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HMA Insights: Your source for healthcare news, ideas and analysis.

HMA Insights – including our new podcast – puts the vast depth of HMA’s expertise at your fingertips, helping you stay informed about the latest healthcare trends and topics. Below, you can easily search based on your topic of interest to find useful information from our podcast, blogs, webinars, case studies, reports and more.

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Brief & Report

HMA’s Breslin Authors Primer on Medicaid Managed Care Capitation Rates

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HMA Senior Consultant Ellen Breslin prepared the recently released “Primer on Medicaid Managed Care Capitation Rates: Understanding How MassHealth Pays MCOs” for the Massachusetts Medicaid Policy Institute. It includes:

  • An explanation of how state Medicaid programs generally pay their managed care organizations (MCOs)
  • The overall process for setting Medicaid managed care capitation rates; and
  • The various tools states use to mitigate the risks that MCOs face when they assume financial responsibility for Medicaid members.
Brief & Report

A Primer on Medicaid Managed Care Capitation Rates: Understanding How MassHealth Pays MCOs

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HMA Senior Consultant Ellen Breslin prepared this recently released primer for the Massachusetts Medicaid Policy Institute. It includes:

  • An explanation of how state Medicaid programs generally pay their managed care organizations (MCOs)
  • The overall process for setting Medicaid managed care capitation rates; and
  • The various tools states use to mitigate the risks that MCOs face when they assume financial responsibility for Medicaid members.
Brief & Report

Annual Survey Finds ACA Drove Record Annual Increases in Enrollment, Total Medicaid Spending

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The Affordable Care Act’s Medicaid expansion resulted in record increases in Medicaid enrollment and spending nationally in fiscal year 2015, with both rising an average of nearly 14 percent. This is just one finding in the 15th annual 50-state Medicaid budget survey by the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured.

Released Oct. 15, this report provides an in-depth examination of the changes taking place in state Medicaid programs across the country. Health Management Associates conducted the survey of Medicaid directors across the country. The survey shows big differences across states driven largely by the states’ decisions on the Medicaid expansion and also provides an examination of state Medicaid policy and program changes across the country.

HMA Managing Principals Vernon K. Smith, Kathleen Gifford and Eileen Ellis authored the report along with Robin Rudowitz, Laura Snyder and Elizabeth Hinton of the Kaiser Family Foundation.

Two additional issue briefs were developed as well:

Medicaid Enrollment & Spending Growth: FY 2015 & 2016, which provides an analysis of national trends in Medicaid enrollment and spending.

Putting Medicaid in the Larger Budget Context: An In-Depth Look at Three States in FY 2015 and 2016, a collection of three case studies of Medicaid programs in Alaska, California and Tennessee.

Brief & Report

Medicaid Enrollment & Spending Growth: FY 2015 & 2016

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This issue brief was released Oct. 15 by the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured (KCMU) in conjunction with its 15th annual budget survey of Medicaid officials, “Medicaid Reforms to Expand Coverage, Control Costs and Improve Care: Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2015 and 2016.”

HMA Managing Principal Vernon K. Smith and Robin Rudowitz and Laura Snyder of the Kaiser Family Foundation authored this brief.

Executive Summary

Beginning in Fiscal Year (FY) 2014, policy changes introduced by the Affordable Care Act (ACA) have been driving Medicaid enrollment and spending growth. This report provides an overview of Medicaid enrollment and spending growth with a focus on state FY 2015 and state FY 2016. Findings are based on interviews and data provided by state Medicaid directors as part of the 15th annual survey of Medicaid directors in all 50 states and the District of Columbia conducted by the Kaiser Commission on Medicaid and the Uninsured (KCMU) and Health Management Associates (HMA). Information collected in the survey on policy actions taken during FY 2015 and FY 2016 can be found in the companion report. Key findings related to Medicaid enrollment and spending growth are described in this report.

Brief & Report

Putting Medicaid in the Larger Budget Context: An In-Depth Look at Three States in FY 2015 and 2016

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This issue brief was released Oct. 15 by the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured (KCMU) in conjunction with its 15th annual budget survey of Medicaid officials, “Medicaid Reforms to Expand Coverage, Control Costs and Improve Care: Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2015 and 2016.”

HMA Managing Principal Kathleen Gifford, Principal Barbara Edwards and Senior Consultant Jenna Walls authored this brief with Laura Snyder and Elizabeth Hinton of the Kaiser Family Foundation.

The years 2015 and 2016 continue a period of significant change and transformation for Medicaid programs. With slow but steady improvements in the economy following the Great Recession, Medicaid programs across the country were focused on implementing a myriad of changes included in the Affordable Care Act (ACA), pursuing innovative delivery and payment system reforms with the goals of assuring access, improving quality and achieving budget certainty, and continuing to administer this increasingly complex program.

However, these changes to Medicaid policy take place in the larger context of states budgets. Unlike the Federal government, states generally have balanced budget requirements, taking into account the amount of revenue coming in from a state’s own resources as well as federal revenues. State lawmakers must balance competing priorities across budget expenditure categories. Even in years of economic growth, state lawmakers face this pressure of balancing priorities.

This report provides an in-depth examination of Medicaid program changes in the larger context of state budgets in three states:

  • Alaska
  • California
  • Tennessee
Brief & Report

Michigan Medicaid Managed Care Results Announced

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In previous editions of The Michigan Update (most recently in August) we have reported on the Michigan Department of Health and Human Services’ (MDHHS) release of a Request for Proposals (RFP) to re-procure its Medicaid managed care contracts. The RFP was released in early May with bidder responses due in early August. This procurement is for at least five years, with the possibility of up to three one-year extensions. The total cost of the procurement for five years is estimated to be $35 billion. On October 13, 2015 the State of Michigan announced the much anticipated results of the re-procurement.
 
Since the prices paid to the contracted HMOs are set by the state, the health plan selection was based solely on technical scores. The HMOs were required to bid on entire regions, which were configured differently than in the past. The reconfiguration required a number of the HMOs to expand their service areas to meet the “entire region” requirement. The new regional configuration appears in the map below:
Note: Region 2 and Region 3 were required to be bid together.

The RFP included a proposed number of HMOs that would be awarded contracts for each of these regions. To minimize disruptions for Medicaid enrollees, in each region (other than the Upper Peninsula) the number of plans selected was one more than the proposed maximum number of awards for that region. Proposals from the HMOs were evaluated based on demonstrated competencies and also statements of their proposed approaches to many new initiatives related to population health, care management, behavioral health integration, patient-centered medical homes, health information technology and payment reform.

Not every HMO was successful in each region for which it submitted a bid. Two plans were not successful in any region. One is Sparrow PHP, which is an incumbent plan in Region 7. The other is MI Complete Health (Centene/Fidelis SecureCare) which is not currently a Medicaid plan in any part of the state but does have an Integrated Care Organization contract to serve dual Medicare/Medicaid enrollees in Macomb and Wayne counties as part of Michigan’s dual eligible demonstration.

The following table indicates the regions for which each bidding HMO was and was not successful. In addition, the numerical values show the rank of that plan based on their evaluation scores among the successful bidders for each region. If an HMO is a current contractor for all counties in a region, their result is shaded green. If the HMO is a current contractor for some but not all counties in a region, their result is shaded yellow. The number of Medicaid enrollees currently served in each of the regions, eligible through both “traditional” Medicaid and the Healthy Michigan Plan, appear in the bottom row on the table; across all regions, this is more than 1.6 million Medicaid enrollees.

Technical Evaluation Results

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Brief & Report

HMA Principals Designated NCQA PCMH Certified Content Experts

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HMA Principals Lori Weiselberg and Lynn Dierker recently achieved the National Committee for Quality Assurance’s (NCQA) Patient-Centered Medical Home Certified Content Expert™ (PCMH CCE™) status.

NCQA is a private, 501(c)(3) not-for-profit organization dedicated to improving health care quality. Its certified content experts are required to complete two NCQA educational seminars, pass a comprehensive exam and commit to continuous learning and recertification to maintain the credential.

HMA’s team of NCQA Patient-Centered Medical Home Certified Content Experts™ includes Principal Linda Follenweider and Senior Consultants Melissa Corrado and Jodi Bitterman. HMA has deep PCMH experience and expertise — we’re ready to help your team.

Brief & Report

HMA’s Edwards Co-authors Health Affairs MLTSS Policy Brief

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HMA Principal Barbara Edwards is co-author of the Health Affairs health policy brief “Rebalancing Medicaid Long-Term Services and Supports.” The brief examines Medicaid’s support of more flexible community-based long-term services and supports, including what’s at issue, the current debate and what’s next.

Brief & Report

Total Cost of Care Regional Initiative Phase 1 Evaluation Complete

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With support from the Robert Wood Johnson Foundation (RWJF), Health Management Associates (HMA) recently conducted a qualitative evaluation of Phase 1 of the RWJF Total Cost of Care and Resource Use (TCOC) pilot. The TCOC framework, developed by HealthPartners and endorsed by the National Quality Forum (NQF), is an analytical tool that measures cost and resource use for virtually all care used by individuals. According to HealthPartners, TCOC is designed to “support affordability initiatives, to identify instances of overuse and inefficiency, and to highlight cost-saving opportunities.”

In 2013 the RWJF funded five regional health care improvement collaboratives (RHICs) to measure TCOC using multi-payer commercial data, engage stakeholders, publicly report the measures associated with primary care physician practices or groups by December 2014, and work collaboratively with each other. RWJF also funded the Network for Regional Healthcare Improvement (NRHI) to lead and coordinate this effort to test a standardized TCOC approach in multiple regions and establish national benchmarks for cross-regional analysis.

The initial 18-month grants (11/1/2013 – 4/30/2015) constituted Phase 1 of the pilot; in spring 2015, RWJF awarded these grantees and up to three additional regions Phase 2 funding to continue and expand their efforts. The objectives of HMA’s evaluation were to assess the RHICs’ early experiences with a collaborative approach to a standardized TCOC framework, and to identify promising practices and critical lessons for other community collaboratives, policymakers, funders, and stakeholders.

To learn about the key accomplishments, challenges and other lessons learned, download the complete report below.

Brief & Report

KCMU Issue Brief Profiles Newer Programs in Medicaid Health Homes

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HMA Managing Principal Mike Nardone and Julia Paradise authored the recently released issue brief, “Medicaid Health Homes: A Profile of Newer Programs” for the Kaiser Commission on Medicaid and the Uninsured (KCMU).

The Affordable Care Act (ACA) established a new state option in the Medicaid program to implement “health homes” for individuals with chronic conditions, giving states a new tool to develop models of care designed to improve care coordination and reduce costs for high-need populations. In August 2012, the KCMU issued a brief examining the first six health home programs. This update profiles health home programs in the nine states that have taken up the option in the intervening two years – Alabama, Idaho, Maine, Maryland, Ohio, South Dakota, Washington, Wisconsin, and Vermont.

States have implemented health home programs in a variety of ways, reflecting different targeting priorities, underlying delivery and payment systems, and visions of delivery system reform, as well as other state-level factors. This issue brief identified both themes and diversity in the more recent health home programs in a number areas, including geographic scope, target population, health home providers, payment, fee for service versus managed care, and HIT.

Brief & Report

Kaiser Releases Medicaid, CHIP Enrollment Snapshot Reports

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On June 3, the Kaiser Commission on Medicaid and the Uninsured released its “Medicaid Enrollment Snapshot: December 2013” issue brief.

Authored by Kaiser’s Laura Snyder and Robin Rudowitz and HMA’s Eileen Ellis and Dennis Roberts, the report indicates that as of December 2013, nearly 55.4 million people were enrolled in Medicaid. That’s an increase of 585,000 enrollees from the prior year, but the slowest growth since before the Great Recession.

The report examines changes in monthly Medicaid enrollment from December 2012 to December 2013 and the factors that influenced those changes in a variety of ways. Factors of particular note include:

  • Continued improvement in economic conditions resulted in slower Medicaid enrollment growth.
  • Early expansion of Medicaid in some states, as well as successful outreach and enrollment efforts for new Marketplaces pushed enrollment up in some states.
  • Problems implementing new enrollment systems for the Federally Facilitated Marketplace (FFM) and State Based Marketplaces (SBM) put downward pressure on Medicaid enrollment growth.

Click here to access the report.

The Commission also released its “CHIP Enrollment Snapshot: December 2013” issue brief.

Authored by HMA’s Vern Smith and Kaiser’s Laura Snyder and Robin Rudowitz, the report shows nearly 5.8 million children were enrolled in the Children’s Health Insurance Program (CHIP) in December 2013. That represents a 3.1 percent increase from 2012.

This report examines changes in monthly CHIP enrollment between December 2012 and December 2013. Some findings of interest include:

  • Continued improvement in economic conditions likely resulted in both some growth as children shifted from Medicaid to CHIP and some declines as family incomes continued to increase above CHIP eligibility levels.
  • Successful outreach and enrollment efforts for new Marketplaces likely pushed enrollment up in some states.
  • Problems implementing new enrollment systems for the Federally Facilitated Marketplace (FFM) and State Based Marketplaces (SBM) likely put downward pressure on CHIP enrollment growth.

Click here to access the report.

 
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Aetna Better Health
(CoventryCares)
 
 
 
 
No
 
 
Yes – 4
Yes – 4
Yes – 7
Blue Cross Complete
 
 
 
Yes – 3
 
Yes – 5
Yes – 3
 
Yes – 3
Yes – 5
HAP Midwest Health Plan
 
 
 
 
 
Yes – 6
 
 
No
No
Harbor Health
Plan
 
 
 
 
 
 
 
 
 
Yes – 8
McLaren Health
Plan
 
Yes – 3
Yes – 3
Yes – 4
Yes – 3
Yes – 3
Yes – 2
Yes – 3
Yes – 6
Yes – 4
Meridian Health Plan of MI
 
Yes – 1
Yes – 4
Yes – 5
Yes – 2
Yes – 4
No
Yes – 5
Yes – 5
Yes – 3
MI Complete Health
(Centene/Fidelis)
 
 
 
 
 
 
 
 
No
No
Molina Healthcare
of MI
 
Yes – 4
Yes – 1
Yes – 1
Yes – 1
Yes – 2
Yes – 1
Yes – 1
Yes – 1
Yes – 2
Priority Health Choice
 
No
No