AHCCCS today

              AHCCCS Today

February 1, 2007

In this issue:   Note from Director Rodgers   AHCCCS awarded $12 million for innovative health system   Mark your calendar: Governor's Summit on Health Information Exchange   Myth vs. truth: What you should know about AHCCCS   CMS approves AHCCCS model for 5 more years   Governor's budget focuses on educating uninsured about available programs and insuring more kids   Leaders share strategies at healthcare summit for Arizona small businesses  In Memoriam: Dr. Merlin "Monte" DuVal   AHCCCS Enrollment Snapshot   Featured Community Link   Additional Resources   Contact Us   About AHCCCS Today

AHCCCS awarded $12 million for innovative health system
Arizona has been awarded a $12 million federal grant to launch a Web based electronic health records system to exchange health information between Medicaid physicians, hospitals and other health care providers. Governor Janet Napolitano announced that the funds   the largest single grant received by any state   were awarded to the Arizona Health Care Cost Containment System (AHCCCS) by the United States Department of Health and Human Services (DHHS). This major project will allow AHCCCS to electronically store AHCCCS member health information and provide that information at the point of service. For example, if an AHCCCS patient came into an emergency room, the ER physician would have medical information instantly available   including medications, lab work and

Note from Director Anthony Rodgers It is my pleasure to share that Governor Janet Napolitano has asked me to serve as the Director of the Arizona Health Care Cost Containment System for another four year term. I accept this reappointment with great pride. In 2006 we accomplished a tremendous amount in serving over one million people throughout Arizona. 2007 looks to be another exciting year for our program. I look forward to continuing to work along with the AHCCCS executive leadership team and agency employees to make this year our most productive yet. Here is a review of 2006 and a preview of the exciting things to come in 2007.
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The AHCCCS waiver was renewed by our federal partners at CMS for another 5 years. We were able to maintain the core principles of Medicaid Managed Care that AHCCCS was built on. This project involved all the divisions of the agency and Governor Napolitano's support played an important role in this achievement. We successfully awarded the new Arizona Long Term Care RFP contracts, resulting in two new contractors in Maricopa County. Nearly one year ago, we transitioned more than 90,000 dual eligibles into Medicare Prescription Drug Coverage. The Governor issued an executive order during the transition to ensure members received

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important medical history   allowing the physician to be more informed, and provide the best treatment for the patient. The goal of this project is to reduce duplicative care, health care administrative costs as well as to avoid errors in care. DHHS has determined that the national implementation of electronic Health Information Sharing could save $140 billion. "Once again, Arizona has proven its leadership by demonstrating new approaches to old problems," said Governor Napolitano. "It's gratifying to be recognized on the national level, and particularly rewarding to know that the innovative work developed here will be made available to other states." Under Governor Napolitano's leadership, a health information sharing roadmap was developed by various representatives in the health care field. From that effort a nonprofit organization was created, Arizona Health-e Connection, which will be working to provide the standards and operating requirements for the exchange of information for public and private health care programs. Arizona Health-e Connection has concentrated on developing policies to ensure protection of consumer privacy. The grant is important because it allows AHCCCS, which provides health care to more than one million people, to be integrated into the overall state effort. The pilot testing will start in January 2008 with volunteer provider offices and hospitals. It is the goal of the program that all AHCCCS providers will have access to electronic health information by the end of 2011. The federal dollars provided in the grant are part of the Deficit Reduction Act of 2005 (DRA), which will distribute $150 million over fiscal years 2007 and 2008. To learn more please visit www.hhs.gov or contact Perry Yastrov, AHCCCS Project Director for Electronic Health Records, perry.yastrov@azahcccs.gov

medications and our plans did a great job providing additional support.
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We sent more than 100 employees home to work, almost 10% of the workforce, during our successful launch of the virtual office program. ice program. AHCCCS experienced capitation rate growth (medical inflation) of 5.6% for the year, which is below the overall healthcare rate of growth. AHCCCS received a favorable audit during a legislative review of the capitation rate setting process. The implementation of the Deficit Reduction Act citizenship and identity requirements had little impact due to the tremendous effort by our Division of Member Services, the Department of Economic Security as well as AHCCCS Community Relations and Public Information staff to provide guidelines and education. AHCCCS implemented two new state only programs. One program ensures that former AHCCCS members who become ineligible due to disability payments are able to receive low cost health care coverage and another to provide medication co-pays for dual eligible members. The Office of Program Integrity has recovered more than $5.3 million in cash. Additionally, the program provided savings of approximately $1 million. Our agency was highlighted by the Office of the Inspector General for "best practices" in how our program handles date of death on payment for members. The agency presented to the Congressional Hearing and the Medicaid Reform Task Force on the success of the Arizona Model of Medicaid Managed Care. The AHCCCS Arizona 2-1-1 team was instrumental in providing operational support to Arizona 2-1-1 during its first live launch at the start of this year's Wildfire Season. And Healthcare Group of Arizona continues to grow its membership. To date, nearly 25,000 people, receive coverage through this program.

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It is amazing when you look back at the positive difference AHCCCS has made in our state. As an agency we have many things to look forward to in '07 including:
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The 25th anniversary celebration. AHCCCS will celebrate 25 years of service in the New Year. Look for more information from the Public Information Office on upcoming events and activities. AHCCCS will be launching the next phase of Arizona 2-1-1 call center in order to provide the community with information and referral services 24 hours a day/seven days a week. We will continue the planning for the implementation of a new claims system. We also expect some new coverage initiatives coming out of the Governor's office that will involve AHCCCS. And work will continue on the implementation of Health E Arizona, our web-based eligibility application, as well as processes for electronic imaging capability to improve our ability in providing services. We are also looking forward to moving forward with our web based electronic health records and health information exchange initiatives.

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Anthony D. Rodgers AHCCCS Director

Myth vs. truth: What you should know about AHCCCS
Myth: AHCCCS is a program for people who don't want to work. Truth: 83% of Arizona's uninsured come from working families. Some AHCCCS members work for companies that do not offer health benefits to their employees. In Arizona, only 58% of businesses offer health insurance. Other members may not participate either because the benefits are unaffordable or they are ineligible as parttime workers or within the probation period. (Sources: Kaiser Family Foundation, The Uninsured, A Primer, 2006, Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey) CMS approves AHCCCS model for 5 more years For more than 20 years, AHCCCS has provided healthcare to Arizonans and continues to be looked to as a model for Medicaid managed care. The authority that makes this successful program possible is given by the federal government through our Medicaid 1115 Research and Demonstration Waiver. The Center's for Medicare and Medicaid Services (CMS) recently renewed that waiver for another 5 years. The approval letter from CMS is available for your review, and for additional information about the renewed waiver, contact Theresa Gonzales at Theresa. Gonzales@azahcccs.gov or by fax at (602) 417-4534.

Mark your calendar: Governor's Summit on Health Information Exchange If you are interested in becoming part of Arizona's electronic health records initiative, save this date. March 20th, 2007 Governor's Summit on Health Information Exchange Hosted by:

More information about the summit will be available soon. Visit the AHCCCS webpage for more information on the AHCCCS EHealth Initiative.

Governor's budget focuses on educating uninsured about available programs and insuring more kids

During the Governor's State of the State address early this year, she spoke about the importance of insuring Arizona kids. "Children with health insurance perform better in school. Children with health insurance are more likely to get regular check-ups and lowcost preventive care   which means they're much less likely to visit an emergency room or end up in the hospital, which saves money. It's a good investment, but more important, it's the right thing to do," said Napolitano. The Governor released her budget soon after, which includes a proposal to invest in outreach to educate about 119,000 uninsured children who are already eligible for AHCCCS and KidsCare. She also recommends strengthening KidsCare so more working families with uninsured kids can qualify. The expansion would include lifting the income level for KidsCare eligibility beyond the current 200% of the Federal Poverty Level to 300%. Napolitano's office believes covering children is a smart economic investment for Arizona since every state dollar spent on health coverage for children is matched by three federal dollars. The Institute of Medicine notes children without health insurance coverage today are more likely to be hospitalized for preventable conditions that could be treated with timely outpatient care, and for missed diagnoses of serious or lifethreatening conditions. These uninsured children produce uncompensated costs for doctors and hospitals which are shifted to the public as a hidden tax through increased premiums.

Most important to the discussion about children's health is the link between health coverage and success in school. The Kaiser Family Foundation found that uninsured kids go without health care, leading to less success in school and reduced cognitive development.
Arizona has the highest rate of uninsured children who receive no care during the year, according to the Robert Wood Johnson Foundation. 25% of uninsured Arizonans were children in 2004, a majority of those children live in working families. Governor Napolitano will be promoting her commitment to providing more uninsured children with healthcare through legislation and the state budget process. If you would like to receive email updates about this initiative, send a message to community@azahcccs.gov with "Governor's Initiative" in the subject line and you will be added to that distribution list. For more information about other Executive Budget items, download the One Arizona Executive Initiatives for FY 2008 Budget.

Leaders share strategies at healthcare summit for Arizona small businesses Vital participants in the healthcare industry, including representatives of small businesses and Chambers, health plan administrators, physicians and other healthcare providers, insurers and insurance brokers across the state came together to strategize on the affordability of healthcare coverage for small businesses in the state of Arizona, with the ultimate objective of making a difference in their community. More than 125 leaders attended the "Building More Affordable Healthcare Options for Small Businesses" policy summit held in November. The Summit was just a starting point for influential individuals to make a difference in their communities. More information regarding future healthcare policy can be found online at an be found online at http://www.slh.

In Memoriam: Dr. Merlin "Monte" DuVal

AHCCCS enrollment snapshot

Dr. Merlin K. "Monte" DuVal, one of the fathers of the Arizona Health Care Cost Containment System (AHCCCS) and the founding dean of the UA College of Medicine died December 5, 2006, from a heart attack in Phoenix. He was 84. Dr. Duval was a thoughtful healthcare leader in Arizona and we will not forget his tireless work and advocacy for the health coverage of all Arizonans.age of all Arizonans.

Numbers reported are as of January 2007. Full AHCCCS enrollment report Full Healthcare Group enrollment report

Featured Community Link:
The Governor's Task Force on the Earned Income Tax Credit The Earned Income Tax Credit is one of the largest anti-poverty programs in the country. A refundable tax credit for low-income workers, the EITC, when coupled with proven financial educational strategies has been credited with lifting more children out of poverty than any other federal aid program and helps low to middle income families build assets. Free tax preparation is critical to preserving the benefits of the EITC. Volunteer Income Tax Assistance (VITA) sites statewide will prepare these returns for free. The Governor's Task Force on the EITC, made up of members from business, non-profits, state, county and city governments, is providing continued leadership and support of local EITC and wealth promotion efforts.

Additional Resources

Contact Us Key AHCCCS contacts AHCCCS health plan contact information
About AHCCCS Today AHCCCS Today is an e-newsletter published by AHCCCS Community Relations to inform the Arizona community about AHCCCS programs, partnerships, policy changes, and other data related to the AHCCCS mission: Reaching across Arizona to provide comprehensive, quality health care to those in need. Subscribe to AHCCCS Today To change your status on the AHCCCS mailing list, email community@azahcccs.gov. Visit AHCCCS on the Web: http://www.azahcccs.gov Copyright Arizona Health Care Cost Containment System (AHCCCS). All Rights Reserved.