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Medicare Advantage Permitted to Address Non-medical Needs

Starting in 2020, Medicare Advantage plans will be permitted to provide non-medical benefits to their chronically ill members.

As described in the Centers for Medicare & Medicaid Services’ “final call letter’ for 2020,

MA [Medicare Advantage] plans are not prohibited from offering an item or service that can be expected to improve or maintain the health or overall function of an enrollee only while the enrollee is using it.  In other words, the statute does not require that the maintenance or improvement expected from an SSBCI [special supplemental benefits for the chronically ill] result in a permanent change in an enrollee’s condition.  Items and services may include, but are not limited to:  meals furnished to the enrollee beyond a limited basis, transportation for non-medical needs, pest control, air quality equipment and services, and benefits to address social needs, so long as such items and services have a reasonable expectation of improving or maintaining the health or overall function of an individual as it relates to their chronic condition or illness.

The CMS final call letter offers permission to Medicare Advantage plans to offer such services; it does not require them to do so.

Such a policy change could be highly beneficial to many of the low-income patients served by Pennsylvania safety-net hospitals, which have long sought help with addressing the social determinants of health that often bring patients to them but limit their ability to recover from their illnesses and injuries.

Learn more from the Commonwealth Fund report “New Medicare Advantage Benefits Offer Social Services to People with Chronic Illness” and see CMS’s “Announcement of Calendar Year (CY) 2020 Medicare Advantage Capitation Rates and Medicare Advantage and Part D Payment Policies and Final Call Letter.”

 

2019-04-12T06:00:43+00:00April 12th, 2019|Medicare, Pennsylvania safety-net hospitals, social determinants of health|Comments Off on Medicare Advantage Permitted to Address Non-medical Needs

PA Included in New Medicare Value-Based Insurance Program Demonstration

Pennsylvania is one of seven states that will participate in a new value-based purchasing demonstration program for Medicare Advantage plans.
cmsAccording to a fact sheet published by the Centers for Medicare & Medicaid Services (CMS),

Value-Based Insurance Design (VBID) generally refers to health insurers’ efforts to structure enrollee cost sharing and other health plan design elements to encourage enrollees to use high-value clinical services – those that have the greatest potential to positively impact enrollee health. VBID approaches are increasingly used in the commercial market, and evidence suggests that the inclusion of clinically-nuanced VBID elements in health insurance benefit design may be an effective tool to improve the quality of care while reducing its cost for Medicare Advantage enrollees with chronic diseases. As part of the “better care, smarter spending, healthier people” approach to improving health care delivery, CMS will test VBID in Medicare Advantage and measure whether structuring patient cost sharing and other health plan design elements does encourage enrollees to use  health care services in a way that reduces costs.

According to CMS,

The MA-VBID model supports high-value clinical services, improved health outcomes, and health care cost savings or cost neutrality through the use of structured patient cost sharing and other health plan design elements that encourage enrollees to use high-value clinical services. The MA-VBID model will provide flexibility for Medicare Advantage plans accepted into the model to develop clinically-nuanced benefit designs for enrollee populations that fall within certain clinical categories.

The clinical conditions on which the program will focus are diabetes, chronic obstructive pulmonary disease, congestive heart failure, patients who have suffered strokes, hypertension, coronary artery disease, and mood disorders.
The program, to be launched in January of 2017, will run for five years in seven states: in addition to Pennsylvania, Medicare Advantage plans in Arizona, Indiana, Iowa, Massachusetts, Oregon, and Tennessee will be invited to participate.
To learn more about Medicare’s new Value-Based Insurance Design programs, see this CMS news release and fact sheet.
 

2015-09-11T06:00:03+00:00September 11th, 2015|Medicare|Comments Off on PA Included in New Medicare Value-Based Insurance Program Demonstration
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