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Medicaid and the ACA:
Issues for Reporters

Reporting on Health
March 5, 2013

Alan Weil
Executive Director
National Academy for State Health Policy
What We Will Discuss
• How the ACA affects Medicaid
• The Medicaid expansion
• Medicaid beyond the expansion
• Medicaid’s relationship to the health
  insurance exchange
• The remaining uninsured
Health Reform & Medicaid
    • Maintains children’s CHIP and Medicaid eligibility levels
      through 2019; adults through 2013
    • Expands for adults to 133% of the federal poverty level
      without regard to family structure or assets as of January
      1, 2014
    • Option for benchmark benefit package based on
      essential health benefits package for new adults
    • Full federal funding for individuals newly eligible for
      Medicaid for 2014-2016, phasing down to 90% in 2020
      and beyond
    • Supreme Court rules federal government cannot
      penalize states that decline to expand
Source: Kaiser Family Foundation, “Medicaid and Children’s Health Insurance
Program Provisions in the New Health Reform Law”, April 2010
Four Perspectives
on the Medicaid Expansion
•   Coverage
•   Cost
•   Health
•   Health system performance
Who Are the Currently Uninsured?
   Health Insurance Coverage of the Nonelderly by Poverty Level, 2011

                        Employer/Other Private                         Medicaid/Other Public   Uninsured
                                                                                                    6%
                                                                                   19%              4%

                 42%                                 37%
                                                                                    9%


                                                     23%
                                                                                                   90%
                 34%
                                                                                   73%

                                                     41%
                 24%

            <100% FPL                        100-199% FPL                       200-399% FPL    400%+ FPL



FPL= Federal Poverty Level. The FPL was $22,250 for a family of four in 2011.
Data may not total 100% due to rounding.
SOURCE: KCMU/Urban Institute analysis of 2012 ASEC Supplement to the CPS.
Who Gets Covered by Expansion?
• Medicaid in 2022:
      – 52.4 million enrolled if no ACA
      – 58.1 million enrolled with ACA and no states
        electing expansion
      – 73.7 million enrolled with ACA and all states
        electing expansion



SOURCE: Holahan, John; Buettgens, Matthew; Caroll, Caitlin; Dorn, Stan.
Urban Institute for the Kaiser Commission on Medicaid and the Uninsured.
The Cost and Coverage Implications of the ACA Medicaid Expansion:
National and State-by-State Analysis.
How Big a Reduction in Uninsured?
      With all states expanding, the number of
      uninsured in the US is estimated to be
      27.9 million in 2022, while it would have
      been 53.3 million without the ACA. This
      amounts to a 47.6% reduction in the
      uninsured.


SOURCE: Holahan, John; Buettgens, Matthew; Caroll, Caitlin; Dorn, Stan.
Urban Institute for the Kaiser Commission on Medicaid and the Uninsured.
The Cost and Coverage Implications of the ACA Medicaid Expansion:
National and State-by-State Analysis.
8
Unadjusted Mortality and Rates of Medicaid Coverage
  among Nonelderly Adults before and after State Medicaid
  Expansions (1997–2007).




SOURCE: Sommers BD, Baicker K, Epstein AM. Mortality and
access to care among adults after state medicaid
expansions. N Engl J Med 2012;367:1025–34.
Medicaid and Health System
Performance
•   Coverage continuity
•   Care continuity
•   Aligned quality metrics
•   Aligned purchasing and reporting
    strategies
SOURCE: The Advisory Board Company. Where each state stands on the ACA’s Medicaid
expansion. Accessed February 27, 2013 at http://www.advisory.com/Daily-
Briefing/2012/11/09/MedicaidMap#lightbox/0/.
SOURCE: State Reforum: Tracking Medicaid Expansion Decisions. Accessed February
27, 2013 at http://www.statereforum.org/medicaid-expansion-decisions
Medicaid Beyond the Expansion
•   Eligibility and enrollment systems
•   Dual eligible demonstrations
•   Health homes
•   Reductions in Safety Net Hospital funding
    (DSH)
Eligibility System Upgrades
       State Responses Regarding Streamlined Eligibility and Enrollment Requirements




SOURCE: Department of Health and Human Services. Office of the Inspector General. Most
States Anticipated Implementing Streamlined Eligibility and Enrollment by 2014. February
2013. Accessed Feb 28, 2013 at https://oig.hhs.gov/oei/reports/oei-07-10-00530.pdf
Duals Demonstration States




SOURCE: Kaiser Family Foundation. State Adoption of Integrated Financing
and Care Delivery for Dually Eligible Beneficiaries Provided by the Affordable
Care Act, August 2012. Accessed Feb 28, 2013 at
http://statehealthfacts.kff.org/comparemaptable.jsp?ind=1067&cat=17
Section 2703 Health Home Activity
     AK

                  WA                                                                                  VT    ME
                             MT         ND
                                                       MN                                                      NH
            OR                                                                                        NY
                                                                  WI                                               MA
                       ID               SD                                       MI                              RI
                              WY                                                                 PA           CT
                                                        IA                                                  NJ
                                         NE                                           OH                   DE
                  NV                                               IL       IN                               MD
                        UT                                                                 WV    VA
                                   CO
                                             KS              MO                  KY                                DC
            CA                                                                                   NC
                                                                            TN
                                                  OK                                        SC
                       AZ                                    AR
                                  NM
                                                                       MS   AL         GA

                                                             LA
             HI                              TX
                                                                                                FL


      Approved (12 SPAs in 8 States)
      Submitted (4 States)
                                                                                      As of December 2012
      Planning Grant (16 States and D.C.)
16
Cuts in Medicaid Safety Net Funds
  Total DSH Allotments Before the Reductions, with the ACA Reductions, and Under Current Law
  ($ in billions)




SOURCE: Mitchell A. Congressional Research Service. Medicaid Disproportionate
Share Hospital Payments. Washington (DC): CRS; 2012 Dec 18. Available from:
https://www.fas.org/sgp/crs/misc/R42865.pdf
Churn between Medicaid and the Health
    Insurance Exchanges
  Income Changes Over Time Among Adults Aged 19-60 With Incomes Initially Between
  133 Percent and 200 Percent Of The Federal Poverty Level




SOURCE: Sommers BD, Rosenbaum S. Issues In Health Reform: How Changes
In Eligibility May Move Millions Back and Forth Between Medicaid And Insurance
Exchanges. Health Affairs, February 2011, vol 30, no 2, pgs 228-236.
The Remaining Uninsured
        Distribution of Nonelderly Uninsured Adults Under the ACA




SOURCE: BuettgensM, Hall MA. The Urban Institute. Who Will Be Uninsured After Health
Insurance Reform? Accessed Feb 28, 2013 at
http://www.urban.org/UploadedPDF/1001520-Uninsured-After-Health-Insurance-
Statereforum.org is a space for…
• Peer-to-peer learning and discussion
• Exchanging reform ideas
• Posting, organizing, and sharing useful state
  documents
• Announcing off-line events and activities
• Spotlighting the keys to successful
  implementation
• Mapping states’ progress in implementing health
  reform
Alan Weil
Executive Director
aweil@nashp.org
www.nashp.org
www.nashp.org/onceinaweil
www.statereforum.com
   @nashphealth

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Medicaid and the ACA: Issues for Reporters

  • 1. Medicaid and the ACA: Issues for Reporters Reporting on Health March 5, 2013 Alan Weil Executive Director National Academy for State Health Policy
  • 2. What We Will Discuss • How the ACA affects Medicaid • The Medicaid expansion • Medicaid beyond the expansion • Medicaid’s relationship to the health insurance exchange • The remaining uninsured
  • 3. Health Reform & Medicaid • Maintains children’s CHIP and Medicaid eligibility levels through 2019; adults through 2013 • Expands for adults to 133% of the federal poverty level without regard to family structure or assets as of January 1, 2014 • Option for benchmark benefit package based on essential health benefits package for new adults • Full federal funding for individuals newly eligible for Medicaid for 2014-2016, phasing down to 90% in 2020 and beyond • Supreme Court rules federal government cannot penalize states that decline to expand Source: Kaiser Family Foundation, “Medicaid and Children’s Health Insurance Program Provisions in the New Health Reform Law”, April 2010
  • 4. Four Perspectives on the Medicaid Expansion • Coverage • Cost • Health • Health system performance
  • 5. Who Are the Currently Uninsured? Health Insurance Coverage of the Nonelderly by Poverty Level, 2011 Employer/Other Private Medicaid/Other Public Uninsured 6% 19% 4% 42% 37% 9% 23% 90% 34% 73% 41% 24% <100% FPL 100-199% FPL 200-399% FPL 400%+ FPL FPL= Federal Poverty Level. The FPL was $22,250 for a family of four in 2011. Data may not total 100% due to rounding. SOURCE: KCMU/Urban Institute analysis of 2012 ASEC Supplement to the CPS.
  • 6. Who Gets Covered by Expansion? • Medicaid in 2022: – 52.4 million enrolled if no ACA – 58.1 million enrolled with ACA and no states electing expansion – 73.7 million enrolled with ACA and all states electing expansion SOURCE: Holahan, John; Buettgens, Matthew; Caroll, Caitlin; Dorn, Stan. Urban Institute for the Kaiser Commission on Medicaid and the Uninsured. The Cost and Coverage Implications of the ACA Medicaid Expansion: National and State-by-State Analysis.
  • 7. How Big a Reduction in Uninsured? With all states expanding, the number of uninsured in the US is estimated to be 27.9 million in 2022, while it would have been 53.3 million without the ACA. This amounts to a 47.6% reduction in the uninsured. SOURCE: Holahan, John; Buettgens, Matthew; Caroll, Caitlin; Dorn, Stan. Urban Institute for the Kaiser Commission on Medicaid and the Uninsured. The Cost and Coverage Implications of the ACA Medicaid Expansion: National and State-by-State Analysis.
  • 8. 8
  • 9. Unadjusted Mortality and Rates of Medicaid Coverage among Nonelderly Adults before and after State Medicaid Expansions (1997–2007). SOURCE: Sommers BD, Baicker K, Epstein AM. Mortality and access to care among adults after state medicaid expansions. N Engl J Med 2012;367:1025–34.
  • 10. Medicaid and Health System Performance • Coverage continuity • Care continuity • Aligned quality metrics • Aligned purchasing and reporting strategies
  • 11. SOURCE: The Advisory Board Company. Where each state stands on the ACA’s Medicaid expansion. Accessed February 27, 2013 at http://www.advisory.com/Daily- Briefing/2012/11/09/MedicaidMap#lightbox/0/.
  • 12. SOURCE: State Reforum: Tracking Medicaid Expansion Decisions. Accessed February 27, 2013 at http://www.statereforum.org/medicaid-expansion-decisions
  • 13. Medicaid Beyond the Expansion • Eligibility and enrollment systems • Dual eligible demonstrations • Health homes • Reductions in Safety Net Hospital funding (DSH)
  • 14. Eligibility System Upgrades State Responses Regarding Streamlined Eligibility and Enrollment Requirements SOURCE: Department of Health and Human Services. Office of the Inspector General. Most States Anticipated Implementing Streamlined Eligibility and Enrollment by 2014. February 2013. Accessed Feb 28, 2013 at https://oig.hhs.gov/oei/reports/oei-07-10-00530.pdf
  • 15. Duals Demonstration States SOURCE: Kaiser Family Foundation. State Adoption of Integrated Financing and Care Delivery for Dually Eligible Beneficiaries Provided by the Affordable Care Act, August 2012. Accessed Feb 28, 2013 at http://statehealthfacts.kff.org/comparemaptable.jsp?ind=1067&cat=17
  • 16. Section 2703 Health Home Activity AK WA VT ME MT ND MN NH OR NY WI MA ID SD MI RI WY PA CT IA NJ NE OH DE NV IL IN MD UT WV VA CO KS MO KY DC CA NC TN OK SC AZ AR NM MS AL GA LA HI TX FL Approved (12 SPAs in 8 States) Submitted (4 States) As of December 2012 Planning Grant (16 States and D.C.) 16
  • 17. Cuts in Medicaid Safety Net Funds Total DSH Allotments Before the Reductions, with the ACA Reductions, and Under Current Law ($ in billions) SOURCE: Mitchell A. Congressional Research Service. Medicaid Disproportionate Share Hospital Payments. Washington (DC): CRS; 2012 Dec 18. Available from: https://www.fas.org/sgp/crs/misc/R42865.pdf
  • 18. Churn between Medicaid and the Health Insurance Exchanges Income Changes Over Time Among Adults Aged 19-60 With Incomes Initially Between 133 Percent and 200 Percent Of The Federal Poverty Level SOURCE: Sommers BD, Rosenbaum S. Issues In Health Reform: How Changes In Eligibility May Move Millions Back and Forth Between Medicaid And Insurance Exchanges. Health Affairs, February 2011, vol 30, no 2, pgs 228-236.
  • 19. The Remaining Uninsured Distribution of Nonelderly Uninsured Adults Under the ACA SOURCE: BuettgensM, Hall MA. The Urban Institute. Who Will Be Uninsured After Health Insurance Reform? Accessed Feb 28, 2013 at http://www.urban.org/UploadedPDF/1001520-Uninsured-After-Health-Insurance-
  • 20. Statereforum.org is a space for… • Peer-to-peer learning and discussion • Exchanging reform ideas • Posting, organizing, and sharing useful state documents • Announcing off-line events and activities • Spotlighting the keys to successful implementation • Mapping states’ progress in implementing health reform

Editor's Notes

  1. Figure 1 shows the estimate of aggregate DSH allotments for FY2012 through FY2024 prior to ACA, under ACA, and under current law (i.e., under ACA and the Middle Class Tax Relief and Job Creation Act of 2012). Under current law, the aggregate DSH reductions will be nominal from FY2014 to FY2016. Then, the aggregate reductions will phase up to an estimated 43% reduction in FY2019, and in FY2020 and FY2021, the aggregate DSH reductions will phase down to roughly a 30% reduction. In FY2022, DSH allotments will rebound to the pre-ACA reduced levels.
  2. N = 19 million