State Coverage Initiatives
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In this Issue:

1. SCI Summer Workshop: States Compare Notes on Coverage Strategies
2. SCI Co-Funds New Brief on Dirigo Health Reform Act
3. SCI and Rutgers Release New Medicare Report and Will Hold State
Meeting This Fall
4. New Briefs Synthesize Research on Coverage Issues
5. SHADAC Releases Chartbook of Health Care Access Indicators for States
6. AcademyHealth Annual Research Meeting Informs State Policymaking
7. SCI Recruiting New Associate
8. Coming Soon from SCI
9. Reports of Interest


1. SCI Summer Workshop: States Compare Notes
on Coverage Strategies

The State Coverage Initiatives program recently hosted a meeting for nearly 100 officials from 38 states, who gathered to learn how states are pressing forward with coverage expansions in the midst of tight economies. The meeting, which took place in Chicago on June 28-29, addressed many timely issues relevant to states, including strategies for partnering with the private sector, how to use state-conducted research to inform policymaking, approaches to consumer-driven health care, and recent experiences
with scaled-back benefits packages.

“We’ve all learned that keeping coverage at the forefront is not just about universal coverage,” said Alan Weil, who chairs SCI’s national advisory committee. “It’s also about making small improvements when you can—and that’s something that’s different from 12 years ago.” Weil is currently the director of the Assessing the New Federalism Project at the Urban Institute; he will become the new executive director of The National Academy for State Health Policy this fall.

Another trend that has emerged over the past decade is an increasing interest among the states in partnering with the private sector to expand coverage—whether through developing premium-assistance programs, subsidizing reinsurance mechanisms, or engaging in public pool buy-ins. “More and more, there is a recognition that many of the uninsured are employed,” said Lynn Zehnder, director of health and welfare plans at Sears, Roebuck, and Company.

A Look at the Uninsured through an Employer’s Lens

For that reason, some large employers have begun to come together to address the uninsured from a private-sector perspective. “The employer-based system seems inherently more promising than a government alternative—or so our employees tell us,” said Zehnder.

At the meeting, Zehnder described Sears’ collaboration with 50 Fortune 500 employers to provide access to health care for the companies’ workers and retirees who are ineligible for coverage, such as part-time employees and pre-65 retirees. The group of employers, called the “Affordable Solutions Coalition,” is working together to develop unsubsidized health care at a lower cost than would otherwise be available to employees
through the individual market.

In conjunction with 28 large employers, Sears is also working on another initiative—“Care Focused Purchasing”—which is intended to provide consumers with quality and efficiency data about hospitals and physicians. Currently, the initiative collectively represents more than 2 million enrolled health plan members.

The coalition hopes to draw from their employers’ self-insured data and their carriers’ books of business to create a consumer data repository. At this point, the effort is in its early stages, but Zehnder is excited about its potential. “We have to be sure that if we put measures out there, we can back them up with credible data.”

Zehnder said she would also like to acquire data from states and partner with them in this effort. “We’re not looking at this as proprietary,” she said. “States will have access to the data in our warehouse.”

States Seek Solutions that Build on ESI

The meeting also explored how states are looking to build on employer-sponsored insurance in new ways. For example, Arizona is one of several states using a subsidized reinsurance program to help support uninsured small businesses and their employees. Arizona’s Health Care Group (HCG) contracts with carriers to offer health insurance to small firms and self-employed individuals and reinsures them for that coverage. To protect the program against adverse selection, HCG requires high employee participation
for groups to qualify. However, there are no income criteria for participating employees, and no employer contribution is required.

According to Anthony Rodgers, director of Arizona’s Medicaid and State Children’s Health Insurance Program, the state wanted to use the program to address increasing premiums and the decrease in coverage that resulted from them. “We needed to tackle this issue or we feared we’d have a state divided into ‘haves’ and ‘have-nots,’ or with a large number of people in public programs who could never afford other coverage,” he said. In addition, an initiative that targeted the small-group market seemed a logical choice, given that 93 percent of Arizona’s businesses are small ones. As of June 2004, HCG covered 3,900 small groups, as well as a school system and two towns.

More Meeting Content Available Online

The meeting explored many other coverage efforts and health policy issues from the states’ perspective. Representatives from Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Utah and West Virginia described their innovative public and private programs and the lessons they learned by designing and implementing them. The workshop also included expert analyses of health savings accounts, health care consumerism, and premium-assistance programs.

To access this information through speaker slides and workshop Q & A, please visit: statecoverage.net/meetings.htm.


2. SCI Co-Funds New Brief on Dirigo Health Reform Act

The National Academy for State Health Policy has written a brief that provides an update on the implementation status of Maine’s innovative health reform effort, titled, “Dirigo Health Reform Act: Addressing Health Care Costs, Quality, and Access in Maine”. The brief was financed through grants from SCI and The Commonwealth Fund to the Maine Governor’s Office of Health Policy and Finance.

The report provides an overview of the Dirigo Health Reform Act, with sections dedicated to three key areas: health care costs, quality, and access. State policymakers who are engaged in coverage expansion efforts may be particularly interested in the section on access, which explores Dirigo’s proposed financing, eligibility, benefits, cost sharing, and costs to employers.

Maine officials currently are reviewing a bid from Anthem Blue Cross and Blue Shield to run the initiative. Dirigo is scheduled to take effect this summer. State officials hope to enroll 31,000 previously uninsured Mainers in the first year and cover all residents by 2009.

As noted in the April 2004 St@teside, SCI is funding the design and pricing of the plan’s benefit package and subsidy levels, an analysis of current health care spending in Maine, the creation and pricing of the “savings offset payment,” and dissemination efforts.


3. SCI and Rutgers Release New Medicare Report
and Will Hold State Meeting This Fall

SCI, in collaboration with The Rutgers Center for State Health Policy, will host an invitational meeting on October 7 - 8, 2004, to help states navigate the Medicare prescription drug benefit. The meeting will explore topics that were identified during a recent teleconference convened by Rutgers and SCI to assess the needs of state officials in implementing Medicare Part D.

The meeting will be held in Philadelphia, and is funded by The Robert Wood Johnson Foundation (through SCI and the Center for Health Care Strategies, the Agency for Healthcare Research and Quality, and The Commonwealth Fund.

As states prepare to implement the new benefit, some of the issues they are grappling with are how to:

  • Coordinate existing state programs with the benefit;
  • Implement the Medicare Prescription Drug Discount Card Program;
  • Assess the potential fiscal and structural impacts of the benefit on existing state programs such as Medicaid and State Pharmaceutical Assistance Programs; and
  • Coordinate coverage for individuals who are eligible for both Medicare and Medicaid.

In addition to the meeting, SCI addresses some of these issues through a new report, “States Issues and Concerns with Implementation of Medicare Part D Prescription Drug Coverage--Summary of an Audio-Conference with States.” The report elaborates on the topics discussed during the teleconference and serve as an introduction to the themes that will be covered at the October meeting.


4. New Briefs Synthesize Research on Coverage Issues

Recently, The Robert Wood Johnson Foundation's The Synthesis Project released technical reports synthesizing research about crowd-out, state reforms to the individual health insurance market, and geographic variations in Medicare spending. The syntheses, titled, "Public Program Crowd-Out of Private Coverage: What Are the Issues?", "Expanding the Individual Health Insurance Market: Lessons from the State Reforms of the 1990s," and "Geographic Variation in Medicare Per Capita Spending: Should Policy-Makers be Concerned?" are intended to translate research into lessons for health care policymakers. These and other publications can be found at rwjf.org/publications/synthesis/index.html.

The syntheses are the latest briefs and reports to come out of The Synthesis Project. By synthesizing what is known about health policy issues, while weighing the strength of the evidence and exposing gaps in current knowledge, the project provides reliable information about complex policy issues. Researchers are paired with policy analysts to produce the syntheses, thus providing new insights from research results. Members of the project's advisory group help guide the project and participate in the development and review of products.


5. SHADAC Releases Chartbook of Health Care Access
Indicators for States

The University of Minnesota's State Health Access Data Assistance Center (SHADAC) has recently released the State Health Access Profile, which is a preliminary effort to develop a comprehensive profile of state health care access. The profile, which was developed by SHADAC researchers, goes beyond indicators of health insurance coverage to measure the state resources that enable access to health care for residents.

SHADAC is an initiative funded by The Robert Wood Johnson Foundation. It works to develop an understanding of the various factors associated with access to health care in the states. Although health insurance is one of these factors, a focus on coverage alone misses key differences across states in terms of public program characteristics, the availability of safety-net services, employer markets, and system-wide health care resources.

While many sources of data on health care access exist, the State Health Access Profile includes 14 measures that:

(1) Have underpinnings in the theoretical or empirical literature;
(2) Are readily available in the 50 states and the District of Columbia; and
(3) Are likely to be provided consistently in the future.

Along with coverage rates, the SHADAC State Health Access Profile includes measures of employer health insurance offerings, Medicaid enrollment for low-income populations, community resources such as hospitals and providers, and routine access to health care. The Profile also includes indicators of hospital uncompensated care spending and hospital ownership.

The SHADAC Health Access Profile is available for all states and the District of Colombia at shadac.org/analysis/stateprofiles.asp. If you have questions or comments, please send your input to nobbe002@umn.edu.


6. AcademyHealth Annual Research Meeting Informs
State Policymaking

On June 6-8, AcademyHealth’s 2004 Annual Research Meeting (ARM) brought together more than 1,700 health services researchers and policymakers in San Diego. The meeting highlighted significant research across a wide variety of topics, ranging from health information technology to cost-containment to the role of health services research in improving our nation’s health care system. In addition, several forums were relevant to state health policymakers.


At this year’s ARM, the State Health Policy Interest Group, one of several new AcademyHealth Interest Groups, convened for the first time. This group provides a forum for health policy analysts, researchers, and policymakers to network and discuss state-level research, research related to state health policy, and other health services research from a state health policy perspective. To learn more about the interest group or sign up for its Web-based discussion forum, please visit: academyhealth.org/membership/interestgroups.htm or e-mail Kristine Metter, AcademyHealth director of membership, at Kristine.Metter@academyhealth.org.

A number of ARM breakout sessions addressed issues of interest to state officials, including the uninsured, the Medicare drug benefit, and how to translate research into state health policy. Slides from most sessions, and Kaiser Webcasts of selected breakouts, are available at academyhealth.org/arm/agenda. For a substantive summary of the meeting, visit academyhealth.org/arm/summary.htm.

In one session, titled, "View from the State Legislature: Translating Research into Policy," three present or former state legislators discussed how health services research can affect the legislative decision-making process. To produce relevant results, researchers must start developing answers years before being asked health policy questions, said Mitch Greenlick, a freshman member of the Oregon State House of Representatives, and past chairman of public health and preventive medicine at Oregon Health & Science University's School of Medicine.

Bruce Goldberg, director of the Office of Oregon Health Policy and Research, the agency responsible for providing data to the state’s legislature, stressed the importance of giving legislators state-specific information. "All policy is parochial," he said. Although legislators like to know what other states are doing, he continued, ultimately they want information relevant to their state to make the final decision.

According to James Tallon of the United Hospital Fund of New York, researchers must remember that framing the right questions is as critical as generating results. "Research is commonly thought of as being about findings, observations, and analyses," he said, "but it also frames questions and creates context—which is equally important."


7. SCI Recruiting New Associate

We are hiring a new associate at the State Coverage Initiatives program. The job description is available at statecoverage.net/openings.htm.

Please forward the information about the position to anyone who you think might be interested.


8. Coming Soon from SCI

Check in with statecoverage.net for updates on SCI’s latest publications. We have several issue briefs in the pipeline, including those focusing on:

  • States’ experiences with scaled-back benefits packages in public and private markets (Isabel Friedenzohn, SCI);
  • The Role of Reinsurance in State Efforts to Expand Coverage(Deborah Chollet, Mathematica Policy Research);
  • Health Savings Accounts: Issues and Implementation Decisions for States (Mila Kofman, Georgetown University); and
  • New ERISA developments and their implications for states (Pat Butler, Consultant).

Look for these products this summer and fall.


9. Reports of Interest

The following are the most recently released reports on coverage, most of which are additions to SCI's database of state reports. For a complete list of available reports, visit the State Reports Database.

Dirigo Health Reform Act: Addressing Health Care Costs, Quality, and Access in Maine
National Academy for State Health Policy
June 2004

Facing the Fiscal Crises in State Government: National Problem; National Responsibility
John F. Kennedy School of Government, Harvard University
June 2004

The Impact of Recent Changes in Health Care Coverage for Low-Income People: A First Look at the Research Following Changes in Oregon’s Medicaid Program
Kaiser Family Foundation
June 2004

Unintended Consequences: An Update on Consumer Medical Debt
The Commonwealth Fund
June 2004

Health Care Costs and Instability of Insurance: Impact on Patients’ Experience with Care and Medical Bills
The Commonwealth Fund
June 2004

One in Three: Non-Elderly Americans without Health Insurance, 2002-2003
Families USA
June 2004

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