2/20/2013. Medicare Advantage Star Ratings The Compliance View. About Us. Agenda for today. February 26, Introductions.
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1 Medicare Advantage Star Ratings The Compliance View February 26, 2013 About Us Carmen Alexander Mohit Jain Manager Deloitte Consulting LLP Manager Deloitte Consulting LLP Carmen Alexander has over 15 years of professional services and industry experience in government programs, health plan operations and compliance She has assisted clients with Medicare Stars improvement initiatives, conducted Medicare Data Validation Audits, and managed numerous operational improvement initiatives Mohit Jain is a technology practitioner in Deloitte s Health Care Government programs practice with several years of experience leading strategy and technology projects He has assisted numerous national and regional health plans with operational and financial reporting for Medicare Advantage Risk Adjustment as well as Stars Ratings. 2 HCAA Managed Care Compliance Conference Agenda for today Introductions Stars Background Impact on Compliance Current landscape 2014 and Beyond Wrap Up 3 HCAA Managed Care Compliance Conference 1
2 Welcome Stars Background CMS Star Ratings Star Ratings is a five star quality program for Medicare Advantage Plans that was implemented by CMS to achieve improved care, healthier people and affordable care for the Medicare Advantage population 6 HCAA Managed Care Compliance Conference 2
3 How does it work? Performance measure data is collected across five broad categories (outcomes, intermediate outcomes, patient experience, access, and process) throughout the performance period Data sources can be self reported (by health plan), collected by CMS or based on direct surveys with members Eligible plans are evaluated on up to 49 measures on a 5-star scale Summary and overall scores are rounded to the nearest half star Thresholds of achieving a star is assigned based on the data distribution for all plans A bonus is awarded to plans with high star ratings 7 HCAA Managed Care Compliance Conference Composition of Star Rating Overall Star Rating is derived from the Plan s Part C and Part D rating 37 Part C Measures 5 Part C Domains (weighted avg.) Part C Score (MA Plans) Overall Plan Rating 17 Part D Measures 4 Part D Domains (weighted avg.) Part D Score (PDP Plans) (MAPD only) 8 HCAA Managed Care Compliance Conference 2012 and 2013 Rating Distribution The average plan rating for MA-PDs increased from 3.44 to & 2013 Rating Distribution for MA-PD Contracts # of Contracts Stars 4.5 Stars 4 Stars 3.5 Stars 3 Stars 2.5 Stars 2 Stars * Plans with not enough rating data or too new to be measured not included Source: Fact Sheet Part C and D Plan Ratings (2013_Plan Ratings_FactSheet pdf) 9 HCAA Managed Care Compliance Conference 3
4 Financial Impacts of Medicare Star Ratings While Star revenue won t offset the full revenue reduction imposed by health care reform, it is important to continue offering competitive benefits and premiums to members. Pre-ACA CMS Reimbursement Levels (Illustrative) Post-ACA (no Stars) Post-ACA + Stars Pre health care reform, CMS rebate level was 75% Post reform, benchmark rates will likely steadily decline each year, along with rebate level reduction Star revenue recovers some of this reduction Star revenue comes from an extra rebate and (for high-performing plans) quality bonuses - increasing overall Star scores will improve total rebate and bonus payments. 10 HCAA Managed Care Compliance Conference Impact on High and Low performers There are numerous enrollment impacts of Plan Ratings Plans with 2.5 stars or below for three consecutive years Plans that achieve overall rating of 3 stars or above o Consistently low performer icon on CMS website o Warning letters o Sanctions o Plan termination o Direct communications from CMS to members 5-Star Plans receive a high performing icon on CMS website Year Round enrollment period to 5 Star plans (i.e. marketing and enrollment outside of AEP) Larger rebates to 4.5 Star plans Bonus payments to 3+ Star plans 11 HCAA Managed Care Compliance Conference Impact on Compliance 4
5 Star Ratings and the Compliance Officer Role Compliance Officers (COs) interact with and impact Star ratings across the spectrum of CO roles and responsibilities Star Measure Performance Process Integrity Data Submission Performance Monitoring 13 HCAA Managed Care Compliance Conference Star Measures Performance COs oversee activities that can influence performance for specific Star measures Beneficiary Access and Performance Problems (2 measures) Plan Preview Data Verification These measures are based on CMS performance audits of contracts, sanctions, civil monetary penalties and Compliance Activity Module (CAM) data Calculation and other errors have occurred. Verification of Plan Preview data and appeals to CMS within the appropriate time period will likely improve the accuracy of scores. Source: Medicare Health & Drug Plan Quality and Performance Ratings 2013 Part C & Part D Technical Notes First Plan Preview DRA FT, Updated 8/9/ HCAA Managed Care Compliance Conference Star Measure Process and Data Integrity COs are responsible for monitoring processes to confirm accuracy of data provided to CMS Errors in operational areas Biased or erroneous data Lack of reporting requirements Inappropriate processing Erroneous data submission to CMS Mishandling of data Lack of data requirements Potential reduction of measure ratings to 1 star 15 HCAA Managed Care Compliance Conference 5
6 Overall Performance Monitoring Star Ratings impact a contract s Past Performance score and may contribute to sanctions Compliance Letters Performance Metrics Multiple Ad Hoc Corrective Action Plans Contract Denial, Sanctions, Focused Performance Audits Performance Audits Enforcement Actions Ad Hoc CAPs with Beneficiary Impact 16 HCAA Managed Care Compliance Conference Best Practices for Stars Oversight COs can take specific actions to monitor and manage performance Identify and Monitor Stars-related risks Know your plan s current ratings Know what initiatives and interventions are in place/planned Monitor anticipated Star Measures performance Anticipate future Star Ratings (new or low enrollment plans) Monitor Display Measures anticipated future performance 17 HCAA Managed Care Compliance Conference Current Landscape 6
7 Contract Performance High Performing Contracts MA-PD Contracts Receiving the 2013 High Performing Icon: Contract Contract Name: H0524 Kaiser Foundation HP, Inc. H0630 Kaiser Foundation HP of CO H1230 Kaiser Foundation HP, Inc. H2150 Kaiser Fndn HP of the Mid-Atlantic STS H2462 Group Health Plan, Inc. H5050 Group Health Cooperative H5262 Gundersen Lutheran Health Plan H6360 Kaiser Foundation HP of Ohio H6622 Humana Wisconsin Health Organization Insurance Corp H8578 Health New England, Inc. H9003 Kaiser Foundation HP of the NW MA-only Contracts Receiving 2013 High Performing Icon: Contract Contract Name H1651 Medical Associates Health Plan, Inc. H5256 Medical Associates Clinic Health Plan H5264 Dean Health Plan, Inc. H6052 Kaiser Foundation HP, Inc. PDP Contracts Receiving 2013 High Performing Icon: Contract Contract Name S3521 Excellus Health Plan, Inc. S3994 Hawaii Medical Service Association S5743 Wellmark IA & SD, & BCBS MN, MT, NE, ND & WY S8841 Catamaran Insurance of Delaware Source: Fact Sheet Part C and D Plan Ratings (2013_Plan Ratings_FactSheet pdf) 19 HCAA Managed Care Compliance Conference Contract Performance Low Performing Contracts Twenty-six contracts are marked with the low performing icon (LPI) for consistently low quality ratings in the past three years (i.e., 2.5 or fewer stars for the 2011, 2012 and 2013 Plan Ratings for Part C and/or Part D) Ten of these contracts are receiving the icon for low Part C ratings of 2.5 or fewer stars from 2011 through 2013, and 16 are receiving it for low Part D ratings of 2.5 or fewer stars from 2011 through 2013 Twenty-one of the 30 contracts receiving the LPI in 2012 either improved their ratings in 2013 or their contract was withdrawn or consolidated. Source: Fact Sheet Part C and D Plan Ratings (2013_Plan Ratings_FactSheet pdf) 20 HCAA Managed Care Compliance Conference 2013 Data Collection Timeline Q Q Q Q Q Star* HEDIS Data Collection 2014 Star CTM, Call Center, Enrollment, Pharmacy Hold Time, Part D Appeals Upheld 2015 Star HOS Memory Zone 2015 Star Medicare Plan Finder Accuracy 2015 Star HRM (concentration early in year) 2015 Star Disenrollment, Part C Timely Appeals/Appeal Decisions, C/D Bene Access/Performance, Part D Appeal Auto-Forward, Medication Adherence 2015 Star HEDIS Outreach/Incentives 2015 Star CAHPS Memory Zone 2015 Star HEDIS Data 2014 Star CTM, Call, ENR, Rx Hold, Part D App Upheld On-going Clinical, Satisfaction, Quality, Operational Activities Note: 2014 Star Refers to Rating issued Fall 2013 for 2014 Payment 2015 Star HOS Memory Zone Source: Medicare Health and Drug Plan Quality and Performance Ratings 2013 Part C & Part D Technical Notes 8/9/ HCAA Managed Care Compliance Conference 7
8 2014 & Beyond? 2014 proposed changes 2014 changes include many program level, regional and product specific enhancements MTMP completion rate High risk medication clarifications MPF price accuracy penalties Quality improvement hold harmless Rounding of measure data 4-Star threshold Anticipate and Monitor Changes Summary / Overall calculation changes Low performer icon New display measures 23 HCAA Managed Care Compliance Conference 2015 and Beyond CMS is considering additional changes and is actively soliciting industry feedback Disenrollment reasons measure CAHPS Health Information Technology Measures Low Enrollment Plans Included CAHPS Complaint Resolution measure 24 HCAA Managed Care Compliance Conference 8
9 Q & A This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. 9
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