Sandwich Generation News Volume XI Number 1

For people sandwiched between aging parents and growing children

Provided by Lidke & Associates, Inc., 10 Inverness Dr E, Ste 110, Englewood, CO 80112-5611

Colorado Medicaid Changes will Impact All of Us

This January (2001) Colorado State legislators began considering massive cuts in Medicaid payments to hospitals, HMOs and care providers to comply with voter-mandated spending caps. The health care industry is calling the more than $20 million in spending cuts "draconian" and calling on Gov. Bill Owens to push for an overhaul of the program, which pays 280,000 low-income Coloradans' medical bills and is funded jointly by federal and state tax dollars. The major concern is that the cuts in funding will mean cuts in services to those most in need.

Among the cuts proposed by the State Department of Health Care Policy and Finance, the agency that administers Colorado's Medicaid program, are $19 million in hospital reimbursements, $2.8 million in HMO payments and $1million in wages for nurse practitioners and physician's assistants. State officials also have proposed more stringent screening of disabled Medicaid applicants and beneficiaries. They say this will save $7 million by keeping ineligible residents off the entitlement program's rolls. The State Health Department is considering asking the legislature for authority to put liens on the homes of deceased nursing home residents whose care was paid for by State Medicaid dollars. Right now, homes in Colorado are exempt from Medicaid asset tests. Department officials admit the proposed changes are a tough pill to swallow but say their hands are tied by State budgetary constraints.

The Colorado Taxpayer's Bill of Rights, or TABOR Amendment, limits the state's Medicaid budget to 6 percent growth annually, leaving the program cash-strapped and straining under the weight of population growth and skyrocketing health care costs. The actual Medicaid budget is growing at 8 to 9 percent. The $2.3 billion Medicaid budget is the State budget's second largest line item, even at its limited growth level. The federal government matches Colorado's State Medicaid dollars. Colorado hospitals have already agreed to $5 million in Medicaid reimbursement cuts during last year's legislative session. Those cuts were effective from July 2000 to June 2001. State health officials and health care executives both agree that a major overhaul of Colorado's Medicaid program is the only way to avoid deterioration in government funded health care for the poor.

Regardless of the outcome, be assured that higher health care insurance premiums for each of us will be needed to help subsidize health care for Colorado’s indigent population and fewer services will be provided. The message is clear… take personal responsibility for future long term care needs. The government will not be much help. Long term care insurance will pay for home care, adult day care, hospice care, assisted living and nursing home care. Health insurance will not cover most of these costs. Discounted LTC premiums are offered through your employer or association plan. Act today… request additional information or a private consultation. Discounted premiums apply to you, your spouse, children, parents, and in-laws.

To Request information or a consultation on this important aspect of pre-retirement planning contact us:

Long Term Care Quote Request:http://www.lidke.com/forms/Surveyform.htm

Phone: 303-649-1922 OR 800-888-9084