HomeMy WebLinkAboutMINUTES - 07221997 - C73 Contra
TO: BOARD OF SUPERVISORS Costa
FROM: William B.Walker Coirty
DATE: July 17, 1997
SUBJECT: LETTER TO STATE DEPARTMENT OF HEALTH SERVICES CONCERNING LOCAL INITIATIVE
ENROLLMENT ISSUES
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION
AUTHORIZE Health Services Director or Designee to send letter to Kim Belshe, Director of State Depart-
ment of Health Services, protesting proposed decrease in the Local Initiative enrollment minimum and
changes in the default/assignment methodology.
II. FINANCIAL IMPACT
Reducing the Local Initiative minimum enrollment and changing the default/assignment methodology will
reduce the Local Initiative enrollment by one-third to one-half, thereby reducing premium payments with an
annual revenue loss between $15 million and $20 million. These revenues are needed to help maintain the
County's safety net health care system.
III. BACKGROUND AND JUSTIFICATION
The State Department of Health Services is proposing to decrease the Local Initiative minimum enrollment
number and to change the default/assignment methodology which will result in a loss of 13,000 to over 21,000
members.
CONTINUED ON ATTACHMENT: YES SIGNATURE: oa'• p x
op
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON July 22, 1997 APPROVED AS RECOMMENDED OTHER
APPROVED the above recommendations and DIRECTED thaC County Counsel review the legal
considerations and assist the County Administrator and the Health Services Director in
drafting correspondence relative to the legal issues, as appropriate.
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
AYES: NOES: COPY OF AN ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE
DATE SHOWN.
cc: William B, .Walker, M.D.
Milt Camhi ATTESTED July 22, 1997
Contact: Bobbi Baron - 313-6004
BY DEPUTY
Moardord.pm4
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
. V ,
Suite 100
595 Center Avenue
MCC Martinez, CA 94553
Phone: 510\313-6000
Fax: 510\313-6002
Managed Care Commission
July 17, 1997
S/v Mark DeSaulnier
Chair
Board of Supervisors
651 Pine Street
Martinez, CA 94553
Dear Supervisor DeSaulnier:
The Managed Care Commission, at our meeting last night, discussed a Local Initiative issue
that could have a detrimental impact on the safety net in our County.
We are pleased to be able to report to you that the Local Initiative (Contra Costa Health Plan)
in June had 43,942 Medi-Call members and Foundation an estimated 3,450.
However, we wanted to alert you to this new, potentially detrimental situation. Back in April
the State Department of Health Services recalculated the Local Initiative minimum guaranteed
enrollment from 39,783 to 21,418 and, upon pressure from the commercial plans, developed
proposals for drastically altering the longstanding default methodology. After protest by the
Local Initiatives throughout California, the State Department of Health Services agreed that
there should be local discussions between the Department and plans participating in the two
plan model regarding min/max number and default/assignment procedures. Indeed, the
Department has just released draft guidelines for such discussions.
While we appreciated the opportunity to review the guidelines, we were dismayed to learn that
the State Department of Health Services was willing to reduce the Local Initiative minimum
enrollment in Contra Costa County to 21,418. We have also been informed by the State
Department of Health Services that they are now giving au defaults to Foundation until the
Local Initiative reaches 39,783, then they will split the defaults evenly. On top of this,
Foundation has essentially asked the State to implement the 21,418 minimum level. Together
these actions will negatively affect the safety net in our County. It abrogates the
Department's commitment to maintain disproportionate share hospital (DSH) days and the
safety net providers who have consistently served the most vulnerable populations. In Contra
Costa County, Foundation does not currently even contract with the largest DSH hospital
1
(Merrithew) nor with the largest safety net/FQHC system (County Clinics). In contrast the
Local Initiative contracts not only with Merrithew and the County Clinics, but with all the
other community traditional and safety net providers.
While these proposed actions could reduce the Local Initiative's enrollment by more than half,
it would have a minimal impact on Foundation, increasing its statewide Medi-Cal enrollment
by only 4%. 'What is most important is that the State Health Services Department's own
regulations do ►= require them to change the previously established minimum (39,783) or the
existing default rules (all defaults to the Local Initiative up to this minimum, then 1:1 with
Foundation).
It makes no sense to dismantle the safety net system in Contra Costa County today and then try
to resurrect'it in a year when the new managed care model, namely the County Organized
Health Care System, may be implemented. We have used the 39,783 minimum to build our
provider network; we have assigned all these members to primary care providers in our
system, and we are delivering comprehensive services to this vulnerable population. This is
not the time to disrupt a system that is working. This is not the time to replace the safety net
with a roller coaster (see our attachment).
We believe there is a more rational alternative in Contra Costa County for mandatory aid
eligibles who do not choose a Plan:
1. For one time only default/assign all mandatory eligibles to Foundation until L/1's
enrollment is reduced to 39,783 minimum; this includes all mandatory aid eligibles still
in fee-for-service (minimum defined as mandatory eligibles).
2. If L/I mandatory eligible enrollment falls below 39,783, all defaults/assignments go to
the L/I until it reaches its minimum enrollment; above 39,783 defaults to be everily
divided between LII and Foundation. This is consistent with current state regulations.
3. Maintain the L/1's 39,783 minimum enrollment number until a COHS-like one plan
model is implemented in Contra Costa County. This will assure stability to the safety
net:
We believe our proposal is fair, implementable, and would help to stabilize a fragile safety net
system. Our proposal would stabilize the L/I's total Medi-Cal enrollment at approximately
42,000 and Foundation's total Medi-Cal in Contra Costa County would likely triple from its
current level. It would also give us critical time to convertlthe two plan model in Contra
Costa County to a one plan model (County Organized Health System). The State Department
of Health Services, Foundation and Contra Costa County Board of Supervisors are all in
agreement that any managed care redesign must ensure Contra Costa County, the providers,
the plans, and most especially the Medi-Cal individuals are treated fairly.
2
The Managed Care Commission voted unanimously to ask the Board of Supervisors to
communicate this proposal to the State Department of Health Services as soon as possible.
For your convenience we have included a draft letter.
We are available, if you wish to discuss this further. Please contact either me or Milt Camhi
at 313-6004' if you would like more information.
Sincerely,
Carl Doolittle
Vice Chair
Managed Care Commission
Enclosure
CD:smp 93:1i2
ccs: Phil Batchelor, County Administrator
Managed Care Commission
Bill Walker, M.D., HS Director
Milt Camhi, Executive Director, Health Plan
CONTRA
COSTA COUNTY
30K MINIMUM ROLLER COASTER
Enrollment in Thousands
Local Initiative minimum of 30,000 = roller coaster ride for safety net
Local Initiative minimum of 39,000 = safety net stability
.. .... .. _.... ..i .. ......
::�: 'i�.'...
..i'
Q _ _
79
54
30
10
JAN MAR MAY J U L SEP NOV JAN MAR MAY
1997 1998
(EVERY OTHER MoNyrI IOENTIFIEO)
July 17, 1997
Kimberly S Belshe
Director =';
State Department of Health Services
714 P Street
Room 125
Sacramento, CA 95814
Dear Ms. Belshe:
The Board of Supervisors in Contra Costa County on Tuesday, Jul, voted to express to you
our concern with some recent developments regarding cal IniYx' tr County. While we
were pleased to learn that the Local Initiative(Conf.�L:',.- ealth Pl i?ae had 43,942 Medi-Cal
members and Foundation had an estimated 3,45£0ejw to len that the State is
considering reducing the Local Initiative mi um enroll frritt Costa County and revising the
default/assignment methodology from your.A&g sta-iAii g ru ' 01p, lations. These actions would
have a detrimental impact on the safety 'din Corina'Costa Ctnty and lead to adverse consequences
for the most vulnerable populations Y P il serve:"
�a1i . rite
While these pr -0sed actions uce th five7s enrollment by more than half, it would
have a m' ' 'pact on 5, inincr atewide Medi-Cal enrollment by only
61
4%. WhafrtanState Health Services Department's own regulations do P2
require them tia '` e previaiablished minimum(39,783) or the existing default rules (all
default,-,to the L ii €al the up to tnum,then 1:1 with Foundation).
It makes no se` '�'
,se. to dish ''_&afety net system in Contra Costa County today and then try to
resurrect;it; a year when �aged care model, namely the County Organized Health Care
e have used the 39,783 minimum to build our provider network;we
System,may be implemente ''':
it
have assigned all these me4b s to primary care providers in our system, and we are delivering
comp 6ensive services tot> is vulnerable population. This is not the time to disrupt a system that is
worlOA,. This is notatl 'time to replace the safety net with a roller coaster(see our attachment).
We believe:€fi ,_W is a more rational alternative in Contra Costa County to the State's proposed
changes-*inithe al Initiative minimum enrollment number and default/assignment methodologies for
mandatory and,eligibles who do not chose a Plan:
1
L For one time only default/assign all mandatory eligibles to Foundation until L/I's enrollment is
reduced to 39,783 minimum;this includes all mandatory aid eligibles still in fee-for-service
(minimum defined as mandatory eligibles).
2. If L/I mandatory eligible enrollment falls below 39,783, all defaults/assignments go to the L/I
until it reaches its minimum enrollment; above 39,783 defaults to be evenly divided between
L/I and Foundation. This is consistent with current state regulations.
3. Maintain the L/I's 39,783 minimum enrollment number until a CORS-tike Qrffkplan model is
implemented in Contra Costa County. This will assure stability t i net.
We believe our proposal is fair,implementable, and would stabilize �,� �� ety net system.
Our proposal would stabilize the L/I's total Medi-Cal enrolment at appy and
Foundation's total Medi-Cal in Contra Costa County woul+ cely m its died,
It would also give us critical time to convert the two plan ntra Costa Cot' ( 'one plan
model (County Organized Health System). The Contra Co =�: Board of Supervisors seriously
believes that any managed care redesign must ensure Con 1 ty, the providers, the plans,
and most especially the Medi-Cal individuals are treated f' ly.
As always, we are available to discuss this situation Iease cori `tlier me at 510\646-5763,
.. k
or Milt Camhi, Contra Costa Health Plan(Localihr `hettive Ditor at 510\313-6004.
._..
I look forward to hearing your reactions to .proposal:
Sincerely, 3"
V
Mark DeSa r; _..
Chair
Contra Costa Boar sorshrr_a55,,
93:117
h:
ccs: .-Qontra Costa Co un Board of Supervisor
i�1?hil Batchelor,Co,>%ity Administrator
William Wa1k .D. HS Director
• ."
ed CI mmission
Gre.Financing
',txecutive Director,Health Plan
Administration
Les Spahn
2
CONTRA
COSTA
COUNTY
30K MINIMUM ROLLER COASTER
Enrollment in Thousands
Local Initiative minimum of 30,000 = roller coaster ride for safety net
Local Initiative minimum of 39,000 = safety net stability.
...
..
+........... .. _
9
7Q .. -
5� -
30 ..
10 Y J U L SEP NOV JAN MAR MAY
.SAN MAR MAY
1997 1 1998
(EVERY OTHER MONTH iDENTIFIVO)
•- 1
(Same letter to entire State delegation)
July 17, 1997
The Honorable Dion Aroner
State assembly:
State Capitol Btiulding
Room 2163
Sacramento, CA 95814
Dear Assembly,Member Aroner:
We very much appreciate your past assistance in addressi serio t have arisen about the
implementation of the Medi-Cal Local Initiative in Co osta Co e, the Local Initiative
in Contra Costa County, Contra Costa Health PZ edi- rs and Foundation had
an estimated 3,450. However,you should be a do at could have a detrimental
impact on the safety net in Contra Costa Co
Back in April the State Department of h Se s recalc ed the Local Initiative minimum
guaranteed enrollment from 39,783 18 Pon pr a from the commercial plans,
developed proposals for drastically ring th stan ' default methodology. After protest by
the Local Initia ' es througho rnia, ent of Health Services agreed that there
should he 1 ssions a Dep d plans participating in the two plan model
regarding ber signment procedures. Indeed,the Department has released
draft guideline sous
While we appre ' ty iew the guidelines, we were dismayed to learn that the
State Dep of He was willing to reduce the Local initiative minimum enrollment in
Contra C County to 2l have also been informed by the State Department of Health
Servic t they are now 1 defaults to Foundation until the Local Initiative reaches 39,733,
then will split the def evenly. On top of this,Foundation has essentially asked the State to
imp t the 21,418 um level. Together these actions will negatively affect the safety net.in
our It abro he Department's commitment to maintain disproportionate share hospital
(D ty net providers who have consistently served the most vulnerable populations.
In ty,Foundation does not currently even contract with the largest DSH hospital
(Mem with the largest safety net/FQHC system(County Clinics). In contrast the Local
Initiative contracts not only with Merrithew and the County Clinics, but with all the other community
traditional and safety net providers.
1
While these proposed actions could reduce the Local Initiative's enrollment by more than half, it would
have a minimal impact on Foundation, increasing its statewide Medi-Cal enrollment by only
4%. What is most important is that the State Health Services Department's own regulations do not
require them to Xchange the previously established minimum (39,783) or the existing default rules (all
defaults to the Local Initiative up to this minimum,then 1:1 with Foundation).
It makes no dense to dismantle the safety net system in Contra Costa Co d then try to
resurrect it in a year when the new managed care model,name a Co 'zed Health Care
System, may be'implemented. We have used the 39,783 to bui der network;&e
have assigned all these members to primary care provider us syste verin
comprehensive services to this vulnerable population. T not a to di t is
working. This is not the time to replace the safety net wi aster(see our t).
We believe there is a more rational alternative in Contra Co r mandatory aid eligibles who
do not choose a Plan:
1. For one time only default/assign all mandat to Fou til L/I's enrollment is
reduced to 39,783 minimum; this includ id elig" s still in fee-for-service
(minimum defined as mandatory elig'
2. if L/I mandatory eligible enrol falls b 39,78 defaults/assignments go to the L/I
until it reaches its minimum ent; ve 39,711 defaults to be evenly divided between
l,/I and Foundation. This i sistent curr ate regulations.
3. Main e L/I's 3 imum a number until a CORS-like one plan model is
im Con unty. s will assure stability to the safety net.
We believe aur: air, im , and would help to stabilize a fragile safety net system.
Our proposal w(o e L/F edi-Calenrollment at approximately 42,000 and
Foundation' e tra sta County would likely triple from its current level.
It would gide us criti nvert the two plan model in Contra Costa County to a one plan
model ty Organized ystem). The State Department of Health Services, Foundation and
Con osta County Boaz f upervisors are all in agreement that any managed care redesign must
ens ontra Costa Cou the providers, the plans, and most especially the Medi-Cal individuals are
tre rly.
2
•' i
If you agee with this proposal, we would appreciate your communicating this to the State Department
of Health Serviees as soon as possible. For your convenience, we have included a draft letter.
As always, we are available to discuss this situation further,please contact either me at 510\646-5763,
or Milt Camhi, bontra Costa Health Plan(Local Initiative) Executive Director at 510 -6004.
Sincerely,
Mark DeSaulaier, Chair
Contra Costa Beard of Supervisors
93:li
ccs: Contra Costa County Board of Supervisors
Phil Batphelor, County Administrator
William:Walker,M.D.,HS Director
Managed Care Commission
Milt Carnhi, Executive Director th P
Heath Care Financing Adminn
Les Spahn
3
CONTRA
COUNTY
30K MINIMUM ROLLER COASTER
Enrollment in Thousands
Local Initiative minimum of 30,000 = roller coaster ride for safety net
Local initiative minimum of 39.000 = safety net stability
.....................
90 ......................
......... ....
70 ..
0
_ .
30
JAN MAR MAY JUL SEP NOV JAN MAR MAY
1997 1998
(EVERY OTnEP MONTH IDENTIFIEO)
July 17, 1997
Kimberly S Belshe
Director
State Department of Health Services
714 P Street
Room 1253
Sacramento,CA 95814
Dear Ms. Belshe:
We are disturbed to learn from the Board of Supervisors ' on ty that your Department
is willing to redliice the Local Initiative minimum euro numbe assignment
methodology it Contra Costa. These changes w trous on the major DSH
hospitals and safety net providers in our Co un c adv consequences for the most
vulnerable populations that they primarily s
It makes no sense to dismantle the saf t syste Con osta County today and then try to
resurrect it in a year when the new d car -del, n y the County Organized Health Care
System,may be implemented. Th. ntra C oun Initiative has used the 39,783
minimum to b ' its provider ;they all these members to primary care
providers in stem, vering ive services to this vulnerable population.
This is trot imp t is working. This is not the time to replace the safety net
with a roller c ttac
We believe th a1 alt ve in Contra Costa County for mandatory aid eligibles who
do not choo an:
1. one� 'e only d ssign all mandatory eligibles to Foundation until L/I's enrollment is
ducedto 39,783 imam;this includes all mandatory aid eligibles still in fee-for-service
tim defin mandatory eligibles).
2. eligible enrollment falls below 39,783,all defaults/assignments go to the L/I
es its minimum enrollment; above 39,783 defaults to be evenly divided between
oundation. This is consistent with current state regulations.
3. Maintain the L/I's 39,783 minimum enrollment number until a COHS-like one plan model is
implemented in Contra Costa County. This will assure stability to the safety net.
1
We believe this proposal is fair, implementable, and would help to stabilize a fragile safety net system.
This proposal Would stabilize the L/T's total Medi-Cal enrollment at approximately 42,000 and
Foundation's total Medi-Cal in Contra Costa County would likely triple from its current level.
It would also give the County critical time to convert the two plan model in Contra Costa County to a
one plan model(County Organized Health System). We know you will agree with us, Foundation and
the Contra Costa County Board of Supervisors that any managed care redesign must ensure Contra
Costa County,tie providers, the plans,and most especially the Medi-Cal individuals are treated fairly.
Please let me 4ow your reactions to this proposal.
i
Sincerely,
Assembly Member Dion Aroner
Enclosure
DA:smp
93:16
ccs: Ann Kuhns
(;CC Ba d of Supervi
C'on Mana mmis
I le anct ration
2
CONTRA COSTA COUNTY
30K MINIMUM ROLLER COASTER
Enrollment in Thousands
Local Initia4e minimum of 30,000 = roller coaster ride for safety net
Local lnitia6e minimum of 39,000 = safety net stability
. ......................... . .. .....
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10
JAN MAR MAY JUL SEP NOV JAN MAR MAY
1997 1998
(EVERY OTi-ER MONTH iMNTIFIED)
TOTAL P.15
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CONTRA COSTA COUNTY
30K MINIMUM ROLLER COASTER
Enrollment in Thousands
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