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HomeMy WebLinkAboutSS3 - Medi-Cal Managed Care Rate Transfer Program - Handoutw June 14, 2016 .n, . Agenda Item No. 883 ourr Program Overview Medi-Cal Managed Care Rate Range Intergovernmental Transfer (IGT) City Council Study Session Tuesday, June 14, zoi6 l FIRT Scott Poster, Fire Chief Angela Crespi, Administrative Manager Terms /Definitions • Medi -Cal - The Medicaid -program administered by the state of California Department of Healthcare Services (DHCS) to provide health coverage for low income and disabled individuals. Managed Care - A system for delivery of Medi -Cal services where patients are members of a Health Maintenance Organization (HMO) of contracted providers. Rate Range - An actuarially based range of rates that the state will pay a health plan to ensure adequate reimbursement based on the cost of health care expenditures and the populations served. (State pays low/IGT increases to high). SS3-1 SS3-2 Intergovernmental Transfer (IGT) -A vehicle for two units of government to exchange or transfer public funds. This method is used by 34 states to draw down federal funds and maximize state dollars. Headroom- The difference between maximum allowable federal Medicaid funding level and the actual amount drawn down by the state. SS3-3 • Federal: Center for Medicare and Medicaid Services (CMS) • State: Department of Healthcare Services (DHCS) • County Organized Health System (CORS): CalOptima • Local Funding Entity: City of Newport Beach SS3-4 Program Purpose/ Benefits Enables the states to utilize local dollars as matching funds to draw down the remaining headroom in a service year. Allows California's Medi -Cal managed care plans to partner with local units of government to access additional federal Medicaid dollars to support uncompensated care and the provision of health care services. Provides an opportunity for local service providers to recover a portion of their previously unreimbursed costs. Program History 2oo6: California DHCS began offering local governments that provide health care the opportunity to secure additional Medi - Cal revenues by participating in a voluntary (IGT) program with their local Medi -Cal managed care plan. 2010: Orange County's CalOptima began partnering with UC Irvine Medical Center in the IGT program to draw down over $6o million in additional Federal funds. 2oi6: CalOptima opens IGT partnerships to other local entities providing Medi -Cal services to plan beneficiaries. 553-5 ss3-5 Our Eligibility • Unit of Local Government; • General Taxing Authority; • Provide Medi -Cal covered emergency ambulance services (911 response, care and treatment, transport) to CalOptima Plan beneficiaries; • Have documented uncompensated costs for providing Medi -Cal services; and • Ability to provide local matching funds. SS3-7 Medi -Cal Payment = Payment in Full In FY2o14-15 • Medi -Cal represented 18% of total emergency ambulance transport patients • Of those Medi -Cal patients, 11% were Managed Care a% were Fee For Service. • Medi -Cal Managed Care is on the Rise 1 • Average Cost/Transport $1,447 • Average Payment/Transport $1Zg.o8 (g%) 553-8 Medi -Cal Services to CalOptima Patients FYao14-15 390 Ambulance Transports =Total Service Costs $564,330 Program Steps and Cycle City of Newport Beach (Local Funds) Transfer of Local Funds & 20% State Administrative Fee CalOptima Returns Original Funds + 50% of Leveraged Funds O State DHCS State Draws Down Federal Match Federal Government ■ Payments Received Unreimbursed SS}9 CalOptima CalOptima Receives Increased Capitation Payment SS3.,o City of Newport Beach State DHCS (Local Funds) Administrative Fee to DHCS 20% of IGT Transfer $51,417 SS3-7' Step 2 State Draws Down Federal Match State DHCS Federal Government ffaLLUQLQLLgggLf Unds by D HGS X257..087 State DHCS Match 50% of 3.9375% MMCS Tax $10,538 t 1 Sf" t ii Fie" eral r. $257,525 SS3-72 Step 3 State Draws Down Federal Match State DHCS Federal Government 4. ds to State DHCS 50% of Unreimbursed Costs $257,Q871 Federal Match $257,087 Step 4 CalOptima Receives Increased Capitation Payment DHCS Retains Initial Administrative Fee Only 20% of IGT Transfer SS3-a3 $ 51,417 SS3-t4 SteP 5 CalOptima Returns Original Funds + 50% of Leveraged Funds City of CalOptima Newport Beach (Local Funds) CalOptima Retains MMCS Tax 'Return of Initial Funds to City CalOptima Retains 50% of Net IGT Transaction Revenue =Net Revenue to City Total CalOptima to City 3.9375% of Increased Capitation $21,075 IGT Funds + 200/� Adi-nmistrative Fee X303 50% of Net IGT Transaction Revenue $102,835 50% of Net IGT Transaction Reven.ue $1102,835 1 $411,339 SSS -15 'HGT'T'ransfer to OHCS 50% of lUnreirnbursed Costs $257 CalOptima Pays MMCS Tax IGT Funds Available After Tax CalOptima Retains 50% of Net IGT Transaction Revenue Payment to City of Newport ,Beach 3.9375% of Increased Capitation ($21,076) $514,11 $102,835 Original Transfer + 501/b of IG -1 4 Revenue 1, 3j, SSS -16 -- -- ol Use of IGT Funds • IGT funds must be used in the provision of healthcare services. • The definition of health care services is broad and the services can be provided to the general population; they do not need to be Medi -Cal services provided exclusively to Medi -Cal patients. • Funds may be comingled with other funds for cash management, but must be appropriately tracked. • Funds do not have to be expended in the year received. SS3-77 • All counties in California participate in Rate Range IGT transactions through their Medi -Cal health plan • Successful Local Government Participants: County of Marin; City of Fresno; City of Sacramento; City of San Rafel; City of Rialto; and Novato Fire Protection District. • Other Orange County Participants: Orange County Healthcare .Agency; City of Orange; Children and Families Commission of Orange County; and UCI Medical Center. SSS -78 • June a6, ao16 - Signed Agreements Due September2o16 - IGT Funds Transfer Request (1 Week Notice) • October Zo16 - CalOptima Receives Increased Capitation Payment • November ao16 - City Receives IGT Funds SS3-79 Questions? Medi -Cal Managed Care Rate Range Intergovernmental Transfer (IGT) SSS -20