Capitation reports and payments - Capitation and/or delegation supplement - 2022 Administrative Guide

UnitedHealthcare runs capitation reports by process month for both commercial and MA products. Typically, each month’s capitation report and payment reflects all current activity and retroactivity up to the standard 6-month system window. The Agreement may define a non-standard eligibility window for less than the standard 6-month system window. This non-standard eligibility window will override the standard 6-month system window. For MA plans, the non-standard eligibility retro window will not limit the retroactivity related to premium increases/decreases from CMS.

Capitation reports and first-of-the-month eligibility reports run from the same snapshot of membership data. The actual date of this snapshot varies but typically occurs on or around the 15th calendar day of the prior month for Commercial and during the last week of the prior month for MA.

The reports mentioned throughout this section are available online and provide detailed information regarding each health care provider’s capitation payments. The types of reports available include:

• Flat file — Contains approximately 198 data elements in CSV (comma separated value) format.
• Image reports — In PDF format and are at both the member and summary levels.
• Supplemental health care provider reports — Details any non-standard deductions from capitation (i.e., claims that are the financial risk of the health care provider and paid by UnitedHealthcare).

Reports are available on uhcprovider.com/reports on the date specified in your Agreement. If the due date falls on a non- business day, the reports are available the next business day.

• Reports — View image reports in a PDF format (Adobe Acrobat is required) or download the file.
• Data Files — Download the flat files from a zipped file format.
• All — Download image reports and flat files in 1 zipped file.

Supplemental health care provider Reports for Claims Withhold are available online. These reports have 2 capitation reporting options described below: Reports and data files.

Medical Drug Benefit reports are available online.

The Claims Withhold and Medical Drug Benefits reports are 1 month behind the current Capitation Report month. For example, all claims on the Claims Withhold and Medical Drug Benefit reports that paid in April will process in May capitation. To reconcile May capitation, view the April Claims Withhold and April Medical Drug Benefits Reports.

The Shared Risk Claims Report is also dated 1 month behind the current Capitation Report month. For example, all Shared Risk claims paid in May will process in the June capitation.

We maintain capitation and eligibility reports online for the current month and the previous 2 months.

We recommended you complete your capitation download in a timely manner to make sure you have complete and accurate capitation information.

CMS payments are based on the HCC Reporting. This payment methodology requires MA health plans to submit accurate diagnosis information at the greatest level of specificity available.

We offer an alternate method of reporting CMS risk adjustment data in addition to the normal claim/encounter submission process. All encounter submissions are required to process the 837 Claim/Encounter in a HIPAA 5010-compliant format. To supplement a previously submitted 837 Claim/Encounter, submit an 837 replacement Claim/Encounter, or send additional diagnosis data related to the previously submitted 837, through the Optum ASM Operations FTP process. If you choose to submit via ASM, you first need to contact the Optum ASM Operations team at cas_ops@ingenix.com to start the onboarding process.

Capitation is typically a PMPM payment to a medical group/IPA or facility that covers contracted services for assigned members. This is an alternative to the fee-for-service arrangement. Capitation payments made whether or not the member seeks services from the capitated health care provider.

• Under a shared risk arrangement, the medical group/IPA receives capitation for professional services rendered to its assigned members.
• Under a partial risk contract, the facility also receives capitation for institutional services rendered to their assigned members. Refer to the Division of Financial Responsibility (DOFR) grid in your Agreement for a detailed listing of capitated services.

Services not specifically excluded from capitation are included in the capitation payment made to the medical group/IPA or facility.

The capitation system uses a 15/30 rule to determine whether capitation is paid for the full month or not at all. If the effective date of a change falls between the first and 15th of the month, the change is effective for the current month, and capitation paid for that month. However, if the effective date falls on the 16th or later, the change reflected the first of the following month and capitation paid for the following month.

For capitation payments, we add members on the first day of the month or terminate on the last day of the month. Newborns are added on their dates of birth. We pay or recoup commercial capitation for full months.

Retroactive add

A member added retroactively between the first and the 15th of the month would generate a capitation payment for the entire month. However, a member added on the 16th or later would not generate a capitation payment for that month even though they would be considered eligible for services.

Retroactive term

A member retroactively terminated between the first and 15th of the month would generate a capitation recoupment entry for the capitation previously paid for the entire month. However, a member retroactively terminated on the 16th or later would not generate a capitation recoupment entry for the capitation previously paid for the entire month.

We make monthly capitation payments to the medical group/IPAs and capitated facilities for providing and arranging covered services to our members.

We deliver capitation payments through check or electronic funds transfer on the date listed in the Agreement. If the due date falls on a non-banking day, we deliver the capitation payment the next banking day.

To receive capitation payments through EFT, we require a signed EFT Payments form detailing the bank account and bank routing information. It takes 3 weeks for the EFT initial setup, or a change in banking information, to take effect.

We deposit capitation payments through EFT by the end of the banking/business day on the date specified in the Agreement. Note: Most financial institutions charge a per transaction fee on EFTs.

Use the UnitedHealthcare Provider Portal to access and submit Authorization Agreement Payments forms.

Capitation calculation methods are detailed in your Agreement. For commercial products, we use 5 capitation calculation methods:

Flat Rate Calculation: A flat rate (PMPM) capitation calculated by applying the flat rate for each member to yield the standard services capitation amount. The flat rate is detailed in your Agreement. Both the flat file and the image reports display each member-level transaction.

Fixed Rate Age/Gender Adjusted Calculation: Fixed rate age/gender adjusted capitation uses age/gender factors to modify the flat base rate up or down to align standard services capitation with age-weighted risk. The flat base rate multiplied by the age/gender factor yields the standard services capitation amount.

Age/gender factors work to weight for age/gender risk consideration with respect to the demographic population. UnitedHealthcare actuarially develops age/gender factors. The age/gender factors may vary between medical groups/IPAs and are included in the Agreement.

We report the age/gender factors and standard services capitation amount at the member level on the flat file. Only the standard services capitation amount is reported on the image reports.

Fixed Rate Age/Gender/Benefit Adjusted Calculation: Fixed rate age/gender/benefit adjusted capitation contains 3 components: flat base rate, age/gender factor and benefit factor.

Fixed Rate Age/Gender/Copayment Adjusted Calculation: Copayment adjustment works to evaluate the member’s copayment made directly to the health care provider. We actuarially derive the copayment adjustment for each copayment level.

• We add or subtract the copayment adjustment from the flat base rate. The sum of flat base rate +/- copayment adjustment multiplied by, the age/gender factor to yield the standard services capitation amount. We report the flat base rate, age/gender factor, copayment adjustment and standard services capitation amounts at the member level on the flat file. The image reports only show the standard services capitation amount.

Professional Risk Capitation Model: Base capitation rate × risk adjustment factor (Optum Symmetry Episode-Related Group (ERGs)) × benefit plan factor × geographic factor).

The capitation source system can administer a single commercial contract with multiple rates, if the contract requires a different rate for members enrolled in a specific plan or in-network. These contracts are identified by the Primary Care Provider Network Indicator (PCPNI). The four capitation calculation methods described in the Capitation Calculation Methods section apply. This option is available for commercial contracts. It allows you to manage your capitation under one medical group/IPA number.

Capitation transactions reports can be summarized or detailed. All individual transactions are summarized by PNI code and reported on several capitations image reports. There are also detailed care provider PNI transactions reports on both the flat file (CP7810, column U, field 21) and image reports (CP7210, CP7230). Member PNI is reported on the flat file (CP7810, column AP, field 42).

For MA products, we use 3 capitation calculation methods:

• Flat rate — A rate is paid PMPM. We calculate the flat rate capitation by applying the flat rate for each member to give us the standard services capitation amount. The Agreement details the flat rate. Both the flat file and image reports display each member level transaction.
• Percent of premium — The percent of CMS premium calculation begins with the premium identified from the CMS Monthly Membership Report (MMR), less any premium adjustments, and multiplied by the contracted percentage.
  
  The net of all adjustments is the CMS premium. The flat file (1 R record type), shows the CMS premium at the member level with the field name Cap_Premium_Gross_Cap.
  
  Medical groups/IPAs and capitated facilities with a percentage-of-premium contract receive their contracted percentage rate of this cap premium gross cap amount as the standard services capitation amount for each member.
  
  The flat file (1 R record type) shows the standard services capitation amount at the member level by summing the fields Group_ Capitation_Amt plus Facility_Capitation_Amt. Image reports also show the standard services capitation amount at the member level.
• Risk adjusted fixed rate —We calculate capitation using the base rate detailed in the Agreement, multiplied by various factors.

It contains 3 components:

1. Base rate — as detailed in the Agreement.
2. Risk Adjusted Factor (RAF) — the score for each MA plan member taken directly from CMS’ Monthly Membership Report (MMR). This factor is reported on the flat file and image reports.
3. Health status variables are the base rate adjusted for members categorized as ESRD or Hospice by CMS on the MMR. For details on the ESRD and Hospice adjustments, see your Agreement.

The risk-adjusted fixed rate capitation amount will vary monthly resulting in changes in the risk adjustment factor and demographic factors for MA plan members for that month. Both the flat file and image reports show each member-level transaction. The risk-adjusted fixed rate capitation has the standard 6-month system retro window. Payments made by CMS outside the 6-month retroactivity window are not included.

The capitation source system can administer a single MA contract with multiple Percent of Premium rates, if the contract requires a different rate for members enrolled in a specific plan or network. These contracts are identified by the Primary Care Provider Network Indicator (PCPNI). The capitation calculation methods described in the capitation calculation section apply.

This option is available for MA contracts. It allows you to manage your capitation under 1 medical group/IPA number. Capitation transactions reports can be summarized or detailed. All individual transactions are summarized by PNI code and reported on several capitations image reports. There are also detailed health care provider PNI transactions reports on both the flat file (CP7810, column U) and image reports (CP7010, CP7030). Member PNI is reported on the flat file (CP7810, column AP).