Florida Medicaid Update Sue McPhee Medicaid Area 6 Field Office Manager Agency for Health Care Administration October 12, 2012

Medicaid A State and Federal Partnership In 1965, the federal Social Security Act was amended to establish two major national health care programs: –Title XVIII (Medicare) –Title XIX (Medicaid) Medicaid is jointly financed by state and federal funds. States administer their programs under federally approved state plans. 2

Florida Medicaid – A Snapshot Expenditures $21.0 billion estimated spending in Fiscal Year Federal-state matching program – 57.73% federal, 42.27% state Florida will spend approximately $6,324 per eligible in Fiscal Year % of all Medicaid expenditures cover hospitals, nursing homes, Intermediate Care Facilities for the Developmentally Disabled (ICF/DD’s); Low Income Pool and Disproportionate Share Payments. 10% of all Medicaid expenditures cover drugs Fifth largest nationwide in Medicaid expenditures. Eligibles 3.32 million eligibles Elders, disabled, families, pregnant women, children in families below poverty Fourth largest Medicaid population in the nation Providers/Plans Approximately 76,000 Fee-For-Service providers; 22 Medicaid Managed Care plans (21 HMOs and 10 PSNs) 3

Florida Medicaid Mandatory Services Advanced Registered Nurse Practitioner Services Early & Periodic Screening, Diagnosis and Treatment of Children (EPSDT)/Child Health Check-Up Family Planning Home Health Care Hospital Inpatient Hospital Outpatient Independent Lab Nursing Facility Personal Care Services Physician Services Portable X-ray Services Private Duty Nursing Respiratory, Speech, Occupational Therapy Rural Health Therapeutic Services for Children Transportation Mandatory 43.48% of $21.0 Billion 4

Florida Medicaid Optional Services * Adult Dental Services Adult Health Screening Ambulatory Surgical Centers Assistive Care Services Birth Center Services Hearing Services Vision Services Chiropractic Services Community Mental Health County Health Department Clinic Services Dialysis Facility Services Durable Medical Equipment Early Intervention Services Healthy Start Services Home and Community- Based Services Hospice Care Intermediate Care Facilities/ Developmentally Disabled Intermediate Nursing Home Care Optometric Services Physician Assistant Services Podiatry Services Optional 56.52% of $21.0 Billion Prescribed Drugs Primary Care Case Management (MediPass) Registered Nurse First Assistant Services School-Based Services State Mental Hospital Services Subacute Inpatient Psychiatric Program for Children Targeted Case Management) *States are required to provide any medically necessary care required by child eligibles. 5

6 Growth in Medicaid Average Monthly Caseload Source: Medicaid Services Eligibility Subsystem Reports. *FY June 2012 Caseload Social Services Estimating Conference *FY June 2012 Caseload Social Services Estimating Conference *FY June 2012 Caseload Social Services Estimating Conference

7 Growth In Medicaid Service Expenditures Source: Medicaid Services' Budget Forecasting System Reports *FY January 2012 Social Services Estimating Conference *FY July 2012 Social Services Estimating Conference *FY July 2012 Social Services Estimating Conference

Medicaid Spending for Fiscal Year Service FY Estimated Spending Percent of Total Prepaid Health Plans $3,699,572, % Hospital Inpatient Services $3,461,576, % Nursing Facility Care $2,768,686, % Prescribed Medicine/Drugs & Part D $2,055,016, % Supplemental Medical Insurance $1,251,519, % Physician Services $1,170,546, % Home & Community Based Services $1,082,335, % Hospital Outpatient Services $1,040,361, % Low Income Pool $1,000,250, % Nursing Home Diversion Waiver $359,036, % Intermediate Care Facility/DD $344,424, % Hospice Services $334,439, % Early and Periodic Screening/Children $276,328, % Disproportionate Share Hospital Payments $246,570, % Home Health Services $167,813, % Other $1,730,035, % Total $20,988,514, % 8

What is Managed Care? Managed care is when health care organizations manage how their enrollees receive health care services. Managed care is a financing and delivery system that may employ provider network management, utilization management and quality assurance. 9

What is Managed Care? Managed Care Organizations (MCOs) contract with a variety of health care providers to offer quality health care services to ensure enrollees have access to the health care they need. MCOs may be paid through a capitated arrangement where the health plan receives a per member per month reimbursement to provide all covered medical services to its members. 10

Key Terminology Member: A person who has selected or been assigned to a managed care plan. Prepaid: Managed care plans are paid at the beginning of each month. Capitation: The monthly fixed amount paid to the MCO for each member. Per Member Per Month (PMPM): MCOs receive capitation payment each month for each member. At Risk: A managed care plan is responsible for arranging for and paying for all covered services regardless of the cost. 11

Key Terminology (continued) Provider Network: health care and long-term care service providers (e.g., doctors, hospitals, nursing facilities, home health agencies) that contract with a managed care plan to provide services. –The MCO reimburses the contracted providers for services rendered to the plan’s enrolled members. –MCOs can limit the number of providers with which they contract. 12

Common Types of Managed Care Plans in Florida Health Maintenance Organizations (HMOs) –Licensed under Chapter 641, Florida Statutes. –HMO networks are not limited to Medicaid-enrolled providers. Provider Service Networks (PSNs) –A network established or organized and operated by a health care provider, or group of affiliated health care providers. –Provides a substantial proportion of the health care items and services under a contract directly through the provider or group of affiliated providers. –May be fee for service or capitated. 13

Statewide Medicaid Managed Care In 2011, the Florida Legislature created a new program under Chapter 409, Part IV, Florida Statutes called : Statewide Medicaid Managed Care (SMMC). 14

Statewide Medicaid Managed Care Goals The Statewide Medicaid Managed Care Program is designed to: Emphasize patient centered care, personal responsibility and active patient participation; Coordinate fully integrated long-term care and health care in different health care settings; Provide a choice of the best managed care plans to meet recipients’ needs; and Implement innovations in reimbursement methodologies, managed care plan quality and plan accountability. 15

Statewide Medicaid Managed Care: Key Components Statewide Medicaid Managed Care Program key components Managed Medical Assistance Program Long-term Care Managed Care Program 16

Statewide Medicaid Managed Care: Key Components  Long-term Care Managed Care Program  Will begin in the fall of 2013  Only provides long-term care services  Managed Medical Assistance Program  Will begin in the fall of 2014  Provides all health care services other than long-term care services to eligible recipients 17

Long-term Care Managed Care program 18

Current Status of SMMC Implementation: Long-term Care Managed Care In order to implement the Long-term Care portion of the SMMC program, the Agency is seeking a 1915 b/c combination waiver: –1915(c): to identify and allow qualified individuals to receive home and community-based care services, in lieu of nursing facility care services. –1915(b): for the authority to enroll individuals in managed care plans statewide and to allow for selective contracting of those plans. 19

Current Status of SMMC Implementation: Long-term Care Managed Care (cont.) The Agency submitted the 1915b/c application for the LTC waiver program on August 1, The Agency has received and responded to several sets of information and formal questions regarding this waiver application from federal CMS, and negotiations are ongoing. The Agency is participating in regular calls with CMS regarding this waiver application. 20

Eligibility for SMMC Long-Term Care Services Individuals who are: –65 years of age or older AND need nursing facility level of care –18 years of age or older AND are eligible for Medicaid by reason of a disability, AND need nursing facility level of care 21

Eligibility for SMMC Long-Term Care Services (cont.) Individuals who are enrolled in:  Aged and Disabled Adult Waiver  Consumer-Directed Care Plus for individuals in the A/DA waiver  Adult Day Health Care Waiver  Assisted Living Waiver  Channeling Services for Frail Elders Waiver  Program of All-inclusive Care for the Elderly (PACE)  Nursing Home Diversion Waiver 22

Long-term Care Managed Care Required Services 23 Adult companion careHospice Adult day health careIntermittent and skilled nursing Assisted livingMedical equipment and supplies Assistive care servicesMedication administration Attendant careMedication management Behavioral managementNursing facility Care coordination/Case managementNutritional assessment/Risk reduction Caregiver trainingPersonal care Home accessibility adaptationPersonal emergency response system (PERS) Home-delivered mealsRespite care HomemakerTherapies, occupational, physical, respiratory, and speech Transportation, non-emergency

Qualified Managed Care Plans for Long-Term Care Health Maintenance Organizations Long-term Care Provider Service Networks Medicare Advantage Special Needs Plans Exclusive Provider Organizations Accountable Care Organizations Note: AHCA must select at least one Provider Service Network per region. 24

Number of Long-term Care Plans Per Region RegionCounties# Plans 1Escambia, Okaloosa, Santa Rosa, Walton2 2Bay, Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, Liberty, Madison, Taylor, Wakulla, Washington 2 3Alachua, Bradford, Citrus, Columbia, Dixie, Gilchrest, Hamilton, Hernando, Lafayette, Lake, Levy, Marion, Putnam, Sumter, Suwannee, Union 3 4Baker, Clay, Duval, Flagler, Nassau, St. Johns, Volusia3 5Pasco, Pinellas3 6Hardee, Highlands, Hillsborough, Manatee, Polk4 7Brevard, Orange, Osceola, and Seminole3 8Charlotte, Collier, DeSoto, Glades, Hendry, Lee, Sarasota3 9Indian River, Martin, Okeechobee, Palm Beach, St. Lucie3 10Broward3 11Miami-Dade, Monroe5 25

Invitation to Negotiate (ITN) Schedule The Agency released the Long-term Care Managed Care Invitation to Negotiate on June 29, *The provisions of the ITN cannot be discussed. ActivityDate/Time Deadline for Receipt of Written InquiriesJuly 6, 2012 Vendor Conference for Regions 1-11July 19, 2012 Deadline for Receipt of ResponsesAugust 28, 2012 Publish List of Respondents for Provider Comments August 31, 2012 Anticipated Dates for NegotiationNovember 13, 2012-January 4, 2013 Anticipated Posting of Notice of Intent to AwardJanuary 15,

Regional Enrollment Schedule Region(s)Plan Readiness DeadlineEnrollment Effective Date 7May 1, 2013August 1, , 9June 1, 2013September 1, , 2, 10August 1, 2013November 1, September 1, 2013December 1, , 6November 1, 2013February 1, , 4December 1, 2013March 1,

Managed Medical Assistance program 28

Current Status of SMMC Implementation: Managed Medical Assistance In order to implement the Managed Medical assistance component, the Agency is seeking federal authority to amend the 1115 Medicaid Reform Demonstration Waiver that currently operates in Baker, Broward, Clay, Duval and Nassau counties. The amendment seeks: –To mandatorily enroll most Medicaid recipients in Statewide Medicaid Managed Care plans. –To allow health plans to develop customized benefits packages. –To implement the SMMC on a statewide basis. 29

Current Status of SMMC Implementation: Managed Medical Assistance On January 3, 2012, CMS sent the Agency informal questions relating to this request and the Agency submitted responses on April 13, The Agency requested non-binding letters of intent for participation in the Managed Medical Assistance program from interested parties on August 7, interested parties responded to the request. The Managed Medical Assistance Data Book released September 21, The Managed Medical Assistance ITN will be released by January The Agency continues to work with CMS to provide additional information on the pending 1115 amendment to implement the Managed Medical Assistance program. 30

Who will participate in the Managed Medical Assistance Program? All Medicaid recipients will be enrolled in a managed care plan unless specifically exempted. Recipients required to enroll in either a Managed Medical Assistance plan or a Long Term Care plan will include, but are not limited to: –Temporary Assistance for Needy Families (TANF) and TANF related –Children with chronic conditions, including foster care children –Pregnant women –Medically Needy recipients –Individuals with Medicare coverage (Medicaid acts as a secondary payer) –Persons eligible for Medicaid by reason of a disability, excluding the Developmentally Disabled (DD) population 31

32 Who may participate in the Manage Medical Assistance Program? Recipients who may choose to enroll in a Managed Medical Assistance Program (but we are not required to enroll) include: –Medicaid recipients who have other creditable health care coverage, excluding Medicare –Medicaid recipients residing in residential commitment facilities operated through the Department of Juvenile Justice or mental health treatment facilities as defined by section (32), F.S. –Persons eligible for refugee assistance –Medicaid recipients who are residents of a developmental disability center, including Sunland Center in Marianna and Tacachale in Gainesville –Medicaid recipients enrolled in the home and community based services waiver pursuant to chapter 393, and Medicaid recipients waiting for waiver services.

33 Who will not participate in Manage Medical Assistance Program? Recipients who are excluded from the Managed Medical Assistance Program and who will not participate include: –women who are eligible only for family planning services –women who are eligible only for breast and cervical cancer services –persons who are eligible for emergency Medicaid for aliens –children receiving services in a prescribed pediatric extended care center

Managed Medical Assistance Required Services 34 Minimum Required Covered Services: Managed Medical Assistance Plans Advanced registered nurse practitioner services.Medical supply, equipment, prostheses and orthoses Ambulatory surgical treatment center servicesMental health services Birthing center servicesNursing care Chiropractic servicesOptical services and supplies Dental servicesOptometrist services Early periodic screening diagnosis and treatment services for recipients under age 21 Physical, occupational, respiratory, and speech therapy Emergency servicesPhysician services, including physician assistant services Family planning services and supplies (some exception)Podiatric services Healthy Start Services (some exception )Prescription drugs Hearing servicesRenal dialysis services Home health agency servicesRespiratory equipment and supplies Hospice servicesRural health clinic services Hospital inpatient servicesSubstance abuse treatment services Hospital outpatient servicesTransportation to access covered services Laboratory and imaging services

Qualified Managed Care Plans for Managed Medical Assistance Eligible plans include: –Health Maintenance Organizations –Provider Services Networks –Exclusive provider organizations –Accountable care organizations –Children's Medical Services Network –Specialty Plans (serving a specific target population based on age, chronic disease state, or medical condition of the enrollee) Note: AHCA must select at least one Provider Service Network per region. 35

Selecting SMMC Plans AHCA will select Managed Care plans through a competitive bid process State is divided into 11 regions –Same as AHCA Areas Plans will be selected by region 36

Plan Readiness Components The plan readiness review process assesses the managed care plan’s readiness and ability to provide services to recipients. This review is completed prior to the enrollment of recipients. The scope of the review may include any and all contract requirements. Examples of the readiness review may include, but is not limited to: –Desk and onsite review of managed care plan policies and procedures –Review of provider networks –A walkthrough of the managed care plan operations –System demonstrations –Interviews with managed care plan staff 37

Provider Network Requirements Plans selected to participate in managed care must demonstrate that they have a sufficient number of providers in their network to provide access to services and a choice of providers. Plans may limit the providers in their networks based on credentials, quality indicators and price. 38

Enrollment Process Recipients are encouraged to choose the managed care plan that best meets their needs. If a recipient who is required to enroll does not choose a plan within 30 days, AHCA will automatically assign the recipient to a managed care plan. Enrollees can change their providers within their plan at any time. Recipients have 30 days to enroll in a plan. Recipients have 90 days after enrollment to change plans. After 90 days, recipients must stay in their plan for the remainder of the 12 month period before changing plans again. 39

Managed Care Enrollment Process Prior to implementation of the program in each region of the state, the Medicaid Enrollment Broker will mail plan selection materials to recipients or their designated representatives. Individuals from the Medicaid Enrollment Broker, the local Aging and Disability Resource Centers (ADRC), and the local Medicaid Area Offices will assist individuals in securing the information they need to select a plan that best meets their needs. 40

Managed Care Enrollment Process After 90 days, individuals must remain in their plan until the next open enrollment period (approximately 9 months later), unless they have good cause to change plans. Examples of good cause include, but not limited to: –The recipient is ineligible for enrollment in the health plan; –they are receiving poor quality of care; or –were unreasonably denied services. 41

SMMC Resource Updates about the Statewide Medicaid Managed Care Program are posted at: shtml#tab1 shtml#tab1 –You can sign up to receive updates about the program at this website. 42

Questions? 43