Legislative Health and Human Services Committee to Hold Hearing on Medicaid Cuts Today

ALBUQUERQUE, NM—The New Mexico Legislative Health and Human Services (LHHS) Committee will hold a hearing today, starting at 12:30 p.m., on the serious cuts the Medicaid program faces in the Human Services Department’s (HSD) Centennial Care 2.0 waiver proposal. The hearing will take place at the Science and Technology Center Rotunda at UNM, 801 University Blvd. SE in Albuquerque, NM.

The proposal eliminates certain coverage and health benefits for low-income patients and imposes new patient fees in the form of co-pays and premiums to children enrolled in the Children’s Health Insurance Program (CHIP), the working disabled, and low-income adults living just above the poverty line.

“Medicaid has worked well for New Mexico. The state should focus on ensuring our families can get the care they need to stay healthy, not cut coverage for the people who can least afford it,” said Abuko D. Estrada, an attorney with the New Mexico Center on Law and Poverty. “At a time when our economy is struggling, these cuts will drive families into further financial hardships and throw away federal funding that helps sustain thousands of jobs.”

Currently for every state dollar New Mexico invests in Medicaid, the state receives four dollars back from the federal government. The Centennial Care 2.0 waiver proposal cuts will result in the loss of federal money for Medicaid that supports over 50,000 jobs and helps drive the New Mexico economy.

Centennial Care 2.0’s most harmful cuts to Medicaid include:

  • Charging low-income patients with new fees in the form of co-pays and premiums for children in CHIP, the working disabled, and low-income adults living just above the poverty line, which could result in thousands of people losing coverage altogether (as studies have shown);
  • Eliminating retroactive coverage protection that pays for Medicaid applicants’ past medical bills, from three months prior to applying for Medicaid, putting New Mexico’s families in severe medical debt and leaving healthcare providers with uncompensated care costs;
  • Ending a transitional Medicaid program that will result in coverage loss for families that have been living in deep poverty, creating financial hardships and interrupting health coverage when they enter new jobs or accept raises that place them just above the eligibility threshold for Medicaid; and
  • Reducing important health benefits for very low-income adults with dependent children, eliminating Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) protections for children who are 19 and 20 year olds, and opening the door for the HSD secretary to make drastic cuts to more benefits in the future.

WHAT:
LHHS Committee Hearing on the Centennial Care 2.0 Waiver Proposal

WHO/WHEN:       
12:30 p.m.
Presentations about Concerns about Medicaid Cuts
Abuko D. Estrada, Attorney, New Mexico Center on Law and Poverty
David Machledt, Ph.D., Senior Policy Analyst, National Health Law Program

2:30 p.m.
Presentation on Medicaid Waiver
HSD Secretary Brent Earnest

4:30 p.m.
Public Comment

WHERE:   
Science and Technology Center Rotunda at UNM
801 University Blvd SE
Albuquerque, NM

Today’s hearing will be the only opportunity for providing comments in Albuquerque. Other public meetings will take place in Santa Fe, Las Cruces, and Las Vegas.

 

Op-Ed: Underfunding Medicaid is a Foolish Decision

shutterstock baby with doctor for website -2015-12-17by Abuko Estrada & Sireesha Manne

Originally published in the Albuquerque Journal, September 26, 2016. https://www.abqjournal.com/852766/underfunding-medicaid-is-a-foolish-decision.html

As taxpayers, we expect that when government spends our money it will be leveraged toward the best investments that provide the most benefits to our state.

Currently, New Mexico receives four dollars in federal funds for every state dollar invested in Medicaid. This money goes directly into patient care and supports over 50,000 mostly private-sector jobs in the state.

Rather than maximizing this $4 to $1 return on investment, New Mexico underfunded the Medicaid budget in the 2016 legislative session.

For fiscal year 2017, New Mexico is losing over $265 million in federal matching funds for Medicaid by failing to come up with $67 million to meet Medicaid’s minimum budget needs. Our health care system is taking a massive financial loss of over $330 million this year — or nearly $1 million a day!

This is a budgeting disaster for New Mexico that is expected to result in thousands of jobs being lost and, worse yet, a reduction in care to patients. Health care had been one of the only growing job sectors in the state because of the expansion of Medicaid that has added over 4,800 jobs in 2014 alone. However, due to budget shortfalls, the state has decided to reduce Medicaid payment levels for hospitals, doctors and other medical practitioners.

In response, health care providers have issued serious warnings that the low Medicaid rates will force them to downsize staff and potentially even close entire facilities.

The decision to cut Medicaid is self-defeating because New Mexico desperately needs jobs and a stronger health care system.

Nearly every county in the state – 32 out of 33 counties – has shortages for primary care, dental care and mental health care. The problems are most severe for patients in rural areas, where over 30 percent of residents live.

A prime example of health care workforce shortages is the closing of the obstetrics department at Alta Vista Regional Hospital in Las Vegas, N.M. Since 2010, three other hospitals have ceased their obstetric services, forcing expectant mothers to travel unreasonable distances for prenatal care.

Medicaid patients face the most serious consequences of these shortages. The Legislative Finance Committee recently found that up to half of providers in some areas in New Mexico are refusing to take new Medicaid patients.

Another report has found that a quarter of Dona Aña County residents needing hospitalization are going to Texas to get services. However, as illustrated in a recent news article, many doctors in Texas now refuse to see these patients because our state’s Medicaid reimbursement rates are too low.

This is just the beginning.

Medicaid provides health care coverage to two out of three children in New Mexico, as well as seniors, people with disabilities and low-income families. However, due to Medicaid budget shortfalls, the state next plans to cut health care benefits and charge higher patient fees.

Studies have shown that these changes are likely to result in massive losses of coverage for low-income families and will prevent patients from accessing needed services, only deepening New Mexico’s health care crisis.

New Mexico needs to responsibly maximize Medicaid matching funds. The first step is to fix the state’s revenue system. New Mexico is losing needed dollars to tax cuts and loopholes created in the last 15 years for large corporations and the highest-income earners, which have not proven to produce jobs or benefit the state.

There are several ways to raise revenues without hurting working families, such as freezing corporate tax rates at their current levels, which are now on par with other states and further reductions are not needed, taxing capital gains and investment income at the same rate as earned income and targeting products that are undertaxed and that are not necessities, such as new vehicles, alcohol and tobacco.

By not acting, New Mexico is losing precious resources that our state needs to spur job growth and support our health care infrastructure. Let’s put our money into our wisest investments – Medicaid is certainly one of the best.

Op-Ed: State’s decision to cut Medicaid is self-defeating

by Abuko Estrada and Sireesha Manne

Originally published September 19, 2016, NMPolitics.net http://nmpolitics.net/index/2016/09/states-decision-to-cut-medicaid-is-self-defeating/

COMMENTARY: As taxpayers, we expect that when government spends our money it will be leveraged toward the best investments that provide the most benefits to our state. Currently, New Mexico receives four dollars in federal funds for every state dollar invested in Medicaid. This money goes directly into patient care and supports over 50,000 jobs in the state, mostly in the private sector.

Rather than maximizing this $4-to-$1 return on investment, New Mexico underfunded the Medicaid budget in the 2016 legislative session.

For fiscal year 2017, New Mexico is losing over $265 million in federal matching funds for Medicaid by failing to come up with $67 million to meet Medicaid’s minimum budget needs. Our health-care system is taking a massive financial loss of over $330 million this year – or nearly $1 million a day!

This is a budgeting disaster for New Mexico that is expected to result in thousands of jobs being lost and, worse yet, a reduction in care to patients. Health care had been one of the only growing job sectors in the state because of the expansion of Medicaid, which added over 4,800 jobs in 2014 alone.

However, due to budget shortfalls, the state has decided to reduce Medicaid payment levels for hospitals, doctors and other medical practitioners. In response, health-care providers have issued serious warnings that the low Medicaid rates will force them to downsize staff and potentially even close entire facilities.

The decision to cut Medicaid is self-defeating because New Mexico desperately needs jobs and a stronger health-care system. Nearly every county in the state – 32 out of 33 counties – have shortages for primary care, dental care, and mental health care. The problems are most severe for patients in rural areas, where over 30 percent of residents live.

A prime example of health-care workforce shortages is the closing of the obstetrics department at Alta Vista Regional Hospital in Las Vegas. Since 2010, three other hospitals have ceased their obstetric services, forcing expectant mothers to travel unreasonable distances for prenatal care.

Medicaid patients face the most serious consequences of these shortages. The Legislative Finance Committee recently found that up to half of providers in some areas in New Mexico are refusing to take new Medicaid patients.

Another report has found that a quarter of Dona Aña County residents needing hospitalization are going to Texas to get services. However, as illustrated in a recent news article, many doctors in Texas are now refusing to see these patients because our state’s Medicaid reimbursement rates are too low.

This is just the beginning. Medicaid provides health-care coverage to two out of three children in New Mexico, as well as seniors, people with disabilities and low-income families. However, due to Medicaid budget shortfalls, the state next plans to cut health-care benefits and charge higher patient fees.

Studies have shown that these changes are likely to result in massive losses of coverage for low-income families and will prevent patients from accessing needed services, only deepening New Mexico’s health-care crisis.

New Mexico needs to responsibly maximize Medicaid matching funds. The first step is to fix the state’s revenue system. New Mexico is losing needed dollars to tax cuts and loopholes created in the last 15 years for large corporations and the highest income earners, which have not proven to produce jobs or benefit the state.

There are several ways to raise revenues without hurting working families, such as freezing corporate tax rates at their current levels, which are now on par with other states and further reductions are not needed; taxing capital gains and investment income at the same rate as earned income; and targeting products that are being under-taxed and that are not necessities, such as new vehicles, alcohol and tobacco.

By not acting, New Mexico is losing precious resources that our state needs to spur job growth and support our health-care infrastructure. Let’s put our money into our wisest investments – Medicaid is certainly one of the best.

Abuko Estrada and Sireesha Manne are attorneys with the New Mexico Center on Law and Poverty.