Medicaid’s 3 Big Changes: Consequences for Consumers

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Presentation for Consumer Providers Association of New Jersey Tom Pyle, Advisor August 2013. Medicaid’s 3 Big Changes: Consequences for Consumers. What’s coming…. What’s coming…. Topic: National & State Change. The biggest changes in 50 years… How will consumers be affected? - PowerPoint PPT Presentation

Transcript of Medicaid’s 3 Big Changes: Consequences for Consumers

1

Medicaid’s 3 Big Changes: Consequences for Consumers

Presentation forConsumer Providers Association of New Jersey

Tom Pyle, AdvisorAugust 2013

2

What’s coming…

3

What’s coming…

4

Topic: National & State Change

The biggest changes in 50 years…

How will consumers be affected?

What should CPANJ advocate?

5

...To Ask Lynn Kovich

What 3 Key Questions...

6

The Whole Thing, in 20 Words...

THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

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The Whole Thing, in 20 Words...THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

8

The Whole Thing, in 20 Words...THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

9

The Whole Thing, in 20 Words...THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Exchanges Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

10

The Whole Thing, in 20 Words...THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Exchanges Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

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The Whole Thing, in 20 Words...THE NATIONAL THING... Health insurance for

all Individual Mandate Corporate Requirement

Help for those who need it Medicaid Exchanges Subsidies

THE STATE THING...

Comprehensive Waiver Consolidation: 8 1

B H to managed care Contracted FFS Medicaid rate setting

Merger of services MH + SUD

...From the Perspective of...

1. Beneficiaries

2. Providers

3. Agencies

4. Government

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Considered by... 5 Big Outcomes

1. Access2. Availabilit

y3. Quality4. Cost5. Innovatio

n

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Considered by... 5 Big Outcomes

1. Access2. Availabilit

y3. Quality4. Cost5. Innovatio

n

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Considered by... 5 Big Outcomes

1. Access2. Availabilit

y3. Quality4. Cost5. Innovatio

n

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Considered by... 5 Big Outcomes

1. Access2. Availabilit

y3. Quality4. Cost5. Innovatio

n

20

Considered by... 5 Big Outcomes

1. Access2. Availabilit

y3. Quality4. Cost5. Innovatio

n

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Dealing with... 10 Challenges

1. Coverage: As much?

2. Providers: Enough?3. Exchanges: Overlap?4. Transitions: Churn?5. “Woodwork Effect”?6. Measures: Of What?7. Outreach: Possible?8. IT: Too Complex?9. Deadlines: Too Tight?10.Agency $: Enough?

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Dealing with... 10 Challenges

1. Coverage: As much?2. Providers: Enough?3. Exchanges: Overlap?4. Transitions: Churn?5. “Woodwork Effect”?6. Measures: Of What?7. Outreach: Possible?8. Implement: Complex?9. Deadlines: Too Tight?10.Agency $: Enough?

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...and 1 Big Challenge

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What is Medicaid?

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An entitlement

Big funder of… Health care for poor, disabled Safety-net hospitals, LT care

Federal-state partnership FMAP: 50% to 83%

What is Medicaid?

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An entitlement

Big funder of… Health care for poor, disabled Safety-net hospitals, LT care

Federal-state partnership FMAP: 50% to 83%

What is Medicaid?

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An entitlement

Big funder of… Health care for poor, disabled Safety-net hospitals, LT care

Federal-state partnership FMAP: 50% to 83%

What is Medicaid?

What is “FMAP”?

Federal Medical Assistance Percentage:

% of Federal matching funds to state Medicaid.

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What is “FMAP”? ...For NJ

Federal Medical Assistance Percentage

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NJ: 50%

What is “FMAP”? ... Under ACA

Federal Medical Assistance Percentage:

For “new eligibles”:

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What is “FMAP”? ... Under ACA

Federal Medical Assistance Percentage:

For “new eligibles”:

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Till 2017: 100%

What is “FMAP”? ... Under ACA

Federal Medical Assistance Percentage:

For “new eligibles”:

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Till 2017: 100%

By 2020: 90%

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Medicaid: SMI Jersyans affected?(Substance Abuse and Mental Health Services Administration, 2013a)

10% (~42,000?)

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Medicaid: Expenditures FY 2010 (Centers for Medicare and Medicaid, 2012)

$404.1 billion

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By Contrast...

$404.1 billion $33.0 billion

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Medicaid as % of…(Foster, 2012)

GDP: 2.8%

Health spending: 15%

15%

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Segments % paid by Medicaid (Foster, 2012)

BH Funding: Medicaid’s Share (Substance Abuse and Mental Health Services Administration, 2013)

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Medicaid: Acute/LT Care 2009(Kaiser Commission on Medicaid and the Uninsured)

5 x

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Waste, Fraud, Abuse(Kaiser Commission on Medicaid and the Uninsured, 2012)

Overtreatment Failure of care coordination Failure of care process (Tx) Administration complexity Failure of pricing Fraud and abuse

At least 20% of costs...(~ $80 billion?...)

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Waste, Fraud, Abuse(Kaiser Commission on Medicaid and the Uninsured, 2012)

Overtreatment Failure of care coordination Failure of care process (Tx) Administration complexity Failure of pricing Fraud and abuse

At least 20% of costs...(~ $80 billion?...)

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Enrollment & Shares, 2010(Centers for Medicare and Medicaid et al., 2012)

~ 60 mm

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Overview: Role in state budgets

Counter-cyclical to economy

Largest source of federal revenue ( jobs)

Biggest target for state cost controls

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Overview: How Control Costs?(Substance Abuse and Mental Health Services Administration, 2013)

Medicaid an entitlement

States can only...

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Overview: How Control Costs?(Substance Abuse and Mental Health Services Administration, 2013)

Medicaid an entitlement

States can only... Reduce provider payments

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Overview: How Control Costs?(Substance Abuse and Mental Health Services Administration, 2013)

Medicaid an entitlement

States can only... Reduce provider payments “Manage” utilization

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Overview: How Control Costs?(Substance Abuse and Mental Health Services Administration, 2013)

Medicaid an entitlement

States can only... Reduce provider payments “Manage” utilization Restrict eligibility

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Medicaid: 5 Components(Kaiser Commission on Medicaid and the Uninsured)

Health insurance coverage 31 mm children; 16 mm adults; 16 mm E&D

Long-term care assistance 1.6 mm institutionals; 2.8 mm community-based

Assistance to Medicare beneficiaries 9.4 mm E&D (20% of Medicare enrollees)

Safety net & system funding 16% national health funding; 35% safety net

hospitals

Funding for state capacity FMAP

Health insurance coverage

Assistance to

Medicare beneficiar

ies

Long-term care assistanc

e

Safety net & system funding

Funding for state capacity

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Medicaid: 5 Components(Kaiser Commission on Medicaid and the Uninsured)

Health insurance coverage 31 mm children; 16 mm adults; 16 mm E&D

Long-term care assistance 1.6 mm institutionals; 2.8 mm community-based

Assistance to Medicare beneficiaries 9.4 mm E&D (20% of Medicare enrollees)

Safety net & system funding 16% national health funding; 35% safety net

hospitals

Funding for state capacity FMAP

Health insurance coverage

Assistance to

Medicare beneficiar

ies

Long-term care assistanc

e

Safety net & system funding

Funding for state capacity

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Medicaid: 5 Components(Kaiser Commission on Medicaid and the Uninsured)

Health insurance coverage 31 mm children; 16 mm adults; 16 mm E&D

Long-term care assistance 1.6 mm institutionals; 2.8 mm community-based

Assistance to Medicare beneficiaries 9.4 mm E&D (20% of Medicare enrollees)

Safety net & system funding 16% national health funding; 35% safety net

hospitals

Funding for state capacity FMAP

Health insurance coverage

Assistance to

Medicare beneficiar

ies

Long-term care assistanc

e

Safety net & system funding

Funding for state capacity

51

Medicaid: 5 Components(Kaiser Commission on Medicaid and the Uninsured)

Health insurance coverage 31 mm children; 16 mm adults; 16 mm E&D

Long-term care assistance 1.6 mm institutionals; 2.8 mm community-based

Assistance to Medicare beneficiaries 9.4 mm E&D (20% of Medicare enrollees)

Safety net & system funding 16% national health funding; 35% safety net

hospitals

Funding for state capacity FMAP

Health insurance coverage

Assistance to

Medicare beneficiar

ies

Long-term care assistanc

e

Safety net & system funding

Funding for state capacity

52

Medicaid: 5 Components(Kaiser Commission on Medicaid and the Uninsured)

Health insurance coverage 31 mm children; 16 mm adults; 16 mm E&D

Long-term care assistance 1.6 mm institutionals; 2.8 mm community-based

Assistance to Medicare beneficiaries 9.4 mm E&D (20% of Medicare enrollees)

Safety net & system funding 16% national health funding; 35% safety net

hospitals

Funding for state capacity FMAP

Health insurance coverage

Assistance to

Medicare beneficiar

ies

Long-term care assistanc

e

Safety net & system funding

Funding for state capacity

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Medicaid: 4 Constituencies

• Eligibility• Enrollment• Coverage• Cost

Consumers

• Rates• Autonomy• Referrals• Administration• Compliance

Providers

• “Rights”• “Access”• Administration• Quality• Cost

Governments

• Administration• Overheads• Compliance• Cash flow

Agencies

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Medicaid: 4 Constituencies

• Eligibility• Enrollment• Coverage• Cost

Consumers

• Rates• Autonomy• Referrals• Administration• Compliance

Providers

• “Rights”• “Access”• Administration• Quality• Cost

Governments

• Administration• Overheads• Compliance• Cash flow

Agencies

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Medicaid: 4 Constituencies

• Eligibility• Enrollment• Coverage• Cost

Consumers

• Rates• Autonomy• Referrals• Administration• Compliance

Providers

• “Rights”• “Access”• Administration• Quality• Cost

Governments

• Administration• Overheads• Compliance• Cash flow

Agencies

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Medicaid: 4 Constituencies

• Eligibility• Enrollment• Coverage• Cost

Consumers

• Rates• Autonomy• Referrals• Administration• Compliance

Providers

• “Rights”• “Access”• Administration• Quality• Cost

Governments

• Administration• Overheads• Compliance• Cash flow

Agencies

Review

3 Big Changes 5 Big Outcomes FMAP: NJ = 50% 2.8% of GDP 15% of all health spending W,F,A = 20% 18% beneficiaries 45% cost 5 Components 4 Constituencies

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Eligibility (3 kinds)

Category

Financial

Resource

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1. Category Eligibility: Required

Children Pregnant women Parents of certain children Seniors Individuals with disabilities

NOT childless non-elderly adults

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2. Financial Eligibility

2013 Federal Poverty Limit (FPL)

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2. Financial Eligibility

Family of 1: $11,490 x 133% =$15,282

Family of 4: $23,550 x 133% =$31,322

2013 Federal Poverty Limit (FPL)

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FPL by Class (US)(Kaiser Commission on Medicaid and the Uninsured)

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Eligibility: FPL by Class (NJ)(Kaiser Commission on Medicaid and the Uninsured)

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Eligibility: FPL (After ACA)(Kaiser Commission on Medicaid and the Uninsured; Tate, 2012))

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Eligibility: ACA’s effect(et al., 2013)

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3. Resource Eligibility (SSI)

< +

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Eligibility: Overlap!(Blahous, 2013)

Medicaid: < 138% FPL. Exchanges: > 100% FPL.

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Today’s enrollee demographics(Kenen, 2012)

Poor families with children 2/3rd of enrollees 1/3rd of spending

Elderly and disabled 1/3rd of enrollees▪ (including 70% of those in nursing

homes) 2/3rd of spending

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Enrollment demographics(Sommers & Epstein, 2010)

Eligibles: Nearly 1 in 3 not enrolled!

Enrolled eligibles: Highly variable by state

OK 44% MA 80%

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Enrollment demographics(Sommers & Epstein, 2010)

Eligibles: Nearly 1 in 3 not enrolled!

Enrolled eligibles: Highly variable by state

OK 44% MA 80%

NJ 53%

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Coverage

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Medicaid: Focuses on...

Services, not programs

Discrete and individual, not comprehensive

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Medicaid: Must Cover...(Substance Abuse and Mental Health Services Administration, 2013)

Inpatient hospital Outpatient hospital EPSDT Nursing facility Home health Physician Rural health clinic Federally qualified

health center (FQHC) Laboratory and X-ray Family planning Nurse midwife

Certified pediatric and family nurse practitioner

Freestanding birth center (when licensed or otherwise recognized by the state)

Transportation to medical care

Tobacco cessation and tobacco cessation counseling for pregnant women and youth under 21 as part of EPSDT

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Coverage: Previous (Garfield, Lave, & Donohue, 2010)

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Challenge: Less Coverage?(Garfield, Lave, & Donohue, 2010)

“Benchmark”EssentialBenefitscoverage

under ACA

Excludable

for newbiesunder ACA

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Rehab Option: Its Scope(Substance Abuse and Mental Health Services Administration, 2013)

Service Setting Type of Provider Extent of Coverage

78

“Rehab Option”: A Distinction(Substance Abuse and Mental Health Services Administration, 2013)

“Habilitative” services: to develop skills never acquired (as among DD population) Only through home and community-based

waiver

“Rehabilitative” services: to restore lost functioning (as among PD population) Not limited to clinical treatment

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Services Range

As per SAMHSA’s...

“Good and Modern Addictions and Mental Health Service System”

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Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physicial HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Where are the peer provider positions?

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Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Mobile crisisMedically monitored intensive inpxPeer-based crisisUrgent care23 hr. crisis stabilization24/7 crisis hotline

Where are the peer provider positions?

82

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Crisis residential/stabilizationClinically managed 24 hr careClinically managed med. Intense careAdult mental health residentialChildren’s mental health residentialYouth subtance abuse residentialTherapeutic foster care

Where are the peer provider positions?

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Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Substance abuse intensive outpxSubstance abuse ambulatory detoxPartial hospitalAssertive Community TreatmentIntensive home-base treatmentMulti-systemic therapyIntensive Case Management

Where are the peer provider positions?

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Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Individual evidence-based therapiesGroup therapyFamily therapyMultifamily therapyConsultation to caregivers (e.g., IFSS)

Where are the peer provider positions?

85

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Outpx medical servicesAcute primary careGeneral health screens, tests, etc.Comprehensive care managementCare coordination and health promotionIndividual and family supportReferral to community services

Where are the peer provider positions?

86

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Medication managementPharmacotherapy (incl. MAT)Laboratory services

Where are the peer provider positions?

87

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

AssessmentSpecialized evaluationsService planning (incl. crisis planning)Consumer/Family Education (e.g. IMR)Outreach

Where are the peer provider positions?

88

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Screening and referral to txBrief motivational interviewsParent trainingFacilitated referralsRelapse preventionWellness recovery supportWarm Line

Where are the peer provider positions?

89

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Parent/caregiver supportSkills building (social, ADLs, cognitive)Case managementBehavior managementSupported EmploymentPermanent Supported HousingTherapeutic mentoring, life coachingDay habilitation

Where are the peer provider positions?

90

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Personal careHomemakerRespiteSupported EducationTransportationAssisted livingRecreational services

Where are the peer provider positions?

91

Services Range

Acute IntensiveOut-of-home Residential

Intensive SupportOutpatient Services

Healthcare Home/Physical HealthMedication Services

Engagement ServicesPrevention

Community Support (Rehab)Other Support (Habilitative)

Recovery Support

Increasing Intensity of Medical and Behavioral Health Specialty

Increasing Intensity of Social and Community Services

Peer supportRecovery support coachingRecovery support center servicesSupports for self-directed careContinuing care for substance use disorders

Where are the peer provider positions?

92

Managed Care: 3 Types

1. Managed care organization (MCO)▪ Capitation: Per person per month▪ Risk: Who accepts it? State or vendor?

2. Primary care case management (PCCM)▪ Case management fee

3. Pre-paid Health Plans (PHP)▪ In-patient ▪ Ambulatory

93

Managed Care: Elements

Enrollment Benefits Usage Cost sharing (co-pays) Access Quality Accountability

96

Rates

Grants (Block

Grants)

Encounter-based (Medicaid FFS)

Case rates

Capitation rates (MCO)

97

Medicaid Managed Care: Prevalence(Kaiser Commission on Medicaid and the Insured, 2012)

Medicaid67%

New Jersey 97%

98

Managed Care: Policy Issues Eligibility What class? By what means? Enrollment Voluntary or mandatory? Education What? How? Choice Self-select or auto-assign? Access/availability Sufficient network?

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Managed Care: Policy Issues Eligibility What class? By what means? Enrollment Voluntary or mandatory? Education What? How? Choice Self-select or auto-assign? Access/availability Sufficient network?

Continuity Many visits or “one-and-done”? Coordination PH & BH; PCPs and

specialists Rates What level? Costs Risk or non-risk? State or

Federal? Monitoring Access? Quality? Cost?

Satisfaction?

101

Affordable Care Act

THE NATIONAL THING...

…bringing the biggest change in Medicaid since it began.

102

3 Years Later: 2/3rds Don’t Know!(Gold, 2013)

103

ACA: Goals(Tate, 2012)

Increase access

Control costs

Add benefits & protections

Address many smaller issues

104

ACA: 3 Legged Strategy

105

ACA: 3 Legged Strategy

1. Insurance reform Individual mandate

2. Exchanges + subsidies Subsidies for those at 100% -400% of

FPL

3. Medicaid expansion For adults < 138% of FPL

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ACA: 3 Legged Strategy

1. Insurance reform Individual mandate

2. Exchanges + subsidies Subsidies for those at 100% -400% of

FPL

3. Medicaid expansion For adults < 138% of FPL

107

ACA: 3 Legged Strategy

1. Insurance reform Individual mandate

2. Exchanges + subsidies Subsidies for those at 100% -400% of

FPL

3. Medicaid expansion For adults < 138% of FPL

108

Eligibility: FPL Limits by Class (US)(Kaiser Commission on Medicaid and the Uninsured)

109

Eligibility: FPL Limits by Class (NJ)(Kaiser Commission on Medicaid and the Uninsured)

110

Eligibility: FPL Limits (After ACA)(Kaiser Commission on Medicaid and the Uninsured; Tate, 2012))

111

Subsidies: Amounts by FPL

Income % of FPLPremium Cap as

a Share of Income

Income $ (family of 4)

Max Annual Out-of-Pocket Premium

Premium SavingsAdditional Cost-Sharing Subsidy

133% 3% of income $31,900 $992 $10,345 $5,040 150% 4% of income $33,075 $1,323 $9,918 $5,040 200% 6.3% of income $44,100 $2,778 $8,366 $4,000 250% 8.05% of income $55,125 $4,438 $6,597 $1,930 300% 9.5% of income $66,150 $6,284 $4,628 $1,480 350% 9.5% of income $77,175 $7,332 $3,512 $1,480 400% 9.5% of income $88,200 $8,379 $2,395 $1,480

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Expansion: Projected Enrollments(Centers for Medicare and Medicaid, 2012)

113

Expansion Effect: NJ Coverage (Rutgers Center for State Health Policy, 2012)

Change in Coverage in NJ under ACA (ages 0-64)

114

Rates

For PCPs only Family practitioners Internists Pediatricians

100%

Only for 2013, 2014

Also for managed care

115

US 0.72

WY 1.43AK 1.40DE 1.00PA 0.73CA 0.56NY 0.43

NJ 0.37

50t

h !

Rate Ratio (Zuckerman et al., 2009)

116

Innovation: Medicaid ACO

“Accountable Care Organization”

117

NJ’s Comprehensive WaiverGetting it all together

THE STATE THING...

118

NJ Medicaid

“Division of Medical Assistance and Health Services”

$11 billion (federal and state)

500 people

Director: Valerie Harr

119

NJ Medicaid: Enrollment

120

NJ Medicaid: Enrollment

121

Medicaid: The State Plan

Required by Section 1902(a) (30)(A)

71 elements Rates Methodology Comment periods

122

Waivers by Type(Centers for Medicare & Medicaid, 2013)

Section 1115 Research and

demonstration

Section 1915(b) Managed Care

Section 1915(c) Home and

Community Based

Concurrent 1915(b) & (c)

…for more “flexibility”

123

1115: NJ “demonstrations” (new)

Health homes Concentrated care...

Accountable Care Organizations (ACO) Coordinated, cost-effective care...

124

1915(b): Mandatory Managed Care (Howell, Palmer & Adams, 2012)

KEEP…

Can be mandated, with choice of plans

Rates must be “actuarially sound”

CHANGE…

AND

“Risk-based” payments and incentives

125

NJ’s Managed Care Companies

For physical health...

For behavioral health...

126

NJ’s Managed Care Companies

For physical health...

For behavioral health...

TBD

127

BH Managed Care ASO

One already exists! In DCF: “CSOC” 40,000 kids

Phase in to risk-based over 5 years

Administrative Services Organization

128

NJ Waivers: Previously (Centers for Medicare & Medicaid, 2013)

Section 1115 Research and

demonstration

Section 1915(b) Managed Care

(Mandatory)

Section 1915(c) Home and

Community Based

Concurrent 1915(b) & (c)

1. Childless adults2. Family coverage (SCHIP) ACOs

3. NJ Care 2000+4. NJ Family Care BH ASO

5. Global Options (LT care)6. Renewal Waiver7. Community Resources8. Community Care

Alternatives

129

NJ Waivers: Additional(Centers for Medicare & Medicaid, 2013)

Section 1115 Research and

demonstration

Section 1915(b) Managed Care

(Mandatory)

Section 1915(c) Home and

Community Based

Concurrent 1915(b) & (c)

1. Childless adults2. Family coverage (SCHIP) Accountable Care (ACO)

3. NJ Care 2000+4. NJ Family Care B H Managed Care

(ASO)

5. Global Options (LT care)6. Renewal Waiver7. Community Resources8. Community Care

Alternatives

130

NJ Waivers: Additional(Centers for Medicare & Medicaid, 2013)

Section 1115 Research and

demonstration

Section 1915(b) Managed Care

(Mandatory)

Section 1915(c) Home and

Community Based

Concurrent 1915(b) & (c)

1. Childless adults2. Family coverage (SCHIP) Accountable Care (ACO)

3. NJ Care 2000+4. NJ Family Care B H Managed Care

(ASO)

5. Global Options (LT care)6. Renewal Waiver7. Community Resources8. Community Care

Alternatives

131

NJ Waivers: Now (Centers for Medicare & Medicaid, 2013)

Section 1115 Research and

demonstration

Section 1915(b) Managed Care

(Mandatory)

Section 1915(c) Home and

Community Based

Concurrent 1915(b) & (c)

One Comprehensiv

e Waiver

132

PCP

T

CW

S

IN Px

Out Px

Primary Care

Specialist

Therapist

Case Worker

Hospital

PHP/IOP

LTCF LT Care Facility

Medicaid: Mechanics

133

Medicaid: The Old Way

134

Managed Care Organization (MCO)

135

Managed Care Organization (MCO)

Physical “Health Home”

136

Managed Care

137

Behavioral Health Home

DMHAS

138

Behavioral Health Home

DMHAS

“Behavioral

Health Home”

139

Managed Care After the Waiver?

DMHAS

Physical “Health Home”

“Behavioral

Health Home”

140

Managed Care After the Waiver?

DMHAS

Physical “Health Home”

“Behavioral

Health Home”

141

Managed Care After the Waiver?

DMHAS

142

Post Waiver: Unknown No. 1

“Fee for service”?

“Behavioral

Health Home”

Physical “Health Home”

143

Post Waiver: Unknown No. 2

Physical “Health Home”

“Behavioral

Health Home”

Integration?

144

Post Waiver: Unknown No. 3

Rates?

Physical “Health Home”

“Behavioral

Health Home”

145

10 Challenges for Consumers

146

1. Coverage: Less for Newbies? (Garfield, Lave, & Donohue, 2010)

147

1. Coverage: Less for Newbies? (Garfield, Lave, & Donohue, 2010)

“Benchmark”coverage

under ACA

148

1. Coverage: Less for Newbies? (Garfield, Lave, & Donohue, 2010)

“Benchmark”coverage

under ACA

Excludable

for newbiesunder ACA

149

1. Coverage: Less for Newbies? (Garfield, Lave, & Donohue, 2010)

“Benchmark”coverage

under ACA

Excludable

for newbiesunder ACA

Advocacy Question:

Shouldn’t newly eligible Medicaid-covered consumers receive the same

benefits as current Medicaid-covered

consumers?

150

2. Providers: Enough?

151

2. Providers: Rate Ratios(Zuckerman et al., 2009)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

152

US 0.72

WY 1.43AK 1.40DE 1.00PA 0.73CA 0.56NY 0.43

NJ 0.37

2. Providers: Rate Ratios(Zuckerman et al., 2009)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

153

US 0.72

WY 1.43AK 1.40DE 1.00PA 0.73CA 0.56NY 0.43

NJ 0.37

2. Providers: Rate Ratios(Zuckerman et al., 2009)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

154

US 0.72

WY 1.43AK 1.40DE 1.00PA 0.73CA 0.56NY 0.43

NJ 0.3750t

h !

2. Providers: Rate Ratios(Zuckerman et al., 2009)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

155

2. Providers: Supply = f(Rate Ratio) (Decker, 2012)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

% doctors accepting

156

2. Providers: Supply = f(Rate Ratio) (Decker, 2012)

𝑥=𝑴𝒆𝒅𝒊𝒄𝒂𝒊𝒅 𝑟𝑎𝑡𝑒𝑀𝑒𝑑𝑖𝑐𝑎𝑟𝑒𝑟𝑎𝑡𝑒

% doctors accepting

157

100%! …for PCPs and those they supervise… …even in managed care… …even for dual eligibles.

Result: 10-24% increase in accepting PCPs?

BUT:

Not for specialists (e.g., psychiatrists)

Only for 2013 and 2014 Extend? Measurement will be key…

2. Providers: “Rate Bump” For…?(Kaiser Commission on Medicaid and the Uninsured, 2012a)

= 100%

158

100%! …for PCPs and those they supervise… …even in managed care… …even for dual eligibles.

Result: 10-24% increase in accepting PCPs?

BUT:

Not for specialists (e.g., psychiatrists)

Only for 2013 and 2014 Extend? Measurement will be key…

2. Providers: “Rate Bump” For…?(Kaiser Commission on Medicaid and the Uninsured, 2012a)

= 100%

159

100%! …for PCPs and those they supervise… …even in managed care… …even for dual eligibles.

Result: 10-24% increase in accepting PCPs?

BUT:

Not for specialists (e.g., psychiatrists)

Only for 2013 and 2014 Extend? Measurement will be key…

2. Providers: “Rate Bump” For…?(Kaiser Commission on Medicaid and the Uninsured, 2012a)

= 100%

160

100%! …for PCPs and those they supervise… …even in managed care… …even for dual eligibles.

Result: 10-24% increase in accepting PCPs?

BUT:

Not for specialists (e.g., psychiatrists)

Only for 2013 and 2014 Extend? Measurement will be key…

2. Providers: “Rate Bump” For…?(Kaiser Commission on Medicaid and the Uninsured, 2012a)

= 100%

Advocacy Question:

Shouldn’t NJ set Medicaid rates sufficient to...

...attract more providers, especially specialists

(at least to 70% accepting new patients)?

...assure a living wage to community behavioral health sector workers,

especially peer providers?

161

3. Exchanges: FPL Overlap?(Blahous, 2013)

Overlap! Medicaid: < 138% FPL. Exchanges: > 100% FPL.

Partial expansion? All > 100% to exchanges, where no state funding needed…

HHS: 100% FMAP if states do partial? NO!

162

3. Exchanges: FPL Overlap?(Blahous, 2013)

Overlap! Medicaid: < 138% FPL. Exchanges: > 100% FPL.

Partial expansion? All > 100% to exchanges, where no state funding needed…

HHS: 100% FMAP if states do partial? NO!

163

3. Exchanges: FPL Overlap?(Blahous, 2013)

Overlap! Medicaid: < 138% FPL. Exchanges: > 100% FPL.

Partial expansion? All > 100% to exchanges, where no state funding needed…

NO! HHS: 100% FMAP if states do partial

164

4. Transitions: Coverage Churn?(Ingram, McMahon & Guerra, 2012)

Wages

Medicaid Exchanges: 35% of all adults below 200% FPL More for those with

SMI

Exchanges Medicaid: 28 million

165

4. Transitions: Coverage Churn?(Ingram, McMahon & Guerra, 2012)

Wages

Medicaid Exchanges: 35% of all adults below 200% FPL More for those with

SMI

Exchanges Medicaid: 28 million

Advocacy Questions:

How will consumers who get “churned”

be assured smooth and seamless coverage?

Who will help them? In what way?

What impact will “churning”have on consumer employment?

5. “Woodwork” Effect?(Castro, 2013; Alaigh, 2002)

234,000total

eligibles

(@ $8000 per)

FMAP = 100%

New eligibles vs. old eligibles not enrolled

166

5. “Woodwork” Effect?(Castro, 2013; Alaigh, 2002)

234,000total

eligibles

(@ $8000 per)

FMAP = 100%

New eligibles vs. old eligibles not enrolled

167

Advocacy Question:

Will unexpected costs (e.g. only 50% FMAP for old eligibles)

cause the State to cut its share of Medicaid funding?

168

6. Measures: Of What?

HEDIS: measure behavioral health? Healthcare Effectiveness Data and

Information Set

169

6. Measures: Of What?

HEDIS: measure behavioral health? Healthcare Effectiveness Data and

Information Set

BUT:

System metrics, not consumer metrics

170

6. Measures: Of What?

HEDIS: measure behavioral health? Healthcare Effectiveness Data and

Information Set

BUT:

System metrics, not consumer metrics

Advocacy Questions:

What specific consumer outcomesdoes the State propose to measure ?

Who will decide? When?

171

7. Outreach: Can It Succeed?(Sommers & Epstein, 2010)

Publicity hurdles 150 different languages in NJ Cultural differences

Application hurdles Multipage application Documentation of income and residency

Tracking hurdles ACA does not apply to incomes < IRS tax filing

threshold ($9,350 for singles, $18,700 for joint) = 50% of eligible uninsureds

172

7. Outreach: Can It Succeed?(Sommers & Epstein, 2010)

Publicity hurdles 150 different languages in NJ Cultural differences

Application hurdles Multipage application Documentation of income and residency

Tracking hurdles ACA does not apply to incomes < IRS tax filing

threshold ($9,350 for singles, $18,700 for joint) = 50% of eligible uninsureds

173

7. Outreach: Can It Succeed?(Sommers & Epstein, 2010)

Publicity hurdles 150 different languages in NJ Cultural differences

Application hurdles Multipage application Documentation of income and residency

Tracking hurdles ACA does not apply to incomes < IRS tax filing

threshold ($9,350 for singles, $18,700 for joint) = 50% of eligible uninsureds

174

7. Outreach: Can It Succeed?(Sommers & Epstein, 2010)

Publicity hurdles 150 different languages in NJ Cultural differences

Application hurdles Multipage application Documentation of income and residency

Tracking hurdles ACA does not apply to incomes < IRS tax filing

threshold ($9,350 for singles, $18,700 for joint) = 50% of eligible uninsureds

Advocacy Questions:

How specifically willuninsured consumers be reached?

How will private health and financial information be protected?

What role will consumer providers play?

What training will be required?

175

8. Implementation: Too Complex?

South Carolina’s IT Enterprise Strategy Map

176

8. Implementation: Too Complex?

South Carolina’s IT Enterprise Strategy MapAdvocacy Questions:

What assurance is NJ seeking that the Federal systems will be ready on time?

What privacy protections will be in place?

How will identity theft be prevented?

What state oversight (e.g., by DOBI)will be exercised?

177

Deadlines: Too Tight?

ASO: July 1! “Managed care”, but… Fee for service

“Go Live”: January 1! Medicaid Expansion Exchanges

178

Deadlines: Too Tight?

ASO: July 1! “Managed care”, but… Fee for service

“Go Live”: January 1! Medicaid Expansion ExchangesPOSTPONED!

179

Deadlines: Too Tight?

ASO: July 1! “Managed care”, but… Fee for service

“Go Live”: January 1! Medicaid Expansion ExchangesPOSTPONED!

Advocacy Questions:

Why is NJ setting Medicaid ratesbefore the ASO is established?

Why is NJ not permitting the ASOthis management flexibility so better

to help the agencies transition?

180

9. Compliance: Too Heavy?

Reporting

Documentation

Audits

Clawbacks

Penalties

181

9. Compliance: Too Heavy?

Reporting

Documentation

Audits

Clawbacks

Penalties

Advocacy Questions:

What is NJ specifically doing to help agencies

address conflicting auditing requirements?

What transition period will agencies have

to manage their compliance transitions

without onerous penalties?

182

10. Agency Cash Flow: Enough?

Reduced fees

Increased costs

New investments EMR Compliance Training

183

10. Agency Cash Flow: Enough?

Reduced fees

Increased costs

New investments EMR Compliance Training

Advocacy Question:

Why financial support (e.g., working capital)

will NJ provide to help non-profit agencies

manage the heavy investment requirements

of both the ACA and B H Managed Care?

184

1 Big Challenge for America

185

Entitlement Spending...

187

Outcomes

AccessAvailabilityQualityCostInnovation

188

Access

To the System

To Providers

To PsyR services

(To Insurance…)

189

Availability

Of basic care

Of specialty care

Of emergency care

Of evidence-based practices

190

Quality

Provider What level? What training? What experience? What supervision?

Process Simpler? Smoother?

191

Cost

Co-pays

Deductibles

Premiums

(Work incentives?)

192

Innovation

Practices

Medications

Technology

Management

193

Will Outcomes Improve?

194

Winners and Losers...  1     2     3 4 5 6

Mechanisms Medicaid     Private Insurance

    Insurance Exchanges

Cost Containment

Quality Improvement

Taxes

  Eligibility Change FMAP Increase rates Coverages Caps Cancellations        Elements                    Features More groups

Higher FPLs

FMAP to 100%, then 90% (instead of 50%) for new eligibles

Medicaid rates = 100% Medicare rates (instead of 72%)

10 basics

No lifetime caps No rescission Premium subsidies

Cost subsidies

Benefits Fewer uninsured

More costs paid by Federal gov’t

More incentive for PCP participation

More coverage More coverage for big problems

Durable coverage

“Affordable” premiums, lower costs.

Costs More waiting

Faster visits

More APNs

...but not for “old eligibles”

...but not for specialists, only for 2 years.

Applied to others

Applied to others

Applied to others

Very expense for Fed gov’t. Very complex. Very systems intensive. Pri-vacy issues.

Improve?                   Access Availability Quality Cost Innovation   Winners?                   Clients (old and new “elig-ibles”, and existing bene-ficiaries)

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

New:

Old:

Existing:

Providers   Agencies   Government State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal:

State:

Federal: Insurers

195

Conclusion?

196

References

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Averill, Patricia M., Ruiz, Pedro, Small, David R., Guynn, Robert W., & Tcheremissine, Oleg. (2003). Outcome assessment of the Medicaid managed care program in Harris County (Houston). Psychiatric Quarterly, 74(2), 103-114.

Bigelow, Douglas A., McFarland, Bentson H., McCamant, Lynn E., Deck, Dennis D., & Gabriel, Roy M. (2004). Effect of Managed Care on Access to Mental Health Services Among Medicaid Enrollees Receiving Substance Treatment. Psychiatric Services, 55(7), 775-779.

Cook, Judith A., Heflinger, Craig Anne, Hoven, Christina W., Kelleher, Kelly J., Mulkern, Virginia, Paulson, Robert I., . . . Kim, Jong-Bae. (2004). A Multi-site Study of Medicaid-funded Managed Care Versus Fee-for-Service Plans' Effects on Mental Health Service Utilization of Children With Severe Emotional Disturbance. The Journal of Behavioral Health Services & Research, 31(4), 384-402.

Coughlin, Teresa A., & Long, Sharon K. (2000). Effects of medicaid managed care on adults. Medical Care, 38(4), 433-446.

Cunningham, Peter J., & Nichols, Len M. (2005). The Effects of Medicaid Reimbursement on the Access to Care of Medicaid Enrollees: A Community Perspective. Medical Care Research and Review, 62(6), 676-696. doi: 10.1177/1077558705281061

Felix, Holly C., Mays, Glen P., Stewart, M. Kathryn, Cottoms, Naomi, & Olson, Mary. (2011). Medicaid Savings Resulted When Community Health Workers Matched Those With Needs To Home And Community Care. Health Affairs, 30(7), 1366-1374. doi: 10.1377/hlthaff.2011.0150

197

Gold, Marsha, & Mittler, Jessica. (2000). "Second-generation" Medicaid managed care: Can it deliver? Health Care Financing Review, 22(2), 29-47.

Kaye, H. Stephen, LaPlante, Mitchell P., & Harrington, Charlene. (2009). Do noninstitutional long-term care services reduce Medicaid spending? Health Affairs, 28(1), 262-272. doi: 10.1377/hlthaff.28.1.262

Keenan, Patricia S., Elliott, Marc N., Cleary, Paul D., Zaslavsky, Alan M., & Landon, Bruce E. (2009). Quality assessments by sick and healthy beneficiaries in traditional Medicare and Medicare managed care. Medical Care, 47(8), 882-888.

Liu, Heng-Hsian Nancy. (2012). Policy and practice: An analysis of the implementation of supported employment in Nebraska. Dissertation Abstracts International: Section B: The Sciences and Engineering, 72(7-B), 4324.

McCombs, Jeffrey S., Luo, Michelle, Johnstone, Bryan M., & Shi, Lizheng. (2000). The Use of Conventional Antipsychotic Medications for Patients with Schizophrenia in a Medicaid Population: Therapeutic and Cost Outcomes over 2 Years. Value in Health, 3(3), 222-231.

McFarland, Bentson H., Deck, Dennis D., McCamant, Lynn E., Gabriel, Roy M., & Bigelow, Douglas A. (2005). Outcomes for Medicaid Clients With Substance Abuse Problems Before and After Managed Care. The Journal of Behavioral Health Services & Research, 32(4), 351-367.

Norris, Margaret P., Molinari, Victor, & Rosowsky, Erlene. (1998). Providing mental health care to older adults: Unraveling the maze of Medicare and managed care. Psychotherapy: Theory, Research, Practice, Training, 35(4), 490-497.

Parks, Joseph J. (2007). Implementing practice guidelines: Lessons from public mental health settings. Journal of Clinical Psychiatry, 68(Suppl4), 45-48.

198

Parks, Joseph J. (2007). Implementing practice guidelines: Lessons from public mental health settings. Journal of Clinical Psychiatry, 68(Suppl4), 45-48.

Ray, Wayne A., Daugherty, James R., & Meador, Keith G. (2003). Effect of a mental health "carve-out" program on the continuity of antipsychotic therapy. The New England Journal of Medicine, 348(19), 1885-1894.

Wallace, Neal T., Bloom, Joan R., Hu, Teh-Wei, & Libby, Anne M. (2005). Medication treatment patterns for adults with schizophrenia in Medicaid managed care in Colorado. Psychiatric Services, 56(11), 1402-1408.

Wan, Thomas T. (1989). The effect of managed care on health services use by dually eligible elders. Medical Care, 27(11), 983-1001.

Warner, Richard, & Huxley, Peter. (1998). Outcome for people with schizophrenia before and after Medicaid capitation at a community agency in Colorado. Psychiatric Services, 49(6), 802-807.

West, Joyce C., Wilk, Joshua E., Rae, Donald S., Muszynski, Irvin S., Stipec, Maritza Rubio, Alter, Carol L., . . . Regier, Darrel A. (2009). Medicaid prescription drug policies and medication access and continuity: Findings from ten states. Psychiatric Services, 60(5), 601-610

199

Privacy

Navigators Training reduced from 30 t0 20 hours 20% of funding for navigators from

diversion from disease prevention. (Attorney Gen’l Bondi, FL)