In the News

MD: State to Save $829 Million Under National Health Care Reform: Number of Uninsured in State to Be Reduced by Half

PSN — Thu, 29 Jul 2010 11:57:19 -0400

National health care reform is expected to save Maryland $829 million over the next decade and provide coverage to nearly 350,000 people — reducing the number of uninsured in the state by half, according to a report released by state officials Monday.

The savings will be achieved by supplanting state spending with increased federal funding for health care programs for those who can't afford it, according to the report from the Maryland Health Care Reform Coordinating Council, which was convened a day after the 2,000-page federal legislation was signed into law in March.

As more people get health insurance, the state also expects to see declines in uncompensated care. The cost of treating the uninsured who seek treatment and can't pay the bill is incorporated into hospital rates paid by private insurers and Medicaid. So as more people get insurance, the state is expected to save.
"National health care reform can only be as successful as our ability to implement it in the states," Lt. Gov. Anthony G. Brown told a group gathered Monday outside the Baltimore Health Department's East Baltimore center, which sees many of the city's 125,000 uninsured.

Brown co-chaired the health reform council with Health Secretary John M. Colmers. Their report sets up the structure for implementing the federal health care legislation in Maryland, most of which is to take effect in 2014.

Many states are starting to examine the impact of reform, said Robin Rudowitz, associate director for the Kaiser Commission on Medicaid and the Uninsured. While all states will gain federal funding, she said, the savings will vary depending on many factors, including the number of uninsured in a state, what programs are in place and how states choose to execute reform.

"All states are doing their own estimate for the overall impact of reform, but it will vary widely across states," Rudowitz said.

Under the reform, the uninsured will be able to get coverage through exchanges where people can shop for insurance with subsidies, while others will get coverage through the expansion of Medicaid, the program for the poor and disabled. Others will qualify for the Medicare health program for the elderly.

Maryland is ahead of the curve in many ways because it has worked to expand coverage to 205,000 people since 2007, including 100,000 children.

The state created incentives to small business owners who offer insurance to employees, extended Medicaid coverage to parents making up to $20,500, and allowed young adults to remain on their parents' insurance plan up to the age of 25. Maryland also has a high-risk pool to cover people with pre-existing conditions.

About 14 percent of Marylanders, or 700,000 people, are currently uninsured. That will drop to about 6.7 percent with national reform, the council believes. Those expected to remain uninsured would be illegal immigrants and those who choose not to be covered, according to the report.

The savings attained through national health care reform will be so great in the initial years that it will offset the extra costs the state will face, including administrative costs to enroll people in programs, according to the council.

But federal funding will drop off over time, so that the savings will peak in 2019 and start to decline in 2020. The council, in its report, warned that state officials should squeeze inefficiencies out of the health care system as it takes on more of the costs over time. Colmers and Brown said they would work closely with hospitals and insurers on ways to bring down costs.

"We have to implement realistic reform and at the same time improve quality of care so we can drive and bend down costs in the next 10 years," Gov. Martin O'Malley said Monday.

The cost analysis was calculated by the Hilltop Institute, a research center at the University of Maryland, Baltimore County. The institute said they used conservative estimates and that costs could change over time.

Kathleen Stoll, director of health policy at advocacy group Families USA, said there is the potential for long-term cost reductions in health care. She said Maryland is smart to examine the issue now.

"They need to be in the game early to think about how they will proceed with implementation," Stoll said. "There is potential for great savings over the longer term, but it will have to be done by making changes that will be good for consumers from a quality perspective and that will also save money."

Many of the components of reform don't go into effect until 2014, including individual mandates for insurance coverage, a Medicaid expansion and the creation of health care exchanges.

But preparing for the implementation of programs will take time. The 12-member Health Care Reform Coordinating Council is to spend the next several months figuring that out.

Brown has said the report is a foundation for how to implement reform. The council established six working groups to study a range of issues, such as how to set up exchanges, set criteria for enrollment and create programs for people who still won't be insured once reform is in place.

A final report is due to O'Malley by Jan. 1.

"This is a very good structure on which implementation of federal reform can be built," said Vincent DeMarco, president of the pro-reform Maryland Citizens' Health Initiative. "Now to get to the substance. Without this structure set up, talking about the substance would have been difficult."

This article was published by The Balitmore Sun on July 26th, 2010 and was written by Andrea Walker.

US: Most Small Businesses Will Get Tax Credits Under Health Care Law, According To Report

PSN — Mon, 26 Jul 2010 12:49:10 -0400

Most Small Businesses Will Get Tax Credits Under Overhaul, According To Report

News reports follow Families USA's continuing rollout of state-by-state studies on the number of small businesses that will be eligible for tax credits to help cover health costs under the new overhaul law, a vast majority according to the studies.

The (Champaign, Ill.) News-Gazette: "More than 4 million mom and pop restaurants, hardware stores and other struggling small businesses will be eligible for a tax credit this year to help buy health insurance for their workers. The tax credit is expected to benefit nearly 84 percent of the nation's 4.8 million businesses that employ fewer than 25 people, according to a report released Wednesday by Families USA, a national health care consumer organization." In Illinois, "78.5 percent, will qualify for a tax credit" (Pressey, 7/22).

The Columbus Dispatch: "The tax credits are part of the federal health-care overhaul enacted this year by Congress and signed by President Barack Obama. They are meant to help small businesses -- which typically pay more for health insurance and get fewer benefits than large companies -- keep or buy insurance." Families USA "found that 85.7 percent of Ohio businesses with 25 or fewer employees are eligible for tax credits this year. The credits can shave up to 35percent off the employer's cost of coverage for an employee" (Williams, 7/22).

The (Fort Wayne, Ind.) Journal Gazette: "About 93 percent of Indiana businesses with fewer than 25 employees will be eligible to claim the tax break. … That percentage equals 88,100 Indiana companies, according to the study, which was also sponsored by Small Business Majority, a non-profit, non-partisan business advocacy group based in Sausalito, Calif" (Slater, 7/22).

The Associated Press/The Bismarck (N.D.) Tribune: "A study by two consumer groups says 92 percent of North Dakota small businesses will be eligible for tax credits to help play the cost of employee health insurance. The findings are based on research by the Lewin Group, a health care policy research and management-consulting firm" (7/21).

This was part of Kaiser Health News' Daily Report - a summary of health policy coverage from more than 300 news organizations.

US: States, Federal Government Move Forward With High-Risk Pools

Julie Bero — Thu, 08 Jul 2010 13:51:01 -0400

The federal government began accepting applications for the high risk pools it will run in 29 states and the District of Columbia last Thursday, PBS Newshour reports. The other 21 states chose to run their own pools and may be on different schedules. The $5 billion program for people who have been denied coverage on the commercial market and have been uninsured for six months or longer "is intended to be a stopgap measure until 2014, when the bulk of the health care reform law goes into effect -- including a provision that will ban all health insurance companies from discriminating against people with preexisting conditions" (Winerman, 7/1).

The Pittsburgh Tribune-Review: "Within a few weeks, up to 5,600 Pennsylvania residents with pre-existing conditions will have an opportunity to purchase full-coverage health insurance at a greatly reduced price. Using $160 million in federal funds from the federal Health Care Reform Act, Pennsylvania will offer insurance covering hospital and physician visits; prescriptions; mental-health services; and diagnostic tests -- for $283.20 a month" (Stouffer, 7/7).

Also, "Colorado will receive $90 million in federal money to subsidize health insurance for up to 4,000 people rejected by private insurers because of pre-existing medical conditions, Gov. Bill Ritter announced Tuesday," The Denver Post reports. "By federal mandate, premiums cannot cost more than what a healthy person of similar age would pay in Colorado. They will range from $115 a month for an 18-year-old nonsmoker in Boulder County to $807 for a 64-year-old smoker in Eagle County. The annual deductible is $2,500, with $30 copays for doctor visits" (Brown, 7/7).

However, the Jacksonville Times-Union reports, "Federal officials concede that the $5 billion set aside for the program probably won't be enough. If 200,000 apply, as is expected, the money will run out in 2013, the Congressional Budget Office estimates. Also, that coverage will be expensive. The rates won't be released until July 15, but the premium for a 50-year-old Floridian is expected to be between $552 and $675 a month. That's a rent check for many folks" (Cox, 7/6).

This is part of Kaiser Health News' Daily Report - a summary of health policy coverage from more than 300 news organizations. The full summary of the day's news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.

This article was printed on Kaiser Health News on July 7th, 2010.

MT: Auditor: Montana Ready for US Health Care Overhaul

Charles Monaco — Tue, 27 Apr 2010 12:15:18 -0400

VT: Senate Wants 3 Plans that Ensure Health Care for All Vermonters, Including Public Option

Julie Bero — Thu, 15 Apr 2010 12:52:27 -0400

WA: Legislators Move to Block Attorney General McKenna Lawsuit Against Federal Health Law‎

Julie Bero — Mon, 29 Mar 2010 14:12:09 -0400

Virginia, 13 Other States Sue Over Health-Care Law

Julie Bero — Thu, 25 Mar 2010 15:54:50 -0400

NJ: State Cuts Workers' Benefits

Julie Bero — Thu, 25 Mar 2010 15:52:12 -0400

ID: Governor Signs Bill to Prevent Insurance Mandate

Julie Bero — Thu, 18 Mar 2010 13:56:42 -0400

US: States Consider Medicaid Cuts as Use Grows

Julie Bero — Mon, 22 Feb 2010 16:30:11 -0500