Tagged: medicaid

Over 10 years, Michigan could save a billion dollars and get more than 600,000 previously uninsured people health coverage.

That's the upside of expanding Medicaid in Michigan, according to a new study from the Center for Healthcare Research and Transformation (CHRT) in Ann Arbor. 

The federal government can't force states to expand their programs, but they are offering big incentives: for 10 years, the feds will pick up 100% of the costs of covering newly-eligible Medicaid patients, as part of the Affordable Care Act. 

Secretary of State being sued over citizenship question

"A coalition of unions, voters, county clerks and civil rights groups is suing Secretary of State Ruth Johnson in federal court. The lawsuit challenges Johnson’s instruction that voters who show up on Election Day should be asked whether they are US citizens. But no one can legally be denied a ballot for refusing to check the box. The lawsuit was filed yesterday in US District Court in Detroit. Johnson’s office would not comment specifically on the lawsuit. But she has said the question is simply meant to remind people that only U-S citizens can vote in elections," Rick Pluta reports.

Medicaid tax falls $130-million short of projections

"The state could lose up to $260-million in federal funding for Medicaid this year. That's because of lower-than-expected revenues from Michigan's new one-percent tax on health insurance claims, which started in January. The tax will bring in $130-million less than originally projected for the current fiscal year. That means Michigan will have less money to qualify for federal matching dollars," Jake Neher reports.

CAW extends contracts with GM and Chrysler

The AP reports the Canadian Auto workers union says it has agreed to extend its current contracts with General Motors and Chrysler. Negotiations on new deals continue,

The union had set a midnight strike deadline. But President Ken Lewenza said talks would go past the deadline if there was progress. Earlier Monday the C-A-W reached a 4 -year deal with Ford that freezes pay and cuts wages for new hires. The union wants the deal to be the template for contracts with G-M and Chrysler. A CAW spokeswoman wouldn't say how long the contracts will be extended.

A new state tax to help pay for Medicaid is coming up $130 million short of projections.

The one-percent tax on health insurance claims was supposed to bring in $300 million this fiscal year. Now, budget officials say it’ll only generate about half that. Budget department spokesman Kurt Weiss said the state should be able to scrape together enough money to make up for the missing tax revenue. It is federal matching funds he is worried about.

“If you look at the way the match works, there’s the potential of losing up to $260 million in matching federal funds with this if we’re $130 million short. So, certainly that is part of the concern,” Weiss said.

Weiss said bad projections could be to blame for the gap, or health care providers simply might not be paying their share. He said his department is working with other state agencies to pin down the problem.

“It is a new tax, and it is something new to those that are paying it. So we’re really trying to reach out, do that education, and trying to make sure we’re getting the money from everybody we should be getting the money from,” he said.

Weiss said officials are looking for ways to try and make up the state’s shortfall. If shortfalls continue, he says lawmakers may have to make changes to the tax.

Michigan has to decide whether to expand its Medicaid rolls by up to a half-million people starting in 2014.  The U.S. Supreme Court's landmark decision on the Affordable Care Act struck down a portion of the law that would have required states to expand the program or risk losing all federal aid.

Michigan hospitals support Medicaid expansion.  They spend billions of dollars each year providing charity care for adults without health insurance.

Under a new law in Michigan, everyone who files a claim for a treatment or a checkup will pay a one percent tax to help fund Medicaid. The tax does not apply to co-pays or deductibles.

The new law got rid of a 6 percent use tax on Medicaid managed care organizations.

Governor Rick Snyder pushed for the one percent tax on health insurance claims to maintain medical coverage for low-income patients.

The tax was unpopular with fellow Republicans, but as the Michigan Public Radio Network Rick Pluta reported, Snyder said "he was committed to not rolling back health coverage for the poor during tough economic times."

He signed the tax into law last September.

Now the law is being challenged in court. From the Associated Press:

The Self-Insurance Institute of America Inc. filed a suit challenging the law Thursday in federal court. The suit says the Michigan assessment is pre-empted by federal law.

The suit seeks to block the assessment related to self-insured group health plans.

The Michigan assessment is scheduled to begin Jan. 1 to help fund Medicaid programs. It would be paid to the state by insurers or HMOs.

It's expected to raise about $400 million a year, helping the state draw roughly $800 million in federal funds for Medicaid.

The AP left a message seeking comment from Governor Snyder's office.

Governor Snyder has approved a one percent tax on health insurance claims to ensure that medical coverage for low-income families is not slashed by almost a billion dollars.

Everyone who files a claim for a treatment or a checkup will now pay the one percent tax. It will not apply to co-pays or deductibles.

It replaces a six percent tax on Medicaid HMOs. Michigan’s system for financing the Medicaid program for covering low-income families was on the cusp of being thrown out by federal authorities because it did not spread the burden wide enough.

Governor Snyder had a difficult time winning the votes for the health claims tax in the Republican-led Legislature. But he said he was committed to not rolling back health coverage for the poor during tough economic times. The Snyder administration has come under fire by human services advocates for rollbacks in other types of aid for low-income people, including new limits on cash assistance and food stamps.