Comorbidity-based payment methodology for Medicaid enrollees with HIV/AIDS.

Managed care organizations (MCOs) may be incurring financial losses from persons with human immunodeficiency virus (HIV) or acquired immunodeficiency syndrome (AIDS) (PWHA). This study developed a statistical model to examine which specific comorbidities are important contributors to the variations in health care costs of PWHA. Individuals were classified into cost groups to simulate biased selection in MCOs. Capitation payments for various cost groups under different methodologies were compared. The statistical model closely matched payments with the actual costs of care. Capitation payments for HIV/AIDS enrollees based on this model will better protect MCOs than the traditional risk-adjustment methods.

An assessment of Maryland Medicaid's Rare and Expensive Case Management Program.

The Rare and Expensive Case Management Program provides intensive case management services to an especially vulnerable population comprised of primarily pediatric beneficiaries. This study examines the effect of the case management program on the pattern of costs. With its emphasis on obviating the need for acute care services and providing the necessary medical and assistive services in a timely manner, the case management program is expected to change the pattern of expenditures by category of service. Due to the low prevalence of conditions covered by the program, constituting a comparison group for the evaluation posed a major challenge. Employing an innovative methodological approach, a historical comparison group was modeled using statewide Medical Assistance claims files. The study design included a retrospective comparison of Medicaid beneficiaries enrolled in the program with a similar group before the case management program was implemented. The results bear out the anticipated pattern of shifts in cost of care from acute care to nonacute care services.