How are the State, Managed Medicaid Organizations and Providers Preparing for Medicaid Value-Based Payments?

Similar documents
HCA VALUE-BASED ROAD MAP,

Gulf Coast and LA HFMA Payer Summit Value-based contracts same healthcare business?

Value-Based Purchasing for Managed Long- Term Services and Supports (MLTSS)

APPENDIX CHANGES TO APPLE HEALTH CONTRACTS STARTING IN 2017

Medicaid Transformation Demonstration

National Council For Behavioral Health: State Medicaid Perspectives on Value-Based Purchasing

Rewarding High Quality: Practical Models for Value- Based Physician Payment

10/17/2014 Risk-Based Payment Methodologies A National Perspective Art Jones, MD. AccountableCareInstitute.com

Value-Based Payments (VBP)

Value Based Payment 101

FUNDS FLOW METHODOLOGY FOR RISK-BASED CONTRACTS

The New York State Value-Based Payment (VBP) Roadmap. Behavioral Health Providers January 30, 2018

Health Plan and Provider Collaboration Really?

New York State s Health Care Transformation: The Path to Medicaid Payment Reform through Value-Based Payment Programs

PATH TOWARD PAYMENTS THAT REWARD VALUE

The Emergence of Value-Based Care: Present and Future Tense

Session 115IF, Provider Risk-Sharing Arrangements in Medicaid. Presenters: Puneet Budhiraja, ASA, MAAA Michael Minor Sudha Shenoy, FSA, MAAA, CERA

Oregon Health Authority Metrics and Key Performance Measures

Value Based Purchasing. RHP 9 Learning Collaborative February 22, 2017

Delivery System Reform Incentive Payment (DSRIP) Program Extension Planning and Protocols

Growth and Success of Accountable Care Organizations (ACOs) in the US from Dennis Horrigan June 2016

C-Suite Transformation Management Training: VBP Financial Modeling

December COMMUNITY CHECKUP CHART PACK

CNYCC Joint Board and Finance Committee Forum

Using Analytics To Transform Your ACO

CURRENT DEVELOPMENTS IN VALUE BASED PAYMENT (VBP): Part 1 Recent Initiatives

than value. infrastructure for value-based payment, it is apparent that greater assumption of

Population-Based Healthcare: Structural Models and Options

THE $10,000 QUESTION: TACKLING THE COMPLEXITIES OF VALUE-BASED PHYSICIAN COMPENSATION

The Case For Value ACA to MACRA to MIPS

Health care affordability VBC transformation

A Practical Discussion of Value and Quality Based Payments What Do I Do Now?

Value-Based Reimbursement Contracting: Strategies for Payer-Provider Success

The New York State Value-Based Payment (VBP) Roadmap. Community Based Organizations February 28, 2018

New Rules, New Opportunities: Medicaid Managed Care Regulations

State of Georgia Department of Community Health

C - Suite Transformation Management Training: Finance and Operations Overview. May 17, 2017

Achieving Value-based Care in Rural Populations through Provider-Sponsored Health Plans. February 11, 2014

The Landscape of Medicaid Value-based Purchasing

Accountable Care Organizations and Alternative Payment Methods Opportunities for Community Health Workers

Assessing ACO Performance

Covering the Low-Income, Uninsured in Oklahoma: Recommendations for a Medicaid Demonstration Proposal. Presented to the OHCA Board June 27, 2013

Figure 1: Original APM Framework

Aetna s value based payment models aim to pay for value delivered, not services rendered

Adopting Multi-Payer and All- Payer Payment Models in States OCTOBER 25, 2016 WASHINGTON MARRIOTT WARDMAN PARK HOTEL WASHINGTON, DC

9/23/2016. Our Services. Transitioning from Fee-for-Service to Value-based Reimbursement. Key Trends and Strategies for Rural Health Providers

Health Care Reform Potential Impact. Presentation to NAADAC. John O Brien Senior Advisor on Health Financing SAMHSA

Making Quality Matter in Medi-Cal Managed Care: How Other States Hold Health Plans Financially Accountable for Performance

79th OREGON LEGISLATIVE ASSEMBLY Regular Session. Enrolled. Senate Bill 934 CHAPTER... AN ACT

Sarah Jacobson NC Government Relations Director, American Heart Association

Massachusetts League of Community Health Centers

Value Based Contracting

Evaluating the Fair Market Value of Pay for Performance

Delivering Value-Based Care:

Approved Models to Align Incentives between Hospitals and their Physicians

MassHealth Section 1115 Waiver Summary. Key provisions:

CHCS. Technical Assistance. Tool. Implementing the Medicaid Primary Care Rate. Increase: A Roadmap for States. Center for Health Care Strategies, Inc.

All About APMs: What Will It Take for Physicians to Earn the APM Bonus Under MACRA?

Building Actuarial Cost Models from Health Care Claims Data for Strategic Decision-Making. Introduction. William Bednar, FSA, FCA, MAAA

Embracing the Future of Care Delivery: What have we learned?

Program Description for the Enhanced Personal Health Care Essentials Program. Known nationally as Blue Distinction Total Care

Medicaid FQHC APMs What are they and what do they mean for health centers? Alex Harris, MSPH Deputy Director, Transformation Policy

Gateway to Practitioner Excellence (GPE)

SOONERCARE MANAGED CARE HISTORY AND PERFORMANCE 1115 Waiver Evaluation

R E A L I Z I N G T H E V A L U E I N V A L U E - B A S E D P U R C H A S I N G O F L T S S

COVERED CALIFORNIA: THE GOOD, THE BAD & THE UNDEFINED FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS

In accordance with Act 124 of 2018 (H.914)

2017 EMPLOYER SERIES. 6 Things Employers Need to Know About Rising Health Care Costs. Cost Management Key Findings

Elevate by Denver Health Medical Plan

Cigna. Confirmed complaints: 5. Quality Overview. How Often Do Members Complain About This Company? Accreditation Exchange Product

Physician Compensation In Today s Changing Market

2018 P4Q Measures STAR. At-risk measures - Plans will be evaluated on their Performance against benchmarks and Performance against self.


Healthcare Reform and Its Impact on the Care Delivery System

Risk Contracting: What to Know About Stop Loss Insurance KATHRYN A BOWEN, EXECUTIVE VICE-PRESIDENT OCTOBER 27, 2016

Medicaid MCO Network Adequacy Overview June 2016 JAMIE DUDENSING, CEO Texas Association of Health Plans

Centers for Medicare & Medicaid Services: Innovation Center New Direction Request For Information: Medicare Advantage (MA) Innovation Models

OVERVIEW OF THE AFFORDABLE CARE ACT. September 23, 2013

The Health Insurance Market in Virginia. Maureen Dempsey, MD, MSc, ACC, FAAP Anthem Blue Cross and Blue Shield June 8, 2017

Medicaid Accountable Care Organization Programs: State Profiles

AAOS MACRA Proposed Rule Summary (Short)

Vermont Medicaid Next Generation Pilot Program 2017 Performance

Succeeding with APMs: Structuring Relationships Between Payers and Providers

Today s Payers and Providers

ALSTON&BIRD LLP. Summary of Agency Proposals Related to Accountable Care Organizations and the Medicare Shared Savings Program. I.

MACRAnomics. Patient-Level Economics and Strategic Implications for Providers. Presented to: NW Ohio HFMA October 20, 2016

Medicaid Managed Care: Ensuring Access to Quality Care

Building Capacity for Value. Missouri Rural Health Conference August 15, 2017

MACRA: APPLICATIONS & IMPLICATIONS September 13, /13/2016. Mark Blessing, CPA, FHFMA Partner

How To Develop A Case Rate: A Guide To Bundled Payments

evaluating the fair market value of pay for performance

AMERICAN COLLEGE OF GASTROENTEROLOGY MAKING $ENSE OF MACRA

Medicaid Managed Care 101: Building a Common Understanding for the Healthy Students, Promising Futures Learning Collaborative

ACA Regulations: Insurance Exchanges and EHBs

Cutting Edge Issues Related to. April 16, Payments to Physicians Under P4P Compensation Models

The Pharmacists Society of the State of New York

DSRIP Funds Flow Distribution Process Review of Model Framework

Strategic Plan Scorecard Measuring Success

Integrating Population Health Analytics and the EHR Environment Session 87, March 6, 2018

Behavioral Health Value Based Payment Readiness

Transcription:

How are the State, Managed Medicaid Organizations and Providers Preparing for Medicaid Value-Based Payments? 1:10 PM 2:10 PM Steering Toward Success: Achieving Value in Whole Person Care September 25 and October 26, 2017 The Healthier Washington Practice Transformation Support Hub

Steering Toward Success: Achieving Value in Whole Person Care How are the State, Managed Medicaid Organizations and Providers Preparing for Medicaid Value-Based Payments? Savannah Parker Health Care Authority

Learning Objectives Receive up-to-date information on the State s approach to Apple Health (Medicaid) contracting with the state s five Managed Medicaid Organizations (MCOs), including contract requirements MCOs will have to meet. Learn about how two MCOs are building valuebased payments into provider contracting and understand the key things providers will need to do to be successful under these new payment arrangements.

Focus on quality: Apple Health 2017 Managed Care Contracts 4

HCA purchasing goals By 2021: 90 percent of state-financed health care and 50 percent of commercial health care will be in value-based payment arrangements (measured at the provider/practice level). Washington s annual health care cost growth will be below the national health expenditure trend. 2016: 20% VBP 5 2019: 80% VBP 2021: 90% VBP

Medicaid Purchases health care for 1.9 million people About 85% (~1.6 million) of Apple Health clients are enrolled in Managed Care and receive care through five Managed Care Organizations (MCOs) Approximately $8 billion in annual Medicaid spending Populations served include children, pregnant women, disabled adults, elderly persons, former foster care adults, and adults covered through Medicaid expansion 6

Defining Value-Based Payments HCP-LAN Alternative Payment Model Framework 7 https://hcp-lan.org/groups/apm-fpt/apm-framework/

Washington s VBP Definition 8

HCA and managed care organizations (MCOs) contracts: Past and Present/Future Past (prior to 2017) HCA paid MCOs capitated payment per Medicaid client MCO paid provider using a monthly premium Present/Future HCA Pays MCOs capitated payments per Medicaid Client HCA will withhold a percentage of capitated payments to MCOs to incentive Value-Based Purchasing MCOs pay providers using a monthly premium moving contracts with providers to qualifying VBP arrangements Provider performed services Provider performs services with incentives tied to quality improvement and attainment 9

Value-Based Purchasing MCO Withhold 1. Up to 12.5% may be earned by having value-based purchasing arrangements 2. Up to 12.5% may be earned back by making qualifying provider incentive payments 3. Up to 75% may be earned by achieving quality improvement targets First Performance period: January December 2017 Performance Year MCO Withhold Withhold 2017 1% 2018 1.5% 2019 2% 2020 2.5% 2021 3% Pending assessment of actuarial sound rates 10

Qualifying VBP Arrangements Provider payments paid to network providers in the form of VBP payments (LAN Category 2c or higher) with a link to quality VBP target will be established in the MCO contract based on the HCA VBP Roadmap targets This portion of the withhold may be earned in whole or in part Self-reported (by August 1, 2018), validated by Third-Party Contractor Withhold Weight 12.5% VBP Arrangement Targets Performance Year Target 2017 30% 2018 50% 2019 80% 2020 85% 2021 90% 11

Qualifying Provider Incentive Payments Paid for provider incentive payments in VBP arrangement (LAN Category 2c or higher) Payment Incentives Examples: Upside incentive payment Shared savings arrangement tied to quality performance Payment Disincentives Examples: Downside risk arrangements tied to quality performance Withhold tied to quality Includes incentives earned during the performance year Withhold Weight 12.5% Provider Incentive Targets Performance Year Target 2017.75% 2018 1% 2019 1.5% 2020 2.0% 2021 2.5% Self-reported (before August 1, 2018) validated by a third party contractor 12

Quality Improvement Rewards for quality improvement and attainment for seven clinical quality measures Quality improvement and attainment is measured using the Quality Improvement Score (QIS) model created by HCA and adapted from the Public Employee Benefits Board (PEBB) Accountable Care Program Compares scores prior performance year to the current performance year This portion of the withhold may be earned in whole or in part Withhold Weight 75% By June 15, 2017 MCOs submit clinical quality measure performance 13

Quality Measures in MCO Contract Quality Measure Quality Measures Description Weight w(i) Target T(i) Mean u(i) Adult Measures Pediatric Measures NQF 0059 NQF 0061 Comprehensive Diabetes Care - Poor HbA1c Control (>9%) Comprehensive Diabetes Care - Blood Pressure Control (<140/90) NQF 0018 Controlling High Blood Pressure (<140/90) NQF 0105 NQF 0105 Antidepressant Medication Management Effective Acute Phase Treatment Antidepressant Medication Management - Effective Continuation Phase Treatment (6 Months) NQF 0038 Childhood Immunization Status - Combo 10 NQF 1516 NQF 1799 NQF 1799 Well-child visits in the 3rd, 4th, 5th and 6th years of life Medication Management for people with Asthma: Medication Compliance 75% (Ages 5-11) Medication Management for people with Asthma: Medication Compliance 75% (Ages 12-18) Equals 100% NCQA Quality Compass Medicaid HMO 90 th percentile values NCQA Quality Compass Medicaid HMO Average values 14

How are the State, Managed Medicaid Organizations and Providers Preparing for Medicaid Value Based Payments? Kat Ferguson-Mahan Latet Manager, Health System Innovation

Plan Readiness for VBP Identify and Engage Senior Level VBP Champion(s) Identify and Engage your VBP Team Define your plan s value objectives Consider market forces and your ability to negotiate alternative payments Stay abreast of federal and state VBP requirements Assess current state along the VBP continuum and organizational and network capacities Develop robust data and analytic capacity Understand your budget constraints 16

CHPW s approach to Value Based Payment and Purchasing Choose VBP models that match your strengths (and provider strengths), leverage your network and address your quality needs Implement VBP arrangements with providers with on-going collaboration and communication Ensure flexibility and ability to evolve and change and set milestones to understand impact Partner across systems and sectors, including the state, federal government, payers, providers Ensure providers understand the opportunities with the Medicaid Transformation Demonstration and understand alignment of initiative.

Role of the Health Plan in VBP Define plan value and organizational culture Data provision, analytics and quality improvement support Financial Support for targeted investments Care management and coordination support Utilization and disease management Consultation and training based on capacity assessment Facilitate partnerships across network participants to ensure collaboration Partner with other plans to ensure administrative simplification 18

Planning for Current and Future State of VBP CHPW has had some form of value based payment arrangements for nearly 20 years Payment arrangements have included: Supplemental Payments Pay for Performance Total cost of care with upside gainsharing and downside risk Introduction of quality gate and ladder utilization Planning for the future Define our plan value for providers in VBP arrangements Assess the growth of VBP arrangements across providers, including behavioral health and strengthening current models we have, by building in more advanced quality expectations Align models across Medicaid and Medicare 19

Exploring CHPW s Value Based Arrangements Mental Health Integration Program: Supports the implementation of collaborative care within a primary care practice Payment is based on units: ½ is paid upfront; ½ paid based on quality aims achieved; Incentives are also connected to UW AIMS Consulting Psychology contract Result: improved coordination and integration of behavioral health within primary care; improved capacity and work flow; improved population health management Pay for Performance Programs Incentives based on adoption of population health management systems Incentives tied to closing access gaps 2% withhold tied to 13 measures (9 are HCA VBP measures). Performance will be based on a composite score for each measure based on achievement of the benchmark and improvement from 2016. Calculations for P4P incentive distribution will be based on the providers relative performance as compared to the other provider in the network in the network and their risk-adjusted enrollment of members. Total Cost of Arrangement with CHNW Members CHNW members are able to participate in total cost of care arrangements that include primary care, hospital, specialty, Rx (within IMC: BH) for a specific assigned population. End of the year pool settlements based of cost and quality, utilizing quality gates. In all models, different levels of provider risk are offered and some models are network wide and some for individual providers. 20

What does VBP mean for providers? Opportunities Further flexibility to provide the right care at the right time by the right type of provider: patient centered Moving off the hamster wheel: more provider centered Alignment in payer approaches regarding quality goals and reporting Ability to partner across the continuum of care and leverage non-traditional providers/partners Challenges Many safety-net providers have limited cash reserves to invest in the capacities necessary to manage VBP Gap in capacity awareness, especially in leadership and change management, data analytics, business intelligence and population health management Strategic conflicts between primary care and hospitals, specialty, other providers Addressing and accounting for the social determinants 21

Provider Capacity Domains for VBP Organizational Leadership and Partnership Development Change Management and Service Delivery Transformation Financial, Operational and Data Analysis 22

Provider Needs in VBP 23

Capacities Necessary across the APM Framework 24

Key Takeaways Value based payment is a national movement and Washington is taking part in an active way Achievement of quality is no longer a nice to have; it is an imperative Honest capacity assessment is key and addressing patient complexity is imperative (from the plan and provider level) Better Together: Providers, Plans, the State (and the Federal Government) must collaborate to make this work for the individual

MCO Perspective on Value-Based Purchasing Caitlin Safford Director, Government Relations Amerigroup

Understanding the VBP Spectrum There isn t just fee-for-service and full capitation and risk A variety of models that can be tailored Purpose of Understanding the Spectrum Better reactivity when plans come to you with models Allows for more proactivity to approach plans with the models that work for your organization Medicaid-Specific: plan for how you want managed care to be a part of your care team When risk is shared, there are more opportunities and levers for collaboration but potential for duplication how can we work better as a team for our member/patient/client?

Amerigroup Washington Discussion: A few examples of how Medicaid value-based contracting is working in Washington

Internal Processes for Practices to Evaluate Risk Stratification Tools Do you have them or can you create them? Registries and EHR/Practice Management Capabilities How do you know how you are performing on certain metrics? Budget and Revenue Cycle Are you budgeting for potentially earning revenue when outcomes improve vs. services rendered? Do your revenue cycle and billing staff understand the value-based payments? Innovation and Creativity How quickly can you adapt when processes aren t working well?

Systemic Issues and Points of Future Discussion At the moment, value-based payment in Medicaid in WA is built for Primary Care What does that mean for better team-based care with specialists? What about the patients who don t want to come to the doctor? Where s the risk for hospitals? What about patients who primarily see their behavioral health provider, not their PCP?

Questions? Savannah Parker Performance Accountability Manager WA State Health Care Authority Savannah.parker@hca.wa.gov Kat Ferguson-Mahon Latet Manager, Health System Innovation Community Health Plan of Washington Kat.latet@chpw.org Caitlin Safford Director, Government Relations Amerigroup Caitlin.Safford@Amerigroup.com

Q & A The project described was supported by Funding Opportunity Number CMS-1G1-14-001 from the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services. The contents provided are solely the responsibility of the authors and do not necessarily represent the official views of HHS or any of its agencies.