DataBrief: Did you know… DataBrief Series ● January 2012 ● No. 26 Dual Eligibles, Chronic Conditions, and Functional Impairment By Age Group In 2009, 29%

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DataBrief: Did you know… DataBrief Series ● January 2012 ● No. 26 Dual Eligibles, Chronic Conditions, and Functional Impairment By Age Group In 2009, 29% of dual eligibles under age 65 and 35% of duals age 65 and over had both functional impairment and chronic conditions?

Duals with Chronic Conditions and Functional Impairment By Age Group “Dual eligibles” are low-income individuals who are eligible for both Medicare and Medicaid benefits. They are often in poor health and among the most costly patients to both programs. 1 Most beneficiaries qualify for Medicare at the age of 65, though some younger people also qualify if they have disabilities, end-stage renal disease, or amyotrophic lateral sclerosis. 2 If these individuals fall below certain income and asset limits, they can also qualify for Medicaid. 3 In 2009, 41% of duals were under age 65, compared to 10% of Medicare-only beneficiaries. Dual eligibles have higher rates of chronic conditions than their Medicare-only counterparts. In particular, they have higher rates of mental illness and cognitive impairment than Medicare-only beneficiaries. 1 In addition to chronic conditions, they more often have functional impairment and require long-term services and supports (LTSS) to assist with daily activities such as eating, bathing, and dressing. 4 These factors make duals a complex population to care for. In 2009, 33% of duals of all age groups had both chronic conditions and functional impairment. This varied by age group, reflecting the diverse care needs of this population. 4 1 Kaiser Family Foundation. Chronic Disease and Co-Morbidity Among Dual Eligibles: Implications for Patterns of Medicaid and Medicare Service Use and Spending. July, Accessed September 29, 2011 at: 2 Social Security Administration Red Book: Overview of Our Disability Programs. Accessed September 29, 2011 at: disability.htm. Examples of disabling conditions include chronic heart failure, chronic kidney failure, Down Syndrome, severe cancers and other severe illnesses that typically cause a person to be unable to work. 3 The SCAN Foundation. DataBrief No. 11: Eligibility Pathways for Dual Eligibles Accessed November 15, 2011 at: 4 Avalere Health, LLC. Analysis of the 2009 Medicare Current Beneficiary Survey, Access to Care File. DataBrief (2012) ● No. 26 Page 2

Dual Eligibles Are a Diverse Population with Differing Long-Term Services and Supports Needs DataBrief (2012) ● No. 26 Page 3 Dual Eligibles by Age Group, Number of Chronic Conditions, and Functional Impairment, N = 3,279,733 duals age <65, 2,140,048 duals age 65-74, 1,692,792 duals age and 942,033 duals age 85+ Note: Totals may not sum to 100% because duals with functional impairment only are not shown in this chart; among all duals, 1% have functional impairment only. Among the age groups, 1.1% of <65, 0.44% of 65-74, 0.19% of 75-84, and 3.34% of 85+ duals had functional impairment only. Also, 4% of dual eligibles under age 65 have neither chronic conditions nor functional impairment as defined in this analysis, but may have qualified for Medicare due to a condition not included in the current definition of chronic disease (e.g., end stage renal disease or amyotrophic lateral sclerosis).

About the data: Analytics powered by Avalere Health LLC A Clear Policy Connection Dual eligibles across all age groups have high rates of both chronic conditions and functional impairment and may require both medical services and LTSS to meet their care needs. 1 Experts agree that the coordination of medical care and LTSS could help improve duals’ quality of life and reduce expenditures for Medicare and Medicaid. However, this population is very diverse. For example, younger duals with functional impairment and chronic conditions may have significantly different preferences for how they receive LTSS than seniors. 2 Section 2602 of the Affordable Care Act created the Medicare-Medicaid Coordination Office (MMCO), responsible for coordinating Medicare and Medicaid benefits to improve quality of care for this population. 3 In April 2011, the MMCO awarded contracts to 15 states to develop new models of care for duals that integrate primary care, acute care and behavioral health services, as well as LTSS. For care models targeting dual eligibles to significantly impact health outcomes and reduce costs, they must go beyond a disease-centered focus and address functional impairment in a person-centered manner. The MMCO opportunity provides states a platform from which to accomplish this objective. This analysis is based on the 2009 Medicare Current Beneficiary Survey (MCBS) Access to Care file, an annual, longitudinal survey of a representative sample of Medicare beneficiaries enrolled for the full year. The MCBS collects information on Medicaid eligibility, chronic conditions, and functional impairment. In this analysis, individuals who either self-reported that they had Medicaid coverage or who were identified by the Centers for Medicare and Medicaid Services as having Medicaid coverage were considered to be dual eligibles. Individuals who indicated that they received help or standby assistance with one or more Activities of Daily Living (ADLs) and/or three or more Instrumental Activities of Daily Living (IADLs) were considered to have functional impairment. This analysis included respondents residing in the community and in institutions. Individuals who indicated that they had ever been diagnosed with any of the following conditions were considered to have a chronic condition: arthritis, Alzheimer’s Disease, broken hip, cancer (excluding skin), congestive heart failure, depression, diabetes, hypertension, mental illnesses (excluding depression), myocardial infarction and other heart conditions, osteoporosis, Parkinson’s Disease, pulmonary diseases such as emphysema, asthma and Chronic Obstructive Pulmonary Disease, and stroke. This analysis excludes Medicare beneficiaries who enrolled or died during DataBrief (2012) ● No. 26 Page 4 1 Avalere Health, LLC. Analysis of the 2009 MCBS Access to Care file. 2 Kaiser Family Foundation. Chronic Disease and Co-Morbidity Among Dual Eligibles: Implications for Patterns of Medicaid and Medicare Service Use and Spending. July, Accessed September 29, 2011 at: 3 Centers for Medicare and Medicaid Services. “About the Medicare-Medicaid Coordination Office.” September Accessed January 17, 2012 at: