Coalition for Affordable Health Coverage

CBO Health Reports

CBO has released two reports on health care: Budget Options, Volume 1 (http://www.cbo.gov/doc.cfm?index=9925); and Key Issues in Analyzing Major Health Insurance Proposals (http://www.cbo.gov/doc.cfm?index=9924). The documents focus on options available to Congress to increase and decrease federal spending and how CBO will look at major health reform changes expected to be proposed this year. An additional compilation of new proposals will be released shortly.


Check out our Resource Page , where you can find information related to current legislation, policy proposals, and health reform.
June 23, 2009 New Survey of micro businesses from CAHC member National Association for the Self Employed shows entrepreneurs support for health reform, but opposition to mandates and a new government run health insurance plan. Click Here for Full Article June 23, 2009 New analysis by HSI pegs cost of House Draft health reform bill at $3.5 trillion. 97 percent covered, but 64 million lose their current coverage. Click Here for Full Article June 23, 2009 NEW CAHC side by side analysis of house health draft and the Senate HELP Committee bill. Click Here for Full Article May 18, 2009 Last week, the Obama administration released the proposed FY 2010 HHS budget, totaling $879 billion, which largely holds flat agency budgets. Key takeaways include: Medicare Medicare spending would total $452 billion, a 6 percent increase from FY 2009. Holds Medicare physician reimbursements flat over ten years, at a cost of $311 billion, to avoid a scheduled fee reduction. $311 million to CMS for program integrity, with $220.32 million for the Medicare Integrity Program for MA and prescription drug program oversight. $75 million for State high risk pools. Reducing Health Disparities $354 million to “improve the health of racial and ethnic minorities, and low-income and disadvantaged populations.” $143 million for the Minority AIDS Initiative under the Ryan White Act. $116 million for Health Professions and Nursing Training Diversity Programs. $56 million for the Office of Minority Health. $40 million for the CDC’s Reach Program $73 million for a new “Improve Rural Health Care” initiative, which includes funds for outreach, network and quality improvement grants, along with telehealth grants. Comparative Effectiveness Research $50 million for AHRQ, in addition to the $1.1 billion given to NIH for comparative effectiveness research in the Recovery Act. Health Reform · The accompanying chart outlining the details of the $634 billion reserve fund. About half the fund is through increased taxes, which likely won't happen (charitable deductions, etc.). Means testing the Part D premium is scored as revenue. Most of the rest comes from hits on Medicare Advantage and prescription drug savings (increased rebates, follow-on-biologics, etc.), home health and bundled hospital payments. The budget proposal includes several health reform initiatives already identified by the administration, including: Establishing a Health Reform Reserve Fund (see chart below) of about $600 billion over 10 years to finance fundamental reform of the health system to reduce costs and increase coverage. Improving incentives to provide higher quality care in Medicare, including incentive payments to hospitals and voluntary physician groups and reducing payments to hospitals with high readmission rates. Increasing the efficiency and accountability of Medicare and Medicaid, including reduction of payments to private insurers through competition, decreasing Medicaid costs for Rx drugs and bundling Medicare payments for inpatient hospital and post-acute care. The documents are available at the White House web page at http://www.whitehouse.gov/omb/. Budget Brief Click Here HHS Propsed Reserve Fund for Health Care Select Health Provisions -Fiscal 2010 Budget Resolutions 2010 Budget Timeline House Budget Resolution Senator Robert Byrd Budget Letter Letter to the Leadership 2.18.09 President Obama signed into law the American Recovery and Reinvestment Act (known as the Stimulus bill) that includes a number of health related provisions. Below is a summary of the statute. COBRA The law provides a 65 percent subsidy for the cost of COBRA coverage. The subsidy is available for the cost of coverage for up to nine months. COBRA is continuation of employer provided coverage for some employees who are involuntarily terminated. COBRA is not available to employees whose employer went out of business or who cancels their health plan. The law allows individuals to sign up for a lower cost plan through their former employer if an employer provides one to all their employees. The subsidy is not available to those with annual incomes above $145,000 (single) or $290,000 (couples). The subsidy is reduced beginning at $125,000 (single) or $250,000 (couples) in annual income. Assistance is available for individuals who qualify for COBRA between September 1, 2008 and December 31, 2009. The law does not include a controversial provision that would expand COBRA eligibility for those with 10 years of service with the same employer or who are age 55 or older. The provision costs $24.7 billion. COBRA requires individuals to pay 102 percent of the plan premium. The two percent is supposed to cover an employer’s costs for maintaining coverage for employees they no longer employ. Estimates by Hewitt Associates and others show the cost to employers to be $1.50 for every dollar in premiums. Thus COBRA is very expensive for employers to maintain and for individuals and families to purchase. Even with the subsidy, many will not be able to afford COBRA. Trade Adjustment Assistance (TAA) Health Care Tax Credit : The law increases the TAA Health Care Tax Credit to cover 80 percent of health premiums, up from the current law 65 percent. The increase would sunset on December 31, 2010. The Joint Committee on Taxation estimates this provision will cost $457 million. The new law allows individuals to continue to be eligible for the HCTC if they are receiving unemployment compensation or experiencing certain breaks in training programs. Enrollees can use the health coverage tax credit to help cover the insurance costs for health plans they enroll in under COBRA, in addition to other State designated options, which vary by state. Prevention The conference agreement includes $1 billion for a Prevention and Wellness Fund. The law includes $300 million for the Section 317 immunization program and $650 million to carry out evidence-based clinical and community-based prevention and wellness strategies that deliver specific, measurable health outcomes to address chronic disease rates. Health IT The law provides $22.8 billion in grants and loans, and Medicare and Medicaid funding for adoption and use of Health IT. Funding will go to a range of providers to adopt and use health information technology to improve quality and reduce costs. Most of the funding is through Medicare and Medicaid and generally begins in 2011. The Congressional Budget Office estimates these provisions will save billions in duplicative, wasteful or harmful care while improving care outcomes CER The law includes $1.1 billion in funds to the Agency for Healthcare Research and Quality, the National Institutes of Health and the Secretary to conduct comparative effectiveness research. The provision is not limited to clinical research, although Congressional authors stated they do not intend the provision to be used to deny or ration care or to change federal payment policies. Centers for Medicare & Medicaid Release Estimates for Health Spending Early in January, the actuaries at the Centers for Medicare and Medicaid Services released their estimates of national health spending. CMS found that U.S. health care spending growth decelerated in 2007, increasing 6.1 percent compared to 6.7 percent in 2006. Total health expenditures reached $2.2 trillion, which translates to $7,421 per person or 16.2 percent of the nation's Gross Domestic Product. According to the actuaries the health spending share of GDP reached 16.2 percent, up from 16.0 percent in 2006. For a link to the report highlights, click here for highlights click here for chart. ARCHIVE ARTICLES HELPFUL LINKS Issues Continuation Coverage Under COBRA Price Transparency November 24th State Health Regulation, ERISA Preemption and Fair Share Information on Heath Coverage Tax Credit FAQ's on HSAs - US Department of Treasury State High Risk Pools - Health Insurance Org Tax Treatment of Health Care - Document Legislative House Senate Text of Legislation, Committee Reports LOC Joint Committee on Taxation Administration White House Health and Human Services Department of Labor Treasury Department





	“Being newly self-employed, I was looking for a health insurance option that would provide the maximum choice and allow me to control costs. With news of the Medicare legislation, our agent suggested that I consider a health savings account. The HSA insurance policy that Assurant Health provides allows my family to save about $250 each month in premiums. That is money I’ll put away for future health needs or retirement. For me, health savings accounts are a no-brainer.” -Pam Wimbish, Aurora, Illinois

Working Together for America's Uninsured

Check out our Resource Page , where you can find information related to current legislation, policy proposals, and health reform.