NAMD Pens Medicare Part B Letter Urging Congress to Act Now
By - The National Association of Medicaid Directors (NAMD) penned a letter yesterday to various leaders of the Senate Committee on Finance, House Committee on Ways and Means and House Energy and Commerce Committee "respectfully" urging Congress to implement “immediate action” to nullify next year’s impact for states from the pending Medicare Part B premium and deductible increases.
As RevCycleIntelligence.com reported, 70 healthcare organizations also urged Congress via their own letter last week demanding the termination of anticipated Medicare Part B premium increases. If no action is taken, Part B premiums will likely rise to $159 per month for select beneficiaries, according to the Medicare Rights Center. Concurrently, Part B deductibles may increase to $223 for those under Medicare, the organization claims.
Says this week’s letter from Matt Salo, NAMD’s Executive Director, to Congress, federal officials expect an increase climbing up to 52 percent for millions of Medicare enrollees, many of whose premiums are paid for via Medicaid.
“Shifting state resources to accommodate this unprecedented increase will put undue pressure on state Medicaid programs, as well as other state programs and priorities. Further, the timing of the increase – which comes in the middle of most state fiscal years, and in some cases biennial budgets – further exacerbates the challenge for state budgets and Medicaid leadership,” Salo writes.
The letter additionally confirms NAMD’s reservations regarding policy reasoning for granting states responsibility for Medicare’s fiscal solvency through Medicaid.
“States are not in a position to influence Medicare policies or spending in any meaningful way, yet are nonetheless accountable for providing significant contributions to the Medicare trust fund," states Salo. "In circumstances like the ones leading to the 2015 Medicare Trustee Report projections, driven by high Part B spending and federal policy changes beyond state control, Congress should develop a mechanism for keeping the impact on states predictable, reasonable, and sustainable," he adds.
“Requiring the states to subsidize the benefits of 70% of Part B beneficiaries in an environment of ever-increasing Part B spending is not a sustainable long-term solution. Cost savings within the Medicare program itself should be the primary contributor to solving its fiscal troubles, not cross-subsidizations from the Medicaid program,” Salo maintains.
Expert predictions claim the prevention of premium increases is near
According to projections from a Medicare Trustees report via the Centers for Medicare & Medicaid Services (CMS), some beneficiaries will experience a “substantial” increase in monthly Medicare Part B premiums next year. Such will be “due to a hold-harmless provision and to maintain adequate contingency reserves,” says a September issue brief released by the Federal Funds Information for States (FFIS) accompanying NAMD's letter.
Social Security beneficiaries will allegedly experience a 0% cost-of-living adjustment (COLA) next year, says the report. “If this occurs, it would trigger a hold-harmless provision that prevents most Medicare beneficiaries (those that have Medicare Part B premiums deducted from their monthly Social Security benefits) from seeing an increase in their monthly Medicare Part B premiums,” FFIS claims.
