Thank you, Dr. Gingrey. Mr. Speaker, I rise today to talk about how ObamaCare will hurt my State and ultimately hurt my patients. And I would like to start with an example of the Medicaid program. As a cardiothoracic surgeon in Evansville,…
Thank you, Dr. Gingrey.
Mr. Speaker, I rise today to talk about how ObamaCare will hurt my State and ultimately hurt my patients. And I would like to start with an example of the Medicaid program.
As a cardiothoracic surgeon in Evansville, Indiana, I see a lot of patients from neighboring States because we're right in the corner next to Illinois and Kentucky.
Many of these patients are Medicaid patients and, without treatment, face grave results. However, every year the Illinois Medicaid program runs out of money in September, October. They don't have enough money to fund the entire year. And what does that mean? That means that without denying any patients care that they need and deserve, my practice was forced to delay billing to the Medicaid system of Illinois. And then once the new fiscal year came into play, about 50 percent of those claims were subsequently denied by Illinois Medicaid. So those patients that came over for our services, they don't have quality health insurance, Mr. Speaker.
Some physicians in my community don't even bother to bill the Medicaid program in some States at all. This is an example of the broken Medicaid system, a system that has many issues focusing on the access to quality health care. And it was said earlier you see the outcome difference between Medicaid and private insurance patients because we have an access and quality problem with these patients, a system that ObamaCare will break even more by adding millions of Americans to the States' Medicaid rolls. It's estimated that this may cost the State of Indiana as much as $3.6 billion to cover these folks.
From Indiana we have an innovative and effective solution, and that's called the Healthy Indiana Plan. Beginning in January 2008, uninsured Hoosiers between the ages of 19 and 64 started enrolling in this plan, a consumer-driven health care plan. The Healthy Indiana Plan operates on an 1115 demonstration waiver from CMS, the Center for Medicare and Medicaid Services. Due to the program's success, the State of Indiana would like to use the Healthy Indiana Plan as a coverage vehicle for the newly eligible population under ObamaCare. This has been requested by my State Department of Health and Human Services, but to this point we have not heard a response about whether this will be possible. And I am hoping that we get a response in the positive direction because this is a great program.
The plan is for citizens that earn less than 200 percent of the Federal poverty level and works on a sliding scale for individual contributions, based on the ability to pay, that cannot exceed more
than 5 percent of his or her gross family income. Each participant is enrolled in a health savings account valued at about $1,100, and will not make copays except for non-emergency use of the emergency room. And believe it or not, this program reimburses providers at a Medicare, not Medicaid, level. This gives citizens a financial incentive to adopt healthy lifestyles and personal responsibility to make their own health care decisions.
Healthy Indiana Plan is an innovative, market-based, consumer-driven plan that is working. In a recent survey, 94 percent of Healthy Indiana Plan participants are satisfied with the program, and 99 percent indicated they would re-enroll. There is data in the fact sheet that I have included in the Congressional Record showing the success of this plan both for patients and for the State of Indiana.
It's a commonsense, market-based solution to a broken Medicaid system that ObamaCare does nothing to fix, but only further burdens my State, and all States, and will ultimately continue to hurt patients' access to quality health care in America. So I would urge everyone to review what the State of Indiana has done with its Healthy Indiana Plan.
With that, Dr. Gingrey, I thank you.
The Healthy Indiana Plan is a consumer-driven health care
plan for uninsured Hoosiers between the ages of 19-64. The
program began enrollment in January 2008, and operates under
an 1115 demonstration waiver from the Centers for Medicare
and Medicaid services (CMS). During the first two years of
the program, HIP served 61,797 Hoosiers.
who is covered?
HIP is for uninsured Hoosier adults between the ages of 19-
64. Parents or caretaker relatives of children in the Hoosier
Healthwise (CHIP) program are likely candidates for HIP.
Eligibility Requirements: 1. Earn less than 200% of the
federal poverty level (FPL). A single adult earning less than
$20,000 or families of four earning less than $40,000 likely
meet the basic financial requirements. 2. No access to
employer sponsored health insurance coverage. 3. Uninsured
for the previous six months.
plan structure
A POWER (Health Savings Account) Account valued at $1,100
per adult. Contributions to the account are made by the State
and each participant (based on ability to pay). No
participant pays more than 5% of his/her gross family income.
Sliding scale for individual contributions (based on % of
gross family income): 0-100% FPL: 2%; 100%-125% FPL: 3%;
125%-150% FPL: 4%; 150%-200% FPL: 4.5%-5% (Caretaker
relatives/parental adults in this income bracket contribute
4.5%, and the childless adults contribute 5%).
No co-pays except for non emergency use of the ED.
Providers are reimbursed at Medicare, not Medicaid, rates.
Plan Benefits
A basic commercial benefits package, once annual medical
costs exceed $1,100.
Coverage for preventive services up to $500 a year at no
cost to participants.
Services include: physician services, prescriptions,
diagnostic exams, home health services, outpatient hospital,
inpatient hospital, hospice, preventive services, family
planning, and case and disease management.
Mental health coverage is similar to coverage for physical
health, and includes substance abuse treatment, inpatient,
outpatient, and drugs.
HIP does not cover vision or dental. HIP also does not
cover pregnancy services, as these services are available
through the existing Medicaid program.
Why a POWER (HSA) Account?
Personal Wellness and Responsibility (POWER) Accounts give
participants a financial incentive to adopt healthy behaviors
that keep them out of the doctor's office. When they do seek
health care, participants will seek price and quality
transparency so they can make value conscious decisions.
If all age and gender appropriate preventive services are
completed, all (State and individual) remaining POWER Account
funds will rollover to offset the following year's
contribution. If preventive services are not completed, only
the individual's prorated contribution (not the State's
portion) to the account rolls over.
Program Results & Personal Responsibility
HIP members, in general, have demonstrated the personal
responsibility emphasized by the program.
Lower ER Use: Some HIP members do not make POWER account
contributions due to CMS income-counting guidelines. HIP
members required to make POWER account contributions: 9%
decrease in ER use in 3 months; 15% decrease in ER use after
6 months. HIP members not required to make POWER account
contributions: Initial 5% decline in ER use after 3 months;
no additional decline in ER use.
High Generic Drug Utilization:
HIP generic drug utilization: 80%; comparable commercial
population: 65%.
High Use of Preventative Care: 76% of HIP members received
their required annual physical in the first year of the
program. Use of preventive services was significantly higher
than the traditional Medicaid population in Indiana: 445.4
well care visits per 1,000 (HIP caretaker adults); 281.8 well
care visits per 1,000 (HIP childless adults); 195.2 well care
visits per 1,000 (Indiana Medicaid adults).
Strong Personal Responsibility: 97% of members made their
required POWER account contributions during program year one.
Individuals can be removed from the program for failure to
make POWER Account contributions within 45 days. Once removed
from the program, an individual may not re-enroll for 12
months.
High Member Satisfaction: 94% of HIP participants surveyed
said they are satisfied with the program, and 99% of
respondents indicated that they would re-enroll in the
program.
Impact of the Affordable Care Act
The Affordable Care Act maintenance of effort requirements
turned HIP into an entitlement program for adults. Despite
funding limitations (HIP was funded through an increase in
the cigarette tax), the State cannot limit the number of
parental enrollees. Therefore, the State is not currently
enrolling childless adults on the wait list.
Due to the success of the program, the State would like to
use HIP as the coverage vehicle for the newly eligible
population. Indiana has asked for direction from CMS (May
letter to Cindy Mann) and has not received any official
guidance.
The success of the program depends on its innovative
market-based, consumer-driven structure. There is concern
about whether or not CMS will allow the program to continue
in its current form.
For more information: www.HIP.in.gov.