Presentation is loading. Please wait.

Presentation is loading. Please wait.

Illinois Medicaid 1115 Waiver February 19, 2014. What is a Medicaid 1115 Waiver? 2  Allows states to apply for program flexibility from the Centers for.

Similar presentations


Presentation on theme: "Illinois Medicaid 1115 Waiver February 19, 2014. What is a Medicaid 1115 Waiver? 2  Allows states to apply for program flexibility from the Centers for."— Presentation transcript:

1 Illinois Medicaid 1115 Waiver February 19, 2014

2 What is a Medicaid 1115 Waiver? 2  Allows states to apply for program flexibility from the Centers for Medicare & Medicaid Services to test new approaches to financing & delivering Medicaid  Provides incentives to providers to develop new models of care  Lasts five years, but can be renewed/amended  Must be budget neutral, leading to overall savings  Allows states to apply for program flexibility from the Centers for Medicare & Medicaid Services to test new approaches to financing & delivering Medicaid  Provides incentives to providers to develop new models of care  Lasts five years, but can be renewed/amended  Must be budget neutral, leading to overall savings Section 1115 of the Social Security Act Our State’s Waiver ApplicationOur State’s Waiver Application  Called the Path to Transformation Waiver  Includes all services in the Illinois Medicaid program for better coordination Covers all Medicaid-eligible populations  Called the Path to Transformation Waiver  Includes all services in the Illinois Medicaid program for better coordination Covers all Medicaid-eligible populations

3 Four Pathways to Transformation State Draft Waiver Application 3 Pathway 4 Pathway 1Pathway 2 Pathway 3 Goals: Better Health Outcomes Lower Costs Delivery System Transformation Population Health Workforce Home- & Community- Based Supports

4 Waiver Goals Support linkages between health care delivery systems and services that directly impact key social determinants of health Create incentives to drive development of integrated delivery systems Promote efficient health care delivery through optimization of existing managed care models Enhance ability of the health care system to engage in population management Strengthen the state’s health care workforce to meet needs of Medicaid beneficiaries (Goals continued on next page) 4

5 Waiver Goals (continued) Consolidate Illinois’ nine existing 1915(c) waivers under a single 1115 waiver Increase flexibility and choice of long-term supports for adults and children Institute a provider assessment on residential habilitation providers Reduce prioritization of unmet need for services wait list Promote and foster greater community-integrated, competitive employment opportunities 5

6 1st Pathway: Delivery System Transformation Waiver promotes care coordination & integrated delivery system development 6  Provides Coordinated Care Entities & Accountable Care Entities with analytics, data collection & other activities related to managing a population  Hospital performance & integration pool tied to hospital & health system performance measures  Public hospitals will have separate pool for specific projects Delivery System Transformation

7 2nd Pathway: Population Health 7 Focuses on developing regional public health hubs  Premium add-on payment to health plans for developing population health interventions  Fund regional public health hubs to provide technical assistance in addressing health disparities, social determinants of health, and evidence- based interventions, including those endorsed by the Community Preventive Services Task Force Population Health

8 3rd Pathway: Workforce Increase Physician Supply  Provide incentives for training physicians (primary care & high-need specialties) in community settings, treating underserved patients  Expand loan repayment programs, including incentive funding for hospital-sponsored loan repayment programs Community Health Workers Training  In-home personal attendants, nurses & other providers to work on primary care provider teams  Establish and certify community health workers 8 Workforce

9 4th Pathway: Home & Community-Based Supports Consolidation of nine existing home- & community-support waivers 9 Home- & Community- Based Supports  Increase funding & uniformity in benefits  Base benefits on beneficiary needs, increase choice for beneficiaries, and expand community-based options Children & Young Adults with Developmental Disabilities Children who are technologically dependent Medically Fragile Individuals with HIV or AIDS Elderly  Behavioral health expansion & integration

10 Opportunities and Challenges 10 A Waiver Provides:  A possible option to preserve hospital assessment program  New funding for: Hospital quality and transformation initiatives Primary care physician development in underserved areas Behavioral health programs Maternal child visits and medical home development  Loan repayment for physicians through safety-net hospitals  Strengthening of: Community-based options Public health resources

11 Why is the Waiver an Option for Preserving Assessment Funding? Upper Payment Limit (UPL) Conundrum 1.Under Federal law, states can’t make direct payments to hospitals that exceed the upper payment limit Includes hospital assessment payment 2.UPL = Estimate of what would be paid under Medicare principles for persons in the Medicaid Fee-for-Service system 3.50% coordinated care mandate by 1/1/ CapitationAssessment UPL

12 What is the Access Assurance Pool?  Option to replace current assessment (or UPL) payments  Maintain current assessment payment distribution method “as is” for transition period (e.g. 1st two years of the waiver)  Then, Access Assurance (AA) payments based on a hospital’s unreimbursed costs for Medicaid and uninsured patients  Can include hospital and other services (e.g. Dr., Rx)  Goal: AA payments to replace, as closely as possible, the current Assessment payments for each hospital 12

13 How is a Waiver Financed? Costs Not Otherwise Matchable (CNOM)  One of the most powerful provisions in Section 1115 allows CMS to grant approval of Costs Not Otherwise Matchable or CNOM  Includes services not normally qualifying as Medicaid expenditures  Must be budget neutral  Must reinvest freed-up state funds back into the Medicaid program 13

14 Budget Neutrality Under 1115 Waiver 14 CNOM counts toward budget neutrality gap

15 Hospital-Specific Waiver Payments 1115 Waiver Payments Integration & Incentive Pool Pays Hospitals for Achieving Metrics Funded by CNOM Primary Care, GME, Community- Based Training Loan-Forgiveness Funding 15

16 Transforming Illinois Health Care Illinois hospitals have the infrastructure to bring together a wide range of providers

17 The Waiver Process 17 10/18/13 Stakeholder kick-off meeting 2/10/14 Final waiver with comments posted 1/8/14 Draft waiver posted for comment 11/5/13 Concept paper finalized 1/22/14 Waiver comments due 3/12/14 Waiver submitted to CMS 10/18 – 12/13/13 Stakeholder meetings 12/18/13 Legislative hearing 6-12 mos. State negotiates with CMS

18 For More Information Patrick Gallagher Group Vice President, Health Delivery & Payment Systems (630) State of Illinois 1115 Waiver Web Page 18


Download ppt "Illinois Medicaid 1115 Waiver February 19, 2014. What is a Medicaid 1115 Waiver? 2  Allows states to apply for program flexibility from the Centers for."

Similar presentations


Ads by Google