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United Way of Southeast Louisiana Public Policy Committee. Educational Session: Medicaid Maximization. Dr. Karen DeSalvo, Health Commissioner, City of New Orleans. October 8, 2013. Why Health Coverage Matters. Profile of the Uninsured
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United Way of Southeast Louisiana Public Policy Committee Educational Session: Medicaid Maximization Dr. Karen DeSalvo, Health Commissioner, City of New Orleans October 8, 2013
Why Health Coverage Matters Profile of the Uninsured 780,000 people in LA – the typical uninsured person is: • Ages 18-64 • Male • White, non-Hispanic • Native born • High school graduate • Employed • Living below 138% of federal poverty line (FPL) • Food service, construction, retail, health care, child care, school, and hotel workers. • 679 people die in Louisiana annually as a result of being uninsured • The cost of caring for the uninsured amounts to a $1,000/year “hidden” tax on those with private insurance
The Affordable Care Act:3 Key Provisions • Insurance reforms: guaranteed issue, modified community rating, no pre-existing condition exclusions • Coverage expansion – through Medicaid, up to 138% FPL • Coverage expansion – through Private Health Insurance on the Marketplace ACA is financed through: • Medicare payment cuts and savings • Disproportionate Share Hospital payment cuts • New taxes
Medicaid Maximization Impact • 291,000 uninsured adults in Louisiana below 138% FPL would gain comprehensive insurance (DHH and Legislative Fiscal Office - LFO) • Expected to bring nearly $16 billion in federal health care investment to the state over 10 years (KFF) • Would increase economic activity in Louisiana an additional $1.8 billion in 2016 alone (Families USA, 2013) • The federal government would cover 100% of cost for first 3 years and 94% of all costs
The Affordable Care Act:3 Key Provisions • Insurance reforms: guaranteed issue, modified community rating, no pre-existing condition exclusions • Coverage expansion – through Medicaid, up to 138% FPL • Coverage expansion – through Private Health Insurance on the Marketplace ACA is financed through: • Medicare payment cuts • Disproportionate Share Hospital payment cuts
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