CCDTF e-Memo: Follow Up Regarding Proposed New Rates for Care Coordination and Peer Recovery Services

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e-Memo

#18-47

03/01/18

Follow Up Regarding Proposed New Rates for Care Coordination and Peer Recovery Services

This e-Memo is a follow up to e-Memo #18-45 that announced that the State Register (Volume 42, number 34, Feb. 20, 2018) had posted public notice of the proposed state plan amendment to the Medical Assistance (Program) to add the substance use disorder reform new services of peer recovery support services, care-coordination and comprehensive assessment that passed in the 2017 legislative session.  This e-Memo is a follow up to the questions the Department has received regarding why the proposed care coordination services reimbursement rate is less than the peer recovery support services rate.

The proposed state plan amendment to the Medical Assistance (Program) includes:

1.     Effective for services provided on or after July 1, 2018, the Department shall pay for peer recovery-support services provided by a recovery peer to treat substance use disorder, at the lesser of the provider’s charge, or $15.02 per 15-minute unit. This change is estimated to result in a net spending increase of $375,000 in the MA program in state fiscal year 2019.

2.     Effective for services provided on or after July 1, 2018, the Department shall pay for care-coordination services provided by a care coordinator to treat substance use disorder, at the lesser of the provider’s charge, or $11.71 per 15-minute unit. This change is estimated to result in a net spending increase of $294,000 in the MA program in state fiscal year 2019.

Peer Support Services

Minnesota has only previously reimbursed peer support services for persons with substance use disorder as part of grant-funded programs and pilots conducted over the last five years.  The reforms passed in 2017 will allow Medicaid to reimburse this service on or after July 1, 2018.  To determine the proposed rate, and in an effort to keep rates consistent across all types of services, DHS looked to the payment rate previously approved by CMS for the mental health peer support service. Substance use disorder peers and mental health peers provide similar services and both must have training and certification approved by the Commissioner. The rate for comparable peer support services in mental health is $15.02 per 15 minutes. 

Care Coordination Services

Care coordination, (or treatment coordination) is a new service provided by an unlicensed staff member, who has a bachelor’s degree or UMICAD certification, 30 hours of classroom training on care coordination for an individual with substance use disorder, and 2000 hours of supervised experience working with individuals with substance use disorder.  This service is a supportive service, assisting the licensed counseling staff in the facilitation and the implementation of the individual’s treatment plan. The care coordination rate was set at 65% of the payment rate for the service when provided by a licensed counselor. When applying the 65% factor, the rate is reduced to $11.71 per 15 minutes.  This is an appropriate rate based on the level of credentialing/licensure needed for care coordination. The $11.71 per 15 minutes translates to $46.84 per hour.  

During the continuum of care pilot, this service was paid at a rate of $70 per hour. However, during the pilot, the provider of care coordination services was a licensed SUD counselor. During the course of continued stakeholder engagement in the community, it was recognized that certain treatment coordinating tasks could be provided by non-licensed individuals. In order to avoid over-qualified individuals from providing this service, it was proposed to lower the credentials for individuals who provide this service. Because of the reduced qualifications of the care coordinator, the payment rate was also reduced.

The draft state plan amendment with more detail will be published shortly. Hopefully, the added detail and context will help answer any additional questions.


About the e-Memo

The e-Memo is the official communication method for the Alcohol and Drug Abuse Division.

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