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The Trust and MiPCT Partnerships in Health Care Innovation. Devorah E. Rich, PhD Senior Program Director UAW Retiree Medical Benefits Trust. The mission of the Trust is to serve as a source for retiree health care coverage for its members: Creating a new model of health care for retirees
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The Trust and MiPCTPartnerships in Health Care Innovation Devorah E. Rich, PhD Senior Program Director UAW Retiree Medical Benefits Trust
The mission of the Trust is to serve as a source for retiree health care coverage for its members: • Creating a new model of health care for retirees • Partnering with members, health plans, and providers to improve the health and quality of life for retirees • Prudent purchaser of health benefits focused on providing the best value for its members • Responsible steward of the fund’s assets
The Trust … • Manages health care benefits for 820,000 members • Uses data to identify opportunities • Actively engages in partnerships that test and spreads innovations in health care delivery • Must live within its means, now and in the future
Membership Demographics Trust Population by State MI 40.4% WI 2.6% NY 4.5% IL 2.3% OH 11.8% CA 1.3% IN 8.7% NJ 1.3% MO4.0% KY 1.9% TN 2.3% AL 1.5% GA 2.5% TX 1.6% Top 10 states (yellow + gold) – 83% of population Top 15 states (yellow + blue) – 90% of population FL 3.7% 1% is approximately 8,300 covered lives
Multi-Generational Trust Membership Z Baby Boomers Born 1946-1964 Silent Generation Born 1925-1945 Children of the Great Depression Y X G.I Generation Born 1901-1924 WWII Veterans Also called Traditional or Veterans Pre-65 Post-65 Current Dependents Future Retirees 104,000 145,000 149,000 117,000 101,000 87,000 55,000 64,000 58,000 48,000 Figures rounded to nearest thousand as of December 2011 Member Age Buckets
Trust Demographics • Over 521,000 households • Single people represent 48% of all households • 40,700 dependent children • Age ranges from zero to 112 • 58% of members are 65 or older • 25% are 75 or older • Approximately 20,000 members (2.4%) are 90 or older (71% women)
Future Demographics • Approximately 2,000 members die each month • 64% of members covered by Medicare • Future retirees: Potentially 104,000 • Medicare Members will increase with aging of population • 34,500 turn 65 in 2012 • 30,000 turn 65 in in 2013
Trust Membership in Major Michigan Metropolitan Service Areas
Estimated Yearly Health Care Spend ______________ $4.4 Billion Medical Pharmacy 10
Annual Medical Spend • Medical spend: 68% of Trust’s total health care spend • Approximately 168,000 admissions • Over 262,000 emergency room visits • Variation in care and quality evident across markets and care providers
Trust Annual Pharmacy Spend • Pharmacy spend: 32% of Trust’s total health care spend • 14 million prescriptions filled in 2011 • Increased generic utilization rate from 68% to 80% • 47% of Trust Medicare members take 10 or more prescriptions Source: Medco 2011
Patient StratificationUtilizing Pharmacy Data Well Constipation/ Hemorrhoids, Contraception/ Hormone Therapy, Skin Conditions Acute Colds & Flu, Strep Throat, Ear Infection, Headache, Sprains Chronic Complex Heart Disease, Diabetes, Arthritis, High Blood Pressure, High Cholesterol,Dementia, Back Pain Multiple Chronic Conditions such as Heart Failure & Diabetes, Cancer, AIDS, Multiple Sclerosis, Metabolic Syndrome Patient Care Needs • Provides specialized patient-centric care for members with chronic or complex conditions. • 76.2% of the population are Chronic or Complex patients • Chronic and Complex represent 99.5% of Plan Cost Source: Medco Q2- 2011 13
MiPCT Matters to the Trust • 75% of members have chronic disease • Trust provides member coverage over their lifetime • Trust manages its resources to provide coverage for many years into the future • Need innovative models that engage patients in managing chronic disease Source: Medco 2011
Trust Active MiPCT Supporter • Steering Committee • Data and Evaluation Committee • Incentive Working Group • Patient Advisory Council—Co-Chair Source: Medco 2011
Measurable Results Paramount • Trust has a wealth of data • Trust uses data to show variation and opportunities • Key improvement areas: • Radiology • Avoidable Admissions • ER Utilization • Cancer • Diabetes • Advance Illness management Source: Medco 2011
Road to Best Value for Members • A new model of health care • Driving innovations in care • Providing measurable value based upon the Triple Aim: • Superior Quality • Superior Customer Experience • Affordable Care • MiPCT affords opportunity to manage patients with chronic disease
Impact of Chronic Disease Management • Reduced Emergency Room visits • Reduced avoidable hospitalizations • Reduced readmissions • Healthier retirement • Sustainability of Trust funding over time
The Golden Years Source: Medco 2011