– Medicaid eligibility is expanded to include adults with income up to 138% FPL; however, the Supreme Court ruling in 2012 essentially made Medicaid expansion optional for states.
– The federal government paid 100% of the cost of the expansion initially; this share phases down to 93% in 2019 and 90% in 2020 and beyond
– 59% of those living in non-expansion states would like to see their state expand Medicaid (Nov 2018)
– Eligible individuals who buy coverage through the Marketplace receive subsidies based on income: premium tax credits for those with income 100-400% FPL; cost-sharing subsidies for those with income 100-250% FPL
– States can also elect to run a subsidized Basic Health Plan for people with income between 133%-200% FPL
– In 2019, there were about 0.9 million people enrolled in the Basic Health Plans in Minnesota (92,561) and New York (790,152)
– All non-grandfathered private group and non-group health plans must extend dependent coverage to adult children up to the age of 26
– Establish new marketplaces where qualified health plans are offered to individuals
– Marketplaces certify that qualified health plans meet all ACA requirements, provide subsidies to eligible individuals, operate a website to facilitate application and comparison of health plans, provide a no-wrong-door application process for individuals to determine their eligibility for financial assistance, and provide in-person consumer assistance through navigators
–67% of Marketplace enrollees will have a choice of three or more insurers in 2020
– 26 insurers are entering state Marketplaces for 2020
– Individual market gross profit margins have been higher, on average, in 2017-2019 than before the ACA was implemented
– 45% say that the health insurance marketplaces are working well in the nation overall, while 47% say they are not working well (November 2019)
– 52% say that the health insurance marketplaces in their state are working well, while 39% say they are not working well. Those in states with state-run marketplaces are more likely to say they are working well than those in states using healthcare.gov (58% vs. 48%) (November 2019)
– All non-grandfathered plans are prohibited from discriminating against individuals based on their health status
– Insurers in the non-group, small group, and large group market must guarantee issue coverage
– Large group, small group, and non-group health plans are prohibited from applying pre-existing condition exclusions
– Insurers in the non-group and small group market may not vary premiums based on health status or gender or any other factor except:
– Premiums can vary by age (by a factor of 3:1), geography, family size, and tobacco use
– Rescission of coverage is prohibited in the non-group, small group, and large group market
– 45% of non-elderly families have at least one adult member with a pre-existing condition
-62% overall (75% of Dems, 63% of Inds, 47% of Reps) do not want to see the Supreme Court overturn the protections for people with pre-existing conditions established by the ACA (November 2019)
– 57% of Americans say someone in their household has a pre-existing health condition (April 2019)
– 57% are “somewhat worried” (18%) or “very worried” (39%) that they or a family member will lose coverage if the Supreme Court overturns ACA’s pre-existing condition protections (April 2019)
– 62% are “very worried” (44%) or “somewhat worried” (18%)” that they or a family member will not be able to afford coverage in the future if the Supreme Court overturns ACA’s pre-existing condition protections (April 2019)
– All non-grandfathered group and non-group plans must cover preventive health services without cost sharing
– Covered services include breast, colon, and cervical cancer screening, pregnancy-related services including breastfeeding equipment rental, contraception, well-child visits, adult and pediatric immunizations, and routine HIV screening. In addition, it was recently recommended that pre-exposure prophylaxis (PREP) to prevent HIV infection be included as well and if finalized, would be offered at no cost
– 12.7 million people were enrolled in individual market plans required to provide free preventive services, as of February 2019
– 17 million enrollees in Medicaid expansion states received coverage for preventive services in 2017
– Prior to the ACA, 1 in 5 women reported that they postponed or went without preventive care due to cost
– The share of reproductive age women with private insurance reporting that their insurance covered the full costs of their prescription contraception rose from 45% in 2013 to 75% in 2017
– All ACA compliant health plans in the individual and small group market must cover 10 categories of essential health benefits (EHB), including hospitalization, outpatient medical care, maternity care, mental health and substance abuse treatment, prescription drugs, habilitative and rehabilitative services, and pediatric dental and vision services
– All group and non-group plans (including non-grandfathered) are prohibited from placing lifetime or annual limits on the dollar value of coverage for essential health benefits
– 153 million people (57% of the U.S. non-elderly population) had employer coverage as of 2019
– 51% of the public say it is “very important” that the part of the ACA that prohibits private health insurance companies from setting a dollar limit on how much they will spend on your coverage each year remains in place if the law is ruled unconstitutional (July 2019)
– All non-grandfathered private health plans must limit cost sharing for essential health benefits covered in network
– The annual maximum for 2020 is $8,150 for an individual; $16,300 for family coverage
– Require all non-grandfathered private plans to pay a minimum share of premium dollars on clinical services and quality
– Insurers must provide rebates to consumers for the amount of the premium spent on clinical services and quality that is less than 85% for plans in the large group market and 80% for plans in the individual and small group markets
– All non-grandfathered health plans must provide a brief, standardized summary of coverage written in plain language
– All non-grandfathered health plans must periodically report transparency data on their operations (e.g., number of claims submitted and denied)
– Requires employers with at least 50 full time workers to provide health benefits or pay a tax penalty
– Employers that impose waiting periods on eligibility for health benefits (e.g., for new hires) must limit such periods to no more than 90 days
– Authorize federal grants for state Consumer Assistance Programs (CAPs) to advocate for people with private coverage.
– Notice of claims denials by non-grandfathered private plans must include information about state CAPs that will help consumers file appeals
– A report on the first year of CAP operations found the programs helped 22,814 individuals successfully challenge their health plan decisions and obtained more than $18 million on behalf of consumers
– States are required to simplify Medicaid and CHIP enrollment processes and coordinate enrollment with state health insurance exchanges
– Expands financial eligibility for 1915(i) home and community-based services (HCBS), creating a new eligibility pathway to allow people not otherwise eligible to access full Medicaid benefits, allows states to target services to specific populations, and expands the services covered
– Creates a new Medicaid state plan option to cover attendant care services and supports with 6% enhanced FMAP
– As of 2017, 8 states elected the option to cover attendant care services. 366,000 individuals received services and $5.8 billion was spent on these services
– Mental health and substance use disorder services must be included in Medicaid Alternative Benefit Packages (ABPs) provided to Medicaid expansion adults and other adults, and the services must be covered at parity with other medical benefits
– Requires states to provide Medicaid to young adults ages 21 through 26 who were formerly in foster care.
– Increase Medicaid drug rebate percentage for most brand name drugs to 23.1% and increase Medicaid rebate for non-innovator multiple source drugs to 13%. Extend drug rebate program to Medicaid MCOs
Gradually close the Medicare Part D coverage gap (“doughnut hole”):
– Phase down the beneficiary coinsurance rate for brand and generic drugs In the Medicare Part D coverage gap from 100% to 25% by 2020
– Require drug manufacturers to provide a 50% discount on the price of brand-name and biologic drugs in the coverage gap
– Reduce the growth rate in the catastrophic coverage threshold amount between 2014 and 2019 to provide additional protection to enrollees with high drug costs
– In 2017, nearly 5 million Part D enrollees without low-income subsidies (LIS) had spending in the coverage gap and received manufacturer discounts averaging $1,184 on brand-name drugs
– Reinstating the coverage gap would increase costs incurred by Part D enrollees who have relatively high drug spending
– Eliminate cost sharing for Medicare covered preventive services. Authorize coverage of annual comprehensive risk assessment for Medicare beneficiaries
– Prohibit MA plans from imposing higher cost-sharing requirements than traditional Medicare for chemotherapy, renal dialysis, skilled nursing care, and other services deemed appropriate by the Secretary of HHS. This prohibition was extended to most Medicare-covered services
– Reduce federal payments to Medicare Advantage plans to bring payments closer to the average Medicare spending for beneficiaries in traditional Medicare
– Provide quality-based bonus payments to Medicare Advantage plans
– Require Medicare Advantage plans to maintain a medical loss ratio of at least 85 percent; the administration extended this requirement to all Part D plans
– 74 percent of Medicare Advantage enrollees were in plans that were eligible for bonus payments in 2019; Bonus payments summed to $6.3 billion in 2018
– Higher Medicare spending would increase Medicare premiums and deductibles for beneficiaries and accelerate the insolvency of the Medicare Hospital Insurance Trust Fund
– Reduce the rate at which Medicare payment levels to hospitals, skilled nursing facilities, hospice and home health providers, and other health care providers are updated annually
– Reduce Medicare Disproportionate Share Hospital (DSH) payments that help to compensate hospitals for providing care to low-income and uninsured patients
– Allow providers organized as Accountable Care Organizations (ACOs) that meet quality thresholds to share in cost savings they achieve for the Medicare Program
– Eliminating the Medicare Shared Savings Program ACOs could affect around 10.5 million Medicare beneficiaries who were attributed to a MSSP ACO, as of 2018
– Higher Medicare spending would increase Medicare premiums and deductibles for beneficiaries and accelerate the insolvency of the Medicare Hospital Insurance Trust Fund
– Freeze threshold for income-related Medicare Part B premiums for 2011 through 2019
– Establish new income-related premium for Part D, with the same thresholds as the Part B income-related premium
– According to Medicare’s actuaries, 3.7 million people paid an income-related Part B premium and 3.0 million paid an income-related Part D premium in 2018