1. “Reaching across Arizona to provide comprehensive quality health care for those in need” Our first care is your health care Arizona Health Care Cost Containment System AHCCCS Update Meeting – Systems Update – April 2014

2. “Reaching across Arizona to provide comprehensive quality health care for those in need” Our first care is your health care Arizona Health Care Cost Containment System 2 Cost Sharing (Copays)  Minor changes implemented 1/1/14 – No longer assigning mandatory copay levels 40 and 45 and elimination of copays for well visit codes; Minor changes to Policy 431  Addition modifications under evaluation and planned for 10/1/2014: Populations currently subject to mandatory and optional (nominal) copayments; Populations exempt from copayments; Amounts for applicable copayments; And services for which copayment apply are planned.

3. “Reaching across Arizona to provide comprehensive quality health care for those in need” Our first care is your health care Arizona Health Care Cost Containment System 3 Data Exchange/Blind Spots AHCCCS will manage an ongoing exchange of encounter and claims data to Contractors in order to eliminate “blind spots” for services provided to a member shared by multiple programs (In compliance with Federal privacy regulations) Contractors should use this information to develop short- and long-term strategies to improve care coordination Ongoing – provide at least quarterly; First 1/4ly report for January – March 2014 will be run and distributed in April

4. “Reaching across Arizona to provide comprehensive quality health care for those in need” Data Exchange/Blind Spots (cont.)  Planned additions to the Data Exchange include the integration of - Medicare Paid Claims Data (Part D; D-SNP; Medicare FFS) – In progress  Technical Workgroup for this project held on 2/5/14; reviewed layout, questions, and exchange matrix  Addition of a requirement for 3 year history for all Acute and RBHA contractors who did not already receive them for a GSA or in whole; in progress Our first care is your health care Arizona Health Care Cost Containment System 4

5. “Reaching across Arizona to provide comprehensive quality health care for those in need” Our first care is your health care Arizona Health Care Cost Containment System 5 DRG’s  On schedule for 10/1/2014 (based upon Dates of Discharge) Implementation  DRG Project Webpage – “AHCCCS Transition to DRG- based Payment” http://azahcccs.gov/commercial/ProviderBilling/DRGBasedPayments.aspx http://azahcccs.gov/commercial/ProviderBilling/DRGBasedPayments.aspx  Proposed Final Rule currently available for public comment/review http://www.azahcccs.gov/reporting/Downloads/ProposedStateRules/NOPRDRG0 3072014.pdf http://www.azahcccs.gov/reporting/Downloads/ProposedStateRules/NOPRDRG0 3072014.pdf

6. “Reaching across Arizona to provide comprehensive quality health care for those in need” DRG’s (cont.)  Technical Workgroup Formed for this project; Meeting on a regular basis; Meeting materials and key action items/discussion available at http://www.azahcccs.gov/commercial/EDIresources/EDITechnicalWorkgroups.as px http://www.azahcccs.gov/commercial/EDIresources/EDITechnicalWorkgroups.as px  Next Workgroup meeting Wednesday, April 16th  3 Key Forms of Project Documentation – AHCCCS Policy Document AHCCCS Rule AHCCCS DRG Calculator Our first care is your health care Arizona Health Care Cost Containment System 6

7. “Reaching across Arizona to provide comprehensive quality health care for those in need” DRG’s (cont.)  Finalizing all Policy decisions which will be shared with all Contractors as a component of the DRG Technical Workgroup  Call with 3M last week to finalize key decisions; confirm final DRG Calculator and respond to project survey  Testing 3M APR-DRG software  Contractors will be provided with and will be required to successfully execute a defined set of test scenarios Our first care is your health care Arizona Health Care Cost Containment System 7

8. “Reaching across Arizona to provide comprehensive quality health care for those in need” DRG’s (cont.)  Contractor monthly project Milestone Reporting began in February, 2014  Status Summary developed for publication to the web  DRG Effective Date – October 1, 2014 (IP Dates of Discharge) Our first care is your health care Arizona Health Care Cost Containment System 8

9. “Reaching across Arizona to provide comprehensive quality health care for those in need” DRG’s (cont.)  Current DRG Project Milestones: Complete Requirements and Design - In Progress - March 2014 Complete Coding – In Progress - May 2014 Internal Testing Begins - May 2014 Internal Testing Ends - July 2014 External Testing Begins (all plans/providers/ATR) - June 2014 System Implementation - September 2014 External Testing Ends (No earlier than) - September 2014 Our first care is your health care Arizona Health Care Cost Containment System 9

10. “Reaching across Arizona to provide comprehensive quality health care for those in need” ICD-10  The AHCCCS ICD10 Project impacted by Federal Legislation; waiting for specific direction from CMS as to timeframes and implementation requirement; more details and updates to come pending receipt of this direction  No impact to APR-DRG project timeframes Our first care is your health care Arizona Health 10

11. “Reaching across Arizona to provide comprehensive quality health care for those in need” ICD-10 (cont.)  Current AHCCCS ICD10 Project Milestones Requirements and Design Reference System - Completed Coding Reference Systems - Completed Requirements and Design All Other Systems – Completed Internal Testing Reference System - Completed Coding All other System Areas – Completed System Implementation Reference System – Completed Initial Reference Table Loads – Completed (validation of key policy impacts completed this week to be send out ASAP) Our first care is your health care Arizona Health Care Cost Containment System 11

12. “Reaching across Arizona to provide comprehensive quality health care for those in need” ICD-10 (cont.) ICD10 Reference Table Extracts for Contractors – Distribute this week Internal Testing All Other Systems – In Progress External Testing Began - January 2014 (with incremental begin dates as noted below)  837 Submissions (Claims/Encounters) - January 15 th 2014 – In Progress/supported ongoing  Claims/Encounters Editing and Results Reporting (End to End) – March 15 th 2014 – In Progress/supported ongoing  Reports – June 1 st 2014  ICD10/DRG Integrated End to End – June 1 st 2014 Our first care is your health care Arizona Health Care Cost Containment System 12

13. “Reaching across Arizona to provide comprehensive quality health care for those in need” ICD-10 (cont.)  System Implementation - September 2014  ICD10 Effective Date TBD (Professional and Outpatient dates of service; Inpatient dates of discharge)  External Testing Ends No earlier than September 2014  Status Summary developed for publication to the web  Contractor Milestone Reporting and Tracking ongoing (began in June 2013); “Thanks to all for your timely submissions” Our first care is your health care Arizona Health Care Cost Containment System 13

14. “Reaching across Arizona to provide comprehensive quality health care for those in need” ICD-10 (cont.) Contractors will be provided with and will be required to successfully execute a defined set of test scenarios likely during and in conjunction with the ICD10/DRG Integrated End to End testing timeframe  Webpage - http://azahcccs.gov/commercial/EDIresources/ICD10.aspx http://azahcccs.gov/commercial/EDIresources/ICD10.aspx Our first care is your health care Arizona Health Care Cost Containment System 14

15. “Reaching across Arizona to provide comprehensive quality health care for those in need” FQHC/RHC  FQHC/RHC Payment Alignment MCO’s will need to pay FQHC/RHC unique PPS rates for each “visit” (separate service not with same discipline)  Timeline October 1, 2014 implementation Provider registration letter and spreadsheet (will go out by May 2014, due by 8/15/14) Testing window for plans and providers (late July 2014 – early August 2014) Our first care is your health care Arizona Health Care Cost Containment System 15

16. “Reaching across Arizona to provide comprehensive quality health care for those in need” FQHC/RHC (cont.)  AHCCCS Proposal for FQHC/RHC Processing AHCCCS will establish a unique provider type for FQHCs and a unique provider type for RHCs; Provider types 29 and C2 AHCCCS is requesting that all FQHCs and RHCs register and obtain a unique AHCCCS Provider ID under these applicable provider types To facilitate this registration and AHCCCS claims processing, AHCCCS is requesting that FQHCs or RHCs have a unique NPI (not already associated with any other active AHCCCS Provider ID) to be on file and utilized for related claims submissions AHCCCS will provide a streamlined approach for provider registration Our first care is your health care Arizona Health Care Cost Containment System 16

17. “Reaching across Arizona to provide comprehensive quality health care for those in need” FQHC/RHC (cont.) FQHC and RHC claims will identify the unique NPI of the FQHC or RHC as the service/rendering provider FQHCs and RHCs can be reimbursed on same day for each “unique” visit, i.e. a separate service not within same discipline (e.g. dental and medical); no change from the current process FQHCs and RHCs will bill AHCCCS and its Contractors for each “unique” visit utilizing appropriate CPT Evaluation and Management codes and including all related services for the visit utilizing a 1500 claim format (standard practice for most facilities) FQHCs and RHCs will be paid an all inclusive "visit" rate per visit that will serve a full reimbursement for the individual visit regardless of other related services for the visit Our first care is your health care Arizona Health Care Cost Containment System 17

18. “Reaching across Arizona to provide comprehensive quality health care for those in need” FQHC/RHC (cont.) Visit payments will be paid associated with the billed E&M “visit” codes and any other related services will be valued at $0.00 AHCCCS will implement a unique Provider specific fee schedule (equivalent to the PPS rate) for each FQHC and RHC where visit E&M codes will reflect the appropriate per visit rate effective for the date of service and in which all other related service codes will reflect a rate of $0.00 (due to bundling under the per visit rate as noted above) Current FQHC Pharmacy (340B) billing will remain as is under the Pharmacy provider type, etc... and will not be impacted by this change Our first care is your health care Arizona Health Care Cost Containment System 18

19. “Reaching across Arizona to provide comprehensive quality health care for those in need” FQHC/RHC (cont.)  AHCCCS will continue to have a quarterly payment and reconciliation process but the amounts that are part of the quarterly payments will be updated to reflect that health plans will be paying considerably more to avoid recoupments as part of the reconciliation Our first care is your health care Arizona Health Care Cost Containment System 19

20. “Reaching across Arizona to provide comprehensive quality health care for those in need” PCP Rate Parity  Payment of new claims, and 4 month window for retro processing concluded 11/30/2013  AHCCCS is working with individual contractors to ensure that all encounters eligible for the PCP Rate Parity have been appropriately identified and reprocessed  AHCCCS will make quarterly cost-settlement payments to the Contractor based upon adjudicated/approved encounter data.  Contractors will be required to refund payments to AHCCCS for any reduced claim payments in the event that a provider is subsequently “decertified” for enhanced payments Our first care is your health care Arizona Health Care Cost Containment System 20

21. “Reaching across Arizona to provide comprehensive quality health care for those in need” PCP Rate Parity (cont.)  Contractors will receive an initial limited data (i.e. one month) cost-settlement report to allow for an initial test ASAP  First full cost-settlement report for PCP Rate Parity qualified encounters adjudicated/approved between 8/1/2013 and 12/31/2013 is in progress for distribution to Contractors no later than the week or April 21st  Please note, all valuation by AHCCCS reflects appropriate rates in effect for the encounter date of service (i.e. dates of service 1/1/14 and after will reflect the 1/1/14 PCP rates, etc…) Our first care is your health care Arizona Health Care Cost Containment System 21

22. “Reaching across Arizona to provide comprehensive quality health care for those in need” Security Audit  Reminder - First audit will be due June 1, 2014  Minor clarifications made to published policy in response to additional Contractor feedback made and distributed in January Our first care is your health care Arizona Health Care Cost Containment System 22

23. “Reaching across Arizona to provide comprehensive quality health care for those in need” AHCCCS >99 Encounter Lines  AHCCCS 999 UB Lines HIPAA compliance changes proposed for 1/1/2015  Will fully remediate the PMMIS system to expand the CRN by 1 additional digit Our first care is your health care Arizona Health Care Cost Containment System 23

24. “Reaching across Arizona to provide comprehensive quality health care for those in need” Other  Implemented new Maricopa RBHA and Integrated SMI Contractor 4/1/14 Our first care is your health care Arizona Health Care Cost Containment System 24