Health Care Costs and the Long-Term Fiscal Imbalance Colorado Human Services Directors Association June 6, 2012
Overview The Federal Budget and Healthcare Costs The Affordable Care Act Reform Proposals What’s Coming Up 2
Growth of Government
Federal Spending & the Political Party in Power
Composition of Federal Spending (% of Total Outlays) 1970
Our Fiscal Future
Source: The Dartmouth Atlas of Health Care. (2009). The Policy Implications of Variations in Medicare Spending Growth. Link: Note: Data adjusted for age, race, and sex but not price. Category definitions as in source document. Chart 1: Medicare Spending per Beneficiary, by Hospital Referral Region, 2006 National Average = $8,304 $7,500 – $8,000 $8,000 – $9,000 > $9,000 $7,000 – $7,500 < $7,000 Not populated Variations in Healthcare Spending
The ACA Dominos … GI and Community Rating Mandates SubsidiesExchanges Cost cuts, Prevention, Workforce, etc. 8
Impact of ACA on Insurance Coverage Pre-ACA Pre-ACAMedicaid/CHIP3432 Employer Non-group Uninsured Total Post-ACA (+/-)Medicaid/CHIP17 Employer-4-3 Non-group-2-3 Exchanges2022 Uninsured # of Uninsured55m26m27m % of Eligible81%93%
Comparison of Pre and Post ACA Premium Contributions* 10 *As % of Income for Single Adult
Status of ACA Implementation Immediate Benefits 2010 Delivery Reforms Coverage Expansions
Simpson-Bowles Plan Discretionary Spending Caps Tax Reform to Reduce Rates & Raise Revenue Long-term Medicare “Doc Fix” & IPAB Additional Mandatory Savings Social Security Solvency 12
The Ryan Budget Medicare Premium Support Medicaid Block Grants Individual Tax Credits Healthcare Eliminate Corporate Tax Eliminate Deductions Lower Rates Taxes Social Security Reforms Discretionary Spending Caps Other 13
Key Medicaid Reform Proposals Proposal Simpson- Bowles White House Rep. Ryan CBO Options Global cap on Medicaid spending growth/Block Grants √√ Reform/reduce FMAP formula√√ Reduce cap on State Medicaid provider fees √√ Increase reliance on managed care in Medicaid √√ Permit reductions in Medicaid eligibility thresholds √ Expedite Medicaid waiver process√
The “Fiscal Cliff” 15
The Next Six Months 25 Day Lame Duck Session Debt Limit Vote Expiring Tax Cuts, etc. Sequester 16
THANK YOU Billy Wynne Senior Vice President & Principal Health Policy Source, Inc.