Potential Impacts of Medicaid Expansion in Mississippi Therese - - PowerPoint PPT Presentation

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Potential Impacts of Medicaid Expansion in Mississippi Therese - - PowerPoint PPT Presentation

Potential Impacts of Medicaid Expansion in Mississippi Therese Hanna Executive Director Center for Mississippi Health Policy March 11, 2013 Center for Mississippi Health Policy Independent, non-profit organization Mission is to


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Therese Hanna Executive Director Center for Mississippi Health Policy March 11, 2013

Potential Impacts of Medicaid Expansion in Mississippi

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Center for Mississippi Health Policy

 Independent, non-profit organization  Mission is to inform health policy decisions by

providing sound research and analysis

 Do not advocate or lobby for particular

solutions

 Do not have a position in support of or

  • pposition to Medicaid expansion

 Issue Brief provides overview

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Federal Poverty Level

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% FEDERAL POVERTY LEVEL SINGLE FAMILY OF FOUR 24% $2,681 $5,532 44% $4,915 $10,142 100% $11,170 $23,050 138% $15,415 $31,809 185% $20,665 $42,643

Annual Incomes Associated with 2012 Federal Poverty Percentages

Source: The poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 USC 9002 (2).

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Medicaid & CHIP Eligibility for Children by Age

<1 year 1 – 5 years 6 – 18 years 186 – 200% FPL CHIP CHIP CHIP 134 - 185% FPL Medicaid CHIP CHIP 101 – 133% FPL Medicaid Medicaid CHIP-> Medicaid 0 – 100 % FPL Medicaid Medicaid Medicaid

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Medicaid Eligibility for Adults Pre & Post ACA

Population Current Federal Requirements Current MS Eligibility Levels Post-2014 Federal Requirements Post-2014 Optional Expansion Elderly & Disabled Varies by category – all near or above 133% FPL Pregnant Women Up to 133% FPL Up to 185% FPL Up to 185% FPL* Up to 185% FPL Working Low- income Parents Up to 24% FPL Up to 44% FPL Up to 24% FPL** Up to 133% FPL Non-working Low- income Parents Up to 24% FPL Up to 24% FPL Up to 24% FPL** Childless Adults None None None

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*Determined by the state’s eligibility level on July 1, 1989. **Determined by the state’s AFDC income standard in effect on May 1, 1988, for the applicable family size.

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Health Coverage: MS Adults 19-64 at or below 138% FPL

Medicaid 25% Private - Individual 5% Military 2% Private - Employment Based 18% Medicare 10% Uninsured 40%

Source: American Community Survey 2010 data compiled by the C4MHP using IPUMS-ACS

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Percentage of Adults Under 138% of the Federal Poverty Level Without Health Insurance

Source: U. S. Census Bureau. Small Area Health Insurance Estimates. Data available at http://www.census.gov/did/www/sahie/data/interactive.

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“Woodwork Effect”

 Potential increase in enrollment by people

who are already eligible, but not enrolled

 Will occur regardless of whether Medicaid

expansion is approved

 Claims for these enrollees are covered

under the current FMAP

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Expansion Population

 New group primarily younger, not disabled  Not likely to have same claims experience

as existing Medicaid enrollees

 May have different benefits (benchmark or

benchmark-equivalent)

 May have alternative delivery model  Most are low wage workers

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Uninsured Workers in MS

Occupations in MS with Most Uninsured Workers at or below 138% FPL Cashiers 14,445 Medical Aides 4,084 Cooks 8,731 Laborers & Movers 3,984 Construction Workers 6,869 Store Clerks 3,915 Maids & Housekeeping 6,021 Retail Salespersons 3,092 Truck & Other Drivers 5,950 Food Service Mangers 3,088 Waiters & Waitresses 5,280 Agriculture Workers 2,993 Janitors & Cleaners 5,178 Assemblers & Fabricators 2,954 Grounds Maintenance Workers 5,067 Childcare Workers 2,803 Other Production Workers 4,724 Painters & Maintenance 2,704 Carpenters 4,472 Retail Sales Supervisors 2,552

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Source: American Community Survey, U.S. Census Bureau, 2010. Data compiled by C4MHP using IPUMS-ACS.

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Potential Impacts

 Economic and Fiscal Impacts  Coverage Impacts  Health Impacts  Private Insurance Impacts

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Economic & Fiscal Impact

 Annual cost to the State is projected to be $159 million

by 2025, matched by $1.2 billion in federal dollars.

 Approximately 9,000 new jobs are projected to be

created by new economic activity associated with the new federal funds coming into the State.

 Accounting for new jobs contributing additional revenue

to the State General Fund, net fiscal impact in 2025 is estimated at $96 million.

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Source: Neal, B. (2012). The Fiscal and Economic Impacts of Medicaid Expansion in Mississippi, 2014-2025. An Economic Brief from the University Research Center, Mississippi Institutions of Higher Learning, October 2012.

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Medicaid Expansion Cost by Source, 2014-2025

  • $200

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Millions

State (Gross) State (Net) Federal

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Source: Neal, B. (2012). The Fiscal and Economic Impacts of Medicaid Expansion in Mississippi, 2014-2025. An Economic Brief from the University Research Center, Mississippi Institutions of Higher Learning, October 2012.

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Potential Shifts in Coverage Projected for Mississippi (Non-elderly Population)

Employer 48% Individual Private 5% Medicaid/ CHIP 22% Other 5% Exchange 0% Uninsured 20%

2010

14 Employer 45% Individual Private 1% Medicaid/ CHIP 32% Other 4% Exchange 11% Uninsured 7%

2014

These represent the non-elderly population and are preliminary estimates last revised September 2010. Source: An Overview of Health Reform, Center for Mississippi Health Policy & the Georgia Health Policy Center, September 2010.

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Coverage Impact

 Would substantially reduce the number of uninsured

Mississippians

 Most potentially eligible adults do not have access

to employer-based insurance

 Adults with incomes below 100% FPL will not be

eligible for premium subsidies through the Health Insurance Exchange

 Adults above 100% FPL may trigger employer

penalties if they seek subsidies through the Exchange

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Health Impact: National Data

 Oregon study provided natural experimental design

 Overall utilization of services increased (not related to pent

up demand)

 Compliance with recommended preventive care increased  Access to primary care services increased

 RAND Health Insurance Experiment

 Inverse relationship between out-of-pocket cost and

utilization

 Uninsured are less likely to seek care

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Health Impact: Mississippi

 Mississippians are the most likely to report

being unable to see a doctor because of cost compared to other states

 Health indicators for Mississippi indicate

poor access to preventive and primary care and high rates of disability and premature death

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Example: Discharges for Preventable Hospitalizations

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Source: The Dartmouth Atlas of Health Care. http://www.dartmouthatlas.org/data/table.aspx?ind=158. Retrieved July 2012.

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Example: Diabetes

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Leg Amputation Rates Hemoglobin A1c Testing Rates

Source: The Dartmouth Atlas of Health Care. http://www.dartmouthatlas.org/data/table.aspx?ind=158. Retrieved July 2012.

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Example: Breast Cancer

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Rates are per 100,000 and are age-adjusted to the 2000 U.S. standard population. Source: U.S. Cancer Statistics Working Group. United States Cancer Statistics: 1999–2009 Incidence and Mortality Web-based

  • Report. Atlanta (GA): Department of Health and Human Services, Centers for Disease Control and Prevention, and National

Cancer Institute; 2013. Available at www.cdc.gov/cancer/breast/statistics/state.htm.

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Delivery System Issues

 Increased demand for health care services

could put pressure on the state’s health care delivery system, which already faces a shortage of primary care providers.

 Medicaid enrollment does not by itself

ensure health improvement.

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Impact on Private Insurance

 American Academy of Actuaries projections for

states that opt out of Medicaid expansion:

 Individual market premiums to increase due to health

status differences of new enrollees

 Exchange premiums to increase due to spreading

fixed reinsurance subsidies over larger number of enrollees

 Large employers (more than 50 employees) to be at

greater risk of penalties due to low-income employees requesting premium subsidies

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Disproportionate Share Hospital (DSH) Payments

 Federal law mandates reductions in DSH

allotments:

Largest reductions go to states with the

lowest percentage of uninsured individuals

Smaller reductions go to “low DSH” states Total national cuts are graduated from $500

million in FY 2014 to $4 billion in FY 2020

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Projected DSH Reductions Mississippi, 2014 - 2020

Year DSH Payment Reduction (millions) 2014 $ 7.2 2015 $ 8.7 2016 $ 8.7 2017 $ 26.0 2018 $ 72.3 2019 $ 81.0 2020 $ 57.8 TOTAL $261.8

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Source: Neal, B. (2012). The Fiscal and Economic Impacts of Medicaid Expansion in Mississippi, 2014-2025. An Economic Brief from the University Research Center, Mississippi Institutions of Higher Learning, October 2012.

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Policy Considerations: DSH

 Uncompensated care under the Medicaid

expansion is projected to drop 57%, offsetting the loss of federal DSH payments to hospitals. Without the Medicaid expansion hospitals will be faced with the need to find new sources of funds to replace DSH payments in order to cover the cost of providing uncompensated care to the uninsured.

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Source: Neal, B. (2012). The Fiscal and Economic Impacts of Medicaid Expansion in Mississippi, 2014-2025. An Economic Brief from the University Research Center, Mississippi Institutions of Higher Learning, October 2012.

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Resources from C4MHP

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Contact Information

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Center for Mississippi Health Policy 120 North Congress Street, Suite 700 Jackson, MS 39201 601-709-2133 www.mshealthpolicy.com @mshealthpolicy