Wednesday, August 1, 2018

After controversial bid, lawmakers celebrate new Medicaid contractor's policy Oct. 1


Anna Wolfe, Mississippi Clarion Ledger Published 11:01 a.m. CT July 6, 2018 | Updated 11:39 a.m. CT July 6, 2018
The complexities of Medicaid often contribute to the confusion of the program. Here, we break down some of the numbers for Mississippi Medicaid. Dustin Barnes/The Clarion-Ledger
After a hard-fought bid for billions of dollars from Mississippi Division of Medicaid, California-based Molina Healthcare is preparing to start managing the health care of thousands of Mississippians.
Lawmakers and division officials celebrated a ribbon cutting June 26 in Jackson for Molina Healthcare of Mississippi, which is one of three insurance companies who last summer won $3 billion-a-year in managed care contracts.
The three-year contract award is still the subject of litigation.
Medicaid beneficiaries in the managed care program will be given the opportunity to switch to the Molina policy, which is set to start Oct. 1. New managed care enrollees will be automatically placed in Molina's plan until it insures 20 percent of state beneficiaries. Molina also recently began entering contracts with health care providers.
Mississippi has contracted with the two other insurers, UnitedHealthcare and Magnolia Health, since the state's managed care program, MississippiCAN, began in 2011. 
"Having a third managed care entity will expand options for Medicaid beneficiaries and create a more competitive environment that over time should lead to better care for beneficiaries and a better value for taxpayers," Medicaid director Drew Snyder said in a statement. "Molina Healthcare has been easy to work with during the implementation phase, and remains on track for the October 1 operational go-live date."
Medicaid pays the managed care companies a set amount per month — around $550 for every adult, $290 for every child and $1,120 for every person with a disability who is on the program — to manage their health care. This helps the state maintain a stable Medicaid budget, since the amount paid out is not dependent on how sick the beneficiaries are in a given year, like with traditional fee-for-service Medicaid.
In turn, the managed care companies are tasked with helping nearly half a million Medicaid members stay healthy by providing more preventive care, like screenings and unlimited doctor's visits. If Mississippians stay healthy, they'll require less expensive services.
"We are thrilled to launch Molina's Mississippi health plan and are looking forward to serving Medicaid beneficiaries through the MississippiCAN program," Bridget Galatas, president of Molina Healthcare of Mississippi, said in a release. "We have been coordinating closely with the state's Division of Medicaid, along with local providers and community-based organizations, and we will continue to work with these excellent partners to provide access to high-quality care for our members."
The set-up also means Molina, United and Magnolia keep any dollars allocated for healthy patients that are not paid out for preventive services or care for the sicker ones.
Two losing bidders, Mississippi True and Amerigroup, protested the award and claimed the division's scoring criteria was biased against them, that their scores were unfairly low and that the former Medicaid director had a conflict of interest with one of the winners.
Emails used as evidence in court showed conversations about job opportunities between Molina officials and former Medicaid director David Dzielak. Molina officials asked Dzielak about potential executives for its Mississippi branch several months before it was awarded the contract and also encouraged Dzielak to apply for the Medicaid director position in another state.
Mississippi True, a provider-sponsored health plan backed by over 60 local hospitals, sued the agency in Hinds County Chancery Court, but the case was voluntarily dismissed. In April, the nonprofit filed another 192-page lawsuit against the division, Dzielak and the governor's office.
"The MississippiCAN contracts were awarded and are being performed in violation of unambiguous Mississippi statutory and regulatory law," the lawsuit reads.
The lawsuit is ongoing.
During the 2018 session, several lawmakers attempted to carve out a portion of the contract for Mississippi True, arguing in part that any excess dollars paid out of the Medicaid program should go to hospitals instead of insurance companies.
The measure failed to pass in the Medicaid technical amendments bill that is revisited by the Legislature every three years.
"I still think that we have enough room for a provider-sponsored health plan and I would still like to see that happen for Mississippi," said Rep. Becky Currie, R-Brookhaven, one of the loudest opponents against the bid.
Molina touts its policy of providing the following services with no required copay: prenatal care, emergency services, hospital care, flu and pneumonia vaccines, lab testing and X-rays, prescription drugs, regular doctor visits, vision coverage and expanded behavioral health services.
Molina, like United and Magnolia, offers unlimited doctor's visits to its members.
Traditional fee-for-service Medicaid patients are restricted to 12 visits per year, though many lawmakers thought they had required the division to change its policy to remove the restrictions during the 2018 session.
Medicaid officials announced at the end of June that restrictions on doctors visits and monthly prescriptions would remain intact July 1.

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