Hospitals

Fiscal cliff may be Obamacare’s next enemy

Funding for the Medicaid expansion and other parts of Obamacare may become bargaining chips in the budget negotiations about sequestration the fiscal cliff.

Although another legal challenge to the Affordable Care Act is not likely, sequestration may be the next foe it has to face.

Healthcare lawyer Stephen Weiner said funding for the act may become a bargaining chip in the negotiations about the fiscal cliff.

Weiner is the chair of the Health Law Section at Mintz Levin.
He said that House Republicans may try to reduce the number of people eligible for the Medicaid expansion to save money.

“Budget issues may drive some changes as part of deficit reduction deal,” he said. “There may be tradeoffs around the medical device tax as well.”

Weiner also said that relative to where things were on Monday, there is a much less uncertainty now.
“We know where this administration stands, and we’ve seen the way the House acts,” he said. “A lot of people were hanging back and waiting to see what happens but now states will have to make decisions.”

Weiner is based in Boston, where another round of healthcare reform has just kicked in, including incentives for shifting to the accountable care model and a new payment system.

The new system pays providers on per member, per month basis, replacing the fee for service model. Weiner said capitation has a better chance of succeeding this time because providers now have the data they need to manage care effectively, and the ability to analyze it.

presented by

“This approach failed in 90s because providers did not have capacity to figure out risk,” he said. “Now, people are more focused on trying to get the numbers right and build in risk.”