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HIGHLIGHTS |
ACAP’s Fly-in and Other
Congressional Activity This Week
ACAP made a big step forward in the evolution of its government
relations strategy by hosting its first annual Congressional Fly-In
on February 7. Seven ACAP plans met with their Representatives and
Senators and were successful in obtaining commitments from many of
their elected officials that they would be supportive of safety net
health plans. Two other ACAP members plan on separate Hill visits
later this month. ACAP plans had over 30 meetings in the offices of
Senator Hillary Clinton, Senator Ted Kennedy, House Minority Leader
John Boehner, Senator John Kerry, Finance Chairman Max Baucus and
other Congressional big-wigs. Although ACAP staff will be
debriefing on the fly-in next week, the overall sense of the event
was that we made great progress in educating our elected officials
about issues impacting safety net health plans and identified people
who support our work and mission.
In these meetings, ACAP representatives outlined the ACAP 2007
legislative agenda, which includes:
- Passing the Medicaid drug rebate for Medicaid
managed care organizations to save the Federal government
$2.2 billion over five years.
- Recognizing the efficiencies and savings of including
Medicaid health plans – which operate at the nexus of all
Medicaid managed care transactions – in all proposals to expand
health information technology.
- Adequately funding the State Children’s Health Insurance
Program (SCHIP) during reauthorization so that all eligible
children may receive coverage.
- Supporting a federal demonstration program that includes
Medicaid health plans to reduce racial and ethnic health
disparities for Americans enrolled in public health
programs.
- Signaling that reauthorization of Medicare Special Needs
Plans will occur in 2008.
Participants were also treated to dinner (and a surprise viewing of
Presidential hopeful Hillary Rodham Clinton!) at the Poste Moderne
Brasserie Tuesday evening. At dinner, each participant shared health
policy news from his or her home state: news ranged from movement to
cover all children below 300 percent of the FPL in Washington State,
to updates on health reform in Massachusetts, to anticipation of
bold health action by new Governor Eliot Spitzer in New York.
Evaluations of the relative successes and lessons learned of each
Hill meeting will be aggregated and analyzed before being made
available to all ACAP members. Discussion is already underway to
plan for another fly-in, so please stay tuned.
ACAP to Host Third
Meeting for Medicare SNP Plans
ACAP will host its third meeting for ACAP plans operating Medicare
SNPs (or considering launching a Medicare SNP) in Phoenix, AZ on
March 6th and 7th, 2007. Medicare Directors and ACAP plan CEOs will
be holding concurrent meeting in Phoenix March 6-7 and will have the
opportunity to meet jointly on the morning of March 6th to discuss
Medicare SNP strategy and Medicare and Medicaid integration.
Medicare Directors will then proceed with a Medicare SNP-focused
meeting for the remainder of March 6th and March 7th (concluding at
noon on March 7th). Our guest speaker will be Kirk Strawn, M.D.,
President of PopManHealth and an expert on risk adjustment
strategies for small and medium sized SNP plans. Kirk will discuss
the risk adjusted payment system and the options for plans to ensure
their payments reflect the health risk of their member population.
Some additional agenda items include:
- Lessons Learned and Greatest Challenges - During this
session, plans will share their key lessons learned to date, as
well as the major operational challenges they are facing with
their Medicare SNPs in 2007.
- Challenges of Eligibility and Enrollment - Plans are
facing a number of challenges and opportunities with respect to
eligibility and enrollment. During this session, plans will
focus on dealing with CMS’s extensive requirements around
enrollment processing and eligibility issues.
- Documents, Tools, and Processes - ACAP SNP plans face
many of the same regulatory requirements and must expend time
and resources to identify, track and meet these requirements.
Plans will discuss the tools and processes they have developed
to meet these requirements, and identify ways ACAP can
facilitate the sharing of documents and tools that are common
among all plans.
- Beyond Dual SNPs: Growth Through Chronic Care SNPs,
Straight MA Plans, and Other Opportunities - As plans begin
2007 and look to 2008 and beyond, all ACAP plans are considering
opportunities for growth, and many plans are looking at chronic
care SNPs and straight MA plans as opportunities to serve other
vulnerable populations by leveraging the skills and competencies
plans have developed. Plans will discuss their views on the
opportunities and the challenges of expanding into these
markets.
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PUBLIC POLICY AND ADVOCACY |
President’s Budget
Proposals Unveiled
ACAP’s Fly-In was particularly timely as President Bush issued his
FY2008 budget proposal on Monday. The budget provides $2.9 trillion
in government spending, would seek to balance the budget by 2012 and
would increase billions of dollars of funding for national security
and homeland defense while cutting funding for many social programs,
including Medicare and Medicaid. On Medicare, although the Medicare
Advantage program was largely unscathed, the Administration proposed
to cut more than $76 billion over five years. Among the numerous
proposals in Medicare, the Administration proposes $41 billion in
cuts to hospitals, skilled nursing facilities, inpatient rehab
facilities, hospices and home health agencies. President Bush’s
budget also proposed a 4-year phase-out of Medicare bad debt
payments, means-testing for Medicare Part D premiums, and
eliminating annual indexing of income-related Part B premiums. The
Administration also proposes a net cut in Medicaid and SCHIP of
$19.8 billion over five years. In the Medicaid program, the
Administration proposes streamlining Administrative match rates,
eliminating Medicaid graduate medical education, allowing states to
use private-sector-type formularies in controlling prescription drug
use, and reimbursing targeted case management at 50%. On SCHIP, the
Administration supports reauthorization of the program, but would
seek to “restore SCHIP to its original purpose” – covering
low-income children. Therefore, the Administration proposes
limiting the SCHIP match rates only to those children under 200% of
the Federal poverty level. In addition, critics say that the
funding level provided by the Administration budget would not fully
fund kids currently covered by the program and certainly would not
provide funding for children that are eligible, but not enrolled.
The budget was almost immediately dismissed by Democrats on Capitol
Hill who have their own approach to funding the Federal budget and
getting to a balanced budget in five years. While the
Administration would reauthorize expiring tax cuts, most Democrats
would allow those cuts to lapse and use the funds to help fund
priorities and balance the budget. In addition, Democrats were
stating that cuts in Medicare and Medicaid weren’t going to happen.
“The President calls for nearly $2 trillion in tax cuts, so in the
name of balancing the budget by 2012, he hits domestic priorities
such as health care, education, and the environment,” said House
Budget Committee Chairman John Spratt of South Carolina. “The Bush
budget calls for $252 billion in Medicare cost reduction over 10
years without reinvesting those savings in Medicare program
improvements, plus $25.7 billion in legislated Medicaid cost
reductions; and provides less than needed to renew the Children’s
Health Insurance Program so that it continues to insure the number
of kids now covered.” Senate Budget Committee Chair Kent Conrad
echoed Spratt’s sentiments: “The President has…missed an historic
opportunity to reach out to Democrats and work with a new Congress
to address the nation’s long-term fiscal problems. Our long-term
imbalance has significantly worsened since President Bush took
office, yet his budget offers no credible options for putting us
back on a sustainable path. The President has chosen again to reject
compromise and stay the course.”
On February 7th, Senate Finance Committee Chair Max Baucus issued a
list of priorities that he will follow in reauthorizing the SCHIP
program. In identifying his priorities, he said, “We must give CHIP
enough money to maintain coverage for those whom it already
serves. We must work to reach the six million uninsured children
now left behind — those who are eligible for CHIP or Medicaid but
not enrolled. We must support state efforts to use CHIP to cover
more children. We must improve the quality of health care under
CHIP. And we must not increase the number of Americans without
health insurance.” Baucus has identified the reauthorization of the
SCHIP program as the top health priority of his Committee.
The ACAP Policy Roundtable will discuss the budget document on its
call on February 27.
ACAP Delivers Welcome
Packets to 110th Congress
ACAP, with the help of the NACHC interns, delivered a welcome packet
- 235 in total – to every Senator and Member of Congress in each of
the eighteen states housing at least one ACAP member plan. The ACAP
packets congratulated the legislators on starting a new legislative
session, and expressed ACAP’s willingness to work with each of them
throughout the 110th Congress.
The informational folders included a personalized letter from Meg
Murray indicating the specific names of the ACAP plans in each
Congressperson’s or Senator’s state. The folders also included a new
brief on Medicaid managed care basics, a short description of each
of the issues ACAP will include in its legislative agenda, and a
full list of all ACAP member plans and of ACAP’s publications.
ACAP members are urged to build on this message with welcome letters
of their own, and are encouraged to use the ACAP template if they
choose to do so.
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.
Senate Finance
Committee Holds First SCHIP Reauthorization Hearing, Debates
Coverage of Adults
The Senate Finance Committee on February 1 held the first hearing
focused on reauthorization of the State Children’s Health Insurance
Program (SCHIP) in the new Congress, inviting a Maryland family to
testify, along with Governor Sonny Perdue of Georgia, Kathryn Allen,
Director of Health Care at the GAO, Cindy Mann, SCHIP expert and
Executive Director of the Center for Children and Families at
Georgetown University Health Policy Institute, and Anita Smith,
Chief Bureau of Medical Supports within the Iowa Department of Human
Services.
According to news sources, coverage of adults by some states –
including parents and guardians as well as childless adults – was
heavily criticized by some Committee members, but lauded as
beneficial for children and communities by others. Division of
opinion on coverage of adults tended to follow party line, with
Republicans speaking out against the practice. Some Democrats,
notably Senate Finance Chairman Max Baucus, felt otherwise. Baucus
repeated the sentiments of former Centers for Medicare and Medicaid
Services (CMS) Administrator that existing data shows that "covering
parents in CHIP actually increases access. And he [McClellan] said
that it helped retain children in CHIP programs.”
The cost of reauthorization of the SCHIP program varies depending on
the source of the estimate and the programmatic elements included
the particular conceptualization of reauthorization. Noted above,
the President’s budget estimates reauthorization to cost
approximately $30 billion over five years ($5 billion per year
baseline, plus an extra $5 billion over five years), but ratchets
coverage of children back to 200 percent of the federal poverty
level. (Sixteen states currently are approved by CMS to cover
children with incomes above 200 percent of the federal poverty
level.) It is estimated that maintenance of all currently covered
kids will cost $12 billion to $15 billion in new money, in addition
to the $25 billion baseline. Other groups, including some policy
analysts and child advocates, indicate that $60 billion in new
dollars plus the $25 baseline over five years will provide
sufficient funding to cover all currently-enrolled children, plus
all children who are eligible but not enrolled, legal immigrant
children, and additional expansion populations.
Georgia Republican Governor Perdue’s state covers children only up
to 200 percent of the federal poverty level and does not cover
adults with the SCHIP program. The Governor testified in favor of
coverage of more children rather than adults, and suggested that the
federal funding formula was partly at fault, leaving some states
with excess funding to be spent on expansion populations, while
others struggle to cover only very low-income children.
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EXCELLENCE AND ACCOUNTABILITY |
Recap: Chief Financial
Officers Roundtable
ACAP CFOs had their first roundtable of the year on February 1. On
this call, CFOs discussed how they defined administrative versus
medical expenses. CFOs followed the statutory guidelines required by
either their state Medicaid agencies and/or their insurance
departments. Of the plans on the call, NY and MA required plans to
count all medical management as administrative expenses, but other
states, such as WA and RI provided greater flexibility. WA is
similar to NY and MA except that some limited quality improvement
initiatives can be counted as a medical expense. The next CFO
roundtable is on May 17.
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: Chief Medical
Officers Roundtable
ACAP CMOs held their first roundtable of the year on February 8. On
this call, CMOs discussed pay for performance and incentive programs
tried in the past, successes and challenges of those programs, and
new initiatives plans have heard about but wanted more information
on. Several ACAP plans had programs in place for years and have had
varying degrees of success in terms of improved HEDIS scores.
Generally those programs that are more narrow in scope (focusing on
five or few measures at a time) seemed to be most effective.
Materials posted on the CMO section of the website included a
summary of pay for performance initiatives tried by ACAP plans
and/or the states they do business in. The next CMO roundtable is on
May 24.
Reminder: Chief
Information Officers Roundtable
The next Chief Information Officers Roundtable is Thursday, February
15 at 3 pm eastern time. An agenda and materials will be distributed
prior to the call.
Reminder: Pharmacy
Directors Roundtable
The next Pharmacy Directors Roundtable is Thursday, February 22 at 3
pm eastern time. An agenda and materials will be distributed prior
to the call.
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NEWSFLASH |
ACAP’s Hill Lobbying
Noted by Capital Hill Newspaper
According to “The Hill,” a bipartisan newspaper devoted to the
doings of Capital Hill, ACAP plans are lobbying hard on behalf of
SCHIP reauthorization. “Those with the greatest interest in the
outcome of the SCHIP debate are relatively small, not-for-profit,
local and regional health-insurance businesses. A seven-year-old
trade group called the Association for Community Affiliated Plans
(ACAP) represents the SCHIP health insurers in Washington. Community
health centers, public hospitals or local communities typically own
the plans, ACAP’s executive director, Margaret Murray, said.
Although ACAP’s member companies would be the most directly affected
private-sector interest, the group lacks the clout to exert its
agenda on its own.”
Bob Thompson, CEO of the Monroe Plan and Vice-Chair of ACAP is
quoted as saying, “ACAP doesn’t see itself as the driver. It sees
itself as part of the train.”
ACAP seeks, at a minimum, to maintain the current level of coverage
under SCHIP, but would prefer to see the program expanded to include
not only children who are already eligible but not enrolled, but
also children from higher-income families than SCHIP currently
covers, Thompson said. For their agenda to be successful, Thompson
said, the SCHIP health plans must rely on the efforts of other
lobbying organizations.
CareSource Reaches Half
a Million in Membership
CareSource recently celebrated reaching its half million membership
milestone. In January CareSource received approval from the Ohio
Department of Insurance to expand its service area statewide to
offer Medicaid managed care to both the Covered Families and
Children, and Aged, Blind and Disabled populations. CareSource, the
largest HMO in Ohio, attributes its impressive growth to its
commitment to customer service for both members and providers. The
health plan covers all state-required services and offers other
benefits such as a 24-hour nurse advice line, transportation to
doctor’s appointments, and case management for members. Pam Morris
commented on the expansion, “This remarkable success is the result
of our partnership with providers and the State of Ohio to make
quality healthcare available to underserved populations. CareSource
has been at the forefront of providing Medicaid managed health care
for nearly 18 years, and we could not have reached this milestone
without the daily commitment of our employees to CareSource’s
mission.”
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Upcoming Events |
February Events
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