Aitkin County
People in Aitkin County pay for care in many ways: Medicaid in many forms, MinnesotaCare, employersponsored and insurance people buy on their own, and Medicare. They face ever-increasing medical bills and premiums, and deductibles and copays that are uncomfortably high. Toss in daily conversations in Washington, D.C., and St. Paul and it’s nearly impossible to keep track of it all. So, we’re trying to show you how it’s all connected to care for Aitkin County residents by laying out some of the upcoming changes and policy conversations.
Data to bring it home
Here you’ll find health insurer data, along with details that are publicly available, and help to make connections about:
- Medicare, it’s changing in two ways. Right now, Medicare is working on major changes to how it pays clinics. And more than 300,000 people across the state will change how they get Medicare between now and 2019 under current law. CSRs remain a news story in Washington and here. These Cost Sharing Reductions lower deductibles and copays for low income people. And in Minnesota, CSRs helped fund MinnesotaCare.
- Medicaid in Minnesota now insures 923,400 people in the state, 178,842 of whom didn’t get it before. Congress continues to talk about both pulling back the Medicaid Expansion, the insurance these people have, and other changes to Medicaid funding. In 2017, about 125,466 people across the state got help to pay premiums from the federal government to pay premiums. The average household saw a discount of $609 each month. Another 109,000 people got help averaging $606 from the state and health insurers through the state’s Premium Subsidy Program.
- About half of the people with health insurance are worried about being able to afford care, reports the Kaiser Family Foundation. We are showing you data about the care people get. Who pays determines how much is paid.
MEDICARE CHANGES FOR PEOPLE, CLINICS
Changes for people. A specific type of Medicare, Medicare Cost, is going away in most counties nationwide as the government restructures Medicare. It effects more than 300,000 people statewide, but Aitkin County is excluded. About 1,844 people (42 percent) in Aitkin County who have Medicare do not have to change.
Changes for clinics. MACRA. MIPs. APM.
New Medicare lingo that describes changes to how Medicare pays clinics. In 2019, Medicare is scheduled to start paying clinics for the care they give, not the process of giving it. Medicare Access and CHIP Reauthorization Act (MACRA) requires the changes. They affect care people get through Medicare Part B, most often received outside a hospital. While the rules aren’t final, physicians, dentists, chiropractors, registered nurses, nurse practitioners, clinical nurse specialists, certified registered nurse anesthetists, physician assistants, physical and speech therapists will get some of their pay the new way.
LOCAL EFFECT OF FEDERAL MEDICAID DECISIONS
Rollback would cut thousands from insurance The Affordable Care Act made Medicaid available to any resident who make less than about $16,400 a year and doesn’t get health insurance through work. Congress continues to talk about changing rules and if that happens Minnesota will decide how to fund this care on its own or drop the people who are enrolled. People get care through Medicaid in one of five ways.
Expansion. Men and women without children, or who had assets that barred previous enrollment. About 738 people, 19 percent, in the Aitkin County area get care this way.
- MSHO & MSC+. Minnesota Senior Health Options and Minnesota Senior Care Plus are for people who are poor, over age 65 and also have Medicare, about 248 people in Aitkin County. Part D & Medicare Supplement Plans (Medigap) are add-ons to Original Medicare and Medicare
Cost Plans. Source: Centers for Medicare and Medicaid Services, July 2017 - SNBC. Special Needs Basic Care. People with disabilities, many of whom also have Medicare, about 189 residents in Aitkin County.
- Children and Families. Women and men with children, about 1,913 in Aitkin County.
- Fee-for-Service. About 715 people in Aitkin County get Medicaid directly from the state. No health plan is involved.
Medicaid funding changes would affect people who are elderly or disabled Although current legislation doesn’t include funding changes like block grants, Minnesotans are especially vulnerable to any federal changes. Our state has a long history of including services not federally required. If the federal government moved to funding Medicaid through a lump sum payment like a block grant, the state would have a lot of decisions to make. One would be cutting care the federal government doesn’t require, such as physical, occupational and speech therapy; case management for seriously and persistently mentally ill persons and for children with serious emotional disturbances; inpatient psychiatric facility services for people under age 22; chiropractic care, hospice care, medical equipment and supplies; and personal care assistants. Much of this care is provided in nursing homes and from personal care attendants though Minnesota Senior Health Options and Special Needs Basic Care. In 2016, for Council member insurers
statewide, people in Children and Family Medicaid coverage had medical bills of $4,823 on average for the year while people enrolled in MSHO, MSC+ or SNBC averaged $20,269 per person for the year.
In addition to rolling back the new people with Medicaid and eliminating optional care, other changes will also be discussed including money the
state gives counties to help pay for services. Source: Minnesota Department of Human Services for calendar year 2015. Statewide Medicaid spending on all who are eligible.
CHANGES TO MINNESOTACARE ADD BUDGET PRESSURES
In most states, stopping federal Cost Sharing Reduction (CSR) payments hits just insurance companies.
Here, CSRs pay for MinnesotaCare. The federal government pays insurance companies CSRs to lower
deductibles or copayments for individuals with yearly income up to $30,150 (250 percent of federal
poverty level. The 2017-2019 state budget spent the “shock absorber” that could help continue to pay
for care for 427 Aitkin County area residents enrolled in MinnesotaCare while other funding options are
considered. As for insurance companies here, CSR payments to help 13,000 households across the state
lower their deductibles and copays for insurance they buy on their own.
PUBLIC PROGRAM BUY-IN
Again in 2018, Gov. Dayton is proposing
people who get their own insurance
should be able to buy from the state.
His proposal created new Silver and
Gold options from the state.
(MinnesotaCare’s current Platinum-plus
option would remain for low income
Minnesotans.) Because government
plans pay doctors, hospitals and clinics
less than private insurance, clinics and
hospitals would get on average about $400 per person less each month for the care they give. The only
savings in the public option is from paying doctors, clinics and hospitals less. Gov. Dayton’s proposal
doesn’t have enough detail yet to compare deductibles, copays, prescription drug costs and other
details to what people buy on their own today.
PEOPLE BUYING THEIR OWN INSURANCE
While fewer than 4 percent of Minnesotans buy health
insurance on their own, those policies have garnered what
feels like 100 percent of the attention of Council staff, health
insurer leadership, policymakers, reporters and others.
In 2017, 265 people Aitkin County got a 25 percent discount
on premiums from the state and that is gone in 2018.
However, the federal government will continue to help pay
premiums. In 2017, about 495 people in Aitkin County got
that help, totaling $723 per household on average.
Reinsurance
One of the biggest influences on 2018 rates is reinsurance. It shares share high medical expenses across
all Minnesotans instead of requiring the small number of people who buy health insurance on their own
to pay those bills. It helped hold premiums on average to 2017 rates.
Rating Area 7
People Moving from
Private Insurance to
Public Programs
Hole* Created in Budget of
Aitkin County Area Hospitals,
Clinics, Others Who Give Care
9,492 $45,561,600
*Based on statewide average of current MinnesotaCare and private insurance
payments. The number will be higher in areas of the state with higher medical
expenses and lower where care isn’t as expensive.
Sources: MN Office of Management & Budget 2017, MNsure
2017 and as of January 2018
Help Paying Premiums in Aitkin County
Aitkin
County
Residents
From Household
Average
265 State, 2017* $879 a month
495 Federal, 2017** $723 a month
*as of September 2017
**as of July 2017
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GETTING AND PAYING FOR CARE
People worry about getting care and paying for it whether they have health insurance or not. MN
Community Measurement publishes reports each year on the care people get and how expensive it is at
medical groups and clinics across the state. You can also see in their reports what government payers
like Medicare and Medicaid pay compared to employers and people who get their own insurance for the
same tests or procedures.
The following data are direct comparisons
about the care people in the Aitkin County area
get, how much is paid and how it changes
depending on who pays.
Total Cost brings together all care
Total Cost of Care shows how a clinic provides
care.
These payments wrap in all care including
doctors; hospital care; prescription drugs; lab
tests and scans; physical therapy and other
services; and mental health care for people with
private insurance.
The average payment for common tests and
procedures. The data below are from people
who get insurance through work or buy it on
their own. It doesn’t include government payments.
Source: MN Community Measurement, 2015
Source: MN Community Measurement, 2015. Data are risk adjusted, setting a “level
playing field” across medical groups. Risk adjustment takes into account factors that
can influence the outcomes of the care, such as demographics (age, gender, etc.) and
a history of medical conditions (diabetes, a high blood pressure, cancers, etc.) This is
done to make sure clinics that see people who are sicker aren’t penalized.
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IT MATTERS WHO PAYS
Right now, more than 4,432 Aitkin County area residents have their care paid by Medicare. Another
3,497 people get their care through Medicaid and MinnesotaCare.
It’s no secret we’re all getting older and many of us have low incomes. And it isn’t a secret policymakers
both in St. Paul and in Washington, D.C., are under tremendous pressure to stop spending so much
money. The two facts clash on health care and it will continue.
Here are examples of how government pays less that private insurers for the same care. Below you’ll see
how the mix of who pays impacts local hospitals.
Source: MN Community Measurement, 2015
A LOCAL LOOK AT WHO IS PAYING
Think about what’s paid. You can easily see changes in
who pays is an important issue for clinics, hospitals and
others who give care. At Riverwood, 59 percent of the
hospital’s revenue comes from Medicare.
As more Minnesotans are 65 and older, the Medicare
share will grow, and the private insurance portion will
shrink. How will organizations like Riverwood and others
manage the decrease in revenue but an increase in
patients and the care they need?
Source: Center for Medicare & Medicaid Services 2016.
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A LOCAL LOOK AT CARE
Like medical bills, care isn’t the same throughout the state. But what is good care? It means, based on
the latest evidence from medical research, you’re getting the types of care that work best. While each
patient is different, research has shown that some types of care tend to get better results than others. It
can take decades from the time medical evidence is proven to work until it becomes common practice in
clinics. MN Community Measurement is accelerating that timeline so Minnesotans get the best care
possible as soon as possible.
Here is a look at teen mental health and colon cancer screening in the Aitkin County area from MN
Community Measurement.
CONTACT
Eileen Smith ● Minnesota Council of Health Plans ● 612-840-4554 ●