1. AHCCCS Update 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

2. Where are we going? AHCCCS Strategic Direction • Implement Governor’s Coverage Proposal • Develop strategies that leverage the AHCCCS Managed Care Model to bend the cost curve and improve health care outcomes • Recognize many strategies currently being pursued nationally have been implemented in Arizona • Managed care for long term care population • Home and community based placement • Dual member alignment 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

3. Medicaid Restoration • Enrollment Numbers – 1/1/14 – Up 1,059 • More approvals and denials going out regularly 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

4. HEAplus Update • HEAplus went live to public on 10-19-13 • Sending Account Transfers to FFM – about 31,000 (as of early January) • FFM to State • Testing as of 1-10-14 • Ongoing challenges • Next Phase - Roll out to eligibility workers 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

5. Essential Health Benefits • Aligning to Medicaid package • Adding HPV vaccine for adults (21-26) – 1/1/14 • Restored well visits – 10/1/13 • Habilitation – separate 15 visit limit under PT • 25-day limit going away 10/1/14 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

6. Hospital Assessment • AHCCCS worked with Navigant and hospital stakeholders • Projected need of $75 m in FY 2014 • Model shows no systems negatively impacted • Major decisions included – • Rate basis – Discharges • Time period for rates – 6 months • Quarterly Payment – first payment due Feb 15 Transparency reporting – • Exemptions – Rehab – Childrens – Small Psych • Modifications – Psych – large providers – large children’s units • March – April – Stakeholder meetings for SFY 15 rate (7-1-14) • Regulatory Action if not paid: • 90 Days – AHCCCS provider ID • 180 days – DHS license can be terminated 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System

7. Care Coordination • AIHP • Continuing to refine care coordination models and data sharing with select facilities • Expanding to include behavioral health resource • Super Utilizer Efforts • RBHA/Health plan coordination • Correctional Opportunities 30 Years of Medicaid Innovation Our first care is your health care Arizona Health Care Cost Containment System