IBJNews

New estimate drops health plan's cost to Indiana

Back to TopCommentsE-mailPrintBookmark and Share

A new estimate has lowered the expected cost of the federal health care overhaul to Indiana's state government to perhaps $2.6 billion over the next decade — $1 billion less than an initial projection made last spring.

That estimate given to state legislators by an outside actuary hired by the administration of Republican Gov. Mitch Daniels drew criticism from some Democratic lawmakers.

Robert Damler of the actuarial consulting firm Milliman Inc. told the state's Medicaid oversight commission on Monday that new information provided by the federal government will drop the possible costs an additional $330 million. The firm in May had lowered its initial estimate to $2.9 billion.

The initial estimate of $3.6 billion assumed the Medicaid program would enroll all eligible Indiana residents — federal estimates project only about 80 percent — and that they will drop existing private insurance through employers and other means for the government coverage, The Journal Gazette of Fort Wayne reported.

The latest change is because the Centers for Medicare and Medicaid Services in late September changed its interpretation of the law regarding a prescription rebate program, which Damler said dropped Indiana's potential fallout to zero.

House Ways and Means Chairman Bill Crawford, D-Indianapolis, said that previous estimates had been $500 million for that expense.

"There's not a lot of confidence in this report," Crawford told WRTV.

Damler declined to remove an estimated $600 million in costs from the report that could come as a result of increased physician reimbursements. Several lawmakers pointed out that the increased reimbursements are not required under the federal law .

"This report is supposed to reflect the state's projected expenditures based on the act. I am looking forward to additional corrections," said Senate Minority Leader Vi Simpson, D-Bloomington.

Damler said the federal act increases physician reimbursement rates for a two-year period and provides funding to cover the increase. After that, he said, states will likely have to pick up the cost even though it is not currently required.

Indiana Family and Social Services Administration spokesman Marcus Barlow said the federal government has been slow to provide details, making it difficult to estimate the impact of the health care overhaul.

"As we get more information from the federal government, we are constantly revising what the estimates will be," he said. "Even under the best case scenario, that's still $2.5 billion we'll have to find somewhere."

ADVERTISEMENT

  • GOP web of disinformation
    Can you ever believe anything that comes from a Mitch Daniels appointed group/individual. They are in the business to report only the half trugh and not the whole truth and nothing but the truth. Why? to pay back WelPoint's big donations to the GOP and their sweetheart deals to their own and former execs.
  • Is this good news?
    Good article and coverage, but do these new figures reflect good news? I say no. In fact, I would argue that this development further underscores the biggest cost of the entire federal health care bill, uncertainty.
    An actuarial report swinging $1Billion dollars! I know we're jaded by big numbers these days, but the fact that our best actuarial estimates available first jumped up by billions then dropped back down by a billion on a month by month, seemingly day by day, basis should freak everyone out. The reason is that the Dems crammed this bill through without any thought of how it would be implemented or how complicated the rule making process would be, and i'm not even going to touch the merits of the bill in the first place.
    When the actuarial studies turn into actual tax dollars, anyone with a pulse knows it will be higher than they say. At this point it feels like the state is playing a game on the Price is Right and looking out to the crowd for the right number. Expect the estimates to change again and, if this report is any indication, change drastically. The bottom line is that the federal govt, by way of health care reform, has taken a dump in the taxpayers' cereal box and then asked us to be excited when we're able to pour out a few pieces that aren't covered in crap.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT