Articles Posted in Medicaid Applications

The New York Medicaid program has been making many headlines in recent months. Implementation of the Affordable Care Act and efforts to control state spending all have significant implications for the program. Interestingly, these developments have opposing outcomes. As the Affordable Care Act provisions are unrolled the program will be expanded, offering services to more New Yorkers. Conversely, the state’s push to control costs and root out fraud limits services in a few ways, sometimes impacting local seniors and their families.

Fraud Repayment From Estate

On the fraud issue, the NY Daily News reported last week on a settlement reached between the Attorney General and the estate of a former nursing home owner.

The Urban Institute recently released a new survey appraising the preparation for Medicaid expansion in many different states as part of the Affordable Care Act (ACA). The analysis discusses how eight individual states, including New York, are changing their programs to accommodate the implementation of the Affordable Care Act. The findings are part of the Robert Wood Johnson Foundation’s State Health Reform Assistance Network tracking program. A full online copy of the survey can be found here.

The study authors note that many states are using Medicaid “managed care” to expand eligibility. For example, as discussed in the report, New York “intends to move non-dual-eligible nursing home patients into managed care.” The goal is to complete the transition by October of this year. New York plans to participate in a special program to help manage care for seniors who are “dual eligible” for both Medicaid and Medicare. This includes many elderly community members. This program is know as the State Demonstrations to Integrate Care for Dual Eligible Individuals.

In addition, as part of the change, New York is switching from a voluntary managed care enrollment to a required one. In the past providers could participate if they chose, but now they cannot. New enrollments requirements mandate managed care participation. Over the long-term, of course, this requirement means that more and more Medicaid participants will be on managed care.

The latest developments with the NY Medicaid program relate to concerns about the performance of the state Office of Medicaid Inspector General (OMIG). The OMIG’s role is to ensure maximum efficiency of the program. Considering the constant chatter about possible program changes in order to save costs, the work of the OMIG is critical for all New York residents who rely on Medicaid assistance in any number of ways.

The OMIG identifies that its goal is “to enhance the integrity of the New York State Medicaid program by preventing and detecting fraudulent, abusive, and wasteful practices within the Medicaid program and recovering improperly expended Medicaid funds while promoting high-quality patient care.”

However, many observers have grown worried that the office is not maximizing its capabilities, allowing unnecessary funds to go out, hurting the overall efficiency of the Medicaid program. Those concerns were likely amplified in recent weeks as information came out regarding the potential abuse of adult day care programs funded by Medicaid. In addition, a congressional panel recently issued sharp criticism of the NY Medicaid program. That panel noted that New York maintains the largest Medicaid program in the country ($56 billion), and that the ballooning costs may be related, in part, to poor investigation of Medicaid fraud and abuse. The federal government pays for a portion of all Medicaid services, and so federal decision-makers can play in role in state Medicaid policy,.

The results of a comprehensive new research effort on Medicaid’s effects on low-income residents was just published in the New England Journal of Medicine. The full summary of the article can be found online here.

As discussed in the New York Times late last week, the project compared individuals who received Medicaid support over a period of two years with those in similar income brackets who were not enrolled in Medicaid. The idea was to compare these groups on a wide range of indicators–financial well-being, physical health, mental health, and more. As such, it provides the most comprehensive understanding yet of how wide-ranging Medicaid changes may impact various community members.

Counterintuitive Results?

Last week we shared information about the revelations in the New York Times that efforts to curb New York Medicaid costs have been less than successful–mostly because of expanded enrollment in certain programs, like senior day care centers. These assistance centers are locations where frail and sometimes vulnerable elderly community members can stay during the day, while other caregivers–usually adult children–are at work. The facilities offer a way for seniors to avoid being forced to move into a long-term care home.

While useful, concerns have mounted regarding the tactics used by the operators of these facilities to increase enrollment. Owners of the adult care facilities are paid based on the number of eligible New York Medicaid recipients who attend. Therefore, it is in the best interest of the operators financially to increase enrollment–and that is exactly what they have been doing. The increase has been so stark, that some worry that the cost-savings intended (by averting expensive nursing home stays) may be illusory.

Temporary Suspension

A New York Times article this week took a look at the consequences of a Medicaid change engineered by Governor Cuomo in the hopes of saving money: switching to “managed-care” for NY Medicaid programs.

The basic idea is straightforward: switch from paying providers a “fee for service” and instead make a specific payment to provide proper care–whatever that care might be. The logic goes that when medical care providers receive a fee for specific actions performed, they are incentivized to provide more services, even if they aren’t needed. By switching to a set payment amount, those providers will be incentivized to simply provide the most efficient care possible. They will also be more competitive, trying to increase quality of care to attract more Medicaid participants.

The Reality

As has been often discussed, in the last two years the New York Medicaid system was rocked by revelations that the federal government overpaid the system billions of dollars over a period of years. The overpayments were caused by billing problems, with state officials submitting reimbursement requests four times higher than allowed for about 1,400 developmentally disabled residents using the state Medicaid system. Over the course of twenty years, those overpayments amounted to as much as $15 billion.

Since the revelations were made, state officials (and all New Yorkers who rely on Medicaid) have been waiting to figure out the consequences. It was initially unclear how much payment would be cut in the future and whether or not the state would have to repay part or all of the overpayments. Obviously, coming up with $15 billion in an incredibly tight budget environment is next impossible, and many worry about service cuts as a result.

Lowered NY Medicaid Payments

As most know, the March 1st “sequester” cut deadline came and went without much serious action by policymakers to avert the automatic cuts. This was not unexpected considering policymakers have been very far off on goals for a compromise and because the $85 billion in first year cuts will not necessarily take effect immediately. The real layoffs and consequences that might be felt by most community members will roll out slowly throughout the year, stalling the public outrage and pushing off the political pressure that might force an ultimate budget agreement.

It is important to clarify that while Medicaid cuts were not part of the sequester, potential changes to Medicaid are very much part of potential compromise that could be reached in the coming weeks and months. For that reason, it is important for all local families who rely in any way on New York Medicaid (or who expect to in the future) to understand how potential changes may alter their options.

Latest GOP Proposal

It is not easy for many local residents to understand all of the ins and out of the Medicaid program. While Medicaid is a critical tool that provides support for local seniors who need long-term care, it can be a whirlwind of stress, anxiety, and frustration when families attempt to navigate the administrative waters and understand what they need to do to join. Making matters worse is that fact that Medicaid qualification is based on income, and so most families are forced to “spend down” assets before receiving aid. Without proper planning, this means that many families are forced to shed most of their assets just to receive the extra care they need–loosing property and savings built up over a lifetime.

This situation seems particularly damaging for certain families, including those with one healthy spouse and the other in need of care. Fortunately, in those situations the option of “spousal refusal” exists. This essentially allows a healthy spouse to divest property from the other, such that the sick spouse qualifies for care without the healthier spouse losing most everything as well.

Eliminating the Refusal?

U.S. News recently published a helpful story that acts as a great, succinct resource for those in the process of helping a senior loved one decide upon a long-term care facility. Seeing a relative–often a parent–face medical decline is always difficult. The process is made much harder when circumstances require the senior to move out of a home and into a skilled nursing facility for extra support and security.

The story explains that the best starting point is, of course, location. The ability for friends and family to visit the senior easily and frequently is critical. Therefore, the search should begin by narrowing down all facilities within a reasonable range of close loved ones. From there, it is important to conduct some online research to evaluate those potential homes on a range of quality factors. You can determine if any facility has a history of poor care, learn about their staffing levels, and otherwise get a feel for the overall services provided by the facility. Some homes are large, while others have far fewer residents. Some facilities have many single rooms, while others have mostly shared rooms. Understanding these differences ahead of time is essentially. U.S. News has their own nursing home ranking which you can view here to help in this online evaluation process.

Those preliminary investigations should allow you to narrow the search even further to a small handful for visits. Site visits are critical because there is no way to get a sense of the home’s on-the-ground feel, status of current residents, and personability of caregivers without actually being there. You should ask any question that comes to mind, including those about daily routines, meal times, entertainment options, number of caregivers, etc. It’s helpful to pay attention to the facility itself. Is cleanliness prioritized? Does the facility seem to be in good shape or are repairs needed? Those sorts of details often reflect the caregivers’ overall commitment to providing top quality service.

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