Minnesota Rate Review Grants Award List

Cycle II Grant Application Summary

Minnesota Grantee: Minnesota Department of Commerce

Award Date: September 20, 2011

Total Award: $3,900,899

Baseline Award: $3,000,000

Workload Award Amount: $300,899

Performance Award Amount: $600,000

• Introduce legislation: Minnesota will review current statutes and best practices in other effective rate review States to propose legislative changes as needed.
• Improve rate filing requirements: Minnesota, with the assistance of the Minnesota Health Economics Program and the Minnesota Department of Health will study the history of rates, benefit patterns, actuarial values and expenses. Minnesota will also develop a Rate Review Procedures Manual and consultants will randomly audit filings to identify areas for improvement.
• Improve transparency and consumer interfaces: Minnesota will conduct interviews and focus groups with consumers to understand information gaps and will develop a web-based tool for consumers to understand rate filings. Minnesota plans to conduct a study on the value of making rate filings public. In addition, the State's enhanced IT system will generate a public report of each filing.
• Hire new staff: Minnesota will create 3 new positions from the Cycle II grant funding.
• Improve IT: Minnesota will develop systems to produce reports that analyze filings for consumers, and a database to house information collected from rate filings beginning in 2003, as well as a reporting module to provide information to HHS.

Cycle III Grant Application Summary

Minnesota Grantee: Minnesota Department of Health

Award Date: September 23, 2013

Total Award: $3,174,322

Baseline Award: $2,000,000

Workload Award Amount: $774,322

Performance Award Amount: $400,000

• Health pricing transparency activities integrated into rate review: Minnesota will conduct a study of how an advanced All Payer Claims Database (APCD) can support existing rate review activities. Subsequently, Minnesota will request legislative authority to enhance the APCD in order to better support rate review.
• Enhance data collection: Minnesota plans to improve the APCD through technical and structural improvements, which include: 1) improving the infrastructure of the APCD; 2) designing and implementing data collection standards; 3) evaluating the need for additional data elements; and 4) implementing processes to increase the accuracy of data.
• Improve pricing transparency: Minnesota will improve pricing transparency by publishing risk adjusted average provider payments and decomposing differences in payments. Public reporting will be established in late 2013 or early 2014.

Cycle IV Grant Application Summary

Minnesota Grantee:  Minnesota Department of Health
Award Date: September 19, 2014
Total Award: $1,179,000

• Enhance Data Quality: The Minnesota Department of Health will hire a dedicated analyst to assess on an ongoing basis the quality of data, which includes conducting research of the data, working with data submitters and the data aggregator on questions of completeness, and managing contract work related to these activities by the data aggregator and an independent vendor.
• Expand and Improve Data Analysis: Minnesota plans to expand its research capability by adding two senior claims analysts and one junior analyst to the existing research team and by retaining vendors for three projects involving transparency in cost analysis. Minnesota is consulting with other states on the development of a Uniform Medical Claims Payer Reporting Standard that is well aligned with data standards. This would involve substantial efforts to upgrade Minnesota’s data elements and data structure while maintaining flexibility in collecting data elements necessary for Minnesota-specific research efforts.  Engaging in additional data collection and revising data systems will require exploration, system re-design, work with data submitters and other stakeholders, and operationalizing implementation of changes.
• Data Dissemination and Transparency: Minnesota will move towards developing multiple pathways for public reporting, including short policy papers and maintaining a searchable web presence online. On various projects, Minnesota will be coordinating with stakeholders to refine its communication strategy.

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