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System Reform Efforts in Medicaid. Kathleen Nolan National Assoc. of Medicaid Directors July 15, 2013. State Variability to consider. Tools that are appropriate for your state will differ, depending on a number of qualities, such as: Managed care versus fee-for-service
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System Reform Efforts in Medicaid Kathleen Nolan National Assoc. of Medicaid Directors July 15, 2013
State Variability to consider Tools that are appropriate for your state will differ, depending on a number of qualities, such as: • Managed care versus fee-for-service • Competitive plan selection • Delivery system factors • Covered populations • Health status, utilization patterns, and cost trends.
Why Medicaid can be a leader in delivery system and payment reform • Medicaid is a major purchaser for: • Births and pregnancy, • Disability services, • long-term care, • chronic disease management and prevention: • all of which are topics in delivery system redesign and important opportunities for quality improvement and cost containment.
Payment reform buckets • Targeted payment adjustment policies • Hospital errors or readmission rates result in a payment change. • Managed fee-for-service • Incentivizing care or services practice by practice in FFS environments. • Bundled payments • Single payment for a set of services, usually based on a health condition. • Care management initiatives • Add-on payments for non-clinical services and case management for chronically ill or disabled patients. • Health homes • Enhanced payments for a range of clinical and supportive services for a population.
Payment reform must be joined to quality Payment reforms must include quality monitoring and be connected to improvement in care and outcomes. • Quality metrics must be developed and an oversight plan that will monitor system outcomes • Payment must be tied to these quality outcomes, not just to reducing expenditures. • Need strong data collection systems and analytics to ensure outcomes are achieved and avert unintended consequences.