How Will the Proposed Cuts Hurt Illinois Residents on Medicare and Medicaid?
FamiliesUSA, a national health care consumer advocacy group, has provided a summary of the impact of the proposed cuts to Medicaid. Among the provisions outlined, Avisery is particularly concerned about how the following changes will impact the dually eligible population in Illinois:
Moratorium on the 2023 “Streamlining Medicare Savings Program Eligibility Determination and Enrollment” final rule: Despite its name, the Medicare Savings Program is a Medicaid program that provides critical financial assistance so individuals with low income can enroll in Medicare. Reports indicate that close to half of Illinois residents who are eligible for MSP are not enrolled. Halting enforcement of this rule means states will no longer be required to adopt strategies to make it easier for dually eligible individuals to get the Medicare coverage they are eligible for.
Shifting costs to state budgets: The proposed changes to Medicaid will reduce the amount of federal dollars going to the states, shifting the costs of running the program to the state level while at the same time limiting options states have to raise additional revenue. Analysts estimate Illinois could lose as much as $3 Billion in Medicaid funding, forcing the program to make tough decisions about how to save money. These losses would likely lead to the reduction or elimination of critically important Medicaid services that are not mandated by law, but which Illinois currently chooses to offer Medicaid customers. Indeed, research shows that during previous periods of financial distress, states lowered support for older and disabled adults. Limiting optional services such as dental, vision, and home and community-based services as an alternative to nursing home settings will lower the quality of life for the dually eligible population.
Impact of cuts on unpaid family caregivers: Data show that most adults under 65 on Medicaid are already working. Among the proposed changes to Medicaid in the bill include provisions to deny Medicaid coverage to individuals who reduce work hours or leave the work force to help care for a loved one at home. Unpaid family caregivers not only bear substantial financial burdens associated with the care they provide, but in fact their willingness to sacrifice to keep their loved ones at home saves state dollars by avoiding more expensive nursing home care that Medicaid is required to cover. These job loss penalties will limit unpaid caregivers from helping to keep their loved ones healthy at home
Automatic cuts to Medicare: Tuesday evening, the Congressional Budget Office released an analysis showing that the increase in the federal deficit that would result from the proposed budget provisions could trigger automatic cuts to Medicare totaling roughly $490 Billion over the ten year period. This is due to current regulations that require deficits to be offset with cuts across a number of federal agencies.
Your elected representatives need to hear from you that these Medicaid cuts will harm our vulnerable older and disabled adults and the family members that care for them.
