Medicare Blog

how medicare and medicaid affect organization deliver care

by Dr. Jazmyne Larson Published 3 years ago Updated 2 years ago
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Medicare and Medicaid

Medicaid

Medicaid in the United States is a federal and state program that helps with medical costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and personal care services. The Health Insurance As…

helped end segregation in health care facilities. One lesser-known positive effect on the industry is that these programs helped end segregation, at least at health care facilities.

Full Answer

Does Medicaid improve access to care and outcomes?

The ultimate result is improved health outcomes. In light of Medicaid’s large and growing coverage role, and the significant health care needs of its beneficiaries, an evidence-based assessment of the program’s impact on access to care, health outcomes, and quality of care is of major interest.

How can Medicaid managed care improve care delivery?

Fragmented delivery systems, limits on the types of services for which managed care organizations are at risk, and the volatility in managed care markets all present challenges to improving care delivery. Policy and operational changes could enhance the role of Medicaid managed care in promoting patient-centered, coordinated, and high-quality care.

Do Medicare and Medicaid increase health care utilization?

But it is unclear whether the expansion of health care utilization in the first few years of Medicare and Medicaid could be attributed mostly to increasing access to and utilization of needed services or to unregulated overuse of health care.

Do Medicare and Medicaid influence the healthcare industry?

That is the opinion of Theodore Marmor, professor of public policy at Yale and author of the book, The Politics of Medicare. Whether you agree with him or not, it is difficult to deny the influence of Medicare and Medicaid on the health care industry.

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What impact did Medicare and Medicaid have on society?

Medicare and Medicaid have greatly reduced the number of uninsured Americans and have become the standard bearers for quality and innovation in American health care. Fifty years later, no other program has changed the lives of Americans more than Medicare and Medicaid.

How does Medicare affect access to care?

February 03, 2021 - Medicare coverage increases seniors' access to care and reduces affordability barriers, a study published in Health Affairs discovered. “The Medicare program pays for roughly one of every four physician visits in the United States, and in 2019 it covered roughly 60 million people.

How does healthcare policy affect healthcare organizations?

Healthcare policy is important because it helps establish guidelines that benefit patients, healthcare organizations, and our healthcare system. Having protocols in place can help prevent human error and poor communication around medical decisions.

What are the factors affecting health care delivery system?

Patient socio-demographic variables. ... Patient cooperation. ... Type of patient illness (severity of illness) ... Provider socio-demographic variables. ... Provider competence (Knowledge and skills) ... Provider motivation and satisfaction. ... Healthcare system.

How does insurance affect healthcare access?

Health insurance coverage is an important determinant of access to health care. Uninsured children and nonelderly adults are substantially less likely to have a usual source of health care or a recent health care visit than their insured counterparts.

Does insurance affect quality care?

This study finds that overall, there is no significant difference in perceptions of quality of care between insured and uninsured patients. However, some indicators show significant differences in perceptions of quality of care, key among which is financial access to care.

What changes do you think need to be made to the health care delivery system in the United States?

5 Critical Priorities for the U.S. Health Care SystemFocus on Improving Health. ... Tackle Racial Disparities. ... Expand Telehealth and In-Home Hospital Services. ... Build Integrated Systems. ... Adopt Value-Based Care.

Do policies impact the culture and procedure of a healthcare organization?

Policies and procedures collectively should reflect the mission and culture of the organization; and whenever necessary, policies and procedures may be updates to meet the changing needs of the organization, as long as the changes are documented and implemented.

Why policies and procedures are important for a healthcare institution?

Policies and procedures for hospitals help hold employees accountable for following the right steps when caring for patients. They standardize practices across the organization and ensure that every patient receives the same level of care. Standardized practices across the hospital keep patients safe.

How can healthcare delivery system be improved?

7 steps to improved healthcare delivery systemsCenter the "whole person" in the system design.Develop systems for care management and coordination.Incorporate behavioral health and social health determinants into the equation.Work toward collaborative leadership.Align care delivery and the community.More items...

What are three factors of society that influence the healthcare industry?

5 Factors That Influence Healthcare Spending GrowthTechnology. ... Healthcare product and service prices. ... Market power. ... Health insurance coverage. ... Demographics and patient characteristics.

What are the main objectives of a health care delivery system?

The primary objectives of any health delivery system are to enable all citizens to receive health care services whenever needed, and to deliver health services that are cost-effective and meet pre-established standards of quality.

What Is The Purpose of Health Insurance?

The IOM articulated the purpose of health insurance in the first of its six reports: “For individuals and families, health insurance enhances acces...

Who Are Medicaid Beneficiaries?

Medicaid was designed to provide health coverage for low-income children and families who lack access to private health insurance because of their...

Finding #1: Having Medicaid Is Much Better Than Being uninsured.

Consistently, research indicates that people with Medicaid coverage fare much better than their uninsured counterparts on diverse measures of acces...

Finding #2: Medicaid Beneficiaries and The Privately Insured Have Comparable Access to Preventive and Primary Care.

Given the benefits that cascade as health insurance lowers financial barriers and opens the door to the health care system, and, in contrast, the d...

Finding #3: Specialists Are Less Willing to accept Medicaid Patients Than Privately Insured patients. However, Studies Comparing Access to Specialist Care Between Medicaid and Private Insurance Have Produced Mixed Findings – Likely A Reflection of The Difficulty of Adjusting For All The Factors That May Influence Access.

As distinct from access to primary care, access to specialty care has emerged in some research as a weakness in Medicaid relative to private insura...

Finding #4: Studies Examining The Causes of Higher Emergency Department (ED) Use by Medicaid Beneficiaries Compared to The Privately Insured Indicate That Most of The Difference Is Due to Higher Rates of Symptoms Determined by Ed Triage Staff to Need Urgent attention. Barriers to Access to Care Are Also A factor.

Compared with both privately insured people and the uninsured, Medicaid beneficiaries have much higher rates of ED use.43 However, a substantial bo...

Finding #5: New Evidence Is Emerging About The Quality of Care Provided to Medicaid beneficiaries.

Research investigating the quality of care received by Medicaid beneficiaries is limited, but two new analyses, one focused on health center care a...

Why is Medicare and Medicaid important?

Medicare and Medicaid helped end segregation in health care facilities.

How much did the federal government spend on Medicare in 2014?

By 2013, there were 15. The federal government is now the largest purchaser of health care in the United States. In its Primer on Medicare, The Kaiser Family Foundation estimates that 14% of the $3.5 trillion spent by the federal government in 2014 was spent on Medicare (approximately $505 billion total), making it the largest purchaser ...

Why were health care facilities not racially segregated?

The programs required that health care facilities could not be racially segregated if they wanted to receive Medicare and Medicaid payments, which meant facilities had to start accepting African-American patients.

When did Medicare and Medicaid become law?

To mark the 50 th anniversary of Medicare and Medicaid, signed into law by President Lyndon Johnson on July 30, 1965, we have identified four ways these programs have shaped the health care industry. There is no stopping the health care juggernaut.

When were there no health care companies listed in the Fortune 100?

In a March 2014 presentation during the conference of National Health Care Journalists, Rosemary Gibson (senior advisor with The Hastings Center) brought the point home with this statistic: In 1965, there were no health care companies listed in the Fortune 100. By 2013, there were 15.

Why is Medicaid important?

Medicaid was designed to provide health coverage for low-income children and families who lack access to private health insurance because of their limited finances, health status, and/or severe physical, mental health, intellectual, or developmental disabilities.

How much more likely are Medicaid patients to report good health?

Compared with the uninsured adults, the Medicaid adults were 25% more likely to report they were in good to excellent health (versus fair to poor health), 40% less likely to report health declines in the last six months, and 10% more likely to screen negative for depression.

What is a health center?

Health centers are a key source of preventive and primary care for medically underserved communities and populations , including millions of Medicaid beneficiaries. The ACA funded a major expansion of the health center program to help meet the expected increased demand for care as both Medicaid and private coverage expand. Given the role of health centers in providing care to Medicaid patients, evidence on the quality of care they deliver is important to an assessment of the Medicaid program itself. A recent study examined how health center performance on a set of three quality measures – diabetes control, blood pressure control, and receipt of a Pap test within the past three years – compares to the performance of Medicaid managed care organizations (MCOs), which also serve a low-income population. 50 The study defined the standard for “high performance” as the 75 th percentile of Medicaid MCO quality scores, and the standard for “lower performance” as the mean Medicaid MCO quality score. Because all Medicaid MCO enrollees are insured but a large share of health center patients are uninsured, MCO performance is a demanding benchmark to use for health centers.

What are the findings of the New England Journal of Medicine?

Two rounds of findings have been published in the New England Journal of Medicine, which can be summarized, in part, as follows: Medicaid increased access to care and health care use, and improved self-reported health.

How does health insurance help people?

Second, health insurance lowers financial barriers to access. It does this by reducing out-of-pocket costs for medical care, which disproportionately burden low-income people and people with extensive health care needs.

Does Medicaid have ED?

Compared with both privately insured people and the uninsured, Medicaid beneficiaries have much higher rates of ED use. 43 However, a substantial body of research investigating this disparity more closely indicates that poorer health and access challenges in Medicaid both play important roles in explaining Medicaid’s higher ED visit rates.

Is Medicaid effective?

In its totality, the research on Medicaid shows that the Medicaid program, while not perfect , is highly effective . A large body of studies over several decades provides consistent, strong evidence that Medicaid coverage lowers financial barriers to access for low-income uninsured people and increases their likelihood of having a usual source of care, translating into increased use of preventive, primary, and other care, and improvement in some measures of health. Furthermore, despite the poorer health and the socioeconomic disadvantages of the low-income population it serves, Medicaid has been shown to meet demanding benchmarks on important measures of access, utilization, and quality of care. This evidence provides a solid empirical foundation for the ACA expansion of Medicaid eligibility to millions of currently uninsured adults, and individuals and communities affected by the Medicaid expansion can be expected to benefit significantly. At the same time, the Medicaid program cannot overcome health care system-wide problems, like gaps in the supply and distribution of the health care workforce, or lack of access to transportation in low-income communities. Nor can Medicaid be expected to tackle many other barriers and issues that disproportionately affect low-income individuals and communities. These challenges require an additional set of policy responses beyond Medicaid’s ambit.

What is the role of Medicaid managed care?

Policy and operational changes could enhance the role of Medicaid managed care in promoting patient-centered, coordinated, and high-quality care. State policymakers are increasingly looking to Medicaid managed care as a key strategy to manage costs and encourage innovation in health care delivery.

Why do providers talk about diverting resources?

Providers spoke about diverting resources to counsel patients about their new coverage or assist them in changing plans. Many providers noted that fragmented health care systems in their communities do not support their efforts to improve access or deliver patient-centered care.

Do MCOs accept referrals?

Primary care providers and referral specialists say they need accurate and current lists of network specialists who will accept referrals. MCOs could consider ways to reimburse services such as group or home visits, which safety-net providers cited as being particularly helpful for patients with complex conditions.

Can MCOs contract with local trusted organizations?

MCOs could contract with local trusted organizations or develop their own care management programs. Respondents emphasized that care managers making frequent, in-person contact with patients would be more effective than efforts to manage or coordinate care by telephone.

Is managed care a high performance program?

The use of managed care is not the only approach to achieving high performance in the delivery of Medicaid services. Yet, activity and interest in Medicaid managed care are high and likely to increase with the expansion of Medicaid to cover more low-income adults in many states under the Affordable Care Act.

Is managed care a catalyst for reform?

It finds that providers do not generally perceive Medicaid managed care as a catalyst for delivery system reform. Fragmented delivery systems, limits on the types of services for which managed care organizations are at risk, and the volatility in managed care markets all present challenges to improving care delivery.

How many fewer readmissions for Medicare?

This translates to about 130,000 fewer readmissions for Medicare beneficiaries. Additionally, as part of a new Affordable Care Act initiative, clinicians at some hospitals have reduced their early elective deliveries to close to zero, meaning fewer at-risk newborns and fewer admissions to the NICU.

How many Medicare Advantage plans were there in 2014?

In 2014, the 14.6 million Medicare beneficiaries currently enrolled in Medicare Advantage have access to 1,625 five and four-star plans, which is 473 more high-quality plans than were available in the previous year. Below are specific examples of the reforms and investments that we are making to build a health care delivery system ...

What is EHR in healthcare?

Electronic Health Records (EHRs). Adoption of electronic health records continues to increase among physicians, hospitals, and others serving Medicare and Medicaid beneficiaries helping to evaluate patients’ medical status, coordinate care, eliminate redundant procedures, and provide high-quality care. More than 62 percent of health care professionals, and over 86 percent of hospitals, have already qualified for EHR incentive payments for using certified EHR technology to meet the objectives and measures established by the program, known as meaningful use. Electronic health records will help speed the adoption of many other delivery system reforms, by making it easier for hospitals and doctors to better coordinate care and achieve improvements in quality.

How many stars did Medicare Advantage get in 2014?

Over one-third of Medicare Advantage contracts received four or more stars in 2014, which is an increase from 28 percent in 2013. Over half of Medicare Advantage enrollees are enrolled in plans with four or more stars in 2014, a significant increase from 37 percent of enrollees in 2013.

How many states have integrated care teams?

Nine states (California, Illinois, Massachusetts, Minnesota, New York, Ohio, South Carolina, Virginia, and Washington) have received approval for demonstrations using integrated care teams, health homes, or other interventions to coordinate care for Medicare-Medicaid beneficiaries.

Why is electronic health records important?

Electronic health records will help speed the adoption of many other delivery system reforms, by making it easier for hospitals and doctors to better coordinate care and achieve improvements in quality. • Partnership for Patients.

What is the economic impact of Medicaid?

Medicaid is a fundamental component of states’ economies, because of the large role it plays in coverage and care and its design as a federal-state partnership. In all states but one (Wyoming), Medicaid is the largest source of federal grant money that states receive—comprising two-thirds of all federal grants to states, ...

What were the benefits of Medicaid before the ACA?

Even before Medicaid expansion under the ACA, Medicaid coverage was associated with a range of positive health behaviors and outcomes, including increased access to care; improved self-reported health status; higher rates of preventive health screenings; lower likelihood of delaying care because of costs; decreased hospital and emergency department utilization; and decreased infant, child, and adult mortality rates. Three states that expanded their adult Medicaid eligibility levels prior to the ACA—Arizona, Maine, and New York—thereafter experienced an aggregate 6 percent decrease in all-cause mortality rates for 20 to 64-year-olds, translating to 20 fewer deaths per 100,000 residents than compared to states without expanded Medicaid programs.

What is the most important thing about medicaid?

Medicaid has long been an essential source of health insurance coverage for low-income children, parents, elderly, and individuals with disabilities, improving health care access and health outcomes. With the Medicaid expansion under the Affordable Care Act (ACA), authorizing states to extend Medicaid eligibility levels for all adults with incomes up to 138 percent of the federal poverty level (FPL), it is the largest health insurer in the country, covering almost 66 million individuals. Accordingly, Medicaid spending comprises one-sixth of total health care expenditures in the United States, translating to over three percent of GDP.

Is Medicaid good for poverty?

Of all types of health insurance, Medicaid is the most successful in reducing poverty rates. On a person-level basis, Medicaid coverage at different points during the lifespan has been tied to economic mobility across generations and higher educational attainment, income, and taxes paid as adults. Studies by states and independent researchers have ...

Does Medicaid help with personal finances?

Among enrollees, Medicaid coverage is associated with improved personal finances; for example, in Oregon, as compared to a control group, individuals who gained Medicaid coverage were 13 percentage points less likely to have medical debt and approximately 80 percent less likely to have experienced catastrophic medical expenses.

Does Medicaid replace prior state spending?

Expansion states have experienced budget savings, and in many cases, these savings offset at least some of the cost of the state share—as federal Medicaid dollars replace prior state spending—most notably with respect to behavioral health, public health services, and the criminal justice system.

How many people are covered by medicaid?

Medicaid, the nation’s main public health insurance program for low-income people, now covers over 65 million Americans – more than 1 in every 5 – at least some time during the year.

Is Medicaid expansion a state option?

However, as a result of the Supreme Court’s decision on the ACA, the Medicaid expansion is, in effect , a state option. Almost half the states are moving forward with the Medicaid expansion.

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