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Often overlooked, however, is the heterogeneity of health care needs and spend- ing of the dual eligible population and the potentially different approaches to addressing care delivery and costs for specific subgroups. [...] The rest of the spending went toward Medi- care premiums (9.2 percent), Medicare acute care cost-sharing (14.9 percent), acute care not covered by Medicare (4.7 percent), and pre- scription drugs (1.1 percent).13 INITIATIVES TO INTEGRATE CARE AND FINANCING Some experts have argued that better coordination of care protocols and integration of financing streams for the dual eligible population http:. [...] The Patient Protection and Affordable Care Act (PPACA) required that that the Centers for Medicare & Medicaid Services (CMS) work with states to improve the delivery system and seek ways to lower health care costs for this population. [...] As CMS and the states work to integrate Medicare and Medicaid financing streams and control costs of caring for the dual eligible population as a whole, specific attention may need to focus on the various subpopulations in order to develop care strategies that will target the highest need and highest cost groups. [...] KEY QUESTIONS • What are the various subcategories of dual eligibles? How do their care needs differ, and what care protocols might need to be devel- oped to target services and financing streams efficiently? • What are the respective roles of the federal and state governments in financing the various types of care needed by different subgroups of the dual eligible population? • What barriers exis.
Forum Session Announcement - Targeting High-Cost Medicare Beneficiaries to Improve Care and Reduce Spending: Finding the Bull's-Eye F O R U M S E S S I O N Targeting High-Cost Medicare Beneficiaries to Improve Care and Reduce Spending: Finding the Bull's-EyeMARCH 9, 2012 In 2011, Medicare spent approximately $560 billion to provide health insurance coverage to 49 million elderly and disabled benef. [...] The Patient Protection and Af- fordable Care Act (PPACA), for example, created a new Center for Medicare and Medicaid Innovation (CMMI) at the Centers for Medicare & Medicaid Services (CMS) and provided $10 billion in funding over nine years to conduct an array of demonstrations whose goals are to reduce costs and improve care for Medicare and Medicaid beneficiaries. [...] In the Demonstration of Care Management for High-Cost Beneficiaries, the programs were not allowed to keep the entire fee unless they reduced Medicare spending for their beneficiaries by at least 5 percent, net of the fee. [...] This Forum session described the characteristics and spending pat- terns of high-cost Medicare beneficiaries, examined the track record of targeting within Medicare demonstrations and pilots, and pro- filed the experience of one health system's efforts to target and man- age high-cost Medicare beneficiaries. [...] Randall Brown, PhD, a vice president at Mathematic Policy Research, Inc., and director of health research for the New Jersey office, has participat- ed in the evaluation of several demonstrations/pilots at the Centers for Medicare & Medicaid Services.
While the "duals" represent only 16 percent of the total Medicare population and 18 percent of the total Medicaid popula- tion, they account for almost 25 percent of total Medicare spending and 46 percent of total Medicaid spending.1 The health care status of the dually eligible population is quite diverse; many of these indi- viduals have substantial and costly medical and long-term service and s. [...] The variation in duals' health status can present challenges to providers and poli- cymakers trying to meet their needs and contain costs in both the Medicare and Medicaid programs. [...] Approximately 80 percent of the population qualifies for full Medicaid benefits, including long-term services and supports, and are often referred to as "full duals." The rest of the du- als have slightly higher incomes and qualify only for Medicaid assis- tance with Medicare premiums and cost-sharing. [...] There are duals receiving just Medicaid assistance for Medi- care premiums and cost-sharing, and there are duals receiving the full gamut of acute and long-term care services the two programs have to offer. [...] The benefits and challenges of coordinating care across Medicare and Medicaid providers, including how different program and provider incentives can affect duals' care and costs, will be dis- cussed.
The Massachusetts demonstration, for example, is the only model focused solely on duals under the age of 65, many of whom have behavioral health and substance abuse problems.11 Texas's demonstration will serve adult duals with disabilities who qualify for Supplemental Security Income or Medicaid waiver home- and community-based services.12 Duals in Virginia13 can opt out of the demonstration for b. [...] Each agreement with states choosing the capitated model includes the terms under which anticipated aggregate program savings are deducted up front from both CMS and state payments to health plans.15 In anticipation of greater savings over time, the deduction increases over the three-year life of the demonstration, starting at 1 percent and ending between 2 and 5.5 percent. [...] Illinois plans, for example, will incur deductions of 1, 3, and 5 percent over the three years of the demonstration.16 In addition, all of the states participating in the capitated model withhold a portion of plan payments that are returned if quality metrics are met. [...] Consumer advocacy groups are actively involved in monitoring the implementation of the duals demonstrations, with several providing a steady stream of educational materials for advocates and families.21 In response to early concerns about beneficiary rights, CMS has made funds available to states with approved MOUs to plan and provide ombudsman services for beneficiaries in the demonstration. [...] KEY QUESTIONS • What have been the main implementation challenges faced by CMS and the Medicare-Medicaid Coordination Office in getting the duals demos started? What is the outlook for the future? • What challenges have the states faced? How do these vary by the type of model (capitation or managed fee-for-service) chosen? What other factors at the state level have made it easier or harder for s.
The entity receiving the bundled payment would arrange for the array of services to be provided and would distribute the bundled pay- ment amount among the providers involved in the patient's care.1 The theory underlying bundled payment is that providers would achieve lower costs and better care through improved care coor- dination and more efficient care delivery if payment systems re- ward them. [...] The primary financial incentive for pro- viders under a bundled payment system is to reduce the costs of care provided during the episode because they will keep any dif- ference between the payment and episode costs; conversely, they would be responsible for any costs above the payment amount.2 In general, bundled payment models leave the means of achiev- ing efficiency improvements to the entity. [...] PPACA includes a requirement for the Secretary of the Department of Health and Human Services to conduct a Medicare pilot program to test whether bundling the payments for a hospitalization and sub- sequent post-acute care can "improve the coordination, quality, and efficiency of health care services."5 The law outlines general param- eters of the pilot: for beneficiaries with designated condition. [...] In model 4, the awardee bears full risk for the price of the episode and accepts the negotiated, prospective lump sum payment as payment in full for the episode. [...] KEY QUESTIONS • What are the potential benefits of bundled payment for the Medi- care program? Beneficiaries? Providers? • What services or episodes are suitable for bundling, in terms of defining what belongs in the bundle and the existence of sufficient quality measures and adequate risk adjusters? • What are the limitations of bundling, in terms of its ability to re- duce spending and improve c.
OvervIew With the ever-growing concern about costs in Medicaid and across the health care sector, many state officials and others aim to find savings and deliver more efficient and effective care. [...] What has been the experience among the states with serving this group of vulnerable people through managed care? In what ways are different states approaching this issue? This Forum session will review these questions and address the chal- lenges facing the nation and states in providing efficient and accessible medical care to persons with disabilities through Medicaid managed care arrangements. [...] For example, the estimated average spending on a person eli- gible for Medicaid on the basis of disability status was about $16,600 in fiscal year (FY) 2009, compared with average spending of $2,900 on non-disabled children, and $4,100 on adults without disabilities un- der 65 years of age.1 Expenditures for persons with disabilities under age 65 are the fastest growing segment of Medicaid costs.2. [...] The increasing number of people with chronic conditions and the amount of care needed grows each year; for exam- ple, people with five or more chronic conditions see about 14 physi- cians per year.3 Even if persons with disabilities have a stable chronic condition, they may be more at risk of infection, falls, and other com- plications and difficulties. [...] Speakers will review the background and history of coverage through managed care, studies that have evaluated states' experi- ences with managed care for persons with disabilities, the different types of managed care used by states, and the problems encountered in delivering care in this way.
By December 31, 2006, the Commission must make longer-term recommendations on the future of Medicaid that ensure the long-term sustainability of the program.4 These recommen- dations will presumably include options for modifying the Medicaid benefit standard and loosening the limitations on cost sharing. [...] THE NGA PROPOSAL As part of its mission to represent the interests of the states, the NGA has engaged in the Medicaid debate. [...] Citing the desire to increase Medicaid beneficiaries' account- ability for the cost and utilization of health care, the proposal recom- mends permitting states to impose cost sharing beyond nominal levels for beneficiaries with incomes above the federal poverty level and to make cost-sharing requirements "enforceable."6 Using SCHIP as a model, the NGA proposal suggests a 5 percent cap on the total. [...] These variations from the Medicaid standards acknowledged, in part, the higher incomes of the families that would be the target of the new program (those with incomes up to 200 percent of the FPL). [...] The session will provide insights into the potential implications of these changes for beneficiaries, states, and the federal government in hopes of informing the debate that is under way in the Congress and within the Medicaid Commission.
The President has proposed spending reductions, congressional committees are holding hearings, the Secretary of the Department of Health and Human Services has chartered a reform commission, and the nation's governors have issued a new policy outlining their priorities for Medicaid reform. [...] There are more than 20 federal definitions of disability for deter- mining program eligibility and for use in statistical analysis.4 Thus, projecting the number of people with disabilities and the severity of their condition varies widely depending on the definition used. [...] The speakers will describe the Medicaid beneficiaries who have physical and cognitive impairments, including a discussion of their health needs, the services they receive, and the systems that deliver their care. [...] Throughout the briefing, opportunities to en- hance the understanding of the disabled population and improve the delivery of services will be noted. [...] Tritz worked at the Centers for Medicare & Medicaid and the Wisconsin Department of Health and Family Services, where she developed programs and policies in Medicaid long-term care and return-to-work efforts for adults with disabilities.
The Centers for Medicare & Medicaid Services (CMS) filed the first of its rules implementing the provision in the Federal Reg- ister on August 18, 2011.4 The CMS rule specifies that readmissions for three conditions-acute myocardial infarction, heart failure, and pneumonia-will be subject to the hospital readmissions reduction policy, and it adopted the 30-day interval between discharge and readmi. [...] In such cases, hospitals are to conduct a discharge planning evaluation to assess the likelihood of the patient's need for post-hospital services, availability of those services, and the patient's capacity for self-care or care in the pre-hospital environ- ment. [...] Hospital implementation includes counseling the patient and family member(s) to prepare for post-hospital care; transferring or referring patients, along with appropriate medical records, for follow-up care; and reassessing the discharge planning process and discharge plans to ensure that they meet patients' needs.5 MedPAC has stressed the importance of adequate discharge plan- ning and need for i. [...] In addition to the CCTP, AoA, through its Aging and Disability Resource Centers program, has focused efforts on disseminating effective care transi- tion models for older people and people with disabilities.15 Beyond the federal sector, geriatricians and other health care prac- titioners have developed a number of models over the years to improve care transitions for hospital patients. [...] Carol Levine, direc- tor of the Families and Health Care Project at the United Hospital Fund, will discuss the importance of discharge planning and transi- tion from hospital to home care, and the Fund's program to involve family caregivers in partnerships with health care professionals.