Oct 5, 2014 John McCarthy Medicaid Director
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1 Ohio Medicaid Overview Oct 5, 2014 John McCarthy Medicaid Director
2 Medicaid Overview Medicaid is Ohio s largest health payer 83,000 active providers, hospitals, nursing homes and other providers care for 2.5 million individuals insured by Medicaid Medicaid spending increased 33% in the 3 years prior to Governor Kasich taking office four times faster than Ohio s economy Governor Kasich s first Medicaid reform budget H.B. 153 held Medicaid spending to less than 3% growth saving Ohioans $3 billion since
3 Governor Kasich s First Jobs Budget: Repeal and Replace Old Medicaid Inherited a program that grew 33% over 3 prior years Created the Office of Health Transformation Linked nearly 10% of nursing home reimbursement to quality Increased access to home and community based services Freed local behavioral health from Medicaid match Created health homes for people with serious mental illness Consolidated health plan regions to be more efficient Linked 1% of health plan payments to performance 3 rd state approved to integrate Medicare Medicaid services Implemented a new Medicaid claims payment system Saved Ohio taxpayers $3 billion over three years 3
4 Benefits Federally Mandated Services Early and Periodic screening, diagnosis and treatment (EPSDT) for children Inpatient hospital Physician Lab and X ray Outpatient, including services provided by hospitals, rural health clinics, and Federally Qualified Health Centers Medical and surgical vision Medical and surgical dental Transportation of Medicaid services Nurse midwife, certified family nurse and pediatric nurse practitioner Home Health Nursing facility Medicare premium assistance Ohio s Optional Services Prescription drugs Durable medical equipment and supplies Vision, including eyeglasses Dental Physical Therapy Occupational therapy Speech therapy Podiatry Chiropractic services for children Independent psychological services for children Private duty nursing Ambulance/ambulette Community alcohol/drug addiction treatment Home and Community based alternatives to facility based care Intermediate care facilities for people with developmental Disabilities Hospice Community mental health services 4
5 Eligibility Groups Category Percent of FPL Children 200% Parents 90% ABD 64% HCBS Waivers 300% MBIWD 250% Childless Adults 133% 5
6 Enrollment August 2014 Category Number Total Enrollment 2,785,053 Full Medicaid Benefits 2,592,905 Managed Care 2,191,310 Non ABD 1,126,464 ABD 432,997 6
7 Ohio Medicaid Managed Care 3,000,000 Average Monthly Medicaid Enrollment by State Fiscal Year 2,500,000 2,000,000 1,500,000 1,000, ,000 SFY 06 SFY 07 SFY 08 SFY 09 SFY 10 SFY 11 SFY 12 SFY 13 SFY 14 Projected Managed Care Fee For Service SFY 15 Projected 7
8 All Funds Expenditures Funding Source SFY15 Budget Transfers $1,900,486,547 Non GRF State $1,802,232,891 Non GRF Local $392,772,154 Non GRF Federal $7,695,128,335 Non Appropriated Local $137,407,855 GRF State $5,829,277,548 GRF Federal $8,933,098,262 Grand Total $26,690,403,591 Grand Total Less Transfers $24,789,917,044 8
9 Medicaid Expenditures by Service Type SFY 14 All Other Medicare Part D Medicare Buy In Group VIII Nursing Facility Health Homes SPMI Behavioral Health Managed Care Pay For Performance Aging Services MCD Waivers Inpatient Hospital Outpatient Hospital Hospital HCAP Managed Care CFC Physician ACA Physician Fee Increase Prescribed Drugs Managed Care ABD Managed Care ABD Kids 9
10 Regular FMAP Overtime 75% FMAP 70% 65% 60% 59.88% 59.66% 60.79% 62.14% 63.42% 63.69% 64.15% 63.58% 63.02% 62.64% 55% 50% FFY 06 FFY 07 FFY 08 FFY 09 FFY 10 FFY 11 FFY 12 FFY 13 FFY 14 FFY 15 10
11 Home and Community Based Services Waivers 6 Nursing Facility Level of Care HCBS Waivers» PASSPORT (60 and older) no nursing services» Assisted Living (21 and older) must live in an assisted living setting» Ohio Home Care (59 and younger) includes nursing services» Choices (60 and older) self direction» Transitions Carve Out (60 and older) includes nursing services» MyCare(18 and older) All encompassing waiver for CMMI demonstration 3 ICF/IDD Level of Care HCBS Waivers» Individual Options» Level One benefit limited to $5,000» SELF self directed waiver 11
12 HCBS Waivers (continued) HCBS waiver reforms» Too many waiver too confusing to both people and providers» Began harmonizing waivers» Moved the Choices and Transition waivers into other waivers Next steps» Add nursing services to waivers» Use the same rates for the same services across waivers 12
13 Another Medicaid Milestone HOME Choice Ohio s iteration of Money Follows the Person Original Goal: Transition 2,000 people out of institutional settings and back into home and community based options» : 968 transitions» Since 2011: More than 4,000 transitions» Summer 2014: Ohio Medicaid and its community partners successfully transition its 5,000 th individual back into the community 13
14 National Recognition HOME Choice In 2013: Ohio ranks second among all MFP states in overall institution to community transitions and first for transitioning the most individuals living with mental illness. 14
15 Balancing Incentive Program (BIP) Moving the Needle % 80.00% 60.00% 40.00% 20.00% How Ohio's HCBS LTSS balance has improved, per CMS data: 0.00% 32.50% 40% FFY 2009 FFY 2012 BIP approved for Ohio July 1, 2013:» December 2013: Ohio's HCBS LTSS balance = 42.7%» March 2014: Ohio s HCBS LTSS balance = 49.45%» August 2014: Ohio's HCBS LTSS balance = 51.05% and the work continues! 15
16 16
17 MyCare Ohio: Medicaid Hot Spot Dual eligible individuals make up just 14% of the Medicaid population but consume 34% of total costs. 100% 14% Medicare 34% Medicaid Dual 80% Eligibles 60% 86% 66% 40% All Others 20% 0% Enrollment Spending
18 Why MyCare Ohio? MyCare Ohio: Overview» Approximately 182,000 dual eligible residents of Ohio» Very little coordination between Medicare and Medicaid benefits» Fragmentation and waste too often the result» Integrate physical, behavioral and long term care services into a seamless experience for the individual 18
19 Goals of Demonstration MyCare Ohio: Overview» Improve health outcomes» Identify new ways to reduce overall cost of care between systems» Provide individuals with a single point of contact for the administration of services» Establish a delivery system that is easy to navigate for both the individual and provider» Create a seamless transition between care settings and programs the needs of individuals change 19
20 20
21 Payment Innovation: Ohio s Vision 21
22 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Ohio Department of Medicaid Health Care Spending per Capita by State (2011) in order of resident health outcomes (2009) Ohioans spend more per person on health care than residents in all but 17 states $0 MN HI CT UT CA MA IA VT WI ND CO ID WA NH NE WY NY OR NJ RI AZ TX ME MD MT FL AK VA NM SD KS IL PA DE MI IN GA NV NC MO OH SC OK KY LA AL AR TN WV MS 36 states have a healthier workforce than Ohio Sources: CMS Health Expenditures by State of Residence (2011); The Commonwealth Fund, Aiming Higher: Results from a State Scorecard on Health System Performance (October 2009). 22
23 Payment Innovation: Timeline The Governor s Office of Health Transformation (OHT) established with the goal to engage public and private partners to design and implement new health care delivery payment systems to reward value of services over volume. Sept. 2012: Ohio submits application for federal State Innovation Model (SIM) Design Grant. Feb. 2013: State awarded SIM design grant; begins work with McKinsey & Company and public/private partners on proposal design. July 2014: Ohio submits applications for federal SIM Test Grant (second phase) 23
24 Why medical homes and episodes? Ohio Department of Medicaid Medical homes provide the foundation for total cost/quality accountability Population based accountability transcends delivery system Large long term impact: prevention and chronic disease management Requires providers to fully transform business model away from FFS Requires significant provider capabilities and commitment Episodes nested within total cost of care for more specific accountability Patient centered design around the patient journey thru delivery system Faster to impact: clear and specific opportunities for improvement Stages business model transition away from FFS for specialists/hospitals Faster to scale, independent of market structure or capabilities Fit with other models Both models being implemented agnostic of provider structure, can be carved out or carved in for ACO or capitation 24
25 Five year plan to launch PCMH and episode model at scale Goal State s role 80 90% of Ohio s population in some value based payment model (combination of episodes and population based payment) within 5 years Shift rapidly to PCMH & episode model in Medicaid FFS Require Medicaid MCO partners to participate / implement Incorporate into contracts of MCOs for state employee benefit program Year 1 Year 3 Year 5 Patient centered medical homes In 2014 focus on CPCi Payers agree to participate in design for elements where standardization and / or alignment is critical Multi payer group begins enrollment strategy for one additional market Model rolled out to all major markets 50% of patients are enrolled Scale achieved state wide 80% of patients are enrolled Episode based payments State leads design of 5 episodes perinatal, asthma (acute exacerbation), COPD exacerbation, PCI, and joint replacement Payers agree to participate in design process, launch reporting on at least 3 of 5 episodes in 2014 and tie to payment within year 20 episodes defined and launched across payers 50+ episodes defined and launched across payers 25
26 Streamline Health and Human Services: Organize Government to be More Efficient Jobs Budget Created the Office of Health Transformation New Medicaid claims payment system (MITS) Reorganized Medicaid programs and budgets Jobs Budget 2.0 Consolidate Mental Health and Addiction Services (July 2013) Create a unified Medicaid budgeting/accounting system Create a Cabinet Level Department of Medicaid (July 2013) Replace Ohio s 34 year old eligibility system (CRIS E) Coordinate health sector workforce programs
27 Medicaid Structure The Medicaid Program is Operationalized Across Department» Department of Medicaid» Department of Mental Health and Addiction Services» Department of Aging» Department of Developmental Disabilities» Department of Health» Department of Education 27
28 Questions 28
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