6 States, D.C. Extending Medicaid Pay Raise Next Year To Primary Care Doctors
By Phil Galewitz
July 31st, 2014, 5:00 AM - Kaiser Health News
Just six states and the District of Columbia will use their own money in 2015
to sustain the federal Medicaid pay raise to primary care doctors, which was a
key provision of the Affordable Care Act intended to make sure millions of
low-income people enrolling in the expanding insurance program have access to a
physician.
Interestingly, two of the states extending the pay raise are Alabama and
Mississippi — neither of which expanded Medicaid under the health law. The other
states extending the pay raise next year are Colorado, New Mexico, Iowa and
Maryland, according to interviews with state officials and the American Medical
Association. Those four states expanded their Medicaid eligibility to cover
everyone with incomes less than 138 percent of the federal poverty level, or
about $15,900 for an individual.
Alaska and North Dakota paid primary care doctors in Medicaid the higher
rates even before the health lawfs provision took effect in 2013.
The other 42 states will let the Medicaid pay rates revert back to their 2012
levels.
Under
the law, Medicaid fees for primary care increased in 2013 and 2014 to the
same amount paid under Medicare. While Medicaid fees vary by state, the change
meant an average 73 percent pay increase nationally, according to a 2012
study by the Kaiser Family Foundation and the Urban Institute. (Kaiser
Health News is an editorially independent program of the foundation.)
Nationally, itfs unclear whether
the higher fees attracted more doctors into Medicaid or made doctors more
willing to treat more Medicaid patients. The Obama administration is not
collecting any data to show the impact of the higher fees, said a spokeswoman
for the Centers for Medicare & Medicaid Services. State Medicaid officials
also have not studied the impact.
For years, some states have struggled to attract doctors to Medicaid, largely
because of their low pay. About 69 percent of doctors nationally accept new
Medicaid patients, but the rate varies widely across the country, according to a study published in 2012 in the journal
Health Affairs. New Jersey had the nationfs lowest rate at 40 percent, while
Wyoming had the highest, at 99 percent, according to a survey of doctors by the
U.S. Centers for Disease Control and Prevention.
Physician groups, while pleased with the extra funding, have said for years
that the two-year cap would limit its impact on persuading more doctors to treat
Medicaid patients. Still, they worry about what happens when the
short-lived pay raise goes away in most states.
gYes, the money has made a difference,h said James Perrin, president of the
American Academy of Pediatrics. gAnecdotally we are hearing about more doctors
seeing more Medicaid patients and using extra money to add staff.h
The academy was hoping Congress would extend
federal funding because it is difficult for most states to come up with extra
money. But therefs no sign a divided Congress will do that.
The health law pay raise was slated to cost the federal government $11
billion, according to the Congressional Budget Office.
The Florida Medical Association this week came out in favor of the state
expanding Medicaid, but only if the state comes up with $451 million to extend
the primary care pay raise. The extension would maintain the 50 percent increase
in pay to Floridafs primary care doctors.
The Mississippi State Medical Association, which represents physicians, said
legislative support was strong for expanding the pay hike even despite
opposition to Obamacare among state leaders. gEven though the money was tied to
Obamacare, it did help out the state because of the need to help primary care
physicians,h said Blake Bell, a lobbyist for the association. He said the
state estimates the annual cost to continuing the 10 percent pay raise to
primary doctors to be about $12 million.
gThis does help to incentivize our physicians to continue taking Medicaid
patients because these are uncertain waters for physicians right now,h Bell
said.
In Alabama, 90 percent of all Medicaid reimbursements go to only 22 percent
of the statefs primary care physicians. In lobbying for the continued pay
rates, the Alabama Medical Association focused on how the state will need more
primary care physicians participating in the program, said Mark Jackson, the
associationfs executive director. gItfs been our goal for a while to get those
rates up c and this wasnft discussed as being part of Obamacare but rather in
terms of getting people better access to care.h
The legislature this year approved $32 million in funding to extend the
nearly 30 percent pay raise to its primary care doctors in 2015. It was the
first across the board pay raise to primary care physicians in nearly 20
years. More than 3,000 physicians will benefit.
gIt was a simple decision,h said Don Williamson, Alabamafs state health
officer who oversees Medicaid. gIf we let those higher rates expire, our primary
care would unravel and this money would keep things in place.h
Joan Alker, executive director for the Georgetown University Center for
Children and Families, said she was surprised some states that did not expand
Medicaid were extending the pay raise. gIt suggests that states like
Alabama and Mississippi recognize Medicaidfs importance in their health care
systems despite their refusal so far to expand coverage to those falling into
the coverage gap,h she said.