Issue #156

Key Updates:

The Florida Agency for Health Care Administration has released a Request for Proposals (RFP) on the state’s Medicaid managed care program for dental care. The state will award at least two contracts and they will be expected to start in mid-2024 and run through 2030 (Health Payer Specialist, October 9).

The Chair of the Senate Aging Committee requested CMS to create a plan to implement recommendations made by the HHS Office of Inspector General (OIG) to address inappropriate prior authorization denials from Medicaid managed care plans. It is unclear whether CMS agrees with the recommendations made by the OIG but agreed to work with states to address inappropriate prior authorization denials. CMS also indicated that it will wait to take further action on the recommendations when the prior authorization rule from last December is finalized (Inside Health Policy, October 5).

The Congressional Budget Office (CBO) is seeking additional research as it determines the potential costs of anti-obesity medication coverage legislation. Currently, Medicare is not authorized to cover these medications. CBO acknowledges that there is potential for cost-savings from improved health outcomes and reductions in other healthcare services that may outweigh the cost of the drugs and is willing to consider such research prior to scoring  the legislation (Inside Health Policy, October 5).

From October 4 to October 11, CMS approved twelve SPAs.

Federal Updates

Featured Content

Senate Committee Seeks CMS Plan on Prior Authorizations

  • The Chair of the Senate Aging Committee requested CMS to create a plan to implement recommendations made by the HHS Office of Inspector General (OIG) to address inappropriate prior authorization denials from Medicaid managed care plans. CMS did not say whether it agreed with the five recommendations made by the OIG but did agree to work with states to address inappropriate prior authorization denials. CMS also indicated that it will wait to take further action on the recommendations when the prior authorization rule from last December is finalized. The OIG report found that denials of care by Medicaid managed care plans were more than double that in Medicare Advantage plans. The OIG included 115 Medicaid managed care plans in the review and determined that one of every eight prior authorization requests for services by these plans were denied in 2019. Twelve plans had prior authorization denial rates of greater than 25% (Inside Health Policy, October 5).

Congressional Budget Office Pushes for Additional Research on Anti-Obesity Drugs

  • The Congressional Budget Office (CBO) is seeking additional research as it determines the potential costs of anti-obesity medication coverage legislation. Currently, Medicare is not authorized to cover these medications, but the Treat and Reduce Obesity Act of 2023 (TROA) aims to change that. However, the CBO has called for more research as it analyzes the legislation, pointing out significant gaps in the literature. CBO acknowledges that there is potential for cost-savings from improved health outcomes and reductions in other healthcare services that may outweigh the cost of the drugs and is willing to consider such research prior to scoring the legislation. Currently, anti-obesity medications are expensive, costing the U.S. healthcare system nearly $173 billion each year and sales of these drugs have only been increasing in the last year. However, there is some variation in the published studies on anti-obesity medication and healthcare costs. One paper suggests that covering these medications would result in significant savings in healthcare spending. In contrast, a study published in the New England Journal of Medicine suggests that covering these drugs could lead to a significant increase in CMS’ budget and Part D spending (Inside Health Policy, October 5).

News

  • Medicaid directors across the country are already planning for next year’s redeterminations and hoping that CMS will allow them to use the variety of unwinding-specific flexibilities currently in place. These flexibilities include Section 1902(e)(14)(A) waivers that allow states to renew beneficiaries’ Medicaid coverage based on their eligibility for the Supplemental Nutritional Assistance Program or Temporary Assistance for Needy Families Program, work with managed care plans to update beneficiaries’ contact information, and to use the National Change of Address Database and United States Postal Service Returned Mail systems to obtain beneficiary contact information (Inside Health Policy, October 6).
  • According to a study published in Health Affairs, states that expanded Medicaid saw lower uninsurance rates in nonelderly adults living in redlined areas (neighborhoods designated as undesirable and highest investment risk by the Home Owner’s Loan Corporation). Researchers compared uninsurance rates in Medicaid expansion and non-expansion states prior to (2009-2013) and after (2015-2019) the state option to expand Medicaid pursuant to the Affordable Care Act took effect in 2014. On average, states that expanded Medicaid saw a 6.2% decrease in uninsurance rates in the most heavily redlined census tracts throughout the country. Researchers highlighted the importance of considering structural racism and other contextual factors when evaluating healthcare and health policies. Researchers also claim that states that “do not expand Medicaid delay progress toward health equity” (University of Iowa College of Public Health, October 3).
State Updates

Featured Content

Florida Issues RFP for Medicaid Dental Managed Care

  • The Florida Agency for Health Care Administration has released an RFP for the state’s Medicaid dental managed care program. The state intends to award at least two contracts that they expect to start in mid-2024 and run through 2030. The Medicaid dental managed care plan contracts will be worth around $12 billion. Currently, the Florida Medicaid program spends $1.7 billion per year on dental services for approximately 3.5 million managed care enrollees. The state is also seeking bids for its full Medicaid contract which is due October 25 (Health Payer Specialist, October 9).

SPAs

  • Payment SPAs
    • Kansas (KS-23-0031, effective July 1, 2023): Updates the Brain Injury Rehabilitation Facility (BIRF) rate from $700 per day to $1,400 and makes a technical change in terminology to remove the term traumatic from the description of brain injury.
    • Mississippi (MS-23-0017, effective July 1, 2023): Updates the Medical Education payments per hospital resident per FTE rates.
    • Mississippi (MS-23-0027, effective July 1, 2023): Extends the state’s current waiver from seeking a RAC vendor approved in State Plan Amendment 22-0024 for one additional year to procure a new, competitively bid RAC contract that complies with current state and federal laws and regulations.
    • Montana (MT-23-0012, effective July 1, 2023): Updates the reimbursement methodology for psychiatric residential treatment facility (PRTF) services for state fiscal year 2024.
    • North Dakota (ND-23-0014, effective July 1, 2023): Implements a 3% increase for certain Inpatient Hospital Services.
    • North Dakota (ND-23-0021, effective July 1, 2023): Implements an inflationary rate increase of 2% and a $1.00 wage increase for Intermediate Care Facility (ICF) Services.
    • South Dakota (SD-23-0016, effective July 1, 2023): Implements inflationary increases appropriated by the state legislature and updates the Physician Administered Drug Payment Methodologies.
    • Texas (TX-23-0038, effective September 1, 2023): Modifies the definition of rural hospitals to reflect the population updates in the 2020 U.S. Census and increases the minimum payment for the labor and delivery add-on for rural hospitals.
    • Washington (WA-23-0030, effective July 1, 2023): Updates Inpatient Sole Community Hospital Supplemental Payments.
  • Eligibility SPAs
    • Maine (ME-23-0017, effective October 1, 2023): Increases the maximum income eligibility standard for children under the age of 21.
  • Services SPAs
    • North Carolina (NC-23-0014, effective July 1, 2023): Allows Medicaid reimbursement for Clinically Managed Residential Withdrawal Management services focused on clinical interventions, with an emphasis on peer and social supports.
    • North Dakota (ND-23-0011, effective July 1, 2023): Updates provider qualifications for Targeted Case Management (TCM) for individuals with Serious Mental Illness (SMI) or Serious Emotional Disturbance (SED).

News

  • New York is strengthening certificate-of-need laws to improve health equity in the state. In June, the state started enforcing a law that requires any hospital, nursing home, diagnostic treatment center, birthing center, and ambulatory surgery center that want to expand to hire third-party analysts to conduct health equity assessments. The health equity assessments will include an examination on the impacts of expansions on health disparities as part of the certificate-of-need review process (Modern Healthcare, October 11).
  • New York is finalizing its 1115 Waiver amendment proposal with CMS to establish social care networks to serve regional Medicaid-enrolled organizations, like MCOs and community-based organizations (CBOs), in the state. The social care network will be responsible for managing social needs screening, verifying members’ eligibility for health-related social needs services, and generating a social care plan for members. Each social care network will have a designated Medicaid provider to oversee fiscal administration, contracting, data collection, referral management, and CBO capacity building. According to the proposal, the state is expecting three and a half years to set up and implement the networks. In addition, New York Medicaid is overhauling its value-based payment program to focus more resources on reducing health disparities and improving quality of care (Fierce Healthcare, October 11).
  • Centene and Blue Cross Blue Shield of Arizona bid on Arizona’s $1.6 billion Long-Term Care Program contract aimed at older adults and individuals with disabilities. Current contract holders, UnitedHealthcare Community Plan, Banner University Family Care, and Mercy Care Plan have also bid on the contract. Successful bidders must offer a Medicare Advantage Dual-Special Needs Plan (D-SNP), to be operational by January 1, 2025, and receive CMS designation as a fully-integrated special needs plan (FIDE-SNP). In addition, the successful bidders must provide dental, hearing, and vision benefits along with over-the-counter drugs, fitness benefits and telehealth services. Winners will be announced on December 13 (Health Payer Specialist, October 9).
  • Several states including Hawaii, Tennessee, Kentucky, Michigan, Maryland, and New Hampshire expanded or began dental coverage for adults in 2023. Though advocates are supportive of states expanding their services, they still note that there are barriers to accessing care. Many dentists and advocates claim that Medicaid reimbursement rates are too low, reducing the number of providers willing to take Medicaid beneficiaries. Additionally, dentists explain that certification processes and billing systems are also hinderances to their participation in the Medicaid program. Despite these challenges, patients interviewed expressed their relief at receiving dental care regardless of wait time or additional out-of-pocket costs (Yahoo News, October 7).
  • UCare, the nonprofit health plan that services approximately 600,000 consumers in Minnesota and Wisconsin, has selected Navitus Health Solutions, LLC, to take over the pharmacy benefit management (PBM) services. Navitus is a member of Transparency-RX, a recently launched PBM coalition that champions having a 100% pass-through model, ban on spread pricing, national reporting and disclosure requirements, delinking provisions that require PBMs to be paid a flat transparent fee, rebate reforms, and data sharing (Inside Health Policy, October 6).
Private Sector Updates

News

  • Uber and UnitedHealth Group’s Optum have forged a partnership that adds Optum’s payment platform to the Uber app, allowing individuals to pay for rides to doctors’ appointments, prescriptions, and healthy food delivery. According to a statement released by Uber, select Medicare Advantage members will be able to make these eligible purchases with health plan benefit cards starting in 2024. Ultimately, Optum and Uber plan to grow the program to include Medicaid and commercial plans but there is no tentative date for the launch of these additional expansions (Health Payer Specialist, October 9).
  • During the COVID-19 pandemic, Congress had mandated insurers to pay providers equal rates for virtual and in-person care for Medicare enrollees, and many commercial insurers agreed to pay providers equal rates for telehealth services. However, commercial health insurers are starting to reevaluate their telehealth coverage as consumer demand for most virtual health care visits wanes and hospitals and clinician’s in-person capacity increases. CVS Health subsidiary Aetna will end commercial telehealth coverage for multiple services, including some behavioral health services, by December 1 (Modern Healthcare, October 9).
  • Brightside Health is partnering with Optum and other payers to offer telehealth-based mental health services to both Medicare and Medicaid beneficiaries, expanding access to mental health coverage for millions according to the company. The expansion addresses the limited availability of telehealth in the behavioral health space, particularly for Medicare and Medicaid beneficiaries. Though Medicaid is the largest payer of mental health services in the U.S., many beneficiaries do not receive treatment. Brightside offers personalized psychiatry, clinically proven therapy, and Crisis Care (for those at risk of suicide). The company hopes to provide care to more than one in three people in the U.S. when combined with their current commercial partnerships. Studies have supported the effectiveness of telehealth-based mental health services for low-income individuals and older adults, though patient satisfaction has been found to vary with age (Healthcare Finance, October 9).
Sellers Dorsey Updates
  • Sellers Dorsey is thrilled to attend the MHPA 2023 Annual Conference, where Senior Vice President, Gary Jessee will moderate two engaging panel discussions. The first, “Moving the Needle on SDOH Needs Among High-Risk Populations,” brings together multiple perspectives, demonstrating how stakeholders can effectively address members’ SDOH needs. The second, “A Conversation with State Medicaid Directors,” is sure to spark inspiration and innovation with leaders in Medicaid from around the country. Click here for more info.


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