GraniteCare Enhanced Care Coordination For Medicaid

The Department of Health and Human Services (DHHS) will begin implementing the GraniteCare enhanced care coordination plan for the State's Medicaid program. A contract with Schaller Anderson Medical Administrators was approved today by the Governor and Council for the program.

Enhanced care coordination is a prevention-based strategy designed to improve health outcomes and reduce Medicaid expenditures by focusing on key health measures, such a vaccinations, regular checkups and screenings, to avoid costly medical complications. The proposal was part of DHHS' GraniteCare initiative and was included in the State Budget.

"It is easier, less expensive and better to keep people healthy than to treat individuals once they become sick," said DHHS Commissioner John Stephen. "Our GraniteCare plan recognized the need to bring prevention to our Medicaid program, including giving our patients a true medical home. This means that individuals who take part in care coordination will have one person, either a doctor or a nurse practitioner, who is directing their care and they won't bounce around what can be a complicated health care system."

The enhanced care coordination contract is for three years. During this time, the vendor estimates Medicaid savings of nearly $29 million, with a cost to implement the proposal of $8.9 million, leaving a net savings of roughly $20 million. DHHS has included provisions in the contract to ensure that if the mandated savings are not attained, the vendor does not receive administrative fees. As a Medicaid expense, all costs and savings are split evenly between the State and federal government. The plan covers over 60,000 Medicaid beneficiaries who are enrolled through the Temporary Aid to Needy Families (TANF) and the Aid to the Permanently and Totally Disabled (APTD) programs.

"This is a win-win situation, as it will improve health outcomes while also saving the taxpayers," added Stephen. "With the significant increases in health care costs, we constantly need to develop new and innovative ideas that will improve the quality of care while reducing the long-term growth in Medicaid. This truly is one area that will improve our program, and I want to thank the legislature and the Governor and Council for supporting our efforts for change." - North Carolina Department of Health and Human Services