The Medicare Advantage program is bracing for another round of deep cuts as a result of the Affordable Care Act (ACA) and further reductions proposed by the Centers for Medicare and Medicaid Services.
After a snow delay, the president’s budget was released yesterday. AAF’s team of policy experts quickly went to work reading the document and breaking down what it means. In reviewing the spending and taxes in the president’s budget, AAF finds:Tax revenue increase of $1.8 trillion; Spending increase of $2.5 trillion over the budget window, or a 71% increase; Record deficits requiring additional borrowing of over $1 trillion in the next two years; and Higher interest payments on the debt, totally $812 billion in 2024.
This morning, President Obama released his proposed budget for fiscal year (FY) 2015, which provides useful insights into the administration’s policy priorities.
In January the Center for Medicare and Medicaid Services (CMS) proposed new regulations for Medicare Part D that would limit plan options, restrict competition, and interfere with plans’ negotiations. Under the guise of ordinary rulemaking, the proposed regulations are a fundamental contravention of the policy principles that have made Part D a popular, low-cost, and innovative program. If implemented, the taxpayer will face higher budget costs, millions of seniors will lose their preferred plans, benefits will diminish, and premiums will rise.
In the absence of health status information, the age of enrollees is an important indication of future health care spending—young adults are generally low-cost, while adults near retirement tend to require more costly and more frequent medical treatment.
The 2010 Affordable Care Act (ACA) health reform law established state-based health insurance exchanges to provide an individual market for qualified health insurance plans. The state exchanges sell insurance plans to any citizen, regardless of health status. Enrollees who purchase plans through an exchange can receive federal premium subsidies if their household income falls between 100-400 percent of the federal poverty level. This primer provides an overview of the ACA’s risk mitigation provisions that apply to individual and/or small group market plans: reinsurance, risk corridors, and risk adjustment.
The administration is looking towards young adults—known for generally good health and a propensity to forgo health insurance—to participate in large numbers in the Affordable Acre Act’s (ACA) state based exchanges, helping to guarantee a balanced risk pool in the insurance market.
The Affordable Care Act’s (ACA) employer mandate was intended to ensure that employers continued to offer health benefits rather than shifting their employees to federally subsidized exchanges. Evidently the law’s crafters failed to appreciate that there remains strong incentives to stop offering employer sponsored insurance; the penalty for non-compliance is a fraction of the cost of insurance and the subsidized individual market remains a viable alternative. Beyond that, because the mandate only covers full-time workers, there is a clear incentive to shift more employees into part-time schedules, reducing their hours below a 30 per week average, the ACA’s definition of full-time.
Americans enrolling in the new health insurance exchanges implemented by the Affordable Care Act (ACA) and earning between 100 and 400 percent of the federal poverty level (FPL) are eligible for premium subsidies—a tax break intended to make health insurance on the individual market affordable for those who need it most.