The audit focused on three health plans but underscores a broader problem in California: the lack of sufficient oversight of a program that now serves about 12 million beneficiaries, three-quarters of whom are in managed care. Advocates and experts say the state has moved too quickly to shift enrollees into managed care plans and given too much unsupervised responsibility to the companies.
The sheer number of enrollees — along with their complexity — means the state needs to do a better job tracking the plans responsible for caring for them, said Gerald Kominski, director of the UCLA Center for Health Policy Research.
“The audit indicates now that so many Californians are enrolled, how important it is for the state to have adequate oversight,” Kominski said. “The state has a long way to go to reach that goal.”
Aimee Mejia, a single mother in South Gate, just a few miles southeast of downtown Los Angeles, said finding specialists to treat her diabetes and psoriasis was challenging -- some didn’t accept her Medi-Cal insurance and others were too busy to see new patients. She finally found doctors but driving to one takes about 40 minutes and the other more than an hour.
“I thought that was normal to be rejected by doctors or to wait for care,” she said. “But there is something wrong here.”
New proposed federal regulations designed to improve Medicaid managed care could help by requiring states to ensure patients have enough access to doctors and hospitals, limiting profit margins and establishing a quality rating system for plans. In addition, a proposed bill in California would require plans to provide accurate and up-to-date provider directories.
California Department of Health Care Services officials said they already have made some changes and are monitoring doctor networks more thoroughly than the audit found.
But even if oversight improves, many argue the state still needs to increase Medi-Cal payments to doctors and other providers so that more will participate. A coalition of unions, doctors and hospitals are pushing to raise rates in California. If that doesn’t happen, more regulation will only go so far, said Sean Wherley, spokesman for SEIU-United Healthcare Workers West.
“If there still aren’t doctors taking new Medi-Cal patients, how is that any better for patients?” he said.
The issue of managed care oversight isn’t limited to California. Several states have transferred responsibility to managed care insurers but aren’t closely tracking whether Medicaid patients are getting the care they need, said Joan Alker, executive director of the Georgetown University Center for Children and Families.
“This is a national problem,” Alker said. “More beneficiaries with chronic and difficult health conditions and more public dollars are going into managed care. We absolutely need more accountability … in how those dollars are being spent.”
Oversight efforts have been hurt by state budget cutbacks and the loss of seasoned employees, she said. In addition, more companies taking care of Medicaid patients have a responsibility to return profits to their shareholders. “That comes up against the responsibility of dealing with a population of people who have a lot of health care needs,” Alker said.
California didn’t get here overnight. The state has been moving large numbers of poor patients into managed care for decades. Over the past few years, however, the pace has accelerated. Many newer beneficiaries, including seniors and people with disabilities, have multiple chronic illnesses. And people who gained Medi-Cal coverage through the Affordable Care Act also may have gone without treatment for a long time and have serious health needs.
Each transition has been rocky, with patients and advocates raising concerns about patients’ inability to find primary care doctors or specialists.
Linda Lindsey, 60, lives in Weaverville, a rural town outside Eureka in far northern California with limited numbers of doctors. Lindsey said she was moved into a Medi-Cal managed care plan a few years ago and said she has even fewer options for doctors and pharmacies than she did before.
At one point, Lindsey, who has Crohn’s disease, said she drove about 50 miles to see a specialist only to be told that the office didn’t accept her plan. “I was upset, to say the least,” she said.
Some of the issues have arisen because Medi-Cal grew much faster and bigger than anybody predicted, said Stan Rosenstein, a consultant and former chief deputy director at the state health care services department. The numbers jumped from 6.6 million enrollees in 2007 to 12.2 million to this year.
But he said caring for people through managed care is a vast improvement over the old fee-for-service system, where doctors got paid per visit. In managed care, Rosenstein said, “there is a lot more measurement, a lot more accountability and a lot more contractual requirements than there ever had been.”
There are numerous laws on the books requiring state monitoring and sufficient access to doctors. For example, the state is required to determine that plans have enough doctors and that patients don’t have to travel too far to reach them. State officials also must do regular assessments of plans to determine whether they can meet their contractual obligations.
But just having laws isn’t enough to ensure that patients’ needs are met, said Abbi Coursolle, a staff attorney at the National Health Law Program. “Those standards are only as good as the state’s ability to enforce them,” she said.