WASHINGTON, D.C. – Senator John Kerry (D-Mass.) today released the following statement upon President Barack Obama’s signing historic health care reform into law.
“Massachusetts will benefit enormously from this historic new law and the Senate will finish the job this week,” said Sen. Kerry. “No longer will insurance companies be allowed to deny coverage based on pre-existing conditions or drop insurance because someone gets sick. It will strengthen our state’s health insurance reforms, cut costs for families and businesses, bring new federal subsidies into the state and deliver new benefits to families and businesses across Massachusetts.
“Massachusetts has done a tremendous job ensuring that every citizen has coverage and this bill builds on success. The new law will give Massachusetts billions of dollars to provide subsidized coverage and tax relief to small businesses who offer health insurance to their employees.
“We’ve been at this for a really long time. Years from now, after the scare tactics are long forgotten, Americans will ask what the politicians were afraid of, because this is in the overwhelming interests of our families and our businesses. I know Ted Kennedy is smiling today.”
How Massachusetts will Benefit from Federal Health ReformINSURANCE MARKET REFORMS
Preserves the strong consumer protections in Massachusetts. Sen. Kerry worked to ensure the Reconciliation package would allow Massachusetts to retain regulatory oversight of insurance plans sold in the state and to maintain the state’s current rating rules and strong consumer protection provisions.
EXCHANGE & SUBSIDIES
Preserves the ability of the Connector to be the exclusive exchange in the state. Sen. Kerry worked with Leader Reid to include a provision that would allow the Administration to recognize an existing state-based health insurance exchange that meets certain standards as the official exchange post-health reform. This provision would allow the Commonwealth Connector to continue serving enrollees in Massachusetts.
Strengthens Connector’s ability to negotiate with health care plans. Sen. Kerry worked with Sen. Reid to allow exchanges to negotiate with plans for lower bids, encourage plans to form select networks, and exclude plans that do not offer good value and cost-effectiveness. The Commonwealth Connector already negotiates with plans participating in Commonwealth Care and now the Connector can apply this approach more broadly.
Provides billions of dollars to Massachusetts in premium subsides and cost-sharing subsidies. The health reform bill will Reform will provide $4.1 billion in premium tax credits and cost-sharing tax credits for residents in Massachusetts from 2014 to 2019 to purchase private health insurance. The infusion of federal subsidies to 254,000 residents should lessen the amount of subsidies that need to be provided by the state.
Provides more generous eligibility for premium subsidies. The health reform bill provides federal subsidies to individuals and families with incomes up to 400% of poverty ($43,320/individual and $88,200/family of four). Massachusetts only provides subsidies to individuals and families with incomes up to 300% of poverty ($32,490/individual and $66,150/family of four). Increasing subsidies from 300% of poverty to 400% of poverty could cover about 75,000 people in Massachusetts. Most of the individuals between 300-400% of poverty who would benefit from the premium subsidies are older Americans under the age of 65.
Lowers premiums for Massachusetts residents. The policies contained in the Reconciliation package will lower premiums in the nongroup market by 14 to 20% for the same benefits – premium savings of $1,950 to $2,790 for a family in Massachusetts.
Relieves fiscal pressure on Massachusetts by providing subsidies to legal taxpaying residents. Massachusetts covers legal immigrants through a 100% state-funded program (Commonwealth Care Bridge Program) which expires on June 30, 2010. The Reconciliation bill would allow legal immigrants to receive federal subsidies in the exchange.
Provides a small business tax credit. Sen. Kerry worked with Chairman Baucus on small business credit which provides assistance to employers with less than 25 employees. In 2010 through 2013, eligible employers can receive a small business tax credit for up to 35 percent of their contribution toward the employee’s health insurance premium. Non-profits are eligible for the credit. It will help small businesses that are offering health care already.
MEDICAID
Provides Massachusetts with over $2 billion in federal funds for Medicaid over the next 10 years. Sen. Kerry worked closely with the White House and Senate Leadership to provide an equitable way to help states who have already significantly expanded their Medicaid programs using state funds. “Expansion” states like Massachusetts would start to receive additional FMAP assistance in 2014. Instead of our regular 50 percent match rate, the federal government would pick up 75% of Massachusetts’ Medicaid costs for childless adults with incomes up to 133% of poverty. The federal government would pick up an increasing share of Medicaid costs over the next six years. By 2019 Massachusetts will have a 93 percent match rate for childless adults enrolled in Medicaid—the same as every other state in the country. And in 2020 and beyond, Massachusetts will have a 90 percent match rate for childless adults enrolled in Medicaid. In total, Massachusetts would receive over $2 billion dollars in federal funds for Medicaid as a result of the expansion from 2014 to 2019. Massachusetts will gain at least $350 million a year in additional FMAP assistance in 2020 and beyond. This is a permanent benefit that will continue for years to come.
Provides Massachusetts with additional federal funding for preventive services. States that opt to provide Medicaid coverage for all recommended preventive services and immunizations and remove cost-sharing for those services would receive an additional 1% FMAP for such services.
Protects Medicaid DSH Payments to Massachusetts. States receive federal Medicaid payments for disproportionate share hospitals (DSH) that serve low-income individuals and Medicaid enrollees. Massachusetts currently has a Section 1115 waiver that allows the state to use its Medicaid DSH allotment to fund health care coverage. Sen. Kerry worked with Senate Leadership to make sure that states like Massachusetts who have used their Medicaid DSH allotment to expand health care coverage would have some protection from reduction in Medicaid DSH payments. Under the Reconciliation bill, the Secretary must develop a formula for Medicaid DSH reductions and providing smaller reductions to states that have used this funding to expand coverage. This provision could protect up to $205 million a year in Medicaid DSH funding for Massachusetts.
Improves home and community based services in Medicaid. Reform will encourage states to expand their home and community based services through Medicaid by providing enhanced funding, and it will create a program to provide community support services for disabled Medicaid enrollees who would otherwise need to be in a nursing home. These programs could help improve care for many of the 248,000 disabled Medicaid beneficiaries in Massachusetts. The reconciliation bill includes key provisions from Sen. Kerry’s Empowered at Home Act to improve access to home and community-based services under Medicaid, allow states to provide a broader set of services, and to protect against spousal impoverishment.
CHILDREN’S HEALTH INSURANCE PROGRAM (CHIP)
Extends funding of Children’s Health Insurance Program (CHIP) until 2015 and provides a 23 percentage point increase in federal match rates. The Senate bill extends the current reauthorization period of CHIP for two years, through September 30, 2015. States will receive a 23 percentage point increase in their federal match rates beginning fiscal year 2016 through fiscal year 2019. The 23 percentage point increase will provide about an additional$100 million per year to Massachusetts.
MEDICARE
Enhances preventive benefits in Medicare, reduces drug costs for seniors in the Part D doughnut hole, and extends Medicare’s solvency. Under the Senate bill 1 million seniors in Massachusetts would receive an annual wellness visit and free preventive services from Medicare. Sen. Kerry worked with Senate leadership to close the Medicare Part D doughnut hole. Under the bill, beneficiaries will receive a $250 rebate in 2010, 50% discounts on brand name drugs beginning in 2011, and complete closure of the donut hole by 2020. Currently, 180,000 Medicare beneficiaries in MA fall into the doughnut hole. A typical beneficiary who enters the donut hole will see savings of over $700 in 2011 and over $3,000 by 2020. The bill also strengthens the Medicare Trust Fund, extending its solvency by nine years from 2017 to 2026.
Removes discriminatory treatment in Medicare hospital reimbursement in Massachusetts. The Reconciliation package includes an amendment co-sponsored by Kerry that corrects Medicare’s current rural floor budget neutrality regulation. Through regulation, the Center for Medicare and Medicaid Services (CMS) has changed nationwide policy to block normal Medicare area wage index benefits sought by Massachusetts hospitals. These changes have disproportionately affected Massachusetts. The health reform bill reverses recent CMS rules which would otherwise have a significant financial impact on every hospital in Massachusetts. In the first year that Massachusetts hospitals are impacted, the provision will save Massachusetts hospitals at least $300 million.
Improves Medicare Advantage by eliminating overpayments to private insurance plans. Overpayments to insurers threaten Medicare’s future and increase costs for seniors. In 2009, Medicare paid approximately $12 billion more for beneficiaries enrolled in private Medicare Advantage (MA) plans than if they were in traditional Medicare. These overpayments exist because private insurers under Medicare Advantage are overpaid by 14 percent on average. Overpayments to private insurance companies have increased Medicare’s costs, raised Medicare premiums to all beneficiaries, and increased the program’s insolvency. The Reconciliation package will gradually move toward a fair payment system that rewards performance. Because of this bill, Medicare premiums will be reduced by $90 for every couple enrolled in Medicare each year—including the 845,000 seniors in Massachusetts who are enrolled Original Medicare.
OLDER AMERICANS
Supports health coverage for early retirees. An estimated 96,600 people from Massachusetts have early retiree coverage through their former employers, but early retiree coverage has eroded over time. The Reconciliation package includes a reinsurance proposal authored by Sen. Kerry and Sen. Stabenow to would stabilize early retiree coverage and provide premium relief to both early retirees and the workers in the firms that provide their health benefits. This could save families up to $1,200 on premiums.
Supports long-term home and community based services. It is estimated that 65 percent of those who are 65 today will spend some time at home in need of long-term care services, which typically cost almost $18,000 per year. This means that 497,000 older residents of Massachusetts who are aged 55 to 64 today will need home health services after they turn 65– services that are not always covered by Medicare, Medicaid, or private health insurance. Health insurance reform will create a new voluntary long-term care services insurance program, which will provide a cash benefit to help seniors and people with disabilities obtain services and supports that will enable them to remain in their homes and communities.
TRANSFORMING & INVESTING IN HEALTH CARE
Reduces preventable readmissions. The current health care system does not place enough emphasis on improving quality of care. For example, nearly 20 percent of Medicare patients who are discharged from the hospital end up being readmitted within 30 days. For Massachusetts, that’s 59,000 readmissions each year which could potentially be prevented with improved care coordination. Health insurance reform will invest in innovations in primary care and will provide financial incentives to hospitals to better coordinate care at discharge to avoid preventable readmissions.
Lessens Paperwork. Physicians spend on average about 140 hours and $68,000 a year just dealing with health insurance bureaucracy. For the 34,320 physicians in Massachusetts, this adds up to 4.8 million hours and $2.3 billion in costs. By simplifying and standardizing paperwork and computerizing medical records, doctors will be able to focus on caring for their patients instead of dealing with bureaucracy.
Incentivizes primary care. Roughly 11,500 doctors in Massachusetts practice primary care and would qualify for a new 5 to 10 percent payment bonus under health insurance reform.
Invests in the health primary care. Approximately 464,000 people, or 7 percent of Massachusetts’s population, cannot access a primary care provider due to shortages in their communities. Health insurance reform will expand and improve programs to increase the number of health care providers, including doctors, nurses, and dentists, especially in rural and other underserved areas. Through loan repayment programs, scholarships, and changes in reimbursement policy, the legislation encourages health professionals to pursue careers in primary care, which will help alleviate the shortages that Massachusetts has experienced in this critical area.
Dramatically increases funding to community health centers. The Reconciliation package provides $11 billion in federal funding to expand community health centers. This level of funding would double the number of health center sites nationally over the next five years from 7,500 to 15,000 sites. And it would increase the number of patients served from 20 million today to about 39 million by 2015. This funding would help the 52 community health centers in the state that provide high quality health care to those in need regardless of their ability to pay. Community health centers in Massachusetts currently serve more than 760,000 state residents through 285 sites statewide.
Provides a therapeutic discovery project tax credit. The health reform bill creates a two year temporary tax credit subject to an overall cap of $1 billion to encourage investments in new therapies to prevent, diagnose, and treat acute and chronic diseases. The credit would be available for two years. Sen. Kerry worked with Sen. Menendez to include this tax credit to the health reform bill. Massachusetts is a global leader in life sciences and this credit will help small biotech companies in Massachusetts pioneer cures and eradicate diseases.
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
