Dr. Martha Kanter Under Secretary of Education February 14, 2011.
Staff Updates Washington, D.C. Disability Policy Seminar February 14-16, 2011 SESSION I MONDAY,...
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Transcript of Staff Updates Washington, D.C. Disability Policy Seminar February 14-16, 2011 SESSION I MONDAY,...
Staff Updates
Washington, D.C.Disability Policy Seminar February 14-16, 2011
SESSION IMONDAY, 11:00 AMFEBRUARY 14, 2011EMPLOYMENT AND
AFFORDABLE CARE ACT REVIEW
Employment
Too many people with intellectual and developmental disabilities are underemployed, in segregated settings, and earn very little money 424,000 earning sub-minimum wages (GAO) limited exposure to the workforce, reduced expectations,
lack of access to jobs Workforce Investment Act and Vocational
Rehabilitation agencies under-funded and under-trained
Major changes are needed legislatively and administratively to turn the system around
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Employment cont.
Sen. Harkin, HELP Committee Chairman, developing legislation
Recommendations: Need recommendations to made general workforce
programs accessible Incentivize states to change Medicaid and other
systems to embrace “employment first” policies Support model transition services that ensure that
youth transition to good jobs and postsecondary opportunities, not segregated settings
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Health Care Reform: 2 Laws
Patient Protection and Affordable Care Act (P.L. 111-148)
Health Care and Education Affordability Reconciliation Act (P.L. 111-152)
“Affordable Care Act”http://www.heathcare.gov
For health insurance information by state Comprehensive ACA implementation
4Washington, D.C.Disability Policy Seminar February 14-16, 2011
Groundbreaking Legislation
Expand Coverage and Access to Care 32 million uninsured will be covered
New insurance exchange with premium sharing subsidies, and cost sharing caps
Large expansion of Medicaid eligibilitySignificant insurance market reforms
Completes the ADAPrevention, research, Medicare and others Long term services and supports expansions
5Washington, D.C.Disability Policy Seminar February 14-16, 2011
ACA Implementation
Phased in over next several yearsAwaiting regulations and guidance on many
key issuesRegulations arriving at a steady paceStates working on implementing legislationNumerous threats to the ACA
6Washington, D.C.Disability Policy Seminar February 14-16, 2011
Insurance Reforms In Effect Now
Means for plan years beginning on or after September 23, 2010
Eliminates pre-existing condition exclusion for under age 19
Lifetime limits not allowedPhase-in of elimination of annual limitsRescissionsAccess to doctorsEmergency room Appeals
7Washington, D.C.Disability Policy Seminar February 14-16, 2011
Full repeal passed in the House –failed in the Senate
Lawsuits pendingPartial repeal votes expectedIf politically unpopular aspects repeal has cost
implicationsDefunding implementation and specific
programs
Threats to ACA
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Highly politically charged debateOur organizations long term supporters of
health care reform and long term services and supports expansions
Not a partisan choiceRely on credible, non-partisan sources of
information
Political Climate
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Premiums
Secretary can’t set premiumsTransition period until 2014$250 million over 5 years for states to build
capacity for rate reviewMedical Loss Ratio
85% of premiums spent on benefits Hotly debated
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Grandfathered Plans
Grandfathered plans—plans in existence on March 23, 2010
Most health insurance through large employers (100 or more workers) will not see major changes to their coverage
Routine changes allowed: Keeping pace with medical inflation Adding new benefits Modest adjustments to existing benefits Voluntarily providing new consumer protections
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Applies to Grandfathered Plans?
YESPre-existing condition
exclusions (EXCEPT individuals plans)
Lifetime and Annual Limits (EXCEPT individual plans)
RescissionsDependent Care
extension (EXCEPT if other employer-sponsored)
NOAccess to DoctorsEmergency room Appeals changes
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Insurance Reforms in 2014
Can’t consider health status when calculating premiums
Prohibit discrimination based on health status
Eliminate use of annual limits for all Guaranteed issue and renewability
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Individual Responsibility
Tax penalties for no coverage-administered by IRS 2014-- $95 2015--$325 2016-- $695
Percent of household income 1% in 2014, 2% in 2015 2.5% in 2016 and after
Exempts individuals with incomes too low to pay taxes
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Need all people to be covered by insuranceShares the risk for insurersHelps keep premiums lowerGuarantee issue requirements and other
reforms cannot work without greater coverage
Why is this important?
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Temporary Pre-Existing Conditions Plans Now until 2014
Coverage for Dependents (age 26) Effective now
Medicaid Expansion Effective 2014 but states can begin early
Health Insurance Exchanges Effective 2014 –can be state, regional or
run by the federal government
Expanding Coverage
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Medicaid Expansion
Expands Medicaid eligibility to 133 % of Federal Poverty Line (2014) - • approximately $14,600/ individual; • $29,400/family of 4 (2009 FPL Guidelines)
New method of disregards brings it up to 138% of Federal Poverty Level
No asset test for eligibility
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Medicaid Expansion, cont.
People with disabilities likely to benefit People receiving SSDI and in the 2-year
Medicare waiting period People who do not meet Social Security
disability standard and are low income People who meet the disability standard
but income or assets are too high
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Medicaid Expansion, cont.
Federal Share (FMAP):• 100% for 2014 – 2016 (3 years)• Phases down to 90% for 2020 and
subsequent yearsCMS guidance--States can start earlier and
phase it inBy 2019 CBO estimates 16 million new
enrollees Maintenance of effort requirements
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Health Insurance Exchanges (2014)
Provide coverage, increase competition, lower costs to small employers and individuals without access to affordable employer coverage
“Marketplace”: Private insurance plans that meet minimum standards on benefits and cost-sharing set forth in regulations
Multi-state Exchanges run by HHS for states that choose not to operate their own Exchange
Subsidies to low income individuals
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Hospitalization, emergency services, ambulatory (i.e. outpatient) services
Prescription drugs and laboratory services
Rehabilitative and habilitative services and devices
Mental health and substance abuse disorder services including behavioral health treatment
Essential Benefits Package for Exchange Plans
Preventative and wellness services and chronic disease management
Pediatric services including dental and vision care
Maternity and newborn care
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Essential Benefits, cont.
LAW REQUIRES:Appropriate balance among the categoriesCannot discriminate against individuals
because of their age, disability or expected length of life
Must take into account the health care needs of diverse segments of the population including women, children, persons with disabilities and other groups
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Challenges to the Essential Benefits
Comprehensive benefits versus costsWhat do the key terms mean?
What is essential? What is appropriate balance? How should medical necessity be defined?
What coverage limits are allowed? What is the scope of each benefit categoryWhat is covered in a typical employer plan?
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Rehabilitative and Habilitative Services and Devices
Broad category -- everything from therapies to wheelchairs
Medicaid definition of habilitationImportance of acquiring and maintaining skillsNo limitation on scope or settingPowerful opposition to the disability position
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Autism Services
Mental health and substance use disorder services, including behavioral health treatment
Autism Speaks –this includes autism services Primarily concerned about Applied Behavior Analysis
(ABA) State coverage mandates for autism are often broader
and include habilitation May be an issue in states with mandates
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Challenges to the Exchanges
Grants to states to plan the exchangesEnforcement responsibilitiesLevel insurance playing fieldEnsuring accessibilityQualified plans (sufficient providers etc.)Seamless interplay with Medicaid and CHIPHelpful services to employers who use itAdvocates need to be involved
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Impact on Employers
Designed to build on employer-sponsored insurance
Impact varies by the size of the employer
Pay roll tax deduction available for small employers who provide health insurance
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Summary Slide
Grandfathered plansLarge employersPart-time employeesPenalties for unaffordable or non-coverageCredits and subsidies for very small
employersFree choice vouchersFraud provisions
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Disability and aging communities worked together
Goal – Ensure two-pronged inclusion of LTSS in health reform: National LTSS insurance program – avoid
impoverishment Improve Medicaid – eliminate institutional bias
Inclusion of Long Term Services and Supports in Health Care Reform
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Accomplished: ◦ CLASS Act◦ Improvements to Medicaid
Community First Choice Option; Improving existing Section 1915(i) option; New state balancing incentives; Spousal impoverishment protections; Extend Money Follows the Person demonstration; Expand Aging and Disability Resource Centers
Long Term Services and Supports in Health Care Reform
Washington, D.C.Disability Policy Seminar February 14-16, 2011
New national LTSS insurance program Based on voluntary payment of premiums
◦ through employer or directly◦ Nominal premium for full-time students and
people with income below poverty levelVesting after 5 years of premium paymentsWork requirement
Community Living Assistance Services and Supports (CLASS) Act Plan
Washington, D.C.Disability Policy Seminar February 14-16, 2011
No exclusions based on pre-existing conditions
Benefits eligibility is based on functional need ◦ Need for assistance with activities of daily living or
equivalent
CLASS Act Plan, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Cash benefits for maximum consumer and family control ◦ No impact on federal benefits eligibility• SSI and Medicaid
No “means-testing” – income is not considered ◦ No need for lifetime impoverishment ◦ Individual can continue to work
Advocacy and advice/assistance available
CLASS Act Plan, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Separate CLASS Independence Trust Fund Secretary of HHS to develop the Plan Plan can pay for itself AND take pressure off
the Medicaid program Important for future of Medicaid program
CLASS Act Plan, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
The need for change: Institutional Bias within Medicaid
Nursing homes mandatory Community-based services optional or
waiver People with disabilities and their families
do not have an equal choice Long waiting lists for community-based
services and supports
Improving Long Term Services and Supports in Medicaid
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Improving LTSS in Medicaid, cont.
Disability Community Long Term Goal: Enact the Community Choice Act
Would mandate Medicaid community-based attendant services and supports
Too costly and politically impossible to enact a mandate to states
Worked with White House and Congressional Sponsors on a first step in that direction – Community First Choice Option
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• New state Medicaid plan option included in health reform law
• Comprehensive home and community based services for people eligible for an institutional level of care (nursing home, intermediate care facility (ICF), or IMD)
• States receive 6 percent additional federal match for CFC services
• Permanent provision in Medicaid program – does not “sunset”
Community First Choice (CFC) Option
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• Included services and supports:– Assistance with activities of daily living (ADLs)– Assistance with instrumental activities of daily
living– Assistance with health-related tasks– Acquisition, maintenance, and enhancement of
skills necessary for the individual to accomplish the above
– Back-up systems or mechanisms (such as beepers, electronic devices)
– Voluntary training on how to select, manage, and dismiss attendants
CFC Option, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• Manner of service provision:– Hands-on assistance– Supervision– Cueing
• Other permissible services – transition costs (first month’s rent and utility
deposits, bedding, kitchen supplies, etc.) – needs identified in person-centered plan that would
increase independence or substitute for human assistance
CFC Option, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• Eligibility is based on functional need (not age, diagnosis, etc.)
• Allows people with incomes up to 300 percent of the SSI level to be eligible (depending on state rules)
CFC Option, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
States must: – provide services in a home or community setting – provide consumer-controlled services, statewide, in the
most integrated setting appropriate– create a Development and Implementation Council –
majority of members must be people with disabilities, elderly individuals, and their representatives
– establish a comprehensive quality assurance system using feedback from consumers, families, providers
CFC Option, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Available beginning October 1, 2011 Advocates should be working with states now
CFC Option, cont.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Home and Community Based Services (HCBS) State Plan Option (Section 1915(i))
Medicaid 1915(i) Option States can provide services without a waiver States must establish eligibility that is less strict
than for institutional and HCBS waiver services – states serve people who are not eligible for the state’s HCBS waiver
Very few states took up this option to expand community-based services
Washington, D.C.Disability Policy Seminar February 14-16, 2011
ACA improved it to:– Allow states to provide full range of services allowed
in HCBS waiver –including “other services approved by the Secretary”
– Remove the authority for states to cap services, limit services to certain sections of the state, and maintain waiting lists
– Align income eligibility criteria with other HCBS programs – allows people with incomes up to 300 percent of the SSI level to be eligible
Amendments to HCBS Option(Section 1915(i))
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Amendments to HCBS Option(Section 1915(i)), cont.
States may target certain populations in need for 5 years
CMS letter to State Medicaid Directors: August 6, 2010 http://www.cms.gov/smdl/downloads/SMD10015.pdf
Effective Date: October1, 2010
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• Department of Health and Human Services
• CLASS Act Plan– Design/implementation of programs/public education
• Centers for Medicare and Medicaid Services (CMS)
• Community First Choice Option; Section 1915(i); State Rebalancing; Money Follows the Person
– Guidance to states– Funding decisions
• Will need your input and responses to alerts on regulations, etc.
Federal Implementation
Washington, D.C.Disability Policy Seminar February 14-16, 2011
• Implementation of Medicaid Long Term Services and Supports changes
• States have many choices– Community First Choice Option– Section 1915(i) option– Other new provisions
• Work with Governor, State Legislature
State Implementation
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Message to Congress
Full Implementation – No RepealSupport the CLASS program
Oppose repeal Support full implementation of the Communty
First Choice Option and other Medicaid long term services improvements
Washington, D.C.Disability Policy Seminar February 14-16, 2011
SESSION IITUESDAY, 9:00 AM
FEBRUARY 15, 2011BUDGET OVERVIEW, SOCIAL SECURITY,
MEDICAID, HOUSING AND AUTISM
Staff Updates
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Budget and Appropriations process
In general…
President’s Budget – First week of FebruaryBudget Resolution – sets overall blueprint for
spending (March-April)12 Annual Appropriations bills – May – Sept.
Discretionary vs. authorizationOct. 1 New Fiscal Year
However, this year’s a little different…
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Political Climate
Elections – Major Political Shift Over 100 new Members
94 new Representatives – 85 Republican 13 new Senators – 12 Republican
House shift to Republican majority: 242 to 193 Senate – Democrats now have narrow majority: 53 to 47
New House leaders - Speaker John Boehner (OH) Eric Cantor (VA) Majority Leader
Highly partisan, difficult to pass anythingAlready preparing for 2012 presidential elections Need to develop Republican disability champions
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
New Republican Agenda
Smaller, more accountable governmentLower taxesRepeal and Replace “job-killing
health care” lawFiscal responsibility Protecting life, American values, and the
ConstitutionProviding for a robust national defense
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Debt, deficit, global recession, high unemployment, uninsured
Highly partisan e.g. Sens. Coburn (R-OK) and DeMint (R-SC) vow to block all future bills that aren’t “paid for”
Commission on Fiscal Responsibility & Reform: “Moment of Truth”
Republican Study Committee recommendationsPaul Ryan (R-WI), new Budget Chairman- RoadmapNew Appropriations Chairman Harold Rogers (R-
KY) “biggest cuts in our history”
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Budget and Appropriations Context
Fiscal Commission: Moment of Truth
Chairmen Erskine Bowles and former Senator Alan Simpson (11 to 7 vote)
$200 billion in discretionary cutsPlace dual eligibles in Medicaid managed care.
This would save $1 billion by 2015 $260 million cuts in Medicaid administrative costs Place a global cap on all health care spending,
which could include Medicaid block grantsReform or eliminate CLASS ActReduce the Cost of Living Adjustment (COLA) in
Social Security and other cutsWashington, D.C.Disability Policy Seminar February 14-16,
2011
Current Year Appropriations
FY 2011 appropriations not completed. CR until March 4 at level funding.
New overall House cap for HHS released Sets non-security discretionary spending level at
$420 billion, $43 billion less than the current level. Appropriations subcommittees received new
allocationsExpecting $7B cuts to Labor, HHS, ED funding billSpecific cuts to be made public the week of Feb. 14
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
FY 2012 Appropriations
President sends budget request to Congress week of Feb. 14
House Budget Committee plans to cut back to pre-Recovery Act, FY 06 or 08 levels for the next decade
New House budget rules such as Cut-As-You-Go, Budget Chairman alone sets overall budget caps
Attacks on entitlement programs
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Democrats Republicans
Harkin (IA), Chair Inouye (HI) Kohl (WI) Murray (WA) Landrieu (LA) Durbin (IL) Reed (RI) Pryor (AR) Mikulski (MD Brown (OH)
Shelby (AL), Ranking Cochran Hutchison (TX) Alexander (TN) Johnson (WI) Kirk (IL) Graham (SC) Moran (KS)
Senate Appropriations L-HHS-ED Subcommittee
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Republicans Democrats
Rehberg (MT), Chair Lewis (CA) Alexander (LA) Kingston (GA) Granger (TX) Simpson (ID) Flake (AZ) Lummis (WY)
DeLauro (CT), Ranking Lowey (NY) Jackson (IL) Roybal-Allard (CA) Lee (CA)
House Appropriations L-HHS-ED Subcommittee
Washington, D.C.Disability Policy Seminar February 14-16, 2011
What to say on the Hill
Must put these cuts in Human terms! These cuts will do more harm than good!
What will happen if:IDEA, early intervention, or Head start funds
are cut by 20-40 percent or more?Title V Block Grant eliminated?Medicaid block-granted and capped?Health Care reform with Prevention Trust
Funds, Community First Choice, Money Follows the Person, CLASS Act – REPEALED? OR DEFUNDED?
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Combating Autism Act (PL 109-416)
Expanded research and coordination at the National Institutes of Health (NIH)
Increased awareness and surveillance at the Centers for Disease Control (CDC), and
Expanded the interdisciplinary training of health professionals to identify and support children with ASD and their families
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Combating Autism Act Successes
“These collaborative and coordinated efforts have served well to identify promising ASD research areas as well as to pinpoint both best-practices and gaps in ASD research and supports.”
“Recent highlights in ASD research include the development of new diagnostic tools, identification of novel genetic and environmental risk factors, clinical trials of interventions, and measures of the efficacy and cost-effectiveness of evidence-based services for people with ASD.”
Source: Office of Autism Research Coordination, National Institute of Health, Report to Congress on Activities Related to Autism Spectrum Disorders and Other Developmental Disabilities Under the Combating Autism Act of 2006 (FY 2006 – FY2009), December 2010
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Combating Autism Act Successes
But, significant gaps remain in access to evidence-based interventions, education, supported employment, family supports, and transition services across the lifespan
Progress made under CAA in increasing the capacity of professionals and service systems to address these gaps must be sustained and expanded
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Reauthorization of CAA
This law must be reauthorized or it will expire Sept 2011 because of sunset provisions
Former Sen. Dodd (D-CT) introduced a reauthorization bill before he retired
Repeals sunset, demos for services, expands P&A services, and training and technical assistance using the UCEDD network, new NIH Institute
Sen. Menendez (D-NJ) interested in championingReps. Doyle (D-PA) and Smith (R-NJ), Co-chairs of
Autism CaucusPolitical climate is challenging for anything new
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Social Security Is More Than Just a Retirement Program
Social Security - Old Age, Survivors, and Disability Insurance (OASDI) programs established in Title II of the Social Security Act.
Insurance programs – protecting against poverty – in retirement years; when disability may limit the ability to work; and for dependent survivors.
People with disabilities and their families receiving Social Security include:• Disabled workers and their dependents,• Retirees with disabilities,• Disabled dependents of retirees,• Disabled survivors, and• Disabled adult children and disabled widow(er)s.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Social Security Funding
Two Trust Funds Old Age and Survivors Trust Fund Disability Trust Fund
Usually treated as one Trust FundTrust Funds are financed through payroll taxes
– FICA taxesTrust Funds are currently running a planned
$2.6 trillion surplus, rising to $4.2 trillion by end of 2024
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Long Term Solvency
Goal - Trust Fund solvency over the next 75 years
Projected shortfall of less than 1 percent of gross domestic product (GDP)
As a result of the current recession, Social Security’s FICA tax income is down – that is seen as temporary.
After surplus is spent, full scheduled benefits until 2039; 80 percent in 2040; and 76 percent in 2084.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Modest Changes Are Needed
Modest changes now can impact the shortfall.There is no need for major cuts in benefits or
changes in the structure of the program.National Commission on Fiscal Responsibility
and Reform, private commissions, and Members of Congress are calling for major changes in Social Security.
Major cuts will harm people with disabilities and their families and are not needed.
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Some Elements of Reform Proposals
Change formula to reduce benefitsReduce Cost of Living Adjustments (COLAs)Raise the full retirement ageRasie the FICA tax rateRaise the earnings cap on FICA taxesExtend coverage to all government workersCreate private accounts
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Social Security Solvency
Message: Congress should - Ensure solvency through limited or modest
changes which spread the costs widely Prevent depletion of, or privatization of, Trust
Funds Request a beneficiary impact statement on all
proposals
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Improvements to SSI and Social Security Disability Programs
Many areas of Supplemental Security Income (SSI) and Social Security disability programs need improvement, including:
Increase the substantial gainful activity (SGA) levelIncrease the SSI asset limits and income exclusionsEliminate marriage penaltiesEliminate 2-year waiting period for MedicareMessage: Congress needs to make improvements to
thesecritical programs
Washington, D.C.Disability Policy Seminar February 14-16, 2011
Medicaid
Maintenance of Effort on Eligibility in ACA Adults - 1/2014 Children - 9/30/2019 Intended to prevent states from scaling back Cannot impose new paperwork requirements Cannot drop lawfully residing immigrants
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Medicaid MOE
EXCEPTION: states that already cover adults above 133% of poverty can change if state deficits are high
Cannot scale back for people with disabilities or pregnant women
CMS can withhold federal share if states violate
Has worked as intendedGovernors want relief from requirementArizona has requested a waiverDisability Policy Seminar February 14-16, 2011
Washington, D.C.
FMAP
Increased federal match phased outEnds June 30, 2011Vital to preventing deeper cutsShould continue until ACA is fully
implementedPolitically difficult
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Deficit Reduction Threats
President’s National Commission on Fiscal Responsibility and Reform
Basis for many deficit reduction negotiationsProposals for Medicaid
Provider tax Duals in managed care Reduced administrative funding More waivers
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Deficit Reduction Threats Continued
Key Medicare Proposals Raise deductible to $550 for Part A and B combined 20% coinsurance across the board Restrict supplemental policies from covering the first
$500 in co-insurance No specific mention of changes to low income subsidy
programs
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Deficit Reduction Threats Continued
Global budget for total health care spendingEstablish a process to review and limit
spending If spending grows faster than the economy
President and Congress required to take action
Aging population and higher health costs will continue to increase spending
Tremendous pressure to reduce spending
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Global Health Care Spending Cap
Major structural changes would likely resultMedicaid block grantsMedicare premium vouchersEnd to entitlement
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Other Deficit Proposals
“The Commitment to American Prosperity Act” (CAP Act)
Introduced by Senator Bob Corker (R-TN) and Claire McCaskill (D-MO)
Sets a cap on all entitlement and discretionary spending
If exceed cap, triggers automatic spending cuts across all programs
Includes Social Security spending
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Other Deficit Proposals Continued
If cap is exceeded biggest cuts come from Medicaid, Medicare and Social Security
Unlike previous deficit reduction laws no protections for these and other low income programs
Expect increased attention to federal balanced budget proposals
Imbalance in savings from revenue and spending cuts
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Summary
Expect there will be legislation introduced to block grant Medicaid and create vouchers for Medicare
Congress needs to understand the importance of these programs to the lives of people with disabilities
Already disparities in access to health care for people with disabilities
Deep cuts put the health of people with disabilities at risk and jeopardize our community services and supports
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
HOUSING AFFORDABILITY GAP
The affordability gap for housing for people with disabilities has exponentially worsened in recent years.
According to Priced Out in 2008, a report by the Technical Assistance Collaborative, on a national average, over 4 million Americans with disabilities who rely on federal Supplemental Security Income (SSI) of $674 per month would have to pay 112% of their income to rent a modest one-bedroom unit or 99.3% for a smaller efficiency.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
MELVILLE ACT IS A HUGE VICTORY
After many years of effort by the disability community, the Frank Melville Supportive Housing Investment Act was passed by Congress last year and signed by President Obama on January 4th 2011.
The Melville Act is designed to streamline the Section 811 program of the Department of Housing and Urban Development (HUD) to increase the supply of integrated supportive housing for people with disabilities.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
MELVILLE ACT IS A HUGE VICTORY cont.
A great deal of credit goes to many people, including
Republican and Democratic sponsors of the Melville Act :
Congresswoman Judy Biggert (R-IL) & Congressman Christopher Murphy (D-CT)
Senator Mike Johanns (R-NE) & Senator Bob Menendez (D-NJ)
Banking Committee in the last Congress.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
MELVILLE ACT IS HUGE VICTORY contd.
Key Committee leaders:
Congressmen Barney Frank (D-MA) & Spencer Bachhus (R-AL), Chair and Ranking Member of the House Financial Services Committee, and
Senators Chris Dodd (D-CT) & Richard Shelby (R-AL), Chair and Ranking Member of the Senate
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
How the Melville Act Helps
It reforms Section 811 to enable creation of thousands more units of integrated, permanent supportive housing every year.
Section 811 is a Department of Housing and Urban Development (HUD) program that assists the lowest income people with the most significant and long-term disabilities to live in the community by providing affordable housing linked with in-home or community-based services and supports.
Streamlines administrative processes for non-profit housing developers.
Creates incentives for integrated Section 811 units in non-profit owned multi-family rental developments funded by federal Low-Income Housing Tax Credits, HUD HOME funds and bond financing.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
How the Melville Act Helps cont.
Creates a new “Project Based Rental Assistance” (PRAC) on a stand-alone basis to enable state and local governments to integrate supportive housing into larger rental housing developments units. PRAC is essential because it covers operating costs (e.g. insurance, maintenance, etc.) that are not covered by tenant rents.
No more than 25% of the units in any one project can be set aside for people with disabilities
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
SUPPORT HOUSING PROGRAMS
Congress should provide:• $1 billion for the National Affordable Housing Trust
Fund, which would be the first appropriation for this 2008 law – designed to develop 1.5 million new units of rental housing affordable to very low-income and extremely low-income households.
• At least level funding of $300 million for the FY 2011 Section 811 program –to create as many as 3,000 new supportive housing units – which are badly needed by many people with disabilities with very low incomes.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.
Support Section 8 Funding
At a minimum, Congress should ensure full renewal funding for existing Section 8 Housing Choice Vouchers and renew all existing Section 8 Project-Based Contracts in FY 2012 to ensure that all vouchers are renewed and that no tenants are displaced and to protect and preserve this valuable subsidized housing for the lowest income households.
Congress should provide$30 million in new funding for new Housing Choice Vouchers targeted to non-elderly people with disabilities who are institutionalized or at risk of institutionalization.
Disability Policy Seminar February 14-16, 2011
Washington, D.C.