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/in Health Coverage and Access, Policy California, Colorado, Connecticut, District Of Columbia, Maine, Maryland, New York, Vermont Blogs, Featured News Home State Insurance Marketplaces /by NASHP StaffComparison of State Prescription Drug Affordability Review Initiatives
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/in Medicaid Managed Care Arizona, New York, Virginia Blogs, Featured News Home Medicaid Managed Care /by Jodi Manz and Kitty PuringtonBackground
The American Rescue Plan Act (ARPA) establishes an enhanced 85 percent federal medical assistance percentage (FMAP) opportunity for mobile mental health crisis team services in Medicaid. This match supports states in ongoing efforts to build out mental health crisis systems that align to the core elements of a crisis continuum as outlined by the Substance Abuse and Mental Health Services Administration (SAMHSA): regional call centers, mobile response, and crisis stabilization facilities.
States may need to review and revise Medicaid state plans or other authorities in order to take full advantage of the enhanced FMAP opportunity. For states that deliver these services through managed care, Centers for Medicare and Medicaid Services (CMS) guidance indicates that qualifying crisis services must also be included in plan contracts, and the costs of those services integrated into corresponding capitation rates.
Prior to ARPA, several states expanded the delivery and payment of mobile crisis services under Medicaid care contracts. These innovations can continue as states seek the enhanced FMAP for mobile crisis services. Such innovations include:
Allowing assessments to be performed via telehealth. Section 9813 of ARPA requires that in order to qualify for the enhanced FMAP, mobile crisis teams must include at least one provider who can, under state requirements for scopes of practice, perform an assessment of an individual in crisis. Many states have or are considering allowing mobile crisis teams to conduct assessments via telehealth, as behavioral health workforce shortages and distance/transportation challenges can pose barriers, particularly in rural and underserved areas. For example:
- Virginia’s Medicaid mobile crisis response services are included in the state’s Medallion 4.0 managed care contract, and the state’s mental health services manual outlines billing for “telemedicine assisted assessments” in which a non-licensed qualified mental health professional (QMHP) or certified substance abuse counselor (CSAC) can conduct an assessment with real-time remote support from a supervising licensed professional. This assessment is imperative to understanding the immediate factors contributing to a crisis, as well as the supports in place that can help to stabilize an individual; permitting the use of telehealth to provide an assessment can help to ensure that crises are de-escalated as quickly as possible and that mobile teams can make connections to follow up care as necessary.
Enabling managed care data transfer to support coordination and billing. As the first component of the crisis continuum, call centers triage crisis situations, assessing the for the need for higher levels of intervention from mobile crisis teams. Getting insurance information from callers in crisis may not be possible and may interrupt or distract from the primary functions of triage and assessment. This information is, however, necessary to facilitate Medicaid billing for these services.
- Arizona takes a unique approach by contractually enabling information exchange among three entities: the state’s Regional Behavioral Health Authorities (RBHAs), their contracted call centers, and Medicaid managed care plans. Call centers receive minimal information from a caller – just first name, last name, and birth date – and use that to access an enrollment clearinghouse and data warehouse that contains both electronic health records and Medicaid managed care enrollment information submitted by the plans. Using these data, call centers can serve a further function, coordinating follow up services with community-based providers. This allows the centers to bill the managed care plans for both the call center services and care coordination after the call has been resolved.
Eliminating service authorization requirements. Behavioral health services may be subject to prior authorization requirements to ensure medical necessity before a service for a Medicaid beneficiary is approved for delivery. The nature of mobile mental health crisis services, however, makes prior authorization challenging. Several Medicaid managed care contracts explicitly state that plans may not require prior authorization for these services.
- Virginia does not require prior authorization; instead, reimbursement for mobile crisis services is authorized using a registration process. This effectively notifies a Medicaid managed care plan of a provided service and indicates a need for ongoing coordination of care. This registration allows for eight hours (32 units) of services within a 72-hour period, and a service registration form must be submitted to the managed care plan within one business day.
Extending billable service windows post-crisis. Mobile crisis teams provide services for acute crisis events but also provide coordination of ongoing services or connections to higher levels of care upon resolution of the qualifying crisis.
- New York’s billing guidance for mobile crisis intervention providers specifies that while services must be documented in clinical records within 24 hours of a crisis event, follow up services related to the event can be reimbursed within the 14-day period thereafter. During this time, providers can bill Medicaid managed care plans for follow up and coordination of services, including services to maintain stabilization and further engage community-based providers and other patient supports.
Aligning systems and innovation
The enhanced FMAP for team-based mobile crisis services offers an opportunity for states to develop innovations in mental health crisis systems, and Medicaid managed care contracts may be a helpful lever in maximizing state approaches. Issues such as workforce needs, systems coordination, and data infrastructure can be addressed in these contracts, connecting these services to broader state behavioral health systems. As states work across agencies to align existing resources and services in their Medicaid programs, leveraging managed care partners can help coordinate services and providers across the crisis continuum.
Acknowledgements: The authors at the National Academy for State Health Policy (NASHP) would like to thank the state officials from Arizona and Virginia who contributed their knowledge to this blog. In addition, we thank Health Resources and Services Administration Project Officer Diba Rab and her colleagues for their feedback and guidance. This project was supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under co-operative agreement number UD3OA22891, National Organizations of State and Local Officials. The information, content, and conclusions are those of the author and should not be construed as the official position or policy of, nor should any endorsements be inferred by HRSA, HHS, or the U.S. government.
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/in Health Coverage and Access Colorado, Kentucky, Michigan, Minnesota, New York, Oregon, Wisconsin Charts, Featured News Home Health Coverage and Access /by Eddy FernandezStates Take Diverse Approaches to Drug Affordability Boards
/in Policy Maine, Maryland, Massachusetts, New Hampshire, New York, Ohio Blogs, Featured News Home Administrative Actions, Legal Resources, Model Legislation, Newly-Enacted Laws, Prescription Drug Pricing, State Rx Legislative Action /by Johanna Butler, Jennifer Reck and Trish RileyAs states take important steps to lower prescription drug costs, at least six have implemented prescription drug affordability review initiatives, although approaches vary across states. The National Academy for State Health Policy (NASHP)’s new chart, Comparison of State Prescription Drug Affordability Review Initiatives, provides a road map of the diverse efforts taken by Maryland, Maine, New Hampshire, New York, Massachusetts, and Ohio.
NASHP’s Prescription Drug Affordability Board (PDAB) model legislation, first released in 2017, defines a PDAB as an entity comparable to a public utility commission, with the ability to establish upper payment limits when a state’s PDAB determines a drug is otherwise unaffordable for state health care purchasers and consumers.
This chart compares state prescription drug affordability review initiatives in Maryland, Maine, New Hampshire, New York, Massachusetts, and Ohio.
Maryland’s PDAB Phased-in Approach
Maryland’s PDAB, enacted in 2019, was based on the NASHP model but initially limits the board’s ability to set upper payment limits to only public purchasers, pending approval by the state legislature. The landmark Maryland law also includes a phased-in approach that could eventually establish upper payment limits for all payers in the state, including the commercial market. The start-up cost for the Maryland PDAB is roughly $750,000 and covers five full-time employees. The funding mechanism for Maryland’s board was vetoed by Gov. Larry Hogan, however the General Assembly recently overrode the veto.
In determining whether a drug is unaffordable, the Maryland board can consider a variety of factors, including:
- The wholesale acquisition cost (manufacturers’ list price) or another relevant drug cost index;
- Average rebates provided to health plans, pharmacies, and pharmacy benefit managers;
- Net drug prices; and
- Average patient copay.
In its early meetings, the board began to outline a list of potential drug pricing data sources it will need to access in order to determine an appropriate upper payment limit.
State Approaches that Leverage Purchasing Power
Maine and New Hampshire have also enacted laws creating their own unique PDABs. While these boards are called PDABs, it is important to note that, unlike Maryland, they do not have the authority to set payment limits, but are instead focused on leveraging public purchasing power to lower drug costs.
To accomplish that mission, Maine and New Hampshire’s boards are charged with recommending strategies for public purchasers to lower the cost of prescription drugs in order to meet drug spending targets that will be established by the boards. Ohio enacted a law creating a Prescription Drug Transparency and Affordability Council, but the law does not aim to set upper payment limits. Instead, it established a group of stakeholders to provide recommendations to the governor and legislature on actions that could lower drug costs in Ohio.
Medicaid Models
In addition to the models described above, New York and Massachusetts are engaged in affordability review initiatives that focus on drugs purchased by their states’ Medicaid agencies. As NASHP’s new chart shows, New York and Massachusetts use affordability reviews and direct negotiations with drug manufacturers to attain supplemental rebates on high-cost drugs.
Using Canadian Prices to Set Upper Payment Limits
NASHP’s model legislation’s key strategy was to set enforceable upper payment limits for prescription drugs in order to rein in drug prices. However, particularly with COVID-19’s impact on state budgets, not every state has the resources and capacity to establish a new entity to oversee the robust review of drug costs necessary to establish upper payment limits through a PDAB. During the 2020 legislative session, Washington Gov. Jay Inslee vetoed a number of bills based on cost concerns, including a measure that would have established a PDAB.
In the current 2021 legislative session, four states have introduced bills to establish a PDAB but others have refrained due to budget constraints. To support states facing those budget pressures, NASHP has also released a less costly, alternative approach to setting an upper payment limit – NASHP’s international reference rate model.
Using Canadian drug prices, the model allows a state insurance department to set an upper payment limit for up to 250 high-cost drugs (determined by drug price times utilization). A state could revise the model and use an affordability board structure as well. Canadian prices, which are established with reference to prices in various comparable countries, offer a less costly and labor-intensive process of determining upper payment limits.
Lawmakers in five states (HI, ME, OK, ND, and RI) have introduced or pre-filed bills based on the NASHP’s international reference rate model legislation and more bills are expected to be filed. To learn more about NASHP’s legislative models to curb drug costs and estimated savings from each of them, please contact Jennifer Reck.
Federal and State Special Enrollment Periods Increase Access to Insurance Coverage
/in Policy California, Colorado, Connecticut, District Of Columbia, Idaho, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Washington Blogs, Featured News Home Eligibility and Enrollment, Health Coverage and Access, State Insurance Marketplaces /by Christina CousartSign Up for Our Weekly Newsletter
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For individuals living with complex, often chronic conditions, and their families, palliative care can provide relief from symptoms, improve satisfaction and outcomes, and help address critical mental and spiritual needs during difficult times. Now more than ever, there is growing recognition of the importance of palliative care services for individuals with serious illness, such as advance care planning, pain and symptom management, care coordination, and team-based, multi-disciplinary support. These services can help patients and families cope with the symptoms and stressors of disease, better anticipate and avoid crises, and reduce unnecessary and/or unwanted care. While this model is grounded in evidence that demonstrates improved quality of life, better outcomes, and reduced cost for patients, only a fraction of individuals who could benefit from palliative care receive it. 























































































































































