Community Care of North Carolina

2011 Overview

March 15 th , 2011

Medicaid challenges

 Lowering reimbursement reduces access and increases ER usage/costs  Reducing eligibility or benefits limited by federal “maintenance of effort”; raises burden of uninsured on community and providers  The highest cost patients are also the hardest to manage (disabled, mentally ill, etc.) ─ CCNC has proven ability to address this challenge  Utilization control and clinical management only successful strategy to reining in costs overall

Community Care Provides NC with:

 Statewide medical home & care management system in place to address quality, utilization and cost  100 percent of all Medicaid savings remain in state  A private sector Medicaid management solution that improves access and quality of care  Medicaid savings that are achieved in partnership with – rather than in opposition to – doctors, hospitals and other providers.

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Key Tenets of

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Community Care

Public-private partnership “Managed not regulated” CCNC is a clinical partnership, not just a financing mechanism Community-based, physician-led medical homes Cut costs primarily by greater quality, efficiency Providers who are expected to improve care must have ownership of the improvement process

Primary Goals of Community Care

  Improve the care of Medicaid population while controlling costs A “medical home” for patients, emphasizing primary care  Community networks capable of managing recipient care  Local systems that improve management of chronic illness in both rural and urban settings

Community Care: “How it works”

 Primary care medical home available to 1.1 million individuals in all 100 counties.

 Provides 4,500 local primary care physicians with resources to better manage Medicaid population  Links local community providers (health systems, hospitals, health departments and other community providers) to primary care physicians  Every network provides local care managers (600), pharmacists (26), psychiatrists (14) and medical directors (20) to improve local health care delivery

How it works

     The state identifies priorities and provides financial support through an enhanced PMPM payment to community networks Networks pilot potential solutions and monitor implementation (physician led) Networks voluntarily share best practice solutions and best practices are spread to other networks The state provides the networks access to data Cost savings/ effectiveness are evaluated by the state and third-party consultants (Mercer, Treo Solutions).

Community Care Networks

Community Care Networks

    Are Non-profit organizations Seek to incorporate all providers, including safety net providers Have Medical Management Committee oversight  Networks and Primary Care Providers receive a per member per month payment to manage their enrolled population Hire care management staff to work with enrollees and Primary Care Providers

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Each Community Care

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Network has:

Clinical Director  A physician who is well known in the community  Works with network physicians to build compliance with care improvement objectives  Provides oversight for quality improvement in practices  Serves on the Sate Clinical Directors Committee Network Director who manages daily operations Care Managers to help coordinate services for enrollees/practices PharmD to assist with Med Mgt. of high cost patients Psychiatrist to assist in mental health integration

Current State-wide Disease and Care Management Initiatives

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Asthma

(1998 – 1 st Initiative)

Diabetes

(began in 2000)

Dental Screening and Fluoride Varnish

(piloted for the state in 2000)

Pharmacy Management

     Prescription Advantage List (PAL) - 2003 Nursing Home Poly-pharmacy (piloted for the state 2002 - 2003) Pharmacy Home (2007) E-prescribing (2008) Medication Reconciliation (July 2009)

Emergency Department Utilization Management

(began with Pediatrics 2004 / Adults 2006 )

Case Management of High Cost-High Risk

(2004 in concert with rollout of initiatives)

Congestive Heart Failure

(pilot 2005; roll-out 2007)

Chronic Care Program – including Aged, Blind and Disabled

  Pilot in 9 networks 2005 – 2007 Began statewide implementation 2008 - 2009

Behavioral Health Integration

(began fall 2010)

Palliative Care

(began fall 2010)

Chronic Care Process

Chronic Care Program Components

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Enrollment/Outreach Screening/Assessment/Care Plan Risk Stratification/ Identify Target Population Patient Centered Medical Home Transitional Support Pharmacy Home – Medication Reconciliation, Polypharmacy & PolyPrescribing Care Management Mental Health Integration Informatics Center Self Management of Chronic Disease

Community Care’s Informatics Center

Informatics Center ─ Medicaid claims data

     Utilization (ED, Hospitalizations) Providers (Primary Care, Mental Health, Specialists) Diagnoses – Medications – Labs Costs Individual and Population Level Care Alerts

Real-time data

 Hospitalizations, ED visits, provider referrals

Community Care’s Informatics Center

 Care Management Information System (CMIS)  Pharmacy Home  Quality Measurement and Feedback Chart Review System  Informatics Center Reports on prevalence, high-opportunity patients, ED use, performance indicators  Provider Portal

Provider portal in action

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http://www.youtube.com/watch?v=Ph6qGzqjrqY&f eature=player_embedded

System-wide results

  Community Care is in the top 10 percent in US in HEDIS for diabetes, asthma, heart disease compared to commercial managed care.

More than $700 million in state Medicaid savings since 2006.

  For the first three months of FY 2011, per member per month costs are running 6 percent below FY 2009 figures.  Adjusting for severity, costs are 7 % lower than expected. Costs for non-Community Care patients are higher than expected by 15 percent in 2008 and 16 percent in 2009.

For FY 2011, Medicaid expenditures are running below forecast and below prior year (over $500 million).

Quality HEDIS Measures Cholesterol Control LDL <100 Cholesterol Testing Blood Pressure Control <130/80 A1C Control <9.0

A1C Testing Cholesterol Control LDL<100 Blood Pressure Control <140/90 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CCNC 2009 CCNC 2010 National Medicaid HMO HEDIS mean

12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% 18,0% Annual Percent Change in Medicaid Expenditures: 2002 - 2010 North Carolina Georgia National Average - Kaiser Commission Study 17,0% 16,0% 14,0% 12,7% 11,5% 2002 2003 2004 2005 2006 2007 2008 2009

CCNC expands across North Carolina starting in 1998. Between 2002 and 2005 expansion increased from 17 to 93 counties. By 2007, all 100 counties were under the CCNC umbrella organization.

Georgia implements managed care CCNC Implements ABD Program

2010 8,8% 3,7% 2,5%

4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0% -10,0% -12,0%

Variance from Expected Spending

Adjusting for the severity of illness of the population, total spending for CCNC enrollees has been lower than expected each of the past 3 years.

2,5% 2007 -10,6% -3,5% -5,4% 2008 -8,7% -6,9% 2009 -5,9% -7,4% -6,6% Child Adult Total

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Community Care Advantage

Flexible structure that invests in the community (rural and urban) -- provides local jobs Fully implemented in all 100 counties All the savings are retained by the State of North Carolina Very low administrative costs Ability to manage the entire Medicaid population (even the most difficult) Proven, measurable results Team effort by NC providers that has broad support

Building on Success

Other payers and major employers are interested in benefit’s of CCNC’s approach

 Medicare 646 demo (22 counties) caring for Medicare patients  Beacon Community (3 counties), all payers  Multi-payer primary care demo (7 rural counties) Medicare, Medicaid, Blue Cross and Blue Shield of North Carolina, State Employees Health Plan  New major employer initiative (40,000 patients)

Next Steps for Community Care

 Build out Informatics Center and Provider Portal as a shared resource for all communities  Add specialists to CCNC  Develop budget and accountability model for NC Medicaid  Implement additional multi-payer projects  Work with NCHA, IHI on best practices for reducing readmissions  Facilitate Accountable Care Organizations (ACOs)