1. CYE 15 Payment Reform Initiatives Acute Care Continue CYE 14 model with 1% capitation withhold and the following changes: – Minimum 10% of the value of total payments under all contracts with providers must be governed by shared- savings arrangements – NO sub-cap contracts counted – AHCCCS considering limiting portion of shared savings with owner systems – 33% of total maximum? – AHCCCS considering adding geographic requirements – e.g. 80% maximum in any one GSA for multiple GSA plans?

2. CYE 15 Payment Reform Initiatives ALTCS EPD Implement initiative similar to Acute Care CYE 14 model: – Minimum 5% of the value of total payments under all contracts with providers must be governed by shared- savings arrangements – NO sub-cap contracts counted Minimum 2% of total Acute Care service payments Minimum 2% of total LTC service payments Remaining 3% of total spend at MCO discretion

3. CYE 15 Payment Reform Initiatives ALTCS EPD – Minimum 1.5% of Medicare DSNP total payments under all contracts with providers must be governed by shared-savings arrangements – NO sub-cap contracts counted – 1% capitation withhold Distribution based on existing performance measures Would prefer mix of Acute Care and LTC services Input on performance measures welcome

4. CYE 15 Payment Reform Initiatives ALTCS DDD LTC Services ‒DES/DDD submit plan regarding value-based purchasing to AHCCCS by April 2015 for CYE 16 implementation Acute Care Services ‒Implement initiative similar to Acute Care CYE 14 model: Minimum 5% of the value of total payments under all contracts with providers must be governed by shared- savings arrangements – NO sub-cap contracts counted Consider 1% capitation withhold Input on performance measures welcome

5. CYE 15 Payment Reform Initiatives CRS Implement initiative similar to Acute Care CYE 14 model: – Minimum 5% of the value of total payments under all contracts with providers must be governed by shared- savings arrangements – NO sub-cap contracts/block purchasing counted – No capitation withhold due to single Contractor – Consider sanction for non-compliance

6. CYE 15 Payment Reform Initiatives BHS Implement initiative for integrated RBHA – Minimum 1% of the value of total payments under all contracts with providers must be governed by shared- savings arrangements – NO sub-cap contracts/block purchasing counted – No capitation withhold due to single Integrated RBHA – Consider sanction for non-compliance