|By PR Newswire||
|February 12, 2014 05:03 PM EST||
WASHINGTON, Feb. 12, 2014 /PRNewswire-USNewswire/ -- A report from actuarial firm Milliman, Inc. and commissioned by Medicaid Health Plans of America (MHPA) shows a provision of the Affordable Care Act (ACA) intended to tax health insurance companies to help fund health reform, will drain $13.6 billion from those states that use integrated risk-based models to care for their neediest residents.
The report, "ACA Health Insurer Fee: Estimated Impact on State Medicaid Programs and Medicaid Health Plans," an update of Milliman's 2012 study that takes into account new state Medicaid expansion decisions, shows that the health insurer fee (a.k.a. the health insurance tax), along with additional taxes paid due to the non-deductibility of the fee, will cost the Medicaid program $37.7 billion over the ten year period 2014-2023 according to a moderate growth scenario. This will cost the states about $13.6 billion and the federal Medicaid program about $24.1 billion due to the state-federal Medicaid matching formula.
States and the federal government end up paying for the tax due to actuarial soundness requirements. As an important consumer protection, the Balanced Budget Act of 1997 and implementing regulations require Medicaid managed care payment rates to be actuarially sound, inclusive of medical costs, administrative costs, taxes and fees. So according to federal law, the insurance tax must be paid by the state and federal governments through higher payments provided to plans, and results in the federal government taxing states and itself.
It is important to note that the ACA includes a provision that specifically exempts Medicaid managed care plans from paying the insurance tax. Unfortunately, Congress limited the exemption to those entities with a tax status of "non-profit." Even though both non-profit and for-profit plans offer exceptional services to the poorest patients in a state, only the non-profit plans are exempt. This results in the tax not being uniformly applied, affecting Medicaid beneficiaries and the states in an uneven fashion.
"It is apparent now more than ever: the health insurance tax is an ill-conceived method to finance the ACA and it will be on the shoulders of our country's sickest and poorest," noted Jeff Myers, MHPA's president and CEO. "It drives up costs for commercial consumers, it burdens states that already have exploding Medicaid budgets, it further exacerbates the cost curve for the federal share of Medicaid by $24.1 billion, and it creates a dynamic that limits options for Medicaid beneficiaries via reduced access to services and benefits. Myers added, "Currently, 37 Medicaid programs and the District of Columbia use health plans to provide capitated risk-based health coverage for poor children, pregnant women, the elderly, and the disabled, so the harmful upshot of this tax will be felt far and wide."
Medicaid Health Plans of America (MHPA) is the leading national trade association solely focused on representing the universe of Medicaid health plans. Working on the behalf of over 135 for-profit and non-profit member health plans that serve over 15 million lives, MHPA provides advocacy, research, and organized forums to support policies that enhance the delivery of quality health care to Americans in need. For more information, visit http://www.mhpa.org.
Contact: Joe Reblando
Multimedia Assets associated with this release:
SOURCE Medicaid Health Plans of America
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Jul. 1, 2015 03:00 PM EDT Reads: 1,878
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Jul. 1, 2015 02:45 PM EDT Reads: 961
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Jul. 1, 2015 02:30 PM EDT Reads: 1,142
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 1, 2015 02:21 PM EDT Reads: 301
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
Jul. 1, 2015 01:15 PM EDT Reads: 2,133
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 1, 2015 12:54 PM EDT Reads: 432
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Jul. 1, 2015 12:15 PM EDT Reads: 2,030
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Jul. 1, 2015 12:00 PM EDT Reads: 1,975
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 1, 2015 11:45 AM EDT Reads: 990
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
Jul. 1, 2015 11:30 AM EDT Reads: 943
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Jul. 1, 2015 11:30 AM EDT Reads: 2,223
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
Jul. 1, 2015 11:30 AM EDT Reads: 735
In his session at 16th Cloud Expo, Simone Brunozzi, VP and Chief Technologist of Cloud Services at VMware, reviewed the changes that the cloud computing industry has gone through over the last five years and shared insights into what the next five will bring. He also chronicled the challenges enterprise companies are facing as they move to the public cloud. He delved into the "Hybrid Cloud" space and explained why every CIO should consider ‘hybrid cloud' as part of their future strategy to achi...
Jul. 1, 2015 11:10 AM EDT Reads: 519
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 1, 2015 11:00 AM EDT Reads: 930
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 1, 2015 11:00 AM EDT Reads: 538