The Health and Human Services Commission held a public hearing on July 16, 2015 to discuss the extension of the 1115 Waiver and to hear public testimony.

Welcome and Opening Remarks

  • Current waiver lasts through 9/30/16
  • Proposed effective date for extension of 1115 Waiver is 10/1/16 through 9/30/21
  • HHSC plans to submit the draft waiver to the Governor’s office in late August or early September
  • Governor would submit the extension request to CMS by 9/30/16 at which time HHSC will post the request to their website.
  • There were 5 main goals of for the waiver. Texas has made progress towards all five goals:
    • Expand Medicaid managed care statewide
    • Develop and maintain a coordinated care delivery system
    • Improve health outcomes while containing costs
    • Protect and leverage federal match dollars to improve the healthcare infrastructure
    • Transition to quality-based payment systems across managed care and hospitals.
  • There were three main components to the waiver:
    • Statewide Medicaid managed care through STAR, STAR+ PLUS, and Children’s Medicaid Dental Services Program
    • Uncompensated Care Pool: Provider reimbursement to offset uncompensated care costs
    • DSRIP Pool: Incentive payments to hospitals and other providers for infrastructure and innovation through 20 Regional Healthcare Partnerships (RHPs)

 
Managed Care

  • Managed Care includes STAR, STAR+ PLUS, and Children’s Medicaid Dental Services Program
  • A brief overview of these programs was given
  • The Changes since 2011 under the 1115 Waiver have included:
    • Statewide Medicaid Managed Care
    • Added populations
    • Added services that were originally only fee for service

Delivery System Reform Incentive Program (DSRIP)

  • Overtime the UC pool has gone down slightly and DSRIP pool has gone up slightly – all funds for these pools combined is $29 billion through the last five years (Roughly 58% federal funding)
  • The DSRIP Pool extension will include $3.1 billion for each year of the extension period. (This is the same amount as the previous waiver period)
    • More time is needed to evaluate project outcomes and lessons learned
  • Through DSRIP Protocols, HHSC may propose one or more of the following uses for funds from the $3.1 billion annual pool not allocated to continuing projects
    • Alternate transformative projects from narrower menu based on lessons learned
    • Bring smallest projects up to minimum valuation level
    • Add funds to a shared performance bonus pool for regions that make improvements on key measures
  • HHSC wants to streamline DSRIP to lessen the administrative burden on providers
  • Other ideas under consideration for extension request:
    • Require DSRIP projects to report Medicaid IDs of patients served by projects
    • Require all DSRIP and UC hospitals to provide emergency department admission, discharge, and transfer (ADT) information to their regional or state-level HIE
    • HHSC would provide Medicaid ADT information to MCOs for them to share with providers to improve care coordination

Uncompensated Care Pool

  • Texas has total of $11 billion from UC pool
  • Texas’ UC burden has not decreased and the existing funding sources do not offset all UC costs for Medicaid and uninsured patients

Concluding statements on 1115 Waiver

  • HHSC will request to continue all three components of 1115 Waiver
  • Texas has made progress related to all five outlined goals
  • The only change HHSC will request to the STCs is to extend DSRIP and UC pools for five more years
  • HHSC will review input received during 30 day public comment period. HHSC will post a summary of public comment and how it was incorporated into the extension proposal.

Public Testimony:
Cam Clabrink – Frontera Healthcare Network and Texas Association of Community Care Centers

  • Frontera serves 5 rural counties in region 13
  • 30% of patients are uninsured even after increases
  • District projects should be complemented by extended coverage
  • Coverage expansion will bring 128 billion tax dollars to Texas as opposed to 34 billion in current waiver

Grace Chimene – League of Women Voters of Texas

  • Pediatric nurse practitioner
  • Appreciates the innovations by 1115 waiver
  • Texas has highest percentage of uninsured patients and should expand coverage
  • High rates of uninsured patients puts financial stress on hospitals

Dr. John Asbury, Pediatrician – On behalf of self

  • 80% of patients are CHIP
  • Has not seen positive benefit of 1115 Waiver on children in his area
  • The uninsured rate is still too high –  1 million kids and 3 million adults in Texas
  • Quality of care is as important as quantity
  • We should increase reimbursement rate for Medicaid providers
  • Increase medical care provider education levels
  • Continue to increase MHMR funds
  • Expand Medicaid up to 200% of poverty
  • Improve efficiency of medical homes

Mary Del Peterson – Driscoll Children’s Hospital

  • 70% of patients are on Medicaid
  • Major focus of the hospital has been decreasing pre-term birth rates
  • Children’s hospitals and health plans are safety nets that serve children across the state
  • Payment rates need to increase
  • CMS’s metrics for projects are based on older adults and not on children and pregnant women who are the majority of Medicaid patients

Regina Rogoff – People’s Community Clinic

  • People’s Community Clinic provides high quality healthcare for Medicaid patients
  • Supports the renewal of the waiver
  • Coverage needs to be expanded

Nicole Seeger (Seeker) – National MS Society

  • Overall employment rate for people with MS is 30-45%
  • MS is one of most expensive chronic illness
  • Urge Texas to maximize federal funds by renewing waiver and providing more coverage

Hugh Simmons – Austin Travis County Integral Care

  • Fully supports efforts to renew 1115 waiver as they have made wonderful progress and would benefit from more time
  • 11 Projects undertaken focus on behavioral health giving better care

Tom Wadkins – March of Dimes

  • March of Dimes works to prevent birth defects
  • 1115 is beneficial to this goal and should be extended
  • We still have too many uninsured women
  • Access to preconception and pre-natal care are necessary and save tax dollars long term

Sarah Cook – Central Health Travis County

  • 1115 waiver has accomplished a lot
  • Public funding equity problem must be solved for entities that supply their own IGT
  • Projects are building infrastructure for Travis County
  • Coverage should be expanded to low income Texans
  • Delivery system is fragmented without establishing systems of care
  • Data sharing should be rewarded

Maureen Milligan – Teaching Hospitals of Texas

  • Support continuing DRSIP and increasing UC funding
  • Waivers have been successful, but we need more time to recognize successes
  • Waiver has triggered unparalleled level of collaboration and innovation especially in behavioral health
  • For essential safety net providers, they should have continued access to UC funding

Laura Guerra Cardus – Children’s Defense Fund

  • Support renewing 1115 waiver
  • Also ask to include coverage expansion in negotiations for renewal
  • Without renewal, a reduction to waiver uncompensated care funds should be expected
  • HHSC should educate Governor and other policy makers about consequences if we lose 1115 Waiver

Bee Morehead – Texas Impact

  • Coverage expansion needs to be part of Waiver conversation
  • Waiver fills gaps, but it cannot be used as substitute for expansion
  • Agency could quantify what Texas misses out on without expansion

Anne Dunkelberg – Center for Public Policy Priorities

  • Appreciate work on waiver, but we support further improvements
  • Simplification is important
  • Best Practices should be built into all Medicaid models
  • Best outcome for Texas with respect to waiver is 1115 renewal paired with expanded coverage

Susan Murphree – Disability Rights of Texas

  • Support renewal of waiver
  • Continue to expand on consumer assistance for individuals seeking coverage by continuing to look at Ombudsman services available
  • We should maximize federal funding