Issue #165

Key Updates:

Three incumbents, Centene’s NH Healthy Families, AmeriHealth Caritas New Hampshire, and WellSense, formerly Boston Medical Center HealthNet Plan, were awarded New Hampshire’s $2.4 billion Medicaid contract (Health Payer Specialist, December 11).

On December 11, the Lower Costs, More Transparency Act passed on the House floor. The bill advances policies to force pharmacy benefit managers and hospitals to meet price transparency standards and publicly list prices before charging patients. Additionally, the bill includes a site-neutral payment provision for drugs under Medicare Part B and a requirement that hospitals publish charges through machine-readable files (Fierce Healthcare, December 11).

Almost 7.3 million people have enrolled in an Affordable Care Act plan via healthcare.gov or a state-based exchange since November 1. Of this total, 1.6 million are new consumers. Total plan selections increased by 39% since last year. Healthcare.gov saw a 42% rise while state-based exchanges went up by 17% (Inside Health Policy, December 7).

From December 6 through December 13, CMS approved 27 SPAs.

Federal Updates

Featured Content

House Advances Legislation on Payment Transparency

  • On December 11, the Lower Costs, More Transparency Act passed on the House floor. The bill advances policies to force pharmacy benefit managers and hospitals to meet price transparency standards and publicly list prices before charging patients. Additionally, the bill includes a site-neutral payment provision for drugs under Medicare Part B and a requirement that hospitals publish charges through machine-readable files. The bill also requires the elimination of $16 billion in disproportionate share hospital program cuts through 2025, $7 billion in funds for the Medicaid Improvement Funds, and $15 billion towards community health centers and programs addressing physician shortages in underserved communities (Fierce Healthcare, December 11).

Exchange Enrollment is Up

  • Almost 7.3 million people have enrolled in an Affordable Care Act (ACA) plan via healthcare.gov or a state-based exchange since November 1. Of this total, 1.6 million are new consumers. Total plan selections increased by 39% since last year. Healthcare.gov saw a 42% rise while state-based exchanges went up by 17%. Florida led the healthcare.gov states with over 1.8 million enrollees, followed by Texas, Georgia, North Carolina, and South Carolina. Health Sherpa, a certified enhanced direct enrollment vender, reported approximately 4.1 million consumers have selected a plan through their platform, 98% of whom were eligible for subsidies. Around 3.4 million consumers are set for auto-reenrollment in state-run exchanges, although these figures may change before January 1. Final data is expected after the December 15 enrollment deadline (Inside Health Policy, December 7).

News

  • On December 12, the Center for Medicaid and CHIP Services (CMCS) released an Informational Bulletin (IB) to remind states and other stakeholders that the use of worker management platforms, commonly referred to as registries, is a key strategy for ensuring that Medicaid beneficiaries utilizing home- and community-based services (HCBS) have access to qualified workers. These HCBS worker registries can serve as an important connection between individuals who need HCBS and those providing them. CMCS took this opportunity to remind states that only workers who have attained the state’s minimum educational and/or training requirements should be included on the registry. States are also required to specify reasons they exclude certain HCBS workers from being listed on the registry, such as state laws that prohibit individuals with certain criminal histories from being included. States are expected to educate HCBS workers about the mandatory or voluntary nature of participation on the registry and the types of information the state requires for internal and external use. CMCS also provides a list of promising practices that states may use when considering the development of a registry. The list will be updated, as necessary. Registries look different depending on the state, but implementation of such registries is expected to support the following functions and promising practices:

1.Helping beneficiaries identify and employ qualified workers who meet their needs.

a. Maintaining an electronic system to help beneficiaries identify and match with appropriate workers.

b. Assisting beneficiaries and their families in navigating the HCBS system, including specific support on self-direction.

c. Integrating financial management service (FMS) functions, such as processing payments to workers and making tax withholdings and other deductions for standard employment benefits on behalf of the beneficiary. In some states, however, these functions are currently performed by independent FMS entities.

2. Facilitating recruitment and retention of workers in the Medicaid program to ensure an adequate supply of workers.

a. Helping workers become HCBS Medicaid providers as well as stay enrolled as a provider.

b. Actively recruiting new workers.

c. Connecting workers to training benefits and opportunities for professional development.

d. Facilitating access to health coverage and other benefits, in addition to training.

e. Ensuring there is a system for communication with and support for workers, particularly in the case of health or other emergencies.

3. Supporting state oversight activities related to program integrity, monitoring access to and quality of care for beneficiaries who receive services and maintaining a system for communication with workers.

a. Providing background checks.

b. Verifying worker qualifications and identifying special skills.

c. Creating a system for communication with workers and beneficiaries in self-directed programs to facilitate communication with HCBS providers in public health and other emergencies and to provide program updates and access to other supports.

There are additional registry functions that would generate useful data for monitoring HCBS quality and access.

CMCS highlighted the availability of enhanced federal match (FMAP) for worker registry development and maintenance along with the ARP funding opportunity. In order to receive approval for the enhanced FMAP, states can submit an Advanced Planning Document (APD) requesting the 90/10 percent enhanced match for the design, development, and implementation of Medicaid Enterprise Systems (MES) initiatives that contribute to the economic and efficient operation of the Medicaid and CHIP programs, including HCBS worker registries. States are also permitted to request a 75/25 percent enhanced FMAP for ongoing operations of CMS-approved systems. Additionally, Section 9817 of the ARP provided states with a temporary 10 percentage point increase to the FMAP for certain Medicaid expenditures for HCBS, from April 1, 2021 through March 31, 2022. CMS expects states to expend such funds by March 31, 2025. States interested in using the state equivalent funds for the development and maintenance of worker registries should reach out to their CMCS contacts or HCBSIncreasedFMAP@cms.hhs.gov

CMS also released the Overview of State Spending under American Rescue Plan Act of 2021 (ARP) Section 9817, and highlights the following items:

1. Across all 50 states and the District of Columbia (D.C.), an additional $4,933 will be spent on activities that enhance, expand, or strengthen HCBS.

2. Across all 50 states and D.C., more than 1,200 activities have been proposed, including workforce recruitment and retainment, workforce training, quality improvement, reducing or eliminating HCBS waiting lists, and expanding use of technology.

3. According to the states’ and D.C.’s submissions to CMS, there is a total of $36.8 billion in planned spending.

a. States and D.C. have reported $1.3 billion in total planned spending on family caregiver training, respite, and support.

b. 43 states have proposed activities addressing social determinants of health or promoting equity.

i. $2.02 billion for housing-related services and supports (24 states).

ii. $393 million to add or expand culturally and linguistically competent services and staff (13 states).

iii. $257 million for community integration and social supports (15 states).

iv. $254 million for non-medical transportation.

v. $250 million for employment.

All 50 states and D.C. are proposing activities to support workforce recruitment and retainment (Medicaid.gov, December 12; Medicaid.gov, December 12; GovDelivery, December 12).

  • On December 6, the National Institutes of Health (NIH) issued a statement that the Biden administration will expand its Home Test to Treat pilot program that launched earlier this year into a nationwide program that will continue to cover COVID-19 telehealth sessions and at-home treatments and will add coverage for flu testing and treatment. Any adult with a positive COVID-19 or flu test will receive telehealth care at no cost and if medically necessary and prescribed, will have medication delivered directly to their home. Adult individuals who do not have COVID-19 or the flu can enroll and receive free testing if uninsured or receiving services under Medicare, Medicaid, the Veterans Affairs health system, or Indian Health Services. The NIH stated that “providing these services virtually is intended to expedite the time to treatment and the convenience of accessing services from home.” The LUCIRA by Pfizer COVID-19 and Flu Home Test, the first FDA-authorized test that can detect both viruses in a single test, will be utilized in the Home Test to Treat program (Inside Health Policy, December 6).

Federal Regulation

  • According to the newly released Fall 2023 Unified agenda, the Biden administration expects to finalize a draft rule that limits the duration of short-term health plans in April 2024. The draft rule was announced in July and reverses a Trump administration rule from 2018 that provided for short-term plans to run for up to three years if allowed by states. Short-term plans are not required to adhere to the ACA consumer protections, such as spending limits or coverage mandates. The draft rule proposes to define a short-term, limited duration (STLDI) plan as one that runs for no longer than three months, allows for a one-month renewal, prohibits stacking policies by a single insurer or broker, and increases the required consumer notification requirement. The new STLDI plan limits would go into effect 75 days after the rule is finalized while existing STLDI plan policies would be allowed to run out under the Trump-era regulations (Inside Health Policy, December 8).

Federal Legislation

  • On December 7, bipartisan lawmakers unveiled a bill that would let Medicaid pay for behavioral health treatment in criminal justice settings. This would reform the Medicaid Inmate Exclusion policy to allow for Medicaid coverage and payment for mental health and substance use services for eligible inmates in order to lower the risk of overdose and prepare recipients for community re-entry. Additionally, it would require states to reinvest any additional funds into technology and data sharing amongst the state Medicaid program, jails and prisons, and community-based providers and organizations (Inside Health Policy, December 7).
  • On December 6, a new bipartisan piece of legislation, The Protecting Rural Seniors’ Access to Care Act, was introduced in the Senate to potentially block CMS from implementing its proposed nursing home staffing minimums. Lawmakers cite staffing shortages and high costs as reasons the proposed rule would be detrimental to nursing facilities. In November, a letter from a group of House Democrats pushed CMS to have stronger minimum nursing standards for facilities. This was then quickly followed by a House GOP proposal attempting to block the CMS proposed staffing minimums. The legislation introduced on the 6th would establish an advisory panel on nursing home staffing that includes experts from both urban and rural communities. The panel would then submit a report to Congress making recommendations to bolster the workforce. The legislation is currently endorsed by over 90 organizations, including LeadingAge (Inside Health Policy, December 8).
State Updates

New Hampshire Announces Medicaid Managed Care Contract Awards

  • Three incumbents, Centene’s NH Healthy Families, AmeriHealth Caritas New Hampshire, and WellSense, formerly Boston Medical Center HealthNet Plan, were awarded New Hampshire’s $2.4 billion Medicaid contract. According to the New Hampshire Department of Health and Human Services (DHHS) scoresheet released last week, the payers scored totals of 1,533, 1,469, and 1,292 points, respectively. The state did not receive any additional bids outside of the three incumbents. Contract winners will be required to “promote optimal health and equitable access to services by better integrating physical and behavioral health through a holistic role of providers in the delivery of care” and focus on social determinants of health and promote care for priority populations, such as infants with neonatal abstinence syndrome (Health Payer Specialist, December 11).

SPAs

  • Eligibility SPAs
    • Nebraska (NE-24-0003, effective January 1, 2024): Provides for 12 months of extended postpartum coverage to individuals who were eligible and enrolled under the Medicaid state plan during their pregnancies (including during a period of retroactive eligibility).
    • Ohio (OH-23-0028, effective July 1, 2023): Authorizes new income standards for its optional state supplement program.
  • Payment SPAs
    • Colorado (CO-23-0031, effective November 11, 2023): Revises the reimbursement rates for visits/encounters and pharmacy services provided by Indian Health Facilities. .
    • Connecticut (CT-23-0016, effective July 1, 2023): Updates ICF/IID rates with FY2022 cost report data plus a two percent adjustment factor and includes a private ICF/IID 2.55% COLA. The minimum per diem, per bed rate for each private ICF/IID remains at $501.
    • Iowa (IA-23-0013, effective July 1, 2023): Updates nursing facility rates using a new cost report period and inflation factor.
    • Iowa (IA-23-0017, effective July 1, 2023): Adjusts the fee schedule rates for Home Health services.
    • Iowa (IA-23-0025, effective July 1, 2023): Updates rates for non-state owned Psychiatric Medical Institutions for Children (PMIC).
    • Kansas (KS-23-0037, effective October 1, 2023): Revises the ICF/IID Levels of Care structure and administration per diem rates.
    • Louisiana (LA-23-0024, effective October 1, 2023): Increases the professional dispensing fee from $10.99 to $11.81 per prescription.
    • Louisiana (LA-23-0025, effective October 1, 2023): Amends the provisions governing the Pharmacy Benefits Management Program in order to change the reimbursement methodology for clotting factor products to a state generated actual acquisition cost (AAC) ingredient cost and a unit based professional dispensing fee.
    • Louisiana (LA-23-0037, effective August 1, 2023): Increases the reimbursement rate for services provided by certified nurse midwives and licensed midwives.
    • Massachusetts (MA-23-0054, effective July 21, 2023): Updates the methods and standards used to set the payment rates for Acute Outpatient Hospital Services.
    • Missouri (MO-23-0024, effective July 15, 2023): Increases the rates for private psychiatric residential treatment facility (PRTF) services.
    • New Hampshire (NH-23-0010, effective July 1, 2023): Revises the quarterly nursing home supplemental payment (MQIP) for dates of services in the quarter ending September 30, 2023.
    • New York (NY-22-0056, effective April 1, 2022): Removes the 1.5% nursing home and specialty care facility reimbursement reduction that was implemented in 2020.
    • North Carolina (NC-23-0026, effective July 1, 2023): Modifies the final Skilled Nursing Facility rate by including a uniform add-on per diem amount of $37.74.
    • Ohio (OH-23-0027, effective October 1, 2023): Provides a one-time provider payment to Freestanding Dialysis Centers.
    • Ohio (OH-23-0030, effective September 28, 2023): Updates the Institutions for Mental Disease Disproportionate Share Hospital Payment.
    • Washington (WA-23-0029, effective January 1, 2024): Updates the coverage and payment for inpatient hospital service administrative days .
    • Washington (WA-23-0033, effective July 1, 2023): Updates the rates for outpatient Sole Community Hospitals.
  • Services SPAs
    • Arkansas (AR-23-0017, effective October 1, 2023): Adds medication-assisted treatment (MAT) as a mandatory benefit.
    • Arkansas (AR-23-0019, effective October 1, 2023): Provides for coverage and reimbursement of adult immunizations and administration without cost sharing, when required according to the recommendations of the Advisory Committee on Immunization Practices (ACIP).
    • District of Columbia (DC-23-0010, effective October 1, 2023): Expands the scope of covered transplant procedures to include small bowel and pancreas transplant procedures.
    • Indiana (IN-23-0014, effective July 14, 2023): Provides coverage for community-based palliative care services under the home health benefit.
    • Kansas (KS-23-0034, effective October 1, 2023): Adds Diabetes Self-Management Training (DSMT) benefits as a preventive outpatient service for persons diagnosed with diabetes.
    • Minnesota (MN-23-0018, effective January 1, 2024): Revises coverage of and payment rates for abortion, family planning, and doula services.
    • North Dakota (ND-23-0035, effective January 1, 2024): Ends the Primary Care Case Management Program.

News

  • New Mexico effectively implemented a $409 million increase in reimbursement rates for Medicaid providers, with an average provider rate increase of 4.68%. The increase in reimbursement rates is part of the state’s effort to attract and retain healthcare providers and ensure high-quality care for patients. While some reimbursement rates for services experienced a moderate increase of 1% to 2%, increases to 120% of Medicare were seen in three areas, primary care, maternal and child health, and behavioral health (Albuquerque Journal, December 11).
  • On December 5, Florida introduced a new online platform intended to improve access to government benefit programs including temporary assistance to needy families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Medicaid. The system, MyAccess, is administered by the Florida Department of Children and Families and is designed to improve access for those who rely on mobile phones to obtain their benefits. With the update, residents can complete their applications and send required documents such as pay stubs through their phones. However, residents have commented on the Department’s Facebook page expressing their frustrations with the new system, stating that they were not able to sign in or faced long wait times in getting assistance through the call center (Tampa Bay Times, December 8).
  • Pennsylvania is seeking federal approval for a pilot program under Section 1115 of the Social Security Act to address health-related social needs through the Medicaid program. If approved, the state will have greater flexibility to address issues such as mental health, substance abuse, housing, nutrition, and continuous care for young children. Pennsylvania is proposing to title the new waiver, Bridges to Success: Keystones of Health for Pennsylvania. The state proposal focuses on issues such as inmate re-entry, housing supports, food and nutrition supports. However, specifics of the program are still being worked out and the final design will be coordinated with CMS. The proposed waiver is subject to public comment through January 2, 2024 (Times Observer, December 12).
  • Nemours Children’s Health intends to launch a pediatric hospital at-home program in 2024 within a 40-mile radius of the health system’s two hospitals in Wilmington, Delaware, and Orlando, Florida. The care will include remote patient monitoring, telehealth and in-person visits to children with urgent, short-term illnesses. If successful, Nemours would be the first children’s hospital to launch a hospital-at-home program. However, the success is contingent on getting state legislatures to approve the model. Most state Medicaid programs do not pay for beneficiaries to receive hospital-level care while at home and advocates of the model say wider Medicaid coverage for these services is essential for the model to expand (Modern Healthcare, December 12).
Private Sector Updates

News

  • On December 10, The Wall Street Journal reported that Cigna and Humana called off their potential stock-and-cash deal valued at an estimated $140 billion, stating that the two companies were unable to agree on price and other financial terms. Cigna and Humana never confirmed that they were discussing a potential merger, but Cigna released a statement on Sunday saying that the company plans to buy back $10 billion worth of stock, in addition to a previously authorized $1.3 billion stock buy back. Humana declined to comment and Cigna did not answer any questions about merger talks (Modern Healthcare, December 10; Health Payer Specialist, December 11).
  • On December 6, Oregon’s Medicaid Advisory Committee issued a memo advising the Oregon Health Authority to disapprove of the merger between SCAN Group and CareOregon unless more information about the deal is obtained. In late 2022, SCAN Group and CareOregon announced plans to merge under a firm named HealthRight Group by the end of 2023. The new organization would be worth $6.8 billion in revenue with nearly 800,000 members in Medicare Advantage and Medicaid plans. The Medicaid Advisory Committee stated it had serious concerns over the impact to the coordinated care organization system, access to care, and the state’s control of Medicaid spending. Oregon has a rigorous Health Care Market Oversight program that requires comprehensive reviews of mergers and acquisitions (Health Payer Specialist, December 11).
Sellers Dorsey Updates
  • With ample evidence of how transportation issues impact health, Medicaid is becoming a solution for more states looking to cover transportation for non-emergency medical needs. Companies like MTM, Inc., a non-emergency medical transportation company that partners with health plans to provide rides for members, ensure individuals can attend treatment for opioid abuse, among other needs. In this engaging Q&A, MTM shares their insights on the intersection of transportation and health and how Medicaid can help. Click here to read the full Q&A!

 


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