The Affordable Care Act—What Health Care Reform Means for Seniors

1. The Affordable Care Act—What Health Care Reform Means for Seniors Brenda L. Marrero, Esq. Community Legal Services, Inc.

2. Community Legal Services, Inc. • We are a non-profit public interest legal agency providing free legal services to low income Philadelphians • We have 2 offices: Center City (15th & Chestnut) and Broad and Erie • Aging and Disability Unit: @ Broad and Erie. We represent low income seniors in areas like Medicare, Medicaid, long term care, nursing home law, and Social Security/SSI matters

3. Debunking myths • The Affordable Care Act (ACA) does NOT cut Medicare benefits • Medicare’s guaranteed benefits remain intact

4. Changes to Medicare • Open Enrollment Period is eliminated—starting in 2011 an individual who enrolls in a Medicare Advantage (MA) Plan may return to original Medicare (red/white/blue card) and a Part D Plan during the first 45 days of the year • Annual Enrollment Period is now October 15 thru December 7—this took effect January 2011

5. Medicare Cost Sharing improved • Starting in January 2011 there will be no coinsurance or deductibles for traditional Medicare preventive services • Medicare will cover free annual comprehensive wellness visit, and personalized prevention plan • Smoking cessation and counseling services are free

6. Medicare Advantage Plans-Changes and Improvements • Starting January 2011 MA Plans cannot impose cost-sharing for chemotherapy, renal dialysis services or skilled nursing care services that exceed the cost-sharing for those services under original Medicare—so whether you are in MA Plan or Traditional Medicare, your cost share will be the same

7. MA Plans Con’t • Starting in 2014, 85% of MA Plan revenues must go towards benefits, NOT profits, or plans may and will be subject to sanctions • Goal: to improve quality of care and to avoid MA Plans from being paid more for the same services as offered under Traditional Medicare

8. Elimination of Exclusion of Coverage of Certain Part D Drugs • Starting in 2014 Medicaid can no longer exclude smoking cessation drugs, barbiturates and benzodiazepines. Because Part D covered drugs are defined generally as those drugs covered under Medicaid, this ACA provision results in a small expansion of Part D coverage of barbiturates.

9. Con’t: Part D Drugs • Starting in 2013 Part D will cover benzodiazepines and will cover barbiturates used in the treatment of epilepsy, cancer of a chronic mental disorder

10. Part D and Closing the Donut Hole • The ACA creates a multi-part process for closing the Part D coverage gap, or “donut hole” • Starting in 2011 the coverage gap will decrease each year until 2020 when it will be eliminated and then beneficiaries will pay 25% co-insurance for prescriptions

11. How the donut hole will be eliminated • Starting in 2011: • Gradually phasing down the amount beneficiaries pay for generic drugs • Drug manufacturers must offer a 50% discount on brand name drugs filled when you are in the donut hole • Phasing down cost-sharing for brand name drugs starts in 2013 • Reducing the out of pocket amount needed to reach “catastrophic coverage” from 2014-2019

12. Improvements to Medicare appeals • For exceptions and appeals filed on or after January 1, 2010, Rx drug plan sponsors have to use a single, uniform exceptions and appeals process and provide access to that process through a toll-free telephone number and an Internet website

13. Improvements to Medicare complaint system • Required to develop an easy to use complaint system that will allow for collection and maintenance of complaints received through and by Prescription Drug Plan (PDPs) and Medicare Advantage-Prescription Drug (MA-PD) Plans

14. Low-Income Medicare beneficiaries • There are ACA Provisions related to low income Medicare beneficiaries that will help with cost sharing

15. LIS & Special Rule for Widows and Widowers • Effective January 1, 2011 an individual whose spouse dies in the middle of a low-income subsidy eligibility period is granted continued eligibility for a full year beyond the date when his/her eligibility would normally cease to be effective

16. Eliminate Cost Share for Certain Duals • Effective no earlier than January 1, 2012, the ACA eliminates cost sharing for Part D drugs for all full benefit dual eligibles (MA and Medicare) who are receiving home and community based services • This creates equity b/w those receiving care in an institution (i.e. nursing home) and those receiving the same care in the community

17. Funding Outreach/Assistance • Extends and increases the amount of additional funding (that was included in MIPPA law in 2008) for State Health Insurance Counseling Programs (SHIPs), Area Agencies on Aging (AAA) and Aging and Disability Resource Centers (ADRCs) • ACA increases funding to $15 million for SHIPs and AAAs, and $10 million for ADRC’s for FY 2010-FY 2012

18. Medicaid Provisions • The ACA gives states the option as of January 2010 to expand coverage to childless adults, except for those with Medicare Part A and/or Part B, with incomes up to 133% of FPL • Beginning in January 2014 states will be required to cover these individuals • This is helpful for those who have to wait 2 years after their social security disability benefits begin before being entitled to Medicare coverage

19. ACA Long Term Care Provisions: Some Highlights • Community First Choice Option • Money Follows The Person • Spousal Impoverishment Protections for HCBS Recipients

20. Community First Choice (CFC) Option • This is a provision of the ACA that provides the States with a financial incentive to make a new Medicaid benefit available to individuals who have a need for personal attendant services

21. CFC Benefits • Help with ADLs, IADLs, and health related tasks • Services must be provided per care plan with significant consumer participation in a home or community setting • Optional: Transition services (NH to community). Funding can be used to pay for rent and utility deposits, 1st month’s rent and utilities, bedding, basic kitchen supplies and other necessities

22. Eligibility for CFC Option • Income limit up to 150% of FPL (or 300% of SSI limit, which would be PA and that limit is $2022 per/mo) • Must be “nursing facility clinically eligible” (NFCE) • Spouse’s income can be deemed available! This is different from typical HCBS waiver

23. Money Follows The Person • Grants to states to fund HCBS for Medicaid recipients transitioning out of nursing homes (the Medicaid $ follows the person out of the facility) • Under the ACA the amount of time a person had to have been in a nursing home is reduced to 90 days (v. 180)

24. Spousal Impoverishment Protection • Spousal Impoverishment: income and resource counting rules which protect recipient’s spouse from being impoverished by spouse’s long term care costs • Currently these rules only apply to nursing facility residents • ACA provision would requires States to extend this protection to spouses of recipients of HCBS services

25. Health Care Reform and PA • Unclear what if any implementation may occur under Corbett • Secretary of DPW Gary Alexander may consider a Medicaid block grant—bad idea for low income seniors—see handout • Budget challenges present risk to implementation of Medicaid expansion

26. Medicaid cuts in PA—how they affect seniors • Current budget cut proposals include: • Eliminating coverage for dentures for Medicaid recipients—Medicare already does not cover this • Limiting prescriptions to 6 per month • Eliminating funding for Human Services Development Fund entirely—will affect senior centers and Meals on Wheels

27. How you can get involved • Write to your state senators and representatives! Voice your opposition to the state Medicaid funding cuts that will harm seniors’ health • Write to your senators and representatives voicing your support for the ACA and its improvements to Medicare and long term care

28. Resources • Community Legal Services, Aging & Disability Unit: 215-227-2400 • National Senior Citizens Law Center, www.nsclc.org • Kaiser Family Foundation, www.kff.org • Center for Medicare Advocacy, Inc., www.medicareadvocacy.org