CCH® BENEFITS — 04/04/11

State Health Care Reform Update

from Spencerfs Benefits Reports: For the last few years, states have been leading the way toward more comprehensive health care coverage to ensure that more people have or can obtain health insurance. With the passage of federal health care reform, states will have increasing responsibilities in regard to employer-provided health insurance benefits. Spencerfs Benefits Reports continues to provide regular updates about state health care reform.

California. The UCLA Center for Health Policy Research finds that 4.7 million Californians, including both adults and children, likely will be eligible in 2014 for new coverage options, either the health insurance exchange or Medi-Cal expansion, because of the federal Patient Protection and Affordable Care Act (ACA). For more information, visit http://healthpolicy.ucla.edu/NewsReleaseDetails.aspx?id=76

Colorado. Gov. John Hickenlooper and a bipartisan group of lawmakers on March 21 announced that Colorado will forge ahead with implementing a health care exchange system, as provided by the ACA. The Colorado Health Benefits Exchange (CHBE) proposal would be independent of government, funded by gifts, grants and donations starting with a federal grant. The nine-member CHBe would be a sort of quasi-governmental agency consisting of Colorada residents who have a background in health insurance and small business operations A new ten-member legislative committee would also meet five times a year to review and approve grants and a plan for the exchange. For more information, visit http://www.colorado.gov/cs/Satellite/GovHickenlooper/CBON/1249674240538.

Illinois. The statefs Health Care Reform Implementation Council released it first set of recommendations on Jan. 31, 2011. These include recommendations to operate a state-based health insurance exchange as a quasi-governmental entity led by an appointed board of directors; to authorize state insurance regulators to approve or deny health insurance rate increases, and to require that insurance companies spend at least 80% of premiums on health care for policy-holders. For more information, visit http://www2.illinois.gov/healthcarereform/.

Iowa. Iowa has become the eighth state to request relief from the medical loss ratio (MLR) provision in the ACA). The state has requested a reduction for 2011 in the MLR from 80% to 60%. Maine already has received a waiver to reduce its MLR to 65%. Other states that have requested a waiver are New Hampshire (reduction to 70%); Nevada (72%); Kentucky (65%); Florida (65%); Georgia (65%); and North Dakota (65%). For more information, visit http://cciio.cms.gov/programs/marketreforms/mlr/index.html.

Kansas. Kansas and six other states will share in $241 million in gearly innovatorh grants to help establish Health Insurance Exchanges under the ACA. The seven grantees and amounts are as follows: Kansas Insurance Department, $31,537,465; Maryland Department of Health and Mental Hygiene, $6,227,454; a multi-state consortium involving the University of Massachusetts Medical School, $35,591,333; New York Department of Health, $27,431,432; Oklahoma Health Care Authority, $54,582,269; Oregon Health Authority, $48,096,307; and Wisconsin Department of Health Services, $37,757,266. For more information, visit www.HealthCare.gov/news/factsheets/exchanges02162011a.html.

Maryland. Lt. Gov. Anthony Brown, other state officials and members of Maryland Health Care for All Coalition have begun a campaign to spread the word about tax credits available to small businesses under the ACA. Health officials believe that 66,000 small businesses (80% of the 82,600 small businesses in Maryland) would be eligible for the credit. For more information, visit http://smallbusinesstaxcredits.org/

Vermont. On March 5, the Vermont Agency of Human Services, Department of Vermont Health Access, adopted the gBlueprint for Health Manual,h -a guide for primary care practices, health centers, hospitals, and providers of health services (medical and non-medical)--to implement the Blueprintfs Multi-payer Advanced Primary Care Practice (MAPCP) model The Blueprint for Health is a state led program dedicated to achieving well coordinated and seamless health services, with an emphasis on prevention and wellness. For more information, visit http://hcr.vermont.gov/blueprint_for_health. Vermont also passed on February 17 an Omnibus Appropriations Act that adjusts state insurance rate review to be consistent with the ACA. For more information, visit http://www.leg.state.vt.us/ResearchMain.cfm

Wisconsin. Act No. 2011-10, enacted on March 11, requires the state to study to the feasibility of requiring state employees to receive health care coverage through a health benefits exchange established pursuant to the ACA and to create a health care insurance purchasing pool for all public employees and individuals receiving health care coverage under the statefs Medical Assistance program. For more information, visit http://nxt.legis.state.wi.us/.

Wyoming. WYH50, Health Care Reform and Insurance Exchange, provides for a study to determine whether the state should establish and operate a Wyoming health insurance exchange or participate in a regional exchange. For more information, visit http://legisweb.state.wy.us/. WY SJR 2, Constitutional Amendments and Health Care, proposes to amend the Wyoming Constitution by specifying that no federal or state law shall compel participation in any health care system by any person, employer or health care provider. For more information, visit, http://legisweb.state.wy.us.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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