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Monday, Feb 27 2017

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Report For Governors Warns About Gaps In Funding Under GOP Plan To Revamp Medicaid

Health consultants Avalere and McKinsey & Co. looked at how plans to switch Medicaid to a block-grant system or a per capita funded program would affect states and enrollment.

A sobering report to governors about the potential consequences of repealing the Obama-era health care law warns that federal spending cuts probably would create funding gaps for states and threaten many people with the loss of insurance coverage. ... The report said the combination of phasing out Medicaid expansion money from the U.S. government, plus transforming the overall program from an open-ended federal entitlement to one that operates under a cap would likely result in state funding gaps. States that expanded Medicaid would face the deepest cuts. (Nuckols and Alonso-Zaldivar, 2/27)

Avalere Health consultants were commissioned by the National Governors Association to analyze how state budgets and residents in expansion and non-expansion states would be affected by congressional Republicans' proposals to change Medicaid into a per capita program or one that distributes block grants. Republicans in Congress are floating the ideas as a alternatives to rolling back Medicaid expansion made possible through the ACA. If those proposals were implemented, up to 51% of those who purchased coverage through the ACA marketplace could lose coverage in non-expansion states, while those that did expand Medicaid eligibility could see coverage slashed by 30%. (2/26)

The presentation, from consulting firms Avalere Health and McKinsey & Co., separately estimates that changes to Medicaid could limit funding for the program, reducing enrollment, without estimating exactly how many people would lose insurance. 鈥淭ens of thousands who would not be able to afford their coverage and would lose their coverage,鈥 Democratic Governor Jay Inslee of Washington said after the closed-door meeting. 鈥淚t was a pretty disturbing briefing.鈥 He has been a critic of Republicans鈥 repeal plans. (Edney and Tracer, 2/25)

A Republican outline for replacing the Affordable Care Act (ACA) could significantly reduce the number of Americans with health insurance and potentially cost states billions of dollars over five years, according to an analysis prepared for the National Governors Association on Saturday. ... Health-care restructuring is a major focus of the governors at their annual winter meeting, given likely changes to Medicaid that have potentially large implications for state budgets. Republican governors have been meeting among themselves and with members of Congress, seeking consensus on a way forward, but so far have not found it. (Balz, 2/25)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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