Washington DC Update (2/8/17)

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ACA Repeal and Medicaid Restructuring

ACA

The Republicans in Congress are still trying to figure out how to move forward with their plans to “repeal and replace” the Affordable Care Act (ACA or “Obamacare”), or even to “repair” it, a term some have adopted recently. There have been a number of hearings on issues and bills related to amending the law, but a comprehensive plan has not yet emerged. In a Sunday interview with Bill O’Reilly, the president said he thought it might take until next year to figure out a way to replace the ACA, but House leaders are still talking about moving legislation – at least to enact a delayed repeal – this spring. Yet, a number of Members of Congress have said they would not support repealing of the ACA without simultaneously enacting a law to replace it. Moreover, the uncertainty of a repeal law with a delayed effective date – to give Congress time to develop an ACA alternative – could drive insurance companies away from participating in the exchanges. Therefore, there have been talks with insurance companies about ways to ensure their stability during the delay period or the transition to a new plan. See the New York Times article “G.O.P. Campaign to Repeal Obamacare Stalls on the Details.” 

As reported in the past, the president and many congressional Republicans have indicated that they will continue policies to protect consumers with pre-existing conditions, but at the same time do away with the requirement that everyone have insurance (the “individual mandate”). These two aims that are generally considered incompatible given the need to have an insurance pool that includes a number of healthy people, some of whom would forego insurance if not required to have it. A proposed solution to this dilemma is to require people to have continuous coverage in order to be protected from pre-existing condition exclusions. In fact, the chairman of the relevant House committee recently unveiled and held a hearing on continuous-coverage legislation and other ideas for replacing the ACA. See the op-ed Repealing Obamacare and Rebuilding Our Health Care System by Chairman Greg Walden (R-OR) and Health Subcommittee Chairman Michael Burgess (R-TX). Rep. Frank Pallone (D-NJ), Ranking Democrat on the committee, among others, assert that a continuous-coverage requirement will not provide adequate protection, however, and that the Walden bill would permit insurers to charge higher premiums for those with pre-existing conditions.

Information for states on the impact of ACA repeal:

Medicaid

Last week, subcommittees of the House Energy and Commerce Committee held two hearings about the Medicaid program. On January 31, the Subcommittee on Oversight and Investigations held a hearing on “Medicaid Oversight: Existing Problems and Ways to Strengthen the Program” (links to testimony and Republican staff background memo). A witness who oversaw Medicaid and CHIP in the Clinton administration (Tim Westmoreland) testified: “Rather than further supporting constructive State and Federal efforts to ensure that every dollar is well spent, these proposals would slash and cap Federal funding not just for the bad actors but for the good guys who are acting on behalf of people who are eligible and in need. Reduced, capped Federal funding does nothing to improve program integrity. But it does put coverage at risk for low-income Americans and shifts the costs for the most expensive services to States, localities, providers, and charities.”

On February 1, the Subcommittee on Health held a hearing on “Strengthening Medicaid and Prioritizing the Most Vulnerable” (links to testimony and Republican staff background memo). For opposing opinions on the impact of the bills discussed at the hearing, see this op-ed from the bills’ sponsors, and this critique from the President and CEO of the Children’s Mental Health Network.

Resources related to Medicaid proposals:

Alternative Approaches to Medicaid Financing: Choice of Design Elements in Alternative Financing Proposals, from MACPAC

MEDICAID/CHIP NEWS, INFORMATION, AND RESOURCES

Medicaid and Children with Special Health Care Needs

This issue brief from the Kaiser Family Foundation (January 31, 2017) describes children with special health care needs (CSHCN) and explains how they can become eligible for Medicaid, and describes the services for CSHCN that are covered by Medicaid and how much Medicaid spends on these services.

Title V and Medicaid/CHIP Interactive Worksheets

The Catalyst Center has developed two interactive worksheets that can be filled in to provide an overview of your state’s Title V program or Medicaid and Children’s Health Insurance Program (CHIP). Each worksheet includes resources to help users find and insert state-specific information to help demonstrate the importance of Title V, Medicaid and CHIP for children with special health care needs (CSHCN) in their state.

Worksheets:

The worksheets were created as companion materials to the Catalyst Center’s Public Insurance Programs and Children with Special Health Care Needs: A Tutorial on the Basics of Medicaid and the Children’s Health Insurance Program (CHIP).

Medicaid Waivers Targeting Children With Autism Spectrum Disorder Reduce The Need For Parents To Stop Working

This article from the journal Health Affairs found that Increases in the Medicaid home and community-based services waiver cost limit and enrollment limit significantly reduced the likelihood that a parent had to stop working, although the results varied considerably by household income level.

Current Flexibility in Medicaid: An Overview of Federal Standards and State Options

This issue brief from the Kaiser Family Foundation provides an overview of current federal standards and state options in Medicaid and how states have responded to these options in four key areas: eligibility, benefits, premiums and cost sharing, and provider payments and delivery systems.

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