Trumpcare Pt. 2: Senate’s Proposal Not Any Better For The Future Of Medicaid

Although the American Health Care Act (ACHA) squeaked through the House, there had been a lot of optimism (even from House Republicans) that the Senate version would look entirely different.  Last week, the Senate Republicans unveiled their counterpart to the ACHA, coined the Better Care Reconciliation Act (BCRA), and the future of Medicaid looks bleak.

Rather than get into the nitty gritty of the proposal, I’d rather look at the end result.  By capping the federal government commitment to states to care for the elderly and disabled, there will be huge funding deficits within the individual states.  The deficits will be created because the federal government’s funding to states will be based on either block grants or a per capita cap.  For more details on what that really means, please contact me at jesse@hyneselderlaw.com.

A common misconception about the ACHA and the BCRA is that they will eliminate Medicaid altogether.  Rather, the actual result is that Medicaid will be reshaped.  Even states that offer the most constrained version of Medicaid will face a gap in funding because of uncontrollable factors in aging.

The question that we need to ask ourselves is: how will states make up for these funding gaps?  In my opinion, two of the most likely solutions are a raise in taxes or other budget cuts, or a reduction of Medicaid benefits offered by states that are not required by statute.  Regardless of the route taken by the individual states, it is clear the general public will be the biggest loser.

One such reduction could come in the form of states defunding most home and community based long term care services (HCBS).  By doing this, the destitute would no longer be able to live out their lives in a more comfortable home setting, but rather would be forced to move to an institutional setting.  As someone who has personally worked in a nursing home setting, this can often be an unhealthy atmosphere to spend the last years of our lives.  And we’re talking about the people who helped shape the world that we live in today!

The majority of clients who I help never planned for nor wanted Medicaid.  It has, unfortunately, become a fact of life that because of the ever-increasing costs of health care, either you, a loved one, or someone you know will need Medicaid at some point.

Please call your senators today and urge them to vote NO on the Better Care Reconciliation Act.  You can call the Capitol switchboard at (202) 224-3121, and follow the prompts.

It has become increasingly important that we plan for old age as far in advance as possible.  At Hynes Law Group, we can assist you to navigate the aging process, and create a plan to address you or a loved ones’ concerns through the aging process.  To Schedule a free 15-20 minute consult to determine if Medicaid Planning is appropriate for you or a loved one, please call my office at 908-514-8008.

-Jesse R. Hynes, Esq.