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participating institutions:
Johns Hopkins University AIDS Service, New York State DOH AIDS Institute, The CORE Center, Cook County Hospital



NEWS AND NEW DEVELOPMENTS



HIV Managed Care in the Maryland Health Choice Program [Bartlett JG and Moore RD. IDCP 2001;10:S25] This is an analysis of the Maryland Medicaid Health Choice Program, one of the first Medicaid capitated AIDS programs in the U.S., which was initiated in July 1997. The capitated rate applies only to patients with CDC-defined AIDS. The initial rate was $2,161/member/month based on Maryland Medicaid payments for patients with AIDS in 1995 minus 10% (for Medicaid savings), with a carve out for protease inhibitors and NNRTIs as "new technology." Sequential analysis of payment showed minimum variation through 12/31/00 so rate adjustments were maintained at $2,111 to $2,168/m/m from July 1, 1997 through December 31, 2000. With regard to the Johns Hopkins Hospital experience, the analysis was provided for Priority Partners for calendar year 1999 since this is one of two HMOs that serve the Moore Clinic as well as other care sites within the Hopkins system. Analysis of data for 11,169 member-months showed that reimbursement was adequate for patients with AIDS, but the lower rate, which was based exclusively on co-morbidities for persons with HIV infection without AIDS, resulted in a $3,259,000 loss.

Priority Partners Experience, 1999
Member-months
Revenue
(x $1000)
Expense
(x $1000)
Difference
(x $1000)
AIDS
3,805
$7,784
$7,777
+$7
HIV without AIDS
7,364
$4,427
$7,693
-$3,266
Total
11,169
$12,212
$15,470
-$3259

A third analysis in this report concerned the Moore options program, which is the Moore Clinic component of the Medicaid Health Choice program. Analysis of claims for 243 patients with AIDS showed that 14% of patients account for about 50% of all payment claims. Analysis of these 14% shows a number of comorbidities that contributed to the high cost, including injection drug use, mental health problems, hepatitis C co-infection and renal failure. Particularly striking in this group was the paucity of patients receiving HAART for a variety of reasons that were medically sound.
Comment:
This report provides the three-year follow-up for the Maryland Health Choice program, which was widely acclaimed as perhaps the most progressive in terms of risk-adjusted rates at the time of its inception in 1997. With regard to HIV, the capitated rate was provided for patients with AIDS, but there was no risk-adjustment for HIV-infection without AIDS, and this accounted for substantial losses. This assessment has resulted in the decision to now provide a risk-adjusted rate for this category as well, a policy that was implemented July 1, 2001. Despite the enthusiasm at program inception, the current status is that the Maryland Medicaid Program is about $150 million in debt, and several of the contracting HMOs have declared either bankruptcy or their intent to discontinue or limit this service for purposes of financial survival.

posted 1/18/2002




Copyright © 2001-2002. The National AIDS Education and Training Centers Program on behalf of its AETC National Resource Center. All rights reserved.

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