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Featured this week:
- L.A. Care Invests $150,000 to Introduce an Advanced Illness Care
Program in South Los Angeles
- Health Plan Shake-Up Could Disrupt Coverage for Low-Income
Californians |
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L.A. Care Invests $150,000 to
Introduce an Advanced Illness Care Program in South Los Angeles
L.A. Care Health Plan has announced a $150,000 grant to the
Public Health Institute to
support the creation of the Los Angeles Regional AC Care Alliance
Hub, to support more than 200 individuals with advanced illness and
their caregivers. The Alliance is going to replicate a program in
Alameda County, which brings together faith-based organizations,
community-based organizations, and health care entities to provide
wraparound support services designed to address the disproportionate
burden faced by medically under-resourced, low-income people of
color.
An evaluation of the program in Alameda County found it yielded
positive results in several areas, including improved engagement
with healthcare providers, linkage to social supports, and access to
respite care/support for caregivers. A feasibility study found the
program could be replicated in Los Angeles County.
The funding from L.A. Care will leverage funding from the Archstone
Foundation and the California Health Care Foundation to establish
the Los Angeles AC Care Alliance Hub, which will serve the
communities of South Los Angeles, Compton, Inglewood, and Watts.
Under the program, Care Navigators will be recruited and trained to
develop individual care plans to meet the needs of enrolled members
related to their healthcare, spirituality, advanced care directives,
social service needs and caregiving.
This grant is in alignment with L.A. Care’s commitment to advancing
health equity, which means everyone has a fair and just opportunity
to be as healthy as possible.
Visit lacare.org.
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Health Plan Shake-Up Could Disrupt
Coverage for Low-Income Californians
By Bernard J. Wolfson
Almost 2 million of California’s poorest and most medically
fragile residents may have to switch health insurers as a result of a
new strategy by the state to improve care in its Medicaid program.
A first-ever statewide contracting competition to participate in the
program, known as Medi-Cal, required commercial managed-care plans to
rebid for their contracts and compete against others hoping to take
those contracts away. The contracts will be revamped to require insurers
to offer new benefits and meet stiffer benchmarks for care.
The long-planned reshuffle of insurers is likely to come with short-term
pain. Four of the managed-care insurers, including Health Net and Blue
Shield of California, stand to
lose Medi-Cal contracts in a little over a year, according to the
preliminary results of the bidding, announced in late August. If the
results stand, some enrollees in rural Alpine and El Dorado counties, as
well as in populous Los Angeles, San Diego, Sacramento, and Kern
counties, will have to change health plans — and possibly doctors.
“I’m still shocked and I’m still reeling from it,” said John Sturm,
one of about 325,000 members of Community Health Group, the largest
Medi-Cal plan in San Diego County, which could lose its contract. “Which
doctors can I keep? How long is it going to take me to switch plans? Are
there contingency plans when, inevitably, folks slip through the
cracks?” Sturm wondered.
Sturm, 54, who has three mental health conditions, largely because of
childhood sexual abuse, said finding a psychologist and psychiatrist he
could trust took a lot of time and effort. He pointed to
the disruption caused by the rollout of Medi-Cal’s new prescription
drug program this year, despite assurances it would go smoothly.
“I have concerns, and I know other people in the community have concerns
about what we’re being told versus what the reality is going to be,”
Sturm said.
Arguably, the biggest loser in the bidding is Health Net, the largest
commercial insurer in Medi-Cal, which stands to lose half its enrollees
— including more than 1 million in Los Angeles County alone. St.
Louis-based Centene Corp., which
California is investigating over allegations it overcharged the
state for prescription drugs,
bought Health Net in 2016, in part for its Medicaid business, of
which L.A. is the crown jewel.
But the state’s health plan selections are not set in stone. The losing
insurers are fiercely contesting the results in formal appeals that read
like declarations of war on their competitors and on the state. Some of
the losers essentially call their winning rivals liars.
The stakes are high, with contracts in play worth billions of dollars
annually. Insurers that lose their appeals with the state Department of
Health Care Services, which runs Medi-Cal, are likely to take their
complaints to court. That could delay final decisions by months or
years, causing a headache for the department, which wants coverage under
the new contracts to start Jan. 1, 2024.
State officials hope to spend the rest of this year and all of 2023
ensuring the chosen health plans are up to the task, which includes
having enough participating providers to minimize disruptions in care.
“Member access and continuity are really our top priorities as part of
this transition, and we have dedicated teams that will be working with
the health plans on the transition planning and the continuity
planning,” Michelle Baass, director of the department, told KHN.
Baass also noted that enrollees have continuity of care rights. “For
example, if a member is currently under the care of a doctor during the
prior 12 months, the member has the right to continue seeing that doctor
for up to 12 months, if certain conditions are met,” she said.
The competitive bidding process is an effort by the department to
address persistent complaints that it has
not effectively monitored subpar health plans.
Eight commercial insurers bid for Medi-Cal business in 21 counties. They
were required to submit voluminous documents detailing every aspect of
their operations, including past performance, the scope of their
provider networks, and their capacity to meet the terms of the new,
stricter contracts.
The new contracts contain numerous provisions intended to bolster
quality, health care equity, and transparency — and to boost
accountability of the subcontractors to whom health plans often
outsource patient care. For example, the plans and their
subcontractors will be required to reach or exceed
the
50th percentile among Medicaid plans nationally on a host of
pediatric and maternal care measures — or face financial penalties.
They will also be on the hook for providing non-medical social services
that address socioeconomic factors, such as homelessness and food
insecurity, in an ambitious $8.7 billion,
five-year Medi-Cal initiative known as CalAIM, that is already
underway.
Local, publicly governed Medi-Cal plans, which cover about 70% of the
12.4 million Medi-Cal members who are in managed care, did not
participate in the bidding, though their performance has not always been
top-notch. Kaiser Permanente, which this year negotiated a controversial
deal with the state for an
exclusive Medi-Cal contract in 32 counties, was also exempt from the
bidding. (KHN is not affiliated with Kaiser Permanente.)
But all Medi-Cal health insurers, including KP and the local plans, will
have to commit to the same goals and requirements.
In addition to Health Net, Blue Shield of California and Community
Health Group — which have contracts with Medi-Cal only in San Diego
County — are also big losers, as is Aetna, which lost bids in 10
counties.
Blue Shield, which lost in all 13 counties where it submitted bids,
filed a fiercely worded appeal that accuses its rivals Anthem Blue
Cross, Molina, and Health Net of failing to disclose hundreds of
millions of dollars in penalties against them. It accused those three
plans of poor performance “and even mendacity” and said they filled
their bids with “puffery,” which the state “bought, hook, line and
sinker,” without “an iota of independent analysis.”
Health Net’s appeal slammed Molina, which beat it out in L.A.,
Sacramento, Riverside, and San Bernardino counties. Molina’s bid, Health
Net said, “contains false, inaccurate and misleading information.” The
whole bidding process, it said, was “highly flawed,” resulting in
“erroneous contract awards that jeopardize the stability of Medi-Cal.”
In particular, Health Net said, the Department of Health Care Services
“improperly reopened the procurement” after the deadline, which allowed
Molina to make “comprehensive changes” that raised its score.
The protesting health plans are requesting that they be awarded
contracts or that the bidding process start over from scratch.
Joseph Garcia, chief operating officer for Community Health Group, said,
“It would be easiest for all concerned if they just added us. They don’t
have to remove anybody.”
Community Health Group has garnered an outpouring of support from
hospital executives, physician groups, community clinics, and the heads
of multiple publicly governed Medi-Cal plans
who sent a letter to Baass saying they were “shocked, concerned, and
very disappointed” by the state’s decision. They called Community Health
Group “our strongest partner of 40 years,” for whom “equity is not a
buzzword or a new priority,” noting that more than 85% of its staff is
bilingual and multicultural.
Community Health Group noted in its appeal that it had lost by less than
a point to Health Net, which won a San Diego contract — “a miniscule
difference that in itself resulted from deeply flawed scoring.”
Garcia said that if Community Health Group loses its appeal, it will
“absolutely” sue in state court. A hearing officer appointed by Baass to
consider the appeals has set deadlines to receive written responses and
rebuttals by Oct. 7.
There is ample precedent for protracted legal battles in bidding for
Medicaid contracts. In Louisiana, Centene and Aetna
protested the results of a 2019 rebidding process, which led the
state to nullify its awards and restart the bidding. The
new results were
announced this year, with Centene and Aetna among the winners. In
Kentucky, the state court of appeals
issued a ruling this month in a contested Medicaid procurement that
had been held two years earlier.
Another factor could delay the new contract: California is juggling
several massive Medi-Cal changes at the same time. Among them are the
implementation of CalAIM and the anticipated enrollment of
nearly 700,000
unauthorized immigrants ages 26-49 by January 2024, on top of nearly a
quarter-million unauthorized immigrants 50 and older who
became eligible this year. And then there’s the recalculation of
enrollees’ eligibility, which will take place whenever the federal
covid-19-related public health emergency ends. That could push
2 million to 3 million Californians out of Medi-Cal.
“Just hearing you list all those things gave me a minor panic attack,”
said Abigail Coursolle, a senior attorney at the National Health Law
Program. “They are making a lot of work for themselves in a short amount
of time.”
But, Coursolle added, the state has “a very positive vision for
improving access and improving the quality of services that people in
Medi-Cal receive, and that’s very important.”
This story was produced by Kaiser Health News, which publishes
California Healthline, an
editorially independent service of the California Health Care
Foundation.
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