State Aging and Disability Policy: 50 years backwards, 50 years forward John Michael Hall, Senior Director of Medicaid Policy & Planning NASUAD 12/11/2013 www.nasuad.org “Quotes—use quotes and other 50 years of over images to create historyfacts of aging more visual interest, pauses and disability policy and color fields.” —Name, title Page 2 1960s—Older Americans Act Page 3 1970s—establishing the aging network Arthur Flemming, Commissioner on Aging • Started congregate meal program – Served 200,000 meals – $100 million program • Formed the Aging Network (AAAs) Page 4 1980s -- Creating the Waiver • Omnibus Reconciliation Act of 1981 created §1915(c) waiver, states were slow to take up the option in part because of the “cold bed” rule. Now, every state has some form of HCBS waiver. • Permits states to provide HCBS to individuals who require the level of care provided in institutional settings. • Most states have several HCBS waivers, different populations • Often administered in different agencies Page 5 1990s—Americans with Disabilities Act Page 6 1990s—Olmstead Decision Page 7 2000s-- Page 8 2011—First Boomer turns 65 2000 2020 Source of charts: U.S. Census Bureau, “65+ in the United States: 2005,” December 2005. 9 Population 60+ National 58,000,000 56,000,000 2005 -2010 54,000,000 15.3% increase 52,000,000 50,000,000 48,000,000 46,000,000 44,000,000 2005 2006 2007 2008 2009 2010 Population 60+ 49,788,075 50,697,360 52,499,373 54,120,116 55,748,172 57,424,771 2010—Affordable Care Act Page 11 HCBS Provisions in the ACA • Balancing Incentive Program (BIP) • Extending Money Follows the Person (MFP) • Consumer First Choice -- §1915(k) • Moving HCBS Into the Mainstream – State Plan Option §1915(i) • Waiver Consolidation • Health Homes What will the next 50 years bring? Page 13 What if funding continues to slide? Page 14 Compare where the beneficiaries are . . . 15 . . . to where the money is: 16 FUNDING FOR SENIORS NOT KEEPING PACE NOW… From 1980 to 2010 60% POPULATION INCREASE ADULTS 65+ 34% FUNDING DECREASE AoA FUNDING Page 17 FUNDING FOR SENIORS NOT KEEPING PACE Current Funding Levels Unable to Meet Increased Need $9.24 $3.85 PER ADULTS 65+ PER ADULTS 65+ 1980 2010 Page 18 FUNDING FOR SENIORS NOT KEEPING PACE 2030 2010 Percent of Seniors Continues to Grow ONE IN EIGHT ADULTS 65+ ONE IN FIVE ADULTS 65+ Page 19 AGING SERVICES UNABLE TO MEET DEMAND 57 MILLION O N LY 11 MILLION SERVED ADULTS 60+ Page 20 AGING SERVICES UNABLE TO MEET DEMAND If these trends continue millions will be eligible, few will be served. 1980 2010 2030 1980 2010 2030 36 57 92 236 155 ??? MILLIONS OF SENIORS MILLIONS OF DOLLARS Page 21 AGING IN PLACE IS COST EFFECTIVE Annual Facility Care Cost $42,600 $66,000 MEDICAID FINANCED NURSING FACILITY PRIVATE PAY ASSISTED LIVING $81,030 PRIVATE PAY NURSING FACILITY Page 22 AGING IN PLACE IS COST EFFECTIVE Annual Facility Care Cost $18,200$20,800 HOMEMAKER & ADULT CARE SERVICES $24,675 HOME & COMMUNITY BASED MEDICAID SERVICES Page 23 OLDER AMERICANS ACT SERVICES HELP SENIORS STAY AT HOME Page 24 Will Aging and Disability Working Together Make a Difference? Page 25 States Restructuring State Aging and Disability Agencies NH VT ME WA MA MT ND MN OR ID NY WI RI MI SD CT WY PA IA NE NV IL DE IN VA WV UT CO CA MO KS NJ OH MD DC KY NC TN AZ OK NM SC AR MS TX AL GA LA FL AK HI States restructuring since 2011 (CT, DE, HI, IA, IN, KS, ME, NC, NH, OH, OR, PA, VT, VA, WA, WY) States with plans for restructuring (CO, DC, LA, NV, WV) States both restructuring since 2011 and with plans (AL, MD, NJ) Factors Driving State Aging and Disability Agency Restructuring Comprehensive vision Consistent policy making Administrative simplification Improved access to services (no wrong door) Accountability Quality management Consolidation of program authority Budget and personnel reductions Preparation for managed long-term services and supports Other Reduction of institutional bias Global budgeting Address functions that present conflict of interest 0 5 Number of States 10 15 20 What changes will MMLTSS have on the network? Page 28 Medicaid Managed LTSS & Medicare-Medicaid Care Coordination Initiatives NH** VT (Current as of 10/3/2013) ME WA* ND MT OR (W)** MN (W)** ID WY MI IA NE NV NY* WI** SD IL* CO KS PARI OH* UT CA* IN** VA* WV OK NM (W) MD NC AR SC MS TX RI CT NJ** DE DC KY MO TN (W) AZ (W) MA* AL GA LA AK FL** HI (W) Medicaid Managed LTSS (MMLTSS) Medicare-Medicaid Coordination Initiative * Source: NASUAD State Medicaid Integration Tracker, September 2013 edition ** Financial Alignment (FA) demonstration proposal approved by CMS Initiatives other than FA demonstration (W) No longer pursuing FA demonstration Both MMLTSS and Medicare-Medicaid Coordination Initiative What impact will the Affordable Care Act have? Page 30 Medicaid Expansion NH VT (Current as of 10/3/2013) WA ME ND MT MN OR ID NY WI MI SD WY IA OH NE NV PARI IL UT IN VA WV CA CO KS NC TN AZ OK NM SC AR MS TX AL GA LA FL AK Expanding Medicaid Likely to Expand HI Alternative Expansion Approved Unlikely to Expand Not Expanding Source: NASUAD Medicaid Expansion Tracker MD DC KY MO RI CT NJ DE MA Other LTSS Activities NH VT (Current as of 10/3/2013) WA ME ND MT MN OR ID NY WI MI SD WY IA OH NE NV IL UT CA PARI IN VA WV CO KS NC TN AZ OK NM SC AR MS TX MD DC KY MO RI CT NJ DE AL GA LA FL AK More than One Activity Balancing Incentive Program Only HI Section 1915(i) State Plan Amendment Only Section 1915(k) Community First Choice Only Health Homes Only Source: NASUAD State Medicaid Integration Tracker, September 2013 edition MA Will we measure Quality? Outcomes? Page 33 If not…boomers don’t wait patiently Page 34 For more information, please visit: www.nasuad.org Or call us at: 202-898-2583