Policy Issues Outline

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Policy Issues Outline

HCS/455 – Health Care Policy: The Past and the Future
August 22, 2011

Laura Connolly

Policy Issues Outline

I. Medicaid was first created and developed to provide health care services for individuals with low income and limited resources. The government developed funds that would match State funds with Federal funds in order to serve the ill, the elderly and children. Team "B" will construct an outline of Medicaid and its development during the stages of policy making and what it takes to produce such a policy. Every American citizen will be affected by both the past and future policies implemented in the attempts to save Medicaid. (www.kff.org/medicaid) II. Medicaid Overview

A. Medicaid history
1. Birth of Medicaid in 1965
2. Medicaid purpose
III. Medicaid Budget
A. The federal and state governments jointly fund Medicaid. B. Medicaid is a state operated program that depends on matching funds from the federal government. C. The federal matching formula, Federal Medical Assistance Percentages (FMAP), generates compensation rates, which vary from state to state. D. “Medicaid has become a major expenditure item for state governments, with Medicaid spending of more than $315 billion in 2005, accounting for more than 21 percent of total state government spending in the nation as a whole” (Marton & Wildasin, 2007, p. 279). E. State Medicaid programs depend upon the federal match. F. According to the National Association of State Budget Officers, at least 33 states are predicting budget shortfalls in fiscal year 2012, which for most states began July 1, 2011 (Cassidy, 2011, p. 3). IV. Medicaid Administration and Policy Decisions

A.States make major changes to Medicaid health care with three main programs between 2001 and 2006. Thirty-five states made changes to health care coverage using Medicaid waivers or other provisions. B.Comprehensive Section Waivers encourage by President Bush (Coughlin & Zuckerman, 2008). State government makes changes to Medicaid finance and benefits. For instance, promise to cover specific benefits and putting a limit on Medicaid spending. C.Health Insurance Flexibility and Accountability (HIFA) policy an early President Bush program (Coughlin & Zuckerman, 2008). HIFA gave state government the control and flexibility over their own Medicaid programs through waivers and alternate eligibility rules. D.President George W. Bush signed the Deficit Reduction Act (DRA) in February 2006 (Coughlin & Zuckerman, 2008). Extending Medicaid waivers with additional changes for example, certain beneficiaries will pay premiums for medical services. E.Extension of DRA offers Blue Cross/Blue Shield health care plans to Medicaid beneficiaries (Coughlin & Zuckerman, 2008). This package carries the same benefits that federal employees have. F.Health Opportunity Accounts (HOAs) that allows state government to open accounts for beneficiaries to cover medical expenses (Coughlin & Zuckerman). Once funds drop to zero amount, cost sharing could become part of the beneficiary Medicaid health plan. V. Costs Associated with implementing a replacement or revised policy A. New revisions under Patient Protection and Affordable Care Act estimates from 2010-2019 Medicaid and Medicare savings to be approximately $418 billion. 1. The CBO estimated the legislation would reduce the deficit by $143 billion over the first decade. 2. Reduce deficit by $1.2 trillion in the second decade B. The Affordable Care Act establishes the Center for Medicare and Medicaid Innovation. 1. The new law invests $10 billion in this Center over the next 10...
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