Recently, the Congressional Budget Office (CBO) released an updated analysis of the American Health Care Act (AHCA). As mentioned in my previous health care updates, my staff and I remain plugged into this debate. We will continue to deliver a fact-based analysis of any new information we receive and break down the specific impact it will have for us here in Nevada.
In regards to the AHCA, many Nevadans have raised concerns with certain portions of the bill, so I wanted to take a moment to address some of those concerns. Below is information pulled directly from the CBO’s latest analysis of the AHCA in regards to Nevada’s traditional Medicaid population.
Traditional Medicaid Impact
Those under traditional Medicaid – which in Nevada is about 340,000 people and the bulk share of our Medicaid population – will continue to be able to enroll in Medicaid in perpetuity. As mentioned previously, our review of the current version of the AHCA will make no changes in current enrollee eligibility and will likely increase federal funding to Nevada’s traditional Medicaid program based on Nevada’s historical per capita growth rate, versus the growth rate provided in the AHCA. The CBO agrees with this analysis because it does not estimate an impact on the traditional Medicaid population.
CBO ANALYSIS: The CBO estimates the cost savings from Medicaid to be $834 billion nationwide. It also notes this change is partially due to the new formula used to determine the federal share of Medicaid reimbursement. This formula is referred to as the “per capita cap.”
The good news for Nevada is that the new growth rate formula is higher than Nevada’s average growth rate. This means, Nevada could stand to see an increase in Medicaid reimbursement for the traditional population, but at minimum should be held harmless. Other states that have not managed their Medicaid programs as well as Nevada has will be forced to make up the difference in efficiencies. Additionally, if there is an unexpected surge in cost per capita, like there was in Nevada in 2014, the Federal government will still foot the bill and the State has the flexibility to make up the difference in the next year.
As promised, my staff and I will continue examining all new information related to the AHCA and clarify what it means for folks in Nevada. I ask that you please take a moment to review the CBO’s analysis if you have not already, and let me know what you think through my website. Stay tuned for the next health care update in which we plan to examine: Medicaid expansion. In the coming weeks, we will also be discussing: Community Health Centers, women’s health services, pre-existing conditions, and the single-payer system.
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