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Medicaid and CHIP Health Information Exchange (HIE) Advisory Committee Meeting August 2, 2010

Medicaid and CHIP Health Information Exchange (HIE) Advisory Committee Meeting August 2, 2010. Agenda. Update on Medicaid Health IT Initiatives. e-Prescribing and Health Information Exchange (HIE) Pilot

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Medicaid and CHIP Health Information Exchange (HIE) Advisory Committee Meeting August 2, 2010

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  1. Medicaid and CHIP Health Information Exchange (HIE)Advisory CommitteeMeetingAugust 2, 2010

  2. Agenda

  3. Update on Medicaid Health IT Initiatives • e-Prescribing and Health Information Exchange (HIE) Pilot • Transfer to new pharmacy claims administrator still in transition, delaying the implementation of e-prescribing and the HIE pilot’s exchange of medication history. • Controlled substances can now be electronically prescribed. • Medicaid Eligibility and Health Information Services (MEHIS) • Contract sent to the Centers for Medicare & Medicaid Services (CMS) last week for approval. • Anticipate contract to be executed by October.

  4. Follow-up from June’s HIE Advisory Committee • Consent option decision still pending • Briefing with the Executive Commission scheduled for August 9 • Standard for medication history in e-prescribing is one year • Sensitive information and implications for Medicaid HIE

  5. Medicaid HIE Privacy and Security Workgroup Presenter LaDair Wright Team Lead for Privacy and Security Workgroup Medicaid and CHIP Division

  6. Sensitive Information and Implications for Medicaid HIE Substance abuse treatment information is confidential, except that it may be made available to a health information exchange organization if: • A qualified service organization agreement exists between the HIE organization and a Part 2 program (federally-assisted program providing alcohol or drug abuse diagnosis, treatment or referral); and • The patient signs a Part 2-compliant consent form.

  7. Sensitive Information and Implications for Medicaid HIE HIV/AIDS test results are confidential, except that they may be released to: • State, local and federal health authorities. • Physicians, nurses or other health care personnel ordering the tests or who have a need to know in order to provide for their protection and for the patient’s health and welfare. • Patients tested or persons legally authorized to consent to the test on the patients’ behalf. • Spouses of persons who test positive for HIV or AIDS. • Courts that have directed testing of persons indicted for sexual assault, or have granted a request by the victim. • First responders or correctional/juvenile probation staff exposed to HIV infection. • County or district courts to comply with rules relating to control and treatment of communicable diseases and health conditions.

  8. Sensitive Information and Implications for Medicaid HIE Psychotherapy notes are confidential except that they may be made available with authorization that mentions only psychotherapy notes. Authorization is not required for: • Use by the creator of notes for treatment. • Use by a covered entity for its own training programs or to defend itself in a proceeding brought by the subject of the notes. • Disclosure to the Secretary of Health and Human Services (HHS) to determine Health Insurance Portability and Accountability Act (HIPAA) compliance. • As required by law for oversight of the creator of the notes. • Disclosure to medical examiner for duties authorized by law. • Disclosure that is necessary to prevent or lessen a serious threat to a person or the public.

  9. Sensitive Information and Implications for Medicaid HIE • Mental Health: Other than psychotherapy notes, communications between a patient and a mental health professional and the patient’s medical records are confidential. • May be disclosed with written consent or to medical staff in the course of treatment. • Mental Retardation: The identity, diagnosis, evaluation or treatment of a person in a program or activity related to mental retardation are confidential, but may be disclosed with prior written consent, or for: • Delivery of services to clients. • Medical personnel during a medical emergency. • Personnel for audits, program evaluations, or research approved by the Department of Aging and Disability Services (DADS). • Personnel authorized to conduct investigations of abuse and denial of rights. • Payment for services.

  10. Sensitive Information and Implications for Medicaid HIE • Genetic information from a genetic test or scientific/medical genetic characteristic determination is confidential. • May be disclosed with written consent that includes a specific description of the information to be disclosed. • Sexually-transmitted disease information provided to a state or local public health agency that relates to cases or suspected cases of diseases or health conditions is confidential. • Treatment of a minor: Minors have more authority to control their health information when:* • State law does not require parental consent for the minor to obtain health care services, and • The minor consents to the treatment. * Should not affect the disclosure of Medicaid information to providers for treatment but may affect providers’ ability to grant parental access to their child’s medical information

  11. Federal Health IT Regulatory Activity • Electronic Prescribing of Controlled Substances Interim Final Rule • Allows the option of e-prescribing controlled substances with the use of two of the following authenticating factors: password, token, or biometric – published March 31, 2010 • Medicare and Medicaid EHR Incentive Program Final Rule • Establishes EHR Incentive Program requirements, including criteria for provider eligibility, payment methodologies, meaningful use, and program oversight – published July 13, 2010 • Standards and Certification for EHR Final Rule • Establishes the capabilities, standards, and implementation specifications for certified EHR technology to support meaningful use. The Office of the National Coordinator (ONC) for Health Information Technology is accepting applications for authorized testing and certification bodies under a temporary certification program – published July 13, 2010 • Proposed Rule Change to HIPAA • Expands rights and restricts certain types of disclosures; requires business associates to be under same rules as the covered entities; sets limitations on the use health information for marketing and fundraising; and prohibits the sale of protected health information – posted for comment July 14, 2010

  12. Statewide HIE Plan Presenter: Stephen Palmer, Director Office of e-Health Coordination Health and Human Services Commission

  13. Statewide HIE PlanBackground • Funding authority from the American Recovery and Reinvestment Act (ARRA), Section 3013 for planning and implementation grants to states or qualified state-designated entities to facilitate and expand HIE. • Grant opportunity with ONC. • Coordinated effort between HHSC’s Office of e-Health Coordination and Texas Health Services Authority.

  14. Statewide HIE PlanTimeline • February 2009 – ARRA passed. • August 2009 – Funding Opportunity Announcement released. • October 2009 – Texas application submitted. • March 2010 – Texas award of $28.8 million over four years announcement released. • August 2, 2010 – Draft Texas HIE plans published for public comment. • August 16, 2010 – Comments due. • September 1, 2010 – Final target submission date for plans.

  15. Statewide HIE PlanCollaborative Planning Process • Workgroups • Governance and Finance • Technical Infrastructure • Privacy and Security • EHR Adoption and Consumer Engagement • Strategic and Operational Plans • Environmental Scan • Governance • Finance • Business and Technical Operations • Policy and Legal

  16. State Medicaid Health Information Technology Plan(SMHP) Presenters Kathleen Costello, Yvonne Sanchez, Noel Villarreal,Anna Sicher, and Julia AlejandreMedicaid and CHIP Division

  17. EHR Incentive Program andMeaningful Use • Final federal rules on the EHR Incentive Program—including meaningful use (MU) criteria—released July 13, 2010 • An eligible provider and hospital will be considered a meaningful EHR user if they meet the following three requirements: • Demonstrates the use of certified EHR technology in a meaningful manner. • Demonstrates that certified EHR technology is connected in a manner that provides for the electronic exchange of health information to improve the quality of health care. • Using its certified EHR, submits information on clinical quality measures and other measures as specified. • MU criteria to be defined in stages: • Stage 1 criteria in current proposed rule. • Stage 2 criteria to be defined in 2013. • Stage 3 criteria in 2015.

  18. MU Comparison NPRM to Final Rule 18

  19. MU Comparison NPRM to Final Rule 19

  20. State Medicaid Health Information Technology Plan The SMHP provides a common understanding of the activities that Medicaid will be engaged in over the next five years relative to implementing Section 4201 of ARRA. CMS is interested in how Medicaid plans to: Make provider incentive payments. Monitor the payments. Coordinate with the Statewide HIE planning initiative and Regional Extension Centers (RECs) supported by ONC. Integrate other Medicaid HIT projects and initiatives. CMS expects annual and as-needed updates to keep it informed as the SMHP evolves. 20

  21. Technology Adoption Curve 92% Laggards Skeptics 84% Late Majority Conservatives The Chasm 50% Early Majority Pragmatists 16% Early Adopters Visionaries 2.5% Innovators Enthusiasts Consumer seeks technology and performance Consumer seeks solutions and convenience The technology adoption lifecycle and curve is based on research by Joe M. Bohlen, George M. Beal and Everett M. Rogers The chasm concept was popularized in the book Crossing the Chasm, Geoffrey A. Moore

  22. Model for Quality Improvement Step 1: Plan Plan the test or observation, including a plan for collecting data.State the objective of the test. Predict what will happen and why. Plan to test the change. (Who? What? When? Where? What data need to be collected?) Step 2: Do Try out the test on a small scale. Carry out the test. Document problems and unexpected observations. Begin analysis of the data. Step 3: Study Set aside time to analyze the data and study the results. Complete the analysis of the data. Compare the data to your predictions. Summarize and reflect on what was learned. Step 4: Act Refine the change, based on what was learned from the test. Determine what modifications should be made. Prepare a plan for the next test. 22

  23. SMHP Project Schedule 23 23

  24. SMHP Overview Plan for health care reformenabled by meaningful use of certified EHRs Medicaid Vision for Health Care Reform By 2014, what goals and objectives does Medicaid need to achieve? How will Medicaid address the needs of varying populations? How will Medicaid assess and provide technical assistance for providers? What governance processes and structures need to be established? What legislative or regulatory changes are needed?

  25. As Is LandscapeTexas Medicaid Medicaid serves a population of approximately 3.6 million unique clients per year and an average of 2.7 million in any given month. The percentage of Medicaid clients in managed care was 71 percent in 2008. Medicaid accounted for 25 percent of the appropriated Texas budget for the 2006-2007 biennium. 29 percent of Medicaid budget spent on children in 2007. $21 billion (all funds) spent for Medicaid in federal fiscal year 2007. $1.9 billion in total Medicaid payments (all funds) to nursing homes in federal fiscal year 2007. $2.1 billion in total Medicaid payments made to hospitals in federal fiscal year 2007 (excluding disproportionate share hospital [DSH] and upper payment limit payments). 25

  26. As Is Landscape Conduct an environmental scan and assessment of current practitioner and hospital EHR capabilities. Consider federally qualified health center (FQHC), rural health clinic (RHC), Veterans Administration and Indian Health Service clinical facilities with EHR capabilities; describe any Health IT funding. Describe role of Medicaid Management Information Systems (MMIS) in current Health IT environment and in coordination with Medicaid Information Technology Architecture (MITA) transition plans. 26

  27. As Is Landscape Assess and describe broadband internet access, including grants. Explain Medicaid’s relationship with Statewide HIE planning initiative and RECs supported by ONC and other programs. Describe the interoperability status of the state’s immunization registry and public health surveillance reporting database(s). Describe any activities that will encourage adoption of EHRs; consider health care service access that crosses state borders. 27

  28. As Is Landscape Medicaid is conducting a survey, in coordination with the statewide HIE and the four Health IT RECs, directed to hospitals and all providers in the eligible professional category. Surveys will be used: To meet program planning requirements. As a benchmark for program evaluations. Surveys disseminated in early July 2010 with preliminary results and analysis in August 2010. Medicaid is seeking the support of committee members and professional associations to encourage completion of the survey. 28

  29. As Is LandscapeMedicaid Claims Systems • MMIS is a distributed group of procedures and computer processing operations and subsystems. • HHSC contracts with a coalition of vendors headed by Affiliated Computer Systems State Health Care, working under the name of the Texas Medicaid & Healthcare Partnership (TMHP) to provide MMIS services. • TMHP provides the necessary services to process and adjudicate Medicaid claims (with the exception of capitated arrangements between health plans).

  30. As Is LandscapeMedicaid Claims Systems • TMHP performs services to support the following claim and non-claim related areas of MMIS operations: • Compass 21: Supports processing of Medicaid claims. • Case Management/Health Education: Supports case management and health education functions for Primary Care Case Management (PCCM) members. • Provider Network Management – Supports provider network management, credentialing and enrollment for PCCM providers. • Member Management – Supports member processing for PCCM members • Claims Submission (TexMedConnect): Provider application that supports claims submission, eligibility verification and claims status inquiry. • Claims Management System and Service Authorization System: Long-term care service authorization and claims processing engine. • Encounters Datamart: Stores managed care encounter data from contracted managed care organizations.

  31. To Be LandscapeNew Capabilities

  32. To Be Landscape HIE Connectivity • THSA is evaluating options for statewide HIE • MEHIS provides an infrastructure for Medicaid HIE • MEHIS will enable HHSC to exchange data with the statewide HIE

  33. To Be LandscapeMedicaid Enterprise Vision • Texas HHSC will become a value purchaser of health care quality and outcomes by supporting and “e-enabling” these capabilities • Develop value purchaser capabilities. • Utilize clinical decision support capabilities to analyze Medicaid health care administrative and clinical data from across the state and enterprise and to meaningful use patient summary information to improve health care delivery and cost effectiveness. • Establish and maintain a comprehensive and robust provider network capable of providing quality care based on population needs, unique care conditions, and locus of service needs. • Implement effective and efficient primary and integrated care approaches. • Ensure the secure and private exchange of health care informationacross the Medicaid enterprise consistent with national standards, including specialty providers. • Increase health care coverage through insurance exchanges under national health reform that effectively enrolls new clients in Medicaid or other health care coverage and ensures timely access to quality care.

  34. To Be LandscapeProvider Level Vision Improve the health and well-being of citizens of Texas through the widespread adoption and meaningful use of certified EHRs to: Improve quality, safety, efficiency, and reduce health disparities. Engage patients and families in their health care. Improve care coordination. Ensure privacy and security protection for personal health information. Improve population and public health. 34

  35. EHR Incentive ProgramOverview • Payment is an incentive for using certified EHRs in a meaningful way • Not a reimbursement and not intended to penalize early adopters. • First year payment can be received in 2011 through 2016 • Final payment can be received up to 2021 • Eligible professionals must meet certain criteria: • Eligible provider type. • Medicaid patient volume thresholds. • MU of certified EHRs for at least 50 percent of patient encounters during the reporting period.

  36. EHR Incentive Program Enrollment Process Provider Registers with CMS at the National Level Repository (NLR) Forwarded to HHSC Providers receive an automated mailing giving web link and emphasizing importance of enrolling with Medicaid before applying Provider fills out online application attesting to all eligibility criteria Provider fills out Provider does not fill out – but registers with NLR HHSC confirms licensed and unsanctioned Yes No – Reject

  37. EHR Incentive Program Payment Process HHSC reviews attested volume and compares reported information to Medicaid data sources Volume Sufficient Volume fails validity check – request additional support Volume insufficient – Reject Adopt, Implement and Upgrade (AIU) – Year 1 only Purchase/Upgrade Verified No documentation provided – Request Does not meet AIU – Reject Meaningful Use (MU) and Clinical Quality Measures (CQM) – Year 2 and beyond Attest and submit to MU/CQM measures Attest MU but did not provide CQM – Request CQM MU/CQM not met – Reject

  38. Verify ongoing payment eligibility – Year 2 and beyond Verified costs and other criteria Insufficient documentation provided – Request Does not meet – Reject EHR Incentive Program Payment Process Payment calculated Provider paid

  39. Eligibility: Patient Volume

  40. Eligible ProviderEstimates * Estimate of eligible providers are based on a preliminary counts of enrolled Medicaid providers, claims history and eligibility criteria from the NPRM. 40

  41. Proposed Process for Provider Eligibility • Goal is to complete application reviews within 90 days. • As applications come in, the clock starts based on when documentation is complete. • Requests for additional information issued within 60 days. • For eligible professionals, a single application must show sufficient Medicaid practice volume, EHR costs, and EHR use. • For hospitals, a single application must show sufficient Medicaid practice volume, incentive formula, and EHR use.

  42. Proposed Process for Provider Eligibility • All providers will attest to their number of patient encounters by payor source with separate tabs in the application for: • Medicaid fee-for-service. • Medicaid managed care listed by managed care plan. • PCCM payments. • In order to facilitate pre-eligibility verification and post-payment audits as necessary, will require the “90-day” period for demonstrating EP Medicaid share to equate to three full calendar months. • Encounters will be defined around count of procedures per performing provider rather than count of submitted claims.

  43. Patient Volume Calculation • Defined “encounter” for three scenarios: • Fee-for-service. • Managed care and medical homes. • Hospitals. • Two main options for calculating patient volume: • Encounters. • Patient panel. • State picks from these or proposes new method for approval. May use approved approach of another state. 43

  44. Entities Promoting the Adoption of EHRs • States may designate entities “promoting the adoption.” • EPs may voluntarily assign their incentive payments to these entities. • Promotion would include: • Enabling and oversight of the business operational and legal issues involved in the adoption and implementation of EHR and/or the secure exchange and use of electronic health information. • Maintaining the physical and organizational relationship integral to the adoption of certified EHR technology by EPs. • Required transparency guidelines for selection. 44

  45. EHR Incentive ProgramPayment Processes • Ensure that there is no duplication of Medicare and Medicaid incentive payments to EPs. • Ensure that incentive payments are made for no more than six years and that no EP or hospital begins receiving payments after 2016. • Ensure that incentive payments are not paid at amounts higher than 85 percent of the net average allowable cost of certified EHRs and do not exceed yearly maximum allowable payment thresholds. • Ensure timely and accurate payments to EPs and hospitals. • Ensure that any monies paid inappropriately will be recouped and federal financial participation (FFP) is repaid.

  46. Incentive Payments forEligible Professionals Source: Centers for Medicare and Medicaid Services

  47. Proposed Payment Process for EPs • Provide option for EPs practicing in a group to impute the group’s Medicaid share for their individual application, referencing the group’s Texas Identification Number (TIN), but under the individual provider’s National Provider Identifier (NPI). • Will require EPs to attest that this is the only group TIN that they are applying under. • Still requires an individual online application/attestation for each provider claiming incentives, but can be batched together by TIN. • One time per year with annual payment dates staggered monthly. • For part-time providers, if the attested total billing is less than the amount of the incentive they are trying to claim, will require submission of Form 1099 and documentation of the nature of the provider’s engagement with the group or clinic.

  48. Incentive Payments forEligible Hospitals • Medicaid hospital incentive payments based on a formula similar to Medicare hospital methodology. • A product of the overall EHR amount multiplied by the Medicaid share. • Payment is calculated, then disbursed over three to six years. • Payments in any one year cannot exceed 50 percent of the total payment cap and payment in any two years cannot exceed 90 percent of this limit. • Data to be derived from the hospital cost reports and other auditable data sources. • Will propose that hospitals attest regarding their own most recent fiscal year (which will overlap with the most recent federal fiscal year).

  49. Incentive Payments forEligible Hospitals The basic calculation—performed for each of four projected years: $2,000,000 + $200/discharge (for number of discharges between 1,150 to 23,000) x transition factor based on the hospital’s current payment year x provider’s average annual rate of growth for the most recent 3 year period x Medicaid share (12 month Medicaid bed days ÷ total bed days x (total charges - charity care) ÷ total charges)

  50. Proposed Payment Process for Hospitals • One time per year with annual payment dates staggered monthly. • Payment will be made in the first monthly date after incentive is approved. • Medicaid has the flexibility to spread out hospital incentive payments over as few as three or as many as six years • Texas proposes to use a five year payout for the incentives according to the following schedule:

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