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In this Issue:

1. SCI Releases Issue Brief on State Reinsurance Efforts
2. Premium Assistance Toolbox Available Online
3. SCI/HCFO Cyber Seminar on Consumer-Driven Care Available Online
4. Rhode Island's RIte Care Celebrates 10-years
5. HRSA Awards Next Round of State Planning Grants
6. Pennsylvania Program's Waiting List Hits All-Time High
7. Kaiser Releases Employer Health Benefits Survey
8. Coming Soon
9. Reports of Interest


1. SCI Releases Issue Brief on State Reinsurance Efforts

A new SCI issue brief examines the role of reinsurance in states’ efforts to expand health insurance coverage. Written by SCI Senior Consultant Deborah Chollet, Ph.D., the brief describes the lessons and experiences of several states that have recently implemented reinsurance programs.

States had generally abandoned reinsurance in the early 1990s, when discussions about national health insurance began. Now, however, many states have revisited the concept. Arizona, Connecticut, Idaho, Massachusetts, New Mexico, and New York use reinsurance to support small-group coverage, improve individual access to coverage, or subsidize health insurance for small groups or low-income workers.


2. Premium Assistance Toolbox Available Online

SCI, in coordination with the National Academy for State Health Policy (NASHP) and the Centers for Medicare and Medicaid Services (CMS), has recently released the Premium Assistance Toolbox. The toolbox is intended to assist states in improving their existing premium assistance programs, planning and implementing new programs, and evaluating whether the model would work in their state.

The toolbox highlights strategies and processes used by states with experience operating premium assistance programs. As of February 2004, 14 states are operating these programs, and at least 10 others are at various points in the planning process. Toolbox resources include state examples, links to articles, reports, data sources or sources of expertise, and other tools created to answer key questions that a state may want to consider when designing a premium assistance program.


3. SCI/HCFO Cyber Seminar on Consumer-Driven Care Available Online

In September, The Robert Wood Johnson Foundation's State Coverage Initiatives (SCI) and Changes in Health Care Financing and Organization (HCFO) programs hosted an interactive Cyber seminar to share updated research on consumer-driven health plans (CDHPs) and explore the policy implications of such plans. The complete archived seminar can be accessed online.

The seminar also featured the release of two important resources: an SCI Issue Brief, Health Savings Accounts: Issues and Implementation Decisions for States and the August 2004 Health Services Research special issue, "Consumer-Driven Health Care- Beyond Rhetoric with Research and Experience."


4. Rhode Island’s RIte Care Celebrates 10 Years

RIte Care—Rhode Island’s Medicaid managed care program—turns 10 this year, and the program’s administrators don’t want to miss the opportunity to celebrate. Since October 2001, the Rhode Island Department of Human Services has been working to expand health insurance coverage through an SCI demonstration grant.

RIte Care has contributed to the decline in uninsured children and adults in Rhode Island, which continues to have one of the lowest rates of uncovered individuals in the nation. In addition, children enrolled in RIte Care have immunization rates that are comparable to those of other children in the state. A recent study also indicated that lead screening rates for RIte Care children were 88 percent, compared to national Medicaid screening rates of 15 to 20 percent.

RIte Care’s success is based on partnerships among health plans, community advocates, and the state’s governor and legislature. RIte Care has partnered with researchers at Brown University and Rhode Island’s Department of Health to measure and analyze Medicaid data for program management and also to look at trends in health outcomes. A new resource that lists all of Rhode Island’s reports and publications can be found at ritecareresearch.org.


5. HRSA Awards Next Round of State Planning Grants

The Health Resources and Services Administration’s (HRSA) State Planning Grant (SPG) Program has awarded 35 new grants for Fiscal Year 2004. The program supports states in their efforts to develop plans for providing affordable health insurance coverage to their citizens.

Of the 35 grants, nine were given to states and territories that had not previously received SPG funds, including American Samoa, Guam, Kentucky, Louisiana, Michigan, North Carolina, Pennsylvania, Puerto Rico, and Tennessee. In addition, nine grants are supporting the design and planning for a pilot project to expand coverage; and 17 were awarded as continuation grants to states that needed additional resources to expand on the activities they had initiated with previous grant funds. The full list of grantees will be available shortly on the HRSA SPG Web site.

AcademyHealth—the national program office for the SCI program—is under contract with HRSA to provide technical assistance to awardees as they move forward with their research. The Robert Wood Johnson Foundation's State Health Access and Data Assistance Center (SHADAC) at the University of Minnesota is also giving data assistance to grantee states.


6. Pennsylvania Program’s Waiting List Hits All-Time High

The number of people on the waiting list for Pennsylvania's adultBasic coverage program for low-income adults reached 100,000 in July, and is currently at 97,000. Financed with the state's portion of the national tobacco settlement fund, adultBasic is available to residents between the ages of 19 and 64 who have not had health care coverage, including Medicaid, for more than 90 days and who have incomes at or below 100 percent of the federal poverty level.

By paying a $30 monthly premium, beneficiaries have access to a benefit package that covers hospital care, doctor visits, and lab work; however, it does not cover prescription drugs. The future of adultBasic may be in jeopardy because the tobacco settlement fund will be reduced by $12 million next year. To learn more about adultBasic and other public programs with streamlined benefit packages, please read the July 2004 SCI Issue Brief Limited Benefit Policies: Public and Private-Sector Experiences. To further explore how states are being affected by limited benefit packages, see slides from SCI's summer workshop.


7. Kaiser Releases Employer Health Benefits Survey

The Kaiser Family Foundation and the Health Research and Educational Trust recently released their 2004 Annual Employer Health Benefits Survey, an in-depth look at trends in health insurance costs and coverage in the workplace.

The survey showed that private health insurance premiums rose 11.2 percent in 2004. Although this rate of increase is less than last year’s (13.9 percent), 2004 marks the fourth consecutive year of double-digit growth in premiums. The 2004 rise is about five times the rate of inflation (2.3 percent) and workers’ earnings (2.2 percent).

The survey, which was conducted between January and May, included 3,017 randomly selected public and private firms with three or more employees. In addition to documenting premium changes, the survey describes employer cost-sharing mechanisms, including those related to prescription drugs and hospital care, workers’ contribution to the cost of coverage, the types of insurance that employers are offering, and the prevalence of consumer-directed health plans.


8. Coming Soon

Upcoming SCI Products

Check in with statecoverage.net for updates on SCI's latest publications. We have several in the pipeline, including:

  • A “Profile in Coverage” with Healthy New York (Q & A with Governor Pataki and Commissioner Serio);
  • An issue brief on lessons learned from the Communities in Charge program (SCI collaboration with Terry Stoller, project director, Communities in Charge);
  • State of the States 2005, SCI’s annual report summarizing state coverage expansion efforts during the previous year.

Coming Soon from AcademyHealth

“Paying for Performance,” a free Web Conference conducted by AHRQ’s Knowledge Transfer team housed at AcademyHealth, will be held on Thursday, October 21, 2004, at 3:00-4:30 p.m. Eastern Time. This event will explore the emerging evidence base for quality-based purchasing and the utility of this knowledge for implementing quality-based purchasing programs. This is the first in a series titled "Buy-Right for Healthcare Quality: the Evidence Base and Practical Tools." For more information, visit academyhealth.org/ahrq/valuepurchasing.


9. Reports of Interest

The following are the most recently released reports on coverage, most of which are additions to SCI's database of state reports.

Beneath the surface: Barriers Threaten to Slow Progress on Expanding Health Coverage of Children and Families
The Henry J. Kaiser Family Foundation
October 2004

The Continuing Medicaid Budget Challenge: State Medicaid Spending Growth and Cost Containment in Fiscal Years 2004 and 2005
The Henry J. Kaiser Family Foundation
October 2004

Wages, Health Benefits, and Workers’ Benefits
The Commonwealth Fund
October 2004

A Brief Update on State Fiscal Conditions and the Effects of Federal Policies on State Budgets
Center on Budget and Policy Priorities
September 2004

The Chronic Problem of Declining Health Coverage
Economic Policy Institute
September 2004

Medicaid and Other Public Programs for Low-Income Childless Adults: An Overview of Coverage in Eight States
The Henry J. Kaiser Family Foundation
August 2004

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