Some major components of
HB 2591/SB 11
as described in a summary prepared by its authors:
Medicaid Reform: The bill authorizes the Kansas Health Policy Authority to seek waivers from the federal government to “modernize” Medicaid by 2013, which also is the sunset date for the health policy authority, according to its enabling legislation.
The recommended waivers are spelled out in nine areas:
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Long-term care
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Children”s health insurance
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The general Medicaid system
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Multi-year block granting
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Waste, fraud and abuse
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Tax credits and vouchers
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Wellness, obesity and smoking
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Recovery payments from workers compensation, estates, etc.
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Medicaid for the uninsured, including block grants for community health clinics and centers, a free-care pool, etc.
Reforms made possible through the waivers would be implemented in a pilot area that would include rural and urban components with an eye toward expanding the pilot statewide by 2013, if it were successful.
The pilot would allow Medicaid users multiple insurance plan choices, health savings accounts, earned income tax credits, long-term care options and “introduce competition and market forces as major factors that lower cost.”
Among the aims is to have insurance policies which would be portable and renewable once a policyholder leaves Medicaid.
The bill would empower the health policy authority to develop premium assistance for low-income families so they can participate in employer-based or commercial health insurance plans and develop “health opportunity accounts” to be used by recipients to defray health-related costs, including co-payments, uncovered expenses, wellness programs and future health insurance costs once the person leaves Medicaid. Incentives would be provided for quitting smoking, losing weight, etc.
The bill authorizes the health policy authority to expand its electronic medical records initiatives for providers and begins an electronic prescription pilot program.
It instructs the health policy authority to develop a plan for long-term care that includes community-based and nursing home options, “market-based and quality-measured” pricing, opportunity accounts, counseling, and incentives for those who buy long-term care insurance.
It would launch a private insurance exchange, but not mandate participation by individuals or companies. Plans offered through the premium assistance program would work through the exchange.
It would authorize the department of commerce to create a two-year program for small and rural businesses to implement cafeteria plans and allow the commerce secretary to make grants or no-interest loans to help launch health associations.
It would provide authority for the insurance commissioner to waive rules and regulations when necessary to maintain affordable individual or group rates or to target groups or areas with high uninsured rates. The commissioner also could explore regional insurance pools.
It would allow creation or use of a current non-profit foundation for health care to be financed with one-time sales of state assets, some premium taxes, or “one-time windfalls.”