This month, Congress approved a 6-month extension of enhanced federal Medicaid assistance to states. The assistance, known as FMAP, was originally set to end on Dec. 31, 2010, but will now continue at a scaled-back rate through June 30, 2011.

 

However, there’s one catch – states wishing to take advantage of the FMAP extension must write a letter to the Department of Health and Human Services officially requesting the extended assistance. The governors of all states were notified of this requirement in a letter from HHS Secretary Kathleen Sibelius this week. The deadline for submitting requests is Sept. 24, 2010. Without submitting a letter of request, states will not be able to receive the extended Medicaid assistance.

 

Instructions for requesting the funds are available in this Informational Bulletin from the Centers for Medicare and Medicaid Services. You can also read Secretary Sibelius’ letter online. 

 

 

 

The Centers for Medicare and Medicaid Services (CMS) has issued a State Medicaid Directors Letter providing guidance on how states may receive federal matching funds for their role in administering health information technology incentive payments to eligible providers in the Medicaid program. The HITECH Act, which was included in the American Recovery and Reinvestment Act of 2009, provides states a 90% federal match rate for their activities related to overseeing and administering the HIT incentive payments (the incentive payments themselves are 100% federally funded). To receive the 90% match, states must meet certain requirements in the administration and oversight of Medicaid incentive payments. They must also work to encourage the adoption of certified electronic health records (EHR) and promote the electronic exchange of health information. The SMDL includes a list of specific administrative and oversight activities that are eligible for the 90% match and provides criteria for initiatives encouraging the adoption of EHRs.

 

 

 

In 2011, fewer low-income seniors will be automatically switched into new Medicare Part D plans, according to the Centers for Medicare and Medicaid Services. In 2010, 800,000 seniors qualifying for the low-income subsidy (LIS) were automatically moved into new plans to avoid paying a premium. This year, CMS anticipates that 500,000 will be reassigned to new plans. Those who are reassigned will receive more information this year than they have in previous years about how the change will affect their drug coverage. In early November, LIS beneficiaries will receive a statement comparing their prospective zero-premium reassignment plan with their current plan, along with instructions on how to remain in their current plan if they choose. In December, reassigned beneficiaries will receive a second notice identifying which of their prescription drugs are included in their new plan’s formulary, along with instructions on how to appeal or file a grievance.

 

CMS has also announced several other improvements to Part D in 2011. CMS expects the average monthly premium for Part D coverage to rise by only $1 next year, from $29 to $30. In addition, Medicare beneficiaries who reach the coverage gap, or “donut hole,” will receive 50% discounts on brand-name drugs purchased while they are in the donut hole. This change, enacted under the Patient Protection and Affordable Care Act, is a step in the gradual phasing-out of the donut hole by 2020.

 

 

 

The Centers for Medicare and Medicaid Services has announced the appointment of Linda Nablo as Director of the Division of State Children’s Health Insurance at the Center for Medicaid, Survey, and Certification within CMS. Nablo, a board member of the National Association of States United for Aging and Disabilities, has spent her career in state government working to expand access to services for vulnerable populations. As Director of SignUpNow in Virgina, she oversaw efforts to assist communities with enrolling eligible children in Medicaid. She has also worked to promote long-term services and supports for seniors and preventive healthcare for children.

 

 

 

Check out the National Council’s healthcare reform blog for the latest news about reform implementation, along with resources to help you learn about the law and take advantage of its many provisions. New this week on MentalHealthcareReform.org: