Current Medicaid cuts not major impact on Mineral Community Hospital

On April 20, the Community Medical Center in Missoula announced the elimination of 16 employees due to state budget cuts at the rate of more than $6 million. The majority of those cuts were to the Medicaid reimbursement rate, which directly impacts hospitals across Montana. Kalispell Regional Healthcare is expected to lose $6.6 million in Medicaid funding this year and Bozeman Health is reporting a $2.6 million cut in reimbursements.

Medicaid is the program which combines federal and state funds to provide coverage to people who can’t afford health insurance or nursing home care. It was expanded in Montana under the Affordable Care Act in 2016.

Budget reductions were passed during the November special session of the Legislature after revenues came in lower than expected and the state had its most expensive fire season in history. This resulted in reductions to the Department of Public Health and Human Services of $49 million general fund dollars.

Ron Gleason, CEO of Mineral Community Hospital (MCH) said those cuts, “really didn’t have a dramatic impact on critical access hospitals (like MCH).” They expect to lose around $10,000 but they are not things they can’t absorb.

“It doesn’t impact our long-term care services which is a very large part of our Medicaid,” he said.

The cuts have a bigger impact on prospective payment hospitals like those in Missoula, Kalispell and Bozeman. A letter was sent to people who utilize Montana healthcare programs earlier this year and it stated changes apply to services for all people and eligibility categories for Montana Medicaid. This includes the Montana Medicaid Health and Economic Livelihood Partnership (HELP) Program that serves the Medicaid Expansion population.

Some of the programs include limitations on the Community First Choice and Personal Assistance Program (CFC/PAS) where cuts began on Feb. 1, 2018. These affected the meal preparation, exercise, and activities of the daily living services. Other cuts affected Adult Dental Services where crowns, bridges, and dentures are no longer covered. Eye exams, youth psychotherapy, mental health and substance abuse programs also will see cuts, as well as Pregnancy Medicaid, Breast and Cervical Cancer, and the Health Improvement Programs. Program cuts will be fully in effect by June of 2019.

More changes could be coming if Montana’s Medicaid expansion is not renewed in next year’s Legislature. This 2-year-old program, which expanded Medicare under the Affordable Care Act currently enrolls over 94,000 Montanans. With this program the federal government will go from paying a 95 percent to a 90 percent contribution and the state will have to absorb the additional five percent.

The cuts to Medicaid Expansion will have a large impact on Mineral County residents, Gleason said. Nearly 300 people utilize those programs and if they aren’t able to keep their health insurance they either won’t seek medical services or the hospital won’t get paid if they do use their services.

One initiative to combat the cuts is a proposal called the Healthy Montana Initiative filed with the secretary of state on Feb. 22 by several health care organizations. The initiative would add a $2 tax onto a pack of cigarettes and would increase other tobacco products by 33 percent of the wholesale price including e-cigarettes and vaping products.

A percentage of the tax revenue would fund some costs for Montana’s current Medicaid program, as well as veterans’ services, smoking prevention and cessation program, and long-term care services for seniors and people with disabilities.

Secretary of State Corey Stapleton, announced a petition to put this initiative on the Nov. 6 ballot must have 25,468 signatures and is due to election administrators by June 22 for certification. Gleason said they are working to get some training for volunteers who want to help with getting petitions signed. People who are interested in helping with this effort can call him at (406) 822-4841.

New revenue from tobacco tax increases is estimated to be $74.3 million per year by 2023 according to the attorney general’s office. However, revenues may decline as fewer people use tobacco. Historically a pack of cigarettes will cost $6.89 in FY 2019 and $7.37 in 2023.

On April 20, the Community Medical Center in Missoula announced the elimination of 16 employees due to state budget cuts at the rate of more than $6 million. The majority of those cuts were to the Medicaid reimbursement rate, which directly impacts hospitals across Montana. Kalispell Regional Healthcare is expected to lose $6.6 million in Medicaid funding this year and Bozeman Health is reporting a $2.6 million cut in reimbursements.

Medicaid is the program which combines federal and state funds to provide coverage to people who can’t afford health insurance or nursing home care. It was expanded in Montana under the Affordable Care Act in 2016.

Budget reductions were passed during the November special session of the Legislature after revenues came in lower than expected and the state had its most expensive fire season in history. This resulted in reductions to the Department of Public Health and Human Services of $49 million general fund dollars.

Ron Gleason, CEO of Mineral Community Hospital (MCH) said those cuts, “really didn’t have a dramatic impact on critical access hospitals (like MCH).” They expect to lose around $10,000 but they are not things they can’t absorb.

“It doesn’t impact our long-term care services which is a very large part of our Medicaid,” he said.

The cuts have a bigger impact on prospective payment hospitals like those in Missoula, Kalispell and Bozeman. A letter was sent to people who utilize Montana healthcare programs earlier this year and it stated changes apply to services for all people and eligibility categories for Montana Medicaid. This includes the Montana Medicaid Health and Economic Livelihood Partnership (HELP) Program that serves the Medicaid Expansion population.

Some of the programs include limitations on the Community First Choice and Personal Assistance Program (CFC/PAS) where cuts began on Feb. 1, 2018. These affected the meal preparation, exercise, and activities of the daily living services. Other cuts affected Adult Dental Services where crowns, bridges, and dentures are no longer covered. Eye exams, youth psychotherapy, mental health and substance abuse programs also will see cuts, as well as Pregnancy Medicaid, Breast and Cervical Cancer, and the Health Improvement Programs. Program cuts will be fully in effect by June of 2019.

More changes could be coming if Montana’s Medicaid expansion is not renewed in next year’s Legislature. This 2-year-old program, which expanded Medicare under the Affordable Care Act currently enrolls over 94,000 Montanans. With this program the federal government will go from paying a 95 percent to a 90 percent contribution and the state will have to absorb the additional five percent.

The cuts to Medicaid Expansion will have a large impact on Mineral County residents, Gleason said. Nearly 300 people utilize those programs and if they aren’t able to keep their health insurance they either won’t seek medical services or the hospital won’t get paid if they do use their services.

One initiative to combat the cuts is a proposal called the Healthy Montana Initiative filed with the secretary of state on Feb. 22 by several health care organizations. The initiative would add a $2 tax onto a pack of cigarettes and would increase other tobacco products by 33 percent of the wholesale price including e-cigarettes and vaping products.

A percentage of the tax revenue would fund some costs for Montana’s current Medicaid program, as well as veterans’ services, smoking prevention and cessation program, and long-term care services for seniors and people with disabilities.

Secretary of State Corey Stapleton, announced a petition to put this initiative on the Nov. 6 ballot must have 25,468 signatures and is due to election administrators by June 22 for certification. Gleason said they are working to get some training for volunteers who want to help with getting petitions signed. People who are interested in helping with this effort can call him at (406) 822-4841.

New revenue from tobacco tax increases is estimated to be $74.3 million per year by 2023 according to the attorney general’s office. However, revenues may decline as fewer people use tobacco. Historically a pack of cigarettes will cost $6.89 in FY 2019 and $7.37 in 2023.