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Medicaid Matters

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Medicaid MattersMedicaid Matters

Medicaid is ImportantMedicaid is Important

Medicaid is the single most important federal funding source for persons with

disabilities.

What is Medicaid?What is Medicaid?

• Medical Assistance in Minnesota

• Federal/state partnership

• Federal funds match state spending

Dollar for DollarDollar for Dollar

• 50% federal match = improved services and increased coverage

Why is Medicaid Important?Why is Medicaid Important?

• Important health care services funded by Medicaid

– Doctor, hospital, clinic visits– Long term or continued care– Home & community based waivers (HCBW)– Personal care attendant services– Physical, occupational & speech therapies– Mental health services

Minnesotans EligibleMinnesotans Eligible

96,000 persons with disabilities are eligible for Medicaid in Minnesota

46%

Out of the 96,000 eligible, 44,000 (46%) persons with disabilities use Medicaid for long term services (PCA, HCBW, etc) as well as for basic and specialty health care services

Basic Care Long Term Services

54% 54% 46%

Medicaid vs. MedicareMedicaid vs. Medicare

• Medicare

– Available for those who paid Social Security and their dependents

– Covers health care services– Does not cover long-term supports, personal

care assistance or home and community waiver services

– Funded with federal funds– “Dual eligibles”

Medicaid Under FireMedicaid Under Fire

• Federal and state budget crisis led to rapid rise in Medicaid costs in early part of this decade

• Tough economic times meant more people needed public coverage

• In recent years, the rate of growth has slowed substantially

Medicaid is Cost EffectiveMedicaid is Cost Effective

• Medicaid is a safety net health coverage program serving

• Low income families with children• Senior citizens over age 65• Children and adults with disabilities

• Medicaid coverage costs less per person than private coverage*

*Studies have shown that Medicaid coverage costs less per person than private coverage after adjusting for health differences

Federal Deficit Breakdown Federal Deficit Breakdown

Cost of legislation enacted 2001-2005

Tax Cuts

Defense, Homeland Security and International

Entitlements

Domestic Discretionary (except Homeland Security)

CBPP calculations from Congressional Budget Office data. Reflects costs in 2005 above a CBO January 2001 current services baseline projection for 2005. May not add to 100% due to rounding.

70% of the deterioration in the budget in 2005 resulted from legislation enacted by Congress and the President. And 85% of the cost of that legislation stems from tax cuts or increases in defense, international aid, and homeland security – not domestic spending.

48%

37%

8%

8%

Cuts to MedicaidCuts to Medicaid

Continuing federal budget problems threaten Medicaid

– Massive federal deficit puts pressure on domestic spending including Medicaid.

– The Gregg bill in Senate (S. 3521) cuts spending and protects tax cuts, allows President to withhold funds appropriated by Congress, gives Congressional power to commission.

Institutional Bias?Institutional Bias?

• Some favor cuts in Medicaid because of the “institutional bias” of the program

• Nationwide more Medicaid funds are spent on institutional care than community services

• But not in Minnesota…

Ending the Notion of Institutional Bias in MNEnding the Notion of Institutional Bias in MN

Medicaid spending for long-term services for persons with disabilities in Minnesota

Community Services, (HCBW, PCA, etc.)

Institutional Care(Nursing facilities, ICF/MR’s)

Minnesotans with disabilities have benefited mightily from Medicaid’s coverage of personal care assistance services, other types of home care and home and community based waiver services

84%

16%

Changes Ahead for MedicaidChanges Ahead for Medicaid

Two areas of significant change for Minnesota’s Medical Assistance

I. State options for new Medicaid changes allowed by the Federal Deficit Reduction Act (DRA) of 2005.

II. State changes to increase persons with disabilities in MA managed care health plans.

Deficit Reduction Act (DRA) State OptionsDeficit Reduction Act (DRA) State Options

The DRA provides states with a number of options to change their Medicaid programs in both positive

and negative ways

DRA State OptionsDRA State Options

1. Reduce Benefit Set

• Medicaid benefit set = list of health services covered by Medicaid

• State can change the Medicaid benefit set

• The “slimmed down” benefit set does not apply to persons eligible for Medicaid due to a disability.

• Possible results of reduced benefit set– People lose precious treatment time

– People get lost in the bureaucratic process

Minnesota should not reduce benefits covered by Medicaid

for any eligible group.

DRA State OptionsDRA State Options

2. Premiums and Co-payments

• DRA eliminated federal protections– Protections prohibited states from charging premiums/co-payments

beyond nominal amount

• States can now decide to charge those above 100% of the poverty level

• Minnesotans with disabilities have already experienced significant problems with co-payments and increased cost sharing

– THIS LIMITS NEEDED MEDICAL CARE

DRA State OptionsDRA State Options

3. Home and Community Services State Plan Option

• MN could add ten specific home and community waiver services to MA state plan benefit set, such as:

• Respite Care• Adult day services• Habilitation services

• Could ease substantial waiting lists for waiver services

• Unfortunately, with opportunity comes loss…

DRA State OptionsDRA State Options

3. Home and Community Services State Plan Option

• State could decide to– Limit number of people who get the new benefit– Limit amount spent for new service– Shift a current state plan service to this option

Current MN law does not limit regular MA state plan services such as doctor visits, physical therapy or a wheelchair, no waiting list allowed.

• If you are on MA and medically need the state plan service, you can get it.

Allowing states to limit new services in regular Medicaid (as opposed to waiver

services) erodes the very nature of

Medicaid as an entitlement

DRA State OptionsDRA State Options

4. Family Opportunity Act• Allows states to offer Medicaid coverage to

children who qualify as disabled but whose families are up to 300% of the federal poverty level ($4,150 per month for family of 3)

• Covers more kids than TEFRA/MA option• Premiums (fees) paid by parents• Phased for

– 2007 for children under 6– 2008 for children under 12– 2009 for children under 19

DRA OptionsDRA Options

5. Money Follows Person

• Provides competitive federal grant funds to states

• Increase the number of persons who move out of institutions with help of Medicaid community based services

• Matches funds for first 12 months after moving out of an institution (nursing facility, ICF/MR)

DRA OptionsDRA Options

6. Cash and Counseling• States provide for self-directed services with an

individual budget, no waiver required• States can limit new program to certain locations

and to specific populations• State must have a reliable budget methodology• MN has Consumer-Directed Community Supports

(CDCS) under waivers• Only 2,000 Minnesotans use CDCS because of

restrictive state budgets

Federal Approval of State Changes to Medicaid under DRA 05

Federal Approval of State Changes to Medicaid under DRA 05

• Kentucky– Received federal approval to

• Split up Medicaid• Increase co-payments and charge sliding scale premiums

• Idaho– Received federal approval for changes without any public

disclosure of proposed changes

• West Virginia– “Personal Responsibility Plan” required for those who choose the

“enhanced benefit package”– Fractured benefit structure could leave people without care

Changes Ahead for MedicaidChanges Ahead for Medicaid

Two areas of significant change for Minnesota’s Medical Assistance

I. State options for new Medicaid changes allowed by the Federal Deficit Reduction Act (DRA) of 2005.

II. State changes to increase persons with disabilities in MA managed care health plans.

Managed Care For Persons with Disabilities Managed Care For Persons with Disabilities

2006 Session of the Minnesota Legislature expanded managed care

– Medicare SNP + MA Basic Care• Voluntary participation• Basic care only• Excludes: Home and community waiver services, other

home care services, case management for persons with developmental disabilities, ICF/MR services

Managed Care for Persons with DisabilitiesManaged Care for Persons with Disabilities

• Department of Human Services is working on managed care development issues with stakeholder group

• DHS required to provide information about managed care health plans’ services and spending

ConclusionConclusion

• Continuing federal budget pressure threatens Medicaid

• Medicaid is main source of funding

• Understand the facts to gain broad public support

• Many challenges lie ahead

• Action needed at both federal and state levels

Effective AdvocacyEffective Advocacy

Protect Medicaid (MA)Protect Medicaid (MA)

What Should We Do?What Should We Do?

• Educate ourselves about the issues

• Talk with policymakers

• Get involved in the 2006 elections

• Participate in the CCD 2007 budget campaign at the state legislature

• Talk to your friends, neighbors, and loved ones

Educate OurselvesEducate Ourselves

Today’s forum is a great first step!

• Learn more about MA and its programs

• MA = Medical Assistance = Medicaid

• Find out who represents you

• Learn about the legislative process

Talk to PolicymakersTalk to Policymakers

• Educate them about the importance of MA for persons with disabilities.

• TELL YOUR PERSONAL STORY – How has Medicaid improved your life or the life

of your family?

– What would happen if the Medicaid services you depend on were unavailable or unaffordable?

Effective AdvocacyEffective Advocacy

Tips and Tactics

For contacting Elected Officials

The Do’s and Don’ts of Visiting Elected OfficialsThe Do’s and Don’ts of Visiting Elected Officials

Do:

• Make an appointment by e-mail or phone

• Be on time for the visit

• Be positive and friendly

• State the reason for your visit

• Personalize the issue

• Provide additional resources (like the DRA factsheet)

The Do’s and Don’ts of Visiting Elected OfficialsThe Do’s and Don’ts of Visiting Elected Officials

Do:

• Ask for their support

• Have a picture taken,if possible

• Write a thank you letter

• Follow up with additional meetings, phone calls, or e-mails

Do Not:

• Be late for the visit

• Be confrontational

• Spend so much time on small talk that you run out of time to address your issues

• Forget to speak about the personal impact of the MA program on YOU

• Give incorrect information

The Do’s and Don’ts of Visiting Elected OfficialsThe Do’s and Don’ts of Visiting Elected Officials

How To Be An Effective Advocate

Effective AdvocacyEffective Advocacy

E-mailing and Writing

Tips on Writing to OfficialsTips on Writing to Officials

• Limit the size of your letter to several paragraphs or one page

• State your purpose clearly in writing

• Identify yourself as a constituent,if you are

• Explain how the bill or policy affects you or your family member

More Tips on Writing to OfficialsMore Tips on Writing to Officials

• Provide or reference factual material that supports your position

• Ask for their support on the issue

• Thank them for any previous support

• Make sure to provide your full contact information so that the elected official can follow up with you

Candidate Forums and Voting

Effective AdvocacyEffective Advocacy

Taking Action!

2006 Elections2006 Elections

• Entire state legislature up for re-election, House and Senate

• Governor, Attorney General, Secretary of State, also up for re-election

• One U.S. senate seat

• All eight U.S. congressional seats

• Local elections:

• City, county, school board, etc…

Get Involved with Elections!Get Involved with Elections!

• Register to vote and help register others

• Research candidates and their positions

• Ask candidates to support MA

• Attend and speak out at candidate forums

• Volunteer on a campaign

• Assist with Get Out The Vote efforts

• Vote your values!!!

Hold Them AccountableHold Them Accountable

• Meet and talk with those elected soon after Nov. 7

• Build relationships with newly elected members and strengthen relationships with those who win re-election

• Participate in “Days on the Hill” and other accountability forums

CCD 2007 Budget CampaignCCD 2007 Budget Campaign

• All these efforts are about getting ready for the 2007 Legislative Session and being able to influence what happens

• Minnesota will set its next two-year budget during the ’07 session (Jan-May)

• The most critical decisions regarding MA will be made

Keep ActiveKeep Active

• Stay involved with the organization(s) that most closely reflect your concerns

• Attend organizational events and other activities to stay involved

• Join coalitions and volunteer on task forces or advisory committees

Talk To OthersTalk To Others

• Talk with your friends, neighbors and loved ones about these issues

• Help them learn about Medicaid

• Ask them to get involved with you and bring them along to activities and events

• No one person can do this,

We Must All Work Together

MN CCD Call to ActionMN CCD Call to Action

Review:

Talk to policymakers

Participate in elections

Hold your elected officials accountable

Become a part of CCD’s 2007 Budget Campaign

Talk to others