Mandates to Medicaid The Future of Health Care State Bar of - - PowerPoint PPT Presentation

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Mandates to Medicaid The Future of Health Care State Bar of - - PowerPoint PPT Presentation

Mandates to Medicaid The Future of Health Care State Bar of California, Business Law Section Health Care Committee T eleseminar: February 1, 2013 9:00 AM Presented by Craig B. Garner PAGE: 1 Mandates to Medicaid The Future of Health Care


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T eleseminar:

February 1, 2013 9:00 AM Presented by Craig B. Garner

State Bar of California, Business Law Section Health Care Committee

Mandates to Medicaid

The Future of Health Care

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The Future of Health Care

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Minimum Essential Coverage

(Meeting the Mandate)

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The Future of Health Care

Statutory Authority

  • The Patient Protection and Affordable Care Act (Pub. L. 111-148) +
  • Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152) +
  • Tricare Affirmation Act (Pub. L. 111-159) +
  • Clarification of Health Care Provided by the Secretary of Veterans Affairs

(Pub. L. 111-173) = ________________________________

  • 26 U.S.C. § 5000A

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The Future of Health Care

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What Satisfies the Mandate?

  • Government sponsored programs (Medicare, Medicaid, CHIP

, Tricare, Veterans, Peace Corps); or

  • Employer-sponsored plan; or
  • Plans in the individual market (Exchange, Basic Health Program or CO-OP); or
  • Grandfathered health plan; or
  • Other
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The Future of Health Care

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The Penalty

Minimum Essential Coverage? Exception?

  • 1. Religious?
  • 2. Not Present?
  • 3. In Jail?
  • 4. Low Income?
  • 5. Hardship?
  • 6. Indian Tribe?

PENALTY (in 2016) the greater of $695 (or less)

Yes No No Yes

not to exceed

Bronze Level of Coverage

2.5% of household income

  • r
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The Future of Health Care

Collecting the Penalty

  • Waiver of criminal penalties
  • Limitations on liens and levies

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The Future of Health Care

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Essential Health Benefits

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The Future of Health Care

What Are Essential Health Benefits?

  • Ambulatory patient services
  • Emergency services
  • Hospitalization
  • Maternity and newborn care
  • Mental health and substance use disorder
  • Prescription drugs
  • Rehabilitative and habilitative services and devices
  • Laboratory services
  • Preventative and wellness services and chronic disease management
  • Pediatric services, including oral and vision care

42 U.S.C. § 18022

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The Future of Health Care

What Could Be Essential Health Benefits?

  • Emergency room visits
  • Ambulance services
  • Diabetes care management
  • Kidney dialysis
  • Physical therapy
  • Durable medical equipment
  • Prosthetics
  • Infertility treatment
  • Organ and tissue transplantation

Institute of Medicine, Essential Health Benefits

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The Future of Health Care

What Are the Levels of Coverage?

  • Bronze (60% of the full actuarial value of the benefits)
  • Silver (70% of the full actuarial value of the benefits)
  • Gold (80% of the full actuarial value of the benefits)
  • Platinum (90% of the full actuarial value of the benefits)
  • Catastrophic (29 years old or younger or exempt from Section 5000A)

42 U.S.C. § 18022(d), (e)

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Precious Metals (January 2013)

  • Platinum 30-day average = $1,585
  • Gold 30-day average = $1,673
  • Silver 30-day average = $31

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The Future of Health Care

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Health Insurance Exchanges

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The Future of Health Care

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The Health Insurance Marketplace is designed to help you find insurance that fits your budget, with less hassle. No matter where you live, you’ll be able to buy insurance. . . . New laws mean plans must treat you fairly and can’t deny you coverage because of pre-existing conditions. Source: CMS T

  • olkit
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The Future of Health Care

How Do Exchanges Work?

  • Make comparison shopping easy
  • Lower barriers for new competition in the insurance market
  • Provide savings and choice through transparency
  • Determine individual tax credits/subsidies
  • Compete for enrollees
  • Focus on the uninsured

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The Future of Health Care

State-Based Exchange

Each individual state operates all Exchange activities, but a state may use federal government services for the following activities:

  • Premium tax credit and cost sharing reduction determination
  • Exemptions
  • Risk adjustment program
  • Reinsurance program

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State Partnership Exchange

State operates activities for:

  • Plan management (and/or)
  • Consumer assistance

State may elect to perform or can use federal government Services for the following activities:

  • Reinsurance program
  • Medicaid and CHIP eligibility assessment or determination

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Federally-Facilitated Exchange

HHS operates, but state may elect to perform or can use federal government services for the following activities:

  • Reinsurance program
  • Medicaid and CHIP eligibility assessment or determination

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Exchange Transparency

As part of the application process, each state should post certain sections from its application on the appropriate state website, including:

  • Exchange board and governance structure
  • Stakeholder consultation plan
  • Outreach and education plan
  • Role of agents and brokers
  • Coordination strategy
  • Pre-Existing Condition Insurance Plan (PCIP) transition
  • Long-term operational cost plan

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California Health Benefit Exchange

The California Health Benefit Exchange posts the following vision, mission and values on its website (www.healthexchange.ca.gov):

  • Consumer-focused
  • Affordability
  • Catalyst
  • Integrity
  • Partnership
  • Results

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The Future of Health Care

New Regulations To Ensure Fairness

  • Limit premium variation to age and tobacco use

But what is tobacco use?

  • Accept all applicants and guarantee renewal

Are there capacity limits?

  • Effective Rate Review

Who will conduct the reviews?

  • Medical Loss Ratio

Who will monitor?

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Medicaid Expansion

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The Future of Health Care

Statutory Authority for Medicaid

  • Pub. L. 103-448 +
  • Pub. L. 104-226 +
  • Pub. L. 105-12 +
  • Pub. L. 105.33 +
  • Pub. L. 106-113 +
  • Pub. L. 106-169 +
  • Pub. L. 108-448 +
  • Pub. L. 109-91 +

_____________________________ 42 U.S.C. § 1396d

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  • Pub. L. 110-90 +
  • Pub. L. 111-3 +
  • Pub. L. 111-5 +
  • Pub. L. 111-148 +
  • Pub. L. 111-152 +
  • Pub. L. 111-309 +
  • Pub. L. 112-78 +
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The Future of Health Care

What Is Medicaid?

Health insurance for individuals who qualify financially, as well as families with dependent children, the aged, blind or disabled.

  • Medi-Cal
  • KanCare
  • SoonerCare
  • Hoosier Healthwise
  • MassHealth
  • SALUD!
  • T

ennCare

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Medi-Cal

  • Created in California during its 1975 Second Extraordinary Session
  • (First Extraordinary Session only considered Medi-Cal, while paying the

Assembly and Senate $240,600)

  • Cal. Welf. & Inst. Code § 14000:

“The purpose [of Medi-Cal] is to afford to qualifying health care and related remedial

  • r preventative services, including related social services which are necessary for

those receiving health care under [Medi-Cal].”

  • Includes 25% of California’s population

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Medicaid Expansion

77 Federal Register 17144 (Mar. 23, 2012) (Final Rule)

  • Implemented provisions of the

Affordable Care Act related to Medicaid eligibility, enrollment and coordination with the Exchanges, CHIP , and other programs

  • Simplified the eligibility rules in Medicaid and CHIP
  • Set the

minimum Medicaid income eligibility level of 133 percent of the Federal Poverty Level for most non-disabled adults under age 65 Proposed Rule (Jan. 14, 2013)

  • Reflects new statutory eligibility provisions
  • Proposes

changes to provide states more flexibility to coordinate Medicaid and CHIP eligibility, appeals and other administrative procedures

  • Modernizes and streamlines existing rules

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The Future of Health Care

Medicaid Expansion and the Supreme Court

  • The United States

Supreme Court held that Congress has the authority to offer funding for states to expand Medicaid by 2014 without imposing retroactive financial conditions. National Fed. of Indep. Bus. v. Sebelius, 132 S. Ct. 2566, 2606-07 (2012).

  • Congress never

dreamed that any State would refuse to go along with the expansion of

  • Medicaid. Congress well understood that refusal was not a practical option. (Id. at 2665

(Scalia, Kennedy, Thomas and Alito, JJ, dissenting).

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Medicaid Expansion (Nov. 2012)

Not Participating Leaning T

  • ward No

Undecided Participating Leaning T

  • ward Y

es

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The Future of Health Care

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Medicaid Expansion (Jan. 2013)

After Election refers to views as of January 13, 2013. In states with newly elected governors, before election refers to the views of the outgoing governor, and after election refers to the views of the governor-elect. Source: Sommers, U.S. Governors and the Medicaid Expansion, New

  • Engl. J. Med. (Jan. 2013)
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The Future of Health Care

Medicaid Expansion By the Numbers

  • The Federal Government will pay 100% of added expense for newly eligible

beneficiaries through 2016, 95% in 2017, 94% in 2018, 93% in 2019 and 90% in 2020 and thereafter.

  • States must pay “qualified” physicians Medicaid fees at least equal to Medicare rates

starting in 2013.

  • Pay increase applies to family physicians, internists and pediatricians (and in some

instances specialists) provided (1) they are Board-certified or (2) at least 60% of the Medicaid codes they billed in the previous year were primary care codes identified in the Affordable Care Act.

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The Future of Health Care

Questions?

  • www.healthcare.gov (U.S. Government)
  • www.healthreform.kff.org (The Henry J. Kaiser Foundation)
  • www.hhs.gov (The U.S. Department of Health and Human Services)
  • www.cms.gov (Centers for Medicare & Medicaid Services)
  • www.oshpd.ca.gov/reform (Office of Statewide Health Planning & Development)
  • www.chhs.ca.gov (California Health & Human Services Agency)
  • www.ppaca.me

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The End