House Plans to Cut Medicaid Would Jeopardize Critical Health Services for Students
Wisconsin schools have a lot at stake in the debate about federal support for Medicaid. Even though Wisconsin ranks 19th nationally in the size of its school-age population, our state ranks 7th highest in federal funding for Medicaid services provided by schools.
According to a new report by the Center on Budget and Policy Priorities, Wisconsin schools received more than $187 million for Medicaid services in 2015, including more than $107 million in federal Medicaid funds. That amount is higher than in all but six other states, despite the fact that Wisconsin ranks near the bottom in total Medicaid spending per child. These figures indicate that Wisconsin schools have done a good job of utilizing federal assistance to support school-based health services.
Medicaid provides health care for more than 1.1 million Wisconsinites, including about 500,000 children, but many people are unaware of its significance for schools. Read more
$190 Million Annual Savings + Threats to Federal Marketplace = Stronger Case for Expansion
There are many reasons why it makes sense for Wisconsin to modestly increase the eligibility ceiling for BadgerCare. A new memo by the Legislative Fiscal Bureau (LFB) sheds light on and strengthens one of those reasons – the large savings for Wisconsin from increasing the BadgerCare eligibility standard for adults.
Ironically, the ongoing efforts to repeal or undermine the Affordable Care Act (ACA) may also bolster the case for expanding BadgerCare, since the individual insurance Marketplace created by the ACA was Governor Walker’s rationale for sharply reducing BadgerCare eligibility. But let’s come back to that point after taking a closer look at the fiscal effect of expansion.
Under the Affordable Care Act, states that expand eligibility of adults to 138% of the federal poverty level are eligible for substantially higher federal cost sharing. Taking that step would qualify Wisconsin for reimbursement of at least 90% federal funding for the costs of covering childless adults, compared to the 58% reimbursement rate in effect now. Read more
House Changes Make a Terrible Bill Even Worse
The House bill to repeal the Affordable Care Act (ACA) goes far beyond changing that law. Without so much as a single public hearing, the bill being voted on by the House this week also makes radical changes to the structure of the Medicaid program that provides health care coverage for about one-fifth of Americans.
The bill would impose an arbitrary cap on federal Medicaid funding, thereby shifting costs to states, health care providers, communities, and those who can least afford it. It would dismantle Medicaid’s flexible financing structure that has protected children, families, individuals with disabilities and seniors during economic downturns or when our state faced increased health care costs due to natural disasters or public health emergencies.
Rather than providing states with more flexibility, this financial restructuring would give Washington D.C. more control over Wisconsin because federal politicians would be able to lower the amount they send our state to support Medicaid. Read more
Weaker Carrots & Different Sticks = Huge Increase in the Uninsured
The House plan to the repeal and replace the Affordable Care Act (ACA) is having the strange effect of uniting an extremely broad range of federal lawmakers. The plan that was unveiled Monday evening seems to be opposed not only by all the Democrats, but also by the most Conservative Republicans, like the members of the “Freedom Caucus,” and by a number of more moderate Republicans in Medicaid expansion states.
But notwithstanding the broad opposition, it appears that the new 400-page bill will be voted on in two different House committees on Wednesday. What’s particularly alarming is that those committees will vote on the bill without waiting for the Congressional Budget Office’s estimate of the effects on the federal budget and on the number of Americans who have health insurance. Two committees will cast their votes without knowing whether the bill adds up and without adequately assessing the potential damage to health insurance access and affordability. Read more
Federal policy guidelines that were adjusted for inflation last week are worth examining because they help illustrate the challenges faced by low-income working families. They show, for example, that single parents with one child are currently ineligible for BadgerCare if they have a full-time job that pays more than $7.81 per hour!
The federal poverty guidelines are updated early each year, and the 2017 guidelines that were issued on January 31 increase the Federal Poverty Level (FPL) by 1.3%. That raises eligibility for many federal benefit programs, such as Medicaid, food stamps and child care subsidies. An updated table on the Wisconsin Budget Project website shows what the poverty level is for different family sizes and how that affects eligibility for different public benefits. It also translates the annual poverty level figures into monthly and hourly incomes. Read more
New data from the Wisconsin Hospital Association show that the federal health care reform law has had the desired effect of causing a sharp drop in uncompensated care. That’s great news because much of the cost of uncompensated care for people who are uninsured gets shifted to other patients and contributes to higher rates for people with insurance.
The reduced spending for uncompensated care – which is the total of charity care and bad debt – also has the benefit of creating a great opportunity for hospitals to make upstream investments that promote public health and alleviate some of the factors causing severe health disparities.
The new data demonstrate that uncompensated care expenses borne by Wisconsin hospitals have dropped precipitously since 2013, as key parts of the Affordable Care Act (ACA) were being implemented – including the new insurance Marketplace and the expansion of coverage for childless adults. After those provisions had been in place for two years, total uncompensated care fell in Wisconsin by $534 million in fiscal year 2015, a drop of 36.8 percent from the 2013 level. Read more
Uninsured Rate Declines Sharply Nationally and in Wisconsin
New data released today by the U.S. Census Bureau show that the federal health care reform law has been extremely effective in reducing the number of people who are uninsured, both nationally and here in Wisconsin. The new figures also bring very good news on national improvements relating to income and poverty.
The number of Wisconsinites who do not have health insurance fell sharply during the first two years of implementation of the Affordable Care Act (ACA). According to the new data from the American Community Survey (ACS), 195,000 fewer Wisconsin residents were uninsured last year than in 2013, a decline of 37.6%.
The national ACS data show that the number of Americans without health insurance fell by more than a third from 2013 to 2015, and the percentage who are uninsured is now at an all-time low. That reflects a drop in the uninsured population of almost 7 million last year, on top of an improvement of about 8.5 million in 2014, when key parts of the health care reform law took effect. Read more
There’s a rapidly growing body of academic research documenting the benefits of using the Affordable Care Act to expand Medicaid eligibility of adults.
Academic researchers love experiments with control groups, and those kinds of tests of public policy changes can be hard to find. However, the 2013 Supreme Court decision that made Medicaid expansions optional for states has been a boon for researchers. They can now study the changes in 31 states that have extended eligibility for adults to 138% of the poverty level, and can compare those states with the 19 “non-expansion” states. (Wisconsin is in the latter group because it caps BadgerCare eligibility for adults at the poverty level.)
One such study was published this month in the Journal of the American Medical Association Internal Medicine (JAMA). It compares health outcomes for patients in Kentucky and Arkansas – two states that accepted the expansion of Medicaid – with outcomes for patients in Texas, which has rejected it. Read more
If Ryan Plan Passes, Continuation of BadgerCare Changes Would Amount to a “Bait and Switch”
A health care plan introduced last week by Speaker Ryan would roll back many of the improvements in health care that have been achieved over the past several years. It would reverse much of the huge increase in the number of people with insurance, undermine improvements in access to preventive health care services, and raise costs for many people with insurance.
I could go on at length about problems with the plan, but I want to focus now on an important Wisconsin angle – how the Ryan plan would adversely affect many of the 60,000 low-income working parents that state lawmakers removed from BadgerCare two years ago. Many aspects of the Ryan plan would compound the difficulties those parents are already coping with because of the policy choices in Wisconsin, and would take away what they were promised when the state ended their BadgerCare coverage. Read more