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AR- State regulators give OK to Medicaid managed care company once dogged by investigations

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[MM Curator Summary]: Empower is back in the good graces of the state and now has new private equity backing to help keep solvent.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Two months ago, things were looking dire for Empower Healthcare Solutions, a managed care organization that serves roughly 20,000 Arkansas Medicaid beneficiaries with developmental disabilities, severe behavioral health disorders and other complex needs.

The attorney general’s office was investigating the company for suspected Medicaid fraud. The state Department of Human Services, which oversees Medicaid in Arkansas, suspended new enrollments to Empower in November due to alleged “misrepresentations” to DHS. And Empower was undergoing an acrimonious corporate divorce with one of its co-owners, Beacon Health Options, which Empower’s lawyers said was trying to “sabotage” Empower on its way out the door.

Now, Empower looks to be in the clear with state regulators – and has found a new financial backer in the form of a Dallas private equity firm.

On Monday, DHS notified Empower CEO Mitch Morris that the company had officially passed a months-long “readiness review” process. DHS officials initiated the review last year out of concern that Empower might not have been prepared to continue serving its members in the wake of its separation from Beacon, one of the nation’s largest behavioral health companies.

In addition to owning a 16.67 percent share of Empower, Beacon played a critical role in its day-to-day operations and provided key administrative services.

An independent consultant who reviewed Empower’s operational capacity in November on behalf of DHS found “significant concerns” about Empower’s transition away from Beacon. “The number and seriousness [of] issues identified without doubt draw into question Empower’s current readiness to carry out required … functions,” he wrote in a Nov. 30 letter to DHS.

However, that consultant ultimately recommended DHS allow Empower to keep operating in 2022, on a conditional basis, while it continued to monitor the company. With the readiness review now complete, Empower is able to resume enrolling Medicaid beneficiaries – and thus bring in more revenue.

Empower is the largest of four so-called Provider-led Arkansas Shared Savings Entities (PASSEs), organizations that contract with DHS to pay for and coordinate care for high-need, high-cost Medicaid beneficiaries. PASSEs must be majority owned by health care providers, but their role is similar to that of insurance companies. Each PASSE receives a fixed monthly sum from DHS for each of its members – the equivalent of a premium. The PASSE is then responsible for paying for care for all its members, which can include costly services like inpatient psychiatric treatment or around-the-clock help for people with disabilities. In 2020, Medicaid paid out almost $1.3 billion to PASSEs for the roughly 50,000 beneficiaries in the system, according to documents provided to a legislative committee in June. About 20,000 of those are Empower members.

“We are happy to achieve full and final approval and look forward to continued collaboration with DHS,” Morris said in an emailed response to questions. He said Empower was “fully staffed and strongly positioned for continued operations.”

The letter DHS sent to Morris says the agency “will continue to monitor Empower and will hold regular meetings with Empower for enhanced monitoring.”

Empower is also free of the Medicaid fraud investigation. On Jan. 4, the attorney general’s office announced it had reached an almost $8 million civil settlement with Empower, which denies wrongdoing.

Morris said the company’s issues with the attorney general’s office “have been fully resolved.”

On Friday, Empower also completed a deal with a new co-owner: Trive Capital, a Dallas-based private equity firm. After gaining approval from the Arkansas Insurance Department – which regulates PASSEs to ensure they are financially solvent – Trive acquired the 16.67 percent share of Empower left behind by Beacon. The separation of Beacon and Empower was completed on Dec. 31, Morris said.

At an Insurance Department hearing Friday afternoon, Tanner Cope, a managing director at Trive, said the two sides had expected to close the deal by the end of the year but were delayed by the attorney general investigation and the DHS readiness review.

Morris said Trive and Empower began discussing the acquisition last summer. He declined to answer a question about the terms of the deal or the amount Trive was initially investing in the Arkansas company.

Asked whether Empower families should be concerned that a private equity firm had acquired a portion of their PASSE, Morris said no. “Empower’s #1 priority is always to provide industry-leading services and support to our members and their families. With these changes, Empower is better positioned to do so,” he wrote.

Trive did not respond to calls or emails on Friday seeking comment.

Trive will join the five Arkansas-based health care organizations that now co-own Empower: Arkansas Community Health Network, a consortium of hospital systems; Statera, a long-term care company; Independent Case Management, a provider of home and community-based services for people with developmental disabilities; The Arkansas Healthcare Alliance, a group of providers for behavioral health and developmental disability services; and, ARcare, a network of clinics and other providers.

 
 

Clipped from: https://www.thecabin.net/news/state-regulators-give-ok-to-medicaid-managed-care-company-once-dogged-by-investigations/article_94481979-1031-5d61-b2d6-e2cf5f6afec9.html

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FL- Five Medicaid changes Florida lawmakers are considering in 2022 – State of Reform

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[MM Curator Summary]: The new FL MCO procurement is set to bring major changes to the current incumbent landscape.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Nicole Pasia | Feb 9, 2022 | Florida

A bill currently moving through the Florida House of Representatives will make changes to five major components of the state’s Medicaid program, which covers nearly five million Floridians. House Bill 7047‘s revisions would impact the Statewide Medicaid Managed Care (SMMC) program as the Agency for Health Care Administration (AHCA) conducts its next procurement in 2022-2023.

  
 

Representative Sam Garrison (R – Clay) introduced his bill to the House Health Care Appropriations Subcommittee this week and outlined five key changes it would bring:

1. Reprocurment Process

H.B. 7047 would authorize a statewide SMMC reprocurement, rather than by region. It would also consolidate the number of managed care regions from 11 to eight. The bill would also encourage healthy competition among Medicaid health plans, according to Garrison, by capping plan enrollment to 45% of the total enrollees in a region. According to a staff analysis, six regions had a health plan with more than 45% of the enrollees as of Nov. 30, 2021.

2. Dental Benefits

One of the more disputed parts of the bill was the restoration of dental services under SMMC. From 2014-2018, dental benefits were integrated into the health plans, during which the state saw higher dental service utilization. 

However, in 2016 the legislature directed AHCA to separate dental benefits into a stand-alone managed care program, which occurred from 2018-2019, which led to a halt or regression in dental service utilization, according to the staff analysis. As of October 2021, three dental plans are currently contracted to provide Medicaid dental services. 

3. Network Adequacy

Another section that drew opposition from House Democrats concerns network contracts between regional plans and statewide essential providers, such as hospitals. 

Currently, essential providers must offer to contract with all applicable Medicaid plans, but are not required to enter into the contract in order to receive supplemental payments. AHCA currently acts as the determining body on whether these contracts are made fairly. The bill would require network contracts and remove AHCA’s mediator role.

“[AHCA is] not equipped to do that and it’s not fair to ask them to do that,” he said. “What we’re trying to do with this process is create objective standards for AHCA to look at … You either have the contract or you don’t.”

Representative Nicholas Duran (D – Miami-Dade), put forth the bill’s sole amendment, which would remove the network contract requirement for providers to receive supplemental payments. Duran argued the amendment would “foster true competition” among plans and providers, but the amendment ultimately failed to pass.

4. Healthy Behaviors Program

One provision of the bill expands the Healthy Behaviors program, which supports enrollees’ overall health. Current conditions addressed under this program include tobacco smoking, weight loss, and substance use. The bill would expand tobacco cessation to include non-smokable tobacco products, and would have a focus on opioid abuse recovery.

5. Workforce Development

This part of the bill would expand the type of health education funding that may be included in a plan’s medical loss ratio (MLR), or the amount of premium revenue spent on “clinical services and quality improvement,” according to CMS guidelines. In addition to current expenditures for medical residency positions, the bill would add funding for graduate and undergraduate student nursing education positions and “student positions in any degree or technical program deemed [in] critical shortage by AHCA.” This provision would incentivize plans to invest in workforce development initiatives, according to Garrison.

The bill passed favorably out of the Health Care Appropriations Subcommittee with a 10-5 vote along party lines and now sits in the full House Health and Human Services Committee.

 
 

Clipped from: https://stateofreform.com/news/florida/2022/02/five-medicaid-changes-florida-lawmakers-are-considering-in-2022/

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CA- California inks sweetheart deal with Kaiser Permanente, jeopardizing Medicaid reforms

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[MM Curator Summary]: Kaiser Permanente got exempted out of the new CA MCO bidding process and other MCOs are calling foul.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 


SACRAMENTO, California—Gov. Gavin Newsom’s administration has negotiated a secret deal to give Kaiser Permanente (KP) a special Medicaid contract that would allow the healthcare behemoth to expand its reach in California and largely continue selecting the enrollees it wants, which other health plans say leaves them with a disproportionate share of the program’s sickest and costliest patients. 

The deal, hammered out behind closed doors between KP and senior officials in Newsom’s office, could complicate a long-planned and expensive transformation of Medi-Cal, the state’s Medicaid program, which covers roughly 14 million low-income Californians. 

It has infuriated executives of other managed-care insurance plans in Medi-Cal, who say they stand to lose hundreds of thousands of patients and millions of dollars a year. The deal allows KP to limit enrollment primarily to its previous enrollees, except in the case of foster kids and people who are eligible for both Medicare and Medi-Cal.  

“It has caused a massive amount of frenzy,” said Jarrod McNaughton, CEO of the Inland Empire Health Plan, which covers about 1.5 million Medi-Cal enrollees in Riverside and San Bernardino counties. “All of us are doing our best to implement the most transformational Medi-Cal initiative in state history, and to put all this together without a public process is very disconcerting.”

Linnea Koopmans, CEO of the Local Health Plans of California, echoed McNaughton’s concerns.

Insurance plans got wind of the backroom talks when broad outlines of the deal were leaked days before the state briefed their executives Thursday.

Bechara Choucair, M.D., Kaiser Permanente’s chief health officer, argued in a prepared written response (PDF) on behalf of KP that because it operates both as a health insurer and a healthcare provider, KP should be treated differently than other commercial health plans that participate in Medi-Cal. Doing business directly with the state will eliminate complexity and improve the quality of care for the Medi-Cal patients it serves, he said. 

“We are not seeking to turn a profit off Medi-Cal enrollment,” Choucair said. “Kaiser Permanente participates in Medi-Cal because it is part of our mission to improve the health of the communities we serve. We participate in Medi-Cal despite incurring losses every year.” 

His statement cited nearly $1.8 billion in losses in the program in 2020 and said KP had donated $402 million to help care for uninsured people that year.

KP, the state’s largest managed-care organization, is one of Newsom’s most generous supporters and close political allies. 

The new, five-year contract, confirmed to KHN by administration officials and expected to be announced publicly Friday, will take effect in 2024 pending approval from the legislature—and will make KP the only insurer with a statewide Medi-Cal contract. It allows KP to solidify its position before California’s other commercial Medi-Cal plans participate in a statewide bidding process—and after those plans have spent many months and considerable resources developing their bidding strategies.

Other health plans fear the contract could also muddle a massive and expensive initiative called CalAIM that aims to provide social services to the state’s most vulnerable patients, including home-delivered meals, housing aid for homeless people and mold removal from homes. Under its new contract, KP must provide some of those services. But some executives at other health plans say KP will not have to enroll a large number of sick patients who need such services because of how it limits enrollment.

Critics of the deal noted Newsom’s close relationship with KP, which has given nearly $100 million in charitable funding and grant money to boost Newsom’s efforts against homelessness, COVID response and wildfire relief since 2019, according to state records and KP news releases. The healthcare giant was also one of two hospital systems awarded a no-bid contract from the state to run a field hospital in Los Angeles during the early days of the COVID pandemic, and it got a special agreement from the Newsom administration to help vaccinate Californians last year.

Jim DeBoo, Newsom’s executive secretary, used to lobby for KP before joining the administration. Toby Douglas, a former director of the state Department of Health Care Services, which runs Medi-Cal, is now Kaiser Permanente’s vice president for national Medicaid.

Partnering with CA Governor Gavin Newsom, Kaiser Permanente increases its commitment to addressing homelessness https://t.co/ncYzG8nWdt

— Paul Erskine (@Paul_Erskine) January 17, 2020

Still, many critics agree that Kaiser Permanente is a linchpin of the state’s healthcare system, with its strong focus on preventive care and high marks for quality of care. Many of the public insurance plans upset by the deal subcontract with KP for patient care and acknowledge that their overall quality scores will likely decline when KP goes its own way.

Michelle Baass, director of the state Department of Health Care Services, said Medi-Cal had risked losing KP’s “high quality” and “clinical expertise” altogether had it been required to accept all enrollees, as the other health plans must. But she said KP will have to comply with all other conditions that other plans must meet, including tightened requirements on access, quality, consumer satisfaction and health equity. 

The state will also have greater oversight over patient care, she said.

“This proposal is a way to help ensure Kaiser treats more low-income patients, and that more low-income patients have access to Kaiser’s high-quality services,” Baass said. 

Though Kaiser Permanente has 9 million enrollees, close to a quarter of all Californians, only about 900,000 of them are Medi-Cal members. 

Under the current system, 12 of the 24 other managed care insurance plans that participate in Medi-Cal subcontract with KP to care for a subset of their patients, keeping a small slice of the Medi-Cal dollars earmarked for those patients. Under the new contract, KP can take those patients away and keep all of the money.

In its subcontracts, and in counties where it enrolls patients directly, KP accepts only people who are recent Kaiser Permanente members and, in some cases, their family members. It is the only health plan that can limit its Medi-Cal enrollment in this way. 

The new contract allows KP to continue this practice, but it also requires Kaiser Permanente to take on more foster children and complex, expensive patients who are eligible for both Medi-Cal and Medicare. It allows KP to expand its geographic reach in Medi-Cal to do so. 

Baass said the state expects KP’s Medi-Cal enrollment to increase 25% over the life of the contract. 

KP defended the practice of limiting enrollment primarily to its previous members, arguing that it provides “continuity of care when members transition into and out of Medi-Cal.” 

The state has long pushed for a larger KP footprint in Medi-Cal, citing its high quality ratings, its strong integrated network and its huge role on the broader healthcare landscape.

“Kaiser Permanente historically has not played a very big role in Medi-Cal, and the state has long recognized that we would benefit from having them more engaged because they get better health outcomes and focus on prevention,” said Daniel Zingale, a former Newsom administration official and health insurance regulator who now advises a lobbying firm that has Kaiser Permanente as a client. 

But by accepting primarily people who have been KP members in the recent past, the health system has been able to limit its share of high-need, expensive patients, say rival health plan executives and former state health officials.

The executives fear the deal could saddle them with even more of these patients in the future, including homeless people and those with mental illnesses—and make it harder to provide adequate care for them. Many of those patients will join Medi-Cal for the first time under the CalAIM initiative, and KP will not be required to accept many of them.

“Awarding a no-bid Medi-Cal contract to a statewide commercial plan with a track record of ‘cherry picking’ members and offering only limited behavioral health and community support benefits not only conflicts with the intent and goals of CalAIM but undermines publicly organized health care,” according to an internal document prepared by the Inland Empire Health Plan. 

The plan said it stands to lose the roughly 144,000 Medi-Cal members it delegates to KP and about $10 million in annual revenue. L.A. Care, the nation’s largest Medicaid health plan, with 2.4 million enrollees in Los Angeles County, will lose its 244,000 KP members, based on data shared by the plan. 

The state had been scheduled on Wednesday to release final details and instructions for the commercial plans that are submitting bids for new contracts starting in 2024. But it delayed the release a week to make the KP deal public beforehand.

Baass said the state agreed to exempt KP from the bidding process because the standardized contract expected to result from it would have required the insurer to accept all enrollees, which Kaiser Permanente does not have the capacity to do. 

“It’s not surprising to me that the state will go to extraordinary means to make sure that Kaiser is in the mix, given it has been in the vanguard of our health care delivery system,” Zingale said.

Having a direct statewide Medi-Cal contract will greatly reduce the administrative workload for KP, which will now deal with only one agency on reporting and oversight, rather than the 12 public plans it currently subcontracts with. 

And the new contract will give it an even closer relationship with Newsom and state health officials.

In 2020, KP gave $25 million to one of Newsom’s key initiatives, a state homelessness fund to move people off the streets and into hotel rooms, according to a KHN analysis of charitable payments filed with the California Fair Political Practices Commission. The same year, it donated $9.75 million to a state COVID relief fund.

In summer 2020, when local and state public health departments struggled to contain COVID spread, the healthcare giant pledged $63 million in grant funding to help contract-tracing efforts.

KP’s influence extends beyond its massive charitable giving. Its CEO, Greg Adams, landed an appointment on the governor’s economic recovery task force early in the pandemic, and Newsom has showcased KP hospitals at vaccine media events throughout the state. 

Thank you @GavinNewsom @CHHSAgency @MayorOfLA
@LAPublicHealth
@HildaSolis for joining KP CEO Greg Adams, @NancyGinMD and @KP_LAMC physicians & staff during this historic moment. We appreciate your leadership as we work together to end this devastating #pandemic. #COVID19
pic.twitter.com/E9nHdrPpTd

— Kaiser Permanente Southern California (@KPSCALnews) December 14, 2020

“In California and across the U.S., the campaign contributions and the organizing, the lobbying, all of that stuff is important,” said Andrew Kelly, Ph.D., an assistant professor of health policy at California State University-East Bay. “But there’s a different type of power that comes from your ability to have this privileged position within public programs.”

This story was produced by KHN, which publishes California Healthline, an editorially independent service of the California Health Care Foundation.

Clipped from: https://www.fiercehealthcare.com/payers/california-inks-sweetheart-deal-kaiser-permanente-jeopardizing-medicaid-reforms

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Georgia bill aims to limit profits of Medicaid managed-care plans

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[MM Curator Summary]: GA is one of only a few Medicaid managed care states that does not require a minimum Medical Loss Ratio (MLR).

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Georgia lawmakers will consider a bill that could force the state’s Medicaid managed-care insurers to repay millions of dollars if their spending on medical care doesn’t reach a certain threshold.

This story also appeared in Georgia Health News

The bipartisan bill, introduced Jan. 26 by the powerful Georgia House Speaker David Ralston, a Republican, is focused on improving the state’s mental health care system.

Tucked inside the legislation is a provision that would require the Medicaid managed-care companies to refund payments to the state if they don’t spend enough on medical care and quality improvements for patients.

Georgia Health News and KHN reported in September that Georgia was one of only a few states that doesn’t mandate a minimum level of medical spending for its Medicaid insurers.

Each year, Georgia pays three insurance companies — CareSource, Peach State Health Plan, and Amerigroup — a total of more than $4 billion to run the federal-state health insurance program for low-income residents and people with disabilities. For 2019 and 2020, the companies’ combined profits averaged $189 million per year, according to insurer filings reported by the National Association of Insurance Commissioners.

“Instead of ensuring adequate health care networks for Georgia’s children, Georgians with disabilities, and Georgians in nursing facilities, hundreds of millions of dollars go instead to the Georgia [insurers’] bottom lines,” said Roland Behm, a board member for the Georgia chapter of the American Foundation for Suicide Prevention.

Behm, who advised lawmakers on the bill, said the KHN and Georgia Health News article helped bring the issue to the attention of legislators crafting the bill.

Georgia is among more than 40 states that have turned to managed-care companies to run their Medicaid programs — and ostensibly control costs. According to an August report from the U.S. Department of Health and Human Services’ Office of Inspector General, 36 of those states and the District of Columbia set a benchmark “medical loss ratio” for the minimum spending by insurers on medical care. Besides Georgia, the report said, the five states not requiring a managed-care spending threshold were Kansas, Rhode Island, Tennessee, Texas, and Wisconsin.

Ralston (left), with Kevin Tanner, chairman of a mental health commission, and Insurance Commissioner John King (right), at the Capitol on Wednesday. Credit: Georgia Health News

Republican state Rep. Todd Jones, a co-sponsor of the new bill, told KHN that Georgia lawmakers should establish a strong benchmark for insurers to meet. “We should look at what other states are doing,” he said.

Most states with a spending requirement set that ratio at a minimum of 85% of premium dollars that insurers are paid. So when a Medicaid insurer spends less than that on medical care and quality improvements, it must return money to the government.

The Georgia bill also calls for setting the threshold at 85%. If the bill is approved, the Medicaid insurers would face the medical spending requirement in 2023.

If the benchmark had been in place in recent years, it could have forced a recoupment from the Peach State company, which has the largest Georgia Medicaid enrollment of the three insurers. State documents show it failed to reach the 85% mark from 2018 to 2020, KHN previously reported.

Andy Schneider, a research professor at Georgetown University’s Center for Children and Families, called the 85% mark “a win for taxpayers, for Medicaid providers, and for Medicaid beneficiaries.” He also said it would be more than fair to the Medicaid insurers, which could keep 15% of what the state pays them for administrative costs and profit.

Because Ralston is the lead sponsor of the bill in the House, it’s expected to pass that chamber.

But the insurance industry likely will work to remove the medical spending provision.

An industry official, Jesse Weathington, executive director of the Georgia Quality Healthcare Association trade group, declined to comment on the legislation.

Fiona Roberts, a spokesperson for the state Department of Community Health, which oversees the Medicaid program, said the agency needs time to review the measure before commenting on it.

The main provisions of the bill require insurers to provide coverage for mental health care or substance use treatment at the same level as other physical health needs.

The legislation would provide education loan support for people training in the fields of mental health and substance use disorders and seek to expand behavioral health services for children. It would also facilitate “assisted outpatient treatment” — when a judge could order a person with a serious mental illness to follow a court-ordered treatment plan in the community.

This story is available through a news partnership with Georgia Health News.

 
 

Clipped from: https://thecurrentga.org/2022/01/28/georgia-bill-aims-to-limit-profits-of-medicaid-managed-care-plans/

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Ohio Medicaid director says program change won’t disrupt health care

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[MM Curator Summary]: OH is requiring members to pick their plan for the first time.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Karen Kasler

/

Statehouse News Bureau

Ohio Medicaid Director Maureen Corcoran testified before the House Finance Commission discussing the two-year state budget in February 2021.

Ohio’s Medicaid director is taking issue with a report from a progressive think tank that suggests millions of people in the program could have their health care interrupted because of a change that takes effect in July.

Medicaid participants will be notified soon they must confirm which of seven managed care plans they want – though people who’ve been in Medicaid haven’t had to do that if they wanted to stay with their plan. Ohio Medicaid Director Maureen Corcoran said part of the reason for that is to get people to be more engaged and informed about their health care.

“We know that when people have to kind of stop and think about it, they’re going to get more drawn into their health care,” Corcoran said. “We want to encourage people to be affirmative and learn and be active in their health care.”

Those who don’t respond could be assigned to different plans later this year, but Corcoran said they can always switch back.

“If a person doesn’t choose and we then make an assignment, they still can choose to go back to the plan they had had maybe a year ago or – they still have a choice, even if they hadn’t responded previously. So prioritizing choice is number one,” said Corcoran.

Eventually, as many as 80,000 Ohioans could be moved to the new plans that need participants, but Corcoran says they can change back till the end of November. But Corcoran notes that’s a very small percentage of the program’s participants.

The group Innovation Ohio suggested those reassignments could disrupt health care for millions. But Corcoran says careful matching – finding plans that keep people in their networks, for instance – should mean that won’t happen, or that it would be rare.

And Corcoran noted that for now, no one can be disenrolled from Medicaid because there’s a public health emergency declaration still in effect for the pandemic.

 
 

Clipped from: https://www.wksu.org/government-politics/2022-02-02/ohio-medicaid-director-says-program-change-wont-disrupt-health-care

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Anthem Profits Double To $1 Billion On Pandemic Medicaid Growth

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[MM Curator Summary]: The MCO giant – like other national logo MCOs- has seen its enrollment and margins surge during the pandemic.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Anthem’s fourth quarter profits doubled to $1.1 billion in the fourth quarter thanks to strong … [+] enrollment in its Medicaid plans that have drawn more people to such coverage during the Covid-19 pandemic, the company said Jan. 26, 2022. In this Feb. 5, 2015 photos is an exterior view of the Anthem Health Insurance headquarters in Indianapolis, Indiana. (Photo by Aaron P. Bernstein/Getty Images)

2015 Getty Images

Anthem’s fourth quarter profits doubled to $1.1 billion in the fourth quarter thanks to strong enrollment in its Medicaid plans that have drawn more people to such coverage during the Covid-19 pandemic.

Anthem, which operates an array of government and commercial health insurance including Blue Cross and Blue Shield plans in 14 states, Wednesday reported fourth quarter profits of $1.1 billion, or $4.63, compared to $551 million, or $2.19 in the year ago quarter. Revenue rose nearly 15% to $36.58 billion.

Anthem’s membership grew by 2.4 million, or 5.7%, to 45.4 million as of Dec. 31, 2021 compared to a year ago. “During the fourth quarter of 2021, medical enrollment increased sequentially by 303 thousand driven by organic growth in the Medicaid business, and growth in commercial risk-based and fee-based membership,” the company said in reporting its fourth quarter earnings.

Health insurers like Anthem enroll low income Americans into private Medicaid plans via contracts with states. Medicaid is one of Anthem’s biggest businesses, growing by 20% in the fourth quarter to 10.6 million enrollees at the end of 2021 from 8.8 million in the year-ago quarter.

Revenue in Anthem’s government business that includes Medicaid rose nearly 17% to $21.9 billion in the fourth quarter compared to $18.7 billion a year ago.

 
 

Clipped from: https://www.forbes.com/sites/brucejapsen/2022/01/26/anthem-profits-double-to-1-billion-on-pandemic-medicaid-growth/?sh=31c9f2d43c01

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Insurers’ challenges to North Carolina Medicaid contracts are over with dismissals

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[MM Curator Summary]: The final two protests officially withdrew this week.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

The end of appeals by two insurance providers fighting how North Carolina’s health department decided who would run its new Medicaid managed-care initiative means legal challenges over the awarding of the contracts are now over.

The Court of Appeals last week agreed to accept the voluntary dismissal request by the two providers that lost out on contracts awarded in 2019 by the Department of Health and Human Services. Four conventional insurers and one physician partnership received the awards to run the program, which began last July and covers 1.6 million Medicaid consumers.

My Health by Health Providers — composed of 12 local hospital systems and a New Mexico-based insurer — contended the DHHS process was flawed and biased against provider-led organizations like My Health. Aetna Better Health Care of North Carolina also challenged the process, but a Superior Court judge limited its involvement in the case. The judge last year affirmed the decision of an administrative law judge upholding DHHS award decisions.

The two providers appealed and were scheduled to participate Wednesday in oral arguments before a three-judge panel. But the groups’ lawyers asked last week that their appeal be withdrawn.

“Although My Health still believes in the merits of its appeal and the promise of provider-led managed care, My Health and its North Carolina health system owners have decided that they do not want to disturb the management of care for over 1.6 million North Carolina Medicaid beneficiaries during this global pandemic,” the motion reads. Aetna also asked for a dismissal given My Health’s decision, the motion read.

The dismissal means there are no pending challenges involving the awarding of the managed-care contracts, a DHHS spokesperson said Tuesday.

DHHS Deputy Secretary Dave Richard, who oversees Medicaid, said this week in a news release that agency leaders are “pleased at this outcome and believe it affirms the integrity and fairness of the department’s procurement process.”

Under managed care, the state Medicaid program has moved most of its recipients from a traditional fee-for-service model to one in which organizations receive fixed monthly payments for every patient its providers see and treat.
 

Clipped from: https://www.bpr.org/post/insurers-challenges-north-carolina-medicaid-contracts-are-over-dismissals#stream/0

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FL: Medicaid health plans, Florida Healthy Start don’t provide same services

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[ MM Curator Summary]: A recent audit suggests the two programs do not duplicate services, but the Medicaid agency disagrees.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

A look at the millions of dollars Florida is spending on health care and social services for pregnant women, infants and children shows little duplication and offers good news to those who support the programs.

A recently released report conducted by the Office of Program Policy and Government Accountability shows there’s not much overlap in care provided by state-contracted Medicaid managed care plans versus services offered by the Florida Healthy Start program.

“Overall, the report is extremely positive,” Catherine Timuta, chief executive officer of the Healthy Start MomCare Network, told Florida Politics Tuesday. “There weren’t any significant findings of duplication.”

OPPAGA began a review of the services the HealthyStart MomCare Network and statewide Medicaid managed care plans offer pregnant women to see if they were duplicating services and whether those services meet state and federal requirements.

To that end, OPPAGA researchers reviewed contracts between Medicaid-managed care plans and the Florida Association of Healthy Start Coalitions, which contracts with the plans on behalf of 33 local groups.

OPPAGA also reviewed Agency for Health Care Administration contracts, including one between AHCA and the Healthy Start MomCare Network, which holds contracts with the state on behalf of the 33 local Healthy Start Coalitions.

“These agreements show overlap between the entities in two areas: care coordination and data sharing,” the OPPAGA report notes.

Timuta noted, however, data sharing is mutually beneficial for the health plans and the coalitions, because it provides both entities with information on the enrollees and the services they receive.

To delve into the coordination of services, OPPAGA staff conducting the research also did follow up interviews with Healthy Start and representatives from Medicaid health plans to get additional details on the care coordination services provided. Eight of the nine health plans told OPPAGA there was no service duplication.

“While some services provided by health plans and Healthy Start may appear similar, Healthy Start and health plan staff reported that services provided via the two entities are largely distinct and complementary,” the report notes.

The Health plans and Healthy Start both provide home visits, but Healthy Start staff told OPPAGA researchers their program participants are visited at least once a month and are provided prenatal education, parenting education, interconception education, stress management education and screenings. The health plans told OPPAGA researchers home visits for health plans are short-term services and have a more medical focus.

AHCA, though, didn’t see things the same way.

According to the report, “AHCA staff reported that some services included in the AHCA-MomCare Network contract are also covered under the AHCA-health plan.”

However, the report notes that due to data limitations, the existence of duplication cannot be validated.

OPPAGA staff requested AHCA claims data in an attempt to verify whether service duplication is occurring. However, while Healthy Start services are contained in AHCA’s claims data, health plans reported that the services that may be considered comparable to Healthy Start (e.g., home visits and community referrals) are provided as part of care coordination, which is not a billed service and thus does not appear in the claims data,” the report notes. “Because data for services provided by health plans are not available in AHCA’s encounter data, claims data analysis cannot be used to validate whether there is service duplication between Healthy Start and the health plans.”

According to the report, OPPAGA requested agency staff to provide them with the procedure codes used by health plans to ascertain if there was a difference between social and medical service provisions, but the agency did not provide OPPAGA the information.

OPPAGA is the research arm of the Florida Legislature. It provides lawmakers with data, evaluative research, and objective analyses meant to inform policy decisions.

The report shows that in state fiscal year 2020-21, Medicaid health plans submitted data on 104,935 enrollees to the Florida Healthy Start, of which 66,191 matched a case in the Florida Healthy Start system.

Of those 66,191 women, about 73% of them, or 48,267, received at least one service. When asked about the women who didn’t receive services, Timuta, chief executive officer of the Healthy Start MomCare Network, said the program is voluntary.

The report comes as Florida lawmakers prepare to meet for the 2022 Legislative Session where work on the upcoming fiscal year 2022-2023 budget begins.

The 2021 Legislature appropriated $63.1 million to AHCA for Healthy Start services provided under the contract between AHCA and MomCare, a $21.9 million increase from the prior fiscal year. The funds covered a near $11 million deficit, which AHCA said was caused by COVID-19, and provided services to a growing number of women, infants, and children.

A review of Gov. Ron DeSantis’ proposed budget for fiscal year 2022-2023, though, shows the Governor is not recommending that the $21.9 million bump in funding be continued in the 2022-2023 budget, which lawmakers will work to create when they meet in Session in January.

Christine Jordan Sexton is a Tallahassee-based health care reporter who focuses on health care policy and the politics behind it. Medicaid, health insurance, workers’ compensation, and business and professional regulation are just a few of the things that keep me busy.

Clipped from: https://www.claytodayonline.com/stories/report-medicaid-health-plans-florida-healthy-start-dont-provide-same-services,32402

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Molina closes $60M acquisition of Cigna’s Medicaid contracts in Texas

MM Curator summary

[ MM Curator Summary]: Molina completes another acquisition, this time adding 50,000 lives.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 


Dive Brief:

  • Molina has completed its acquisition of rival health insurer Cigna’s Medicaid contracts in Texas, the California-based payer said Monday, as it continues to invest heavily in the safety-net insurance program.
  • The purchase price for the transaction was approximately $60 million in cash, according to a recent filing with the SEC.
  • Though Molina was already active in Texas, nabbing Cigna’s beneficiaries is a significant add: As of November, Cigna covered approximately 50,000 Medicaid beneficiaries in the state. Molina closed out 2020 with 357,000 members in Texas. 

Dive Insight:

Molina covers some 4.8 million people in the U.S., but Medicaid is the payer’s flagship business, representing more than three-fourths of its members (and premiums). The program has grown because of the pandemic, causing some players in Medicaid markets to ratchet up their investments and others to jump in for the first time.

Molina is known for being acquisitive, but has been on a tear as it looks to capitalize on this growth. Currently, the payer offers Medicaid plans in 18 states, with the greatest scale and revenues stemming from health plans in California, Ohio, Washington and Texas.

Moving to nab Cigna’s Medicaid contracts in Texas, first announced in April, is one such recent deal that should yield significant financial returns for Molina: Cigna’s some 50,000 Medicaid members in the state represent approximately $1 billion in annual premium revenue.

Along with recent contract wins in Nevada and Ohio, Molina also in October announced it had closed its acquisition of New York Medicaid health plan Affinity Health for approximately $380 million, and that it had entered into a definitive agreement to acquire AgeWell’s New York’s Medicaid managed long-term care business for approximately $110 million.

The AgeWell deal, which will add about 13,000 members to Molina’s rolls representing about $700 million in premium revenue, is expected to close by the third quarter this year.

Like most other major payers, COVID-19 ushered Molina to high profits in 2020, but more recently has negatively impacted the insurer’s finances. Molina’s net income in the third quarter of $143 million was down 23% year over year as the payer shelled out more for patient care than in the prior-year quarter.

Despite COVID-19’s volatility, Molina has been managing well in the markets, outperforming the S&P 500 last year. But the stability of the Medicaid rolls it’s so dependent on is a key area of interest for market watchers, as the longevity of the public health emergency will determine if and when a restart of Medicaid redeterminations will impact managed care organizations this year.

The Families First Coronavirus Act, passed in March 2020, gave states a temporary bump to their federal match funds in the Medicaid program as long as they ensured eligible beneficiaries stayed enrolled during the national emergency. That continuous coverage requirement contributed to Medicaid becoming the largest single source of insurance coverage in the U.S.

But when the emergency ends, states can resume redeterminations, potentially kicking millions off the safety-net insurance due to a change in income or other factors.

Molina said along with its third quarter financial release it expects the public health emergency to run at least through mid-January.

The payer’s Medicaid enrollment has ballooned to about 4 million members at the end of the third quarter, due primarily to the continuing suspension of redeterminations. Molina estimates that’s resulted in an increase of more than 700,000 Medicaid members since the beginning of the pandemic.

However, CEO Joe Zubretsky told investors in October the insurer expects to keep only half of those new Medicaid members gained during the pandemic after redeterminations are resumed nationwide.

Clipped from: https://www.healthcaredive.com/news/molina-closes-60m-acquisition-of-cignas-medicaid-contracts-in-texas/616674/

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Medicaid managed care bill drops on eve of 2022 Legislative Session

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[ MM Curator Summary]: A state legislator wants to pre-empt the MCO protest machine.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Sen. Jason Brodeur filed SB 1950, a 36-page proposal to reduce Florida’s number of Medicaid managed care regions — from 11 to eight — and require managed care plans to contract with two of the state’s cancer hospitals.

Filed Monday, the bill, in an attempt to blunt potential legal challenges to the nine-figure Medicaid procurement, contains language that would preclude any managed care plan from providing care to any of its enrollees until all administrative challenges to the procurement are settled.

Brodeur’s proposal would reconfigure the current 11 Medicaid-managed care regions.

The bill consolidates Medicaid Regions 1 and 2 into a Medicaid Region A. Medicaid Regions 3 and 4 will roll into the new Medicaid Region B. And Medicaid Regions 5 and 6 are rolled together into Region C. The rest of the Medicaid regions remain the same, with letters replacing numbers.

Florida requires most Medicaid beneficiaries to enroll in a managed care plan to receive services from the cradle to the grave. Only Medicaid-managed care organizations that win competitively bid Medicaid contracts in a region can provide the care. The current Medicaid managed care contracts expire on Dec. 31, 2023. The agency is gearing up to begin the new procurement process and work on the new Medicaid managed care contracts to replace the current agreements.

 
 

The bill comes weeks after Agency for Health Care Administration Secretary Simone Marstiller signaled the agency would push for some legislative changes to the program.

Marstiller asked lawmakers in the fall to include an additional $2 million in her agency’s fiscal year 2022-2023 budget to hire outside counsel.

Marstiller said she wanted funding available to the agency “at the ready” to ensure her team can employ the best outside legal help available.

The Senate bill does not propose any changes to the Medicaid dental program, although Medicaid Director Tom Wallace hinted the agency might want to pursue changes.

The bill also requires Medicaid-managed care plans to contract with Sylvester Comprehensive Cancer Center and Moffitt Cancer Center.

The Brodeur bill eliminates the state’s requirement to allow the public to have feedback before submitting Medicaid amendments to the federal government for review. AHCA told Florida Politics Tuesday the public comment requirement being eliminated from the bill was specific to creating the Medicaid managed care program. Federal law still requires a public comment period.

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Clipped from: https://floridapolitics.com/archives/485399-medicaid-managed-care-bill-drops-on-eve-of-2022-legislative-session/