/PRNewswire/ -- With the Senate approval today to extend emergency Medicaid relief (FMAP) until June 30, 2011, the American Health Care Association (AHCA) and the Alliance for Quality Nursing Home Care praised the vote and urged the House of Representatives to follow suit, saying the additional $16.1 billion in federal funding will help the nation's most vulnerable seniors retain access to quality care, while protecting key frontline health jobs.
"We applaud the Senate for taking action to pass this vital Medicaid relief, and urge the House to follow in the same manner. Every day that passes without an extension of this funding, seniors' care is placed in jeopardy, facility staffing stability is compromised, and good, local health jobs are put at risk," said Bruce Yarwood, President and CEO of AHCA. "The time to act is now. Our governors have repeatedly expressed the desperate need for relief, and we ask Congress to act on this critical health care policy matter."
"Senate passage of this legislation brings us one step closer to providing the vital funding needed to protect every senior's access to the skilled nursing and rehabilitative care they require and deserve," said Alan G. Rosenbloom, President of the Alliance. "We thank those Senators who took this stand for seniors and urge the House to follow with swift passage as well."
Yarwood and Rosenbloom pointed out that adequate Medicaid funding is directly linked with skilled nursing care and local caregiver job stability throughout America. Without the extension of emergency Medicaid relief, pressure mounts on governors to further reduce Medicaid-financed care and services.
A strong bipartisan majority of governors are adamant about the need for immediate action, as the National Governors' Association (NGA) recently noted, "Funding for FMAP is a particularly effective tool because it immediately allows Governors to eliminate planned budget cuts required to meet balanced budget requirements and continue services for those with the greatest need."
"We urge state legislatures and governors to use this increased funding to ensure our nation's seniors receive the funding necessary to provide high quality care as well as job stability for frontline caregivers," concluded Yarwood and Rosenbloom.
This measure will now return to the House of Representatives, where it could be considered as early as September when Members return from the August work period.
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Showing posts with label medicaid. Show all posts
Showing posts with label medicaid. Show all posts
Thursday, August 5, 2010
Tuesday, July 27, 2010
Governor Cuts State Services Again in Beginning Days of the Fiscal Year
The Office of Planning and Budget is withholding four percent of funds from already stressed state agencies, and has asked agencies to propose budgets for cuts of four, six, and eight percent on top of this year's large cuts. The Georgia Budget &Policy Institute's latest report, Georgia Once Again Faces Budget Shortfall: Governor Orders Hundreds of Millions of Dollars in Additional Budget Cuts, details the financial impact of these three levels of cuts.
Georgia is in the first month of its 2011 fiscal year, yet it is already facing a potential budget shortfall of between $413 million and $613 million. This shortfall is on top of the $2.5 billion in budget cuts already implemented since pre-recessionary FY 2009. This budget gap is due to several factors:
1) the U.S. Congress has not extended the enhanced Medicaid match which would have provided Georgia $375 million;
2) the state transferred $37.7 million in Education Stabilization Recovery Act funds budgeted for FY 2011 into FY 2010; and
3) there is a projected shortfall in the State Health Benefit Plan of as much as $200 million.
The education QBE funding formula is exempt from the withholding allotment. In addition, the Department of Education has been instructed to submit a FY 2011 Amended Budget proposal with a two percent QBE budget cut.
Lawmakers had already cut the fiscal year (FY) 2011 budget by over 12 percent since FY 2009, despite a growing population, increasing infrastructure problems, and significant needs for services from those families hardest hit during the recession.
"Particularly concerning is the fact that vital state agencies that educate and protect our children, protect the health and safety of vulnerable Georgians, and plan the state's economic development have already faced crippling cuts," said Alan Essig, the Institute's executive director and author of the latest policy report.
"Most of the additional cuts can be avoided if Congress passes the enhanced Medicaid funding which our state is counting on."
Even if congress approves the enhanced Medicaid match, all Recovery Act state stabilization funds expire the end of June. According to the Georgia State University Fiscal Research Center the state of Georgia will be facing a structural deficit of between $1.8 billion and $2 billion in FY 2012.
"We have high expectations that the recently formed Tax Council will develop recommendations to solve Georgia's immediate fiscal crisis as well as fix Georgia's long-term structural deficit," said Essig. "Its decisions affect Georgia's economy and its people."
Also, read an update of an analysis by Deputy Director Sarah Beth Gehl that details tax legislation passed during the 2010 legislative session, Adding Up the Fiscal Notes 2010: Governor Vetoes Revenue Drains on Future Budgets, but Signs Bill That Reduces Low Income Tax Credit.
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Georgia is in the first month of its 2011 fiscal year, yet it is already facing a potential budget shortfall of between $413 million and $613 million. This shortfall is on top of the $2.5 billion in budget cuts already implemented since pre-recessionary FY 2009. This budget gap is due to several factors:
1) the U.S. Congress has not extended the enhanced Medicaid match which would have provided Georgia $375 million;
2) the state transferred $37.7 million in Education Stabilization Recovery Act funds budgeted for FY 2011 into FY 2010; and
3) there is a projected shortfall in the State Health Benefit Plan of as much as $200 million.
The education QBE funding formula is exempt from the withholding allotment. In addition, the Department of Education has been instructed to submit a FY 2011 Amended Budget proposal with a two percent QBE budget cut.
Lawmakers had already cut the fiscal year (FY) 2011 budget by over 12 percent since FY 2009, despite a growing population, increasing infrastructure problems, and significant needs for services from those families hardest hit during the recession.
"Particularly concerning is the fact that vital state agencies that educate and protect our children, protect the health and safety of vulnerable Georgians, and plan the state's economic development have already faced crippling cuts," said Alan Essig, the Institute's executive director and author of the latest policy report.
"Most of the additional cuts can be avoided if Congress passes the enhanced Medicaid funding which our state is counting on."
Even if congress approves the enhanced Medicaid match, all Recovery Act state stabilization funds expire the end of June. According to the Georgia State University Fiscal Research Center the state of Georgia will be facing a structural deficit of between $1.8 billion and $2 billion in FY 2012.
"We have high expectations that the recently formed Tax Council will develop recommendations to solve Georgia's immediate fiscal crisis as well as fix Georgia's long-term structural deficit," said Essig. "Its decisions affect Georgia's economy and its people."
Also, read an update of an analysis by Deputy Director Sarah Beth Gehl that details tax legislation passed during the 2010 legislative session, Adding Up the Fiscal Notes 2010: Governor Vetoes Revenue Drains on Future Budgets, but Signs Bill That Reduces Low Income Tax Credit.
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Thursday, June 10, 2010
Georgia's New Budget Depends on Extended Federal Help, Senate Set to Take up Legislation This Week
Georgia is among 30 states that have built their state budget assuming that enhanced Medicaid funding will be available through next June, when our budget year ends. Georgia's budget, as recently signed by the governor, includes nearly $750 million of these federal funds, also known as FMAP. "Georgia would realize only half of this amount if Congress allows the funding to expire on December 31, 2010, as scheduled," said Tim Sweeney, the Georgia Budget &Policy Institute's senior healthcare analyst.
"Thanks to the increased federal help granted as states' unemployment rose and Medicaid caseloads increased, Georgia has not made major cuts to Medicaid eligibility levels or to the reimbursement rates paid to healthcare providers serving Medicaid patients," said Sweeney. Rates already fail to cover providers' full costs.
Last week, the U.S. House of Representatives stripped the extended FMAP funds out of a bill to extend a variety of Recovery Act provisions. The Senate now has the opportunity to restore this temporary extension to stabilize the states a little longer as their economies slowly recover.
"If Congress does not extend enhanced FMAP then Georgia's new budget will be seriously out of balance when the new fiscal year starts July 1," said the Institute's executive director, Alan Essig. "But this would be just the beginning."
Georgia lawmakers are using enhanced FMAP to offset spending that would otherwise have come from state sources, as the Recovery Act intends. If, instead of finding additional state revenue, lawmakers cut the Medicaid program to save $375 million, the state would also forgo more than $650 million in federal funds that are in the state's Medicaid base budget (a total of $4.7 billion of federal funds are the base budget, not shown in the chart above).
This $1 billion loss would represent nearly a 15 percent loss to Georgia's Medicaid program. A deficit of this magnitude requires significant new revenues or devastating cuts to provider reimbursement rates, patient eligibility, covered services, or all of the above.
Although Georgia lawmakers have not indicated precise alternatives to finding revenues, budget proposals discussed in the recent legislative session indicate that across-the-board cuts to Medicaid provider reimbursement rates of at least 20 percent would be needed if lawmakers do not add new revenues.
"Cutting Medicaid reimbursement rates 20 percent likely would result in hospitals closing, many doctors and other healthcare providers denying service to Medicaid patients, and further trouble for local communities that depend on their healthcare sector for jobs," said Sweeney.
If Congress does extend FMAP temporarily, it serves the dual purpose of giving Georgia lawmakers time to put new state revenues in place as federal Medicaid funds expire next June. Extending FMAP is crucial to Georgia's ability to weather the Great Recession and avoid crippling cuts to the healthcare infrastructure of the state.
"We urge Governor Perdue to work closely with our congressional delegation to assure they extend enhanced FMAP funding, thereby protecting Georgia's healthcare sector and our citizens' health and security," said Essig. "If Congress eliminates these funds prematurely, it will hurt our healthcare sector and local economies that depend on it. Georgia is not out of the woods yet."
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"Thanks to the increased federal help granted as states' unemployment rose and Medicaid caseloads increased, Georgia has not made major cuts to Medicaid eligibility levels or to the reimbursement rates paid to healthcare providers serving Medicaid patients," said Sweeney. Rates already fail to cover providers' full costs.
Last week, the U.S. House of Representatives stripped the extended FMAP funds out of a bill to extend a variety of Recovery Act provisions. The Senate now has the opportunity to restore this temporary extension to stabilize the states a little longer as their economies slowly recover.
"If Congress does not extend enhanced FMAP then Georgia's new budget will be seriously out of balance when the new fiscal year starts July 1," said the Institute's executive director, Alan Essig. "But this would be just the beginning."
Georgia lawmakers are using enhanced FMAP to offset spending that would otherwise have come from state sources, as the Recovery Act intends. If, instead of finding additional state revenue, lawmakers cut the Medicaid program to save $375 million, the state would also forgo more than $650 million in federal funds that are in the state's Medicaid base budget (a total of $4.7 billion of federal funds are the base budget, not shown in the chart above).
This $1 billion loss would represent nearly a 15 percent loss to Georgia's Medicaid program. A deficit of this magnitude requires significant new revenues or devastating cuts to provider reimbursement rates, patient eligibility, covered services, or all of the above.
Although Georgia lawmakers have not indicated precise alternatives to finding revenues, budget proposals discussed in the recent legislative session indicate that across-the-board cuts to Medicaid provider reimbursement rates of at least 20 percent would be needed if lawmakers do not add new revenues.
"Cutting Medicaid reimbursement rates 20 percent likely would result in hospitals closing, many doctors and other healthcare providers denying service to Medicaid patients, and further trouble for local communities that depend on their healthcare sector for jobs," said Sweeney.
If Congress does extend FMAP temporarily, it serves the dual purpose of giving Georgia lawmakers time to put new state revenues in place as federal Medicaid funds expire next June. Extending FMAP is crucial to Georgia's ability to weather the Great Recession and avoid crippling cuts to the healthcare infrastructure of the state.
"We urge Governor Perdue to work closely with our congressional delegation to assure they extend enhanced FMAP funding, thereby protecting Georgia's healthcare sector and our citizens' health and security," said Essig. "If Congress eliminates these funds prematurely, it will hurt our healthcare sector and local economies that depend on it. Georgia is not out of the woods yet."
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Thursday, February 18, 2010
Obama Administration Grants Relief to States on Payments to Medicarefor Part D Costs
HHS Secretary Kathleen Sebelius today announced $4.3 billion in financial relief to states by reducing the amount they will have to pay the federal government to offset the cost of Medicare coverage for prescription drugs for state residents eligible for both Medicare and Medicaid.
“We believe today’s action will help states as they struggle to maintain Medicaid and other budget priorities in these difficult economic times,” said Secretary Sebelius. “This relief will help states continue to provide critical health care services to the nearly 60 million beneficiaries who depend upon it.”
This temporary financial boost to states is made possible by the American Recovery and Reinvestment Act of 2009 (ARRA). That law granted a significant, yet temporary, increase in the amount states receive from the federal government to help pay for their Medicaid programs. The increase was to the federal share of Medicaid costs, referred to as federal medical assistance percentage payments (FMAP).
In a call with state governors today, Secretary Sebelius reported that HHS will apply the ARRA increased FMAP to so-called clawback payments. The clawback payment is the amount states pay to the federal government as required by the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA). It is intended to offset some of the added expense to Medicare Part D of assuming drug costs for residents dually eligible for both programs. Prior to MMA, state Medicaid programs covered prescription drug costs for these beneficiaries. Because Medicaid is a state/federal matching program, the higher FMAP under ARRA results in a temporary reduction of the states’ share of spending and therefore in their clawback obligation.
This temporary adjustment in the clawback payments will be applied for the period October 1, 2008 through December 31, 2010. In his 2011 budget, President Obama calls for the FMAP increase established in ARRA to be extended through June 30, 2011.
“In asking Congress to extend the increased FMAP in his 2011 budget proposal, the President recognizes both the critical role Medicaid plays in the health of our most vulnerable citizens and difficulties states are experiencing given the economic downturn,” Secretary Sebelius said.
States make clawback payments monthly and CMS is currently reprogramming its billing system to calculate the new, reduced payments owed by states. The savings, which are retroactive to October 2008, will be deducted from what they otherwise would have owed going forward.
The table below shows each state’s estimated savings. Column B shows the state’s obligation under the pre-ARRA formula with column C showing the newly calculated payment, column D the total estimated savings to the state.
“We believe today’s action will help states as they struggle to maintain Medicaid and other budget priorities in these difficult economic times,” said Secretary Sebelius. “This relief will help states continue to provide critical health care services to the nearly 60 million beneficiaries who depend upon it.”
This temporary financial boost to states is made possible by the American Recovery and Reinvestment Act of 2009 (ARRA). That law granted a significant, yet temporary, increase in the amount states receive from the federal government to help pay for their Medicaid programs. The increase was to the federal share of Medicaid costs, referred to as federal medical assistance percentage payments (FMAP).
In a call with state governors today, Secretary Sebelius reported that HHS will apply the ARRA increased FMAP to so-called clawback payments. The clawback payment is the amount states pay to the federal government as required by the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA). It is intended to offset some of the added expense to Medicare Part D of assuming drug costs for residents dually eligible for both programs. Prior to MMA, state Medicaid programs covered prescription drug costs for these beneficiaries. Because Medicaid is a state/federal matching program, the higher FMAP under ARRA results in a temporary reduction of the states’ share of spending and therefore in their clawback obligation.
This temporary adjustment in the clawback payments will be applied for the period October 1, 2008 through December 31, 2010. In his 2011 budget, President Obama calls for the FMAP increase established in ARRA to be extended through June 30, 2011.
“In asking Congress to extend the increased FMAP in his 2011 budget proposal, the President recognizes both the critical role Medicaid plays in the health of our most vulnerable citizens and difficulties states are experiencing given the economic downturn,” Secretary Sebelius said.
States make clawback payments monthly and CMS is currently reprogramming its billing system to calculate the new, reduced payments owed by states. The savings, which are retroactive to October 2008, will be deducted from what they otherwise would have owed going forward.
The table below shows each state’s estimated savings. Column B shows the state’s obligation under the pre-ARRA formula with column C showing the newly calculated payment, column D the total estimated savings to the state.
| State (A) | Total Q1 FY 09 Thru Q1 FY 11 Clawback Based on Reg. FMAP (B) | Total Q1 FY 09 Thru Q1 FY 11 Clawback Based on ARRA FMAP (C) | Total State Savings/Fed. Cost Q1 FY 09 Thru Q1 FY 11 (D) |
| Alabama | $150,247,579 | $106,425,199 | $43,822,379 |
| Alaska | $48,317,314 | $38,286,755 | $10,030,558 |
| Arizona | $153,759,854 | $108,954,983 | $44,804,871 |
| Arkansas | $87,089,886 | $62,440,556 | $24,649,330 |
| California | $2,913,864,100 | $2,238,430,401 | $675,433,698 |
| Colorado | $192,319,003 | $150,066,687 | $42,252,316 |
| Connecticut | $296,665,054 | $230,615,556 | $66,049,498 |
| Delaware | $34,099,374 | $26,386,737 | $7,712,637 |
| District of Columbia | $25,602,876 | $17,959,629 | $7,643,248 |
| Florida | $1,015,370,655 | $732,819,868 | $282,550,787 |
| Georgia | $256,830,737 | $186,189,524 | $70,641,213 |
| Hawaii | $60,409,856 | $43,814,638 | $16,595,218 |
| Idaho | $46,562,615 | $32,122,245 | $14,440,370 |
| Illinois | $875,508,052 | $675,854,129 | $199,653,923 |
| Indiana | $209,694,287 | $151,629,223 | $58,065,064 |
| Iowa | $162,359,071 | $127,106,244 | $35,252,826 |
| Kansas | $113,478,227 | $89,157,121 | $24,321,107 |
| Kentucky | $182,471,045 | $127,408,848 | $55,062,197 |
| Louisiana | $203,392,153 | $126,178,376 | $77,213,777 |
| Maine | $103,581,677 | $75,744,571 | $27,837,106 |
| Maryland | $238,997,062 | $187,197,783 | $51,799,278 |
| Massachusetts | $612,833,627 | $480,102,616 | $132,731,011 |
| Michigan | $386,791,612 | $285,445,457 | $101,346,155 |
| Minnesota | $360,083,533 | $278,777,119 | $81,306,414 |
| Mississippi | $102,735,712 | $65,989,013 | $36,746,699 |
| Missouri | $407,283,149 | $299,443,677 | $107,839,472 |
| Montana | $28,771,325 | $20,110,737 | $8,660,588 |
| Nebraska | $95,393,763 | $76,664,267 | $18,729,497 |
| Nevada | $62,310,316 | $45,031,768 | $17,278,548 |
| New Hampshire | $71,136,363 | $56,982,733 | $14,153,631 |
| New Jersey | $696,147,055 | $543,196,366 | $152,950,689 |
| New Mexico | $47,436,153 | $33,768,936 | $13,667,217 |
| New York | $1,882,163,731 | $1,474,399,935 | $407,763,796 |
| North Carolina | $552,941,188 | $400,670,852 | $152,270,335 |
| North Dakota | $22,440,556 | $18,259,530 | $4,181,026 |
| Ohio | $581,726,147 | $430,246,974 | $151,479,172 |
| Oklahoma | $154,134,582 | $106,156,483 | $47,978,098 |
| Oregon | $147,332,690 | $108,155,974 | $39,176,716 |
| Pennsylvania | $1,000,611,930 | $771,650,285 | $228,961,645 |
| Rhode Island | $97,366,309 | $74,159,944 | $23,206,365 |
| South Carolina | $168,667,834 | $117,154,008 | $51,513,826 |
| South Dakota | $31,593,895 | $25,104,607 | $6,489,288 |
| Tennessee | $442,828,611 | $321,494,820 | $121,333,791 |
| Texas | $777,317,414 | $567,316,054 | $210,001,360 |
| Utah | $57,174,136 | $39,826,114 | $17,348,022 |
| Vermont | $49,485,228 | $36,881,632 | $12,603,596 |
| Virginia | $390,311,646 | $304,575,535 | $85,736,111 |
| Washington | $359,451,673 | $273,090,100 | $86,361,573 |
| West Virginia | $71,905,352 | $48,544,797 | $23,360,555 |
| Wisconsin | $476,178,882 | $358,970,479 | $117,208,403 |
| Wyoming | $23,393,068 | $18,935,147 | $4,457,921 |
| TOTAL | $17,528,567,954 | $13,215,895,031 | $4,312,672,922 |
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