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MCOs-Minnesota awarding contracts worth $5 billion to Medicaid health plans

MM Curator summary

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.

 
 

[MM Curator Summary]: Congrats to BCBS, HealthPartners, Hennepin Health, Itasca Medical Care, Medica, PrimeWest Health, South Country Health Alliance, UCare and United Healthcare Community Plan of Minnesota. This round is the first time for-profits have been able to bid, so this was a greenfield opp for UHC (even though it’s the home turf for the MCO giant).

 
 

From <https://www.echopress.com/news/new-managed-care-contracts-will-serve-600-000>

 
 

 
 

 
 

UnitedHealthcare

UnitedHealthcare has its headquarters in Minnetonka.

Minnesota has awarded contracts worth about $5 billion next year to health plans that will pay for and manage the medical needs of about 600,000 people.

The contract awards, which were announced this week by the state Department of Human Services, cover the primary health insurance programs for lower-income state residents outside the metro area.

Minnetonka-based UnitedHealthcare, which last year became the first for-profit HMO to win a contract in the public programs, was among the winners, picking up business in two counties.

Under the contracts, Eagan-based Blue Cross and Blue Shield of Minnesota and Minnetonka-based Medica will see even larger expansions. Bloomington-based HealthPartners, meanwhile, will no longer be an option in 22 counties across central and northern Minnesota.

For decades, Minnesota has hired HMOs and county-based purchasing organizations to manage care for enrollees in the public programs, which are jointly funded by the state and federal governments. While health plans can make money on the contracts, the funds mainly pay for health care services.

Before 2017, state law blocked for-profit HMOs from bidding on the contracts.

The latest procurement covered 80 counties in greater Minnesota for the families and children portion of MinnesotaCare as well as prepaid Medical Assistance (PMAP), which is Minnesota’s largest program for Medicaid beneficiaries. The insurance programs provide coverage for lower-income Minnesotans.

“These contracts are expanded to improve timely, equitable access to care,” Human Services Commissioner Jodi Harpstead said in a news release.

The state also awarded contracts to manage care across all counties for older adults and adults with disabilities who qualify for three smaller public programs.

Contracts are awarded on a county-by-county basis, which means residents choose from different sets of health plan options depending on what county they live in. With the new contracts, nearly 31,000 people in public programs will need to pick a new health plan or have one assigned to them.

Other contract winners include: Hennepin Health, Itasca Medical Care, PrimeWest Health, South Country Health Alliance and UCare. All health plans that currently have managed care contracts in the public programs will return for 2023 in at least one county.

HealthPartners remains an option in 12 counties, but decided to pull back its service area due to “the uncertainties the pandemic and federal public health emergency have created for the market,” the insurer said in a statement to the Star Tribune.

The Department of Human Services in conjunction with county officials scored bids, with priority placed on how the health plans will address “equity, eliminating disparities in health outcomes and responding to the needs of rural Minnesotans,” DHS said in a news release.

“For older Minnesotans and adults with disabilities, DHS prioritized stability and continuity of care by ensuring that these enrollees could keep their current health plans,” the department said.

Last year, UnitedHealthcare was among the winning bidders on contracts to manage care for about 700,000 people in the seven-county Twin Cities metro.

Altogether, managed care contracts in the state public programs account for about $8.7 billion in annual spending, with coverage provided for about 1.3 million residents.

 
 

Clipped from: https://www.startribune.com/minnesota-awarding-contracts-worth-5-billion-to-medicaid-health-plans/600213731/

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Rx- NYOH calls on NYSDOH to reverse Medicaid policy change

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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.

 
 

[MM Curator Summary]: A move to mail-order pharmacy for oncology drugs has very few fans.

 
 

 
 

Save Our Access, Save Our Lives Rally takes place on October 12

ALBANY, N.Y. (NEWS10) — There will be a Save Our Access, Save Our Lives rally on October 12 at 2 p.m. where The New York Oncology Hematology (NYOH) will call on the New York State Department of Health (NYSDOH) and state leaders to reverse a policy that has left Medicaid patients without access to life-saving cancer care medication.

NYOH will be joined by partner organizations, community leaders, and elected officials as they advocate for Medicaid recipients to regain access to life-saving oral cancer care medications through physician dispensaries. The rally is asking for support from legislators and representatives that can help resolve this problem for patients. Director of Pharmacy & Admixture Services for NYOH, Nancy Egerton comments on the situation by saying she’s “glad to have such a diverse group of people attending this rally.” Egerton hopes the outcome of this event is a positive resolution.

The New York State Department of Health (NYSDOH) made a policy change to their Medicaid Pharmacy Program that prevents Medicaid patients from obtaining their oral medications through their physician dispensary. This forces patients to receive their oral cancer medication prescriptions from a mail-order pharmacy, adversely affecting cancer patients’ care. According to the NYSDOH website, beginning in April 2023, all Medicaid consumers enrolled in Mainstream Managed Care will receive their prescription drugs through the Medicaid Fee-For-Service (FFS) Pharmacy Program. The FFS Program will allow NYS to pay pharmacies directly for the drugs and supplies of Medicaid consumers. The NYSDOH notified patients on September 1 leaving patients under Medicaid-managed care to try and go to an alternate source than their physician. The mail-order pharmacy creates problems and long waits for needed medication.

The NYOH are not considered a pharmacy but a dispensary not allowing patients to get their prescriptions filled at NYOH. The NYOH approached the NYSDOH about two years ago asking to be enrolled as a dispensary and allowing patients to get their prescriptions. August of 2022, the NYOH was informed that this enrollment was not going to happen.

Biden will order HHS to consider using Medicaid to support women seeking abortions across state lines

The rally will take place on October 12 at 2 p.m. at the West Capitol Park, 85 Swan Street, Albany. Many people such as Sabrina Mosseau, Executive Director, New York Oncology Hematology; Nancy Egerton, pharmacy manager, New York Oncology Hematology; representative from National Community Oncology Dispensing Association (NCODA); representative for Assemblymember Jake Ashby; representative for Senator Zellnor Myrie will be in attendance.

 
 

Clipped from: https://www.news10.com/news/albany-county/nyoh-calls-on-nysdoh-to-reverse-medicaid-policy-change/

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Rx- HCA delays Medicaid drug payment change – Washington State Hospital Association

MM Curator summary

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.

 
 

[MM Curator Summary]: Managing drug costs in Medicaid sounds good until you have to actually walk it out. The planned MCO rx-carve out in WA may be “evolving.”

 
 

Following WSHA’s and other stakeholders’ advocacy, the Washington State Health Care Authority (HCA) announced it would delay implementation of a plan to remove coverage of certain prescription drugs, including HIV antiviral drugs, oncology drugs, and Cystic Fibrosis drugs from Medicaid managed care contracts. WSHA advocated for HCA to rescind the proposed change, citing concerns about the impact on organizations’ ability to provide these specialized services to vulnerable populations. WSHA recommended HCA pursue alternatives to carving out the drugs from  managed care contracts that would not have as much impact on providers. HCA is in the process of submitting its managed care contracts and capitation rates to the Centers for Medicare and Medicaid Services for review.

The change, which was scheduled to be effective January 1, 2023, would have significantly reduced payment to providers that provide these drugs under the federal 340B program. These include disproportionate share hospitals, children’s hospitals, cancer centers, federally qualified health centers, and Ryan White clinics.  WSHA appreciates HCA’s attention and response to our advocacy.  (Andrew Busz, AndrewB@wsha.org)

 
 

Clipped from: https://www.wsha.org/articles/hca-delays-medicaid-drug-payment-change/

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MS- Medicaid: Proposed pay increase could help in-home nurses

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: MS may up private duty nursing rates by 15%- but only until the PHE ends.

 
 

Shavondra Smalley cares for her 8-year old daughter, Layla Smalley, at their home in Natchez, Miss., Wednesday, Aug. 3, 2022. Layla has pyruvate dehydrogenase deficiency and she requires 24 hour care. Credit: Eric Shelton/Mississippi Today

After three months and nearly losing her job, Shavondra Smalley of Natchez is hopeful her 8-year-old daughter can now get the medical care she needs so the mother can get back to work.

Smalley, who struggled to find nurses to care for her bed-bound daughter, is hopeful the situation will improve thanks to a proposed increase in pay from Medicaid for private duty nurses and rewritten doctor’s orders that specifically allow for the use of licensed practical nurses when registered nurses aren’t available.

The nursing shortage, exacerbated by high-paying travel and contract nursing jobs, meant very few nurses were interested in working for the meager hourly reimbursement rate approved by Medicaid for private duty nurses, who work one-on-one with patients in their homes. And confusion over some of the care Smalley’s daughter Layla was receiving prompted a months-long period where the licensed practical nurses (LPNs) who had been taking care of Layla for years were no longer allowed by Medicaid.

This left Smalley, a single mother, with no choice but to take an unpaid leave from her job to take care of Layla, who is bed bound. Her daughter requires 20 hours of nursing care a day because of complex medical conditions including a rare brain malformation called lissencephaly. 

On average, each week for the last three months, they had a nurse for about 40 of the 140 hours Layla needed, Smalley estimated.

“The main issue was my child needed care and me being a single mother, I needed to work,” said Smalley. 

READ MORE:
Nursing shortage, low reimbursement rates mean this 8-year-old can’t find care

Layla also suffers from scoliosis, chronic respiratory failure and pyruvate dehydrogenase complex deficiency, among other conditions. She is on a ventilator around the clock. 

She is enrolled in Medicaid’s Disabled Child Living at Home program, which allows certain disabled children with long-term disabilities or complex medical needs who live at home with their families to qualify for Medicaid. 

The state Division of Medicaid on Sept. 30 submitted an emergency amendment to the federal Centers for Medicare and Medicaid Services for a 15% increase in reimbursement rates for private duty nurses for as long as the federal Public Health Emergency lasts. The proposal is still pending before the federal government, but if approved, the increase will retroactively take effect as of Oct. 1. The amendment says the rate increase would be “to ensure that sufficient health care items and services are available to meet the needs of individuals enrolled in the respective programs… .” 

The Public Health Emergency could end as soon as mid-January, so the rate increase would expire at that point.

“We’re still evaluating private duty nursing rates post-Public Health Emergency, but doing the emergency amendment to the state plan is allowing us to be a little faster than what normally submitting things for federal approval is,” said Matt Westerfield, communications officer at the Division of Medicaid. “We’re attempting to provide as quick of a relief as we possibly can.” 

Currently private duty nurses are paid ranging from $17/hour for certified nursing assistants to $34/hour for registered nurses, or RNs. RNs who take care of patients on ventilators in the home – like Layla – are paid $51/hour. A 15% increase would mean the rates would rise to nearly $20/hour and $39/hour, and up to $58.65/hour for registered nurses taking care of patients on ventilators. 

Layla’s physician in September also rewrote a plan of care that calls for RNs but allows for LPNs when RNs are unavailable. The revised plan of care was originally denied by Medicaid, Smalley said, but she did what she’s been doing the past three months and picked up the phone, prepared to file an appeal. 

“I’d been speaking with a lawyer and she told me if I’m not happy with the services, I can file for an appeal,” Smalley said.

When she got the news the plan of care had been denied, she called Medicaid to initiate the process and left a message with the person who handles appeals.

“About 20 to 30 minutes later, I got a call from somebody completely different with Medicaid … who wanted to hear my side of the story. I explained to her what was going on and told her the doctor approved for there to be RNs and LPNs and (there has been clarification) that we’re not doing deep suctioning, and you all are still denying these services.”

There had also been confusion over whether nurses were performing a task called “deep stem suctioning” on Layla. Smalley and Layla’s caregivers also had to get clarity from the Board of Nursing that the tracheostomy care Layla receives is not deep right main stem suctioning that extends beyond the carina, a section at the bottom of the trachea, but is instead routine tracheostomy care. LPNs are not allowed to perform deep suctioning.

The next day, the employee called Smalley back and told her the care had been approved by Medicaid – days before Smalley’s employer told her if she wasn’t able to return to work the following week at the end of her leave, the job would have to be posted.

Smalley returned to work Monday – the same day her 12-week leave ended – and has the next several weeks of care lined up, she said. 

 
 

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SDoH- Doctors Prescribe Healthy Meals to Keep Patients Out of the Hospital

MM Curator summary

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.

 
 

[MM Curator Summary]: A look at the states that have tried to use Medicaid bucks for food, and what the Oregon waiver means for the overall effort.

 
 

 
 

Rita Scanlon, 92, talks to a Meals on Wheels driver at her home in Rhode Island. A handful of states are gearing up to provide similar meals through Medicaid for people with diabetes, congestive heart disease and other chronic illnesses. David Goldman
The Associated Press

Meals on Wheels had been delivering healthy meals to thousands of older adults in Portland, Oregon, for more than 50 years when a local hospital asked whether the group could cook similar meals for patients leaving the hospital after acute bouts of diabetes, heart disease and other chronic illnesses.

The answer was a resounding yes, according to Suzanne Washington, CEO of the local organization Meals on Wheels People. The group signed on with that Portland hospital five years ago and later agreed to provide meals for two others in the area.

Three years ago, data from the first hospital showed that patients with diabetes, congestive heart diseases and other chronic illnesses who received what are known as medically tailored meals were half as likely to be admitted to the hospital compared with those who didn’t receive meals, and the total cost of their care was substantially lower.

But medically tailored meals prescribed by hospital dieticians are still only a small fraction of the more than 8,000 meals the Portland nonprofit delivers daily.  

The federal government’s recent approval of Oregon’s request to modify its Medicaid program, the joint federal-state health insurance program for people with low incomes, could change that.

Oregon and other states have dabbled in Medicaid nutrition programs aimed at improving patients’ health in non-clinical, non-pharmaceutical ways, said Oregon Health Authority Director Patrick Allen in an interview with Stateline.

“But never have those efforts become a defined benefit in Medicaid that everyone who qualifies is entitled to receive,” he said. “This is a really big deal.”  

In the past decade, about a dozen states have cobbled together Medicaid and other funding to offer medically tailored meals and other nutrition programs on a limited basis. But none has made nutrition services available to substantial numbers of patients, as new efforts in several states would do.

Oregon’s $1.1 billion, five-year program will be available for youth with special needs and people experiencing homelessness. Along with housing and other social supports, the program will offer three medically tailored meals per day for up to six months for people with, or at risk of, diet-related illnesses.

Massachusetts also received federal approval under a wide-ranging $67 billion, five-year Medicaid waiver to provide food vouchers and medically tailored meals, as well as housing for children, pregnant women and women who have given birth in the past 12 months.

The Massachusetts waiver is groundbreaking because it allows Medicaid to pay for meals for the entire family — not just the patient, said Katie Garfield, director of whole person care at Harvard Law School’s Center for Law and Policy Innovation.

It’s well known that parents who receive medically tailored meals will share their food with children and older adults living in the household, reducing the effectiveness of those meals at healing the patient’s chronic condition, Garfield said.

“Allowing Medicaid to supply meals for the entire family is a major step forward,” she said.

Later this year, New York and Washington state are slated to receive approvals from the federal government for similar nutrition programs.  

Food Is Medicine

A regular diet of fruits, vegetables and other nutritious food has long been shown to stave off and treat chronic illnesses and promote healing after surgery. And unlike pharmaceuticals, nutritious food does not have side effects.

It’s also well established that a deficit of nourishing food is a major cause of health disparities among people with low incomes and people of color, who suffer disproportionately from heart diseases, diabetes and other deadly and debilitating illnesses. 

Local nonprofit groups have been providing healthy meals and reporting improved health outcomes since the mid-1980s, when groups in New York and San Francisco began providing meals for HIV patients to boost weight gain and help manage their symptoms.

But with few exceptions, Medicaid, which covers nearly 90 million people, has failed to allow large-scale coverage of healthy meals as a way of preventing and managing chronic disease. That’s despite numerous studies showing that medically tailored meals cut both prescription drug and hospitalization costs.

A handful of states are working to change that. And they’re counting on big savings in their health care budgets in the process.

In addition to Oregon and Massachusetts, California, Colorado, Georgia, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania and Washington are among the states that have experimented with a variety of Medicaid programs to help residents get the meals they need to prevent and treat diet-related diseases.

The Biden administration’s new emphasis on nutrition and health is expected to spur an expansion of limited Medicaid nutrition programs in states that already have them and encourage development of new food programs in states that don’t.

As part of a national strategy announced last month at a White House Conference on Hunger, Nutrition and Health, the Biden administration vowed to work with Congress to provide funding for medically tailored meals under Medicare, nutrition education and other nutrition programs under Medicaid, and improved access to nutrition and obesity counseling under both health care programs.

Cost Cutting

A major driver of health care costs, chronic diseases account for 81% of all hospital admissions, 91% of all prescriptions and 76% of all doctor’s visits, according to figures cited by several leading medical groups. More than half of Americans suffer from at least one diet-related chronic disease.

Research compiled by the Food is Medicine Coalition, a research and advocacy group, shows that only six months of dietary interventions such as medically tailored meals can reduce overall medical costs by 16%, or $220 per month per patient. That’s a result of 58% fewer emergency department visits, 49% fewer hospital admissions and 72% fewer nursing home admissions.

According to the research, only 1 in 10 adults are meeting Department of Agriculture dietary standards for fruits and vegetables. That’s primarily because millions of people either can’t afford healthy food or live in neighborhoods where it isn’t available. Many also lack the education to know which foods should be included in a healthy meal and don’t have adequate kitchens to prepare them in, food and nutrition experts say. 

Alissa Wassung, executive director of the Food is Medicine Coalition, said nonprofits in the field are “feeding people who are the sickest of the sick, who are driving a lot of the health care costs that we’re trying to address.”

It makes sense that using medically tailored meals to avoid costly prescription drugs and frequent emergency department visits would save millions in health care spending, Wassung said.

But despite the mounting evidence, only a tiny fraction of those who could benefit from food assistance are getting it, advocates say.

In addition to meals, some states have encouraged local health care providers to write fruit and vegetable prescriptions for diet-related conditions, providing vouchers physicians can give patients to purchase the food they need. Other states contract with local nonprofits to deliver fruit and vegetable boxes to families, along with instructions on preparing healthy meals.

In California, where a Medicaid waiver for healthy food programs was approved in 2021, more than 14 million people are covered by the federal-state program; 15% of them have diabetes.

“They could be on insulin for the rest of their lives, or we could reduce or eliminate the need for medication through food-based interventions,” said Katie Ettman, food and agriculture policy manager for the social justice nonprofit, the San Francisco Bay Area Planning and Urban Research Association, or SPUR.

“When we think about the scale of the opportunity to improve health through food interventions,” Ettman said, “it only works when we have funding through the health care system.” She and other advocates want Medicaid and other public and private insurance carriers to make nutrition services a part of their basic coverage, equal to pharmaceuticals and clinical care.

Another missing link, said Harvard’s Garfield, is a health care infrastructure that includes dietary screening procedures, diagnosis and billing codes and staff protocols for prescribing diet interventions. Once that’s established, she said, food interventions could become as commonplace as prescribing medications or performing surgeries to treat chronic conditions.

Next, Garfield said, a network of local food providers must be established to work with the health care system like drug stores that fill prescriptions.  

In Oregon, Meals on Wheels People stands ready to cook and deliver thousands more medically tailored meals every day as soon as the Medicaid program is ready to pay for them, Washington said. 

 
 

Clipped from: https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2022/10/12/doctors-prescribe-healthy-meals-to-keep-patients-out-of-the-hospital

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Rx- Nebraska Medicaid officials seek $16 million a year for new Alzheimer’s drug

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: The state is asking for more for this one drug than for its entire I/DD waiting list.

 
 

Nebraska officials are predicting that a controversial new Alzheimer’s drug could drive up state Medicaid costs by more than $16 million annually.

That includes the cost of the drug, Aduhelm, plus monthly intravenous infusions used to deliver the drug and the regular laboratory tests and brain scans needed to monitor its effects.

The cost of covering Aduhelm is among several issues listed in the Department of Health and Human Services budget request for the two-year period ending June 30, 2025. The submission of agency budget requests to the Governor’s Office kicked off the months-long process of crafting a new state budget.

While the $16 million request pales in comparison to the $2.5 billion annual cost of Nebraska Medicaid, the budget impact would be larger than the $15 million requested for the first year of HHS salary increases or the $11.9 million requested to serve 250 Nebraskans with developmental disabilities on the state’s waiting list.

According to the HHS request, state tax dollars would cover nearly $7 million of the cost, with the remaining $9 million coming from federal funds.

The federal Food and Drug Administration approved Aduhelm, the brand name for aducanumab, in June 2021. The drug is the first new Alzheimer’s drug approved in two decades and the first of a class of medications targeting the amyloid plaques that develop in the brains of Alzheimer’s patients.

The decision proved immediately controversial. Clinical trials showed that the drug reduced amyloid in the brain, which the FDA said is reasonably likely to slow the progression of the disease in Alzheimer’s patients.

“This could mean more time for individuals to actively participate in daily life, have sustained independence and hold on to memories longer,” said Angel Horton Frank, a spokeswoman for the Alzheimer’s Association of Nebraska.

Critics said the drug showed only mixed benefits in clinical trials leading up to the FDA decision, despite an initial price tag of $56,000 a year. Biogen, the drug’s manufacturer, has since cut the cost to about $28,200 a year. Critics also pointed out that the drug was approved through an accelerated FDA process.

In January, the Centers for Medicare and Medicaid Services announced that Medicare would cover Aduhelm only for people who get it through a clinical trial. That decision came as several private insurers announced that they would not cover the drug, labeling it experimental.

Federal law, however, requires Medicaid programs to cover nearly all FDA-approved drugs. As a result, the decision to sharply limit Medicare coverage of Aduhelm means the full cost of the drug and associated care will fall on Medicaid for qualifying patients.

Medicare is a federal health program for people 65 and older or with disabilities. Medicaid is a state-federal program for low-income people. For low-income seniors, Medicaid pays what Medicare does not.

Frank, the state Alzheimer’s Association spokeswoman, said the organization believes Medicaid should cover aducanumab.

“Americans living with Alzheimer’s disease are entitled to access FDA-approved therapies, just as are people with conditions like cancer, heart disease and HIV/AIDS,” she said.

The Alzheimer’s Association estimates that more than 35,000 people in Nebraska have Alzheimer’s or dementia, out of some 6 million people nationwide.

It’s unclear whether anyone in Nebraska has started using the drug. Nationally, doctors have been reluctant to prescribe it.

Frank referred that question to Dr. Daniel Murman, director of the University of Nebraska Medical Center’s memory disorders and behavioral neurology program. He said he has no patients getting the drug currently because of its cost and the lack of insurance coverage.

But he said the medical center will be part of a clinical trial of Aduhelm for people at early stages of the disease, making it possible for participants to qualify for Medicare coverage.

Murman expressed hope about the potential for drugs like aducanumab. Just this week, drugmakers Eisai and Biogen reported that a medication called lecanemab had slowed clinical decline in Alzheimer’s patients by 27% in clinical trials when compared with a placebo. Similar drugs are in varying stages of development.

“I am optimistic that this treatment approach will be an important breakthrough in the treatment of patients with Alzheimer’s disease who are at the earliest stages of their disease and if clinical benefits are confirmed, then this class of medications should be covered by Medicaid and other payers,” Murman said.

Myzette Howell discusses the process of caregiving for her parents Loretta and Percy Howell, who have diagnosed with Alzheimer’s Disease.

 
 

Clipped from: https://nonpareilonline.com/news/state-and-regional/nebraska-medicaid-officials-seek-16-million-a-year-for-new-alzheimers-drug/article_9ace8e7e-3b3a-5666-9331-3ffe7b8a6d29.html

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MA- Feds approve five-year, $67 billion Medicaid waiver

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: MA just got a gigantic influx of cash for its new waiver, and is working on a provider tax magic money feature to get even more.

 
 

Highlights: behavioral health, social needs integration, and hospital assessment

 
 

BOSTON, MA – January 25: Mass. Gov. Charlie Baker speaks at his State of the State address at the Hynes Auditorium on January 25, 2022 in BOSTON, Massachusetts. (Staff Photo By Stuart Cahill/Boston Herald)

Massachusetts will be able to invest tens of millions of dollars into primary and mental health care workforce development and offer continuous Medicaid eligibility for some vulnerable populations under a five-year, $67 billion Medicaid waiver federal officials approved Wednesday.

Gov. Charlie Baker joined officials from the Centers for Medicare and Medicaid Services to announce the new waiver deal, which lands just two days before the $52.5 billion waiver the Obama administration approved in 2016 was set to expire, and to tout what he described as “critically important elements” it includes.

Baker said Massachusetts “will be able to do many things under this waiver to expand both service delivery and capacity,” highlighting mental health care as an area particularly bolstered by the agreement that represents federal support to move beyond the basic contours of Medicaid requirements.

“I can’t put too big an exclamation point on this capacity question,” Baker said during a press call. “One of the biggest challenges we have with behavioral health is we haven’t funded it adequately for a very long time, which is one of the reasons why we don’t have enough clinicians in the field and why so many people have trouble accessing an appointment. This is going to give us the ability to invest $120 million over five years in loan repayment and residency training programs to strengthen and diversify the primary care and behavioral health workforce serving our MassHealth members.”

A Baker spokesperson said after the press call that the waiver actually allows investment of $43 million, not $120 million, in the loan repayment and training programs.

Congressman Richard Neal described the goals underpinning the waiver as “enhancing value-based care, advancing health equity, supporting safety net providers, and continuing the Commonwealth’s impressive near-universal health coverage.”

Many other states have Medicaid waivers, sometimes referred to as Section 1115 demonstration waivers, that allow them to tailor the public health insurance programs to more closely align with their specific preferences and needs.

The latest Massachusetts waiver, announced alongside a newly approved waiver for Oregon, will take effect Oct. 1 with the start of the new federal fiscal year and stretch well beyond Baker’s time in office.

Among the provisions officials highlighted are new measures to keep Medicaid accessible to Bay Staters at risk of falling through gaps in the system. MassHealth beneficiaries will be able to receive up to a year of continuous coverage when they are released from correctional settings like prisons and jails.

Those facing chronic homelessness can receive two years of continuous eligibility, which Baker said “is going to be really important to not just their home status, but also their capacity to focus on other things like trying to make themselves better and find their way to a better circumstance generally.”

CMS Deputy Administrator Dan Tsai, who spent more than six years running the Medicaid program in Massachusetts before he joined the Biden administration in June, said Wednesday that many people eligible for Medicaid lose their coverage after 12 months “not because they’re not eligible, but because they did not get a piece of paper in the mail or make it through the redetermination process.”

“We’re excited that both (Oregon and Massachusetts) are taking innovative, forward-leaning approaches to really thinking about making sure that eligible individuals maintain coverage for Medicaid,” Tsai said.

MassHealth, which combines Medicaid and the Children’s Health Insurance Program (CHIP) under one umbrella, is a massive program providing coverage to roughly 2 million people. It represents the largest cost driver in the annual state budget, accounting for nearly $19.5 billion — funded by both the state and federal government — of the $52.7 billion fiscal year 2023 budget Baker signed in July.

In addition to the primary and mental health care investment, Baker said the waiver will provide a “new framework” to integrate health-related social needs into programming and to incorporate nutritional and housing support services into the state’s accountable care organization (ACO) program.

CMS Administrator Chiquita Brooks-LaSure linked the waivers approved Wednesday to the White House Conference on Hunger, Nutrition and Health kicking off the same day, which Biden administration officials described as the first conference of its kind in more than half a century.

“These approved demonstrations are truly innovative and will ensure that Medicaid eligible people and families in these states can access meaningful, whole-person health care they need to thrive,” Brooks-LaSure said.

Another feature in the waiver, according to Baker, is approval of an assessment on larger acute care hospitals, which Baker’s deputies previously said would make more than $600 million available each year for hospitals to promote health equity.

“Yes, it does include the hospital assessment, and the goal and the expectation is that we will implement it as quickly as it possibly can,” Baker said. “It’s basically been statutorily authorized by the Legislature, and we were waiting for the waiver process to end before we’d be able to implement it. That does make it possible for us to increase our financial support for many of the hospitals that deal with a significant portion of the MassHealth population.”

The Massachusetts waiver also “supports a behavioral health roadmap” the Baker administration started to implement before the COVID-19 pandemic, Baker said.

“Obviously coming out of the pandemic, behavioral health issues are a screaming issue for everybody, I think, in the health care space and just generally,” he said.

 
 

Clipped from: https://www.lowellsun.com/2022/09/28/feds-approve-five-year-67-billion-medicaid-waiver/

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WA- Providence plans to reimburse Medicaid recipients who were mistakenly charged for care

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: The hospital will payback 760 Medicaid members who got calls from deb collectors, with interest.

 
 

 
 

Providence Sacred Heart Medical Center is seen on July 13, 2021. Providence will reimburse Medicaid patients whose accounts were sent to debt collection agencies as part of an “unintended error,” the system announced last week as it fights a lawsuit filed by the state Attorney General’s office over charity care issues and a New York Times investigation targeting its billing practices. (Jesse Tinsley/THE SPOKESMAN-REVIEW)

Providence Health & Services will reimburse the hundreds of Medicaid patients whose accounts were sent to debt collectors when they didn’t pay, the Renton, Washington-based health care provider with hospitals in Spokane announced last week.

Citing an “unintended error,” Providence’s chief financial officer said in a statement the nonprofit would be reaching out to the roughly 760 low-income patients who should have qualified for charity care but wound up being billed. The reimbursement will include interest.

“We deeply regret that this happened and are reaching out to those who were affected and issuing repayment, including interest,” Greg Hoffman, Providence’s chief financial officer, said in a statement sent to The Spokesman-Review, along with answers to questions prompted by a New York Times investigation published last week that found patients who should have received free or discounted care were given demands for payment.

Neither Providence nor the Washington Attorney General’s Office provided an exact number of affected patients at Providence Sacred Heart or Holy Family hospitals in Spokane, two of the largest health care facilities in the region. The Washington Attorney General’s Office in February sued Providence, alleging it had denied free and discounted medical care to low-income patients in violation of state law. That included not only Medicaid patients, but households making less than 200% of the federal poverty level who should have been entitled to what’s known as “charity care” under a state law that existed between 2018 and 2021, when the alleged violations occurred.

The law has since been amended to require Providence, and other similarly sized hospital systems, to provide free or reduced cost care to patients making less than 400% of the federal poverty level. That means individual patients who make less than $54,360 annually, or a family of four earning less than $110,000, are entitled to a discount.

“Our policy exceeds those requirements,” Providence said in a statement.

The lawsuit by the state Attorney General’s Office alleges that starting in 2018, Providence sent the accounts of more than 44,000 patients making between 151% and 200% of the federal poverty level to a debt collection agency in violation of what was state law. The amount of the charges was nearly $477 million across the system, which operates hospitals in Alaska, Washington, Oregon, Montana, California and Texas.

“Providence’s practices subjected some of the most low-income and vulnerable Washingtonians to aggressive attempts to collect payment by (debt collectors),” the lawsuit alleges.

To support their claims, the attorney general’s office filed with the court emails between senior staff in December 2019 in which one financial counselor raises concern about billing practices.

“We are sending the poor to bad debt and not treating them the same as other patients that would be uninsured for the days of admit prior to Medicaid (eligibility),” the counselor wrote.

Providence is fighting the lawsuit, which was filed in King County, calling it “a gross distortion of who and what (Providence) and their caregivers are, and what they do.”

The health care system said in its statement in response to questions about billing practices that it does not engage in “aggressive tactics such as reporting accounts to credit rating agencies and garnishing wages.” The system also said it includes on every bill information about how to apply for financial assistance, also in accordance with state law.

“In alignment with our heritage, values and mission, the Providence family of organizations continues to be here for everyone, regardless of their ability to pay,” Hoffman said in his statement.

The New York Times story included testimonials from five patients, including a former employee, who said they were billed despite being eligible for discounted care. They also interviewed two former employees who said they were pressured to collect payments from impoverished patients.

Providence said it was unable to discuss the cases of four of the five patients with reporters, because Providence had not obtained a necessary waiver from the patient to discuss their private health information.

“Providence is also reaching out to each of the patients featured in the article to talk with them about their experience and ensure they have the financial assistance they need,” Hoffman said in his statement.

Providence provided charity care to 266,000 patients, totaling $1.2 billion in uncompensated costs in 2021, the provider said in its statement. Providence Sacred Heart Medical Center posted a $57 million loss in the first quarter of 2022, according to a recent Health Department report.

A hearing in the state’s lawsuit against Providence is scheduled in a King County courtroom Oct. 28.

 
 

Clipped from: https://www.spokesman.com/stories/2022/oct/02/providence-plans-to-reimburse-medicaid-recipients-/

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OR- Oregon is guaranteeing kids won’t get kicked off Medicaid until at least age 6

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: Kiddos will stay on Medicaid until age six, no exceptions. Even if momma and daddy win the lottery and become millionaires on their 3rd birthday.

A newsletter briefing on the health-care policy debate in Washington.

 
 

 
 

A newsletter briefing on the health-care policy debate in Washington.

Good morning to everyone, especially these brown bears eating pounds and pounds of salmon to prepare for winter. Send your favorites to rachel.roubein@washpost.com

Today’s edition: The Centers for Disease Control and Prevention is officially expanding eligibility for the monkeypox vaccine. House Republicans are probing biosafety practices overseen by two key federal agencies. But first … 

Oregon wants to keep kids covered during their critical, early-stage development

A child receives the Pfizer-BioNTech coronavirus vaccine at the Fairfax County Government Center. (Chip Somodevilla/Getty Images)

Oregon is testing out a new concept in Medicaid: Keep children continuously enrolled in the safety net program until they turn 6 years old. 

The first-of-its-kind idea, to be piloted over five years, is designed to stop children from getting kicked off their health coverage during years crucial to their development. Federal health officials signed off yesterday on the program, which more states could emulate in the coming months. 

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“We have near universal health insurance coverage for senior citizens in this country,” said Bruce Lesley, the president of the First Focus on Children, an advocacy group. “Where we really would like to get with kids is that the public programs should basically assume coverage unless someone says, ‘No, I have private coverage.'”

Oregon’s pilot program comes at a critical moment for safety net coverage. Millions of children are at risk of losing their Medicaid coverage when the public health emergency for the coronavirus ends. Such a notion is already fueling a push in Congress to include policies in a year-end deal that would further maintain coverage for kids.

Joan Alker, the executive director of Georgetown’s Center for Children and Families:

The Biden Administration has approved Oregon’s transformative Section 1115 Medicaid request which will provide a major new support for young families. pic.twitter.com/ufBAKTkm8Z

— Joan Alker (@JoanAlker1) September 28, 2022

The details

The idea of continuous enrollment for kids isn’t new — it’s one advocates and some Democrats have been pushing for years. Over half of states have a requirement that kids can’t be kicked off their coverage for 12 months, even if a family’s income changes. 

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The point is to avoid a temporary loss of health coverage, known as churn.
It occurs frequently in Medicaid and the Children’s Health Insurance Program, and is essentially when people cycle on and off the programs in a short period of time, and can happen when a person’s income fluctuates, for instance.

  • Roughly 11.2 percent of children with full benefits are disenrolled and then subsequently re-enrolled within one year, according to the Kaiser Family Foundation. 

Now, Oregon is pioneering a new approach. The state will soon allow children to remain on Medicaid until their sixth birthday. After that, children 6 years old and older, as well as adults, can stay enrolled for two years at a time, regardless of changes in their finances or other family circumstances.

Will other states follow suit? Joan Alker, the executive director of Georgetown’s Center for Children and Families, said she’s “cautiously optimistic,” and some states have already begun to propose such policies.

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  • Washington state asked the federal Medicaid agency this summer for permission to cover children with Medicaid for the first six years of their lives.
  • New Mexico has drafted an application that would also provide continuous Medicaid enrollment up to age 6.
  • California lawmakers asked state officials to seek sign-off from the federal government to continuously cover children with Medi-Cal until they turn 5.
Challenges loom

Amid the coronavirus pandemic, Congress offered states a deal. They could get enhanced funding for their Medicaid programs from the federal government if they pledged not to remove anyone from the program’s rolls until the public health emergency ended.

States are already bracing for the complex process of determining who is still eligible for the programs whenever the public health emergency is over. Children and young adults are expected to be disproportionately impacted, with the Department of Health and Human Services predicting that 5.3 million could lose their Medicaid or CHIP coverage.

That’s already spurring advocates to push Congress to pass policies to keep kids covered in a year-end spending deal. A requirement that children can’t lose their coverage for a continuous 12 months was originally included in Democrats’ sweeping social spending bill but was ultimately left on the cutting room floor when the legislation was narrowed. And such a policy is a top priority for key party leaders, such as House Energy and Commerce Chair Frank Pallone Jr. (D-N.J.).

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  • “We’re hoping that people recognize that when the public health emergency ends, there’s going to be a lot of kids kicked off,” Lesley said. “Having 12-month continuous [coverage] would really help — not completely eliminate that — but it would help mitigate the loss of coverage for lots of kids.”

 
 

 
 

Clipped from: https://www.washingtonpost.com/politics/2022/09/29/oregon-is-guaranteeing-kids-wont-get-kicked-off-medicaid-until-least-age-6/

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Op-Ed- Rein in Medicaid, Medicare spending

 
 

MM Curator summary

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.

 
 

[MM Curator Summary]: The author says MCO rate setting bakes in errors and just compounds overpayments- and that actuaries themselves are at least partly to blame.

 
 

Back in 2010, the Affordable Care Act promised universal, affordable health care, and with only 8% now uninsured, it is on its way to deliver on half its promise. Yet affordability seems increasingly out of reach and will soon be more so as the feds end their extra subsidies.

In June, a U.S. House Energy and Commerce subcommittee empaneled a group of experts to explain why Medicare Advantage is becoming so expensive. The experts had no explanation.

But at the annual National Fraud and Forensic Conference, my friend and neighbor, Dr. Jacob Kuriyan – a scientist and health care executive I met 20 years ago while Deputy Secretary of NM Human Services (HSD) – offered a solid answer: overpayments to insurers.

Details of his analysis of 2014 Medicaid claims data, using a patented forecasting model he devised that discovered $250 million in overpayments to insurers, appeared in January’s Journal of Forensic and Investigative Accounting as “Anatomy of a Medicaid Fraud.”

The three key lessons learned in N.M.’s Medicaid managed care program apply to Medicare Advantage plans as well.

First, actuaries use statistics and probability and last year’s medical costs to estimate a person’s future medical needs and calculate a premium. But actuaries treat details of their calculations as “trade secrets” and so they must be independently verified.

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Second, to help verify, the feds require insurers to include in the claims the prevailing market costs for the medical services provided. If the total of medical market costs in all the claims is less than 85% of total premiums – also known as MLR or Medical Loss Ratio – then there is overpayment.

As Kuriyan explains in the paper, the N.M. Medicaid actuary, instead of following the federal suggestion, chose to use consolidated costs presented in the annual financial statements submitted to the state’s insurance commission and guess the “medical” and “other nonmedical” costs. Not surprisingly, they were wrong.

The third lesson is actually a call to action. When overpayments are detected, premiums must be recalculated and lowered so as not to “bake” the excesses into future premiums.

N.M. initially disputed but later discovered overpayments for subsequent years as well and recovered a total of $660 million for 2014-2017, as stated in the May 2019 report from the Legislative Financial Committee.

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After the recovery of $660 million, New Mexico inexplicably decided to change the rules and stop recovery of overpayments after 2017. While the feds allow this practice for Medicaid, recalculation is critical to prevent rise in subsequent insurance premiums.

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The cumulative impact of undetected overpayments helps explain the nationwide rise in managed care premiums for both Medicare and Medicaid. In the case of New Mexico, a $250 million overpayment in 2014, if uncorrected, can balloon into a billion dollars of excess insurer payments by 2022.

New Mexico using the same actuary who calculated the increased premiums to review and lower them is a case of the wolf guarding the ranch. Independent forensic accountants and actuaries with no conflicts must be recruited to do these recalculations.

These checks and balances are sorely needed to tether premiums. Otherwise, the Sept. 21 request by HSD for an additional $164 million for New Mexico Medicaid is only a down payment.

 
 

 
 

Clipped from: https://www.abqjournal.com/2537732/rein-in-medicaid-medicare-spending.html