All Health Is Local: Update on Federal Health Reform Efforts and - - PowerPoint PPT Presentation

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All Health Is Local: Update on Federal Health Reform Efforts and - - PowerPoint PPT Presentation

All Health Is Local: Update on Federal Health Reform Efforts and Why It Matters to Counties Rodney Whitlock Vice President, Health Policy ML Strategies (@RodneyMLS) 2 3 Where are we going and why are we in this handbasket? 4


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Rodney Whitlock

Vice President, Health Policy ML Strategies (@RodneyMLS)

All Health Is Local: Update on Federal Health Reform Efforts and Why It Matters to Counties

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Where are we going … and why are we in this handbasket?

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"There are no facts, only interpretations." Friedrich Nietzsche (1844-1900)

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“There are no solutions, only trade-offs” Thomas Sowell (1930 - )

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The Journey from Nietzsche to Sowell

  • Seven years where nothing that was said truly

mattered.

  • Now every decision results in significant

consequences.

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The American Health Care Act

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AHCA Provisions

  • Replaced the individual mandate with a continuous

coverage provision

  • Repealed Affordable Care Act (ACA) taxes
  • Repealed cost sharing reductions
  • Replaced subsidies with tax credits
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AHCA Medicaid Provisions

  • Repealed state option to expand the Medicaid program
  • Shifted Medicaid funding to a per-capita cap system
  • State option to block grant Medicaid funding for certain

populations

  • Repealed hospital DSH cuts over time and provided non-

expansion states with funding for safety net providers

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Per Capita Caps vs. Block Grants

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Congressional Budget Office Score

  • The CBO score estimated that the AHCA would:

–Reduce the federal deficit by $119 billion over ten years 2017-2026 –Result in 23 million less people having health insurance coverage by 2026 –Result in 14 million less people having Medicaid coverage by 2026 –Reduce federal funding to the Medicaid program by $834 billion from 2017-2026 – 1/6 of the population lives in a state would utilize waivers for essential health benefits (EHBs) and community rating, which allow for underwriting

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AHCA Implications

  • Losses in coverage and access to services
  • Increased pressures on safety net providers
  • Increased pressures on other social programs that serve Medicaid

beneficiaries (i.e., criminal justice)

  • Continued instability in the Marketplace
  • Shifted costs from federal government to states, providers, and patients
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AHCA Implications for the Taxpayer

Decreases in federal taxes that result in increases in state and county taxes

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Federal State Local

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1.Health Care will need to be provided. 2.Someone will need to pay for it.

Two Simple Facts about Health Care

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Moving Money from One Pocket to the Other

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Why the AHCA Failed on March 24th

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VS.

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The AHCA Returned from the Dead

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MacArthur and Upton Amendments

  • MacArthur Amendment

– Waiver for increasing age band ratios – Waiver for Essential Health Benefits – Waiver for underwriting for certain individuals

  • Upton Amendment

– $8billion for high-cost risk pools

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The Face of Pre-Existing Conditions

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The Face of Pre-Existing Conditions

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Next Up: The United States Senate

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  • The Marketplace
  • The Medicaid Expansion
  • Medicaid Per Capita Caps
  • Paying for the Changes

Issues for the Senate

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Health Care Minibus

  • Children’s Health Insurance Program (CHIP)
  • Special needs plans (SNP)
  • Community health center funding
  • Therapy caps
  • Maternal, Infant, and Early Childhood Home Visiting

(MIECHV)

  • Disproportionate share hospital (DSH)
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What to Watch for in 2017

  • The Senate on the AHCA
  • Cost-sharing reduction payments and the Marketplace
  • Changes to the Medicaid program via CMS
  • Health care minibus and how it is paid for
  • The final spending bill
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What Can You Do About It?

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Questions?

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rlwhitlock@mlstrategies.com @RodneyMLS