WHAT IS AN IHP

An Overview

In 2008, Minnesota passed health care legislation to improve affordability, expand coverage and improve the overall health of Minnesotans. In addition, the 2010 Legislature mandated that the Minnesota Department of Human Services (DHS) develop and implement a demonstration testing alternative health care delivery systems, which includes accountable care organizations (ACOs).

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This led to the development of the Integrated Health Partnerships (IHP) demonstration, formerly called the Health Care Delivery Systems (HCDS) demonstration, which strives to deliver higher quality and lower cost health care through innovative approaches to care and payment.

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With this demonstration, Minnesota is one of a growing number of states to implement an ACO model in its Medical Assistance (Medicaid) program, with the goal of improving the health of the population and of individual members. In their first year of participation, delivery systems can share in savings. After the first year, they also share the risk for losses. Delivery systems’ total costs for caring for Medical Assistance members are measured against targets for cost and quality.