Former Deputy Comptroller Billy Hamilton to Testify Before Legislature about Economic Impact of Expanding State Medicaid Program

San Antonio, Texas — Billy Hamilton, the former deputy comptroller for Texas and the author of the Methodist Healthcare Ministries’ (MHM) commissioned report, “Expanding Medicaid in Texas: Smart, Affordable and Fair,” is expected to testify before the Texas House Appropriations Committee in Austin on Friday, March 8, 2013 regarding the potential expansion to the state’s Medicaid program.

Hamilton’s testimony comes on the heels of House Speaker Joe Straus’ (R-San Antonio) plea to fellow Republican lawmakers to come together in order to propose a solution that would be supported by our state leadership.

According to Hamilton, under a moderate enrollment scenario, Texas could experience a $1.8 billion increase in taxes from new federal Medicaid funds from fiscal years 2014 to 2017. Proponents of expanding the state Medicaid program have hailed the economic analysis within the report as the singular and most compelling argument for why Texas should follow suit with the expansion.

Dr. Michael Cline and Dr. Steve Murdock, authors of the MHM-commissioned report, “Estimates of the Impact of the Affordable Care Act on Counties in Texas” will also be present at the hearing to offer lawmakers their perspective on how Texas counties will be impacted by implementation of the Affordable Care Act, which gives states the option of expanding their state Medicaid program.

The hearing will take place just as advocates plan to gather at the Capitol for a legislative briefing hosted by the Center for Public Policy Priorities. Attendees at the briefing will have an opportunity to hear from Dr. Cline and Dr. Murdock as they present findings from their report, as well as Dr. Leighton Ku of George Washington University as he presents findings from the MHM-commissioned report, “The Potential Primary Care Crisis in Texas: A County Based Analysis.”

Each study highlights the impact of implementing the Affordable Care Act at different enrollment scenarios on a county-by-county level, and even addresses the workforce issues that will no doubt become part and parcel of the debate as lawmakers grapple with expanding the state Medicaid program.

For more information about the legislative briefing hosted by the Center for Public Policy Priorities, contact Brian Stephens at stephens@cppp.org. To download the reports by Dr. Cline and Dr. Murdock, Mr. Hamilton, and Dr. Ku visit www.mhm.org.

Moorhead & Moriarty: Important Questions & Answers about Medicaid Expansion

by Bee Moorhead & Kevin C. Moriarty

A rebuttal from the groups that commissioned the Hamilton report on Medicaid expansion; they say the concerns about expansion, elucidated in a recent critique of the report by Sen. Bob Deuell, are unfounded

As representatives of the faith community, we believe that health care is a core value – but we also believe in weighing the facts and making smart policy decisions, so we commissioned a report by universally respected state budget expert Billy Hamilton to find out what the fiscal and economic impacts of Medicaid expansion would be in Texas. Since our report was released, legislators and others have raised important concerns about expanding Medicaid. We believe lawmakers deserve to have their questions and concerns addressed thoroughly as they debate one of the most important legislative decisions Texas has made in decades.

Many of the most common concerns about Medicaid expansion are unfounded.

Fears about the possibility of people shifting from private insurance to Medicaid causing negative effects to the insurance industry, creating a new class of uninsured and causing premiums to increase are unfounded. Dr. Michael Cline and Dr. Steve Murdock with the Hobby Center for the Study of Texas at Rice University have estimated that approximately 1.5 million uninsured individuals will sign up for the ACA subsidized insurance under a moderate enrollment scenario. The Health and Human Services Commission estimates about 10 percent of privately enrolled individuals will shift to Medicaid, although some states have experienced less. In Texas, that would be about 87,000, which the 1.5 million would totally overwhelm. The net effect of the ACA, then, will be a huge boost to the insurance industry. This issue was debated and put to rest during the original debates on passing the ACA. Our report provides a range of enrollment scenarios as well as the data for people to develop their own assumptions about shifting.

Worries that accepting the federal funds will somehow increase the federal deficit or debt are also unfounded. The federal government is not borrowing money to pay for the Medicaid extension to low-income adults or the ACA’s subsidized insurance. The ACA has built-in revenue streams and offsets that will more than pay for expanded Medicaid and subsidized insurance. In fact, it will generate more revenue than it spends; the Congressional Budget Office, the nonpartisan arm of Congress that estimates the fiscal impact of legislation similar to our Texas Legislative Budget Board, estimates that the ACA, including the Medicaid expansion, will shave more than $200 billion off the federal deficits over the next ten years.

To manage anxiety that the federal government will renege on its promise to fund 90 percent of the cost for low-income adults beyond 2020, Texas could include an automatic trigger, such as Arizona is doing. Texas could discontinue the program if Congress reneges on its promise.
Another concern is that the Medicaid system in Texas cannot handle an influx of new patients since only about 59 percent of physicians accept Medicaid patients, according to Community Health Choice (CHC), a managed care organization, that compared Medicaid payments from the Health and Human Services Master File to active physicians licensed by the Texas Medical Board. The ACA, however, recognized this national problem and fully funded a rate increase for primary care services up to the Medicare rate for 2013 and 2014. Extending the rate increase is optional for states, which would continue to receive federal matching funds to help pay for it.

In Texas, the Medicaid reimbursement rate was only 61 percent of the Medicare rate in 2012, according to the Kaiser Family Foundation, close to the national average of 59 percent. Nationally, the average cost of a 30-minute office visit for a new primary care patient was $63.46. In Texas, an increase to the Medicare rate would bring that fee up to $104.03—a substantial improvement.

A recent study conducted by Sandra Decker, an economist with the Centers for Disease Control, and published in Health Affairs, found that 83 percent of physicians nationally accepted Medicare compared to only about 69 percent that accepted Medicaid. She also found that the percent of physicians accepting new Medicaid patients correlated with the amount the state paid Medicaid doctors as a percent of the Medicare rate. Consequently, the rate increase that began in January in Texas should create a substantial increase in the number of physicians accepting new Medicaid patients.

Finally, Texas and other states have been looking for “flexibility” in the Medicaid program, including co-payments and a strong focus on managed care. Recently, the administration released its Final Rule for copayments and increased rates that states may charge for provider visits, including giving states’ the flexibility to charge higher rates to those above the poverty level who use hospitals for non-emergency care. Texas has long been a leader in implementation of Medicaid managed care, which is now available statewide. With the streamlining of eligibility systems that the ACA enacted and the new flexibility in co-payments now afforded the states, Texas no longer has a pressing need for a Medicaid block grant.
On the other hand, there are some very real dangers regarding Medicaid expansion that legislators should attend to promptly.

First, over the next ten years, Texans will be paying into a $100 billion kitty collected by the ACA’s new revenue streams and offsets to extend Medicaid to low-income Texans. If Texas opts out of the extension, then Texans will be effectively donating that $100 billion to the federal government!

If Texas delays the extension a biennium, presumably for time to “fix” Medicaid, then Texans will permanently lose $7.7 billion in federal funds. Texas has a long history of continuing to serve more than 3 million children and adults in its Medicaid program while implementing major reforms and structural changes. There is no reason why the state cannot implement improvements while serving this new population.
At the same time that Texans are paying in to the $100 billion kitty, Texans will continue to pay out the same high state and local costs for this group, who currently seek help in local hospital emergency rooms and community health clinics. The total annual amount of unreimbursed health care costs for local government alone in Texas amounted to about $2.5 billion in 2011 and hospitals shouldered another conservative estimate of $1.8 billion. This estimate includes only uninsured individuals and excludes any unreimbursed costs of Medicaid or other government-sponsored programs.

Although the ACA will relieve some of this burden, since people from 100 percent to 400 percent of the poverty level will be able to obtain subsidized insurance through the insurance exchange, much of it will remain unless the state extends Medicaid to adults below 138 percent of the poverty level.

We estimate that Texans will also need to find an additional $889 million for this next biennium alone to fund the additional children who are currently eligible for Medicaid but not enrolled and who will sign up through the streamlined enrollment process provided through the new federal health insurance exchange. For the 2016-2017 biennium, the total will increase to $1.6 billion.

And, if Texas wants to solve its Medicaid physician shortage, it will need to find yet an additional $161 million for the 2014-2015 biennium to extend the basic primary care services rate increase that the ACA funded for 2013 and 2014, according to HHSC’s July 2012 estimates, and an additional $92 million to extend it to all physicians providing primary care services. Although the extension of the primary care rate increase beyond 2014 is technically optional, the state will need to find the money anyway to ensure enough available physicians to treat the new children materializing in 2014.

Without the new state and local revenue that extending Medicaid would bring, however, Texas will be hard-pressed to find these additional revenues. If Texas opts in, however, then an estimated $500 million in state revenue will flow in for the next biennium and about $1 billion in the following biennium due to the influx of federal funds for the adults. In addition, it will add an estimated $700 million in the next biennium to state revenue and $1.4 billion to local coffers. Since the federal funds will pay 100 percent of the services to adults for the next three years and no less than 90 percent in 2020 and beyond, general revenue that Texas now spends on this population at the state and level would become available. And, local hospitals will no longer have to shoulder the burden of uncompensated costs for this population. In effect, we would be shifting this population from the “Locally Funded Emergency Room Treatment” program to managed care through Medicaid, a far more efficient option.

But most importantly, if Texas opts out, people below the poverty level will have no insurance. Since the ACA assumed that Medicaid would cover them, it does not provide an option for insurance subsidies for this group. If Texas opts in, however, people that do not currently have adequate health care and rely on expensive emergency rooms for sporadic care will have a primary care physician, preventive care and referrals to specialists when necessary—just like people with private insurance enjoy.

As other states, such as Arizona, New Mexico, Ohio and Florida have come to realize, this decision is a no-brainer. Politics need to be set aside, and Texans need to come together to do what is best for Texas: extend Medicaid to low-income adults.

Bee Moorhead is Executive Director of Texas Impact and Kevin C. Moriarty, President & CEO, Methodist Healthcare Ministries of South Texas, Inc.

Copyright March 05, 2013, Harvey Kronberg, www.quorumreport.com, All rights are reserved

Pressure builds on Texas governer to accept Medicaid expansion

Published by the Dallas/Fort Worth Healthcare Daily: Another report has calculated the potential financial cost of Texas foregoing Medicaid expansion. According to the study, prepared by former Texas deputy comptroller Billy Hamilton, the expansion would create about 231,000 jobs by 2016 and ease the financial burden borne by counties, cities and local hospital districts. The study said Medicaid expansion would cut the state’s uninsured rate by 25 percent and provide insurance for up to 2 million people. READ MORE

A Lenton Reflection

In Lent we commemorate the journey of Jesus from Galilee where he spent the great majority of his time in ministry teaching, healing, and forming disciples to Jerusalem the religious center of Jewish life. The journey was a physical one from a place of fisherman to a cosmopolitan city. The physical journey was from 690 feet below sea level in Galilee to 800 feet below sea level in Jericho near the Dead Sea to about 2600 feet above sea level in Jerusalem. It was a physical journey of 94 miles that places physical challenges on people and is through some rugged, isolating terrain where safety can be in jeopardy.

The journey was a spiritual one from itinerant preacher in a far-off region to a challenger of the religious, social and political life of Israel in the center of Israel’s power structure. Would Jesus be one who transforms the fabric of life in Israel with power and what kind of power?

As Jesus in the period before what became Easter and has become Lent for the Christian community went through spiritual and physical transitions, we are in the midst of transitions:

  • Personal – engagements, weddings, expecting babies, raising children, marital troubles, loneliness in relationships, loss of children, parents, grandparents, friends, economic pressures, unknown before us;
  • Work – personal relationships, new ways of doing things, questions about the future, unknown before us; and
  • Societally – social safety net versus can we afford it; conservative versus liberal; big government versus small government; individual rights versus communal rights; safety versus freedom.

Those are huge transitions and issues to deal with. The journey of Lent grounds us in being able to put some perspective as we live with those issues. It invites us to be involved in a process in 6 weeks through which we can physically change some of our world and spiritually prepare ourselves for the next beginning that God has for us.

One of my core beliefs is that God is not the God of endings but the God of beginnings. There is never an ending that happens in life with God that there is not a beginning for which God is preparing us. Lent is a proclamation of that belief. Lent begins with Ash Wednesday where we start the journey remembering who we are…we are dust and to dust we shall return. Our life in this world, in this way, is transitory. Life is always in transition. However, Lent travels to the cross and the tomb where we await the possibility of a transformed beginning…which happens at Easter!! A new beginning for which we have been prepared by our journey from Galilee to Jerusalem, from Ashes to the Light of Resurrection!

–Pastor Mickey

The 23rd Psalm comes from the ancient tradition of Israel and reminds us that in the midst of a particularly significant journey we need to be in the presence of God. The psalm proclaims that God has promised to accompany us on that journey guiding us and keeping us safe. It is a psalm that I invite you to learn by heart and recite daily during this journey of Lent as you and I go with Jesus from Galilee to Jerusalem, from ending to beginning, through transition to transformation.

Dianne Dorsett to join Leadership Texas Class of 2013

Dianne DorsettDianne Dorsett, Board Liaison, has been selected to join an elite network of more than 5,000 women as a member of the Leadership Texas Class of 2013.

“Mrs. Dorsett is one of 92 outstanding women leaders competitively selected from across the state to participate in the longest-running women’s leadership development program in the US. Throughout the year-long program, she will have the opportunity to broaden her perspective on our state by exploring four Texas cities and receiving cutting-edge information from renowned experts, government officials and other leaders to positively inform her work and community for years to come,” said Candace O’Keefe-Mathis, CEO of Women’s Resources. Leadership Texas, now in its 31st consecutive year, is the flagship program of the Texas-based foundation headquartered in Dallas.

Launched in 1983 as the first statewide program for women’s leadership development, Leadership Texas is patterned after, though not affiliated with, the co-educational civic programs that have found success in a number of cities throughout the state and nation. “Our founders decided to create Leadership Texas to help women become better, more informed leaders in our state’s communities, organizations and corporations,” O’Keefe-Mathis added.

The theme for the 2013 program year is ‘The Future of Texas is Now: From Local to Global’ “Participants will visit Dallas, Bryan/College Station, Galveston and Austin where each city’s opportunities and challenges will help to illuminate the participants’ knowledge of our rapidly evolving state across three common themes– the economy, education and the environment,” O’Keefe-Mathis said.

“We consider it a privilege to offer these influential women leaders from a broad diversity of professional and personal backgrounds some new perspectives, opinions and validation on some of the issues, people and places they might not otherwise encounter outside of the program. We recognize that it is necessary for today’s successful leaders to understand the cultural, social and economic shift before us and the programming of Leadership Texas provides opportunities and access to help the women impact the future of our evolving state.”

Dianne has offered her leadership, guidance and vigor to MHM for over 17 years. It is this passion that has helped to drive and mold MHM’s path to success.

We are all so proud of Dianne’s accomplishment, and contribution to the community!

Women’s Resources (WR) announces The Leadership Texas Class of 2013

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92 women competitively selected to explore “The Future of Texas is Now: From Local to Global”

Mrs. Dianne R. Dorsett of Methodist Healthcare Ministries of South Texas, Inc. has been selected to join an elite network of more than 5,000 women as a member of the Leadership Texas Class of 2013.

“Mrs. Dorsett is one of 92 outstanding women leaders competitively selected from across the state to participate in the longest-running women’s leadership development program in the US. Throughout the year-long program, she will have the opportunity to broaden her perspective on our state by exploring four Texas cities and receiving cutting-edge information from renowned experts, government officials and other leaders to positively inform her work and community for years to come,” said Candace O’Keefe-Mathis, CEO of Women’s Resources. Leadership Texas, now in its 31st consecutive year, is the flagship program of the Texas-based foundation headquartered in Dallas.

Launched in 1983 as the first statewide program for women’s leadership development, Leadership Texas is patterned after, though not affiliated with, the co-educational civic programs that have found success in a number of cities throughout the state and nation. “Our founders decided to create Leadership Texas to help women become better, more informed leaders in our state’s communities, organizations and corporations,” O’Keefe-Mathis added.

The theme for the 2013 program year is ‘The Future of Texas is Now: From Local to Global’ “Participants will visit Dallas, Bryan/College Station, Galveston and Austin where each city’s opportunities and challenges will help to illuminate the participants’ knowledge of our rapidly evolving state across three common themes– the economy, education and the environment,” O’Keefe-Mathis said.

“We consider it a privilege to offer these influential women leaders from a broad diversity of professional and personal backgrounds some new perspectives, opinions and validation on some of the issues, people and places they might not otherwise encounter outside of the program. We recognize that it is necessary for today’s successful leaders to understand the cultural, social and economic shift before us and the programming of Leadership Texas provides opportunities and access to help the women impact the future of our evolving state.”

Through the generous contributions of the Leadership Texas Program Partners, the program continues to provide the most up-to-date information on leadership and issues affecting Texas. Corporate Program Partners providing major support for Leadership Texas 2013 include Southwest Airlines, Blue Cross Blue Shield and Texas Instruments.

“Program Partners provide more than financial support for the program; their women leaders also participate in Leadership Texas to build connections for the benefit of the entire state,” O’Keefe-Mathis said.

Women’s Resources

Leadership Texas is a program of Women’s Resources (WR). Established in Austin, Texas, in 1974, Women’s Resources seeks to advance the power of leadership and legacy through programs that connect, inspire, empower and honor women. To extend Women’s Resources’ message of strength and build bridges to and opportunities for women, WR founded Leadership America in 1988 and helped in the creation of complementary women’s programs in California, Illinois, Missouri and North Carolina, among others. WR also established the nation’s first comprehensive women’s history museum, The Women’s Museum: An Institute for the Future, which opened in Dallas, Texas, in association with the Smithsonian Institution in 2000. Since 1996, WR has been offering a series of national retreats for emerging women leaders called Power Pipeline. In 2009, WR launched new globally focused programming under its newly acquired banner, Leadership International, the Sandy Tyler Regional Series and Leadership Short Courses for the 21st Century.

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Jaime Wesoloski

President & Chief Executive Officer

Jaime Wesolowski is the President and Chief Executive Officer at Methodist Healthcare Ministries. A healthcare executive with three decades of leadership experience, Jaime is responsible for the overall governance and direction of Methodist Healthcare Ministries. Jaime earned his Master’s Degree in Healthcare Administration from Xavier University, and his Bachelor’s of Science from Indiana University in Healthcare Administration. As a cancer survivor, Jaime is a staunch supporter of the American Cancer Society. He serves as Chair of the American Cancer Society’s South Texas Area board of directors and he was appointed as Chair to the recently created South Region Advisory Cabinet, covering eight states from Arizona through Alabama. Jaime believes his personal experience as a cancer survivor has given him more defined insight and compassion to the physical, emotional, and spiritual needs of patients and their families.