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John lovelace 2011 03 25 public private p artnerships in health dublin march 25 2011 v3 pages 1 - 22
1. John Lovelace President, UPMC for You March 24, 2011 Public-Private Partnerships and the UPMC Experience
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7. Share of Medicaid Beneficiaries in Managed Care Rising Percent enrolled in managed care: Source: 2009 Medicaid Managed Care Enrollment Report, CMS:
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10. Prescription Drug Costs Increasing Faster than Other Costs of Medical Care Average Annual Percentage Increase in Selected National Health Expenditures, 1996-2008 Source: Kaiser Family Foundation
11. Pharmacy Management – Flat Pharmacy Trends Expenditures PMPM for behavioral health related medications remained flat over the last 24-months, and utilization was reduced 2%. Note: the rolling 12-month medical trend (non-pharmacy) is -3.35% (approximately -2% after accounting for category of assistance membership shifts over time).
18. Pennsylvania Establishes the Chronic Care Model Rx for Pennsylvania “ Prescription for Pennsylvania is a set of integrated, practical strategies for improving health care and containing costs for all Pennsylvanians. The core components are affordability, accessibility and quality.” Edward Rendell, Governor Commonwealth of Pennsylvania Source: Prescription for Pennsylvania
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20. UPMC Health Plan Partners in Excellence Program – Patient-Centered Medical Home
Definition – “ Medicaid is a means-tested, state-administered entitlement program jointly funded by the Federal and State governments that provides health care coverage to PA’s neediest, most vulnerable residents.” (Source: The Basics of MA in PA (PA Medicaid Policy Center) http://www.pamedicaid.pitt.edu/documents/MA%20Basics%20FS%2008.pdf) Medicaid provides health and long-term care coverage to roughly 1 in 5 Americans (Source: KFF, Medicaid and Managed Care: Key Data, Trends, and Issues) Who is enrolled? – Eligibility; individuals must fit: Fit into a specified coverage group Meet the income requirements for that coverage group (calculated as a % of the FPL) Meet the asset requirements for that coverage group Be a U.S. citizen Be a PA resident Primary coverage groups: Infants and children to age 19 Pregnant women TANF Individuals with disabilities The elderly Other coverage groups: Workers with disabilities Title IV-E adoptive or foster children Women enrolled in the Breast and Cervical Cancer Prevention and Treatment program Medically needy individuals (optional group consisting of those who qualify by income level; may meet this level by “spend-down” process) Low income Medicare beneficiaries Women with incomes up to 185% of the FPL for family planning services *Low income, non-disabled adults without children are generally not eligible. “ Many groups of people are covered by Medicaid. Even within these groups, though, certain requirements must be met. These may include your age, whether you are pregnant, disabled, blind, or aged; your income and resources (like bank accounts, real property, or other items that can be sold for cash); and whether you are a U.S. citizen or a lawfully admitted immigrant. The rules for counting your income and resources vary from state to state and from group to group. There are special rules for those who live in nursing homes and for disabled children living at home.” (Source: CMS) "You must meet income, resource (in most cases), and other eligibility requirements in order to be eligible for Medical Assistance. These categories are grouped by: Individuals who are aged (age 65 and older), blind and disabled. (Identified for Medical Assistance purposes as SSI-related) Families with children under age 21. (Identified for Medical Assistance purposes as TANF-related) Single and married individuals with a temporary disability, age 59 through 64, limited income or special circumstances (Identified for Medical Assistance purposes as GA-related): Under-going drug and alcohol treatment Victim of domestic violence Caring for a child or disabled person Special Medical Assistance conditions “ (Source: DPW) For how long? – How are we paid? – Financed jointly by federal and state governments. In PA, the mix is 55.64%/44.36% (68.95%/31.05% enhanced) for FY11. As a MCO, we are paid on a risk-based capitation model. The state Medicaid agency (DPW) contracts with UPMC for You for the provision of an agreed upon set of services for a fixed monthly fee per person. Pharmacy – Pharmacy utilization is a major focus of the Medicaid program. Prescription drugs costs are rising faster than costs of other areas of expenditure (Kaiser – next slide). Controlling these costs through managed care policies (mandate substitution of generics, etc) can have a major impact on overall medical costs.
Unduplicated count. Includes all managed care enrollees receiving both comprehensive and limited benefits. By comparison, share of MA beneficiaries enrolled in managed care in PA in 2009 was 82.1% (Source: 2009 Medicaid Managed Care Enrollment Report, CMS), 81.1% in 2008 (Source: 2008 Medicaid Managed Care Enrollment Report), 81.2% in 2007 (Source: 2007 Medicaid Managed Care Enrollment Report), 86.3% in 2006 (Source: 2006 Medicaid Managed Care Enrollment Report) *** CMS has taken down all former reports and any other site I found with a the reports only goes back to 2006. I can include this information in the graph if you would like but without the info for years prior to 2006 it might be hard to explain that the highest percentage of the 4 data points we have is also the oldest when nationwide MMC is trending upward. I want to include per beneficiary expenditure here, but can’t find a data source. Perhaps we can put inflationary trends in?
64% of Medicaid beneficiaries enrolled in managed care in 2007 accounted for only 20% of total Medicaid spending on services (Source: KFF, Medicaid and Managed Care: Key Data, Trends, and Issues, February 2010) however, studies have found that this is because enrollees in MMC are generally are generally families and children (TANF) and highest-cost beneficiaries are still FFS (Source: Herz, 2006. Medicaid Managed Care: An Overview and Key Issues for Congress. Congressional Research Service) HealthChoices Medical escalation costs held to 7.4% (MC) compared to 10.5% (average annual cost escalation for FFS programs) -even more impressive because HealthChoices inflationary trend is on a higher cost platform (urban areas vs. rural) -$2.7 billion in estimated savings (Lewin Report – Comparative Evaluation of Pennsylvania’s HealthChoices Program and FFS Program, 2005) -largely attributable to comprehensive and coordinated care facilitated by MC organizations participating in HealthChoices FFS model makes care coordination difficult -15% figure = estimated 15% savings in the SE and 10% in SW and Lehigh Cap
Calculated with National Health Expenditures Data (CMS) There are a number of slides in another presentation I have focusing on UPMC for You pharmacy trends and initiatives if you would like that to be added in.
This slide seems like it could be useful, but perhaps in a different spot.
Provider satisfaction with P4P program – Increased provider engagement Prospective rosters allow providers sufficient time to contact members Helped providers identify and manage gaps in care and chronic conditions Additional P4P revenue has helped providers support additional expenses in conducting outreach and follow-up for UPMC for You members