Sustainable Health Care Study

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Sustainable Health Care Study

• Policy Options
• November 29, 2004

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The problem

• July 2004 projections were for break-even in FY
  2005 and a 52.7 million shortfall in FY 2006.
• New projections, based on actual FY 2005 spending
  indicate a 15 to 20 million shortfall in FY
  2005.
• This indicates that the FY 2006 shortfall will be
  60 to 70 million.
• The shortfall will grow by 15 to 20 million per
  year in the future.

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Contributors to the problem

• Declining federal match rate
• Imbalance between revenue and spending growth.

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Actions to Date

• Legislature created the Sustainable Health Care
  Study as part of the FY 2005 Appropriations Bill
• Committee met in September and passed a motion
  calling for policy options to be jointly
  developed by the administration and JFO.

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Policy Options - Overview

• Revenue side
• Increases in existing dedicated taxes
• Increases in existing taxes and increase in GF
  appropriation
• New taxes
• Reduction in spending in other areas and increase
  in GF appropriation to Health Access Trust Fund

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Policy Options - Overview

• Expenditure side
• Eligibility / number of people covered
• Per-person spending
• Utilization
• Price
• Intensity
• Transaction costs
• Administration

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Expenditure Options

• No ranking or endorsement of any options by any
  member of the working group
• As wide a range of options as possible, but not
  exhaustive
• Categories
• Beneficiaries Providers
• Care Management Pharmacy
• Other

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Policy Options

• Proposal
• Direct Savings
• Actual dollar values where possible
• Ranges or categories
• Can not be estimated in some cases
• Offsets
• Who is directly affected
• Other comments

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Questions?