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3 Great New Analyses from Milliman

Our friends at Milliman have just released 3 new helpful analyses for the Medicaid space:

ACA Infographic- Showing how much individuals in each state benefit from exchange subsidies.  Its a pretty nifty graphic showing states in different heights based on enrollment. Also shows percentage of individuals receiving subsidies for each state, based on 2017 data. This infographic also touches on CSRs and average premiums. Its a lot of info packed into one map, and well worth the read.

ACA_CSRs Infographic-  This one gets into more specifics on the cost-sharing reduction payments you’ve seen in the news lately.

Reinsurance and High Risk Pools– This new discusses the following issues:

· Historical role of high risk pools in the pre-ACA market
· ACA’s transitional reinsurance program
· 1332 State Innovation Waivers and the development of state-run reinsurance programs
· Key considerations for high risk pools and reinsurance programs under pending healthcare reform legislation

I linked a copy above, and you can also find the original with more info on the authors here: http://us.milliman.com/insight/2017/Reinsurance-and-high-risk-pools-Past–present–and-future-role-in-the-individual-health-insurance-market/

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Monday Morning Medicaid Must Reads: June 5, 2017

Helping you consider differing viewpoints. Before it’s illegal. 

 

Article 1: FACT CHECK: Does The Trump Budget Gut Medicaid? Daily Caller, David Sivak, 5/30/2017

Clay’s summary: Maybe the sky is not falling.

Key Passage from the Article

What many refer to as “cuts to Medicaid” are actually cuts to the growth of Medicaid, not the current size of the program. The Trump administration allocates more for Medicaid every year of the budget. Director of the Office of Management and Budget Mick Mulvaney calls the misconception “a classic example of how Washington speaks differently than the world back home.”

Critics counter that despite increased spending in the budget, the size of Medicaid shrinks over time as a percentage of GDP, a measure of the size of the economy, dropping from two percent today to 1.7 percent in 2027.

While this is true, when looking at the size of Medicaid as a percentage of the total budget, it remains, on average, about the same size – 9.6 percent of the total budget – compared to 2016 funding levels. For this reason, it’s misleading to characterize the savings as cuts to Medicaid.

Read it here 


Article 2: Medicaid efficiency is needed now, more than ever The Hill, Bill Lucia 5/31/2017

Clay’s summary: New TPL legislation could help prevent improper payments when there is coverage besides Medicaid. Also, cool to see Bill Lucia publishing.

Key Passage from the Article

 

Unfortunately, some liable third parties have found loopholes in laws and regulations that shift costs to Medicaid. HR 938 aims to close these loopholes and ensure that the right party is paying the right claims. Among the key provisions in the Medicaid Third Party Liability Act that will result in Medicaid savings and efficiency are:

Prevents liable parties from denying claims due to a lack of prior authorization, thereby shifting these costs to Medicaid.
Gives Medicaid Managed Care Organizations (MCOs) the same rights as state Medicaid agencies to be the payer of last resort. This is important as nearly 70 percent of Medicaid recipients are currently enrolled in Medicaid managed care plans.
Replicates prompt payment standards routinely enforced in the commercial sector, but for Medicaid reclamation claims. These are claims for the recovery of payments made by Medicaid that are actually the responsibility of another healthcare program or liable insurer.

 

Read it here

 


Article 3: CMS chief: Medicaid needs reform, House healthcare bill ‘outdated’, McKnights, Emily Mongan, June 1, 2017

Clay’s summary: CMS Chief Verma is strategic in her view of the current funding fights. And she knows that CBO numbers are historically garbage.

Key Passage from the Article

Verma also dismissed the Congressional Budget Office’s cost estimate for the House’s healthcare proposal, noting “CBO numbers have historically been problematic” and that her focus has turned to the Senate’s version of the legislation. The CBO report estimated the bill could cut Medicaid funding by $834 billion over ten years, and leave 23 million people without health coverage by 2026.
“I’ve been working with a lot of the senators. We want to make sure that the president’s core principles are incorporated into the final version,” Verma said. “I think what’s more important is what the Senate comes up with. Really, the House version is something that’s outdated at this point.”

Read it here

 


Article 4: Medicaid’s Cracked Halo, Forbes, Sally Pipes, May 30, 2017

Clay’s summary: Forbes continues to write articles about Medicaid that no liberal wants to read. Or acknowledge that there is some truth to.

Key Passage from the Article

A recent issue brief from the Kaiser Family Foundation, meanwhile, concludes, “Medicaid is cost-effective.”

But the data tell a different story. Medicaid is a budget-busting program rife with waste, fraud, and abuse that doesn’t even expand access to quality care or improve health outcomes.

For starters, Medicaid’s costs are spinning out of control. In 2015, total Medicaid spending shot up almost 10 percent. Overall national health spending, by contrast, climbed only 5.8 percent. Last year, the Congressional Budget Office had to raise its projections for the 10-year cost of Medicaid by $146 billion, as per-enrollee costs came in far higher than expected.

Medicaid now accounts for 19 percent of states’ general fund spending. It’s their second-biggest budget line item, after education.

States across the country are facing budget crises this year, largely because of ballooning Medicaid costs.

Read it here

 


Article 5: AIS Survey Data Show Significant Growth in Medicaid Managed Care, AIS Health, Lauren Kelly, April 27, 2017

 

Clay’s summary: Medicaid managed care enrollment is up and its not just because of expansion.

Key Passage from the Article

Medicaid expansion is one explanation for increases in a few states, but many Medicaid expansion programs have been in force for several years, so it is not a factor in year-over-year growth for all expansion states. Numbers are up in several non-expansion states, including those without managed care, and slight decreases are seen in both expansion and non-expansion states.

Read it here

 

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Weekly Medicaid RoundUp: Week of May 29th, 2017

Soundtrack for today’s RoundUp pessimist readers- http://bit.ly/2rMf8Yi

For optimist readers- http://bit.ly/2rMjpuK

 

I SEE CHICKEN LITTLES (READ THAT IN HALEY JOEL OSMENT’S VOICE FROM THE 6TH SENSE)- For all those screaming that the Medicaid world is ending, please see my article last week “A Few Charts re AHCA and Medicaid” (http://bit.ly/2rM9Pbl). We were flying the plane 90 degrees straight up (into the white hot burning sun); now its tacking at about 87 degrees. If you are going to freak out about the “cuts” at least be honest and use the real numbers. Any corrections to my #s / charts much appreciated. Send me a note and I can send you the spreadsheet and we can revise together. It would be like a group project in highschool.

 

SEEMA SAYS- An interview with CMS chief Seema Verma came out this week in USA Today, which is pretty cool because the recently former acting CMS Admin Andy Slavitt (now turned townhall superhero/the Michael Moore of Healthcare) is sort of on staff at USA Today as well. So, balance I guess. Anyway, Seema says that whole state-fed partnership thing is really out of whack in favor of top-down D.C. bullying, and its time for the states to have some actual say in the program, even if it means occasionally going against the D.C. money dealers. Somebody pinch me.

 

SAGEBRUSH STATE SEEKS TO EXPAND- Mike Quixote, er I mean Sprinkle, submitted a bill to expand Medicaid in Nevada this week. Good luck, Mike. Let us know how it turns out!

 

AMERICA’S DAIRYLAND ASKS YOU TO PEE IN A CUP- Wisconsin legislators approved the Good Guvn’r Walker’s drug testing provision for Medicaid coverage this week. Now it just needs to get covfefe-ed by President Trump’s CMS Administration.

 

PRAIRIE STATE SLOWING DOWN MCO STRATEGY- Dems in Illinois passed SB 1446 to require the state to use the normal procurement process in its attempts to expand managed care. Seems current state DHS officials have been using a different process (but not a new one), and legislators think it should be more transparent.

 

THE MUSIC HAS STOPPED AND MEDSTAR DOES NOT HAVE A CHAIR- D.C. MCO awards are out, and MedStar (an incumbent with about 60k bennies) is on the losing list. Per the D.C. report, MedStar had 40% higher costs and a higher service denial rate. MedStar responded that their bennies needed more pharma, but it wasn’t enough to sway the judges. Winners include Trusted Health Plan, AmeriHealth Caritas, and Anthem. Congrats to all our colleagues in the winning MCOs.

 

FARRIS’S FANTASTIC FRAUD FOLLIES– And now for everybody’s favorite paragraph. Let’s start the ticker and see who wins this week’s award.  Ronette Brown of Bristol, CT was convicted this week for $200k worth of bogus psych therapy. Barbara Wallace of Savannah, GA was sentenced to 41 months for stealing $948k from Medicaid. Her crime? Selling unnecessary medical shoes. Complementary Support Services of Minnesota settled its Medicaid fraud suit for $4.5M. CSS was a mental health provider that fabricated patient records to get paid. Sonia Ponce of Freeport, NY stole $75k by inflating home healthcare aide time sheets under the state’s Consumer Directed Health Program. Total taxpayer tab for this paragraph: $5.8M. CSS you win this week!

 

 

That’s it for this week. As always, please send me a note with your thoughts to clay@mostlymedicaid.com or give me a buzz at 919.727.9231. Get outside (Everything is sprouting!) and keep running the race (you know who you are).

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Medicaid Industry Who’s Who Series: Elena Nicolella

Medicaid Who’s Who: Elena Nicolella – Executive Director, New England States Consortium Systems Organization (NESCSO)

 

 

 

 

 

  1.  What is your current role and in what sector of the industry?

   A: The New England States Consortium Systems Organization is a private, non-profit whose mission is to support State Government Health and Human Service agencies meet their goals.  We focus on: providing training and resources related to Medicaid to State employees, pursuing multi-state procurements, and supporting the effective use of information technology to support the Medicaid Enterprise.

  2.  How many years have you been in the Medicaid industry?

 A. 20 years (yikes!)

  3.  What is your focus/passion? (Industry related or not)

   A: Supporting the delivery of publicly-financed services and supports in ways that are responsive to the needs of people as opposed to the requirements of specific programs.

  4.  What is the top item on your “bucket list?”

   A: Finish all the ironing.

  5.  What do you enjoy doing most with your personal time?

   A: Day trips around New England with the family.

  6.  Who is your favorite historical figure and why?

    A. She is only “historical” to me – but my grandmother.  She was a character!

  7.  What is your favorite junk food?

   A: Olneyville NY System Hot Wieners (it’s a Rhode Island thing)

  8.  Of what accomplishment are you most proud?

   A: Remembering to learn something every day.

  9.  For what one thing do you wish you could get a mulligan?

  A: So many….in general, implementing an initiative without deliberately taking the time to understand the impact on others.

  10. What are the top 1-3 issues that you think will be important in Medicaid during the next 6 months? 

   A: As States hold their breaths waiting for the outcome of new health care legislation or regulation, I think it is important to take the time to understand, embrace, and fortify their core values and whether or not they are implementing their programs in service of those values.  This will help guide States’ responses to new mandates or opportunities.