Asset
Transfer Limits Reportedly Part of Finance Committee's Latest Medicaid
Proposal
Last Updated: 10/14/2005Topic: Medicaid
Senate Finance Committee Chair Chuck Grassley (R-Iowa) has presented to Republican committee members a proposal to reduce mandatory health care spending by $12 billion over five years, while making only minor cuts to the Medicaid program. Although this is $2 billion more in cuts than Congress called for, Grassley would reportedly still further tighten Medicaid's asset transfer rules.
According to CQ Today, Grassley is considering a spending package that would achieve most of its savings by shrinking Medicare payments to private insurance plans and home health agencies. For example, $6.8 billion would be saved by eliminating an incentive fund for insurers to participate in the new Medicare prescription drug benefit program. Another $5.4 billion would be saved by giving higher Medicare payments to insurers covering sicker patients and lower payments to insurers that enroll healthier patients.
But among his Medicaid reductions, Grassley would save a projected $1.5 billion to $2 billion by making it more difficult for the elderly to transfer assets and qualify for Medicaid. His proposals would presumably follow the recommendations of the Medicaid Commission, which was established to advise Congress on how to cut $10 billion from Medicaid, as called for in the fiscal year 2006 budget resolution agreement earlier this year. The Commission proposed moving the start date of any penalty period from the date of the transfer to the date of application for Medicaid or the nursing home admission date, whichever is later, and increasing the "lookback" period for all transfers to five years. (The Senate Finance Committee had not replied to inquiries at press time.)
In an October 7 letter to Grassley, AARP CEO William Novelli said that while AARP could accept steps to encourage people to save money for long-term care, changing asset transfer rules could result in the denial of care.
The budget resolution agreement also requires $70 billion in tax cuts.
The House Energy and Commerce Committee also is reportedly considering an adjustment to Medicaid prescription drug payments that is similar to what the Senate Finance Committee is proposing. House leaders delayed the fiscal year 2006 budget reconciliation deadline until October 28 to give authorizing committees time to reach a new target of $50 billion in cuts (up from $35 million) from mandatory programs, including Medicaid. The Senate so far has no plans to amend the budget resolution and is scheduling an October 26 markup by the Senate Budget Committee.
According to the National Senior Citizens Law Center's Oct. 14 Washington Weekly, an unsigned document titled "21st Century Medicaid Reforms" circulating through Capital Hill was identified as the Republicans’ Medicaid-cutting blueprint. Among other provisions, the document proposes to strengthen the penalties for asset transfers and grant states the “flexibility” to narrow the package of Medicaid benefits.
Last Updated: 10/14/2005Topic: Medicaid
Senate Finance Committee Chair Chuck Grassley (R-Iowa) has presented to Republican committee members a proposal to reduce mandatory health care spending by $12 billion over five years, while making only minor cuts to the Medicaid program. Although this is $2 billion more in cuts than Congress called for, Grassley would reportedly still further tighten Medicaid's asset transfer rules.
According to CQ Today, Grassley is considering a spending package that would achieve most of its savings by shrinking Medicare payments to private insurance plans and home health agencies. For example, $6.8 billion would be saved by eliminating an incentive fund for insurers to participate in the new Medicare prescription drug benefit program. Another $5.4 billion would be saved by giving higher Medicare payments to insurers covering sicker patients and lower payments to insurers that enroll healthier patients.
But among his Medicaid reductions, Grassley would save a projected $1.5 billion to $2 billion by making it more difficult for the elderly to transfer assets and qualify for Medicaid. His proposals would presumably follow the recommendations of the Medicaid Commission, which was established to advise Congress on how to cut $10 billion from Medicaid, as called for in the fiscal year 2006 budget resolution agreement earlier this year. The Commission proposed moving the start date of any penalty period from the date of the transfer to the date of application for Medicaid or the nursing home admission date, whichever is later, and increasing the "lookback" period for all transfers to five years. (The Senate Finance Committee had not replied to inquiries at press time.)
In an October 7 letter to Grassley, AARP CEO William Novelli said that while AARP could accept steps to encourage people to save money for long-term care, changing asset transfer rules could result in the denial of care.
The budget resolution agreement also requires $70 billion in tax cuts.
The House Energy and Commerce Committee also is reportedly considering an adjustment to Medicaid prescription drug payments that is similar to what the Senate Finance Committee is proposing. House leaders delayed the fiscal year 2006 budget reconciliation deadline until October 28 to give authorizing committees time to reach a new target of $50 billion in cuts (up from $35 million) from mandatory programs, including Medicaid. The Senate so far has no plans to amend the budget resolution and is scheduling an October 26 markup by the Senate Budget Committee.
According to the National Senior Citizens Law Center's Oct. 14 Washington Weekly, an unsigned document titled "21st Century Medicaid Reforms" circulating through Capital Hill was identified as the Republicans’ Medicaid-cutting blueprint. Among other provisions, the document proposes to strengthen the penalties for asset transfers and grant states the “flexibility” to narrow the package of Medicaid benefits.
