The Pennsylvania Health Law Project has published the March 2013 edition of Health Law PA News, its monthly newsletter.Features this month include articles about the governor’s proposed FY 2014, prospects for Medicaid expansion, coming Affordable Care Act changes, the final expansion of HealthChoices, and more.
Find a link to the complete newsletter here
, on the web site of the Pennsylvania Health Law Project.
Still rejecting expansion of the state’s Medicaid program as envisioned under the Affordable Care Act, Pennsylvania Tom Corbett has indicated that he may be interested in following the lead of a few other states in attempting to use federal Medicaid expansion money to purchase private health insurance for newly eligible Medicaid recipients.
This news comes in the aftermath of the governor’s Washington, D.C. visit with Health and Human Services Secretary Kathleen Sebelius during which the two officials discussed the governor’s reluctance to incur the future cost increases that he believes the state will face under Medicaid expansion.
Recently, the governors of Arkansas, Ohio, and several other states have expressed interest in purchasing private insurance for new Medicaid recipients instead of expanding their states’ traditional Medicaid programs.
Read more about Governor Corbett’s meeting with Secretary Sebelius and the possibility that the state’s closed door to the question of Medicaid expansion is now slightly ajar in this Philadelphia Inquirer article.
A new study suggests that expanding Medicaid eligibility in Pennsylvania would create as many as 39,000 new jobs over the next seven years and generate enough new revenue to pay the state’s share of the expansion’s costs.
Or so says a new study by RAND Health.
According to the study, Medicaid expansion under the terms established by the Affordable Care Act would reduce Pennsylvania’s uninsured rate from the current 12.7 percent to 4.8 percent in 2016, spur $20 billion in economic growth by 2020, and generate more new tax revenue than the state would need to spend to pay its share of expansion’s cost once the federal share of expansion drops from 100 percent to 90 percent.
The Safety-Net Association of Pennsylvania (SNAP) supports Medicaid expansion in the state.
Read more about the RAND Health report, and find a link to the study, in this Central Penn Business Journal article.
Medicaid expansion in Pennsylvania could help compensate hospitals for the care they are currently providing to uninsured patients.
And enhanced Medicaid payments made possible under the Affordable Care Act also could help hospitals with their Medicaid shortfalls: the difference between what Pennsylvania pays hospitals for the Medicaid services they provide and the actual cost of those services.
So hospital executives around the state recently told the Johnstown Tribune-Democrat.
To learn more about how selected hospital executives view Medicaid expansion and why the Corbett administration has been reluctant so far to go ahead with that expansion, read the article “Small hospitals could gain from expansion” in this Johnstown Tribune-Democrat article.
Acting Department of Public Welfare Secretary Beverly Mackereth appeared before the Senate Appropriations Committee this week for the first time to present and defend her department’s proposed FY 2014 – including its Medicaid budget.
Mackereth, herself a former member of the state House, also responded to committee members who questioned Governor Corbett’s decision not to expand Medicaid eligibility in the state, as provided for in the federal Affordable Care Act.
She also promised more dialogue with the General Assembly in the future.
Read more about Ms. Mackereth’s budget testimony before the Senate Appropriations Committee in this Allentown Morning Call article
State Budget
The Philadelphia Inquirer has published an editorial calling on Pennsylvania Governor Tom Corbett to expand eligibility for the state’s Medical Assistance program as envisioned in the Affordable Care Act.
Read that editorial here
.
States are free to reduce payments to providers to keep down their Medicaid costs, the Obama administration has told a court considering a challenge to a 10 percent cut in provider payments by California’s Medicaid program.
The administration weighed in on this subject in a legal brief submitted in a court case that will decide whether California can reduce its Medicaid payments to providers.
If California’s defense of its Medicaid payment cuts proves successful, it could provide a blueprint for other states to reduce payments at a time when most states are preparing for a significant expansion of their Medicaid rolls. Many states are already concerned about the potential for rising Medicaid costs while others have opted out of Medicaid expansion or are still undecided, typically citing the potential for growing costs as the primary reason for their reluctance to expand their Medicaid programs as envisioned under the Affordable Care Act.
Any movement toward reducing Medicaid payments to providers would be extremely harmful to Pennsylvania’s safety-net hospitals, which already suffer from inadequate payments that fail to cover the cost of the care they provide to the state’s 2.1 million Medicaid recipients.
To learn more about the California case and its potential implications elsewhere, see this New York Times article
.
Enrollment in Pennsylvania’s Medical Assistance program declined by 55,000 people during the second half of 2012.
While it is not clear why enrollment dropped so significantly, one theory is that some people who lost their General Assistance cash assistance – a casualty of the state’s FY 2013 budget – did not reapply for Medical Assistance. Others point to the inability of county assistance offices to process applications effectively.
Read more about the drop in Medicaid enrollment in Pennsylvania and its possible causes in this Philadelphia Inquirer article
.
Expanding Medicaid as called for in the Affordable Care Act would extend health insurance to nearly 700,000 currently uninsured Pennsylvanians and create more than 41,000 new jobs in the state in 2016 according to a new report.
Medicaid expansion also would result in $3.3 billion in new health care spending in Pennsylvania and generate $5.1 billion in new economic activity in 2016.
These are among the conclusions presented ind “Pennsylvania’s Economy Will Benefit From Expanding Medicaid,” a new report issued jointly by the Pennsylvania Health Access Network and the national advocacy group Families USA.
Learn more about the report and its analysis and find a link to the entire report here, on the web site of the Pennsylvania Health Access Network.
The Children’s Health Insurance Program
Pennsylvania Governor Tom Corbett recently unveiled his proposed state FY 2014 budget. The day he did, members of the Safety-Net Association of Pennsylvania (SNAP) immediately received a comprehensive memo outlining the governor’s budget proposal with an emphasis on the issues that matter most to the state’s 61 private safety-net hospitals.
Over a seven-day period, SNAP presents in this space the highlights of the governor’s budget, again with an emphasis on Medical Assistance and other matters of special interest to Pennsylvania’s safety-net hospitals. Today, SNAP takes a look at what the proposed budget says about the Children’s Health Insurance Program.
The governor’s proposed FY 2014 budget includes $24 million in new money for the Children’s Health Insurance Program (CHIP). This additional funding will support the addition of more than 9300 children to the program.
Tomorrow: Department of Health
