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1© 2016 EVANTAGE CONSULTING
212 THIRDAVENUENORTH
SUITE400
MINNEAPOLIS, MN 55401
TEL 612.677.0640
FAX 612.677.0641
EVANTAGECONSULTING.COM
Minnesota Public Programs in
an ACA World
February 2016
2© 2016 EVANTAGE CONSULTING
About this deck
The presentation discusses the current state of the Minnesota public insurance marketplace and
the recent work of the Minnesota Task Force on Health Care Financing. In addition to
observations, it offers recommendations for payers, providers, and the state.
This work is the result of Stuart Henry‘s observations of the the task force, research into state
program enrollment patterns, and years of experience implementing regulations into operational
environments.
About the author
Stuart Henry is a Senior Business Consultant at Evantage Consulting, a Minneapolis-based
business consultancy that provides strategic advisory, operational, and customer experience
services to help guide healthcare clients through complexity and change.
Introduction
3© 2016 EVANTAGE CONSULTING
I. Recent Events in the State of Minnesota Public Programs
Marketplace
II. Overview of Minnesota Task Force on Health Care Financing
III. Recommended Next Steps for Health Plans, Health Systems,
and the State of Minnesota
IV. Appendix: Complete Task Force Recommendations
V. Evantage Consulting: From Complexity to Confidence
Contents
4© 2016 EVANTAGE CONSULTING
Recent Events in the State of
Minnesota Public Programs
Marketplace
5© 2016 EVANTAGE CONSULTING
Striking the balance
Public programs and the commercial market
Commercial
Insurance
Public
Programs
Minnesota as a whole is trying to define the right mix of
commercial insurance and public programs.
6© 2016 EVANTAGE CONSULTING
Re-contracting for state programs
• The 2015 re-contracting effort for Medical Assistance and MinnesotaCare led to the
redistribution of approximately 300,000 members between different insurance
companies, creating opportunities for health plans that grew and those that scaled down
The Affordable Care Act
• The ACA changed the rules underpinning the individual health insurance market and its
relationship to state public programs, causing ripple effects throughout the market
• New risk sharing combinations intended to impact quality, cost, and patient experience
are in their infancy, with many questions to resolve
Minnesota Task Force on Health Care Financing
• The Minnesota Task Force on Health Care Financing was convened by the governor and
legislature to address questions about how state insurance programs and the private
market will provide coverage to Minnesotans into the future
Three big factors driving the public programs market
7© 2016 EVANTAGE CONSULTING
Overview of Minnesota Task
Force on Health Care
Financing
8© 2016 EVANTAGE CONSULTING
The governor and 2015 legislature created a task force on health care
financing to advise on strategies to increase access and improve the quality of
health care for Minnesotans. The initial goals for the evaluation and
recommendations were to:
• Encourage seamless consumer experience across all benefit programs
• Reduce barriers to accessibility and affordability of coverage
• Improve sustainable financing of health programs, including impact on the state budget
• Assess the impact of options for innovation on their potential to reduce health disparities
• Expand innovative health care purchasing and delivery systems strategies that reduce cost and improve
health
• Promote effective and efficient alignment of program resources and operations
• Increase transparency and accountability of program operations
The task force began meeting in August 2015 and concluded in January 2016.
• More than 40 public meetings were held, and each meeting allowed for public comment
• The final set of recommendations will be published in February 2016
Minnesota Task Force on Health Care Financing
9© 2016 EVANTAGE CONSULTING
Task force composition
The task force consisted of a variety of stakeholders broken into three workgroups
Health
Care
Financing
Task Force
Legislators
and
Government
Officials
Trade
Groups
Patient /
Consumer /
Policy
Advocates
County
Governments
Health Plans
Providers
1. Health Care Delivery Design and
Sustainability
2. Seamless Coverage Continuum and
Market Stability
3. Barriers to Access
Stakeholders Workgroups
10© 2016 EVANTAGE CONSULTING
Workgroup #1: Health Care Delivery Design and Sustainability
Purpose: Identify innovative health care delivery system strategies to
reduce costs and improve health outcomes
Key Recommendations:
• Further study ACOs and care collaboration efforts
• Enhance existing ACOs and Community Partnerships
Recommendations reflect wariness of moving forward with new
payment models for state health plan business
Vote: 5 in favor, 3 opposed
Neither member of the legislature voted for the recommendations
Topics Discussed:
Accountable Care Organizations (ACOs)
Community Partnerships
Health Information Exchange
Total Population Health
Value-Based Purchasing
Member Assignment to Providers
Members:
Rep. Matt Dean
Sen. John Marty
Allison O'Toole (CEO MnSure)
Rosemarie Roach (Executive Director MN Nurses Association)
Larry Schultz (CEO Lake Region Healthcare)
Jim Schowalter (President and CEO MN Council of Health Plans)
Dr. Todd Stivland (CEO Bluestone Physician Services)
Dr. Penny Wheeler (CEO Allina Health)
Summary: Some potential for savings by supporting existing efforts. Skepticism among some regarding the new
payment models, and their impact on disparities in care
11© 2016 EVANTAGE CONSULTING
Workgroup #2: Seamless Coverage Continuum and Market Stability
Purpose: Examine opportunities for providing and financing a seamless, affordable
and financially stable coverage continuum in Minnesota
Key Recommendations:
• Raise MinnesotaCare eligibility up to 275% of Federal Poverty Line
• Continue MinnesotaCare and MnSure (for now)
• Repeal sunset of MinnesotaCare provider tax
• Review MnSure performance after open enrollment
Vote: 7 in favor, 3 opposed, 1 abstained
Topics Discussed:
Premium and cost sharing
“cliffs” as members move
through Medical
Assistance,
MinnesotaCare, and
MnSure
Future of MinnesotaCare
and MnSure
Members:
Sen. Michelle Benson
Sen. Tony Lourey
Rep. Jennifer Schultz
Mike Rothman (Commerce Commissioner)
Sheila Kiscaden (Commissioner Olmsted County)
Lynn Blewett (Director U of M State Health
Access Data Assistance Center)
Peter Nelson (Director of Public Policy Center of the American Experiment)
Members:
Danette Coleman
(SVP & General Manager Individual Business Medica)
Phillip Cryan
(Executive VP SEIU Healthcare Minnesota)
Elizabeth Doyle
(Associate Director/Policy Director TakeAction Minnesota)
Molly Jungbauer (CEO Hollstadt & Associates)
Summary: Recommendation has potential to result in savings for state and improved experiences for patients.
Required tax extension and expansion of state programs may be controversial
12© 2016 EVANTAGE CONSULTING
Workgroup #3: Barriers to Access
Purpose: Identify opportunities to reduce barriers to accessing quality care that will
improve health outcomes in Minnesota
Key Recommendations:
• Create standardized plan designs for the exchange with lower deductible but
higher copays/coinsurance (to spread expenses throughout year)
• Change benefit designs to improve non-emergency transportation and dental care
• Improve community-based consumer assistance resources through expanded
network and culturally/ linguistically appropriate resources and tools
• Improve data collection on demographic attributes
• Improve coverage to unauthorized immigrants to the state
Vote: 5 Yes, 2 No (Representative Tara Mack [GOP] was absent)
Members:
Sen. Jeff Hayden
Sen. Kathy Sheran
Rep. Tara Mack
Dan Pollack (Deputy Commissioner Dept of Health
Monica Hurtado
(Health Equity/Racial Justice Organizer Voices for Racial Justice)
Scott Keefer
(VP Policy and Legislative Affairs BCBSMN)
Dr. Marilyn Peitso (Pediatrician CentraCare Health)
Chris Shneeman
(President Seven Hills Benefit Partners)
Topics Discussed:
Financial or structural
(geographic and cultural)
barriers to care for
special or harder to
reach populations.
Discussions in workgroup
#2 and #3 sometimes
overlapped regarding
benefit design.
Summary: Importance of recommendations understood. Some concern about lack of prioritization given
potential price tag.
13© 2016 EVANTAGE CONSULTING
Timeframe
Acting on task force recommendations
1/15
Work on recommendations that can be addressed without legislation
Early
Feb
2016
Task force presents
recommendations
3/18/16– 12/31/16 Legislative Session
Future actions based
on legislation
14© 2016 EVANTAGE CONSULTING
There are financial challenges for plan participants moving out-of-state programs into the
MnSure exchange
• Different approaches to solving that issue have different costs and impacts to a variety of stakeholders
Although the MnSure’s performance has been disappointing, a move to the Federal
Exchange appears to require dismantling MinnesotaCare
• Outsourcing some functions may still be an option
There are significant cultural, financial, and geographic barriers to care throughout the state
• Addressing those barriers will require multiple approaches
There are promising new risk sharing collaborations in the state, showing improvements in
care and cost reductions
• But skepticism remains based on experience outside of the state
Whether tasks force’s recommendations will be adopted is unclear given the legislative process
Conclusions
The Health Care Financing Task Force provided a deeper understanding around
different public policy options
15© 2016 EVANTAGE CONSULTING
Recommended Next Steps for
Health Plans, Health Systems,
and the State of Minnesota
Health plans: next steps/actions
Based on the current state of the market, Evantage recommends the following for health plans:
Need / Opportunity:
Evaluate impact and adjust operations to post
state-wide contracting marketplace
Why:
Plans gaining or losing members need to ensure that
current capabilities are scalable for larger or efficient
for reduced membership and provider base
Evantage Recommended Action:
1. Assess current capabilities from member acquisition and onboarding to renewal
2. Review operational and process metrics for new scale and set targets
3. Address stress points in the process where scale could create an issue for people, process, or
technology
4. Prioritize and develop plan for implementation and improvement work
Need / Opportunity:
Focus on the member experience as they transition
from a health plan’s public products into the
individual marketplace
Why:
There are significant opportunities to improve member
experience and create loyalty and engagement in order
to grow presence in the individual market
Evantage Recommended Action:
1. Review current member experience touchpoints from acquisition to renewal
2. Assess satisfaction vs. impact of key touchpoints in order to optimize for greatest impact
3. Prioritize and assign metrics for measuring success
4. Develop implementation plan with timeline for implementation outlining resources required
(people, captial and technology)
Providers and health systems: next steps/actions
Based on the current state of the market, Evantage recommends the following for providers and
health systems:
Need / Opportunity:
Evaluate current ACO models’ impact on care,
quality, and cost
Why:
Best practices are starting to emerge and many do
not have the processes or procedures in place for
sustainable growth and impact
Evantage Recommended Action:
1. Assess ACO process and develop metrics based on best practices to measure impact
2. Prioritize areas of need to sustain scale
Need / Opportunity:
Determine how “value-based” payment
methodologies will impact future products and
services
Why:
Early adopters will have tested the processes to
ensure positive outcomes that create transparency
with stakeholders, and will be the most prepared to
establish the collaborative and integrated models
with new and established partners
Evantage Recommended Action:
1. Evaluate current model, if in place, and start to document requirements where change is required
2. Assess roadblocks, risks and failures and create mitigation plans so as to create a sustainable model
for growth
State of Minnesota: next steps/actions
Based on the current state of the market, Evantage recommends the following for the State of
Minnesota:
Need / Opportunity:
Enhance and strength the navigator program to
create a sustainable and scalable model
Why:
The success of the current program has highlighted
areas of deficiency, including scalability for increased
and diverse member needs
Evantage Recommended Action:
1. Assess current program for deficiencies across capabilities, metrics and outcomes
2. Prioritize areas for improvement based on critical criteria addressing scalable needs and resource
requirements
3. Develop roadmap and implementation plans for implementing change with key milestones for
measuring success based on priorities
Need / Opportunity:
Study and recommend action on stabilizing the
individual market place
Why:
Customer needs and information expectations are
changing as members enter a new market space with
a broad continuum of understanding of criteria that
is helpful in order to make a personal decision
Evantage Recommended Action:
1. Use market framework to evaluate current experience, market forces and capabilities in the current
market place. Identify areas of need based on criteria evaluated for process, people, technology
and information
2. Outline a road map for improvement highlighting key stakeholders to be involved and resource
requirements
19© 2016 EVANTAGE CONSULTING
Appendix
Complete List of Task Force Recommendations
20© 2016 EVANTAGE CONSULTING
Removing Barriers to Access to Coverage and Care and Addressing Disparities
Recommendation 1: Improve and enhance community based consumer assistance resources, including Navigators, consumer
assisters and agents/brokers:
• Develop expanded community based, consumer assistance capacity to support consumers in accessing health coverage,
understanding how to use their health coverage, and addressing social determinants of health (e.g., food and nutrition,
housing);
• Provide adequate and timely payment to, and appropriate training for, community based consumer assisters;
• Utilize currently available race/ethnicity/data to identify type and level of consumer needs and target deployment of
consumer assistance resources; and
• Ensure that the State’s selection of Navigators prioritizes entities able to provide linguistically and culturally appropriate
assistance and that new state-developed consumer assistance tools are culturally and linguistically appropriate.
Recommendation 2: Create benefit alignment across the coverage continuum and provide access to high value benefits:
• Transportation
– Provide non-emergency medical transportation (NEMT) as a covered benefit in MinnesotaCare.
– Build volunteer transportation provider capacity through a grant program.
– Assess the impact of enacted NEMT legislation on improving access to care and provider capacity.
• Dental
– Require that QHP issuers make available dental benefits on par with coverage in Medical Assistance and MinnesotaCare.
– Seek 1332 waiver to allow QHP enrollees to apply Advance Premium Tax Credits/ Cost Sharing Reductions to available
dental coverage.
– Raise Medical Assistance dental reimbursement rates.
Task Force Recommendations (1-2)
21© 2016 EVANTAGE CONSULTING
Removing Barriers to Access to Coverage and Care and Addressing
Disparities (cont’d)
Recommendation 3: Evaluate the impact of 2015 telemedicine (health) legislation on payment for and access to broad based
telehealth/telemedicine (including mobile applications) services and effectiveness in addressing geographic barriers and health
disparities.
Recommendation 4: Improve demographic data collection and reporting to inform development of solutions to address
disparities in health access and care:
• Ensure that all Minnesota health data collection and reporting systems including state agencies, providers, payers, and
systems that collect health data comply with the State Quality Reporting and Measurement System’s (SQRMS’) standardized
best practices (i.e., allowing patients to identify themselves, allowing a multi-racial category) for collection and reporting of
race, ethnicity, language and country of origin data and data elements.
• Charge MDH with development of a standardized set of additional socio-economic measures affecting health and health
disparities.
• Develop mechanism for continuous improvement of health data collection and reporting in partnership with racial and ethnic
communities disproportionately affected by disparities.
Recommendation 5: Provide access to coverage for uninsured, low-income individuals ineligible for Medical Assistance,
MinnesotaCare and QHPs through MNsure due to immigration status by using State funding to provide MinnesotaCare benefits to
children and adults with incomes up to 200% FPL.
• Provide coverage for services included in the elderly waiver package and nursing facility benefits to individuals under 138%
FPL who are eligible for these benefits.
• In all instances, maintain confidentiality of applicants to ensure information collected is only used for health coverage and
maximize available federal funding (i.e., federal funding for EMA and coverage of lawfully present MinnesotaCare individuals 0
– 200% FPL).
Task Force Recommendations (3-5)
22© 2016 EVANTAGE CONSULTING
Removing Barriers to Access to Coverage and Care and Addressing
Disparities (cont’d)
Recommendation 6: Rationalize affordability definition for families with access to employer sponsored insurance (ESI) (i.e., fix the
“family glitch”), provided, however, that there is no impact on employer tax penalty related to affordability of coverage for
dependents.
Recommendation 7: Adopt 12 month continuous eligibility for Medical Assistance & MinnesotaCare enrollees. (This only applies
to Medical Assistance enrollees eligible under a MAGI-income basis.)
Improving Affordability of Coverage and Care for Consumers
Recommendation 8: Require standard Qualified Health Plan offerings in the Marketplace to improve consumer choice and
experience and ensure availability of no- or low-deductible options. Look to federal standardized designs as a potential model.
• Require carriers to offer low and no deductible plan options, in addition to other products they choose to offer.
• Require carriers to offer standard plan designs that exempt certain services from deductibles to incentivize utilization of
primary care and other high value preventive services.
• Study option of 1332 waiver to allow for 60 to 100% actuarial value and how this will improve consumer choice.
Recommendation 9: Improve affordability and reduce the cliff in premiums, cost-sharing and deductibles for health coverage at
200% FPL in Minnesota’s coverage continuum by establishing a Minnesota-tailored health coverage affordability scale and provide
enhanced subsidies to consumers with incomes 200 to 275% FPL (pre-ACA MinnesotaCare eligibility levels).
Recommendation 10: Expand MinnesotaCare up to 275% FPL, using the recommended affordability scale under
Recommendation 9 for those between 200 and 275% FPL, and maintain Marketplace coverage for consumers >275% FPL.
Task Force Recommendations (6-10)
23© 2016 EVANTAGE CONSULTING
Sustainably Financing the Coverage Continuum
Recommendation 11: Seek Medicaid match to provide additional federal funding for enhanced subsidies to the MinnesotaCare
population with incomes from 138 to 275% FPL.
Recommendation 12: Repeal the sunset of provider tax to continue a dedicated state funding stream to support health care for
low-income Minnesotans. With continuation of the provider tax, establish more stringent parameters for: (a) uses of Health Care
Access Fund (HCAF) revenue and (b) the mechanism for contingent tax reduction based on program funding needs.
Recommendation 13: Expand the MNsure user fee to on- and off-Marketplace products, provided that the Legislature statutorily
reduces the user fee/premium withhold level.
Assessing the Future of Mnsure
Recommendation 14: The Task Force does not recommend transitioning to either the Federally Facilitated Marketplace (FFM) or
Supported State-Based Marketplace (SSBM) at this time. A partially-privatized State-Based Marketplace (SBM) model could be
considered following the evaluation of MNsure’s 2016 open enrollment period. Therefore, the Task Force recommends continuing
a SBM at this time.
Recommendation 15: Develop framework to evaluate MNsure’s 2016 open enrollment period performance, including the criteria
listed in this report and in Appendix N.
Recommendation 16: Codify the current IT executive steering committee structure for overseeing the IT modernization plan,
including MNsure’s IT system.
Task Force Recommendations (11-16)
24© 2016 EVANTAGE CONSULTING
Ensuring Stability of the Insurance Market
Recommendation 17: The Department of Commerce should explore options to stabilize Marketplace premiums by:
• Studying and modeling potential Minnesota-tailored rate-stability mechanisms for the individual market, such as a reinsurance
program
• Studying and modeling merging Minnesota’s individual and small group markets
• Considering the impact of establishing maximum limits on health plan carriers’ excess capital reserves or surplus
• Studying options for making Minnesota’s rate review process more transparent with public information and hearings.
Expanding Innovative Health Care Purchasing and Delivery Systems
Strategies and Advancing the Triple Aim
Enhancements to Data Sharing
Recommendation 18: Modify the Minnesota Health Records Act to conform with HIPAA and make technical updates and
clarifications to the Minnesota Health Records Act to leave a patient’s ability to specify how their information can be shared intact
but allow patient consent preferences to be more easily operationalized at the provider level.
Recommendation 19: Provide ongoing education and technical assistance to health and health care providers and patients, about
state and federal laws that govern how clinical health information can be stored, used, and shared, and about best practices for
appropriately securing information and preventing inappropriate use.
Recommendation 20: Conduct a broad study that will make recommendations on the appropriate future structure,
legal/regulatory framework, financing, and governance for health information exchange (HIE) in Minnesota, building on lessons
learned in Minnesota and from other states and countries.
Task Force Recommendations (17-20)
25© 2016 EVANTAGE CONSULTING
Expanding Innovative Health Care Purchasing and Delivery Systems
Strategies and Advancing the Triple Aim (cont’d)
Longer-term recommendations and considerations related to data sharing
• Dependent on results of health information exchange study (see recommendation 20), consider other modifications to
Minnesota’s Health Records Act, to further align with federal HIPAA standards or to update opt-in or opt-out requirements.
• Support expanded health information technology capabilities (ex. EHRs) in a broad range of care settings, to enable smaller
and specialty providers to participate in HIE.
• Consider developing a funding mechanism for core HIE transactions, such as admission/discharge/transfer alerts, care
summaries, or care plans, to ensure basic information can be exchanged statewide.
• Support the establishment of robust, sustainable HIE “shared services,” such as consent management, which would be
available statewide through a central vendor.
Task Force Recommendations
26© 2016 EVANTAGE CONSULTING
Enhancements that Support Integrated Care Delivery
Recommendation 21: Evaluate, on an ongoing basis, current value-based purchasing, accountable care, and care coordination
demonstrations, pilots, and programs for effectiveness in meeting Triple Aim goals. Programs and pilots should not be significantly
expanded until an evaluation of cost/benefits is conducted. At a minimum, the evaluation should address the following domains:
• Health disparities - Does the model worsen or improve health disparities? If so, by what mechanism or mechanisms? Does the
model sufficiently account for variation in the complexity of patients across providers?
• Financial stability and cost of health care system – What is the impact of the model on costs across the system, including all
payers? What costs are associated with the model at the provider level? What is the return on investment (ROI) of the
program?
• Patient choice and provider attachment - How is the patient attached to the provider for purpose of service delivery, care
coordination, and payment (prospective or otherwise)? How does the model incorporate patient choice of provider?
• Multi-payer alignment – What are the areas of alignment across payers under the model? What additional areas could be
aligned?
• Quality of patient care – How has the model impacted the quality of patient care?
• Population health – How does the model address population health?
• Social determinants of health – How does the model address the determinants of health beyond medical care (e.g. flexible
payment options that enable payment for non-medical services)?
• Impact on provider work force - What impact has the model had on the provider work force? If it has an impact, what
mechanism caused the impact?
Task Force Recommendations (21)
27© 2016 EVANTAGE CONSULTING
Enhancements that Support Integrated Care Delivery (cont’d)
Recommendation 22: To the extent possible, seek alignment of approaches across public and private payers, including, but not
limited to, consistent measurement and payment methodologies, attribution models, and definitions.
Recommendation 23: Conduct a study that examines various long-term payment options for health care delivery. Study will do a
comparative cost/benefit analysis of the health care system under the following approaches:
• Maintenance of current financing mechanism, without expansion of value-based purchasing beyond existing levels;
• Expansion of value-based purchasing within current system;
• Publicly-financed, privately-delivered universal health care system.
• The study would additionally examine the stability and sustainability of health care system under the approach and identify
any data or information needed to design and implement the system.
Recommendation 24: Incorporate enhancements, as described in recommendations 25 through 33 below, as appropriate, into
existing demonstrations, pilots, and programs, such as Integrated Health Partnerships, Health Care Homes, Behavioral Health
Homes, and other value-based purchasing and accountable care arrangements across Medicaid and commercial beneficiaries.
Consider any new arrangements as pilots or demonstrations, with expansion only following robust evaluation (as described in
Recommendation 21 above).
Immediate Enhancements to Pilots, Demonstrations and Existing Programs
Recommendation 25: Enhance community partnerships by:
• Encouraging or incentivizing partnerships and care coordination activities with broad range of community organizations within
care coordination models, and
• Funding innovation grants and contracts to collaboratives that include providers and community groups, to meet specific goals
related to community care coordination tied to social determinants of health, population health improvement, or other
priorities.
Task Force Recommendations (22-25)
28© 2016 EVANTAGE CONSULTING
Immediate Enhancements to Pilots, Demonstrations and Existing Programs
Recommendation 26: Encourage or incentivize participation of diverse patients in provider or provider/community collaborative
leadership or advisory teams.
Recommendation 27: Base measurement on the following principles: (1) Measures include risk adjustment methodology that
reflects medical and social complexity; and (2) Existing pilots, demonstrations, and programs that tie a portion of a provider’s
payment to costs and/or quality performance should reward providers for both performance or improvement vs. provider’s
previous year and performance or improvement vs. peer group, to incentivize both lower and higher performing, efficient
providers.
Recommendation 28: Incorporate system wide utilization measures to assess impact of care coordination (such as preventable ED
visits, admissions, or readmissions; appropriate use of preventive services and outpatient management of chronic conditions and
risk factors) into performance measurement models; for use in evaluation of pilots, programs, and demonstrations; or as part of
certification processes.
Recommendation 29: For participants not attributed to an ACO (such as certified Health Care Homes), provide a prospective,
flexible payment for care coordination, non-medical services and infrastructure development that is sufficient to cover costs for
enrolled patients with complex medical and non-medical needs.
Recommendation 30: For participants attributed to an ACO (including risk-taking IHP program), provide a prospective “pre-
payment” of a portion of their anticipated total cost of care (TCOC) savings.
Recommendation 31: Establish consistency of payment approach for care coordination and alternate payment arrangements
across all payers. Areas for consistency include: (1) level of payments for care coordination activities, (2) identification of
complexity tiers, (3) policies for copayments for care coordination services, and (4) billing processes.
Task Force Recommendations (26-31)
29© 2016 EVANTAGE CONSULTING
Immediate Enhancements to Pilots, Demonstrations and Existing Programs
(cont’d)
Recommendation 32: Ensure care coordination payments are sufficient to cover costs for the patients with the most intensive
needs; the State (MDH and DHS) shall make modifications to the current HCH tiering process to incorporate social and non-
medical complexity, and enhance payment rates to incorporate costs associated with care coordination for patients experiencing
these conditions. Modifications may include enhancing the payment tiers to include an additional, higher tier payment for
patients with intense needs and social complexity.
Recommendation 33: Strengthen the patient attribution and provider selection process by:
• Allowing patients to choose a provider during the enrollment process and change their primary provider outside of
enrollment;
• Giving providers data about who enrolled with them so they have the opportunity to proactively engage with those enrollees;
• Using consistent methods for attaching patients to providers across payers;
• Attributing or assigning patients prospectively to a primary care provider or care network for the purposes of payment (not for
care delivery) under an ACO or similar model, with back-end reconciliation.
Longer Term Recommendations Related to Supporting Integrated Care Delivery:
• Identify ways of enhancing existing payment models to more comprehensively include the dual eligible population.
• Identify methods to report on the costs and savings associated with non-medical services, with potential integration into TCOC
calculations.
• Address increasing costs of prescription drug costs in excess medical inflation.
• Develop an approach to managing the growth of long-term care costs, especially in light of the aging population.
• Address workforce shortages, particularly in the areas of primary care and mental health practitioners.
• Identify ways to capture the savings from care delivery and payment modifications back into the health care system.
Task Force Recommendations (32-33)
30© 2016 EVANTAGE CONSULTING
212 THIRDAVENUENORTH
SUITE400
MINNEAPOLIS, MN 55401
TEL 612.677.0640
FAX 612.677.0641
EVANTAGECONSULTING.COM
Evantage Consulting
From Complexity to Confidence
31© 2016 EVANTAGE CONSULTING
Evantage is a business consultancy
that helps organizations capitalize on change
and how they interact with customers.
Who we are
32© 2016 EVANTAGE CONSULTING
Who we are
Deep focus in healthcare and consumer industries since 1999
Legacy of driving business outcomes through unrelenting customer
focus, digital expertise, and operations know-how
Help clients successfully transition From Complexity to Confidence SM
33© 2016 EVANTAGE CONSULTING
Our service offering
Strategic
Advisory Services
Customer Experience
Design + Delivery
Operations
Design + Delivery
Our clients engage us as proven partners in unraveling and solving
strategic, customer experience, and operational challenges.
34© 2016 EVANTAGE CONSULTING
212 THIRDAVENUENORTH
SUITE400
MINNEAPOLIS, MN 55401
TEL 612.677.0640
FAX 612.677.0641
EVANTAGECONSULTING.COM
Thank You

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Minnesota Public Programs in an ACA World

  • 1. 1© 2016 EVANTAGE CONSULTING 212 THIRDAVENUENORTH SUITE400 MINNEAPOLIS, MN 55401 TEL 612.677.0640 FAX 612.677.0641 EVANTAGECONSULTING.COM Minnesota Public Programs in an ACA World February 2016
  • 2. 2© 2016 EVANTAGE CONSULTING About this deck The presentation discusses the current state of the Minnesota public insurance marketplace and the recent work of the Minnesota Task Force on Health Care Financing. In addition to observations, it offers recommendations for payers, providers, and the state. This work is the result of Stuart Henry‘s observations of the the task force, research into state program enrollment patterns, and years of experience implementing regulations into operational environments. About the author Stuart Henry is a Senior Business Consultant at Evantage Consulting, a Minneapolis-based business consultancy that provides strategic advisory, operational, and customer experience services to help guide healthcare clients through complexity and change. Introduction
  • 3. 3© 2016 EVANTAGE CONSULTING I. Recent Events in the State of Minnesota Public Programs Marketplace II. Overview of Minnesota Task Force on Health Care Financing III. Recommended Next Steps for Health Plans, Health Systems, and the State of Minnesota IV. Appendix: Complete Task Force Recommendations V. Evantage Consulting: From Complexity to Confidence Contents
  • 4. 4© 2016 EVANTAGE CONSULTING Recent Events in the State of Minnesota Public Programs Marketplace
  • 5. 5© 2016 EVANTAGE CONSULTING Striking the balance Public programs and the commercial market Commercial Insurance Public Programs Minnesota as a whole is trying to define the right mix of commercial insurance and public programs.
  • 6. 6© 2016 EVANTAGE CONSULTING Re-contracting for state programs • The 2015 re-contracting effort for Medical Assistance and MinnesotaCare led to the redistribution of approximately 300,000 members between different insurance companies, creating opportunities for health plans that grew and those that scaled down The Affordable Care Act • The ACA changed the rules underpinning the individual health insurance market and its relationship to state public programs, causing ripple effects throughout the market • New risk sharing combinations intended to impact quality, cost, and patient experience are in their infancy, with many questions to resolve Minnesota Task Force on Health Care Financing • The Minnesota Task Force on Health Care Financing was convened by the governor and legislature to address questions about how state insurance programs and the private market will provide coverage to Minnesotans into the future Three big factors driving the public programs market
  • 7. 7© 2016 EVANTAGE CONSULTING Overview of Minnesota Task Force on Health Care Financing
  • 8. 8© 2016 EVANTAGE CONSULTING The governor and 2015 legislature created a task force on health care financing to advise on strategies to increase access and improve the quality of health care for Minnesotans. The initial goals for the evaluation and recommendations were to: • Encourage seamless consumer experience across all benefit programs • Reduce barriers to accessibility and affordability of coverage • Improve sustainable financing of health programs, including impact on the state budget • Assess the impact of options for innovation on their potential to reduce health disparities • Expand innovative health care purchasing and delivery systems strategies that reduce cost and improve health • Promote effective and efficient alignment of program resources and operations • Increase transparency and accountability of program operations The task force began meeting in August 2015 and concluded in January 2016. • More than 40 public meetings were held, and each meeting allowed for public comment • The final set of recommendations will be published in February 2016 Minnesota Task Force on Health Care Financing
  • 9. 9© 2016 EVANTAGE CONSULTING Task force composition The task force consisted of a variety of stakeholders broken into three workgroups Health Care Financing Task Force Legislators and Government Officials Trade Groups Patient / Consumer / Policy Advocates County Governments Health Plans Providers 1. Health Care Delivery Design and Sustainability 2. Seamless Coverage Continuum and Market Stability 3. Barriers to Access Stakeholders Workgroups
  • 10. 10© 2016 EVANTAGE CONSULTING Workgroup #1: Health Care Delivery Design and Sustainability Purpose: Identify innovative health care delivery system strategies to reduce costs and improve health outcomes Key Recommendations: • Further study ACOs and care collaboration efforts • Enhance existing ACOs and Community Partnerships Recommendations reflect wariness of moving forward with new payment models for state health plan business Vote: 5 in favor, 3 opposed Neither member of the legislature voted for the recommendations Topics Discussed: Accountable Care Organizations (ACOs) Community Partnerships Health Information Exchange Total Population Health Value-Based Purchasing Member Assignment to Providers Members: Rep. Matt Dean Sen. John Marty Allison O'Toole (CEO MnSure) Rosemarie Roach (Executive Director MN Nurses Association) Larry Schultz (CEO Lake Region Healthcare) Jim Schowalter (President and CEO MN Council of Health Plans) Dr. Todd Stivland (CEO Bluestone Physician Services) Dr. Penny Wheeler (CEO Allina Health) Summary: Some potential for savings by supporting existing efforts. Skepticism among some regarding the new payment models, and their impact on disparities in care
  • 11. 11© 2016 EVANTAGE CONSULTING Workgroup #2: Seamless Coverage Continuum and Market Stability Purpose: Examine opportunities for providing and financing a seamless, affordable and financially stable coverage continuum in Minnesota Key Recommendations: • Raise MinnesotaCare eligibility up to 275% of Federal Poverty Line • Continue MinnesotaCare and MnSure (for now) • Repeal sunset of MinnesotaCare provider tax • Review MnSure performance after open enrollment Vote: 7 in favor, 3 opposed, 1 abstained Topics Discussed: Premium and cost sharing “cliffs” as members move through Medical Assistance, MinnesotaCare, and MnSure Future of MinnesotaCare and MnSure Members: Sen. Michelle Benson Sen. Tony Lourey Rep. Jennifer Schultz Mike Rothman (Commerce Commissioner) Sheila Kiscaden (Commissioner Olmsted County) Lynn Blewett (Director U of M State Health Access Data Assistance Center) Peter Nelson (Director of Public Policy Center of the American Experiment) Members: Danette Coleman (SVP & General Manager Individual Business Medica) Phillip Cryan (Executive VP SEIU Healthcare Minnesota) Elizabeth Doyle (Associate Director/Policy Director TakeAction Minnesota) Molly Jungbauer (CEO Hollstadt & Associates) Summary: Recommendation has potential to result in savings for state and improved experiences for patients. Required tax extension and expansion of state programs may be controversial
  • 12. 12© 2016 EVANTAGE CONSULTING Workgroup #3: Barriers to Access Purpose: Identify opportunities to reduce barriers to accessing quality care that will improve health outcomes in Minnesota Key Recommendations: • Create standardized plan designs for the exchange with lower deductible but higher copays/coinsurance (to spread expenses throughout year) • Change benefit designs to improve non-emergency transportation and dental care • Improve community-based consumer assistance resources through expanded network and culturally/ linguistically appropriate resources and tools • Improve data collection on demographic attributes • Improve coverage to unauthorized immigrants to the state Vote: 5 Yes, 2 No (Representative Tara Mack [GOP] was absent) Members: Sen. Jeff Hayden Sen. Kathy Sheran Rep. Tara Mack Dan Pollack (Deputy Commissioner Dept of Health Monica Hurtado (Health Equity/Racial Justice Organizer Voices for Racial Justice) Scott Keefer (VP Policy and Legislative Affairs BCBSMN) Dr. Marilyn Peitso (Pediatrician CentraCare Health) Chris Shneeman (President Seven Hills Benefit Partners) Topics Discussed: Financial or structural (geographic and cultural) barriers to care for special or harder to reach populations. Discussions in workgroup #2 and #3 sometimes overlapped regarding benefit design. Summary: Importance of recommendations understood. Some concern about lack of prioritization given potential price tag.
  • 13. 13© 2016 EVANTAGE CONSULTING Timeframe Acting on task force recommendations 1/15 Work on recommendations that can be addressed without legislation Early Feb 2016 Task force presents recommendations 3/18/16– 12/31/16 Legislative Session Future actions based on legislation
  • 14. 14© 2016 EVANTAGE CONSULTING There are financial challenges for plan participants moving out-of-state programs into the MnSure exchange • Different approaches to solving that issue have different costs and impacts to a variety of stakeholders Although the MnSure’s performance has been disappointing, a move to the Federal Exchange appears to require dismantling MinnesotaCare • Outsourcing some functions may still be an option There are significant cultural, financial, and geographic barriers to care throughout the state • Addressing those barriers will require multiple approaches There are promising new risk sharing collaborations in the state, showing improvements in care and cost reductions • But skepticism remains based on experience outside of the state Whether tasks force’s recommendations will be adopted is unclear given the legislative process Conclusions The Health Care Financing Task Force provided a deeper understanding around different public policy options
  • 15. 15© 2016 EVANTAGE CONSULTING Recommended Next Steps for Health Plans, Health Systems, and the State of Minnesota
  • 16. Health plans: next steps/actions Based on the current state of the market, Evantage recommends the following for health plans: Need / Opportunity: Evaluate impact and adjust operations to post state-wide contracting marketplace Why: Plans gaining or losing members need to ensure that current capabilities are scalable for larger or efficient for reduced membership and provider base Evantage Recommended Action: 1. Assess current capabilities from member acquisition and onboarding to renewal 2. Review operational and process metrics for new scale and set targets 3. Address stress points in the process where scale could create an issue for people, process, or technology 4. Prioritize and develop plan for implementation and improvement work Need / Opportunity: Focus on the member experience as they transition from a health plan’s public products into the individual marketplace Why: There are significant opportunities to improve member experience and create loyalty and engagement in order to grow presence in the individual market Evantage Recommended Action: 1. Review current member experience touchpoints from acquisition to renewal 2. Assess satisfaction vs. impact of key touchpoints in order to optimize for greatest impact 3. Prioritize and assign metrics for measuring success 4. Develop implementation plan with timeline for implementation outlining resources required (people, captial and technology)
  • 17. Providers and health systems: next steps/actions Based on the current state of the market, Evantage recommends the following for providers and health systems: Need / Opportunity: Evaluate current ACO models’ impact on care, quality, and cost Why: Best practices are starting to emerge and many do not have the processes or procedures in place for sustainable growth and impact Evantage Recommended Action: 1. Assess ACO process and develop metrics based on best practices to measure impact 2. Prioritize areas of need to sustain scale Need / Opportunity: Determine how “value-based” payment methodologies will impact future products and services Why: Early adopters will have tested the processes to ensure positive outcomes that create transparency with stakeholders, and will be the most prepared to establish the collaborative and integrated models with new and established partners Evantage Recommended Action: 1. Evaluate current model, if in place, and start to document requirements where change is required 2. Assess roadblocks, risks and failures and create mitigation plans so as to create a sustainable model for growth
  • 18. State of Minnesota: next steps/actions Based on the current state of the market, Evantage recommends the following for the State of Minnesota: Need / Opportunity: Enhance and strength the navigator program to create a sustainable and scalable model Why: The success of the current program has highlighted areas of deficiency, including scalability for increased and diverse member needs Evantage Recommended Action: 1. Assess current program for deficiencies across capabilities, metrics and outcomes 2. Prioritize areas for improvement based on critical criteria addressing scalable needs and resource requirements 3. Develop roadmap and implementation plans for implementing change with key milestones for measuring success based on priorities Need / Opportunity: Study and recommend action on stabilizing the individual market place Why: Customer needs and information expectations are changing as members enter a new market space with a broad continuum of understanding of criteria that is helpful in order to make a personal decision Evantage Recommended Action: 1. Use market framework to evaluate current experience, market forces and capabilities in the current market place. Identify areas of need based on criteria evaluated for process, people, technology and information 2. Outline a road map for improvement highlighting key stakeholders to be involved and resource requirements
  • 19. 19© 2016 EVANTAGE CONSULTING Appendix Complete List of Task Force Recommendations
  • 20. 20© 2016 EVANTAGE CONSULTING Removing Barriers to Access to Coverage and Care and Addressing Disparities Recommendation 1: Improve and enhance community based consumer assistance resources, including Navigators, consumer assisters and agents/brokers: • Develop expanded community based, consumer assistance capacity to support consumers in accessing health coverage, understanding how to use their health coverage, and addressing social determinants of health (e.g., food and nutrition, housing); • Provide adequate and timely payment to, and appropriate training for, community based consumer assisters; • Utilize currently available race/ethnicity/data to identify type and level of consumer needs and target deployment of consumer assistance resources; and • Ensure that the State’s selection of Navigators prioritizes entities able to provide linguistically and culturally appropriate assistance and that new state-developed consumer assistance tools are culturally and linguistically appropriate. Recommendation 2: Create benefit alignment across the coverage continuum and provide access to high value benefits: • Transportation – Provide non-emergency medical transportation (NEMT) as a covered benefit in MinnesotaCare. – Build volunteer transportation provider capacity through a grant program. – Assess the impact of enacted NEMT legislation on improving access to care and provider capacity. • Dental – Require that QHP issuers make available dental benefits on par with coverage in Medical Assistance and MinnesotaCare. – Seek 1332 waiver to allow QHP enrollees to apply Advance Premium Tax Credits/ Cost Sharing Reductions to available dental coverage. – Raise Medical Assistance dental reimbursement rates. Task Force Recommendations (1-2)
  • 21. 21© 2016 EVANTAGE CONSULTING Removing Barriers to Access to Coverage and Care and Addressing Disparities (cont’d) Recommendation 3: Evaluate the impact of 2015 telemedicine (health) legislation on payment for and access to broad based telehealth/telemedicine (including mobile applications) services and effectiveness in addressing geographic barriers and health disparities. Recommendation 4: Improve demographic data collection and reporting to inform development of solutions to address disparities in health access and care: • Ensure that all Minnesota health data collection and reporting systems including state agencies, providers, payers, and systems that collect health data comply with the State Quality Reporting and Measurement System’s (SQRMS’) standardized best practices (i.e., allowing patients to identify themselves, allowing a multi-racial category) for collection and reporting of race, ethnicity, language and country of origin data and data elements. • Charge MDH with development of a standardized set of additional socio-economic measures affecting health and health disparities. • Develop mechanism for continuous improvement of health data collection and reporting in partnership with racial and ethnic communities disproportionately affected by disparities. Recommendation 5: Provide access to coverage for uninsured, low-income individuals ineligible for Medical Assistance, MinnesotaCare and QHPs through MNsure due to immigration status by using State funding to provide MinnesotaCare benefits to children and adults with incomes up to 200% FPL. • Provide coverage for services included in the elderly waiver package and nursing facility benefits to individuals under 138% FPL who are eligible for these benefits. • In all instances, maintain confidentiality of applicants to ensure information collected is only used for health coverage and maximize available federal funding (i.e., federal funding for EMA and coverage of lawfully present MinnesotaCare individuals 0 – 200% FPL). Task Force Recommendations (3-5)
  • 22. 22© 2016 EVANTAGE CONSULTING Removing Barriers to Access to Coverage and Care and Addressing Disparities (cont’d) Recommendation 6: Rationalize affordability definition for families with access to employer sponsored insurance (ESI) (i.e., fix the “family glitch”), provided, however, that there is no impact on employer tax penalty related to affordability of coverage for dependents. Recommendation 7: Adopt 12 month continuous eligibility for Medical Assistance & MinnesotaCare enrollees. (This only applies to Medical Assistance enrollees eligible under a MAGI-income basis.) Improving Affordability of Coverage and Care for Consumers Recommendation 8: Require standard Qualified Health Plan offerings in the Marketplace to improve consumer choice and experience and ensure availability of no- or low-deductible options. Look to federal standardized designs as a potential model. • Require carriers to offer low and no deductible plan options, in addition to other products they choose to offer. • Require carriers to offer standard plan designs that exempt certain services from deductibles to incentivize utilization of primary care and other high value preventive services. • Study option of 1332 waiver to allow for 60 to 100% actuarial value and how this will improve consumer choice. Recommendation 9: Improve affordability and reduce the cliff in premiums, cost-sharing and deductibles for health coverage at 200% FPL in Minnesota’s coverage continuum by establishing a Minnesota-tailored health coverage affordability scale and provide enhanced subsidies to consumers with incomes 200 to 275% FPL (pre-ACA MinnesotaCare eligibility levels). Recommendation 10: Expand MinnesotaCare up to 275% FPL, using the recommended affordability scale under Recommendation 9 for those between 200 and 275% FPL, and maintain Marketplace coverage for consumers >275% FPL. Task Force Recommendations (6-10)
  • 23. 23© 2016 EVANTAGE CONSULTING Sustainably Financing the Coverage Continuum Recommendation 11: Seek Medicaid match to provide additional federal funding for enhanced subsidies to the MinnesotaCare population with incomes from 138 to 275% FPL. Recommendation 12: Repeal the sunset of provider tax to continue a dedicated state funding stream to support health care for low-income Minnesotans. With continuation of the provider tax, establish more stringent parameters for: (a) uses of Health Care Access Fund (HCAF) revenue and (b) the mechanism for contingent tax reduction based on program funding needs. Recommendation 13: Expand the MNsure user fee to on- and off-Marketplace products, provided that the Legislature statutorily reduces the user fee/premium withhold level. Assessing the Future of Mnsure Recommendation 14: The Task Force does not recommend transitioning to either the Federally Facilitated Marketplace (FFM) or Supported State-Based Marketplace (SSBM) at this time. A partially-privatized State-Based Marketplace (SBM) model could be considered following the evaluation of MNsure’s 2016 open enrollment period. Therefore, the Task Force recommends continuing a SBM at this time. Recommendation 15: Develop framework to evaluate MNsure’s 2016 open enrollment period performance, including the criteria listed in this report and in Appendix N. Recommendation 16: Codify the current IT executive steering committee structure for overseeing the IT modernization plan, including MNsure’s IT system. Task Force Recommendations (11-16)
  • 24. 24© 2016 EVANTAGE CONSULTING Ensuring Stability of the Insurance Market Recommendation 17: The Department of Commerce should explore options to stabilize Marketplace premiums by: • Studying and modeling potential Minnesota-tailored rate-stability mechanisms for the individual market, such as a reinsurance program • Studying and modeling merging Minnesota’s individual and small group markets • Considering the impact of establishing maximum limits on health plan carriers’ excess capital reserves or surplus • Studying options for making Minnesota’s rate review process more transparent with public information and hearings. Expanding Innovative Health Care Purchasing and Delivery Systems Strategies and Advancing the Triple Aim Enhancements to Data Sharing Recommendation 18: Modify the Minnesota Health Records Act to conform with HIPAA and make technical updates and clarifications to the Minnesota Health Records Act to leave a patient’s ability to specify how their information can be shared intact but allow patient consent preferences to be more easily operationalized at the provider level. Recommendation 19: Provide ongoing education and technical assistance to health and health care providers and patients, about state and federal laws that govern how clinical health information can be stored, used, and shared, and about best practices for appropriately securing information and preventing inappropriate use. Recommendation 20: Conduct a broad study that will make recommendations on the appropriate future structure, legal/regulatory framework, financing, and governance for health information exchange (HIE) in Minnesota, building on lessons learned in Minnesota and from other states and countries. Task Force Recommendations (17-20)
  • 25. 25© 2016 EVANTAGE CONSULTING Expanding Innovative Health Care Purchasing and Delivery Systems Strategies and Advancing the Triple Aim (cont’d) Longer-term recommendations and considerations related to data sharing • Dependent on results of health information exchange study (see recommendation 20), consider other modifications to Minnesota’s Health Records Act, to further align with federal HIPAA standards or to update opt-in or opt-out requirements. • Support expanded health information technology capabilities (ex. EHRs) in a broad range of care settings, to enable smaller and specialty providers to participate in HIE. • Consider developing a funding mechanism for core HIE transactions, such as admission/discharge/transfer alerts, care summaries, or care plans, to ensure basic information can be exchanged statewide. • Support the establishment of robust, sustainable HIE “shared services,” such as consent management, which would be available statewide through a central vendor. Task Force Recommendations
  • 26. 26© 2016 EVANTAGE CONSULTING Enhancements that Support Integrated Care Delivery Recommendation 21: Evaluate, on an ongoing basis, current value-based purchasing, accountable care, and care coordination demonstrations, pilots, and programs for effectiveness in meeting Triple Aim goals. Programs and pilots should not be significantly expanded until an evaluation of cost/benefits is conducted. At a minimum, the evaluation should address the following domains: • Health disparities - Does the model worsen or improve health disparities? If so, by what mechanism or mechanisms? Does the model sufficiently account for variation in the complexity of patients across providers? • Financial stability and cost of health care system – What is the impact of the model on costs across the system, including all payers? What costs are associated with the model at the provider level? What is the return on investment (ROI) of the program? • Patient choice and provider attachment - How is the patient attached to the provider for purpose of service delivery, care coordination, and payment (prospective or otherwise)? How does the model incorporate patient choice of provider? • Multi-payer alignment – What are the areas of alignment across payers under the model? What additional areas could be aligned? • Quality of patient care – How has the model impacted the quality of patient care? • Population health – How does the model address population health? • Social determinants of health – How does the model address the determinants of health beyond medical care (e.g. flexible payment options that enable payment for non-medical services)? • Impact on provider work force - What impact has the model had on the provider work force? If it has an impact, what mechanism caused the impact? Task Force Recommendations (21)
  • 27. 27© 2016 EVANTAGE CONSULTING Enhancements that Support Integrated Care Delivery (cont’d) Recommendation 22: To the extent possible, seek alignment of approaches across public and private payers, including, but not limited to, consistent measurement and payment methodologies, attribution models, and definitions. Recommendation 23: Conduct a study that examines various long-term payment options for health care delivery. Study will do a comparative cost/benefit analysis of the health care system under the following approaches: • Maintenance of current financing mechanism, without expansion of value-based purchasing beyond existing levels; • Expansion of value-based purchasing within current system; • Publicly-financed, privately-delivered universal health care system. • The study would additionally examine the stability and sustainability of health care system under the approach and identify any data or information needed to design and implement the system. Recommendation 24: Incorporate enhancements, as described in recommendations 25 through 33 below, as appropriate, into existing demonstrations, pilots, and programs, such as Integrated Health Partnerships, Health Care Homes, Behavioral Health Homes, and other value-based purchasing and accountable care arrangements across Medicaid and commercial beneficiaries. Consider any new arrangements as pilots or demonstrations, with expansion only following robust evaluation (as described in Recommendation 21 above). Immediate Enhancements to Pilots, Demonstrations and Existing Programs Recommendation 25: Enhance community partnerships by: • Encouraging or incentivizing partnerships and care coordination activities with broad range of community organizations within care coordination models, and • Funding innovation grants and contracts to collaboratives that include providers and community groups, to meet specific goals related to community care coordination tied to social determinants of health, population health improvement, or other priorities. Task Force Recommendations (22-25)
  • 28. 28© 2016 EVANTAGE CONSULTING Immediate Enhancements to Pilots, Demonstrations and Existing Programs Recommendation 26: Encourage or incentivize participation of diverse patients in provider or provider/community collaborative leadership or advisory teams. Recommendation 27: Base measurement on the following principles: (1) Measures include risk adjustment methodology that reflects medical and social complexity; and (2) Existing pilots, demonstrations, and programs that tie a portion of a provider’s payment to costs and/or quality performance should reward providers for both performance or improvement vs. provider’s previous year and performance or improvement vs. peer group, to incentivize both lower and higher performing, efficient providers. Recommendation 28: Incorporate system wide utilization measures to assess impact of care coordination (such as preventable ED visits, admissions, or readmissions; appropriate use of preventive services and outpatient management of chronic conditions and risk factors) into performance measurement models; for use in evaluation of pilots, programs, and demonstrations; or as part of certification processes. Recommendation 29: For participants not attributed to an ACO (such as certified Health Care Homes), provide a prospective, flexible payment for care coordination, non-medical services and infrastructure development that is sufficient to cover costs for enrolled patients with complex medical and non-medical needs. Recommendation 30: For participants attributed to an ACO (including risk-taking IHP program), provide a prospective “pre- payment” of a portion of their anticipated total cost of care (TCOC) savings. Recommendation 31: Establish consistency of payment approach for care coordination and alternate payment arrangements across all payers. Areas for consistency include: (1) level of payments for care coordination activities, (2) identification of complexity tiers, (3) policies for copayments for care coordination services, and (4) billing processes. Task Force Recommendations (26-31)
  • 29. 29© 2016 EVANTAGE CONSULTING Immediate Enhancements to Pilots, Demonstrations and Existing Programs (cont’d) Recommendation 32: Ensure care coordination payments are sufficient to cover costs for the patients with the most intensive needs; the State (MDH and DHS) shall make modifications to the current HCH tiering process to incorporate social and non- medical complexity, and enhance payment rates to incorporate costs associated with care coordination for patients experiencing these conditions. Modifications may include enhancing the payment tiers to include an additional, higher tier payment for patients with intense needs and social complexity. Recommendation 33: Strengthen the patient attribution and provider selection process by: • Allowing patients to choose a provider during the enrollment process and change their primary provider outside of enrollment; • Giving providers data about who enrolled with them so they have the opportunity to proactively engage with those enrollees; • Using consistent methods for attaching patients to providers across payers; • Attributing or assigning patients prospectively to a primary care provider or care network for the purposes of payment (not for care delivery) under an ACO or similar model, with back-end reconciliation. Longer Term Recommendations Related to Supporting Integrated Care Delivery: • Identify ways of enhancing existing payment models to more comprehensively include the dual eligible population. • Identify methods to report on the costs and savings associated with non-medical services, with potential integration into TCOC calculations. • Address increasing costs of prescription drug costs in excess medical inflation. • Develop an approach to managing the growth of long-term care costs, especially in light of the aging population. • Address workforce shortages, particularly in the areas of primary care and mental health practitioners. • Identify ways to capture the savings from care delivery and payment modifications back into the health care system. Task Force Recommendations (32-33)
  • 30. 30© 2016 EVANTAGE CONSULTING 212 THIRDAVENUENORTH SUITE400 MINNEAPOLIS, MN 55401 TEL 612.677.0640 FAX 612.677.0641 EVANTAGECONSULTING.COM Evantage Consulting From Complexity to Confidence
  • 31. 31© 2016 EVANTAGE CONSULTING Evantage is a business consultancy that helps organizations capitalize on change and how they interact with customers. Who we are
  • 32. 32© 2016 EVANTAGE CONSULTING Who we are Deep focus in healthcare and consumer industries since 1999 Legacy of driving business outcomes through unrelenting customer focus, digital expertise, and operations know-how Help clients successfully transition From Complexity to Confidence SM
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Editor's Notes

  1. Founded in 1999, Evantage Consulting’s original tagline was “Bridging Strategy, Technology, and Customer Experience.” Today we apply that legacy of unrelenting customer focus, digital expertise, and business outcomes to the increasing complexity of how our clients interact with their customers, now and in the future. Our focus is to help clients successfully transition from complexity to confidence SM.