Updated February 19
Despite strong
evidence of cost control and improving quality in the Medicaid program,
today the
Governor has proposed significant cuts to both eligibility and provider
payment rates. The Governor has proposed cutting 34,000 low income parents off
the HUSKY program. Parents in families of three with annual incomes as low as $28,000
will now have to buy insurance on the exchange. For comparison, a 28
year old Hartford parent of two children with an income of $32,000 choosing a
Silver plan on the exchange (the most common plan) would pay between $1,460 per
year for the parent’s coverage, 4.56% of their family income. Employer-sponsored
coverage in CT has eroded significantly in the last decade, limiting that
option for parents. The Governor has also proposed deep cuts in provider
payment rates which will jeopardize broad engagement efforts that have
increased the number of participating providers by 32%.
This is particularly disappointing because of the
significant progress in Medicaid both improving quality and controlling costs. Per
person costs have been stable over the last two years, saving the state
$420 million compared to most health coverage increases, more than the expected savings from the
Governor’s proposed cuts. While the Medicaid program has a deficit this year of
$120 million, the problems are mainly
temporary, administrative issues that will be corrected.
In a classic case of penny-wise and pound-foolish, the
Governor has also proposed eliminating funding for the health
neighborhood program for people eligible for both Medicaid and Medicare.
This program, a model of collaboration and how constructive health reform can
happen in CT, has the potential to improve care and control costs for CT’s most
fragile, and costly residents. After a great deal of hard work by all
stakeholders, the program is very near implementation.
Other cuts proposed by the Governor include pharmacy fees,
chiropractic care, closing the CT Home Care program to new applications and
increasing costs for current clients, reducing the personal needs allowance for
people living in long term care facilities, reducing burial funding for SAGA
recipients, closing DSS’s Torrington office, increasing newborn screening fees,
and cuts to grant programs.
