Arizona Gov. Jan Brewer submitted a formal request to CMS to eliminate more than 160,000 people from the Arizona Health Care Cost Containment System, the state's Medicaid program, as part of a larger plan to cut the state's Medicaid costs, according to an Arizona Republic report.
Under the plan, AHCCCS would freeze enrollment for childless adults and parents earning above 75 percent of the federal poverty level to reach the 160,000 people expected to be cut from the program. This plan would gradually reduce its enrollment rather than abruptly ending coverage for 250,000 people as was originally proposed.
Years ago, under a federal waiver, Arizona expanded its Medicaid program beyond federal requirements to include childless adults, who are not usually covered by Medicaid in other states. HHS Sec. Kathleen Sebelius previously ruled Arizona could drop the originally proposed 250,000 recipients because there is currently no federal requirement for states to cover them.
The proposed cuts are part of a larger plan to cut AHCCCS' costs by $500 million. Other provisions in the plan include:
• Cut reimbursement rates for hospitals, physicians and other providers by 5 percent.
• Place new limits on certain benefits.
• Add mandatory co-payments.
• Assess obese beneficiaries and those who smoke with a $50 fee.
• Require re-enrollment every six months, rather than every year.
• Eliminate emergency services funding for people without proof of citizenship.
Read the Arizona Republic report on the Arizona Health Care Cost Containment System.
Read more coverage on AHCCCS:
- HHS Sec. Sebelius Will Allow Arizona to Cut 250K Medicaid Beneficiaries
Under the plan, AHCCCS would freeze enrollment for childless adults and parents earning above 75 percent of the federal poverty level to reach the 160,000 people expected to be cut from the program. This plan would gradually reduce its enrollment rather than abruptly ending coverage for 250,000 people as was originally proposed.
Years ago, under a federal waiver, Arizona expanded its Medicaid program beyond federal requirements to include childless adults, who are not usually covered by Medicaid in other states. HHS Sec. Kathleen Sebelius previously ruled Arizona could drop the originally proposed 250,000 recipients because there is currently no federal requirement for states to cover them.
The proposed cuts are part of a larger plan to cut AHCCCS' costs by $500 million. Other provisions in the plan include:
• Cut reimbursement rates for hospitals, physicians and other providers by 5 percent.
• Place new limits on certain benefits.
• Add mandatory co-payments.
• Assess obese beneficiaries and those who smoke with a $50 fee.
• Require re-enrollment every six months, rather than every year.
• Eliminate emergency services funding for people without proof of citizenship.
Read the Arizona Republic report on the Arizona Health Care Cost Containment System.
Read more coverage on AHCCCS:
- HHS Sec. Sebelius Will Allow Arizona to Cut 250K Medicaid Beneficiaries