| MD Tiering |
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The Group Insurance Commission (GIC) administers the health insurance programs for 294, 000 state employees and retirees through its agreements with Fallon Community Health Plan, Harvard Pilgrim Health Care, Tufts Health Plan, Neighborhood Plan, Health New England and Unicare. Over the years the GIC has worked with its health plans to implement a number of strategies to contain costs including disease management programs, health promotion efforts and tiered prescription drug formularies. More recently, the GIC implemented its Clinical Performance Improvement Initiative (CPI) to improve health care quality and promote cost effectiveness through increased transparency of provider performance. Under this program, the GIC mandated that all its contracted health plans incorporate a provider tiering methodology into their plan design for State Employees. The GIC contracted with Human Resource Consulting (“Mercer”), to aggregate claims data from the six health plans to derive relative provider efficiency and quality scores. Episode of Treatment Group (ETG) software was used by Mercer to develop each physician’s efficiency scores. The ETG grouper evaluates the diagnoses and procedure codes in each patient’s data and groups those data into episodes of care comparing actual to the expected (average) cost of care. Mercer then provided the aggregated data to the health plans to use in developing their own provider tiering strategy. For the Tufts Health Plan Navigator Product, the first threshold of evaluation is based on quality. A physician’s overall quality score is a combination of two components: clinical quality data and the existence of certain practice measures. Tufts used commercially available software available from Resolution Health, Inc and Prosoft, Inc to generate its clinical quality metrics. For surgeons, (general, urology, and orthopedics) Tufts also used surgical volume, mortality, and complications data available from the www.mass.gov website and the all-hospital, national payer dataset accessible through WebMD. For Tufts the second threshold of evaluation for a physician is based on cost efficiency. The cost-efficiency score provided by Mercer is based on standardized costs, so that it measures variations in the use of services between physicians, but not the actual cost of treating an episode of care for a Navigator member. The score is then adjusted for the NWPHO Tufts PPO rates to reflect the actual costs of care for the services. The final step in computing a Tufts total score for the tiering is to calculate a 50/50 weighting for the quality and cost efficiency scores. Under the GIC plan design, the estimated physician distribution for each specialty is to be approximately 20% in Tier 1, 65% in Tier 2 and 15% in Tier 3. Tufts Health Plan adopted a three-tier approach resulting in three levels of outpatient visit co-payments for specialists. The level of co-payment were level 1 (excellent, co-pay $15), level 2 (good, co-pay $25) and level 3 (standard, co-pay $35). The following specialists were tiered at an individual level: cardiology, dermatology, endocrinology, gastroenterology, neurology, ophthalmology, orthopedics, otolaryngology, rheumatology, surgery and urology, while obstetricians/gynecologists were tiered at the group level. All primary care physicians are in tier 1 with a $15 co-payment. The Harvard Pilgrim Health Care Independence Plan tiers the following twelve specialties at the individual provider level: cardiologists, dermatologists, endocrinologists, gastroenterologists, obstetricians/gynecologists, general surgeons, orthopedic surgeons, ophthalmologists, allergists/immunologists, neurologists, otolaryngologists, rheumatologists. As with Tufts, all primary care physicians are in grouped in tier 1. HPHC also uses Resolution Health, Inc. (RHI) to compute their quality score, but their methodology also incorporates selected Agency for Healthcare Research and Quality (AHRQ) patient indicators. The efficiency score is also based on the Mercer ETG score. As with Tufts, this efficiency score is adjusted for the NWPHO contracted PPO rates. HPHC then uses the same 50/50 weighting methodology for the quality and cost efficiency scores to derive a composite MD score. The Table below details NWPHO tiering for the Independence Plan with 16% of physicians in tier 1 with a $15 co-pay, 74% of physicians in tier 2 with a $25 co-pay, and 10% of physicians in tier 3 with a $35 co-pay. Overall, the NWPHO did very well since the GIC distribution by region is 20% of physicians in tier 1, 65% of physicians in tier 2 and 15% of physicians in tier 3. Unicare, the other health plan with a significant number of State Employees has not shared their CY2008 tiering methodology at the current time. Once this information is available, we will provide an update. While Blue Cross Blue Shield does have a contract with the GIC, they have developed a new tiered product that will be available to non-state employees effective July 1, 2008. The BCBS quality tiering is based on the Health Care Effectiveness Data and Information Set (HEDIS) and the Massachusetts Health Quality Partners (MHQP) patient experience data. The cost tiering is based on health status risk adjusted total medical experience per member per month. The NWPHO primary care physicians have all been placed in tier 2 with a $25 co-pay. All specialists have a $45 co-pay and are not tiered at present time. Please feel free to contact Steve Kelleher, Manager of Contract Finance for the NWPHO at 617-243-5377, if you have questions or need additional information regarding these tiered products. |