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Tel. 202-331-4600 | Fax 202.331.4604 | www.communityplans.net 


March 10, 2008
 
   CLICK TO READ ARTICLES.
  DC-based Health Services for Children with Special Needs Joins ACAP

Health Services for Children with Special Needs, Inc. (HSCSN) has joined ACAP as its 37th plan. HSCSN is an innovative care management network coordinating health, social, and education services for the pediatric Supplemental Security Income (SSI) and SSI-eligible populations of Washington, DC. The plan is part of the HSC Health Care System and reports to the Executive Vice President for the System, John Mathewson. HSCSN is not-for-profit, as is the HSC Health Care System.

Benefits to members and their families include traditional Medicaid benefits plus expanded health care services including individualized care management; 24-hour access to care coordination; outreach services; respite care; medically necessary home modifications; and mental, behavioral, and developmental wraparound services.  Read More...

 
PUBLIC POLICY AND ADVOCACY
  Legislative Update: The DRE Soldiers On, Congress Considers Regulation Fixes

CMS Regulation Update: New Tamper-Resistant Prescription Pads Requirement in Effect April 1

CMS Regulation Update: Premiums and Cost Sharing in the Medicaid Program

CMS Regulation Update: State Flexibility for Medicaid Benefit Packages

 
EXCELLENCE AND ACCOUNTABILITY
  RECAP: Chief Medical Officer (CMO) Roundtable

RECAP: Marketing Roundtable

NCQA Issues Proposed Changes for 2009

NCQA Posts Special Needs Plan Information/ Medicare Roundtable Discussion on March 12

AHRQ to Hold Audio Conference on Consumer Financial Incentives in Health Care March 13

 
ACAP PLAN NEWSFLASH
  Business Council of Westchester Honors Hudson Health Plan CEO Georganne Chapin

Policy Analyst Hugh Ewart to Depart Community Health Plan
 
NEWSFLASH
  AHRQ Issues Annual Reports

NASHP Holds First of a Series of Webinars on the Medical Home

CMS Issues Checklist for Onsite Reviews on Potential HIPAA Security Violations

Commonwealth Fund Issues Guidance on Developmental Screening Instruments

Health Care Spending Expected To Double By 2017, Reaching $4.3 Trillion And Consuming Nearly One-Fifth Of The Economy, Federal Report Says

Medicare/Medicaid Integration
Vendor Alliances
  First Recovery Group becomes Preferred Subrogation Vendor for ACAP

 

 
UPCOMING ACAP CALLS
 

3/11 Medicare Committee Call

3/12 Medicare Roundtable

3/13 Chief Operating Officers Roundtable

3/17 Program Committee Call

3/17 Quality Management Committee Call

3/18 Finance Committee Call

3/20 Pharmacy Roundtable

3/25 Executive Committee Call

3/26 Policy Roundtable

3/27 Compliance Officers Roundtable (** Note this is a NEW Date**)

4/1-4/3 ACAP Board, CFO, and Medicare Meeting San Jose, CA (Click Here to Register and View Agendas)


 
 EVENTS CALENDAR
  CLICK TO VIEW...
 ACAP LINKS

 
 
Affinity Health Plan
Alameda Alliance for Health
AmeriHealth Mercy Health Plan
Boston Medical Center HealthNet Plan

CalOptima

CareOregon
Care Source
Carolina Crescent Health Plan, Inc.
Children's Mercy Family Health Partners
Colorado Access

Commonwealth Care Alliance
Community Health Network of Connecticut
Community Health Plan
Contra Costa Health Plan
Denver Health

Health Plan of San Mateo
Health Plus

Health Right

Health Services for Children with Special Needs
Horizon NJ Health
Hudson Health Plan

LA Care Health Plan
MDwise
MercyCare
Monroe Plan for Medical Care, Inc.
Neighborhood Health Plan of Massachusetts
Neighborhood Health Plan of Rhode Island
Network Health

Prestige Health Choice

Santa Clara Family Health Plan
Total Care
University Physicians HealthCare

UPMC Health Plan
Virginia Premier Health Plan, Inc.

  DC-based Health Services for Children with Special Needs Joins ACAP

Health Services for Children with Special Needs, Inc. (HSCSN) has joined ACAP as its 37th plan. HSCSN is an innovative care management network coordinating health, social, and education services for the pediatric Supplemental Security Income (SSI) and SSI-eligible populations of Washington, DC. The plan is part of the HSC Health Care System and reports to the Executive Vice President for the System, John Mathewson. HSCSN is not-for-profit, as is the HSC Health Care System.

Benefits to members and their families include traditional Medicaid benefits plus expanded health care services including individualized care management; 24-hour access to care coordination; outreach services; respite care; medically necessary home modifications; and mental, behavioral, and developmental wraparound services.

Holistic and proactive, HSCSN is the only Medicaid health plan that coordinates all aspects of physical, mental, behavioral and developmental care and services for its members. HSCSN started as a demonstration project under an HHS section 1115 waiver in 1995. They presently serve over 80% of the SSI-eligible pediatric population throughout the Washington, DC metropolitan area with more than 2,000 providers active in their network.

The mission of HSCSN is fourfold. HSCSN strives to:

  • Ensure access to health care and services through development, support, and partnership with a committed network of community-based providers and services.
  • Facilitate members’ appropriate and timely usage of services with a focus on disease prevention, restoration to optimal health, adaptation to chronic illness or disease, health promotion and palliation at the end of life.
  • Collaborate with public and private organizations, agencies, caregivers and members to jointly identify and creatively remedy situations and circumstances that threaten the optimal health of children and youth with special needs, their families and communities.
  • Maximize the effectiveness of monies allocated for the health care and services of children and youth with special needs.

HSCSN has a sister organization, The HSC Pediatric Center, formerly The Hospital for Sick Children, and a parent supporting organization, The HSC Foundation.

 
 
 
PUBLIC POLICY AND ADVOCACY
  Legislative Update: The DRE Soldiers On, Congress Considers Regulation Fixes

Just two weeks after ACAP’s Legislative Fly-In, ACAP was embroiled in another behind the scenes effort to attach the Drug Rebate Equalization Act (DRE) to legislation moving through the House of Representatives. The legislation, H.R. 1424, the Paul Wellstone Mental Health and Addiction Equity Act of 2007, passed the House last week and would ensure that commercial insurers and self-insured plans treat mental health services in the same manner that they treat medical services. To pay for the legislation, the House Democrats increased the Medicaid drug rebate to 20.1% -- a provision that was also included in the CHAMP legislation and one that ACAP has been seeking to pair with the DRE – or fight altogether – for the last 9 months out of concern for the provision’s likelihood to push states to carve drugs out of Medicaid managed care. At this point, the one saving grace is that the Senate passed a different version of the legislation and it is a long shot that the House’s version of mental health parity can pass the upper chamber. Over the last week, ACAP worked with Representative Bart Stupak to try to replace the rebate offset with the DRE. The response back from the Committee? “You don’t have enough supporting cosponsors.” So, although we picked up Reps. Todd Platts (R-PA) and Charles Wilson (D-OH) as a result of the fly-in, more cosponsors are needed to start making our voices heard among the people making the decisions. So ACAP’s work continues to be cut out for us…the only way that we will be able to provide momentum for the DRE is to get more cosponsors for H.R.3061/S.1589. Please make it a regular habit to contact your Representatives and Senators and ask them to cosponsor the Drug Rebate Equalization Act.

Last Thursday, House and Senate Medicaid staff met with health advocates across town and indicated they were looking at introducing legislation to delay the spate of Medicaid/SCHIP regulations issued by the Bush Administration since last summer – possibly as soon as this week. It was believed that all the regulations would be addressed in this legislation, but it was unclear whether the legislation would address the SCHIP policy guidance known as the “August directive.” In addition, the regulations are addressed in the House’s FY09 budget resolution (see below). House Democratic Leadership staff also reiterated its support for addressing the regulations. On the Senate side, staff was more skeptical that they would be able to move the legislation given the extremely tight margins in the Finance Committee and the Senate and if something were to move, it would likely be moved as part of a bigger package of policy, such as the Medicare “doc fix” package. In addition to the support of the House Democratic Caucus, staff also highlighted the bipartisan support of the nation’s governors and discussed a letter sent by the governors to Congress expressing their support for delaying the regulations. That letter can be downloaded from the National Governors’ Association website at www.nga.org.

In a related story, the House Oversight and Government Reform Committee issued a report this week looking at the impact of the Medicaid regulations. The report found that, according to the states, the fiscal impact of the CMS regulations would reduce federal payments by $50 billion over the five years, three times what the Administration has said the cost would be. Oversight Committee Chairman Henry Waxman said “As the economy tips into recession, the last thing we should be doing is taking federal funds from states, especially funds that are supposed to help people with their health and medical expenses…The Bush Administration has proposed drastic changes in the Medicaid program, without even attempting to understand the financial impact on states, localities, and the people they serve. The Governors have opposed these proposals on a bipartisan basis…I hope that the Administration will reconsider these misguided regulations.” That report can be found at http://oversight.house.gov/story.asp?ID=1778.  

Also at the meeting Thursday between Hill staffers and health advocates, Congressional staff discussed the movement of legislation to provide a temporary increase in the Medicaid matching rate. These bills, H.R.5268 (King/Dingell/Pallone) and S.2620 (Rockefeller) and provides a +2.95% across the board increase in FMAP and is the same percentage as what was signed by President Bush in 2003. The bill’s sponsors are looking for additional cosponsors of this legislation and for more bipartisan support.

The House Budget Committee began the process this week to move its FY2009 Budget Resolution and provide some budgetary/PAYGO protection for top Democratic legislative health care priorities. The “Chairman’s Mark” of the House Budget Resolution rejects the billions of dollars in Medicare/Medicaid reductions proposed in the Administration’s FY2009 budget request and instead goes head to head with the Administration over several policies. Importantly, the resolution establishes a deficit neutral reserve fund to address legislation that “prevents or delays the implementation of regulations or other administrative actions that would affect Medicaid, SCHIP, and other programs.” The Chairman’s Mark also provides room for a $50B increase in the State Children’s Health Insurance Program – $15B more than was provided under the compromise Senate SCHIP legislation vetoed by the President last year and approximately $30B more than what was proposed under the Administration’s budget. In addition, the House budget resolution also provides a reserve fund to address Medicare issues, including the Medicare “doc fix,” “protecting beneficiaries from premium increases,” and making improvements to the Medicare Prescription Drug Benefit. The Budget Resolution does not go to the President for his signature and is an important document that lays the groundwork for potential legislative action later on – importantly, it does not allow a budget reconciliation package to be filibustered…meaning that it only needs 50%+1 to pass either body. Although such a reconciliation package could likely be vetoed, it would streamline the legislative action surrounding the effort.

Click Here to Make a Comment about this Posting on ACAP’s New Blog! You can post your comment by logging into ACAP’s New Website! Your comments will only be seen by ACAP Plan Members.

CMS Regulation Update: New Tamper-Resistant Prescription Pads Requirement in Effect April 1

Beginning April 1, 2008, most written prescriptions for Medicaid recipients – excluding those reimbursed by Medicaid health plans – must be on paper with at least one tamper-resistant feature as outlined by CMS and defined by your state. Beginning October 1, 2008, these same prescriptions must be on paper that meets all three baseline characteristics of tamper-resistant pads. As defined by CMS, tamper-resistant pads must (1) prevent unauthorized copying of a completed or blank prescription form; (2) prevent the erasure or modification of information written on the prescription by the prescriber; or (3) prevent the use of counterfeit prescription forms.

States are responsible for defining specific features that meet the baseline characteristics in order for a prescription to be considered tamper-resistant in each state. Therefore, we recommend reviewing your state’s website for guidance on acceptable tamper-resistant features. Additional information on CMS’ requirements can be found at: http://www.cms.hhs.gov/DeficitReductionAct/30_GovtInfo.asp

Please note that August 20 policy guidance issued by CMS mentioned that when a managed care entity pays for the Medicaid prescription, the tamper-resistant requirement does not apply. In addition, electronic prescriptions, faxed prescriptions and prescriptions sent over the telephone are exempt from this requirement. Failure to comply with this requirement could result in a withholding of Medicaid reimbursement.

CMS Regulation Update: Premiums and Cost Sharing in the Medicaid Program

Please note that CMS is inviting comments on this proposed rule, based on statutory changes enacted by the Deficit Reduction Act of 2005 (DRA). Comments must be received by 5 pm EST on March 24, 2008. Please see http://frwebgate3.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=96076728333+30+0+0&WAISaction=retrieve for instructions on submitting comments.

In brief, the proposed rule increases the amount states can charge people for health care services, gives states new authority to charge premiums for certain people in Medicaid, and gives states the ability to deny health care or coverage to people who cannot afford the cost-sharing or premiums they are charged. This policy was enacted by the DRA and the Tax Relief and Health Care Act of 2006 (TRHCA).

CMS Regulation Update: State Flexibility for Medicaid Benefit Packages

CMS also welcomes comments on this proposed rule based on the DRA and related to increased state flexibility for Medicaid benefits. Again, comments must be received by 5 pm EST March 24, 2008. Please see http://frwebgate2.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=961205446045+35+0+0&WAISaction=retrieve for instructions on submitting comments.

The proposed rule provides guidance on a new section added to the Medicaid statute by the DRA, which gives states flexibility for the benefits it provides to certain Medicaid recipients under an approved Medicaid state plan. In brief, the provision allows states to provide some Medicaid enrollees benchmark or benchmark-equivalent benefit packages.

 

 
 
ACAP SHARING SERVICES

In the members support section of our website, there are several areas that we want to remind you to look at periodically, including a large section of shared documents, which includes disaster recovery plans, compliance documents, and job descriptions. We also have several surveys we have done of our plans. Please visit our Members Support section on our new website. 
 

 

 
ACAP JOB BANK
 
ACAP plans can post job announcements in our job bank. Please see our website for more details. You can email job announcements to Christina Boye at cboye@communityplans.net.
 
 
 
EXCELLENCE AND ACCOUNTABILITY
  Chief Medical Officer (CMO) Roundtable

On February 28, 2008, thirteen ACAP health plans participated in the CMO Roundtable call that focused on health plan management of radiology services. The call started with a brief overview of the issue. The featured presenter on this call was Dr. Thomas Hui, Medical Director of Horizon NJ Health who described an initiative in development at the health plan that focuses on the patient safety aspect of monitoring radiation exposure. This was followed by an open discussion that included the role of provider and member education.

Marketing Roundtable

On March 6, 2008, a Marketing Roundtable was held that focused on the health plan websites as an integral component of the plan’s marketing strategy. A panel of Marketing Directors from ACAP health plans provided an overview of how the company website fits into the health plan’s overall marketing plan. They discussed how the website has evolved over time; how successful the website has been as a marketing tool and the plan’s measure of success; how the website addresses the needs of diverse populations; and what changes they anticipate in the future.

NCQA Issues Proposed Changes for 2009

On February 14, 2008, NCQA issued proposed changes for the 2009 HEDIS and CAHPS measures. The changes include: five new effectiveness of care measures (Immunizations for Adolescents, Care for Older Adults, Medication Reconciliation, Body Mass Index Assessment for Adults, Body Mass Index Percentile Assessment, and Counseling for Nutrition and Physical Activity for Children and Adolescents); revisions to three existing measures (Antidepressant Medication Management, Breast Cancer Screening, Childhood Immunization Status); and revisions to the Child Version of the CAHPS Health Plan Survey. Two of the new measures are specific to Medicare (Care for Older Adults and Medication Reconciliation). More details including the proposed measure specifications can be found on the NCQA website at www.NCQA.org. NCQA will accept public comments on the proposed changes until March 14, 2008 at 5 pm. ACAP plans to submit public comments. To insure we captured ACAP member concerns, a call was held on March 7, 2008 to discuss the 2009 proposed changes.

NCQA Posts Special Needs Plan Information/ Medicare Roundtable Discussion on March 12

The Centers for Medicare & Medicaid Services (CMS) has contracted with NCQA to evaluate Medicare Special Needs Plans (SNPs). The evaluation approach includes the collection of SNP-specific HEDIS quality measures and Structure & Process (S&P) measures. NCQA recently revised their website to add a Special Needs Plan section which contains all SNP related information including upcoming training for SNPs. ACAP will host a Medicare Roundtable with NCQA on March 12.

AHRQ to Hold Audio Conference on Consumer Financial Incentives in Health Care March 13

The U.S. Agency for Healthcare Research and Quality (AHRQ) invites all comers to participate in a free, live audio conference Thursday, March 13 from noon to 1:15 pm EST on the topic of consumer financial incentives in health care. The 75-minute audio conference will provide a thorough overview of findings from AHRQ's new publication Consumer Financial Incentives: A Decision Guide for Purchasers. Speakers will discuss the available evidence, share a variety of applied examples, and address questions from participants. Application of consumer incentives to the public sector will be specifically illustrated with a Medicaid case example. The audio conference will feature two distinguished panel members - Adams Dudley of the Institute for Health Policy Studies at UCSF, and Ann Robinow, an Independent Consultant. The event is free, but a simple registration is required and space is limited. Please go to http://academyhealth.org/ahrq/cfiaudio/ to register. 

 

 
 
ACAP PLAN NEWS
  Business Council of Westchester Honors Hudson Health Plan CEO Georganne Chapin

The Business Council of Westchester will induct ACAP Board Member Georganne Chapin as one of the 2008 Business Hall of Fame winners. Georganne joins other entrepreneurs of Westchester that will be receiving awards in small business, family business, and corporate citizenship. The winners will be honored at an awards dinner at the Glen Island Harbour Club in New Rochelle on April 16.

Georganne will receive the women in business award. She is the President and Chief Executive Officer of Hudson Health Plan. The nonprofit is a provider of state-sponsored managed health care services. More than 75,000 low-income people in the Hudson Valley area receive services from Hudson Health Plan.

Policy Analyst Hugh Ewart to Depart Community Health Plan

Effective March 12, Policy Analyst Hugh Ewart will no longer be working for the Community Health Plan in the State of Washington. Hugh has accepted a new and exciting challenge, and will now fill the position of Director of State and Federal Government Affairs at Seattle Children's Hospital and Regional Medical Center.

Undoubtedly Hugh’s departure is a substantial loss for Community Health Plan, and he will be sorely missed at ACAP as well. We have benefited greatly from his timely, conscientious, and thoughtful insights on federal health policy, and have very much enjoyed having him as a colleague. Please join us in wishing Hugh good luck!

 

 

 
 
Calendar

Look to the ACAP Calendar for Upcoming ACAP Calls, Meetings, and Events

March 11 Medicare Committee Call

March 12 Medicare Roundtable

March 13 Chief Operating Officers Roundtable

March 17 Quality Management Committee Call

March 17 Program Committee Call

March 18 Finance Committee Call

March 20 Pharmacy Roundtable

March 25 Executive Committee Call

March 26 Policy Roundtable

March 27 Compliance Officers Roundtable (** Note this is a NEW Date**)

April 1-3 ACAP Board, CFO, and Medicare Meeting San Jose, CA (Click Here to Register and View Agendas)

April 17 Chief Information Officer Roundtable (**Note this is a NEW date**)

April 10 Quality/Disease Management Roundtable

April 24 Human Resource Directors Roundtable
 

Vendor Alliances

First Recovery Group becomes Preferred Subrogation Vendor for ACAP:

First Recovery Group has become ACAP’s newest preferred vendor. First Recovery Group has increased subrogation recoveries for every client, and attributes its success to three factors:

  • First Recovery’s proprietary SubroMAX software identifies more claims with subrogation potential than other systems.

  • First Recovery involves lawyers in the recovery process for every case.

  • First Recovery’s system integrates technology and people in a way that works well for health plans.

First Recovery Group’s technology staff developed its SubroMAX® system, which is adaptable to the specific characteristics of each client’s data feed. This significantly increases the identification of claims. This same flexibility enables FirstRecovery to customize reporting to the requirements of each client, as well.

First Recovery Group is the largest independent healthcare cost management company focused solely on subrogation claims recovery. The group specializes in subrogation recoveries for government program and MCOs, and currently represents over 35 government program MCOs, including several ACAP plans. If you are interested in learning more about First Recovery Group’s services, please call Michelle Martin at 888-449-4805 or visit their website at
www.firstrecoverygroup.com.

 

 
 
  AHRQ Issues Annual Reports

The Agency for Healthcare Research and Quality recently released the 2007 National Healthcare Quality Report and the 2007 National Healthcare Disparities Report. This is the fifth edition of the reports that measure trends in effectiveness of care, patient safety, timeliness of care, patient centeredness, and efficiency of care. Complete copies of the reports can be found at http://www.ahrq.gov/qual/qrdr07.htm.

NASHP Holds First of a Series of Webinars on the Medical Home

On March 6, the National Academy for State Health Policy (NASHP) held the first of four free webinars to focus on the patient centered medical home model. The program focused on different reimbursement methods states are currently using to support patient centered medical home in Medicaid and SCHIP programs. NASHP and the Patient Centered Primary Care Collaborative (PCPCC) have partnered to work on an initiative to advance patient-centered medical homes. This one-year project is supported by The Commonwealth Fund and is based on the joint principles of the Patient Centered Medical Home Model (PCMH) developed by the AAP, AAFP, ACP, and AOA, among others. These principles include: personal physician; physician directed medical practice; whole person orientation; coordinated and/or integrated care; quality and safety; enhanced access to care; and payment that reflects value. In recent months, several states have considered or passed new legislation or regulations to promote the PCMH.

CMS Issues Checklist for Onsite Reviews on Potential HIPAA Security Violations

On February 20, 2008, the Office of E-Health Standards and Services (OESS) within CMS posted a document entitled Information Request for Onsite Compliance Reviews. According to the CMS website, “OESS recently procured contracted services to assist with onsite compliance reviews related to potential HIPAA Security Rule violations. To ensure that the industry has an idea of the type of information OESS might request during these reviews, OESS developed a sample security checklist, which highlights several areas of vulnerability associated with the security of electronic protected health information.” The document outlines who might be interviewed as part of an onsite review, what documents may be requested including policies and procedures and evidence that certain standards were followed; as well as other documents such as the risk management plan. To review the entire document, click http://www.cms.hhs.gov/Enforcement/025_GeneralEnforcementInformation.asp#TopOfPage

Commonwealth Fund Issues Guidance on Developmental Screening Instruments

The Commonwealth Fund issued a guide entitled Pediatric Developmental Screening: Understanding and Selecting Screening Instruments. The purpose of the report is to provide practitioners with guidance on choosing the right screening instrument for their practice. It includes a section that compares various screening instruments including information on clinical utility as well as sensitivity and specificity by population and age. There is also an interactive web feature that can be used by providers to assist in the selection of an appropriate screening tool.

Health Care Spending Expected To Double By 2017, Reaching $4.3 Trillion And Consuming Nearly One-Fifth Of The Economy, Federal Report Says

By 2017, U.S. health care spending is expected to nearly double from 2007’s projected level, reaching $4.3 trillion and consuming 19.5 percent of the nation’s gross domestic product (GDP), federal analysts report in today’s Web-Exclusive edition of Health Affairs. The ten-year estimates follow last month’s report from the government that health spending in 2006 surpassed $2.1 trillion for the first time, accounting for 16.0 percent of GDP.

“Health care is expected to consume an expanding share of the U.S. economy over the next decade, meaning policymakers, insurers, and the public collectively face some difficult decisions about the way health care is delivered and paid for,” said Centers for Medicare and Medicaid Services (CMS) economist Sean Keehan, one of the authors of the government’s annual health care projection report. “With the implementation of the Medicare Part D benefit behind us, a focal point of the next ten years will be the impending movement of the baby-boom generation into Medicare,” he continued.

Health care spending is expected to hit $2.2 trillion in 2007, growing on average 6.7 percent through 2017 and outpacing economic growth by about 1.9 percentage points each year, say Keehan and his fellow economists and actuaries from the CMS Office of the Actuary. Steady health spending growth coupled with what analysts project to be somewhat lower economic growth of about 4.7 percent annually is expected to result in a gradual increase in health spending as a share of GDP.

Medicare And Medicaid

Although the outlook for national health spending growth calls for continued stability for the next ten years, the authors note that they expect the leading edge of the baby-boom generation to begin to affect the Medicare program. Over the next decade, a slowdown in growth in private spending is expected to be offset by accelerating growth in public-sector spending, partially attributable to the baby-boomer generation enrolling in Medicare. The CMS analysts say that this increase in the number of Medicare enrollees is projected to contribute 2.9 percentage points to growth in Medicare spending by 2017.

By 2017, Medicare spending is expected to account for $884 billion, or just over one-fifth of all national health spending. This is up from the projected spending level of $427 billion in 2007, when Medicare spending growth is expected to slow to 6.5 percent. The projected 2007 growth rate indicates a significant deceleration from 18.7 percent growth in 2006, when new spending associated with the Medicare prescription drug benefit was added. Also contributing modestly to the expected slowdown from 2006 to 2007 are smaller increases in Medicare Advantage (MA) plan payments due to risk adjustments to those payments.

The CMS analysts project that growth in private health care spending will rebound to 6.3 percent in 2007 following the somewhat slow growth of 5.4 percent in 2006 that was related to the implementation of Medicare Part D. After peaking at 6.6 percent in 2009, growth in private health care spending is expected to slow through 2017 to 5.9 percent.

Medicaid spending also is expected to continue to rise at a faster rate than overall health spending during the coming decade. Medicaid expenditures are projected to grow 8.9 percent in 2007 to $338.2 billion. Aside from the one-time transition effects of shifting prescription drug costs for those dually eligible for both Medicare and Medicaid to Medicare Part D, this rebound is also influenced by continued strong growth (above 10.0 percent) in spending for home health care and other personal care services. Moreover, as a result of improved fiscal conditions at the time, states were expected to increase provider payment rates to hospitals and physicians in 2007 more than in recent years. Medicaid spending in 2008 is projected to grow 6.8 percent and reach $361.2 billion. For the next decade, it is expected to grow at an average of 7.9 percent per year, reaching $717.3 billion, or 16.8 percent of national health spending, by 2017.

http://content.healthaffairs.org/cgi/content/abstract/hlthaff.27.2.w145

Medicare/Medicaid Integration

As part of its New Freedom Initiative, CMS has issued a website called “Roadmap to Integrated Care.” This site includes all CMS guidance, letters, requirements and other documents for states to develop integrated care initiatives with health plans. This “roadmap” is the culmination of several years’ effort to develop and organize this material in one place. For more information, see: http://www.cms.hhs.gov/IntegratedCareInt/02_Integrated%20Care%20Roadmap.asp