2. Definition of Managed Care
A system of health care delivery that tries to manage the cost of
health care, the quality of health care, and the access to that care.
Common denominators include a panel of contracted providers that
is less than the entire universe of available providers, some type of
limitations on benefits to subscribers who use noncontracted
providers (unless authorized to do so), and some type of
authorization system. Managed health care is actually a spectrum
of systems, ranging from so-called managed indemnity through
PPOs, POS plans, open panel HMOs, and closed panel HMOs.
In 1973, fewer than one in every 25 privately insured Americans
were enrolled in a managed care plan, now two out of every three
privately insured Americans are in such a plan.
3. Reasons for an Authorization
System
Case review for medical necessity by the medical
management function of the plan.
Direct care to the most appropriate setting.
(Inpatient vs. Outpatient or in the provider’s office)
Provide timely information to the concurrent review
utilization system and the case management system.
Assist in the finance estimate of the accruals for
medical expenditures each month.
4. Authorization System
Has to define what services require
authorization and what do not.
Determine who has the authority to
authorize services for members:
PCPs
Plan’s Medical Director
The tighter the authorization process the
stronger the utilization management by
the payer/plan.
5. Authorization Types
Prospective
Issued before ay service is rendered
Concurrent
Allows for timely data collection and the
ability to impact the outcome
Retrospective
Issued after services are rendered
“Emergency Situations”
6. Authorization Types (cont.)
Pended (for review)
Determine the status of an authorization:
Medical necessity
Eligibility
Administrative review
Denial
Subauthorizations
Common with hospital based services
(Radiology, Pathology, Anesthesia)
7. Common Authorization Data Elements
Member’s name
Member’s birth date
Member’s plan identification number
Eligibility status
PCP
Referral provider’s name and specialty
Outpatient data elements
Referral or service date
Diagnosis (ICD-9-CM)
Number of visits authorized
Specific procedures authorized (CPT-4)
8. Common Authorization Data Elements (cont)
Inpatient data elements
Name of institution
Admitting physician
Admission or service date
Diagnosis (ICD-9-CM)
Discharge date
Subauthorizations
Hospital based providers
Other specialists
Other procedures/studies
Free text to be submitted to the claims dept.
9. Methods of Communication
Paper-Based System
Pre-printed paper forms through the mail
Telephone-Based System
Phone tag, busy signals, waiting on hold
Busy fax machines
Electronic System
Built in edits on-line
Claims submission most common
Authorization & Eligibility information available
Dedicated lines connected
10. Problems with Authorization Systems
Lack of standardization of required
information and format between the
insurance plans
Coordination among the players of the
paperwork
Ongoing changes
Administrative costs
Declining reimbursement
12. Application Service Providers
Integration of eligibility, authorization, referrals
Physician Offices and MCOs
Cost Savings
Medical Mutual of Ohio – reduce 10-12 FTEs = $600,000.
Time Savings
Authorizations from 30 minutes to 10 minutes
Reduction in errors
Improved Patient Satisfaction
One-Stop-Shopping
Diffuse Costs
13. Regulatory Issues
HIPAA – Health Insurance and
Accountability Act
Adminitrative Simplification
Standardization of Claims/Referral data
Format modified on every 12 Months
14. Web ROAR
ROAR – Referral or Authorization
Request
Keystone
Ranked 8th in Nation’s 25 Largest Individual
HMO Plans
1,151,224 members (1998)
16. Web ROAR Functionality
Submit referral and authorization
requests
Verify patient membership
Search for specialists, providers,
hospitals, or other facilities
List historical referrals/authorizations for
patients or practice
Track utilization patterns for practice
17. Web ROAR Main Menu
Request for Services
View Messages
Member History
Office History
Member Check
Specialist Check
Facility Check
Procedure Look up
Diagnosis Look up
Report Selection
Bulletin Board
Case/Disease Management
18. Web ROAR Flow
Web Roar Flow
Active Member
Search Window
Request for
Services Window
Summary/Verification
Window
ROAR
ConfirmationWindow
Fax/Hardcopy
Request Window
Specialty
Windows
Procedure Code
Search Window
Diagnosis Code
Search Window
CDM Referral
Entry Window
2 a
2b
4a
19. Web ROAR Limitations
Only Highmark enrollees
Carved Out MRI, Nuclear Cardiology, CT
scans
Primary Care offices – NOT hospitals,
specialists, or ancillary service providers
20. At Last……Managed Care
A system of health care delivery that tries to
manage the cost of health care, the quality of
health care, and the access to that care….
Without the wait and paperwork
hassle!!!!!!!!!!