No deal was reached to avert the sequester, federal agencies issued more than 700 pages of health care guidance, and New Jersey announced it would expand its Medicaid program.
AT THE AGENCIES
On Friday (3/1), the Department of Health and Human Services (HHS) issued final regulations providing detail and parameters related to the risk adjustment, reinsurance and risk corridors programs; cost-sharing reductions; user fees for Federally-facilitated Exchanges; advance payments of the premium tax credit; the Federally-facilitated Small Business Health Option Program; and the medical loss ratio program.
The Occupational Health and Safety Administration (OSHA) issued an interim rule on Wednesday (2/27) that would shield whistleblowers who report employers who block access to health care tax credits or deny coverage to individuals with pre-existing conditions.
IN THE STATES
On Tuesday (2/26), New Jersey Gov. Chris Christie announced his state will expand Medicaid pursuant to the ACA. The expansion will cover about 100,000 individuals in New Jersey. Christie explained to the state legislature that if New Jersey does not take the federal dollars for Medicaid, the dollars will still be spent – but on other states – and that New Jersey would still have to pay the taxes to cover the cost.
The office of Arkansas Gov. Mike Beebe said the state has received HHS approval to use federal Medicaid expansion money to buy private coverage for low-income residents through the state's insurance exchange. The Medicaid plan is different from “partial expansion,” which HHS had previously told states was not an option if they wanted federal financial assistance for newly eligible individuals.
Iowa Gov. Terry Branstad prefers a Medicaid plan for his state that expands the Iowa Care program and does not rely on the federal government. Branstad announced Saturday (2/23) that Iowa would not expand its Medicaid program. Then, on Wednesday (2/27), the Iowa Senate Democrats pushed a Medicaid expansion bill out of committee, the same day the Iowa Hospital Association released a poll showing a majority of Iowans favor expansion of Medicaid.
The Oklahoma House Committee on States’ Rights had a hearing on House Bill 2073, which would declare the Affordable Care Act (ACA) unconstitutional and require the state legislature to ‘adopt and enact any and all measures as may be necessary to prevent’ its enforcement in the state, and passed the bill by a vote of 8-5. HB2073 is now being sent to the Calendar Committee for approval before it can be sent to the full Oklahoma State House for a vote.
The Michigan House Appropriations Committee voted to spend $31 million to help build a health insurance marketplace. The vote comes after Michigan was awarded a $31 million federal grant for the exchange.
On Wednesday (2/27), the California Senate Health Committee considered SBX1 1, legislation that would dramatically expand Medi-Cal coverage to individuals earning up to 138 percent of the federal poverty level and streamline the enrollment process to help sign up Californians who are already eligible but not enrolled.
On Sunday (2/24), Louisiana Gov. Bobby Jindal suggested that delaying parts of the ACA – such as Medicaid expansion or the exchanges – would help avert the sequester.
ON THE HILL
As expected, Congress failed to reach a deal to avert the sequester. Under sequester rules, reductions to Medicare providers will take effect one month after the date of the sequestration order, which would be April 1, 2013. President Obama signed an order authorizing the government to begin cutting $85 billion in accordance with the sequester.
Sen. Jeff Sessions (R-Ala.), Ranking Member of the Senate Budget Committee, said a new report from the Government Accountability Office (GAO) shows that the ACA will not reduce the deficit and will actually add $6.2 trillion to the deficit over the next 75 years. Sen. Sessions requested the study from the GAO.
On Thursday (2/28), Senate Finance Committee Ranking Member Orrin Hatch (R-Utah), Ways & Means Chair Dave Camp (R-Mich.), and Energy & Commerce Chair Fred Upton (R-Mich.) sent a letter to the Center for Medicare & Medicaid Services (CMS) in which they voice their concern over the fact that the agency develops Medicare Advantage rates based on the faulty assumption that the Sustainable Growth Rate formula will go into effect, instead of taking into account yearly “doc fixes.” The letter requests a response from CMS by March 15.
On Wednesday (2/27), the House GOP Doctors Caucus released a "health care state of the union" video criticizing the ACA. The video shows floor speeches from Reps. Phil Roe (R-Tenn.), Phil Gingrey (R-Ga.), and Andy Harris (R-Md.), arguing that the ACA raises costs, discourages innovation and fails to address the most pressing health care problems.
To view our compilation of recent health care reform implementation news, click here.