CCNC Saves North Carolina Money — Lots of It
Community Care is a national model for achieving extreme healthcare cost savings for Medicaid, the Aged, Blind & Disabled, and patients who are dually-eligible (Medicaid/Medicare). According to a report prepared by the National Governors Association in December 2009, North Carolina was one of only three states in the nation to have a DECREASE in total Medicaid spending between FY 2008 and FY 2009. Every actuarial assessment of CCNC has yielded similar findings: the program is responsible for hundreds of millions of dollars of cost savings. Learn more below.
Money Savings Since Inception By State Fiscal Year (SFY)
The figures below highlight how CCNC has continued to achieve remarkable cost savings for North Carolina since its inception and continued development.
- Through January 2010: $1,200,000,000 — Through January 2010, Medicaid costs on a per member per month (pmpm) basis are 5.3% below FY 2009 pmpm costs. The state projected a 5.8 percent increase in 2009, but with a 5.3% decrease, overall savings of 11% (equaling approximately $ 1.2 billion) have been achieved.1
- SFY 2003-2007: $568,000,000 for AFDC / $400,000,000 for ABD — CCNC has saved $568 million for AFDC and $400 million for ABD (Mercer). 2
- SFY 2005 and 2006: $231,000,000 — CCNC approximated savings is $231,000,000. 3
- SFY 2004: $124,000,000 — CCNC approximated savings is $124,000,000. 4
- SFY 2003: $60,000,000 — CCNC approximated savings is $60,000,000. 5
Other Financial Facts
- Mercer Consulting concluded that costs in the CCNC program are significantly less than those for comparable fee-for-service programs. Source: Mercer Executive Summary, 2008, pg. 2.
- UNC's Sheps Center estimated a $3.5 million dollar savings resulting from CCNC's asthma management program and a $2.1 million savings resulting from CCNC's diabetes management program in SFY 2000-2002 Source: Evaluation of Community Care of North Carolina Asthma and Diabetes Management Initiatives: January 2000- December 2002, published April 2004, pg. 25.
- In 2001, the Program had a 34% lower hospital admission rate for enrollees under 21 than in the control group, and an 8% lower ED rate than in the control group. In addition, the average episode cost for children enrolled in CCNC was 24% lower than those not enrolled in the program (CCNC cost per episode = $687 versus $853). Source: Community Care of North Carolina, Program Impact section.