Medicaid program name: Medical Assistance (MA)

Medicaid ACO program name: Integrated Health Partnerships (IHP, now IHP 2.0)

Status: Active

Minnesota has a large state-wide Medicaid ACO program referred to as Integrated Health Partnerships (IHP). This program is modeled after the Medicare Shared Savings Program (MSSP) but adapted for Medicaid with different services included or excluded in payments. IHP began in 2013 using $45 million from a State Innovation Model (SIM) grant. Minnesota had a large, widespread Medicaid managed care program before the IHP. This program changed the focus to move to accountable care processes with shared savings payment for physical, behavioral and pharmacy care that includes quality measurement. Managed care organizations are required to work with IHPs, but the IHPs serve all MA patients in the state regardless of whether they receive benefits through fee for service or managed care. In 2018, The state launched a new phase of the program, IHP 2.0, which includes a Track 1 and Track 2 option, with only Track 2 including downside risk. Participants receive population-based payment for care coordination and are now required to design tailored health equity interventions based on the specific health needs of the IHP’s population. The IHP program reports saving over $400 million with decreased length of hospital stays and decreased use of emergency rooms.

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