Schedule VIIIB to House Health Approps.ppt

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Schedule VIIIB to House Health Approps.ppt

  1. 1. Agency for Health Care Administration Overview of Schedule VIIIB Reductions Phil Williams , Interim Deputy Secretary for Medicaid Presented to the House Health Care Appropriations Committee November 3, 2009
  2. 2. Agency for Health Care Administration – Budget Overview Total AHCA Budget FY 2009-2010 $18,239,862,302 Administration/ Support Services $28,622,163 Children’s Special Health Care $471,945,857 Executive Direction/ Support Services $142,465,545 Fiscal Agent Appropriations $78,274,844 Medicaid Services to Individuals $13,038,419,437 Medicaid Long Term Care $4,430,656,520 Health Facility Regulation $49,477,936 Non-Recurring General Revenue $273,726,574
  3. 3. Percentage of Agency Budget Spent on Administration ~ FY 2009-2010
  4. 4. General Revenue vs. Trust Funds Appropriations ~ FY 2009-2010
  5. 5. Agency’s Guiding Principles for Identifying Schedule VIII B Reductions <ul><li>Better manage utilization and find efficiencies. </li></ul><ul><li>Attempt to minimize impacts on beneficiaries. </li></ul><ul><li>Target most recent services and fee increases. </li></ul><ul><li>Maintain integrity of mandatory Medicaid services to avoid Federal compliance issues. </li></ul><ul><li>Examine optional Medicaid eligibility groups, consistent with Stimulus maintenance of eligibility requirements. </li></ul>
  6. 6. <ul><li>The federal government contributes 67.64% of every dollar spent on Medicaid services for FY 2009-2010. </li></ul><ul><li>For FY 2010-11, the blended FMAP will be 60.71% with an FMAP of 66.44% for July – December 2010 and an FMAP of 54.98% for January-June 2011. </li></ul><ul><li>Reductions of General Revenue result in a larger reduction to the providers or of services. </li></ul><ul><ul><li>Based on an FMAP of 67.64%: If there is a $1 million GR reduction, there is a total reduction of $3.9 million. </li></ul></ul><ul><ul><li>Based on an FMAP of 60.71%: If there is a $1 million GR reduction, there is a total reduction of $2.5 million. </li></ul></ul>Reality of Reductions
  7. 7. <ul><li>Within Medicaid, there are mandatory and optional services and mandatory and optional eligibility groups. </li></ul><ul><li>There is less flexibility to make changes to the mandatory services and mandatory eligibility groups. In some cases, level of service can be reduced, but not eliminated. </li></ul><ul><li>There are mandatory eligibility and services levels for Children and certain Pregnant Women – those mandatory groups MUST receive ALL medically necessary services. </li></ul>Reality of Reductions
  8. 8. Optional Medicaid Eligibility Groups <ul><li>Medicaid for Aged/Disabled up to 88% FPL </li></ul><ul><li>Institutional Care Program (ICP) </li></ul><ul><li>Home and Community Based Services (HCBS) </li></ul><ul><li>Medically Needy </li></ul><ul><li>Family Planning Waiver </li></ul><ul><li>Continuous Medicaid for children who become ineligible for Medicaid </li></ul><ul><li>Breast and Cervical Cancer Program </li></ul><ul><li>Children age 19-20 with income at the TANF eligibility level </li></ul><ul><li>Former foster care children age 18-20 </li></ul><ul><li>Pregnant women with income between 150% and 185% FPL </li></ul><ul><li>Presumptively Eligible Pregnant Women </li></ul><ul><li>Children under age one with family income between 150% and 185% of the FPL </li></ul>
  9. 9. Florida Medicaid Mandatory Services <ul><li>Advanced Registered Nurse Practitioner Services </li></ul><ul><li>Early & Periodic Screening, Diagnosis and Treatment of Children (EPSDT)/Child Health Check-Up </li></ul><ul><li>Family Planning </li></ul><ul><li>Home Health Care </li></ul><ul><li>Hospital Inpatient </li></ul><ul><li>Hospital Outpatient </li></ul><ul><li>Independent Lab </li></ul><ul><li>Nursing Facility </li></ul><ul><li>Personal Care Services </li></ul><ul><li>Physician Services </li></ul><ul><li>Portable X-ray Services </li></ul><ul><li>Private Duty Nursing </li></ul><ul><li>Respiratory, Speech, Occupational Therapy </li></ul><ul><li>Rural Health </li></ul><ul><li>Therapeutic Services for Children </li></ul><ul><li>Transportation </li></ul>Mandatory 40.22% of $17.9 Billion
  10. 10. Florida Medicaid Optional Services* <ul><li>Adult Dental Services </li></ul><ul><li>Adult Health Screening </li></ul><ul><li>Ambulatory Surgical Centers </li></ul><ul><li>Assistive Care Services </li></ul><ul><li>Birth Center Services </li></ul><ul><li>Children’s Dental Services </li></ul><ul><li>Hearing Services </li></ul><ul><li>Vision Services </li></ul><ul><li>Chiropractic Services </li></ul><ul><li>Community Mental Health </li></ul><ul><li>County Health Department Clinic Services </li></ul><ul><li>Dialysis Facility Services </li></ul><ul><li>Durable Medical Equipment </li></ul><ul><li>Early Intervention Services </li></ul><ul><li>Healthy Start Services </li></ul><ul><li>Home and Community-Based Services </li></ul><ul><li>Hospice Care </li></ul><ul><li>Intermediate Care Facilities/ Developmentally Disabled </li></ul><ul><li>Intermediate Nursing Home Care </li></ul><ul><li>Optometric Services </li></ul><ul><li>Orthodontic Services </li></ul><ul><li>Physician Assistant Services </li></ul><ul><li>Podiatry Services </li></ul>Optional 59.78% of $17.9 Billion <ul><li>Prescribed Drugs </li></ul><ul><li>Primary Care Case Management (MediPass) </li></ul><ul><li>Registered Nurse First Assistant Services </li></ul><ul><li>School-Based Services </li></ul><ul><li>State Mental Hospital Services </li></ul><ul><li>Subacute Inpatient Psychiatric Program for Children </li></ul><ul><li>Targeted Case Management) </li></ul>*States are required to provide any medically necessary care required by child eligibles.
  11. 11. Summary of FY 2009-2010 Schedule VIII B Reductions (10% Exercise) Given the ARRA stimulus maintenance of effort eligibility requirements that are in effect through the recovery period, which ends December 31, 2010, the Medicaid proposals reflect an annualized amount of savings, but are not effective until January 1, 2011.
  12. 12. Health Quality Assurance and Administrative Services FY 2009-2010 Schedule VIII B Reductions
  13. 13. State Operation of Facilities Call Center <ul><li>This issue proposes: </li></ul><ul><ul><li>Reduction of $354,273 from the Health Care Trust Fund. </li></ul></ul><ul><ul><li>Operation currently contracted to a private entity. </li></ul></ul><ul><ul><li>Current annual cost of contract $1,050,482. </li></ul></ul><ul><ul><li>In house operation would increase quality of complaint intake, improve efficiency and reduce costs to the state. </li></ul></ul><ul><ul><li>Requires 10 new FTEs. </li></ul></ul><ul><li>Total reduction: $354,273 </li></ul><ul><li>General Revenue: ($0) </li></ul><ul><li>Health Care Trust Fund: ($354,273) </li></ul>
  14. 14. Delete the Quality of Long-Term Care Facility Improvement Trust Fund <ul><li>This issue proposes: </li></ul><ul><ul><li>Delete authority for the Quality of Long-Term Care Facility Improvement Trust Fund. </li></ul></ul><ul><ul><li>Funds deposited are derived from federal civil monetary penalty receipts. </li></ul></ul><ul><ul><li>Funds used for projects related to care improvement in nursing homes. </li></ul></ul><ul><li>Total reduction: $1,000,000 </li></ul><ul><li>General Revenue: ($0) </li></ul><ul><li>Quality of Long Term care Facility </li></ul><ul><li>Improvement Trust Fund: ($1,000,000) </li></ul>
  15. 15. Decrease the Emergency Alternative Placement Allocation <ul><li>This issue proposes: </li></ul><ul><ul><li>Reduction of $470,091 from the Emergency Alternative Placement Allocation of the Health Care Trust Fund. </li></ul></ul><ul><ul><li>These funds can be used to make alternative placements of nursing home residents when an existing nursing home is closed by the state for regulatory non-compliance reasons.  The division has not spent all of the allocated budget in any year from the Resident Protection Trust Fund.  The proposed cut in this trust fund allocation would not harm patients or the mission of the Agency.  </li></ul></ul><ul><li>Total reduction: $470,091 </li></ul><ul><li>General Revenue: ($0) </li></ul><ul><li>Health Care Trust Fund: ($470,091) </li></ul>
  16. 16. Eliminate 5 FTEs from Administration and Support <ul><li>This issue proposes: </li></ul><ul><ul><li>Elimination of 5 FTEs from Administration and Support </li></ul></ul><ul><li>Total reduction: $332,143 </li></ul><ul><li>General Revenue: ($57,070) </li></ul><ul><li>Administrative Trust Fund: ($275,073) </li></ul>
  17. 17. FY 20010-2011 Schedule VIII B Medicaid Provider Rate Reductions All reductions are based on data from the August 2009 Social Services Estimating Conference
  18. 18. FY 2010-2011 Schedule VIII B Reductions to Medicaid Optional Services All reductions are based on data from the August 2009 Social Services Estimating Conference
  19. 19. Elimination of Podiatric Services <ul><li>This issue eliminates podiatric services as a covered Medicaid service. </li></ul><ul><ul><li>Services include routine foot care for persons with metabolic disease or circulatory impairment and surgical procedures. </li></ul></ul><ul><ul><li>Currently Medicaid beneficiaries can receive up to 2 podiatric visits per month. </li></ul></ul><ul><ul><li>Estimated 21,990 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><li>Total reduction: $3,112,847 </li></ul><ul><li>General Revenue: ($1,391,209) </li></ul><ul><li>Medical Care Trust Fund: ($1,711,443) </li></ul><ul><li>Other Trust Fund: ($10,195) </li></ul>
  20. 20. Elimination of Chiropractic Services <ul><li>This issues eliminates chiropractic services as a covered Medicaid benefit. </li></ul><ul><ul><li>Services include new patient visit, manipulation of the spine and spinal x-rays. </li></ul></ul><ul><ul><li>Currently Medicaid beneficiaries can receive up to 10 Chiropractic visits without prior authorization. </li></ul></ul><ul><ul><li>Estimated 8,777 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><li>Total reduction: $1,166,020 </li></ul><ul><li>General Revenue: ($521,123) </li></ul><ul><li>Medical Care Trust Fund: ($641,078) </li></ul><ul><li>Other Trust Fund: ($3,819) </li></ul>
  21. 21. Elimination of Adult Vision & Hearing Services <ul><li>This issue eliminates the Adult Vision and Hearing Services program: </li></ul><ul><ul><li>Adult Vision: </li></ul></ul><ul><ul><ul><li>Services include eyeglasses, eyeglass repairs as required, prosthetic eyes and medically necessary contact lenses. </li></ul></ul></ul><ul><ul><ul><li>Currently Medicaid beneficiaries can receive one pair of eyeglasses per recipient every two years, except a second pair may be provided during that period after prior authorization. Eyeglass lenses for adult recipients are limited to one pair of lenses per year. </li></ul></ul></ul><ul><ul><li>Adult Hearing: </li></ul></ul><ul><ul><ul><li>Services include diagnostic testing, cochlear implant services, hearing aid evaluation, repair and accessories and hearing aids. </li></ul></ul></ul><ul><ul><ul><li>Currently Medicaid beneficiaries can receive hearing aids one per ear per beneficiary every three years and cochlear implants are limited to one in either ear, but not both. </li></ul></ul></ul><ul><ul><li>Estimated 753,545 individuals would use these services in FY 2010-2011 </li></ul></ul><ul><li>Total reduction: $13,764,069 </li></ul><ul><li>General Revenue: ($6,067,218) </li></ul><ul><li>Medical Care Trust Fund: ($7,409,500) </li></ul><ul><li>Other Trust Fund: ($287,351) </li></ul>
  22. 22. Elimination of Coverage of Partial Dentures for Adults <ul><li>This issue eliminates coverage for partial dentures for Adults as part of the Medicaid covered adult dental program. </li></ul><ul><ul><li>Estimated 1,987 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><li>Total reduction: $825,851 </li></ul><ul><li>General Revenue: ($368,703) </li></ul><ul><li>Medical Care Trust Fund: ($450,273) </li></ul><ul><li>Other Trust Fund: ($6,875) </li></ul>
  23. 23. Elimination of Adult Dental Services <ul><li>This issue eliminates Adult Dental Services as a covered Medicaid Service. </li></ul><ul><ul><li>Services include partial dentures, comprehensive oral evaluations, full dentures and other diagnostic and surgical procedures. </li></ul></ul><ul><ul><li>Currently Medicaid beneficiaries can receive oral evaluations only for determining the need for dentures or acute emergency services. </li></ul></ul><ul><ul><li>Estimated 753,545 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><li>Total reduction: $16,264,371 </li></ul><ul><li>General Revenue: ($7,261,269) </li></ul><ul><li>Medical Care Trust Fund: ($8,867,713) </li></ul><ul><li>Other Trust Fund: ($135,389) </li></ul>
  24. 24. Elimination of Hospice Services <ul><li>This issue eliminates coverage of hospice services under the Medicaid program. </li></ul><ul><ul><li>Services include hospice care provided by a designated hospice, direct care services of a hospice physician and nursing facility room and board. </li></ul></ul><ul><ul><li>Currently once Medicaid beneficiaries elect hospice care, Medicaid will not reimburse for other Medicaid Services that treat the terminal condition. </li></ul></ul><ul><ul><li>Estimated 2,159 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><ul><li>This reduction reflects savings from elimination of hospice service and an offset for costs incurred by these recipients in other/ institutional settings. </li></ul></ul><ul><li>Total reduction: $74,163,320 </li></ul><ul><li>General Revenue: ($33,384,340) </li></ul><ul><li>Medical Care Trust Fund: ($40,770,125) </li></ul><ul><li>Other Trust Fund: ($8,855) </li></ul>
  25. 25. FY 2009-2010 Schedule VIII B Other Medicaid Reductions All reductions are based on data from the August 2009 Social Services Estimating Conference
  26. 26. Increase County Contributions for Medicaid Nursing Home Care <ul><li>Section 409.915, Florida Statutes, requires counties to reimburse the State a portion of the cost of county resident care in nursing homes. </li></ul><ul><li>Increase amount paid by counties from $55 per month to $202 per month for their Medicaid residents who are in nursing homes. </li></ul><ul><ul><li>$202 represents approximately 3.7% of monthly Medicaid costs. </li></ul></ul><ul><ul><li>Proportionally the same as the county contribution in late 1980’s. </li></ul></ul><ul><li>Total Reduction: $0 million </li></ul><ul><li>General Revenue: ($66,557,484) </li></ul><ul><li>Medical Care Trust Fund: ($66,557,484) </li></ul>
  27. 27. Primary Care Center Targeted Case Management Reduction <ul><li>Proposes to eliminate the Children’s Medical Services (CMS) Primary Care Center Targeted Case Management Program. </li></ul><ul><ul><li>Eliminates duplication in payment of case management fees for those enrolled in MediPass and in CMS. </li></ul></ul><ul><ul><li>Eliminates duplication in provision of case management services and payments of case management services funded through CMS administrative claiming. </li></ul></ul><ul><li>Total Reduction: $2,506,722 </li></ul><ul><li>General Revenue: ($1,128,526) </li></ul><ul><li>Medical Care Trust Fund: ($1,378,196) </li></ul>
  28. 28. Cost Reduction for Behavioral Health Overlay Services (BHOS) <ul><li>BHOS Services are mental health and substance abuse services for children and adolescents: </li></ul><ul><ul><li>In low to moderate risk Juvenile Justice commitment programs; or </li></ul></ul><ul><ul><li>Abused or neglected and placed in group child care residential settings. </li></ul></ul><ul><ul><li>Services: Individual, family and group therapy, substance abuse treatment and individualized interventions by mental health technician staff. </li></ul></ul><ul><li>Reduction is a result of: </li></ul><ul><ul><li>Limiting services to 6-days a week instead of 7-days a week. </li></ul></ul><ul><li>Total Reduction: $3,410,153 million </li></ul><ul><li>General Revenue: ($1,535,251) </li></ul><ul><li>Medical Care Trust Fund: ($1,874,902) </li></ul><ul><li>. </li></ul>
  29. 29. Collection of Manufacturer Rebates on J-codes <ul><li>Claims systems enhancement will capture specific validated National Drug Code (NDC) information for each claim paid through Physician Services for injectable drugs. </li></ul><ul><li>This will allow for rebate invoicing to bill manufacturers for rebates for all claims of this type. </li></ul><ul><li>Total Reduction: $1,694,490 million </li></ul><ul><li>General Revenue: ($762,860) </li></ul><ul><li>Medical Care Trust Fund: ($931,630) </li></ul>
  30. 30. Eliminate MediPass Case Management Fee <ul><li>MediPass providers currently receive a $2.00 monthly management fee for each enrollee who selects or is assigned to them in addition to regular fee-for-service reimbursement for health care services rendered. </li></ul><ul><li>This proposes the elimination of the MediPass $2.00 per member per month management fee. </li></ul><ul><ul><li>Estimated 962,740 individuals would use this service in FY 2010-2011. </li></ul></ul><ul><li>Total Reduction: $19,329,015 million </li></ul><ul><li>General Revenue: ($8,676,800) </li></ul><ul><li>Medical Care Trust Fund: ($10,598,351) </li></ul><ul><li>Other Trust Fund: ($53,864) </li></ul>
  31. 31. FY 2009-2010 Schedule VIII B Reductions to Medicaid Optional Eligibility Groups All reductions are based on data from the August 2009 Social Services Estimating Conference
  32. 32. Eliminate Eligibility for 19 and 20 year old Beneficiaries <ul><li>This issue eliminates optional coverage for children aged 19 and 20. These individuals use a wide range of services in many different appropriation categories. </li></ul><ul><ul><li>Optional eligibility group; 10,169 individuals </li></ul></ul><ul><li>Total Reduction: $25,107,261 </li></ul><ul><li>General Revenue: ($11,303,289) </li></ul><ul><li>Medical Care Trust Fund: ($13,808,972) </li></ul>
  33. 33. Eliminate Family Planning Waiver <ul><li>This issue eliminates optional coverage for the family planning waiver. </li></ul><ul><ul><li>This program extends contraceptive products and limited medical services to women who have lost Medicaid eligibility for up to two years. The women must be: </li></ul></ul><ul><ul><ul><li>ages 14-55; </li></ul></ul></ul><ul><ul><ul><li>at or under 185% of the federal poverty level; </li></ul></ul></ul><ul><ul><ul><li>not eligible for Medicare, Medicaid, State Children’s Health Insurance Program or commercial coverage; and still able to have children. </li></ul></ul></ul><ul><ul><li>These individuals use services in many different appropriation categories. </li></ul></ul><ul><ul><ul><li>Optional eligibility group; 60,940 individuals </li></ul></ul></ul><ul><li>Total Reduction: $7,930,019 </li></ul><ul><li>General Revenue: ($2,688,201) </li></ul><ul><li>Grants and Donations: ($842,014) </li></ul><ul><li>Medical Care Trust Fund: ($4,399,804) </li></ul>
  34. 34. Elimination of Medically Needy Program for Children and Pregnant Women <ul><li>This issue eliminates optional coverage for Medically Needy children and pregnant women. </li></ul><ul><li>Under statute, this program is currently reduced to coverage of women and children as of January 1, 2011. This proposal would eliminate that coverage. </li></ul><ul><ul><li>Optional eligibility group; 4,572 individuals. </li></ul></ul><ul><ul><li>Of these, 37 are children and 4,535 are pregnant women. </li></ul></ul><ul><li>Total Reduction: $146,984,046 million </li></ul><ul><li>General Revenue: ($62,192,200) </li></ul><ul><li>Medical Care Trust Fund: ($75,952,178) </li></ul><ul><li>Grants and Donations Trust Fund: ($8,839,668) </li></ul>
  35. 35. Eliminate the Breast and Cervical Cancer Treatment Program <ul><li>This issue eliminates optional coverage for women currently eligible for services due to a diagnosis of breast or cervical cancer through the Department of Health’s early detection program. </li></ul><ul><li>For fiscal year 2010-2011, there are an estimated 472 individuals who will use these services. </li></ul><ul><li>Total Reduction: $8,308,368 million </li></ul><ul><li>General Revenue: ($3,555,482) </li></ul><ul><li>Medical Care Trust Fund: ($4,392,848) </li></ul><ul><li>Grants and Donations Trust Fund: ($360,038) </li></ul>
  36. 36. Eliminate Eligibility for Pregnant Women Between 150-185 percent of the Federal Poverty Level <ul><li>This issue eliminates optional coverage for pregnant women with income of 150 percent up to 185 percent of the federal poverty level. These individuals use a wide range of services in many different appropriation categories. </li></ul><ul><ul><li>Optional eligibility group; 5,846 individuals </li></ul></ul><ul><li>Total Reduction: $56,771,456 </li></ul><ul><li>General Revenue: ($17,020,789) </li></ul><ul><li>Grants and Donations: ($480,555) </li></ul><ul><li>Medical Care Trust Fund: ($31,034,569) </li></ul><ul><li>Other Trust Fund: ($8,235,542) </li></ul>
  37. 37. Questions?

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