Nebraska Medicaid Losses Top $400 Million

March 6, 2015 Leave a comment


Since Jan 1, 2014, Nebraska has been forfeiting $930,096 per day in federal funds that could provide health insurance for over 54,000 low-income, working Nebraska families and individuals. OnMarch 6th, the amount of forfeited federal funds will top $400 million.
“It is fiscally and morally bankrupt to continue to allow so many working families to struggle to find ways to afford the health care coverage they need,” said John Crabtree of the Center for Rural Affairs. “With the Unicameral’s Health and Human Services Committee prepared for their final consideration of LB 472, the Medicaid Redesign Act, it is worthy of note that Nebraska has already forfeited $400 million in federal Medicaid funds – tax dollars, paid in part by Nebraskans, that could have been used to provide affordable health care options for 54,000 working Nebraska families, but were turned away.”
This loss has been a real economic blow to Nebraska’s economy, Crabtree continued. But the most dire consequences of our state’s inaction are felt by low-income, working families across Nebraska, and in rural and small town Nebraska in particular. Impacting those who can least afford to have their economic and health care needs ignored.
“Every man, woman, and child in a small town loses when the hospital shuts down. Every Nebraska taxpayer loses when our state turns away $400 million that could be used to care for people, and build up our healthcare system. It’s time to act for Nebraska’s future by passing LB 472.”
John Crabtree, Center for Rural Affairs
National Rural Health Association research indicates that about 300 rural hospitals across the US are on the verge of closing due to financial issues, with a lack of access to the new Medicaid program as one major cause. In addition to compromising the health of rural people, a hospital closure causes job losses, lost economic activity, and lost community vibrancy in rural communities. A small town hospital closure costs about $1,000 in per capita income.
Moreover, hospitals and other providers are left with significant uncompensated care for the uninsured. The University of Nebraska Medical Center estimates through 2019 Nebraska will have more than $1 billion in uncompensated care without Medicaid redesign. And increased premiums for those with insurance are sure to follow that level of uncompensated care, Crabtree explained.
“Nebraska cannot afford to let over 50,000 of our friends, family members and neighbors fall into this health care coverage gap,” added Crabtree. “A gap where they make too little – yes, too little – to participate in the new healthcare marketplace and receive tax credits to make premiums affordable, but where they make too much to qualify for traditional Medicaid coverage.”
Crabtree urged Nebraskans to monitor http://www.cfra.org/news/150305/nebraska-medicaid-losses-top-400-million to keep an eye on how much Nebraska is losing every day, and how some other non-expansion states compare.

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Protecting Nebraska Policyholders

March 4, 2015 Leave a comment


Governor Pete Ricketts

Governor Pete Ricketts

Thousands of Nebraskans are being encouraged to quickly change their health care coverage due to the collapse of CoOportunity Health (CoOportunity).

 

The Affordable Care Act, also known as Obamacare, created CoOportunity as a consumer operated and oriented plan, or co-op. Co-ops are non-profit health insurers intended to create competition in the health insurance marketplace. CoOportunity, based in Iowa, was approved as a co-op to sell health insurance in Iowa and Nebraska.

 

High enrollment numbers exceeded expectations in both states. This led to more claims, and, in a matter of months, the company had outgrown its resources. On December 16, 2014, President Obama’s administration refused CoOportunity’s request for additional loans, and a week later, an Iowa court determined that CoOportunity was in financially hazardous condition. On February 28, 2015, the company was liquidated.

 

This Obamacare failure has left many insured Nebraskans wondering what to do next. My administration is working with the Nebraska Department of Insurance (NDOI) to help CoOportunity policyholders decide what is best for their families and businesses. NDOI encourages those still covered by CoOportunity to obtain coverage with a new carrier during a Special Enrollment Period, which runs from March 1st through April 29th. Enrolling during this time is essential because CoOportunity policies will be cancelled before the next open enrollment period begins. NDOI reports that individual policies will be canceled 180 days after liquidation, and group policies canceled within 30-45 days after liquidation.

 

During the Special Enrollment Period, individuals insured by CoOportunity and any of their enrolled dependents may choose a different health plan offered by a different company. Doing so now may give those individuals more options for individual plans, since an insurer is not required to sell individual policies outside of a special enrollment period.

 

CoOportunity policyholders can follow the company’s regular process for claims while it is in liquidation. To avoid a gap in coverage, keep paying CoOportunity premiums until you have purchased a policy to replace CoOportunity.

 

Policyholders still covered by CoOportunity will no longer receive Advanced Premium Tax Credits (APTC) or Cost Sharing Reductions (CSR) because these plans lose Qualified Health Plan status upon liquidation. That means that those who stay on this plan may be forced to pay hundreds of more dollars per month in policy fees and co-pays.

 

Today, I am joining the NDOI to encourage those affected by CoOportunity’s collapse to find new health insurance coverage. This is yet another unintended and unfortunate result of the Affordable Care Act, and my administration is committed to helping Nebraskans who have been negatively impacted by this issue.

 

Policyholders with individual plans who are in the Special Enrollment Period (beginning March 1st) should call 1-800-318-2596.

 

For policyholders with a small business plan through the SHOP exchange, call 1-800-706-7893.

 

Insurance agents and brokers can assist employers who are moving to a new plan.

 

Hearing from you is an important part of helping my administration assess your needs.  I look forward to input from people all across our state.  As always, you are welcome to contact my office at (402) 471-2244, or by email, at pete.ricketts@nebraska.gov.

 

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Redesigning Medicaid in Nebraska

February 2, 2015 Leave a comment


By John Crabtree, johnc@cfra.org, Center for Rural Affairs 

Nebraska’s failure to participate in the new Medicaid program under the Affordable Care Act has, for two years, allowed low-income, working Nebraskans to fall into a health care coverage gap that has left them economically and medically vulnerable. At least 54,000 of our friends, family members and neighbors do not qualify for Medicaid, cannot afford private insurance, and have incomes too low to qualify for tax credits in the new health insurance marketplace. Yes, you read that right… with incomes too low to qualify for coverage in the healthcare exchange.

 

The Medicaid Redesign Act, LB 472, would help redesign Nebraska’s Medicaid program, creating a Nebraska-specific plan for better, more cost-effective health coverage while also closing the coverage gap and providing coverage to working Nebraskans with low incomes who cannot afford insurance under the current system.

 

LB 472 sets out a framework to redesign Medicaid and close the coverage gap, providing the Governor and Department of Health and Human Services broad latitude to design and implement a plan for Nebraska.

 

Moreover, through 2016, 100% of the cost will be covered by the federal government. The federal share will then gradually settle to 90% in 2020 where it will then remain. And most enrollees would be required to contribute up to two percent of their income to the cost of their coverage.

 

The Medicaid Redesign Act – LB 472 – is a responsible, commonsense Nebraska solution to closing the health care coverage gap. Let’s get this done.

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