The Advance Payment Accountable Care Organization (ACO) Model —
an initiative for participants in the Medicare Shared Savings
Program — is designed for physician-based and rural providers
that have come together voluntarily to give coordinated
high-quality care to the Medicare patients they serve. Through
the Advance Payment ACO Model, selected participants will receive
upfront and monthly payments, which they can use to make
important investments in their care coordination infrastructures.
On Feb 9, the CHA Board authorized creating a multidisciplinary
statewide taskforce charged with developing policies, services,
programs and information that will help hospitals transform for
the future and guide CHA’s health care reform policy development.
“We are at a critical point in time, and an intensive effort by a
broad, high-level taskforce creates the best forum to assist
hospitals with new and innovative ideas as they transform to meet
future challenges,” said CHA Board Chair Steve Packer, MD, who
has appointed the taskforce members.
The California Health Benefit Exchange (CHBE) Board will discuss
Qualified Health Plan (QHP) contracting strategies and delivery
reform expectations at its Feb. 21 meeting in Sacramento. The
board will solicit input from stakeholders and experts through
several panel presentations that will also cover public and
private purchasing strategies. The presentations will be followed
by reactions from health care leaders, including CHA
President/CEO C. Duane Dauner.
The Centers for Medicare & Medicaid Services (CMS) will host
a national provider call on hospital value-based purchasing (VBP)
Feb. 28, 10:30 a.m.-noon (PT). The call is designed to help
providers interpret hospital-specific performance reports. CMS is
working on creating simulations of each hospital’s impact under
the fiscal year 2013 VBP program. The simulated reports will use
hospital data from prior years to construct each hospital’s
baseline period and performance period scores. A sample report
will be discussed during the call to prepare hospitals for
reviewing their own reports.
The Congressional Budget Office (CBO) has released its budget
forecast for fiscal year (FY) 2012 through FY 2022 in a report
that projects a $1.079 trillion deficit for FY 2012. Key
assumptions in the CBO projections include an increased cost of
$54 billion for the Affordable Care Act (ACA) due to 1) the
repeal of the CLASS Act (reducing $76 billion in premiums) and 2)
correction of the modified adjusted gross income formula used to
calculate Medicaid eligibility (the Medicaid
“glitch”) netting revenue increases of $22 billion.
The California Health Benefit Exchange Board has released a
revised meeting schedule for 2012. The next meeting is Feb.
21 in Sacramento. The revised schedule, attached, includes
locations throughout the state including Fresno, the Bay Area and
Los Angeles. Contact: Anne McLeod,
(916) 552-7536, amcleod@calhospital.org.
The Center for Medicare & Medicaid Innovation (CMMI) has
released One Year of Innovation – a report
summarizing the initiatives it has introduced involving
providers of Medicare and Medicaid beneficiaries in
all 50 states. Since its launch, CMMI has
focused on improving patient safety, promoting care that is
coordinated across health care settings, investing in primary
care transformation, creating new bundled payments for care
episodes, and meeting the complex needs of the dual-eligible
population.
The Patient-Centered Outcomes Research Institute (PCORI) has
released its first draft of national research priorities that
includes five research areas: 1) comparative assessments of
prevention, diagnosis and treatment options; 2) improving health
care systems; 3) communication and dissemination; 4) addressing
disparities; and 5) accelerating patient-centered and
methodological research. PCORI was created to fund research that
will offer clinicians and patients more information to support
health care decisions.
The California Health Benefit Exchange (CHBE) Board meets Jan. 26
from 10 a.m. to 2 p.m. in Sacramento to discuss the Essential
Health Benefits bulletin released last December. The agenda is
attached. In addition, CHBE will hear a report from the executive
director and review additional comments on the eligibility and
enrollment system solicitation. The next meeting of the CHBE
Board will be Feb. 21 in Sacramento.
The Center for Medicare & Medicaid Innovation is co-hosting a
Care Innovations Summit on Jan. 26 in Washington, D.C., that will
bring together representatives from health professions, the
insurance industry, patient advocacy, finance and government to
discuss ways they can collaborate to improve patient care and
health at a lower cost. Registration is closed for in-person
attendance; however, the summit will be broadcast live online
from 5:30 a.m. to 3 p.m. (PT).
The Centers for Medicare & Medicaid Services will hold a
series of Accelerated Development Learning Sessions featuring
care delivery experts within and outside government who will
discuss the Bundled Payments for Care Improvement initiative. The
web seminars will provide an opportunity for hospitals and other
providers to deepen their understanding of how to improve care
delivery and population health, while reducing costs, by
redesigning care within a bundled payment program.
The California Health Benefit Exchange (CHBE) Board met Jan. 17
in Sacramento to discuss the California Healthcare Eligibility,
Enrollment and Retention System (CalHEERS), jointly sponsored by
CHBE, the Department of Health Care Services and Managed Risk
Medical Insurance Board, with assistance from the Office of
Systems Integration.
The California HealthCare Foundation has issued the attached
report on the findings of a review conducted to better understand
current payment models and those likely to emerge in California
and the rest of the nation. Health Care Payment in
Transition: A California Perspective identifies and
discusses a number of considerations and strategies that
stakeholders, such as hospitals and other providers, should take
into account as they plan to transition to new payment models in
the future.
The California HealthCare Foundation has updated its annual
publication that offers a picture of those who lack health
insurance coverage, providing data on their income, age,
ethnicity, eligibility for public insurance and work status. The
California Health Care Almanac, attached, asserts that
while the ranks of the uninsured may grow in the short term if
more individuals lose their employer-based coverage, changes
under the Affordable Care Act scheduled to take effect in 2014
would allow more Californians to gain coverage.
The California Health Benefit Exchange (CHBE) Board will hold an
additional meeting Jan. 26 focusing on the recently released
federal bulletin regarding essential health benefits. The time
and location of the meeting will be posted at www.hbex.ca.gov by Jan. 13. At the
Jan. 17 meeting, agenda attached, the board will receive an
update on the recent information system solicitation and hear a
presentation about potential enrollment in CHBE.
The Centers for Medicare & Medicaid Services (CMS) has
approved the final component of the six-month hospital fee, which
includes payments to Medi-Cal managed care health plans using
hospital fee funds and intergovernmental transfers from public
hospitals. The six-month fee program covers the period from
January 1, 2011, through June 30, 2011.
Funds from intergovernmental transfers and hospital fee dollars
will be used to draw down federal matching funds to increase
capitation payments to health plans.
The California Health Benefit Exchange (CHBE) Board met Dec. 20
to review and discuss a number of issues, including a report on
small business owner behavior and decision making in offering and
purchasing health insurance benefits for employees. The report
was presented by Pacific Community Ventures (PCV), which
conducted research with funding from the California
Endowment. PCV reported that although small business owners in
the state are not very aware of CHBE, they are likely
to participate in the exchange once they learn more about it.
The U.S. Department of Health and Human Services (HHS) issued a
15-page document last week that provides guidance on the
essential health benefits that must be included in the scope of
coverage that insurance plans must meet in 2014 to sell in
state-based health insurance exchanges. The guidance provides
states with a choice of benchmark plans instead of dictating a
single approach. The HHS guidance puts choice and flexibility in
the hands of the states as they work to build their insurance
exchanges.
The Internal Revenue Service (IRS) released new drafts of 2011
Schedule H, Hospitals, and 2011 Instructions for Schedule H (Form
990). Despite numerous comments from hospitals, the IRS did
not incorporate many recommended changes. The draft schedule
and instructions are substantially similar to versions
released earlier this year but made optional for 2010 tax years.
The state’s Pre-Existing Condition Insurance Plan (PCIP) has
received an additional $118 million in federal funding to expand
coverage and keep up with the costs of claims. Without the
added funds, PCIP would have been capped at 6,800 enrollees
through December 2013. The new funding will help provide
coverage to individuals with pre-existing conditions until 2014
when the Affordable Care Act mandates that private insurers
accept all applicants regardless of pre-existing
conditions. To qualify for PCIP coverage, individuals must
be U.S.