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New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues and Opportunities Anne Gauthier Senior Fellow National Academy for State Health Policy April 12, 2010

New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

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Page 1: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

New America Forum:A First Look at Implementing Health Reform

The Delivery System Challenge

State Implementation Issues and Opportunities

Anne GauthierSenior Fellow

National Academy for State Health PolicyApril 12, 2010

Page 2: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

States’ Current Roles

• Define populations to serve• Link residents to available

services• Determine benefits and

design delivery systems for targeted populations

• Purchase healthcare services

• Deliver services to institutional residents

• Promote population health

• Promote system-wide improvement

• Educate and train healthcare professionals

• Protect consumers• Finance• Regulate• Employ• Establish legal framework• Coordinate with related

programs

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Page 3: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

Health Reform: State Challenges

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Timing

Capacity

Resources

Leadership

Page 4: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

Health Reform: State Opportunities

• Connect people to needed services

• Promote coordination and integration in the health system

• Improve care for populations with complex needs

• Orient the health system toward results

• Increase health system efficiencies

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Page 5: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

Improve Care for Complex Needs

• Expansion of patient-centered medical homes • New authority to align Medicaid and Medicare• Improved access to home and community-based

services

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Page 6: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

Orient the Health System Toward Results

• Payment reform demonstrations • Quality improvement incentives • Investments in primary care and

prevention• Enhanced data collection and

coordination• Improved transparency

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Page 7: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

Increase Efficiency

• Limit administrative costs

• Coordination between Medicaid & Medicare

• Financial incentives for preventative care

• Opportunities to allocate resources to higher-value care

• System-wide planning across agencies and programs

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Page 8: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

• Several states are leaders -- moving forward with innovative payment and delivery system reform models.

• The Patient Protection and Affordable Care Act and the Reconciliation Act provide multiple opportunities for further experimentation.

“A single courageous state [can] if its citizens choose, serve as a laboratory.”

– Justice Louis D. Brandeis

State Innovations – A Place to Start?

Page 9: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

• Landmark legislation in 2008 established statewide multi-payer methods to reward quality and value for bundled care– Baskets of care

– Statewide quality-based incentive payment system

– Standards of certification for health care homes

Example from Minnesota

•Creatively piloting data collection on quality & costs, including reporting on physician performance•Poised for ACO pilots – data infrastructure in place and many delivery systems ready•Now to add Medicare!

Page 10: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

It won’t be easy, but the rewards hold so much promise…

• State have huge

responsibility for health reform implementation

• Meeting the delivery system challenge will stretch the creativity of all states and stakeholders

• Continued federal-state dialogue holds promise for the continuous learning that needs to occur

Page 11: New America Forum April 12, 2010 New America Forum: A First Look at Implementing Health Reform The Delivery System Challenge State Implementation Issues

New America ForumApril 12, 2010

www.nashp.org