threats to medicaid and the aca: impact on older tennesseans · 8/3/2017 · impact on older...
TRANSCRIPT
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Threats to Medicaid and the ACA: Impact on Older Tennesseans
Christopher Coleman
Tennessee Justice Center
August 3, 2017
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What does TJC do?
Advocate for Tennesseans
Provide trainings
Help clients one-on-one
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Statewide ReachTJC Clients Served by County in 2016
87 out of 95 counties
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Plans to Repeal and Replace the ACA
• AHCA
• BCRA
• BCRA II
• ORRA
• Cassidy-Collins
• “Skinny Repeal”
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ACA Repeal Fails in the Senate
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So that means it’s all over, right?
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Not so fast ...
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And . . .
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Why would they keep trying to repeal?
Seven years of promises
and…
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TAX CUTS!!!!
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Cassidy-Graham Bill• Would block grant to states all federal money
currently spent on the ACA’s tax credits and cost sharing reductions ($110B in 2016).
• Would block grant Medicaid
• Would maintain rules on pre-existing conditions, but not essential health benefits
• Repeal individual and employer mandate
• Funds would be restricted to healthcare spending
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House Budget
• $200 billion in cuts to mandatory programs
• Medicaid per capita caps or block grants
• Medicaid work requirements
• Restructuring MediCARE, including means-testing
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House Budget
Rep. Diane Black (R-TN) is chair of the House Budget Committee.
She needs to hear from you!
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Diane Black’s House
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All the Threats Share Similar Features
1. Restructuring premiums subsidies
2. Weakening the ACA’s consumer protections
3. Restructuring Medicaid financing
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Restructuring Premium Subsidies
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Premium Subsidies under the ACAACA premiums subsidies are need-based.
Who is eligible? Individuals and families with
• Household incomes between 100% and 400% FPL
• Lawfully present in the U.S.
• Not be eligible for other “minimum essential coverage”
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How is the Amount of the Tax Credit Determined?
Credit amount
=
Cost of benchmark plan
-
Expected premium contribution
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Expected Premium Contribution (for an individual)
Annual Household Income Expected Premium Contribution
% of FPL Income Amount % of Income Annual Dollar Amount
100-150% $11,490 - $16,755 2 - 4% $230 - $670
150-200% $16,755 - $22,340 4 - 6.3% $670 - $1,407
200-250% $22,340 - $27,925 6.3 – 8.05% $1,407 - $2,262
250-300% $27,925 - $33,510 8.05 – 9.5% $2,262 – $3,183
300-400% $33,510 - $44,680 9.5% $3,183 - $4,245
> 400% > $44,680 n/a n/a
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Gunnar (25)
Income of $22,340 (200% FPL)Expected contribution: $1,448Benchmark Premium: $5,000Premium Tax Credit: $3,552
Coleman (62)
Income of $22,340 (200% FPL)Expected contribution: $1,448 Benchmark Premium: $15,000Premium Tax Credit: $13,552
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Gunnar (25)
Income of $22,340 (200% FPL)Expected contribution: $1,448Benchmark Premium: $5,000Premium Tax Credit: $3,552
Coleman (62)
Income of $22,340 (200% FPL)Expected contribution: $1,448Benchmark Premium: $15,000Premium Tax Credit: $13,552
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Gunnar (25)
Income of $22,340 (200% FPL)Expected contribution: $1,448Benchmark Premium: $5,000Premium Tax Credit: $3,552
Coleman (62)
Income of $22,340 (200% FPL)Expected contribution: $1,448 Benchmark Premium: $15,000Premium Tax Credit: $13,552
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Gunnar (25)
Income of $22,340 (200% FPL)Expected contribution: $1,448Benchmark Premium: $5,000Premium Tax Credit: $3,552
Coleman (62)
Income of $22,340 (200% FPL)Expected contribution: $1,448 Benchmark Premium: $15,000Premium Tax Credit: $13,552
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Benchmark Premium, $5,000
$1,448 $1,448
$3,552
$13,552
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Gunnar, Age 26 Coleman, Age 62
Tax Credit
Contribution
Benchmark Premium, $15,000
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AHCA Tax CreditsBased Solely on Age
• <30: $2,000
• 30-40: $2,500
• 40-50: $3,000
• 50-60: $3,500
• 60+: $4,000
Available for individuals with income up to $75,000
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Gunnar (25)
Income of $22,340 (200% FPL)Sticker Premium: $4,000Premium Tax Credit: $2,000Net Premium: $2,000
Coleman (62)
Income of $22,340 (200% FPL)Sticker Premium: $20,000Premium Tax Credit: $4,000Net Premium: $16,000
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Gunnar (25)
Income of $22,340 (200% FPL)Sticker Premium: $4,000Premium Tax Credit: $2,000Net Premium: $2,000
Coleman (62)
Income of $22,340 (200% FPL)Sticker Premium: $20,000Premium Tax Credit: $4,000Net Premium: $16,000
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Gunnar (25)
Income of $22,340 (200% FPL)Sticker Premium: $4,000Premium Tax Credit: $2,000Net Premium: $2,000
Coleman (62)
Income of $22,340 (200% FPL)Sticker Premium: $20,000Premium Tax Credit: $4,000Net Premium: $16,000
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Sticker Premium, $4,000
$2,000
$16,000
$2,000
$4,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Gunnar, Age 26 Coleman, Age 62
Tax Credit
Net Premium
Sticker Premium, $20,000
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Weakening Consumer Protections
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Consumer Protections
Before the ACA Now
Medical UnderwritingDenials for pre-existing conditions
Guaranteed IssueNo denials based on health status
Exclusions and RidersPre-existing conditions are not covered
Full CoverageAll conditions covered on day one
Rating FactorsPremiums adjusted for age, tobacco, gender, health status,
etc.
Modified Community ratingPremiums adjusted for age, tobacco, and geography only
Varied benefitsPlans can exclude services like maternity care, cancer
treatment
Essential Health BenefitsPlans must cover 10 essential health benefits
Benefit LimitsPlans can impose annual and lifetime dollar limits
No Annual or Lifetime Limits
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Threats to Consumer Protection
• States can waive preexisting condition protections
• No essential health benefits
• Annual and lifetime limits allowed
• Larger age rating bands (5:1)
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Essential Health BenefitsEvery health plan must cover the following services:
• Ambulatory patient services
• Emergency services
• Hospitalization
• Pregnancy, maternity, and newborn care (both before and after birth)
• Mental health and substance use disorder services, including behavioral health treatment
• Prescription drugs
• Rehabilitative and habilitative services and devices
• Laboratory services
• Preventive and wellness services and chronic disease management
• Pediatric services, including oral and vision care
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0-11 yrs12 - 19 yrs
20 - 59 yrs
60 + yrs
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Percent taking at least one prescription drug, by age
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Restructuring Medicaid Financing
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Medicaid LTSS in Tennessee
• TennCare’s Long-Term Services and Supports (LTSS) program (called CHOICES) is for seniors and adults with disabilities
• Medicaid pays for 61% of all LTSS – both nursing home and home and community-based services – in TN.
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Medicare Savings Programs• Qualified Medicare Beneficiary (QMB)
Program
• Specified Low-Income Medicare Beneficiary (SLMB) Program
• Qualifying Individual (QI) Program
• Qualified Disabled and Working Individuals (QDWI) Program
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TennCare Funding Today
• For 50 years, Medicaid has been financed by a federal-state partnership.
• Federal government pays a fixed portion of the costs (about 65% in Tennessee).
• Federal spending increases in response to rise in cost of providing care to enrollees.
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TennCare Under Replacement Plans
Around $500 million per year reduction in federal funding for TennCare.
State options:
1. Per Capita Cap
2. Block grant
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Medicaid Per Capita Cap
• Federal funding would be capped based on how much states spent per enrollee in 2016.
• Federal funding would cover a decreasing share of medical costs over time.
• Would permanently disadvantage Tennessee relative to other states.
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Medicaid Per Capita CapState Federal Medicaid Spending Per Older
Individual
New York $14,168
Tennessee $10,234
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This inequity in spendingwould be locked in for the future.
State Federal Medicaid Spending Per Person with a Disability
New York $16,904
Tennessee $9,542
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Medicaid Block Grant
States could choose to take a fixed total amount of annual federal Medicaid funding.
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TennCare Under CapsWhatever choice the state makes, less federal funding means the state will have no flexibility except how to allocate the losses.
1. Eligibility
2. Benefits
3. Provider-reimbursement
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What would be cut?State would have the option, but . . .
• Less than 3% of TennCare enrollees are in the CHOICES program
• CHOICES accounts for over 20% of TennCarespending.
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Any other good news?
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“Renewal Packet”
• The state still lacks a functioning computer system for determining eligibility.
• TennCare is mailing massive 98-page “Renewal Packets” to families to complete and return.
• Not pre-populated with information already available to the state.
• Example “Renewal Packet”: https://www.tn.gov/assets/entities/tenncare/attachments/ExampleRenewalPacket.pdf
4910/27/2016
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LTSS “Renewal Packet”• Long-Term Services and Supports (LTSS)
redetermination packets are 119 pages.
• The state said they resumed LTSS redeterminations in August.
• Example LTSS “Renewal Packet”: https://www.tn.gov/assets/entities/tenncare/attachments/ExampleLTSSRenewalPacket.pdf
5010/27/2016
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Packets for MSPs
10/27/2016 51
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Timeframes
• 40 days to fill out and return the redetermination packet.
– Failure submit packet or document eligibility will result in termination of TennCare.
– Save fax receipt, OR request certified mail receipt
• 10 days to respond to request for more information.
5210/27/2016
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Best Practices• Contact Tennessee Health Connection to make
sure they have the correct address on file, and report any changes.
• If you have not received a packet, ask Tennessee Health Connection if you were due to receive one.
• Make copies of all documents you send to TennCare, and ask the post office for proof of mailing.
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Best Practices• Failure to return the packet or respond to request
for additional information will lead to loss of coverage.
• Packets are complex and difficult to complete.
• The packets fail to capture information needed to ensure that people who are eligible retain their coverage.
• There is much greater need for help in this process than in applying for coverage on the Marketplace.
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Best Practices• Document everything!
• Complete and return all forms by the deadlines. If you cannot meet a deadline, send what you have and ask for more time to send the rest.
• If terminated, appeal with continuation of benefits within 10 days of the termination notice.
• If an enrollee has a disability, call Tennessee Health Connection and tell them. Ask them for help completing the forms. Keep a record of the call.
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Get Involved
• Learn more information at www.tnjustice.org/coverage-matters
• Follow us on Facebook
• Join our advocacy listserv
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Questions?
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Thank you for joining us!
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www.twitter.com/tnjusticecenter
“Of all the forms of inequality,injustice in health care is the most shocking and inhumane.”-Martin Luther King, Jr.