operating n<strong>on</strong>-PACE, capitated MLTC programs as of October 2010, with aggregate enrollment of over400,000. Some of these programs encompass <strong>on</strong>ly l<strong>on</strong>g-term services and supports, but others includeacute medical care as well. Most include <strong>on</strong>ly <strong>Medicaid</strong> services, but programs in three states alsoinclude Medicare services. <strong>State</strong>s highlighted numerous operati<strong>on</strong>al challenges associated with MLTCprograms, such as c<strong>on</strong>tracting with Medicare Advantage Special Needs Plans, coordinating with physicalhealth MCOs, slow enrollment growth, and plan difficulty c<strong>on</strong>tracting with Boarding Homes.Half the states reported enrollment of dual eligibles in (n<strong>on</strong>-PACE) <strong>Medicaid</strong> managed carearrangements, <strong>on</strong> either a voluntary or mandatory basis. Overall, 25 states reported that they enrolldual eligibles in some kind of n<strong>on</strong>-PACE <strong>Medicaid</strong> managed care arrangement, <strong>on</strong> either a voluntary or amandatory basis. In some states, dual eligibles are enrolled in comprehensive managed care; in others,dual eligibles may be enrolled in n<strong>on</strong>-comprehensive PHPs for specific categories of services, but remainin fee-for-service or in other managed care arrangements for all other <strong>Medicaid</strong>-covered services.In many states, broader efforts focused <strong>on</strong> dual eligibles are expanding or getting underway. Twenty<strong>on</strong>estates reported <strong>on</strong> plans to expand or modify current programs or initiate new programs focused <strong>on</strong>dual eligibles, including 15 states that received grant funding under the ACA initiative, “<strong>State</strong>Dem<strong>on</strong>strati<strong>on</strong>s to Integrate <strong>Care</strong> for Dual Eligible Individuals,” administered by the new Medicare-<strong>Medicaid</strong> Coordinati<strong>on</strong> Office in CMS, to design new approaches to better coordinate care for dualeligibles and integrate Medicare and <strong>Medicaid</strong> financing. Twenty-<strong>on</strong>e states reported that they c<strong>on</strong>tractwith Medicare Advantage Special Needs Plans to provide care for dual eligibles.<strong>Medicaid</strong> managed care and health reform<strong>State</strong>s expect to rely increasingly <strong>on</strong> managed care in the near term. C<strong>on</strong>tinued budget pressures andinterest in improving service delivery and payment systems are fueling plans in many states to expandthe use of managed care in <strong>Medicaid</strong>, including mandatory managed care for additi<strong>on</strong>al <strong>Medicaid</strong>populati<strong>on</strong>s and in new geographic areas.Severe budget pressures remain a key challenge for states, and new demands associated with healthreform also emerge as issues. The lingering effects of the recessi<strong>on</strong> – reduced tax revenues, highunemployment, and high demand for <strong>Medicaid</strong> and other human services – all c<strong>on</strong>tinue to generateintense pressure <strong>on</strong> states already struggling to meet competing needs with limited resources. <strong>State</strong>scited additi<strong>on</strong>al challenges stemming from health reform, in particular, increased <strong>Medicaid</strong> enrollment,adequacy of provider networks, Exchange development, and development of systems for claiming theproper federal matching rate. Some states also cited a need for more flexibility to integrate care for dualeligibles. More general pressures, including required implementati<strong>on</strong> of new procedure codes (ICD-10)and strains <strong>on</strong> state administrative capacity, were raised as well.Key health reform implicati<strong>on</strong>s for <strong>Medicaid</strong> managed care are yet to come into focus in many states.A little over half the states with MCOs (20) reported that their plans had or could develop sufficientnetwork capacity to handle increased <strong>Medicaid</strong> enrollment expected under health reform, while <strong>on</strong>estate said its plans could not. Nine states reported that they did not know whether or not their MCOscould develop the capacity, and six states did not resp<strong>on</strong>d to this questi<strong>on</strong>. Uncertainty was widerregarding <strong>Medicaid</strong> MCOs’ interest in becoming Exchange plans, and especially c<strong>on</strong>cerning stateintenti<strong>on</strong>s to require <strong>Medicaid</strong> MCOs to participate in the Exchanges or Exchange plans to participate in<strong>Medicaid</strong>. The widespread uncertainty may be an indicati<strong>on</strong> that more immediate issues and pressuresstill eclipse health reform in many <strong>Medicaid</strong> programs.6 00
C<strong>on</strong>clusi<strong>on</strong>For over 30 years, state <strong>Medicaid</strong> programs have relied increasingly <strong>on</strong> managed care. The number andtype of managed care arrangements used by states to deliver and finance care for <strong>Medicaid</strong> enrollees, aswell as the number and share of <strong>Medicaid</strong> beneficiaries enrolled in these arrangements, have grownsteadily. Growth in <strong>Medicaid</strong> managed care is expected to c<strong>on</strong>tinue, driven by budget pressures toc<strong>on</strong>tain <strong>Medicaid</strong> spending and by the influx of milli<strong>on</strong>s of new adult <strong>Medicaid</strong> enrollees when the ACAtakes full effect in 2014. As individual states look for new ways to improve health care quality, improveaccess, and achiever greater value for state dollars, there is much to be learned from the wide andevolving variety of <strong>Medicaid</strong> managed care program designs and experiences that can be found acrossthe country.This survey documents the diversity in current state <strong>Medicaid</strong> managed care approaches and activity,and state policymakers’ perspectives <strong>on</strong> the value of managed care as a strategy to improve access,quality, and accountability, and to promote cost-effective care and better health outcomes. As such, itprovides a baseline against which to measure and m<strong>on</strong>itor what are likely to be importantdevelopments and trends in the coming years. However, an assessment of the impact of <strong>Medicaid</strong>managed care was bey<strong>on</strong>d the scope of this project, which surveyed state policy officials al<strong>on</strong>e andgathered largely descriptive informati<strong>on</strong>. Robust evaluati<strong>on</strong>s of <strong>Medicaid</strong> managed care will requireextensive analyses that include investigati<strong>on</strong>s of beneficiary and provider experiences and perspectives,as well. Particularly as states expand managed care to <strong>Medicaid</strong> beneficiaries with more complex needs,and as they determine the delivery systems that will serve milli<strong>on</strong>s more low-income Americans,evaluative research is crucial, as are federal and state efforts to assess performance, to developmechanisms to identify and resolve problems in meeting beneficiaries’ needs, and to assure high qualitycare for all those served by <strong>Medicaid</strong> through managed care.7
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- Page 5 and 6: Table of ContentsExecutive Summary
- Page 7 and 8: EXECUTIVE SUMMARYMedicaid, the publ
- Page 9 and 10: party enrollment brokers to provide
- Page 11: HEDIS©, CAHPS©, and state-specifi
- Page 16 and 17: from the recession and the slow rec
- Page 18 and 19: A note on Medicaid managed care ter
- Page 20 and 21: Managed caremodelTable 1: Medicaid
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- Page 25 and 26: States with Medicaid MCOsKey Sectio
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- Page 29 and 30: excess of a specified threshold for
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- Page 35 and 36: eported that they limit PCP panel s
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- Page 41 and 42: seven states required 10 measures o
- Page 43 and 44: CAHPS© surveys. North Carolina is
- Page 45 and 46: Special initiatives to improve qual
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- Page 51 and 52: (e.g., need to credential Adult <st
- Page 53 and 54: In many states, broader efforts foc
- Page 55 and 56: Looking ahead: Medicaid managed car
- Page 57 and 58: ConclusionFor over 30 years, state
- Page 59 and 60: APPENDIX 2: Summary of Medicaid Man
- Page 61 and 62: Program Name(e.g., Popular Name, 19
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APPENDIX 3: MCO Contracts, Plan Cha
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State(No. ofcontracts)NameEnrollmen
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State(No. ofcontracts)NameEnrollmen
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APPENDIX 5: MCO Capitation Rate-Set
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APPENDIX 7: MCO Network Adequacy Re
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State Primary Care Obstetric Care S
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APPENDIX 9: Providers Recognized as
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APPENDIX 11: PCCM Administrative Se
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APPENDIX 13: Initiatives to Improve
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I. MANAGED CARE OVERVIEW1. Total Ma
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4. Enrollment Requirements.a. We ar
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ii. Please indicate whether the fac
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c. Required Providers: We are inter
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IV. NON-COMPREHENSIVE PREPAID HEALT
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. Does your state use CAHPS© surve
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VI. SPECIAL INITIATIVESAll states s
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Appendix I: Managed Care Contracts1
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Appendix II: Clinical Quality Perfo
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