Proposed State Medicaid Changes Could Cost State $1.3 Billion
Impacts Children and Parents on HUSKY, and Lawfully Residing Immigrants

NEW BRITAIN (April 30, 2009) – Close examination of the state’s 2010-2011 fiscal year budget proposals reveals that new and increased premiums for HUSKY, Connecticut’s Medicaid program, could cost the state $1.3 billion in new federal Medicaid funding, according to research released Thursday, commissioned by the Connecticut Health Foundation (CT Health).  And thousands of children and adults covered by HUSKY may lose health care. 

Analysis by Jack Hoadley, Ph.D., research professor at the Health Policy Institute, Georgetown University, shows Connecticut would lose the $1.3 billion in matching funds because the federal stimulus law requires maintaining eligibility standards.  “This far exceeds the $21 million in savings projected from new and higher premiums,” notes Hoadley.

New and increased premiums were proposed as a way for the state to save money without cutting back the HUSKY program’s eligibility levels.  Federal guidelines confirm they violate the federal stimulus requirement that states maintain current eligibility standards to receive higher federal Medicaid matching funds.

Hoadley’s research also indicates imposing new and increased Medicaid premiums as part of the 2010-2011 fiscal year budget proposals risks coverage for:

• 8,000 of about 18,000 HUSKY A parents facing new premiums
• 1,600 of about 5,000 HUSKY B children whose premiums could increase
  

“Although we face difficult questions regarding our state budget, policy-makers must base their decisions on sound research and analysis,” says Patricia Baker, CT Health president & CEO.   “This new data reveal areas of concern that should be addressed.”

Other research results show that:

• Enrollment fell when other states increased premiums, resulting in more uninsured.
• Copayments on prescription drugs and other services save money at the expense of increasing costs for families and providers, causing individuals to stop taking medications.
• Some providers, already concerned about low Medicaid payment rates and the administrative hassle of collecting copays, may stop treating Medicaid patients.
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“For families like mine, an increase in copayments could mean the difference between visiting a doctor and dentist or not,” says Evelyn Richardson, a lifelong Hartford resident and mother of seven, three of whom still live at home.  “Without HUSKY, I would be putting the health of my three youngsters at risk,” adds Richardson, whose family deals with severe eczema, asthma and allergies.

In addition, analysis of a proposal to eliminate a state-funded program that provides benefits to immigrants lawfully residing in the U.S. for less than five years indicates:

• Nearly 6,000 lawfully residing immigrants in Connecticut could lose their health benefits.
• Lawfully residing immigrants who lose state-funded health benefits will become uninsured and many health needs will go unmet. 
• When those without coverage seek emergency care, costs will be higher and the state will be responsible for a substantial share of those costs.

For a complete analysis of the proposed Medicaid changes, see CT Health’s two policy briefs (Proposed Medicaid Cost Sharing: Evaluating the Impact; Consequences of Eliminating Health Benefits for Lawfully Residing Immigrants) on www.cthealth.org.

The Connecticut Health Foundation is the state’s largest independent health philanthropy dedicated to improving lives by changing health systems.  Since it was established in July 1999, the foundation has supported innovative grant-making, public health policy research, technical assistance and convening to achieve its mission – to improve the health of the people of Connecticut.  

Over the past nine years, CT Health has awarded 476 grants totaling more than $38 million in 44 cities and towns throughout the state in three priority areas:

• Improving access to children’s mental health services
• Reducing racial and ethnic health disparities
• Expanding access to and use of children’s oral health services

For more information about the foundation, please contact Communications Officer Maryland Grier at maryland@cthealth.org or 860.224.2200, ext. 32.