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Federal Perspective Changes in Medicaid Alice Burton, Director AcademyHealth June 2, 2005

Federal Perspective Changes in Medicaid Alice Burton, Director AcademyHealth June 2, 2005. Medicaid & SCHIP – Federal Changes. Budget resolution calls for $10 billion in Medicaid reductions over 5 years Budget Resolution is broad budget framework

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Federal Perspective Changes in Medicaid Alice Burton, Director AcademyHealth June 2, 2005

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  1. Federal Perspective Changes in Medicaid Alice Burton, Director AcademyHealth June 2, 2005

  2. Medicaid & SCHIP – Federal Changes • Budget resolution calls for $10 billion in Medicaid reductions over 5 years • Budget Resolution is broad budget framework • Final Medicaid reductions might be more or less than $10 billion • Medicaid Commission created • SCHIP Reauthorization due by 2008, maybe sooner

  3. Medicaid Commission • “To advise Secretary on ways to modernize Medicaid the Medicaid program so it can provide high quality health care to its beneficiaries in a financially sustainable way” (CMS Charter, 5/19/05) • By Sept 1 2005 – recommendations on $10 billion in savings over 5 years • By Dec. 31 2006 – Longer-term recommendations that ensure sustainability

  4. Potential Sources of Medicaid Savings • President’s budget savings proposals totaled $13.9 billion over 5 years (CBO scoring) • Provider taxes $5.7 billion • Rx pricing $5.2 billion (some Govs support) • Asset transfer $1.4 billion (some Govs support) • Targeted case management $1.5 billion • Gov Warner letter with suggested savings: Rx pricing, asset transfer and $2 billion by allowing states to charge higher co-pays

  5. Next Steps in Federal Budget Process • Commission report – September 1, 2005 • House and Senate Committee action • Response to reconciliation instructions expected by September 15, 2005 • Appropriations bills separate • FY 2006 starts October 1st

  6. States Propose Changes to Medicaid • Reductions in Eligibility: • Tennessee & Missouri • Concept papers or waivers to “redesign” including individual accounts • Florida, Georgia, Vermont, West Virginia, New Hampshire • Changes to Disproportionate Share Funding and other financing issues

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