Tag: Health Policy

Federal Health Care Policies Putting Financial Strain on Rural Hospitals, Report Shows

New research by the Chartis Center for Rural Health has found that current and pending federal health policies are putting a bigger financial strain on already struggling rural hospitals. 

The report found the percentage of rural and critical access hospitals working at a negative operating margin has increased from 40 to 44 percent. 

The report looked at legislation that the Chartis Center says is hurting rural hospitals. None of the policies they looked at were specifically targeted at rural health care, but the side effect of the policies, including sequestration, is that rural hospitals can expect to lose an additional 12,000 jobs and 550 million dollars in revenue within a year.

The report also looked at the recently signed Tax Cuts and Jobs Act. Researchers say the bill triggered something called Pay As You Go rules. Unless waived by Congress, providers could see a two percent or four percent reduction in Medicare revenue. This would translate into either a $348 million or $697 million loss in revenue for rural providers, depending on the percentage reduction.

 
 

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from the Marshall Health, Charleston Area Medical Center and WVU Medicine.

Report: Proposed Changes to Medicaid Threatens West Virginians

Analysis released this week found West Virginia could be one the most negatively impacted states in the country if Congress passes the House health care bill to replace the Affordable Care Act.  The health policy think tank Kaiser Family Foundation reports reductions in Medicaid or block grant financing would be especially harmful to communities in West Virginia and ten other states.

Congress has been debating the legislation to replace the Affordable Care Act for weeks. In May the House passed a bill called the American Health Care Act. This legislation would, among other things, fundamentally change the structure and funding for Medicaid, including Medicaid expansion.

Right now, Medicaid is a shared state/federal program with no caps on spending. The House bill would do away with that open-ended arrangement and cap federal spending to a set amount based on current state spending patterns. This move would reduce federal spending by about $834 billion from 2017-2026, according to the Congressional Budget Office. As a result, most states would have to make budget decisions about which programs to fund and what to cut.

The Kaiser analysis looked at factors such as whether a state expanded Medicaid, demographics like poverty or age, and state revenue choices for replacing federal funding to determine which states would most likely be impacted. They found that while all states could face challenges making up the funding changes, Alabama, Arizona, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, South Carolina, Texas, and West Virginia would likely be most affected.

Supporters of the House health care bill say the change will give states more flexibility to customize state Medicaid programs and better serve local populations. Critics are concerned the move will save the federal government money, but result in lost coverage and decreased access to care.

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from the Benedum Foundation, Charleston Area Medical Center and WVU Medicine.

Cancer Action Network Urges Governors to Voice Concerns with AHCA

The Cancer Action Network –  the American Cancer Society’s lobbying arm – is urging governors across the country, including West Virginia Gov. Jim Justice, to voice concerns with the House-passed American health Care Act. They released a letter directed to all U.S. governors yesterday.

The group is particularly concerned with the legislation’s proposal to dramatically reduce funding to Medicaid – a move that would disproportionately affect poor states that expanded the program like West Virginia.

West Virginia also has the third highest rate of cancer in the nation – surpassed only by Kentucky and Mississippi. Cancer is a pre-existing condition under the bill and the new healthcare law could result in some cancer survivors being dropped from or refused healthcare coverage.

Specifically, the letter claims the funding proposed in the bill is “completely inadequate to meet the coverage needs of this population.”

The letter finally lists several recommendations for the governors to consider when talking with Congress about health policy reform, including urging them to protect Medicaid, to oppose waiving essential health benefits and to oppose the legislation’s continuous coverage requirements.

In a written statement from his office, Governor Justice said he remains concerned about protecting the state’s elderly and disabled populations and he will review the proposal if the bill becomes law.

During a May press conference West Virginia Department of Health and Human Resources Secretary Bill Crouch did say he supported the legislation’s promise to increase Medicaid flexibility for states.

The AHCA has been approved by the U.S. House of Representatives and is being considered by the U.S. Senate.

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from the Benedum Foundation, Charleston Area Medical Center and WVU Medicine.

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