State Receives Contract to Plan for Integrating Care for People with Medicare and Medicaid

The Centers for Medicare and Medicaid Services (CMS) recently announced that it has awarded Michigan a nearly $1 million innovation contract to develop ways to improve care and services for individuals dually eligible for Medicare and Medicaid, known as dual eligibles.

Michigan is one of 15 states to receive a CMS contract to plan for integration of care for dual eligibles. The goals are to eliminate duplication of services, expand access to needed care and improve the lives of people enrolled in both Medicare and Medicaid while lowering costs.

"This good news is a key step in continuing to reinvent Michigan," said Governor Rick Snyder. "Integrating care for those who are eligible for both Medicaid and Medicare really is a win-win for our state. Vulnerable recipients will benefit through better coordinated and higher quality care, and Michigan taxpayers will benefit by ensuring resources are spent wisely."

Dual eligibles account for 16 to 18 percent of enrollees in Medicare and Medicaid, but roughly 25 to 45 percent of spending in these programs, respectively. In Michigan, these beneficiaries represent 12 percent of total Medicaid enrollment and account for 38 percent of total Medicaid spending. They currently must navigate two very different systems in Medicare and Medicaid. The CMS contract will enable the Michigan Department of Community Health to plan ways to improve their access to better and more coordinated care, at a lower cost.

"Michigan is grateful for this opportunity to enhance our efforts to improve the coordination of Medicare and Medicaid benefits for dual-eligible beneficiaries," said Olga Dazzo, Director of the Michigan Department of Community Health. "Under this project the state will collaborate with key stakeholders to ensure that planning decisions are made in the best interests of Michigan's dual eligible population."