SAMHSA222s Weekly Financing News Pulse: National Edition
July 29, 2011
7/29/11
1
SAMHSA222s Weekly Financing News Pulse: National Edition National News
Thomas More Center Appeals Health Reform Lawsuit to the Supreme Court; HHS Rejects North Dakota222s
MLR Waiver, Grants Waivers for Iowa and Kentucky
U.S. Army to Hire 130 Substance Abuse Counselors
Seven Top Selling Brand-
Name Drugs to Come 223Off Patent,224 Including Behavioral Health Medication
Sen. Kerry and Rep. Stark Introduce Bills to Raise Medigap MLRs
Studies Released
CMS Office of the Actuary Predicts Rising Health Care Spending Growth Through 2020
Update: CBO Finds Bill to Adjust Income Calculations Under Health Reform would Affect Fewer Than
One Million Americans
JAMA Study Finds Medicare Part D Associated with Reduced Non
-
Drug Spending
Stateline Examines the Obama Administration222s Proposal to 223Blend224 Reimbursement Rates
Moody222s Says State Medicaid Cuts will Affect Hospitals
KFF Examines States222 Progress Towards Health Insurance Exch
anges
KFF Tools Examine Medicare Provisions in Deficit and Debt Reduction Proposals
Around the Hill: Hearings on Health Financing
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AMHS
A222s Financing News Pulse is a news consolidation service, designed to provide readers with streamlined
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While the News Pulse attempts to verify
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SAMHSA222s Weekly Financing News Pulse: National Edition
July 29, 2011
7/29/11
3
Studies Released
CMS Office of the Actuary Predicts Rising Health Care Spending Growth Through 2020:
Published July 28 in Health Affairs
, the
Centers for Medicare & Medicaid Services222 Office of the Actuary
released a report , finding that health care
spending will grow an average of 5.8 percent annually
through 2020.
The report estimates the increasing growth rate will drive the U.S. to spend $4.6 trillion
on health care in 2020, up from $2.6 trillion in 2010 and accounting for nearly 20 percent of the U.S.
economy. The report predicts that the growth
rate
will increase to 8.3 when health reform222s coverage
expansion takes effect in 2014, returning to 6
.2
percent between 2015 and 2020. However, despite the
rising
growth
rate, t
he report predicts the average yearly health care cost growth will increase only .1
percent more than it would without health care reform.
The
authors also estimate
the effects of health
reform on health care payers, noting that federal, state, and local government spending
will increase 4
percent
to account
for 49 percent of all spending in 2020, while employers222 share declines to 18 percent.
The report notes that federal spending will
drive the shift towards public payers, with the federal share
of health care
spending increasing from 27 percent in 2009 to 31 percent in 2020. Finally, the
report
estimates that the number of Americans with employer
-sponsored insurance will reach
1
70 million in
2014 but decline
to 168 million by 2020 ( Kaiser Health News, 7/28 ; The Hill, 7/28 ; AP via Washington Post, 7/28 ; CNN, 7/28 ; Kaiser Health News, 7/28 ).
Update
:
CBO Finds Bill to Adjust Income Calculation
s
Under Health Reform would Affect
Fewer
Than One Million Americans:
On July 22, the Congressional Budget Office (CBO) released an analysis ,
finding that legislation (
S. 1376)
amending
the
income calculations used to determine health
reform
benefit eligibility will prevent
fewer than one million individuals from accessing Medicaid
. Under
current law, health reform does not include Social Security benefits as income when determ
ining
eligibility for Medicaid or subsidized coverage through the law222s health exchanges. The new bills would
count Social Security as income, reducing eligibility
and saving an estimated $13 billion
over 10 years
( The Hill, 7/25 )
.
JAMA Study Finds Medicare Part D Associated with Reduced Non
-
Drug Spending: A study
published in the Journal of the American Medical Association
(JAMA)
found that that the Medicare
Prescription Drug Program (Part D) was associated with a significant decline in non
-drug expenditures
among enrollees with previously inadequate drug coverage. By increasing access to medication and
adherence to drug regimens,
the study found that Part D reduced hospital and
nursing home
s
pending
on acute and post acute care. Among the roughly 10 million beneficiaries with previously inadequate
care, the authors found that spending on non-
drug services declining by $1,200 per
capita
( Bloomberg, 7/26 ; AP via FoxNews, 7/26 ; PBS NewsHour, 7/26 ; Kaise
r Health News, 7/27 ).
Stateline
Examines
the Obama Administration222s
Proposal to 223Blend224 Reimbursement Rates
:
On July 28
,
the
Pew Center on the States
222
non-
partisan non-
profit news service
Stateline
released a primer
on Medicaid financing, exploring the changes offered under the Obama Administration222s
plan
to
223blend224
rates
for Medicaid and the Children222s Health Insurance Program (CHIP). Offered as an
alternative to the GOP budget plan that passed in the
U.S. House
on April 15, rather than convert
Medicaid into a block grant program,
President Obama222s
proposal would blend th
e CHIP rate, the
existing Federal Medical Assistance Percentage (FMAP) for Medicaid, and the
rate set to apply to newly
covered Medicaid enrollees under health reform222s 2014 expansion
. Though the Administra
tion has yet
SAMHSA222s Weekly Financing News Pulse: National Edition
July 29, 2011
7/29/11
5
House Oversight and Government Reform Subcommittee on Government Organization, Efficiency and
Financial Management
:
Improper Medicare Payments
July 28 9:30 a.m.
2247 Rayburn
House Veterans222 Affairs Subcommittee on Health
:
Veterans Health Bills
July 28, 9:30
a.m.
340 Cannon
House Small Business Subcommittee on Healthcare and Technology
:
Health Care Overhaul Law and Small
Business Health Coverage
July 2
8 10:00 a.m.
2360 Rayburn
House Appropriations Committee
:
Fiscal 2012 Appropriations: Labor, HHS, Education
August 2, Time TBA. 2359 Rayburn