Puller-Surovell Healthcare Town Hall With Secretary Bill Hazel 3-22-14

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    ClosingtheCoverageGap

    Insurance StatusinVirginia Closing theCoverageGap

    VirginiaPopulation 8,260,405

    Insured:

    Medicare,65andover(13%) 1,073,853

    CurrentMedicaidEnrollment(FY2014) 1,147,800

    Allotherinsured 5,008,752

    Uninsured64

    and

    under 1,030,000

    TOTALPopulation 8,260,405Uninsured Breakdown

    Uninsured(above) 1,030,000

    Inprivateexchange 470,700

    EligibleforCoverageGap(estimated) 400,000(Remaininguninsuredindividualsmaynotbeeligibleforcoverageduetoa

    numberof

    reasons

    such

    as

    immigration

    status)

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    Whereare

    Virginias

    Uninsured?

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    The

    vast

    majority

    (71.3%)arepartofworkingfamilies

    Themajority(80%)are

    UScitizens

    Mostoftheuninsured(46%)areWhite,nonHispanic

    Black/AfricanAmericanmakeup24%

    andHispanic20%ofuninsured

    Whoare

    Virginias

    Uninsured?

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    ClosingtheVirginiaCoverageGap:

    Whowould

    be

    eligible?

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    Pregnant

    Women

    Children05 Children618 Elderly%

    Disabled

    Parents ChildlessAdults

    FPL%

    Optional400,000+Virginians

    CurrentlyMedicaidEligible

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    TheACAgivesVirginiatheoptiontoreceivefederalfundingtocoveran

    estimated400,000eligibleindividualswithincomesunder133%FPL.

    Basedonhistoricalaverages,anestimated248,000additionalVirginians

    wouldenrollandreceivehealthcoverage. Statesthatexpandcoverage,

    mustexpand

    coverage

    to

    133%

    FPL.

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    2014Federal

    Poverty

    Level

    (FPL)

    Guidelines

    Family Size

    Annual Family Income

    100% FPL 133% FPL 185% FPL 200% FPL

    1 $11,670 $15,521 $21,589 $23,340

    2 $15,730 $20,920 $29,100 $31,460

    3 $19,790 $26,320 $36,611 $39,580

    4 $23,850 $31,720 $44,122 $47,700

    5 $27,910 $37,120 $51,663 $55,820

    Source: 2014 Federal Poverty Guidelines, U.S. Dept. of Health and Human Services6

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    HowwouldVirginiapaytocoverour

    uninsured?

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    Cost Breakdown

    YearVirginia Federal

    2014 - 2016 0% 100%

    2017 5% 95%

    2018 6% 94%

    2019 7% 93%

    2020 - Future Up to 10% At least 90%

    TocovertheuninsuredinVirginia,thefederalgovernmentwouldpay100%of

    thecostforthenewlyeligibleMedicaidenrolleesuntilJanuary2017,when

    Virginiawouldbeginassumingaportionofthecosts.

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    Closingthe

    Coverage

    Gap

    and

    the

    ACA

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    HowistheAffordableCareActfunded?

    Howisthisfundingalready

    affectingVirginia?

    Isit

    optional

    for

    Virginia

    to

    participateinfundingthe

    AffordableCareAct?

    NO.We

    are

    already

    payingforitwithout

    receivingthebenefits!

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    TheAffordable

    Care

    Act

    Funds

    Itself

    ThenonpartisanCongressionalBudgetOfficerecently

    confirmedyet

    again

    that

    federal

    healthcare

    reform

    on

    balancefundsitself.

    Fundingsources:

    1. Spendingreductions

    on

    public

    health

    programs

    2. Taxrevenues

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    Spending

    Reductions

    NewTax

    Revenues

    ACAFunding

    for

    State

    Programs

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    FundingSource#1:

    Reductionsto

    Medicare

    Payments

    ThelargestspendingreductionisinpaymentstohospitalsforMedicarepatients($196Bfrom20102019).

    WhatdoesthismeanforVirginia? Financial

    hit

    to

    Virginias

    hospitals:

    lossofover$1.5Billionfrom20142018

    Jobloss

    for

    Virginia

    citizens:

    Nearly1,000jobshavealreadybeenlostoraffectedinVirginia.

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    FundingSource#2:

    Increasein

    Federal

    Taxes

    ThelargestrevenuesourcefortheACAis$200Billionthatcomesfromunavoidabletaxincreases.

    Federalpayrolltaxincreaseof0.9%andinvestmentincometaxincreaseof3.8%forhighincomeindividualsandfamilies($200,000&$250,000,respectively)

    WhatdoesthismeanforVirginia?Each

    year,

    regardless

    of

    whether

    or

    not

    we

    cover

    the

    uninsured,Virginianswillpayout$2BillionintaxesandfeestosupporttheACA.

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    Outflowof

    Virginia

    Dollars

    NOTE:ThetaxanalysisisbasedondatafromtheJuly24,2012CBOletterreporttoSpeakeroftheHouseJohnBoehner.

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    Thismoney

    couldbe

    used

    rightherein

    Virginiato

    coverour

    uninsured.$5Million

    EveryDay

    $2Billion

    Every

    Year

    $10Billion

    est.

    over

    5years

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    Failingto

    Close

    the

    Coverage

    Gap

    Ifwedonotclosethecoveragegap,effectivelyreinvestingthis

    money

    back

    in

    Virginia,

    our

    families

    andbusinesseswillsendhardearnedtaxdollarsto

    Washingtonwithoutthebenefits,jobs,orrevenue

    returnedtoVirginia.

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    $2BilliontoFederalGovernment

    $0BacktoVirginia

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    SystemicEffects

    of

    Coverage

    Theeffectsofcoveringtheuninsuredcanbefeltbeyond

    economicsandindividualandpublichealth.

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    Coveringthe

    Uninsured

    MentalHealth

    Education

    BusinessPublicSafety

    VeteransAffairs

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    MentalHealthAnestimated77,000adultsinVirginiahavementalillnessesandnoinsurancetopayfortreatmentormedication.

    PublicSafetyGainingaccesstotreatmentformentalhealthandsubstanceabusemayeasetheburdenonVirginiaslawenforcementcommunity.

    EducationParentswhohavecoveragearemorelikelytogaincoveragefor

    theirchildren.

    Healthy

    parents

    equal

    healthy

    students.

    BusinessVirginiasbusinessespayhigherpremiumsforemployeestocompensatefortheuninsured.Newbusinessesmaybelessinclinedto

    cometoVirginia,createjobs,andinfuseoureconomy.

    VeteransAffairsOfthemorethan30,000uninsuredveteransandtheirspouseswholiveinVirginia,nearly10,000uninsuredveteransandnearly

    3,000oftheirspouseswillbeeligibleforcoverage.

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    SystemicEffects

    of

    Coverage

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    Whatare

    other

    states

    doing?

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    Highlights

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    Whileanewprogramtocovertheuninsuredis

    optional,the

    new

    taxes

    to

    cover

    the

    costs

    of

    funding

    theACAarenot.

    Virginiawilllose$2Billionannuallywithoutcreating

    anew

    program.

    Medicaidisundergoingaseriesofreformsdesigned

    tocontrolcostsandstreamlinecare.

    Coveringthe

    uninsured

    in

    Virginia

    will

    not

    only

    providehealthcoveragetoindividualsinthegap,itwill

    havepositiveimpactsinpublicsafety,commerce,

    education,and

    mental

    health.

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    Medicaidin

    the

    44th District

    Mt.Vernon&LeeCommunity

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    CurrentMedicaidPopulation 12,532Medicaid/FAMISPopulation

    16%of

    44th District

    Residents

    Whoisthatpopulation?

    748Adults

    482Aged

    432Other

    633PregnantMothers

    9,371Children

    1in3Childreninthe44th District

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    CostofCurrent44th DistrictPopulation

    OverallCost$42,738,651

    $6,634,997Acute

    Care

    $19,693,493 MCOPayments(ManagedCare)

    $6,215,443 LongTermCarePayments

    $9,628,692 PrimaryCarePayments

    $540,001 Pharmacy

    $237,417 Dental

    Payments

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    WhyisUninsuredCarein44th a

    Problem?

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    WhyIs

    Uninsured

    in

    44

    th

    AProblem?

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    FairfaxCountyEmergencyRoomLowAcuityVisitsByZip(Enlarged)

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    MostUtilizedProvidersHospitals

    INOVAFairfax

    TheAlexandriaHospital

    INOVAAlexandria

    VAHospital

    Center

    Mt.VernonHospital

    NursingFacilities Manor

    Care

    of

    Alexandria,VirginiaLLC

    Mt.VernonNursing

    Center WoodbineRehabilitation

    HealthCenterLLC

    Leewood Health

    Center ManassasHealth&

    RehabilitationCenter

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    WhatDoesClosingtheGapMeanforthe44th District?

    UsingtheMedicaidChildPopulationasa

    Proxy

    44th Districthas1.33%ofallMedicaidchildrenin

    VA

    $24,349,859New

    Spending

    400NewJobs

    5,337New

    People

    Provided

    Health

    Insurance

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    VirginiaGeneralFundSavings MedicaidExpansionFreesup$280MillionThisBiennium DepartmentofCorrections

    IndigentCareatStateTeachingHospitals

    Community

    Services

    Boards FreeClinics

    PregnantWomen

    BreastCancer

    FamilyPlanning

    Howcouldthesesavingsbereappropriated? LawEnforcement HigherEducation

    SecondaryEducation:

    $27,636,012forFairfaxCounty $154.61perstudent 502NewTeachersat($55K/position)

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    BOTTOMLINES ExpansionWouldSaveVATaxpayersHundredsofMillions WouldFreeUpGeneralFundMoneyforOtherPurposes WouldProvideLastUninsuredwithDignityofHealthInsurance WillCreate30,000VirginiaJobs WillBringVAFederalTaxDollarsBacktoVirginiaandStopVA

    SubsidizingOtherStates WillControlExplodingPrivateMedicalInsuranceCosts

    IsSupportedby: HealthCareIndustry VirginiaChamberofCommerce FairfaxCountyChamberofCommerce SenateofVirginia GovernorTerryMcAuliffe

    IsOpposedby: VirginiaHouseRepublicanCaucus

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