Thursday, May 10, 2018

Trump officials draw a red line on state Medicaid cuts

Vox - All

Despite approving work-requirement plans for some states, the Trump administration rejected Kansas’s request to impose lifetime limits on Medicaid eligibility.

The Trump administration has drawn a red line on Medicaid cuts. There are some proposals that the Centers for Medicare and Medicaid Services won’t approve.

In a letter on Monday, CMS Administrator Seema Verma told Kansas officials that her agency would not approve the state’s request to impose lifetime limits, which would have capped a person’s eligibility at three years, after which they could no longer be covered by the program.

Verma noted that the administration had approved proposals by other states to cut off benefits for Medicaid enrollees only if they fail to meet certain work requirements.

”In every case, these incentive structures are designed to engage beneficiaries in ways that promote positive health and well-being,” she wrote, perhaps indicating that cutting off a person’s Medicaid for nothing other than the length of time they had been covered would not meet that standard.

Verma elaborated in a speech Monday to the American Hospital Association: “We seek to create a pathway out of poverty, but we also understand that people’s circumstances change, and we must ensure that our programs are sustainable and available to them when they need and qualify for them.”

The CMS decision to reject Kansas’s waiver is a very big deal: Lifetime limits have not gotten the same amount of attention as work requirements, but they would have signaled an equally important shift in Medicaid, away from an entitlement for all eligible Americans toward a shrinking program actively culling people from the rolls.

Even if work requirements are allowed, it matters that the administration is not going to let states to kick people off Medicaid simply because they have been on the program for a long time.

”I do think it is significant that CMS has decided to say no to one of the pending requests that cut people off of Medicaid,” Joan Alker, executive director at Georgetown University’s Center for Children and Families, told me.

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