Legislative Update
After seven months of discussion, debate, and delay, the United
States House of Representatives and Senate are poised to pass their
versions of legislation reauthorizing the State Children’s Health
Insurance Program. Although radically different in scope and cost,
these bills represent a clear victory for Congressional Democrats
who placed SCHIP reauthorization as a top legislative priority for
the 110th Congress and are fighting low public approval ratings and
media characterizations of a “do-nothing Congress.” This pressure
on Democrats to pass the legislation before the August recess has
been met with strong opposition from many Republicans in the House
and Senate who are complaining that the legislation is too broad,
expands coverage to too many new people, and amounts to, in their
own words, “Hillary-care.” Although the bills hadn’t passed either
body as of press time, it seems as if both bills would pass, with
the next step moving to the House/Senate conference negotiations.
The House and Senate take widely varying approaches to their bills.
The Senate’s is a relatively minimalist bill, reauthorizing the
program for an additional $35 billion over five years, limiting
coverage for adults and for those with higher incomes, and including
some other good, but not particularly controversial issues. The
Senate pays for this package with a $.61 increase in the tobacco
tax. By contrast, the House of Representatives package is a $90B
over 5 year package which includes a $50B over 5 years expansion in
SCHIP, a fix in physician payments under the Medicare fee-schedule,
and makes significant changes in Medicare and Medicaid policy.
The House legislation also reauthorizes the Medicare Advantage
Special Needs Plan (SNP) program for dual eligibles and
institutionalized beneficiaries and establishes new standards
required of SNPs. This package is paid for by, among other things,
a $.45 tobacco tax, the equalization of payment rates between
Medicare Fee-for-Service and Medicare Advantage, and other
provisions such as an additional 7% in the Medicaid drug rebate on
brand name drugs. ACAP has written letters to both the House and
the Senate urging support for their versions of the legislation, but
also expressing concerns about provisions in both bills and asking
these health leaders to work with ACAP in conference to address
these concerns – specifically cuts in Medicare Advantage payments,
standards for SNP plans, and the failure to couple an increase in
the drug rebate with an extension of the rebate to health plans.
Both bills have attracted a Presidential veto, although it is
unclear at this time how many Republicans will join the President to
vote against expanding health care for low-income children.
Unfortunately, although the Stupak/Bingaman Drug Rebate
Equalization Act legislation has been in the play throughout the
SCHIP debate, at the time of this writing, it does not appear that
this ACAP-supported legislation will be included in either package –
thanks in large part to strong sympathies among some Democratic
members that the drug manufacturers will be injured by our
legislation. A last minute effort by ACAP to include the
legislation in the House seemed to have paid off earlier this week –
only to find that the provision was stripped out at the last
minute! The House SCHIP legislation also seems to have been amended
to increase the Medicaid drug rebate from 20% to 22% from the
Committee mark, thus seriously threatening health plans by making it
more financially attractive to carve Rx from the health plans’
capitation payments (see story on the pending Lewin Report). In the
Senate, Senator Bingaman is intending to offer his amendment to
include the provision in the bill. However, it appears that a solid
majority of Senators are opposing most amendments, and that effort
is likely to fail.
The next step for ACAP to enact the Drug Rebate Equalization Act is
in the conference committee. The House/Senate Conference Committee
is the place where negotiators from the House and Senate work out
differences in the bills and come to a single bill that can be
presented to the President for his signature. ACAP is currently
working on a strategy for our Washington staff, our allies in other
Associations and plans, and ACAP’s own member health plans to raise
awareness of the urgent importance of including the DRE in the
House/Senate conference agreement.
Because the DRE provision is unlikely to be included in either
the House or Senate packages, Safety Net Health Plans can only be
successful in including the DRE in the SCHIP package by using the
August recess to meet with their Representatives and Senators,
contact their staff and tell them the impact that a prescription
drug carve out would have on your ability to manage care for your
Medicaid beneficiaries. ACAP will be seeking input from health
plans about the financial impact they will suffer, along with the
impact on your ability to coordinate care for your neediest of
beneficiaries. Health plans should be prepared for ACAP to be very
active in August and September to try to lift this provision into
the conference. Once the action plan has been distributed, ACAP
members can direct any questions they have to Jenny Babcock or Chris
Koppen.
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.
ACAP Releases Factsheet
on Medicaid and Health Plan Contracting for Behavioral Health
Services: The Role of Carve Outs
The most common conditions seen in Medicaid populations include
Behavioral Health diagnoses. These conditions, as either primary or
secondary diagnoses, are significant causes of morbidity, while
treatment, especially pharmacological management, is a leading cost
driver. The purpose of this factsheet was to review various
carve-out and vendor relationships used by states and Medicaid
managed care plans to deliver behavioral health services to Medicaid
enrollees and to begin to assess the impact of these contracting
strategies on clinical programs and services.
A
survey was developed to ask health plans about Medicaid and health
plan contracting for behavioral health services for the five major
state Medicaid Programs: TANF, SCHIP, Children with Special Health
Care Needs (CSHCN), Supplemental Security Income (SSI), and Medicaid
for adults with disabilities. The survey questions were organized by
categories of care, including: (1) core services; (2) residential
care; (3) intermediate levels of care; (4) provider network
functions; (5) pharmacy; (6) emergency care; (7) home care; and (8)
clinical behavioral health programs.
The survey was sent to 25 health plans, of which 18 responded. To
see the survey results,
click here. Note that a variety of carve-out and vendor
strategies are used in states and health plans to implement the
Medicaid behavioral health benefit. These relationships are listed
in detail for each ACAP health plan to facilitate sharing of best
practices in behavioral health management. Carve-out and vendor
relationships can best be evaluated by considering the extent to
which the contract relationships help a behavioral health program
meet it goals of access, convenience and coordination, clinical
quality improvement, and cost.
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ACAP on Vacation August
6-10, 2007
ACAP Staff will be out on vacation next week. Meg Murray (mmurray@communityplans.net)
will be periodically checking her email for anything major that
arises. The staff will respond to all requests as soon as possible
when staff returns.
Community Partners,
Inc. Wins the Second “Supporting the Safety Net” Award
ACAP announces Community Partners, Inc. of Amherst, Massachusetts as
the recipient of ACAP’s second “Supporting the Safety Net” award.
“We are thrilled to see Community Partners recognized for their
significant contributions to making Massachusetts’ health reform a
reality,” said Christina Severin, Executive Director of Network
Health, the Massachusetts-based health plan that nominated Community
Partners for the ACAP award. “Network Health and Community Partners
share a commitment to making affordable, high-quality health care
accessible to low- and moderate-income residents, and we have been
honored to work with Community Partners to achieve our shared
mission.”
Community Partners has created “one-stop shopping” for outreach
workers by developing and maintaining a comprehensive Web site and
online catalogue of documents, tools, meetings, and information on
publicly funded health programs. In addition, Community Partners has
developed in-person and online forums and other unique services to
promote sharing of information about Massachusetts’ recent landmark
health reform among outreach workers, advocacy groups, government
agencies, and other pertinent parties. Community Partners’ work thus
directly contributes to the goal of health reform — to ensure that
all Massachusetts residents have access to affordable, high-quality
health care.
The replicable and sustained work of Community Partners, Inc. will
be highlighted in a future ACAP staff roundtable for quality
managers and disease management directors of ACAP’s member plans.
"This is an excellent community-based program that reduces the
number of uninsured. ACAP is pleased to recognize the outstanding
work of Community Partners," said Sylvia Kelly, President and CEO of
Community Health Network of Connecticut and the co-chair of ACAP’s
Quality Management committee.
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.
ACAP Hosted Its 5th
Annual CEO Summit on July 24-25
Meg Murray opened the meeting by reflecting that while 40% of all
Medicaid beneficiaries are in managed care, only 16% of the dollars
are in capitated payments. For children, the percentage is higher
with almost 50% of all Medicaid children in managed care and 70% of
all SCHIP children in managed care.
The major themes that emerged from the sessions included:
- Importance of health plan advocacy on issues such as the
Drug Rebate Equalization Act, the SCHIP reauthorization and SNP
reauthorization
- Electronic health records are still evolving as a tool for
the health plans in Medicaid population but are being used more
frequently by the safety net with the help of HRSA
- Many states are considering carving drugs out of the
Medicaid capitation rate as rebates in the FFS realm increase
- States are well served to use Medicaid health plans as
“turnkey” operations when they want to expand health insurance
to low income people
- SNP plans are working out the operational kinks but need to
be vigilant as problems emerge.
Contrary to SCHIP Veto
Threat, Medicaid Health Plans Are Critical to Covering the Uninsured
On July 25 ACAP released a new report which underscores the
important role of Medicaid health plans in states where landmark
health care reform efforts are underway. The report, Medicaid
Health Plans: A Turnkey Solution for Expanding Health Insurance
Coverage for the Uninsured, was written by The Lewin Group and
sponsored by the Association for Community Affiliated Plans (ACAP).
It focuses on health plans in California and Massachusetts – two
states that are breaking new ground in expanding coverage to
uninsured residents and setting an important trend for the rest of
the nation to follow.
Underscoring the White House threat to veto the State Children’s
Health Insurance Program reauthorization bill, Secretary Leavitt
wrote that states should “ensure that their citizens have access to
basic private insurance coverage.” This timely paper demonstrates
that, on the contrary, expansion of Medicaid and SCHIP through
Medicaid health plans is indeed an effective way to cover the
uninsured. Rather than subsidizing the purchase of commercial health
insurance through tax credits or other incentives for low-income
people, states are better served to cover low-income uninsured
individuals by building on a platform of Medicaid managed care plans
already operating in those states.
“States looking to cover low-income uninsured people don’t have to
look too far,” said Margaret Murray, Executive Director of ACAP.
“The Medicaid plans are right in their backyard and ready to work
with the states on the expansion programs.”
The report provides case studies that demonstrate how Massachusetts
and several California counties capitalized on existing Medicaid
health plans as “turnkey” solutions to quickly, efficiently and
economically provide coverage to low- and moderate-income persons.
Specifically, these plans were able to
- Help states implement an expansion quickly
- Leverage existing Safety Net provider relationships
- Build on established operations to serve the health needs
of low-income persons
- Use their experience in outreach and enrollment strategies
- Support continuity of care for persons in different programs
“These plans have a wealth of experience serving the particular
health and social needs of low-income people because they also serve
Medicaid and the State Children’s Health Insurance Program,” said
Darnell Dent, CEO of Community Health Plan in Seattle, Washington
and Chairman of ACAP. “Medicaid health plans are better able to
provide continuity of care – especially to patients who
traditionally churn on and off the Medicaid rolls – as well as more
effectively serve families who have other members on Medicaid.”
The Turnkey report highlights five programs that Medicaid
health plans offer: four “Healthy Kids” programs in diverse
California counties, served by Health Plan of San Mateo, LA Care,
San Francisco Health Plan and Santa Clara Family Health Plan, and
one high profile statewide program – Commonwealth Care, served by
BMC HealthNet Plan, Neighborhood Health Plan and Network Health – in
Massachusetts.
The full report is available at
www.communityplans.net. A recording of an Audio Conference Call
introducing the report and featuring presentations by Darnell Dent,
CEO of Community Health Plan of Washington, and Margaret Murray,
CEO, Association for Community Affiliated Plans is also available.
Affinity Health Plan
Helps Member Receive Heart Transplant
According to an article in the PRWeb on July 27, 2007, Long Island
resident Sylvester Killings, 45, was in dire straights prior to
joining Affinity Health Plan in 2006. Born with rheumatic fever,
Sylvester had long suffered from various ailments which were made
worse by drug and alcohol use. After an accident placed him in the
hospital, he learned his heart condition had worsened and he needed
a heart transplant to live. With no where to turn, Sylvester relied
on Affinity to help him stay sober while keeping him on track to
obtain, and maintain, a new heart.
Sylvester’s story is a testament to Affinity’s Cardiac service
offerings. Unlike most Prepaid Health Services Plans (PHSPs) or
Health Maintenance Organizations (HMOs), Affinity provides a range
of cardiac services including transplant placement and
rehabilitation, largely for underserved populations reliant on
Medicaid.
“I was confused and didn’t know what to do,” said Sylvester, who
joined Affinity Health Plan just a year ago. “Affinity did a great
job. They sent me to a top hospital and got this heart for me.”
“Sylvester truly represents the heart of our membership,” said Maura
Bluestone, President and CEO of Affinity. “We are filled with people
who care about people, and the service Sylvester received is how we
strive to handle all of our Members. We’re proud of the fact we not
only cover major cardiac services, but also work hard to keep
members healthy long after surgery.”
Affinity’s network of providers offer a range of cardiac services
not usually covered by managed care plans. Further, Affinity gives
its Members, traditionally underserved Medicaid recipients, access
to the top hospitals in the New York metro area, including Columbia
Presbyterian Hospital.
Santa Clara County
Children’s Health Initiative Improves Children’s Health
A
recent brief by Mathematica presents findings from a survey of
families with children who are enrolled in the Healthy Kids program
in Santa Clara County, California showing improvements in their
health. Launched in January 2001 by the Santa Clara County
Children’s Health Initiative (CHI), Healthy Kids provides health
insurance coverage to children in the county with household incomes
up to 300 percent of the federal poverty level ($62,000 for a family
of four) who are ineligible for the two major state insurance
programs, Medi-Cal and Healthy Families. The vast majority of
Healthy Kids children have household incomes below 250 percent of
the federal poverty level, low enough to qualify them for one of the
state programs, but they are ineligible for these programs because
of their immigration status. This brief describes the positive
impact of Healthy Kids on children’s health status, including
perceived health, functional limitations, and school days missed
because of health problems.
Click here to access the brief.
California Budget Delay
and Depletion of Safety Net Fund Result in MCO Payment Cuts
A
$2 billion safety net fund including dollars from the State of
California and the federal government has been exhausted, impacting
Medicaid providers. Depletion of the fund, called the Medical
Providers Interim Fund and intended to help pay Medicaid providers
during difficult budget times, was created in 1998 and allows the
State to continue paying Medicaid providers when there is no state
budget.
California has been without a budget since July 1. Although the
Assembly has approved a spending plan, an impasse has been reached
because Senate Republicans demand additional spending cuts.
As a result, the State has cut a payment to Medicaid managed care
plans from $223 million to $143 million, and Medicaid will not be
able to make an estimated $227 million payment to hospitals and
nursing homes if the Legislature does not pass a budget by Thursday.
New CHCS Brief Outlines
Enrollment Options for Medicaid Managed Care for People with
Disabilities
CHCS published a paper in July 2007 by author John Barth that
describes managed care enrollment options for people with
disabilities, including a new hybrid model – opt-in, opt-out
enrollment – that shows promise in Wisconsin for satisfying
consumers as well as state and MCO partners. The paper is a
technical assistance brief in response to a growing number of states
that are planning, implementing, or expanding Medicaid managed care
programs for people with disabilities. It demonstrates how states
are faced with a wide array of potential options when choosing
program features. One design element that has critical implications
for program success is the enrollment model. Both the voluntary and
mandatory enrollment models offer benefits and drawbacks from the
consumer, state, and MCO perspectives, but states are encouraged to
look beyond these more traditional options. The paper can be
accessed here:
http://www.chcs.org/publications3960/publications_show.htm?doc_id=512076
CHCS has recently produced additional resources addressing providing
Medicaid managed care for complex populations, including defining
best managed care practices for these beneficiaries, such as
developing care management strategies, creating measures to
effectively evaluate programs, and reviewing best practices in
consumer and advocate outreach and engagement. These can be accessed
at
http://www.chcs.org/.

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