Opinion

Editorial: Legislators must heed Sec. Kinsley's plea. Expand Medicaid now!

Thursday, Sept. 8, 2022 -- N.C. Secretary of Health and Human Services Kody Kinsley's Sept. 3 letter to North Carolina legislators makes clear the need and the urgency to act before the end of September. The General Assembly, on Sept. 20, must move on Kinsley's urgent request. Pass Medicaid expansion now.

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CBC Editorial: Thursday, Sept. 8, 2022; editorial # 8788
The following is the opinion of Capitol Broadcasting Company

If the General Assembly passes legislation to expand Medicaid by the end of September, the state Department of Health and Human Services will, before the end of the year, get health care services to more than 600,000 North Carolinians who now lack access to critical basic medical care.

In a Sept. 3 letter state Health and Human Services Secretary Kody Kinsley sent to members of the General Assembly, he said “a failure to act will have significant health and financial consequences.” (The full text of Kinsley’s letter appears at the end of this editorial.)
North Carolina has already lost out on billions of federal tax dollars – that have flowed to 38 other states that have expanded Medicaid over the last 13 years. “It is urgent we pass legislation to expand Medicaid and establish the Healthcare Access and Stabilization Program so North Carolina can reap the benefits,” Kinsley said.

He said the state can gain up to $2 billion in additional federal funds if it acts now.

He pleaded with legislators to act with dispatch. “We are ready to move forward with this opportunity to save lives, save rural hospitals, support mental health and bring at least $8 billion (in federal dollars) per year to North Carolina.”

The Health Access and Stabilization Program is federally funded through the Centers for Medicare and Medicaid and provides hospitals with enhanced Medicaid reimbursement so those rates more closely match what commercial health insurers pay and the cost of actually providing care. The aim is to help hospitals – particularly those that aid the most critical and disadvantaged patients -- remain financially viable and able to treat those patients most in need of care.

It provides rural hospitals with about 90% of their unreimbursed cost and would cut the $2.3 billion Medicaid reimbursement gap to $541 million, erasing more than $1.5 billion in financial strain on North Carolina health systems and hospitals.

Medicaid expansion advocates must, immediately, demand the appropriate legislative committees meet to draft the necessary legislation so that when the full General Assembly meets on Tuesday, Sept. 20, it is prepared to discuss and pass the necessary legislation and get it to Gov. Roy Cooper for his signature.

This legislation should be focused on expanding Medicaid and establishing the federally funded Healthcare Access and Stabilization Program in North Carolina. Other issues, such as proposed changes to the state’s medical Certificate of Need program should be handled as a separate matter.

Nothing needs to be injected as an impediment to bringing much-needed access to health care to those 600,000 in North Carolina who most need it.

Kinsley’s letter makes clear the need and the urgency to act.

The General Assembly, on Sept. 20, must move on Secretary Kinsley’s urgent request. Pass Medicaid expansion now.

Here is the text of the Sept. 3, 2022 letter N.C. DHHS Secretary Kody Kinsley sent to members of the General Assembly.

Given the significant strain on our health care system – particularly with regard to mental health – it is urgent we pass legislation to expand Medicaid and establish the Healthcare Access and Stabilization Program (HASP) so North Carolina can reap the benefits. A failure to act in September will have significant health and financial consequences.

1. It will take at least three months after Expansion and HASP are signed before anyone receives coverage or any financial benefits flow to North Carolina. This is due to how HASP payments are made and the time to implement complex system-wide policy, process, and technical changes and train county staff. Once live, North Carolina will draw more than $500 million per month at no cost to North Carolina state taxpayers. Passing legislation in September is likely our last chance to go live in this calendar year.
2. An additional financial benefit to going live by the end of 2022 is at stake. In addition to the increased coverage payments from Expansion and HASP, the federal government will give North Carolina a “signing bonus” of $187.5 million per quarter, over eight quarters, stating with a full quarterly payment when we go live. The state general fund would be receiving three payments totaling $562.5 million if we go live before 2023. This money could be used for mental health, rural health, and other initiatives.
3. If Expansion and HASP are not passed until December, we will not be able to go live until April 2023. This would mean thousands of North Carolinians would lose their health coverage because their temporary Medicaid eligibility would expire with the end of the federal public health emergency before they can get covered under Expansion. This would also cost rural hospitals and other safety net providers significant revenue. Further, the state general fund would receive only one of the bonus payments.

Our team is ready to ensure a smooth and efficient implementation built on the managed care platform championed by the General Assembly. However, this is little more we can do until a law is passed. Our team has been working closely with the federal Centers for Medicare & Medicaid (CMS) and other partners to move as soon as Expansion and HASP become law. Further work, such as updating the eligibility technology system, communicating with Medicaid beneficiaries, and training county social services staff, require certainty.

Thank you for your partnership. We are ready to move forward with this opportunity to save lives, save rural hospitals, support mental health and bring at least $8 billion per year to North Carolina.

Sincerely,
Kody Kinsley, Secretary

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