SCAN Health Plan

Last updated
SCAN Health Plan
Company type not-for-profit
Industry healthcare
Founded1977
FounderSenior Care Action Network
Headquarters Long Beach, California
Key people
Sachin H. Jain, MD, MBA, FACP,
Chief Executive Officer
Revenue $3.5 billion (2021) [1]
Total assets US$861 million (2021)
Number of employees
1,465
Website www.scanhealthplan.com

SCAN Health Plan (SCAN) is a not-for-profit, Medicare Advantage based in Long Beach, California. Founded in 1977, SCAN provides healthcare coverage to Medicare beneficiaries in California, Arizona, Texas and Nevada, serving more than 285,000 members. It is one of the largest not-for-profit Medicare Advantage plans in the country. [2] SCAN Health Plan is part of SCAN Group.

Contents

Early history

The Senior Care Action Network, or SCAN, was created based on the proposal developed by the team at USC. (The new network was briefly known as the Long Beach Geriatric Healthcare Council, Inc., before changing its name to SCAN.) [3] Their healthcare delivery model was centered on assessing each senior's needs on an individual level in order to coordinate appropriately for each unique case, providing specific social services and medical care through a network of local agencies, community providers and hospitals. [4]

Multipurpose Senior Services Program

In 1979, the state of California selected SCAN as one of eight sites for the state's Multipurpose Senior Services Program (MSSP). This program exists to help elderly Medi-Cal recipients in the Long Beach area stay out of nursing institutions as long as possible by providing home-based services to deliver the care they need. For the last 40 years, SCAN has served California's most at-risk seniors as one of the state's 62 MSSP sites through Independence at Home, a community service of SCAN. [5]

Social HMO

Until 1983, SCAN had been relatively unknown outside of Long Beach. That changed when it was awarded a contract from the federal government as one of four sites nationwide to pilot the Social Health Maintenance Organization (SHMO) demonstration program. [6] The SHMO concept expanded what SCAN was already doing (offering home-based services so seniors could avoid or delay nursing home placement) to also include the at-risk elderly enrolled in Medicare and provide healthcare coverage to other Medicare beneficiaries.

In November 1984, under a three-and-a-half-year contract with the federal government, SCAN was officially licensed as a health plan in California. In March 1985, it began enrolling members in its Social HMO. [7] Congress renewed the SHMO demonstration project five times before the program was ended in 2004. [8]

Growth and expansion

Between 1996 and 1998, SCAN more than doubled its membership by expanding into three Southern California counties (Orange, Riverside and San Bernardino).

When the government ended the SHMO program, SCAN continued to operate as a Medicare Advantage plan, offering Medicare beneficiaries healthcare coverage and services beyond what the federal program alone would cover. SCAN continued to grow, [9] extending its service area and membership as it expanded in both Southern and Northern California. [10] [11]

In 2021 SCAN grew by more than 60,000 members, in large part due to the popularity of its Embrace Venture plan, a product that offered a Medicare Part B premium give-back. The give-back was offered during a period of heightened inflation in order to ease the economic burden many seniors faced. [12]

SCAN's growth during this period was also fueled by its expansion into three Arizona counties (Maricopa, Pima and Pinal) and Clark County, Nevada, marking the first time SCAN expanded its reach beyond California into two states simultaneously.

During the 2022 Annual Enrollment Period, SCAN's membership grew to more than 285,000 people. That growth was fueled by the launch of a range of new products including: Affirm, the first ever LGBTQ+ Medicare Advantage plan and SCAN's expansion into Texas and Nye County, Nevada.

In late 2022, SCAN announced that it and CareOregon had entered into a definitive agreement to combine as a mission-driven not-for-profit healthcare organization under the name HealthRight Group. In a press release, the organization wrote, "HealthRight will bring together the expertise and resources of two nationally renowned organizations to improve access for people traditionally underserved by the US healthcare system [13] [14] ." Pending regulatory approval, the combined entity will have revenues of $6.8B and will serve nearly 800,000 health plan members through its Medicare and Medicaid managed care offerings. The companies cancelled the merger in February 2024. [15]

Quality of care

In 2022, SCAN Health Plan received an overall rating of 4.5 out of 5 stars.* for the sixth year in a row. The only Medicare Advantage plan in California to do so. This 5-star Quality Rating is given by the Centers for Medicaid and Medicare Services (CMS) and is based on SCAN's offered plans (except SCAN Healthy at Home, an HMO Special Needs Plan; and VillageHealth, an HMO-POS Special Needs Plan). [16]

*Medicare evaluates plans based on a 5-star rating system. Star ratings are calculated each year and may change from one year to the next.

In 2022, SCAN was also named to U.S. News & World Report's 2023 list of Best Medicare Advantage Companies for the fifth consecutive year. [17]

The plan also achieved a 91%-member satisfaction rating for 2023, according to the Centers for Medicare & Medicaid Services (CMS). It is the fifth year in a row that SCAN has scored 90% or higher.

Overall, SCAN's California CMS Star rating announced by CMS in October 2023 reflected a decline to 3.5 from 4.5 stars. SCAN led successful litigation against CMS and its STAR rating was restored to 4 stars, reflecting 11 years in a row that SCAN had achieved > 4 star rating. SCAN’s industry leadership resulted in improved payments to more than 60 health plans affecting > 1m beneficiaries. [18]

Coverage by counties

SCAN provides healthcare coverage to more than 270,000 Medicare beneficiaries in 13 counties in Northern California, Southern California, Nevada, and Arizona. [19]

Northern CaliforniaAlameda County
Napa County
San Francisco County

San Mateo County
Santa Clara County
Sonoma County
Stanislaus County

Southern CaliforniaLos Angeles County
Orange County
Riverside County
San Bernardino County
San Diego County
Ventura County
NevadaClark County

Nye County

ArizonaMaricopa County

Pima County Pinal County

TexasHarris County

Bexar County

Community benefits

Independence at Home (IAH), a community service of SCAN Health Plan, provides intensive care management for low-income seniors and builds community capacity to serve older adults. The services are provided through various county and state contract programs, the largest of which is the Multipurpose Senior Services Program and programs funded by SCAN Health Plan to support its mission of keeping seniors healthy and independent. IAH also provides a resource and referral line to connect seniors and their caregivers to needed services and support in Los Angeles, Orange, Riverside and San Bernardino counties and a virtual senior center for older adults in all the communities served by SCAN Health Plan. [20]

Diversification

Beginning in 2020, SCAN began a diversification program through its SCAN Group parent organization aimed at developing to deliver evidence-based, patient-centered care to older adults. Beginning in 2021, SCAN launched four new companies:

Related Research Articles

<span class="mw-page-title-main">Medicare (United States)</span> US government health insurance program

Medicare is a federal health insurance program in the United States for people age 65 or older and younger people with disabilities, including those with end stage renal disease and amyotrophic lateral sclerosis. It was begun in 1965 under the Social Security Administration and is now administered by the Centers for Medicare and Medicaid Services (CMS).

<span class="mw-page-title-main">Centers for Medicare & Medicaid Services</span> United States federal agency

The Centers for Medicare & Medicaid Services (CMS) is a federal agency within the United States Department of Health and Human Services (HHS) that administers the Medicare program and works in partnership with state governments to administer Medicaid, the Children's Health Insurance Program (CHIP), and health insurance portability standards. In addition to these programs, CMS has other responsibilities, including the administrative simplification standards from the Health Insurance Portability and Accountability Act of 1996 (HIPAA), quality standards in long-term care facilities through its survey and certification process, clinical laboratory quality standards under the Clinical Laboratory Improvement Amendments, and oversight of HealthCare.gov. CMS was previously known as the Health Care Financing Administration (HCFA) until 2001.

<span class="mw-page-title-main">Medicare Prescription Drug, Improvement, and Modernization Act</span>

The Medicare Prescription Drug, Improvement, and Modernization Act, also called the Medicare Modernization Act or MMA, is a federal law of the United States, enacted in 2003. It produced the largest overhaul of Medicare in the public health program's 38-year history.

<span class="mw-page-title-main">Health Net</span> American health care insurance provider

Health Net, LLC, a subsidiary of Centene Corporation, is an American health care insurance provider. Health Net and its subsidiaries provide health plans for individuals, families, businesses and people with Medicare and Medicaid, as well as commercial, small business, and affordable care insurance.

The term managed care or managed healthcare is used in the United States to describe a group of activities intended to reduce the cost of providing health care and providing American health insurance while improving the quality of that care. It has become the predominant system of delivering and receiving American health care since its implementation in the early 1980s, and has been largely unaffected by the Affordable Care Act of 2010.

...intended to reduce unnecessary health care costs through a variety of mechanisms, including: economic incentives for physicians and patients to select less costly forms of care; programs for reviewing the medical necessity of specific services; increased beneficiary cost sharing; controls on inpatient admissions and lengths of stay; the establishment of cost-sharing incentives for outpatient surgery; selective contracting with health care providers; and the intensive management of high-cost health care cases. The programs may be provided in a variety of settings, such as Health Maintenance Organizations and Preferred Provider Organizations.

Dual-eligible beneficiaries refers to those qualifying for both Medicare and Medicaid benefits. In the United States, approximately 9.2 million people are eligible for "dual" status. Dual-eligibles make up 14% of Medicaid enrollment, yet they are responsible for approximately 36% of Medicaid expenditures. Similarly, duals total 20% of Medicare enrollment, and spend 31% of Medicare dollars. Dual-eligibles are often in poorer health and require more care compared with other Medicare and Medicaid beneficiaries.

In the healthcare industry, pay for performance (P4P), also known as "value-based purchasing", is a payment model that offers financial incentives to physicians, hospitals, medical groups, and other healthcare providers for meeting certain performance measures. Clinical outcomes, such as longer survival, are difficult to measure, so pay for performance systems usually evaluate process quality and efficiency, such as measuring blood pressure, lowering blood pressure, or counseling patients to stop smoking. This model also penalizes health care providers for poor outcomes, medical errors, or increased costs. Integrated delivery systems where insurers and providers share in the cost are intended to help align incentives for value-based care.

The California Medical Assistance Program is the California implementation of the federal Medicaid program serving low-income individuals, including families, seniors, persons with disabilities, children in foster care, pregnant women, and childless adults with incomes below 138% of federal poverty level. Benefits include ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance use disorder treatment, dental (Denti-Cal), vision, and long-term care and support. Medi-Cal was created in 1965 by the California Medical Assistance Program a few months after the national legislation was passed. Approximately 15.28 million people were enrolled in Medi-Cal as of September 2022, or about 40% of California's population; in most counties, more than half of eligible residents were enrolled as of 2020.

In the United States, health insurance helps pay for medical expenses through privately purchased insurance, social insurance, or a social welfare program funded by the government. Synonyms for this usage include "health coverage", "health care coverage", and "health benefits". In a more technical sense, the term "health insurance" is used to describe any form of insurance providing protection against the costs of medical services. This usage includes both private insurance programs and social insurance programs such as Medicare, which pools resources and spreads the financial risk associated with major medical expenses across the entire population to protect everyone, as well as social welfare programs like Medicaid and the Children's Health Insurance Program, which both provide assistance to people who cannot afford health coverage.


Medicare Advantage is a type of health plan offered by Medicare-approved private companies that must follow rules set by Medicare. Most Medicare Advantage Plans include drug coverage. Under Part C, Medicare pays a sponsor a fixed payment. The sponsor then pays for the health care expenses of enrollees. Sponsors are allowed to vary the benefits from those provided by Medicare's Parts A and B as long as they provide the actuarial equivalent of those programs. The sponsors vary from primarily integrated health delivery systems to unions to other types of non profit charities to insurance companies. The largest sponsor is a hybrid: the non-profit interest group AARP using UnitedHealth.

Healthcare reform in the United States has a long history. Reforms have often been proposed but have rarely been accomplished. In 2010, landmark reform was passed through two federal statutes: the Patient Protection and Affordable Care Act (PPACA), signed March 23, 2010, and the Health Care and Education Reconciliation Act of 2010, which amended the PPACA and became law on March 30, 2010.

Amerigroup is an American health insurance and managed health care provider. Amerigroup covers 7.7 million seniors, people with disabilities, low-income families and other state and federally sponsored beneficiaries, and federal employees in 26 states, making it the nation's largest provider of health care for public programs. In July 2023, it was announced that Amerigroup's name would change to Wellpoint in six states beginning in January 2024.

Medicaid managed care Medicaid and additional services in the United States through an arrangement between a state Medicaid agency and managed care organizations (MCOs) that accept a set payment – "capitation" – for these services. As of 2014, 26 states have contracts with MCOs to deliver long-term care for the elderly and individuals with disabilities. There are two main forms of Medicaid managed care, "risk-based MCOs" and "primary care case management (PCCM)."

Bundled payment is the reimbursement of health care providers "on the basis of expected costs for clinically-defined episodes of care." It has been described as "a middle ground" between fee-for-service reimbursement and capitation, given that risk is shared between payer and provider. Bundled payments have been proposed in the health care reform debate in the United States as a strategy for reducing health care costs, especially during the Obama administration (2009–2016). Commercial payers have shown interest in bundled payments in order to reduce costs. In 2012, it was estimated that approximately one-third of the United States healthcare reimbursement used bundled methodology.

<span class="mw-page-title-main">L.A. Care Health Plan</span>

The Local Initiative Health Authority for Los Angeles County is a public agency that provides health insurance for low-income individuals in Los Angeles County through four health coverage programs including Medi-Cal.

An accountable care organization (ACO) is a healthcare organization that ties provider reimbursements to quality metrics and reductions in the cost of care. ACOs in the United States are formed from a group of coordinated health-care practitioners. They use alternative payment models, normally, capitation. The organization is accountable to patients and third-party payers for the quality, appropriateness and efficiency of the health care provided. According to the Centers for Medicare and Medicaid Services, an ACO is "an organization of health care practitioners that agrees to be accountable for the quality, cost, and overall care of Medicare beneficiaries who are enrolled in the traditional fee-for-service program who are assigned to it".

Sachin H. Jain is an American physician who held leadership positions in the Center for Medicare and Medicaid Services (CMS) and the Office of the National Coordinator for Health Information Technology (ONC). From 2015 to 2020, he served as president and chief executive officer of the CareMore Health System. In June 2020, it was announced that he would join the SCAN Group and Health Plan as its new president and CEO. He is also adjunct professor of medicine at the Stanford University School of Medicine and a Contributor at Forbes. In 2018, he was named one of American healthcare's most 100 most influential leaders by Modern Healthcare magazine (#36).

Health care finance in the United States discusses how Americans obtain and pay for their healthcare, and why U.S. healthcare costs are the highest in the world based on various measures.

Better Medicare Alliance (BMA) is an American 501(c)(4) non-profit advocacy coalition that supports sustaining and improving Medicare Advantage, a private health insurance option available to Medicare beneficiaries. BMA advocates for policies that ensure access, quality, and affordability to improve outcomes for all Medicare Advantage beneficiaries.

Clover Health Investments, Corp. is an American health care company founded in 2014. The company provides Medicare Advantage (MA) insurance plans and operates as a direct contracting entity with the U.S. government. The company manages care for Medicare beneficiaries in 11 states and started trading publicly on January 8, 2021.

References

  1. "Senior Care Action Network Health Plan (SCAN) | Long Beach, CA | Cause IQ". Archived from the original on 2021-10-21. Retrieved 2022-02-09.
  2. "SCAN Health Plan Names Top Performing Medical Groups". www.scanhealthplan.com. Archived from the original on 2018-07-07. Retrieved 2018-07-06.
  3. "SCAN Celebrates 40 Years of Senior Care in Long Beach". 13 August 2017. Archived from the original on 30 July 2018. Retrieved 30 July 2018.
  4. "About SCAN". Archived from the original on 2018-07-30. Retrieved 2018-07-06.
  5. "Multipurpose Senior Services Program-Contacts (By County)". Archived from the original on 2018-08-13. Retrieved 2018-08-13.
  6. Greenberg, Jay; Leutz, Walter; Greenlick, Merwyn; Malone, Joelyn; Ervin, Sam; Kodner, Dennis (1988). "The Social HMO Demonstration: Early Experience". Health Affairs. 7 (3): 66–79. doi:10.1377/hlthaff.7.3.66. PMID   3145917. Archived from the original on 2021-05-25. Retrieved 2018-08-13.
  7. "Migrated Medicare Demonstration SHMO Report" (PDF). Archived (PDF) from the original on 2019-08-29. Retrieved 2018-07-30.
  8. "HR4954". Archived from the original on 2018-07-31. Retrieved 2018-07-30.
  9. "Summary of H.R. 4954 (107th): Medicare Modernization and Prescription Drug Act of 2002". Archived from the original on 2018-07-31. Retrieved 2018-07-30.
  10. "Archived copy" (PDF). Archived from the original (PDF) on 2019-09-25. Retrieved 2022-02-09.{{cite web}}: CS1 maint: archived copy as title (link)
  11. "SCAN health plan questions | The Health Insurance Guys | napavalleyregister.com". Archived from the original on 2019-09-25. Retrieved 2022-02-09.
  12. "CEO Jain: How SCAN Health Plan went 'viral' during Medicare open enrollment".
  13. "HealthRight Group A National Mission-Driven Healthcare Organization". SCAN Health Plan. SCAN Health Plan. Retrieved 30 October 2023.
  14. "SCAN Healthright".
  15. https://www.healthleadersmedia.com/strategy/scan-group-careoregon-scrap-merger-amid-pushback [ bare URL ]
  16. "Archived copy". Archived from the original on 2018-10-17. Retrieved 2022-02-09.{{cite web}}: CS1 maint: archived copy as title (link)
  17. "4.5 Star-Rated SCAN Health Plan Named to U.S. News Best List for Fifth Straight Year".
  18. "2024 Medicare Advantage and Part D Star Ratings".
  19. "SCAN Health Plan Medicare Advantage Plans with Part D (Prescription Drug) Coverage | US News & World Report". Archived from the original on 2018-06-16. Retrieved 2018-08-13.
  20. "Independence at Home". independenceathome.org. Retrieved 2022-08-29.
  21. "Healthcare for Homeless Seniors: Los Angeles Councilmember Nithya Raman Awards Grant to SCAN's Healthcare in Action Medical Group". www.scanhealthplan.com. Retrieved 2022-08-29.
  22. "Welcome to Welcome Health". www.scanhealthplan.com. Retrieved 2022-08-29.
  23. "SCAN Acquires The Residentialist Group Launches Homebase Medical". www.scanhealthplan.com. Retrieved 2022-08-29.
  24. "SCAN and Commonwealth Care Alliance Partner to Launch myPlace Health". www.scanhealthplan.com. Retrieved 2022-08-29.