND ADVOCACY |
ACAP's Congressional
Update
Continuing the
recent Congressional assertion of authority over Medicaid, Senator
Baucus led 43 of his Senate colleagues in writing a letter to the US
Department of Health and Human Services expressing concern about reports
that the Department planned to implement the President's Fiscal Year
2007 budget proposals to reduce Medicaid spending by $12.2 billion over
five years through regulatory changes to Medicaid provider reimbursement
rates. This included a provision impacting provider taxes, including the
MCO Provider Tax. The letter argued that Congress rejected those
proposals last year by choosing not to include them in the Deficit
Reduction Act (DRA). The Senators said that they did not believe it is
appropriate for the Department, under the administrative authority of
the Centers for Medicare and Medicaid Services (CMS), to make the
changes.
ACAP Sharing
Services In the members only
section of our website, there are several areas that we want to
remind you to look at periodically, including a large section of shared
documents, which includes disaster recovery plans, compliance documents,
job descriptions. We also have several surveys we have done of our
plans. Last week, CMS issued its mid-session analysis of
Medicare and Medicaid spending. Federal Medicaid spending growth
declined from over 12 percent annual increases at the beginning of the
decade to 7.2 percent from 2002-2005, and down to 4.6 percent projected
for fiscal year 2006-2007. CMS said that State Medicaid spending growth
has simultaneously slowed significantly, with many states projecting
lower costs in FY 2006 than FY 2005—citing a greater savings from the
shift of drug coverage for dual eligibles than expected. On Medicare,
Part A and Part B expenditures are higher, primarily because of
continuing rapid growth in the use of Medicare services. Part A
projected expenditures over 5 years (2006-2010) are $17 billion higher
and Part B projected expenditures over 5 years are $30 billion higher
than in the President's Budget.

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| EXCELLENCE AND ACCOUNTABILITY |
Human Resources
Directors Roundtable on 8/1
On Tuesday
August 1 at 3 pm eastern time, there will be a Human Resources Directors
Roundtable. The topic of the call will be Business Continuity Plans for
HR Departments. For discussion questions and call-in instructions,
please visit the HR Directors Roundtable section of our website at: http://www.communityplans.net/members/hr%20roundtable.asp
ACAP Job
Bank ACAP plans can
post job announcements in our job bank. Please see our website for more
details. You can email job announcements to Christina Boye at cboye@communityplans.net. Recap: Marketing
Directors Roundtable
On Tuesday July
11 Marketing Directors from ACAP plans participated in a roundtable to
share and compare member marketing materials. Materials and
presentations from the call are available in the Marketing Directors
section of our website: http://www.communityplans.net/members/mrkting%20roundtable.asp

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| NEWSFLASH |
Colorado Access,
Colorado's largest Medicaid Managed Care Organization, Elects to Not
Renew Medicaid Physical Health Contract
After almost 11
years of serving as Colorado's largest Medicaid managed care plan, the
Board of Directors of Colorado Access has elected to not renew the
Medicaid physical health contract expiring on August 31, 2006. During
the last few years, it has become increasingly difficult for the Plan to
maintain its mandatory risk-based capital requirements. The Medicaid
physical health line of business has had many enrollment challenges and
Colorado Access was recently notified by the Colorado Department of
Healthcare Policy and Financing (HCPF) of a pending rate decrease of up
to 15 percent. "After considerable analysis there was simply no way we
could, in good conscience, pass along a significant rate cut to
providers who are already having a tough time making ends meet serving
the Medicaid population. My staff will work with HCPF to transition the
over 65,000 members back to Medicaid fee-for-service. Because most of
our providers are also Medicaid contractors, the members should be able
to continue seeing their current providers," said Don Hall, President
and CEO of Colorado Access.
By not renewing
this contract, the company expects to be above the required risk-based
capital level in September. The company's losses over the last few years
have been directly attributable to the Medicaid physical health line of
business.
The Board of Colorado Access still believes
strongly that a local non-profit company operated by safety net
providers can best serve Colorado's low-income populations and remains
committed to serving nearly 100,000 members through Access Behavioral
Care (Medicaid behavioral health), Child Health Plan Plus (CHP+) and
Access Advantage (Medicare Advantage Special Needs Plan). "As we have
done for the past 11 years, we will continue to improve access and
quality of care for Colorado's most vulnerable populations. We are
dedicated to serving the physical and behavioral health needs of our
members and that won't change."
Of the
company's current 250 positions, over 50 percent will be eliminated
beginning the first part of October. "The company has made a tremendous
impact on the healthcare of Colorado's neediest residents because our
staff is made up of incredible people. We are committed to doing
everything possible to take care of our impacted employees and help them
find positions at other companies," said Hall. "This is one of the
saddest days that the company has ever experienced and it is unfortunate
that circumstances have forced us to make this
decision."
Colorado Access is a private, nonprofit health plan
that has served the medical and behavioral health needs of the medically
underserved for more than a decade. The company's three lines of
business are now Access Advantage, Child Health Plan Plus and Access
Behavioral Care. Colorado Access is sponsored by The Children's
Hospital, Colorado Community Managed Care Network and University of
Colorado Hospital/University Physicians, Inc
Update on Community
Health Center Appropriations
The Senate
Appropriations Subcommittee on Labor, Health and Human Services, and
Education has passed their FY2007 appropriations bill. The highlights of
the legislation include the following:
FY 2006
Funding Level: $141.531 billion FY 2007 President's Request: $137.794
billion FY 2007 Committee Recommendation: $142.800 billion
HHS Programs: $64.181
billion
- Community Health Centers - $1.926 billion, which
is $145 million over last year.
- Health Professions - The bill includes $304
million for Health Professions programs, and increase of $9 million
over the President's request.
- National Institutes of Health - The Senate bill
includes $28.5 billion, an increase of $220 million over the FY 06
appropriation and $200 million over the President's budget request.
- Pandemic Preparedness at the CDC - The bill
includes $119 million for recurring costs related to pandemic
preparedness at the CDC.
- Family Planning - $283 million, the same amount
as the President's budget.
- Ryan White AIDS Programs - $2.139 billion for the
Ryan White AIDS programs, $78 million more than last year's budget,
including $55 million additional for AIDS Drug Assistance Programs
(ADAP).
- Substance Abuse and Mental Health Services - The
bill provides $3.337 billion, an increase of $77 million more than the
budget request. SAMHSA is responsible for supporting mental health
programs and alcohol and other drug abuse prevention and treatment
services throughout the country.
- Health Information Technology - The bill provides
$113.2 million, an increase of $2 million over the FY 06 level.
- Patient Navigator - The bill provides $5 million
to provide Patient Navigators to help patients navigate the health
care system.

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| Upcoming Events |
July
Events
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