COMMONWEALTH CARE ALLIANCE The Case for Primary Care Redesign and Enhancement as the Critical Strategy to Improve Care and Manage Costs © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information Alliance for Health Reform Briefing August 11, 2011 Lois Simon, M.P.H. Co-Founder and Chief Operating Officer

What is Commonwealth Care Alliance? Commonwealth Care Alliance is a Massachusetts, state-wide, not-for-profit, consumer governed prepaid care delivery system.  Fully Integrated Dual Eligible Medicare Advantage Special Needs Plan  ACO prototype  Focuses exclusively on the care of Medicare and Medicaid’s most complex and expensive beneficiaries  Relies on Medicare and Medicaid risk adjusted premium to redesign care with a focus on investment in primary care  Care Model - enhanced primary care and care coordination capabilities through deployment of multi-disciplinary Primary Care Teams 2 © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

3 Commonwealth Care Alliance Programs Senior Care Options Program: Medicaid Only and Dual Eligible Elders  $135M Blended Medicare/Medicaid “Risk Adjusted Premiums”  Dual and Medicaid Only seniors (Avg. RS = 1.72) ■ 69% nursing home certifiable - Avg. RS 1.98 ■ 64% primary language other than English ■ 57% with diabetes, 18% with CHF  25 primary care sites with integrated multidisciplinary teams RN/NP/SW ■ $16.1M increase in primary care expenditures over FFS Medicare, in ■ 82RN/NPs, 34SW/BH/PTs in practices, not there in Medicaid Programs for Chronically Ill Individuals with Complex Care Needs  2300 Medicaid and Connector eligible individuals with complex care needs (CCN). ■ 6 NP’s, 2 behavioral health clinicians, 11 community health workers integrated into 10 primary care practices – for complex care needs members.  300 Medicaid and dual eligible individuals with Severe Physical Disabilities.  $45M Risk Adjusted Medicaid and “Connector” premiums (both patient populations). *Jencks et al NEJM, Vol. 360: pp , 2009 ***JEN Associates study for MassHealth © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

Primary Care Redesign Elements Comprehensive (often home based) multidisciplinary assessments, replace typical physician “history and physical”. Individualized care plans, resource allocations, monitoring and modulating by the clinical teams for long term care, durable medical equipment, behavioral health services, replaces impersonal “rule based” benefits. Primary care team comprised of licensed personnel and paraprofessionals; team required to go beyond purely medical services to address a broad array of psycho-social and poverty alleviation issues. Clinical team empowerment to “order and authorize” all services, replaces inefficient supplications to a distant Medicaid or behavioral health carve out bureaucracies for “approval”. Elastic NP home response capability, to assess and manage new problems, replaces the Ambulance and ED. For those with physical disabilities– integrated durable medical equipment clinical assessment and management, replaces distant prior approval processes and months of delay. For those in need of behavioral health service, integrated behavioral health clinician assessment, individualized care plan development, implementation and management replaces inaccessible “vanilla BH carve out options”. 24/7 clinical availability and continuity management replaces “going it alone”. Web based EMR support replaces total absence of clinical information transfer capabilities; serves as critical communication vehicle to support very comprehensive interdisciplinary teamwork. © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information 4

TimeRisk Score Risk Adjusted Hospital Days per 1000 CCA: Nursing Home Certifiable (NHC) ,634 CCA: Ambulatory Medicare FFS: Dual Eligible Hospital Utilization is Markedly Lower Than Comparable Medicare FFS 5 Commonwealth Care Alliance NHC hospital utilization is 62% of Dual Eligible Medicare FFS Commonwealth Care Alliance Ambulatory hospital utilization is 20% of Dual Eligible Medicare FFS *Lewin Associates study 2010/SNP Alliance © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

For CCA’s Nursing Home Certifiable (NHC) enrolled elders living in the community, fewer become long term Nursing Home residents: 46% of Medicaid’s FFS Experience for a comparable population CCA NHC (2010) Medicaid FFS (2005) * % Reduction Annual nursing facility placement as a % of NHC community living members 1.7%3.3%46% 6 NHC: meeting Medicaid’s Nursing Home Certifiable criteria * JEN Associates, 2009 © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

Enhanced Primary Care: Central to the CCA Model of Care Nursing Home Certifiable Enrollees Ambulatory Enrollees Multidisciplinary physician/nurse practitioner/social worker team visits per enrollee per year (2010) Dual Eligible Other Medicare Beneficiaries FFS Avg. primary care visits/Medicare beneficiary/ per year ( ) 3.7*6.7** *Medicaid/SCO Procurement Document **MedPac Medicare Beneficiary file analysis 2006 © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

Bending of the “Cost Curve” Commonwealth Care Alliance Timeframe Nursing Home Certifiable (NHC) Enrollees Ambulatory Enrollees Average annual medical expense increase %2.6%* 8 Medicare FFSTimeframe Average annual Medicare medical expense increase** % * period due to insufficient enrollment in 2004 **NHE Fact Sheet © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information

Quality Metrics Commonwealth Care Alliance  Overall Plan Rating: (4 Stars)  Health Plan Rating (Part C): (4 Stars) Staying Healthy: Screenings, Tests & Vaccines Managing Chronic Conditions Rating of Health Plan Responsiveness & Care Health Plan Member Complaints & Appeals Health Plan’s Telephone Customer Service Drug Plan Rating (P art D): (4.5 Stars) Drug Plan Customer Service Drug Plan Member Complaints, Members Who Choose to Leave, and Medicare Audit Findings Member Experience with Drug Plan Drug Pricing and Patient Safety Medicare Star Ratings - Over 80% of Medicare Advantage plans score 3.5 Stars or below © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information 9

10 The Calculus is Simple © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information + + = Reductions in more costly services (hospital and institutional care) Prudent and creative provision of community based supports/long term care Increased investment in primary care (Teams) Medicare and Medicaid Risk Adjusted premium to redesign care

What is Needed to Achieve These Results? Program and financing models that enable creative approaches to care and that are integrative and comprehensive – primary, acute, behavioral, pharmacy and long term care. Federal/state collaboration to promote integrated policy, financing and operations. Appropriate risk adjusted reimbursement for individuals with complex care needs. Public policy that promotes collaborative models of care at the provider level – not competitive. Recognition that individuals who are Medicaid-only and dually eligible for Medicaid and Medicare are clinically indistinguishable. More opportunities for innovation and shared learning…. © 2011 Commonwealth Care Alliance, Inc. Confidential & Proprietary Information 11