115 State Street
Montpelier , VT 05633
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SEN. M. JANE KITCHEL, CO-CHAIR
REP. STEVEN MAIER, CO-CHAIR
SEN. ANN CUMMINGS
SEN. DOUG RACINE
SEN. KEVIN MULLIN
REP. HARRY CHEN
REP. MARK LARSON
REP. FRANCIS MCFAUN
JOHN BLOOMER, JR.
WALTER FREED

 

 

STATE OF VERMONT

 

 
GENERAL ASSEMBLY
 
     
     
     

COMMISSION ON HEALTH CARE REFORM

MINUTES

Tuesday, May 20, 2008

State House, Room 10

Montpelier, VT

 

 

MEMBERS PRESENT:

SEN. M. JANE KITCHEL, CO-CHAIR, REP. STEVEN MAIER, CO-CHAIR, SEN. ANN CUMMINGS, SEN. KEVIN MULLIN, SEN. DOUG RACINE, REP. HARRY CHEN (via phone), REP. FRANCIS MCFAUN, JOHN BLOOMER, JR., REP. MARK LARSON

MEMBERS ABSENT:

WALTER FREED

Also Present:

Legislative and Joint Fiscal staff, members of the Administration, and the public.

Meeting Recorded:

Meeting recorded: CD HCRC 5/20/08, CD # 1, 2 & 3

Documents Distributed:

  • ESI and Catamount Health Program Premium Assistance Report
  • May 2008 Outreach to Graduating Seniors
  • FY 2009 Technical Processes for Health IT Funds (Preliminary Draft 5/20/08)
  • Letter to VITL and attachments, May 7, 2008
  • Vermont Involvement in Robert Wood Johnson Foundation State Health Access Reform Evaluations (SHARE)
  • Vermont Participation in AcademyHealth and the Commonwealth Fund Health Care Quality Improvement Institute
  • Blueprint Integrated Pilot Projects
  • Comparison of Commission Recommendations for 2008 Legislative Session with Final Legislative Action, May 20 2008
  • Responsibilities of the Commission on Health Care Reform: Memorandum from Jennifer Carbee
  • Health Care Reform Commission:  Summary Workplan 2008, Draft, 5/20/08
  • Healthcare Financing Study—notes from Steve Kappel
Witness List:
  • Betsy Forrest, OVHA
  • Susan Besio, Director of Health Care Reform Implementation
  • Craig Jones MD, Director of the Blueprint for Health
  • Jim Hester, Director of the Health Care Reform Commission
  • Jennifer Carbee, Legislative Council
  • Steve Kappel, Consultant to the Commission
   

 

1.        Convene, Review and Approve Dec. 4, 2007 Meeting Minutes       CD #1, TR. 2

Rep. Maier and Sen. Kitchel convened the Commission meeting at 1:35 PM. 

The Commission approved the minutes from Dec. 4, 2007.

2.        Implementation Updates                                                          CD #1, TR. 2 cont.

          a.        Enrollment Update                                                       Betsy Forrest

Document distributed:

  • ESI and Catamount Health Program Premium Assistance Report
  • May 2008 Outreach to Graduating Seniors

Betsy Forrest gave an update on applications and enrollment. They expect enrollment to keep increasing. VHAP and ESIA enrollment has crept up. ESIA is at about 90% of expected. Catamount Health with premium assistance added 600 in February, 600 more in March and 500 more in April. The pre-existing condition amnesty will also bring in some more people.

Discussion of the amnesty re pre-existing conditions: it will run from when the bill gets signed until November 1; and this includes those already enrolled. After that there is a 12-month waiting period, unless the applicant is rolling over coverage from another plan, within 63 days. However, remember that if a person enrolls in the chronic care management program (if there is a program for their condition) then there is no waiting period for coverage for the condition.

Discussion re low numbers for sign-ups for unsubsidized Catamount Health: the numbers are much lower than the projections; and some people are dropping out. Carriers are going to contact these drop-outs to find out why. The commissioners asked the carriers and the state to report any data re why people are not signing up for the full-cost program. (Premiums for a family plan are $13,224 a year; for an individual they are $4,716 a year, and for two-person plan they are $9,432 a year.) Commission asked for this for next HCRC meeting.

Outreach to graduating seniors:

Efforts are underway to encourage seniors to check out their health insurance options under Green Mountain Care before they graduate.   The state is also reaching out to college faculty and staff, state employees and the business community to encourage them to look into Green Mountain Care options before their child ages off their current health plan.

Colleges:  Public and private colleges have shown unprecedented support by allowing outside marketing efforts to occur directly to their seniors.  Champlain College, the University of Vermont, Middlebury, St. Michael’s, Johnson, Lyndon, Castleton and VTC have emailed information directly to about 6,250 seniors and 3,600 facility and staff.

State Employees: About 6,240 state employees have received an email encouraging them to check out health insurance options for their dependents.

Legislators:  An e-mail was sent to all state legislators asking them to include information about Green Mountain Care in their electronic or hard copy legislative updates or other articles they provide for local newsletters and newspapers.

Businesses: The Lake Champlain Chamber of Commerce has sent an email to 300 of their members from the restaurant and hotel industry knowing that it will reach employees who are students in the hospitality industry as well as a high number of overall employees who are uninsured.

Event marketing is also being utilized to create advertisement promotional throughout the month of May. 

BCBS’s own efforts to reach this cohort are currently underway with very targeted outreach to parents who have children about to age off their parents’ plans.

Rep. Maier noted that there are challenges re staff answering phones not fully prepared to answer parents’ questions; also issues re getting original birth certificate if needed.

          b.        Blueprint Enhanced Community Pilots

[postponed until later in the meeting]

          c.        Health IT Fund Implementation                  Susan Besio / Rep. Steven Maier

Documents distributed:

  • FY 2009 Technical Processes for Health IT Funds (Preliminary Draft 5/20/08)
  • Letter to VITL and attachments, May 7, 2008

Susan Besio went through the various steps and target dates in the proposed process for granting and monitoring the Health IT funds. She noted that this was a preliminary draft. [They have already revised it based on discussions with Jim Hester and a few legislators immediately following the Commission meeting.] VITL (Vermont Information Technology Leaders) will need to apply for these funds, as part of the process.

Rep. Steve Maier handed out and discussed copies of a May 7 letter sent to VITL, from Michael Smith (Secretary of Administration) and three legislators: Susan Bartlett, Chair of the Senate Appropriations Committee; Rep. Maier and Sen. Jane Kitchel (as co-chairs of the Health Care Reform Commission). The letter raised concerns and made suggestions re VITL’s structure and administrative capacity as the organization continues to expand rapidly.

Rep. Maier and Sen. Kitchel reported on their cordial discussion that followed with the VITL Board on May 14. VITL is already beginning to implement some of the letter’s recommendations.

Sen. Mullin expressed concern that other HCRC members were not consulted or informed about this letter before hearing about it in the press.

d.  Implementation of 2008 Legislative changes                                        Susan Besio

Very briefly, People are already working on the various elements. Many will become effective upon passage of the bill. Staff are working to get IT supports in place; preparing for premium changes in Catamount Health, etc.

e.  Overview of planned evaluations of health reform efforts                        Susan Besio

Documents distributed:

  • Vermont Involvement in Robert Wood Johnson Foundation State Health Access Reform Evaluations (SHARE)
  • Vermont Participation in AcademyHealth and the Commonwealth Fund Health Care Quality Improvement Institute

Susan Besio discussed these initiatives; Vermont is one of just a few states awarded these grants.

Back to:

          b.        Blueprint Enhanced Community Pilots                                     Craig Jones

Document distributed:                                                                                           CD 1, Tr. 3

  • Blueprint Integrated Pilot Projects

Craig Jones covered the following topics:

  • Sustainable transformation from pilots to programs: funding, programs, products, legislative acts. All relate to systems-based change.
  • Three pilots planned: St. Johnsbury area, Chittenden County area, and a third to be selected via RFP this summer. A lot of details for the plans for the integrated pilots are coming together.
  • Core of the pilots: patient-centered model: patient-centered medical home. National standards and scale. Re payment reform: financial incentives; good agreement on most of the details.
  • Model for health maintenance and prevention, as well as for chronic disease
  • The Vermont Health Information Platform (with VITL), key points in the Blueprint plan to expand the uses of health IT:

o       DocSite: a care support system, with many functions. Health maintenance and prevention visit plans.

o       EMRs

o       Models for using various health IT products in models for health and prevention

  • Model for health and prevention
  • St. Johnsbury community care team. Payers are sharing costs of the community care teams; we are mostly in agreement with payers re how to do this. Fairley robust structure at a local level; details being finalized now. Dpt. Of Health prevention specialist is also part of this—focusing on details at local level—direct link with care delivery people.
  • Data Management – Analysis  – Reporting
  • Blueprint plan for program evaluation and improvement
  • Proposed model for provider payment
  • Practice evaluation and quality improvement

3.        Ongoing Commission Responsibilities

a.   Review of 2008 Legislative Session                                                    Jim Hester

                                                                                                                 CD #2, Tr. 1

Document distributed:        

  • Comparison of Commission Recommendations for 2008 Legislative Session with Final Legislative Action, May 20 2008

This document is attached as Appendix A to these minutes.

Jim Hester reviewed the HCRC recommendations which were adopted Dec. 4, 2007 and discussed what happened with each recommendation in the legislative session. There were two especially challenging issues this past session:

  • Concerns re any action to control health care costs
  • And at the same time, must put into place some stepping stones—such as VITL, IT structure, wellness efforts
  • And all of this work was in the context of a shrinking and very tight state budget.

Commissioners suggested adding a third column to this report: for each recommendation / issue, list pressure points / disagreements / stumbling blocks, so that we can identify them and try to move forward.

A key element is payment reform.

b.  Review of mandated commission reports through 2010             

                                                                                            Jim Hester and Jennifer Carbee

Document distributed:

  • Responsibilities of the Commission on Health Care Reform: Memorandum from Jennifer Carbee

The full text of this document is attached as Appendix B to these minutes.

Jennifer Carbee reviewed the new and continuing responsibilities of the Commission, with especial focus on the new studies laid out in H.887.

From H.887, An Act Relating to Health Care Reform:

         Sec. 2 – Building Block Studies

The Commission should conduct studies to develop building blocks for health care reform, including:

o      Feasibility of community-based payment reform and integration of care,

o      Possibility of merging fragmented risk pools, and

o      Exploring health care financing options.

          These studies should identify federal and other barriers to progress in health care reform and determine how to position Vermont as first in line for federal health care reform

         Sec. 5 – Reduction in Catamount Health/VHAP Waiting Period

Upon receipt of approval from federal Centers for Medicare and Medicaid Services of amendment to waiver to reduce Catamount Health and VHAP waiting period from 12 months to six months, the Secretary of Administration has 60 days to make a recommendation to the Commission on whether to proceed with reducing the waiting period.  The Commission must then consider:

o      The availability of resources,

o      Issues surrounding implementation, and

o      Potential benefits to the health care system.

          The Commission must recommend to the Senate Committees on Health and Welfare and on Appropriations and to the House Committees on Health Care and on Appropriations whether to proceed with the waiting period reduction.

         Sec.  25 – E-Prescribing Study

The Commission director and VITL project review committee are directed to conduct a planning and feasibility study for a statewide e-prescriber program.

         Report due:  Commission director to report the group’s findings to the commission, the House Committee on Health Care, and the Senate Committee on Health and Welfare by January 15, 2009

From 2 V.S.A. § 903(b):

         Requires the Commission, no earlier than October 1, 2009, to evaluate the Catamount Health market to determine whether it is a cost-effective method of providing health care coverage to uninsured Vermonters, taking into consideration the rates and forms approved by BISHCA, the costs of administration and reserves, the amount of Catamount Health assistance to be provided to individuals, whether the Catamount Health assistance is sufficient to make Catamount Health affordable to those individuals, and the number of individuals for whom assistance is available given the appropriated amount.

From 2 V.S.A. § 902(a):

         From 2005 legislative interim through July 1, 2011, the Commission is required to:

o      Monitor the development, implementation, and ongoing operation of health care reform initiatives as defined in 3 V.S.A. § 2222a and the initiatives in Act 191 of the 2006 session;

o      Study areas of health care reform as required by the General Assembly; and

o      Receive input and make recommendations to the General Assembly regarding the long-term development of policies and programs designed to ensure that, by 2009, Vermont has an integrated system of care that provides all Vermonters access to affordable, high quality health care that is financed in a fair and equitable manner.

4.        Commission Studies for 2008 / 2009

a.   Review of inventory of potential studies               Jim Hester

                                                                             CD #2, Tr. 2

Document distributed:

  • Health Care Reform Commission:  Summary Workplan 2008, Draft, 5/20/08

Jim Hester reviewed the four studies under consideration:

  1. Study of public financing options
  2. Feasibility of pilot in community based payment reform and integration of care, including ACO
  3. Assessment of options for merging risk pools
  4. Electronic prescribing study

Identifying who would be appropriate resources, how much the study might cost. HCRC has in its budget $150,000 in one-time money to support studies.

There is also ongoing HCRC oversight work:

HCRC evaluation and oversight of current health care reform initiatives:  ongoing:

   Develop work plan and monitor progress as part of HCRC ongoing process.

Design Catamount evaluation in collaboration with other evaluations e.g. Blueprint, potential RWJ grant, etc. 

Continue to follow up with VDH on prevention initiative.

          Lead: Hester

          Other resources: Dickey

They have changed the due dates for the studies to make them available to legislators early next year.

1. Study of public financing options: due 2/2009

          Lead: Kappel

          Other resources: Kavet

          Estimated cost: $25-35K

There was a discussion of the Commission’s budget. It has been significantly reduced from the original budget presented to the legislature.

Kappel, re Study of public financing options:  this proposal would build on the foundation of the Kavet/Rockler study produced in 2007. Bulk of the work would be on defining the assumptions built into the model. It is an input-output model, on the macro-economic issues. It is planned to deal only with the revenue side—to start with a small question and build out from that.

[See Appendix C, pg. 17.]

2. Feasibility of pilot in community based payment reform and integration of care, including ACO:  due 2/2009

          Lead: Hester

Other resources: KNG, Workgroup of major stakeholders, actuary support, legal

support re contracting/antitrust issues

          Estimated cost: $50-65K

3. Assessment of options for merging risk pools starting in 1/2010:  due 2/2009

Lead: Wicks

          Other resources: BISHCA

          Estimated cost: $30-40K

4. Electronic prescribing study: due 2/2009

          Lead: VITL

          Other resources: Mannat, HLN?

          Estimated cost: $30-40K

Total cost of potential studies:   $130-180K.

He asked for commissioners’ feedback re these potential studies and the staff estimates, re scope  and the overall work plan; goal is to take this feedback then finalize the work plan at the Commission’s June meeting.

Discussion followed, concerning priorities; which ones are mandated by the legislation. Commissioners reviewed the specific language from the legislation re the studies.

b.   Clarification of objectives and scope of potential studies

i.   Public Financing of Health Care                        Steve Kappel

Sen. Kitchel suggested that a small group of commissioners brainstorm with the staff re the questions and areas for Study #1. The following commissioners volunteered:

Senators Bloomer, Cummings, Mullin and Racine, and Representative McFaun.

Rep. Maier asked to be kept advised as well.

Annie Crowley and Steve Kappel will set up a meeting. They will notify other interested parties re the meeting time and location.

ii.   Merging Fragmented Risk Pools study             Jim Hester

This includes the non-group, small-group, and association markets. Elliot Wicks has done a preliminary study on this topic; they have contacted him and he has produced a proposal re doing this study. He could start the work in September.

iii.   Feasibility of pilot in community-based payment reform and integration of care, including ACO                                      Jim Hester

The intent is to produce a recommended for a pilot project, to be implemented in 2009. Would be based on Elliott Fisher’s Accountable Care Organization design. This will build on the medical home pilot, as being developed in the Blueprint for Health. Discussion followed, of the public financing study compared and connected to this study.

iv.   E-prescribing                                                 Jim Hester

This is a required study, in the bill. The funding is in the original HCRC budget as prepared last fall.

Discussion: we need to refine the cost of this study before proceeding.

                                                                                                       CD #3, Tr. 1

Sen. Racine: We need an overall discussion re how we are going to finance the HCRC and these goals—especially given the current economy.

We need a clear message and report: what is really feasible in health care reform in these times; what our realistic options are. Whatever the results of all this work, we need to be very clear, and confront this head-on. Costs are going up a lot faster than our ability to pay for them.

Rep. Larson suggested going back a few years to the work of the Health Access Oversight Committee and their report, as a basis for this discussion. That would be a place to start. In addition, the Pay Act set up an accountability commission—we could connect with their work.

c.   Recommendations for Studies

See discussions above.

5.        Commission meeting schedule

a.   Next meeting: June 24, 10:00 AM to 1:00 PM, Montpelier.

b.   Visits to health reform communities

Enhanced Blueprint pilot: St. Johnsbury; Other?

Commissioners briefly discussed holding an offsite Commission meeting, most likely in St. Johnsbury in the fall.

The meeting adjourned at 4:20 PM.

Respectfully submitted,

Loring Starr

Appendices follow.

 

Appendix A:  Comparison of Commission Recommendations and Final Legislative Action

Appendix B:  Memorandum from Jennifer Carbee: Responsibilities of the Commission on Health Care Reform

Appendix C:  Healthcare Financing Study—note from Steve Kappel