Review of Medicare Prescription Drug, Improvement, and Modernization Act Modifications To Calendar Year 2004 Proposal - Health Alliance Plan of Michigan, Detroit, Michigan

EXECUTIVE SUMMARY:

The objective of our review was to determine whether the Health Alliance's Plan of Michigan's use of its Medicare Prescription Drug, Improvement, and Modernization Act (MMA) payment increases was adequately supported and allowable under MMA.  We determined that the increased MMA payments were used to enhance beneficiary access to providers and to increase the drug benefits.  With MMA funds provided by Health Alliance, Henry Ford enhanced beneficiary access by opening up seven new sites and enrollment increased by approximately 3,000 new Medicare members for 2004. Additionally, the drug coverage limit was increased from $200 to $400 for 2004. Therefore, this report contains no recommendations for corrective action.