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April 10, 2013
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Prepared by Leo Cuello
Health Advocate
March 2013

Leo Cuello, director of health reform at the National Health Law Program (NHeLP) discusses legislative proposals aimed at reducing federal spending for Medicaid and the implications for the Affordable Care Act's (ACA) Medicaid expansion, states, health care providers, and the individuals who rely on this public benefit program. These proposals include converting Medicaid to a block grant or providing a per capita cap. Despite a final rule that guarantees 100% federal funding for newly eligible 19- to 64-year-olds in states that opt to expand Medicaid up to 133% of the federal poverty level (FPL), Cuello is concerned that states will decide not to implement this optional provision of the ACA. In addition, states that are planning to expand Medicaid may reverse their decisions if federal funding is cut. This will result in a coverage gap for adults with income below 100% of the FPL. A block grant provides a fixed amount of federal funding for each state's Medicaid program. Once that amount is exhausted, states must foot the bill for costs over and above the block grant amount. A per capita cap provides states with a fixed dollar amount of federal funding for each Medicaid enrollee. However, if an enrollee's costs exceed the cap, once again, the state must bear the burden of those additional costs. (See a helpful summary of benefits and coverage for traditional Medicaid, versus a block grant or per capita cap.) States might respond to the potential financial burden associated with these changes in traditional Medicaid funding in three ways:
  1. They could eliminate coverage for optional populations such as children with disabilities, children with special needs in foster care and adoption programs, and individuals who need support services to live at home.
  2. States could cut optional services, such as the home- and community-based waiver services that allow individuals with disabilities to live in their homes rather than in institutional settings, which ultimately is a more expensive way to provide care.
  3. They could also reduce provider reimbursement, causing difficulties for both providers and enrollees. Providers will receive less compensation for the health services they provide, making them less likely to accept new Medicaid patients. Patients may be unable to receive needed care due to a shrinking network of providers.
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News Items

By Sam Baker
Healthwatch, THE HILL'S Healthcare Blog
April 3, 2013
For individuals and families who are currently uninsured and/or who may need assistance learning about and understanding the new health insurance options through the health Exchanges, created as part of the Affordable Care Act (ACA) - help is on the way. The ACA has a provision for Navigators. On April 3, the U.S. Department of Health and Human Services (HHS) released the proposed Standards for Navigators and Non-Navigator Assistance Personnel. This proposed rule states the function, role, and responsibilities for Navigators, the assistors for the federally facilitated and state-partnership Exchanges. Non-Navigators are the assistors in state-based Exchanges. It clarifies conflicts of interest, training and certification, and specifies that states must have at least two types of Navigator entities, and one must be a community- and consumer-focused nonprofit organization. In addition, all Navigators must be able to provide information in plain language that is culturally and linguistically appropriate and accessible to individuals with disabilities and individuals with limited English proficiency. Submit comments about the rule at regulations.gov by 5 pm on May 6, 2013.

CMS Media Relations
April 9, 2013

Marilyn Tavenner, the Acting Administrator for the Centers for Medicare and Medicaid Services (CMS) is quoted as saying, "Navigators will be an important resource for the millions of Americans who are eligible to enroll in new coverage opportunities through the Marketplace starting in October of 2013." Now that the proposed rule for Navigator and Non-Navigator Personnel has been published, CMS is accepting grant applications from "self-employed individuals and private and public entities" to act as Navigators for federally facilitated and state-partnership Exchanges. (See each state's decision for creating its health insurance Exchange, as of April 1, 2013.) Search for CFDA # 93.750 at Grants.gov to read the funding opportunity announcement. Applications are due on June 7, 2013.

By Wells Wilkinson
Health Policy Hub
March 25, 2013

"Pay for delay" is a term that describes a practice where brand name drug company producers use a portion of their profits from the sale of brand name drugs to incentivize generic drug manufacturers to not manufacture low-cost forms of high-cost medications. This blog, by Wells Wilkinson, the director of the Prescription Access Litigation project at Community Catalyst, discusses the lawsuit being deliberated by the U.S. Supreme Court and the consequences of this tactic that is win-win for both brand name and generic drug manufacturers and lose-lose for consumers and health insurers. Generic manufacturers and brand name pharmaceutical companies both profit from the sale of brand name drugs. Consumers and their health plans pay higher costs. Wilkinson cites a Federal Trade Commission report from 2010 that estimates pay for delay for just one drug "can cost each consumer, and his or her health insurer, an extra $4,500 over a year and a half."  In a follow-up blog Paying for Delay - Putting Consumers in the Crosshairs on April 2, 2013, Khadijah Britton, a Program and Policy Associate, illustrates the financial impact of pay for delay with two patients' stories.

By Jeffrey Cohen
Shots: Health News from NPR
April 2, 2013

While the Affordable Care Act (ACA) works toward one of its goals - to reduce the number of people without health insurance - medical schools are working toward a goal of their own. They are striving to ensure there are enough primary care physicians to meet the health care needs of the additional 30 to 33 million individuals who will have insurance by 2016. Since the 1970s, the Southern Illinois University School of Medicine has let potential candidates know they are expected to practice in underserved areas of the state after they graduate. When applicants are interviewed at the new Frank H. Netter School of Medicine at Quinnipiac University in Connecticut, Michael Ellison, the associate dean of admissions, and Bruce Koeppen, the dean, are clear about their goal. They expect at least fifty percent of graduates to become primary care doctors. (Nationally, about thirty percent of medical school graduates choose primary care.) Koeppen notes that women, individuals looking for a second career, those who are the first in their family to attend college, and students from medically underserved areas are more likely to choose primary care. In order to provide hands-on experience, the Quinnipiac curriculum includes days where students will spend time with primary care physicians.
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Resources

By Randall O'Donnell
Pediatrics
April 1, 2013

In anticipation of proposals to reform or cut Medicaid funding, this article, by Randall O'Donnell of Children's Mercy Hospital and Clinics, discusses ideas put forth by representatives from children's hospitals to improve care and reduce Medicaid costs for children with complex health conditions. They know that children with complex health needs do not receive coordinated care, even though care coordination leads to better health outcomes and reduced costs. The group attributes fragmented care to the differences in each state's Medicaid program, difficulties in communication between multiple providers, reimbursement systems that do not support integration of care, and many states' failures to authorize or pay for specialty care at hospitals across state lines. To coordinate care and reduce costs for children with complex needs, they propose the creation of Nationally Designated Children's Hospital Networks in Medicaid and the Children's Health Insurance Program (CHIP). These "Centers of Excellence" would establish regional networks to provide medical homes for children with chronic and complex health needs enrolled in Medicaid and CHIP. Within Medicaid and CHIP, these Centers will 1) create a coordinated system of care; 2) improve the delivery of pediatric care by developing guidelines for care coordination, quality metrics and standards for provider networks; and 3) create a bundled payment or shared savings reimbursement system that supports care coordination and reduces costs. The networks would work with the health providers from whom the children currently receive care to enhance their care. States that choose to participate in the Centers of Excellence and regional network model will pay for services for children with complex health needs, regardless of the state in which the care is provided.

A publication of the Asian & Pacific Islander American Health Forum
March 2013

The Asian & Pacific Islander American Health Forum (APIAHF) estimates that 1 in 10 Asian Americans and 1 in 8 Native Hawaiians and Pacific Islanders will be eligible for health insurance through the Exchanges, the online marketplaces where eligible individuals and families will be able to compare and shop for health insurance. As part of its celebration of the third anniversary of the Affordable Care Act (ACA), APIAHF created The Affordable Care Act Turns 3: A Planning and Educational Toolkit for Asian American, Native Hawaiian, and Pacific Islander Communities. They are encouraging community groups to use the toolkit to help Asian American, Native Hawaiian, and Pacific Islander communities learn about and understand the new options for obtaining health insurance when the Exchanges open in October of this year. The toolkit, which has ideas that are helpful for anyone who is trying to reach individuals with limited English proficiency, includes worksheets for planning community events, campaigns to ensure Exchange materials are easy to understand and available in multiple languages, checklists to help families learn about insurance options, and examples of ways to use social media to educate communities about the ACA.
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News You Can Use from Our Partners

News1The Data Resource Center for Child and Adolescent Health has added new data from 2011/12 National Survey of Children's Health to its website. Indicators include health status, health care, school and activities, and data about a child's family and neighborhood.

News2Medical Homes @ Work is the monthly e-newsletter from the National Center for Medical Home Implementation. The March 2013 issue Spotlight on Child Health Issues: Cultural Effectiveness and the Medical Home focuses on the medical and oral health disparities that exist for children of diverse races and ethnicities. The issue includes promising practices as well as resources for providers, children, youth and families.
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Events & Announcements


E2Health Resources and Services Administration's Maternal and Child Health Bureau (MCHB) webinar: Findings from the 2011-2012 National Survey of Children's Health 
Date: April 16, 2013
Time: 3 - 4 pm EDT
Learn about the key findings from the latest National Survey of Children's Health (NSCH), uses for the data, and other resources on the Data Resource Center for Child and Adolescent Health website. Register for this event.

E3National Institute for Health Care Management (NIHCM) and American Bar Association (ABA) Center on Children and the Law webinar: The Health of Children in Foster Care: Making Improvements Through Medicaid and the Law 
Date: April 16, 2013
Time: 1 pm EDT
About 25% of children in foster care have unmet health needs, even though almost 60% have chronic health issues and nearly 70% have mental health needs. This webinar will focus on public and private sector initiatives to improve the health of both children in foster care and youth who are aging out of this child welfare system. Learn more about this event hosted by NIHCM and the ABA Center on Children and the Law and register for this event.

E4National Center for Medical Home Implementation Medical Home webinar: How to Use Data to Improve Care Delivery
Date: April 25, 2013
Time: 12 noon - 1 pm CDT
Join the National Center for Medical Home Implementation (NCMHI) and the Child and Adolescent Health Measurement Initiative (CAHMI) to learn how to use data to educate stakeholders, inform decision makers, and track improvements in children's health care. This is the third in a free, four-part Medical Home in Pediatrics How To webinar series hosted by the American Academy of Pediatrics (AAP) and NCMHI. These learning sessions are for pediatric providers, patient and family advocates, health policy administrators, and others interested in advancing the medical home model for children. Register for this webinar. Review the 2013 webinar series schedule and the materials from the two previous webinars.
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If you have suggestions for news items related to coverage and financing of care for CYSHCN please email Beth Dworetzky Catalyst Center Coverage editor and Catalyst Center Assistant Director by 12 noon on Friday.
The Catalyst Center is a national center dedicated to working with states and stakeholder groups on improving health care insurance and financing for Children and Youth with Special Health Care Needs (CYSHCN). For more information, please visit us at www.catalystctr.org or contact Meg Comeau, Program Director, at mcomeau@bu.edu.

The Catalyst Center is funded under cooperative agreement #U41MC13618 from the Division of Services for Children with Special Health Needs, Maternal and Child Health Bureau, Health Resources and Services Administration, U.S. Department of Health and Human Services. Marie Mann, MD, MPH, FAAP, MCHB/HRSA Project Officer. The contents of Catalyst Center Coverage are solely the responsibility of the authors and do not necessarily represent the views of the funding agencies or the U.S. government.