By Jonathan Ingram, Director of Research

Executive Summary

Supporters of the Affordable Care Act’s optional Medicaid expansion have made a series of promises to Florida lawmakers as they decide if the government health program should include parents and childless adults earning up to 138 percent of the federal poverty level. These promises include a reduction in the rate of uninsured, gradual enrollment increases, low and predictable costs, and a reduction in the amount of charity care.

These same promises were made in other states that previously expanded their own Medicaid programs. Because of this, Florida lawmakers now have an opportunity to see how Medicaid expansion impacted those states, and if
supporters’ promises were actually kept.

This report takes a closer look at Arizona, Maine and other states that expanded Medicaid. It finds that, unfortunately, expansion supporters have a poor track record of keeping promises.

• Enrollment among the expansion populations was much higher and faster than the slow and gradual enrollment that was projected.
• Medicaid expansion had little impact on the rate of uninsured. Arizona’s uninsured rate actually increased in the five years after expansion, while Maine’s did not change.
• Per-person costs for the new expansion populations were much higher than projected—particularly for the childless adult populations.

The experiences of these other states are instructive for Florida lawmakers. In those states, promises made by supporters of Medicaid expansion were unable to be kept. The same will likely be true for Florida if lawmakers ultimately decide to expand.

READ THE FULL REPORT (pdf)

NAPLES – A new poll commissioned by the Foundation for Government Accountability (FGA) is likely to cause buyer’s remorse for Governor Rick Scott and legislators who announced support for Medicaid expansion.

“Any Florida politician that hoped to score political points by supporting Medicaid expansion will be disappointed, and probably a little nervous, by these results,” said FGA President and CEO Tarren Bragdon.  “Medicaid expansion is unpopular with Florida voters, and a majority is likely to reinforce that opposition at the ballot box.”

The 811-person poll of registered Florida voters found that fewer than a quarter of respondents (24%) want Florida to expand Medicaid right away to enroll roughly 1 million more people into the taxpayer-funded health program.  A vast majority (70%) either want politicians to delay the decision for one year, or reject the expansion entirely.

With regard to expansion, voters indicate a lack of trust in the federal government to fund the expansion, support for a different approach to reducing the uninsured, and a belief expansion will increase voters’ taxes and personal health care costs:

• Half of voters have very little (27%) or no (23%) trust in the federal government to keep its promise to fund Medicaid expansion costs;
• 78% said making private health coverage more affordable was the best way to reduce the uninsured rate, compared to just 15% who said Medicaid expansion is the best approach;
• 62% strongly or somewhat agree Medicaid expansion will result in higher personal health care costs, while 70% of voters strongly or somewhat agree expansion will result in higher taxes.

A majority of voters (53%) are so firm in their opposition that they would be less likely to support their state legislator if he or she voted to expand Florida Medicaid by another 1 million enrollees.  Just 39% indicate they would be more likely to support their legislator for favoring expansion.

“Few voters believe that a massive expansion of government-run Medicaid will solve anything,” Bragdon said.  “Voters know it will cost more, tax more, provide less, and leave future generations with the bills.”

The poll was conducted by Mark Blankenship Enterprises (MBE) between February 19 and 23, 2013.  It has a +/- 3.44% margin of error and a 95% level of confidence.

CLICK HERE to access the full poll.

CLICK HERE to access the polling memorandum prepared by Mark Blankenship Enterprises.

About MBE

Mark Blankenship is president and chief executive officer of Mark Blankenship Enterprises, LLC (MBE).  MBE is a national communications and opinion research firm.. Blankenship’s surveys, commentary and insights have appeared in a range of national and regional media including The Wall Street Journal, The New York Times, The Drudge Report, Fox News, Roll Call, The Hill, Politico and others.  MBE provides a range of actionable and reliable research methodologies to Fortune 500 companies, small businesses, prominent law firms, media organizations, associations and non-government organizations. 

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By Jonathan Ingram, Director of Research

EXECUTIVE SUMMARY

As a result of the U.S. Supreme Court decision upholding the federal Affordable Care Act, Florida policymakers are forced to decide whether or not they should expand the state’s Medicaid program to cover individuals earning up to 138 percent of the federal poverty level.

Whichever decision they reach will impact the state’s long-term finances, overall patient health, and taxpayers’ bottom line.  The decision is made even more difficult due to a lack of consistent projections related to costs (both short and long term), participation rates, and per person spending.

Myriad academic and advocacy groups have generated projections on the impact of Medicaid expansion in Florida.  However, the projections lack consistency—varying widely from one another.  This should be a red flag to policymakers.

• Over the next ten years, Florida will spend $270 million on Medicaid if the state does not expand.  Spending climbs to $341 billion over the decade if expansion occurs.
• In other states, providing Medicaid coverage for childless adults costs anywhere from 67 percent to four times the cost of providing coverage to parents.
• Looking at expansion scenarios for Florida given the actual experiences in other states leads to a wide range of possible costs for the expansion population ten years out–from a lowest cost projection of $4.1 billion to a highest cost projection of $19.5 billion.

Without a clear understanding of how Medicaid expansion will affect patients and taxpayers, the best decision for Florida policymakers would be to reject expansion.  At the very least, they should delay their decision until they can see the results of expansion in other states.

READ THE FULL REPORT (pdf)

The individual mandate that forces people to pay federal penalties if they don’t buy federally-approved health coverage they may not want or need.  An employer mandate that drives up the cost of doing business. And, the more than 20 new or increased taxes that ObamaCare imposes on families and businesses.

ObamaCare raises a lot of money for the government to spend, but where is it all going?

Some states will put more people on the broken Old Medicaid program that is failing patients and taxpayers.  Others will funnel billions through health insurance exchanges, which are new federal bureaucracies designed to regulate and subsidize health insurance.  Think of these exchanges as having to buying health insurance at the DMV.

And then there’s the ObamaCare slush fund.

Officially the Prevention and Public Health Fund, this little-known component of ObamaCare directs $10 billion to state and local health promotion programs through 2019—and requires a startling $2 billion in funding each year in 2020 and beyond.

Although the Fund must statutorily “improve health and help restrain the rate of growth in private and public sector health care costs,” the federal government will give billions to health prevention programs before finding out if they even accomplish these goals.

And unlike the typical federal budgeting process, the U.S. Department of Health and Human Services (HHS) and its subagencies unilaterally determine how much of the money is spent.  To date, Florida grantees were awarded more than $118 million in 170 awards from the Fund.  Of these $118 million in grants, $30 million went to the state of Florida, $40 million to Florida non-profits, $30 million to Florida county or city governments, and $11 million to for-profit Florida companies.[1]

When “Public Health” Means the Nanny State

The U.S. spends about $24 billion annually funding “public health,” a term whose definition has changed over time.[2]

Traditionally, “public health” activities meant controlling communicable diseases, like tuberculosis or smallpox.  But as these diseases were brought under control and life expectancy increased, federal public health programs veered away from disease treatment and prevention, and towards regulating lifestyle choices, like eating, drinking, or smoking.

For example, the U.S. Centers for Disease Control and Prevention (CDC) was established during World War II as a unit of the U.S. Public Health Service, and charged with malaria control in war areas.  Today, only two of the CDC’s eight “CIOs” (“centers, institutes, and offices”) are formally charged with the prevention of infectious diseases.[3]

Grants from ObamaCare’s Prevention and Public Health Fund have followed a similar pattern.  Since the Fund began disbursing grants in 2010, a majority of funds have been allocated to influencing lifestyle and behavior choices like nutrition,
physical activity, and tobacco control:

Prevention and
Public Health Fund: Major Grants by Year, 2010-2011

Source: U.S. Centers for Disease Control and Prevention[4]

When “Education” Means Lobbying

A closer look at the grants reveals an even more disturbing trend—federal dollars used for lobbying.

The watchdog group Citizens Against Government Waste reports that the Fund’s Community Transformation Grants  (CTG) not only support efforts to modify behavior through anti-obesity campaigns, but also fund advocates who call for increased taxes and regulations on soda, cigarettes and even whole milk.[5]  The CDC reports that to date, CTG has awarded $173 million and will “improve the health of more than 4 out of 10 U.S. citizens.”[6]

CTG’s sister initiative, Communities Putting Prevention to Work (CPPW), has faced similar criticism.  This CDC program, which began as part of the 2009 stimulus and continues to receive federal dollars through the Fund, offers grant making to local health promotion programs nationwide.

Miami-Dade County in Florida is one of 44 localities to receive CPPW funding.[7]  In 2010 the County received $14.7 million to launch the “Make Healthy Happen Miami” initiative charged with reducing obesity by, among other things, installing federally-reimbursable, healthy vending machines; supporting policies that encourage breastfeeding; and installing 50 bike racks in North Miami.[8]

Unsurprisingly, the initiative did little to affect overall obesity outcomes.  According to the Robert Wood Johnson Foundation’s County Health Rankings, the adult obesity rate in Miami-Dade was 21% in 2010, the year the CPPW grant was awarded.  In 2012, the adult obesity rate increased to 24%.[9]

Miami-Dade’s CPPW activities might be viewed as ineffectual.  But in other localities, some CPPW activities may actually be illegal. In June, HHS Inspector General Daniel Levinson reported inappropriate lobbying activities by some CPPW grantees, which violates federal laws and regulations prohibiting the use of federal funds to influence federal, state, or local officials.

Specifically, CPPW applicants were asked to provide “a comprehensive plan to reduce tobacco use through legislative, regulatory, and educational arenas” and that some of the strategies encouraged by the CDC included zoning restrictions, labeling initiatives, and changing the prices of healthy and unhealthy items.

Levinson concluded that “some of the CDC information, as well as the non-CDC resource materials posted to the CDC Web site appear to authorize, or even encourage, grantees to use grant funds for impermissible lobbying.”[10]

The Futility of Government Prevention Efforts

Let’s imagine for a moment that it’s the proper role of the federal government to fund “for your own good” programs that regulate lifestyle choices.  Let’s also imagine that all CTG and CPPW funds have been used in an ethical manner.  The question still remains: Do federal health promotion programs really work?

In 2009, Congressional Budget Office (CBO) Director Doug Elmendorf was asked to determine if federal health care costs would be reduced if the government expanded support for preventive care and wellness.  Elmendorf concluded:[11]

“Although different types of preventive care have different effects on spending, the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall.

“That result may seem counterintuitive.  For example, many observers point to cases in which a simple medical test, if given early enough, can reveal a condition that is treatable at a fraction of the cost of treating that same illness after it has progressed. … [But] to avert one case of acute illness, it is usually necessary to provide preventive care to many patients, most of whom would not have suffered that illness anyway.”

The CBO similarly found that expanded government support for wellness services, like encouraging healthy eating and reducing smoking, have little effect on reducing federal health costs because “designing government policies that are effective at inducing people to be healthier is challenging.”[12]

What’s Next?

Some officials have proposed reducing or eliminating the Fund to relieve federal budgetary pressures.  In February, Congress agreed to cut the Fund’s spending from $15 billion to $10 billion in order to preserve jobless benefits, Medicare payments to doctors, and the temporary payroll tax cut.  And with the “fiscal cliff” looming, the Fund may again be on the chopping block as Congress looks to make further cuts.

Because of federal fiscal uncertainty, states would be wise to avoid soliciting Fund grants to bolster existing health promotion programs.  But more importantly, lawmakers should reject these “for your own good” lifestyle interventions that are
costly, bureaucratic, and simply don’t work.

Click HERE for a PDF of the report.

Tarren Bragdon is chief executive officer of the Foundation for Government Accountability, a Naples-based free market think tank.

Sources

The CBO’s latest analysis of ObamaCare confirms that Governor Scott made the right decision by refusing to subject Florida patients and taxpayers to a massive expansion of Medicaid, and a bureaucratic-conceived health insurance exchange.  Medicaid is already a budget buster.  The forced addition of more than 1 million people onto the program would turn the Medicaid safety net into a tightrope for truly needy Florida families.  The Foundation for Government Accountability stands behind Governor Scott as he exercises Florida’s right to state sovereignty, and opposes the ill-conceived dictates of the federal government.

Below is a passage from the CBO report discussing the logic of refusing to expand Medicaid:

At the same time, there are significant disincentives for states to expand Medicaid eligibility. One is that states would ultimately have to bear some costs for an expansion of Medicaid coverage during a period when their budgets are already under pressure, in part from the rising costs of the existing Medicaid program. Health care costs tend to rise faster than those for other services or products in the economy. And although the 10 percent share of the costs of newly eligible people that states would ultimately bear would be a small share of total additional Medicaid spending, it would nevertheless represent a large extra cost for some states. In addition, CBO estimates, and states expect, that expanding the Medicaid-eligible population would lead to an increase in enrollment among those who would have been eligible under prior law and would not qualify for the higher federal matching rates, resulting in additional costs for participating states. States may also fear that the federal government, which faces its own severe budgetary pressures, will ultimately reduce the federal matching rate and that if it did so, rolling back expansions already in place would be difficult.

Source: http://cbo.gov/sites/default/files/cbofiles/attachments/43472-07-24-2012-CoverageEstimates.pdf

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CONTACT:
Chris Cinquemani, Chief Operating Officer
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

Foundation for Government Accountability CEO Presents Florida’s Reform Successes

SCOTTSDALE, AZ – National health policy leaders learned what common sense health and welfare reforms accomplish for patients and taxpayers during a presentation by the Foundation for Government Accountability (FGA) to the Health and Human Services Task Force of the American Legislative Exchange Council (ALEC)last Friday.

FGA CEO Tarren Bragdon (right) with Wisconsin State Senator Leah Vukmir, public sector chair of the ALEC Health and Human Services Task Force.

The Health and Human Services Task Force is one of nine—and the largest—such sub-groups of ALEC, a non-partisan national coalition of public and private sector leaders committed to the free market, limited government and state’s rights.  ALEC members are comprised of state legislators and private and non-profit sector individuals who collaborate to develop ideas that tackle challenges faced by the states.
Bragdon, a nationally recognized authority in Medicaid and welfare policy, presented to the Task Force his talk titled Florida’s Health Care Reforms: Health and Welfare Successes in the Sunshine State at ALEC’s 2011 States & Nation Policy Summit in Scottsdale, Arizona.

“Florida has made tremendous accomplishments in the areas of patient-centered Medicaid reform and welfare accountability,” Bragdon said.  “I’m grateful to have shared these successes with free market leaders on the Health and Human Services Task Force.  Members left interested in exploring similar reforms for other states.”

Bragdon presented his research on Florida’s five-county Medicaid Reform Pilot, which expanded plan choices for patients, covers more health services than any other Medicaid program in the country, and achieves better health outcomes and higher patient satisfaction among participants.  The Reform Pilot, which began in 2006, has also saved Florida taxpayers an estimated $118 million annually.

A planned statewide expansion of Florida’s Medicaid Reform is pending approval of waiver requests submitted by the State to the federal Centers for Medicare and Medicaid Services.  Statewide expansion would save taxpayers up to $901 million every year.  If Florida’s Medicaid Reform were replicated nationwide, Medicaid patients would be healthier and happier, and American taxpayers would save up to an estimated $28.6 billion.

“As other states struggle with Medicaid crises, Florida has found a cure with its Medicaid Reform Pilot,” Bragdon said.

Bragdon also discussed Florida’s welfare cash drug testing law, which requires applicants to pass a drug test before collecting taxpayer funded welfare cash.  In October, after just three months as law, activist federal Judge Mary Scriven suspended the law based on personal ideology rather than fact.

Prior to Scriven’s pro-addict ruling, 19 percent of otherwise eligible applicants received a drug-related denial for failing to prove the welfare cash they sought would be used to support kids and families, not illegal drug addiction.  During its first three months, these drug-related denials resulted in an estimated savings of $1.8 million to Florida taxpayers.  Governor Rick Scott has appealed Scriven’s ruling.

“Welfare cash drug testing is a common sense solution to help protect children of drug addicts,” Bragdon explained.  “Our limited welfare dollars should not be used to fund addiction.  Scriven’s ruling has put Florida children at greater risk.”

Bragdon’s presentation was well received.

“Tarren presented the Task Force important information about Florida’s success in implementing reforms that are both pro-patient and pro-taxpayer,” explained Christie Herrera, Director of ALEC’s Health and Human Services Task Force.  “Tarren showed why members should look to Florida for free market Medicaid and welfare reforms that strengthen these safety net programs for those who truly need them, and save money for the taxpayers who fund them.”

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Contact:
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

NAPLES – Foundation for Government Accountability (FGA) Chief Executive Officer Tarren Bragdon sent a letter to the Community Health Action and Information Network (CHAIN) condemning the liberal group’s political campaign to stop statewide expansion of Florida’s successful Medicaid Reform.  The letter also rebukes CHAIN for refusing to propose alternatives that match the success of the state’s five-county Medicaid Reform Pilot.

“CHAIN has been vehement in its opposition to proven patient-centered health care reform.  Further, CHAIN has failed to offer meaningful reform alternatives that have shown to improve patient health and satisfaction.  One is left to believe the true purpose of CHAIN is to shackle Florida patients to a bureaucrat-controlled Medicaid system,” Bragdon wrote.

Florida’s Medicaid Reform Pilot has achieved better health outcomes and higher patient satisfaction compared to patients confined to traditional, bureaucrat-controlled Medicaid managed care and commercial HMO plans.  The Pilot has also expanded plan choices, covers extra health services and has created significant taxpayer savings.

Earlier this year, Florida submitted a series of waiver requests to the federal Centers for Medicare and Medicaid Services (CMS) so this Medicaid Reform can be enacted statewide.  Florida taxpayers are estimated to save up to $901 million annually from statewide expansion, and all Florida Medicaid patients, not just those in Reform Pilot counties, will become healthier and happier with their care.  Those requests are pending.

Last week, FGA sent a 24-page study authored by Bragdon to CMS analyzing Reform Pilot results along with a letter urging the federal agency to approve Florida’s waiver requests.  CHAIN’s intense lobbying effort to sway CMS to deny Florida’s requests discards the Reform Pilot’s benefits to both Medicaid patients and Florida taxpayers.

“As other states struggle with Medicaid crises, Florida has a cure with its Medicaid Reform Pilot,” Bragdon continued in the CHAIN letter.  “CHAIN has resisted this Medicaid cure from the outset, instead pushing a return to the failed, command-and-control system where bureaucrats—not the Medicaid patient or doctor—is in control of that patient’s care.  That’s not patient advocacy, that’s patient politics and it is wrong.”

Bragdon, a nationally-recognized expert on Medicaid and welfare programs, concluded his letter with a put-up-or-pipe-down message to the liberal group.

“Until CHAIN offers a meaningful alternative to Florida’s Medicaid Reform that prioritizes patients over the bureaucrats and special interests, CHAIN should end its political campaign.  In light of the tremendous accomplishments made by the Reform Pilot on behalf of Medicaid patients, and the achievements to come if and when CMS allows Florida to expand the program statewide, CHAIN obstructionism marks patient politics at its worst.”

CLICK HERE to read the letter sent by FGA CEO Tarren Bragdon to CHAIN.

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CONTACT:
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

NAPLES – The federal agency deciding the fate of Florida Medicaid patients and taxpayers now has factual research, not just liberal talking points, as it deliberates over whether to permit a statewide expansion of Florida’s successful Medicaid Reform Pilot.

The Foundation for Government Accountability (FGA) sent a letter to the Centers for Medicare and Medicaid Services (CMS) today urging the agency to approve six pending waiver and amendment requests that would authorized the state’s Reform Pilot to expand statewide.  Earlier this year, the Legislature passed, and Governor Rick Scott signed legislation to implement statewide Medicaid reform, pending federal approval.

The letter was sent with the 24-page study authored by FGA President and Chief Executive Officer Tarren Bragdon comparing the Reform Pilot to traditional Medicaid and commercial HMOs.

“It is critical CMS has factual research on hand.  The decision CMS makes regarding Florida’s waiver and amendment requests is of significant consequence to Medicaid patients and taxpayers across our state,” Bragdon explained in his letter.

The letter highlights the many successes Florida’s Reform Pilot has achieved, including more plan choices for enrolled patients, additional services, better patient health outcomes, higher patient satisfaction, and lower taxpayer costs.

Reform Pilot patients had better health outcomes for 64 percent of measures on a widely-used health care effectiveness benchmarks, HEDIS, compared to patients confined to traditional Medicaid.  In 68 percent of measures, Reform Pilot patients had greater health improvement compared to non-Reform patients.  Reform Pilot patients are also happier with their care and services, with 83 to 100 percent of satisfaction measures among Reform Pilot patients at or above national benchmarks for Medicaid managed care and commercial HMO plans.

“Meaningful health reform accomplishes two essential goals: patient health outcomes must improve, and patients must be satisfied with the care they receive.  The Medicaid Reform Pilot has met and exceeded these goals,” Bragdon said.

Taxpayer savings have spiked as well.  The Reform Pilot has already saved taxpayers an estimated $118 million annually.  If statewide expansion goes into effect, Florida taxpayers could expect savings up to $901 million annually.

“Traditional Medicaid funding consumes almost one-third of Florida’s $69 billion state budget,” Bragdon wrote.  “As Medicaid costs continue to grow faster than general tax revenue, important future investments in education, infrastructure and job creation are put at risk.  Medicaid must be transformed.  Now, the health future of Florida’s Medicaid patients and the fiscal future of Florida taxpayers rest with CMS.”

CLICK HERE to see the letter sent to the Centers for Medicare and Medicaid.

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CONTACT:

Chris Cinquemani, Vice President

239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

Healthier, Happier Patients and a National Model to Cure State Medicaid Crises

NAPLES – Florida’s five-county Medicaid Reform Pilot, passed in 2006, sought to give Medicaid patients greater freedom and control over their health care than the traditional government-designed system allows.  Today, as other states struggle with a Medicaid crisis, Florida’s Reform Pilot is a decided cure.

A report published by the Foundation for Government Accountability (FGA) and the Heritage Foundation shows that through its Reform Pilot—now serving 290,000 patients in Baker, Broward, Clay, Duval and Nassau Counties—Florida improved Medicaid patient health and satisfaction, and saved taxpayers significant sums.

The 22-page report authored by FGA President and Chief Executive Officer Tarren Bragdon, Florida’s Medicaid Reform Shows the Way to Improve Health, Increase Satisfaction, and Control Costs, compares Florida’s Medicaid Reform Pilot to traditional Medicaid and commercial HMOs in several areas, including patient choice, health outcomes, patient satisfaction and taxpayer costs.

“Transforming Medicaid empowers patients with control over their health future.  When the patient is the priority, government and HMO bureaucrats are finally held accountable.  Costs flatten and patient health and satisfaction improves,” Bragdon said.

Unlike traditional Medicaid, with one government-designed plan for all enrollees, Reform Pilot patients can choose among 2, 3 and 11 plans, depending on their county, to find a plan to best meet their unique health needs.  Reform Pilot plans also feature 7 additional services, such as additional hearing and dental benefits, over-the-counter drugs, nutrition therapy and in-home respite care.

Patient health outcomes and patient satisfaction are also greater compared to enrollees confined to traditional Medicaid.

On a national indicator of health outcomes, Reform Pilot counties outperformed non–Reform Pilot counties in 64 percent of measures and exceeded the national average in 53 percent.  For Reform Pilot health maintenance organization (HMO) plans, 83 percent of satisfaction measures met or exceeded the national Medicaid benchmark and national commercial plan benchmarks.

“Medicaid patients are similar to anyone else. Their plan options should reflect their individual needs and situations,” Bragdon explained.  “Florida’s Pilot achieves this compassionate, patient-centered reform and our Medicaid patients are healthier and happier as a result.  The Reform Pilot makes the patient the priority.”

Along with patient health and satisfaction, taxpayer savings have grown as well.  With patients managing more of their own health decisions, the Reform Pilot has already achieved an estimated $118 million in annual savings.  If the federal Centers for Medicare and Medicaid Services permit a planned statewide expansion, taxpayers could save up to $901 million annually.

The FGA report also highlights Florida’s Medicaid Reform Pilot as a national model for other states seeking patient-centered health reform.  If the Reform Pilot experience were replicated nationwide, combined annual Medicaid savings would reach up to $28.6 billion annually.

“Florida’s Medicaid Reform Pilot is patient-centered care at its best.  The Pilot has accomplished the most important goals of health reform—healthier, happier patients at a lower cost,” Bragdon said.  “As other states look to Florida for a cure for their own Medicaid crises, the federal government should recognize the positive outcomes the Pilot has achieved and allow Florida to implement this reform statewide.”

CLICK HERE TO  READ THE REPORT.

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CONTACT:

Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

Download the report: Florida’s Medicaid Reform Shows the Way to Improve Health, Increase Satisfaction, and Control Costs

Background

• Florida passed Medicaid Reform Pilot for 5 counties with bipartisan support in 2006

• Shift heath care from the government-controlled status quo toward patient-centered care

• Goals: greater choice, expanded services, improved access to specialists, higher health outcomes, ability to opt-out for private coverage, & increased patient satisfaction

Greater Choice and Control for Patients

• Increase patient choice by expanding number and types of plans offered

• Patients deserve the power to choose, and the ability to reward good plans

• Reform Pilot patients can choose among 2 and 11 plans, depending on county

• Ability to choose plan that best meets patients’ unique health needs

Lower Costs for Taxpayers

• Per enrollee costs for Reform Pilot counties are flat over last five years

• Reform Pilot has already saved Florida taxpayers $118 million annually

• If implemented statewide, Reform would save Florida taxpayers up to $901 million annually

• Reform Pilot achieves 16.8% savings per person for families and children, and 10.9% savings per person for elderly and disabled compared to estimated Florida averages

The Patient is the Priority

• Reform Pilot plans feature 12 additional services (7 extra offered in one or more plans)

• Access to and satisfaction with specialists for Reform Pilot enrollees at or above national averages for Medicaid and commercial plans

• Reform Pilot patient health outcomes exceed national Medicaid average in 53% of target areas, and near national average in another 15%

• Reform Pilot patients offered over $31 million in financial incentives for better health behavior

• Premiums for Reform Pilot patients are stable and predictable

• Reform Pilot patients report significantly higher rate of satisfaction than traditional Medicaid enrollees and commercial HMO enrollees

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CLICK HERE to download the report.

During its five years of operations, Florida’s Medicaid Reform Pilot has been a decided success. It has improved the health of enrolled patients, achieved high patient satisfaction, and kept cost increases below average, saving Florida up to $118 million annually. Since then, Florida has passed its Statewide Reform, which promises to extend these benefits throughout the state, build on the lessons learned from the pilot program, and save up to $901 million annually. If Florida’s Medicaid Reform Pilot experience were replicated nationwide, Medicaid patient satisfaction would soar, health outcomes would improve, and Medicaid programs could save up to $28.6 billion annually.