Many state <strong>Medicaid</strong> programs provide 12-m<strong>on</strong>th c<strong>on</strong>tinuous eligibility for children; a much smallernumber guarantee six-m<strong>on</strong>th eligibility for <strong>Medicaid</strong> managed care enrollees. Recognizing that stablecoverage and c<strong>on</strong>tribute to c<strong>on</strong>tinuity of care and the effectiveness of health care, a number of stateshave taken acti<strong>on</strong> to assure <strong>Medicaid</strong> eligibility for specific time periods, particularly for children,thereby reducing coverage disrupti<strong>on</strong>s that can occur when paperwork is late, family income fluctuates,or family compositi<strong>on</strong> changes. A total of 27 states reported that they provided 12-m<strong>on</strong>th c<strong>on</strong>tinuouseligibility for children in FY 2011. Ten states indicated that they had elected the opti<strong>on</strong> to guarantee sixm<strong>on</strong>th<strong>Medicaid</strong> eligibility to managed care enrollees. 6Many states have a 12-m<strong>on</strong>th “lock-in” requirement for <strong>Medicaid</strong> managed care enrollees. Similar tothe way that l<strong>on</strong>ger <strong>Medicaid</strong> eligibility periods support more c<strong>on</strong>tinuous coverage and care forbeneficiaries, “lock-in” policies, which require beneficiaries to remain enrolled in the same MCO orPCCM program for a specified period up to a year, give health plans and PCPs time to make appropriateinvestments in managing enrollees’ care and potentially see some returns in terms of health and/orhealth spending. Typically, <strong>Medicaid</strong> enrollees are free to disenroll and re-enroll in another plan duringthe first 45 or 90 days following their initial enrollment, and the lock-in takes effect after that. In all, 31states reported that they have a lock-in requirement, in most cases, for a 12-m<strong>on</strong>th period.Perceived benefits of managed care are improved access and quality, primarily. <strong>Medicaid</strong> officials wereasked to assess whether managed care in their state advanced a variety of goals ranging from improvingquality, to increasing beneficiary and provider satisfacti<strong>on</strong>, to generating cost savings. The benefit ofmanaged care (relative to fee-for-service) cited most often across all three models of <strong>Medicaid</strong> managedcare was improved access to care. The vast majority of states reported improved access to both primaryand specialty care, and a substantial number indicated that the improvement was significant. Otherbenefits that state officials perceived were improved quality of care, reduced use of emergency rooms,and increased ability of <strong>Medicaid</strong> beneficiaries to navigate the health care system.Over half the states attributed some or significant cost savings to each model of managed care, althoughvery few quantified these savings. A small number of states cited no change or higher costs associatedwith their managed care programs, usually associated with a cash-flow issue due to the prepaid natureof risk-based managed care; however, state officials often indicated that managed care offered the stateimproved value related to access and quality, even if savings were modest or not realized.6 Ariz<strong>on</strong>a, DC, Delaware, Kansas, Kentucky, North Carolina, New Mexico, Nevada, New York, and Washingt<strong>on</strong>.18 00
<strong>State</strong>s with <strong>Medicaid</strong> MCOsKey Secti<strong>on</strong> Findings:Almost two-thirds of <strong>Medicaid</strong> MCO enrollees are in health plans that primarily or exclusivelyserve <strong>Medicaid</strong>; for-profit plans account for a little over half of <strong>Medicaid</strong> MCO enrollment.A large majority of states set MCO capitati<strong>on</strong> rates administratively using actuaries, and mostrisk-adjust their rates for health status. More than half incorporate pay-for-performancefeatures in their MCO payments.Nearly all states “carve out” at least <strong>on</strong>e acute care benefit, although some are c<strong>on</strong>sidering orplanning to carve some services back in. The most comm<strong>on</strong> carve-out is dental care, followedby inpatient and outpatient behavioral health care, n<strong>on</strong>-emergency transportati<strong>on</strong>, andpharmacy.Many states report that <strong>Medicaid</strong> MCO enrollees sometimes face access problems. Key areasof c<strong>on</strong>cern are dental care, pediatric and other specialty care, and mental health care.Broad patterns in comprehensive risk-based <strong>Medicaid</strong> managed careMore than half of states with MCOs c<strong>on</strong>tract with four or more plans; a few large states have morethan 20 c<strong>on</strong>tracts. Thirty-six states reported a total of 289 MCO c<strong>on</strong>tracts or plans covering over 26milli<strong>on</strong> <strong>Medicaid</strong> enrollees. Of these 36 states, 15 had three or fewer MCO c<strong>on</strong>tracts, 13 states had fourto seven c<strong>on</strong>tracts, and the others had a larger number. California reported the greatest number ofc<strong>on</strong>tracts (42), followed by New York (30), 7 Florida (24) and Ariz<strong>on</strong>a (19).A relatively small number of states with large populati<strong>on</strong> account for most <strong>Medicaid</strong> MCO enrollment.Three states – California, New York, and Texas – account for 34 percent of all <strong>Medicaid</strong> MCO enrollmentnati<strong>on</strong>ally. Ten states account for over two-thirds of total MCO enrollment.Almost two-thirds of <strong>Medicaid</strong> MCOenrollees are served by <strong>Medicaid</strong>-<strong>on</strong>lyplans, and for-profit plans account for alittle over half of <strong>Medicaid</strong> MCOenrollment. The survey asked states toreport MCO-specific enrollment as ofOctober 2010 and to indicate, for eachMCO, whether it exclusively or primarilyserves <strong>Medicaid</strong> beneficiaries(“<strong>Medicaid</strong>-<strong>on</strong>ly”) or serves bothcommercial and <strong>Medicaid</strong> populati<strong>on</strong>s(“mixed”), whether the plan is not-forprofitor for-profit, whether it is publicly63%Figure 2Distributi<strong>on</strong> of <strong>Medicaid</strong> MCO Enrollmentby Selected MCO Characteristics37% 48% 42% 50%MixedNot-forprofitPubliclyLocaltraded<strong>Medicaid</strong><strong>on</strong>ly53% 58% 51%For-profitNotNati<strong>on</strong>alpubliclytradedEnrollment compositi<strong>on</strong> For-profit status Publicly traded Local or nati<strong>on</strong>alNote: 36 states c<strong>on</strong>tract with MCOs.SOURCE: KCMU/HMA <str<strong>on</strong>g>Survey</str<strong>on</strong>g> of <strong>Medicaid</strong> <strong>Managed</strong> <strong>Care</strong>, September 2011.7 New York provided informati<strong>on</strong> <strong>on</strong> <strong>on</strong>ly seven (of 21 total) managed l<strong>on</strong>g-term care plans, describing them asrepresenting the “vast majority” of managed l<strong>on</strong>g-term care enrollment.19
- Page 1 and 2: kaisercommission onmedicaidand theu
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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 and 12: HEDIS©, CAHPS©, and state-specifi
- Page 13: ConclusionFor over 30 years, state
- 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
- Page 23: States are increasingly mandating m
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- Page 29 and 30: excess of a specified threshold for
- Page 31 and 32: Dental care and outpatient and inpa
- Page 33 and 34: the second trimester, and within th
- Page 35 and 36: eported that they limit PCP panel s
- Page 37 and 38: States with non-comprehensive PHPsK
- Page 39 and 40: Measuring, monitoring, and improvin
- 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
- Page 47 and 48: public health efforts to reduce dis
- Page 49 and 50: Medicaid managed long-term care and
- 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
- Page 63 and 64: APPENDIX 3: MCO Contracts, Plan Cha
- Page 65 and 66: State(No. ofcontracts)NameEnrollmen
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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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