“Reaching across Arizona to provide comprehensive quality health care for those in need” AHCCCS Payment Modernization Update June 26, Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

“Reaching across Arizona to provide comprehensive quality health care for those in need” Payment Modernization Mission  To leverage the Agency’s managed care model toward value based health care systems where patients’ experience and population health are improved, per-capita health care cost is reduced through aligned incentives with managed care organization and provider partners, and there is a commitment to continuous improvement and learning. 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 2

“Reaching across Arizona to provide comprehensive quality health care for those in need” Learning Organization  Other States- Arkansas Episodes/McKinsey  Health Plan Discussions  ACO’s- BHN, Arizona Connected Care, Arizona Care Network, Commonwealth Primary Care  Medicare Initiatives-Bundled Payment Pilots, Readmissions, PQRS, e Prescribe, etc. 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 3

“Reaching across Arizona to provide comprehensive quality health care for those in need” Payment Changes in Progress  ALTCS Pilot  Acute 5% Shared Savings  Episodes of Care Analysis-Increase Transparency, Identify Variation, etc.  E Prescribe- Incentives to Increase Participation 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 4

“Reaching across Arizona to provide comprehensive quality health care for those in need” Transparency  CMS Initiatives/ Media Reports  Participation in Catalyst for Payment Reform- Focus on Quality & Cost Transparency, Issues State “Report Cards”  Report to the Legislature on current Charge Master reporting, Costs vs. Charges, Examples from Other States  Legislation Requiring Provider Transparency 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 5

“Reaching across Arizona to provide comprehensive quality health care for those in need” Payment Modernization Plan  To be Published by October 1, 2013  Assessment of Current System  Framework Including Stakeholder Input  2013 Initiatives  2014 Strategies 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System 6