State Integration for Dual Eligibles

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A not-for-profit health and tax policy research organization /GalenInstitute www.galen.org State Integration for Dual Eligibles Grace-Marie Turner November 30, 2012 Galen Institute

Transcript of State Integration for Dual Eligibles

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A not-for-profit health and tax policy research organization

/GalenInstitutewww.galen.org

State Integration for Dual Eligibles

Grace-Marie TurnerNovember 30, 2012Galen Institute

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Source: Jeffrey M. Jones, “Now Against Gov't Healthcare Guarantee,” Gallup Politics, November 28, 2012,http://www.gallup.com/poll/158966/majority-against-gov-healthcare-guarantee.aspx.

Majority of Americans OpposeGovernment Health Care

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2012 2011 2012

64 62 6259

64

58

6964

54

47 47

50

44

3134 35

3934

38

2833

41

50 50

46

54

% Government responsibility % Not government responsibility

Gallup asked: Do you think it is the responsibility of the federal government to make sure all Americans have healthcare coverage,

or is that not the responsibility of the federal government?

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Source: Sarah Kliff, “Is ObamaCare too much work for the Obama administration?” The Washington Post, November 12, 2012, http://www.washingtonpost.com/blogs/wonkblog/wp/2012/11/12/is-obamacare-too-much-work-for-the-obama-administration/.

An ObamaCare State Exchange

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Some realities

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Medicaid swamping state budgetsPERCENT OF BUDGET SPENT ON MEDICAID, FY 2008

Source: StateHealthFacts.org

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Source: Avik Roy, “How Do Blue States Expand Medicaid? By Paying Doctors Less,” Forbes: The Apothecary, July 23, 2012, http://www.forbes.com/sites/aroy/2012/07/23/how-do-blue-states-expand-medicaid-by-paying-doctors-less/.

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Medicaid Dual Eligibles: Enrollment and Spending, FFY 2007

SOURCE: Urban Institute estimates based on data from MSIS and CMS Form 64, prepared for the Kaiser Commission on Medicaid and the Uninsured, 2010.

Total = 58 Million

Medicaid Enrollment

Medicaid Spending

Total = $311 Billion

Duals 15%

Children 50%

Other Aged &

Disabled 10%

Adults 25%

Non-Dual

Spending 60%

Long-Term Care 27%

Prescribed Drugs

0.4%

Premiums 4%

Medicare Acute 6%

Other Acute 2%

Dual Spending

39%

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Agreed: We need coordinated care for Duals

• Duals are the most costly of Medicaid patients

• The sickest patients often receive the worst care, with little or no coordination

• Moving Duals into managed care needs to be done carefully to make sure they receive coordinated care and access to needed treatments and medicines

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Analysis of CA Dual-Eligible “pilot”…

• Too many enrollees to be a test project

• Enrollment process doesn’t protect beneficiaries

• Lower-quality plans selected for price; little experience in complex care delivery.

• Losing access to regular physicians, exacerbating continuity of care problems

Letter to Melanie Bella, Director, Medicare-Medicaid Coordination Office, June 29, 2012. National Senior Citizens Law Center, www.nsclc.org.

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Prescription Drug Coverage Among Medicare Beneficiaries, 2010

NOTES: Numbers do not sum to 100 percent due to rounding. 1Includes Veterans Affairs, retiree coverage without RDS, Indian Health Service, state pharmacy assistance programs, employer plans for active workers, Medigap, multiple sources, and other sources. 2Includes Retiree Drug Subsidy (RDS) and FEHBP and TRICARE retiree coverage. SOURCE: Centers for Medicare & Medicaid Services, 2010 Enrollment Information (as of February 16, 2010).

Total Number of Medicare Beneficiaries = 46.5 Million

Total in

Part D Plans: 27.7

Million(60%)

Stand-Alone

Prescription Drug

Plan (PDP)

Medicare Advantage Drug

Plan

Retiree Drug Coverage2

No Drug Coverage

Other Drug Coverage1

4.7millio

n10%

9.9 millio

n21%

8.3 millio

n18%

5.9millio

n13%

17.7millio

n38%

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Medicare Beneficiaries Eligible for Low-Income Subsidies, 2009 = 12.5 million

Applied for and receiving subsidy

Eligibility and Participation in Medicare Part D

Low-Income Subsidies, 2009

Eligible but estimated to have other drug coverage

0.5 million (4%)1

1.5 million 12%

NOTES: 1Includes Veterans Affairs, Indian Health Service, and Retiree Drug Subsidy (RDS) coverage. 2MSP is Medicare Savings Program; SSI is Supplemental Security Income. SOURCE: Centers for Medicare and Medicaid Services, 2009 Enrollment Information (as of February 1, 2009)

Eligible but not receiving subsidy

2.3 million 19%

Full dual eligibles automatically

receiving subsidy

6.3 million 50%

Future anticipated facilitated enrollment = <0.1 million

(0.1%)

MSP and SSI recipients automatically receiving subsidy2

1.8 million 15%

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Defined contribution – template for reform

• Long-term Medicare – and Medicaid – reform relies on giving people choices of private competing plans

• Medicare Part D is a prime example of how to increase choice and save money for taxpayers and seniors – Spending is 46% less than projected!

• Undermining the Part D competitive model is bad for seniors in restricting access to drugs and for our future prospects for entitlement reform.

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Why ObamaCare Is Wrong for America

How does the health care law drive up costs?

Is your doctor really in charge of your health care decisions?

Are your Constitutional rights threatened?

Discover the law’s impact on your life in a new book from four nationally recognized health policy experts

Published by Broadside Books, an imprint of HarperCollins

www.WrongForAmericaBook.com

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A not-for-profit health and tax policy research organization

/GalenInstitutewww.galen.org

Grace-Marie Turner

Galen Institute

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[email protected]

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