July 12, 2018: State Advocacy Update

| 2 Min Read

Medicaid waivers blocked in Kentucky, Massachusetts

A federal judge has blocked new work requirements for Medicaid patients in Kentucky that were scheduled to go into effect on July 1. The new eligibility rules, contained in a waiver program called Kentucky HEALTH, would have required certain adult Medicaid beneficiaries to engage in at least 80 hours per month of community engagement activities, such as employment, education, job skills training and community service.

Haven't subscribed?

Stay current on the latest on the issues impacting physicians, patients and the health care environment with the AMA’s Advocacy Update newsletter.

The state estimated that 95,000 low-income individuals could lose coverage under the program—a detail that the Court said CMS overlooked when it approved the state's request. In vacating CMS' approval of Kentucky's waiver, the Court said that CMS "never adequately considered whether Kentucky HEALTH would in fact help the state furnish medical assistance to its citizens, a central objective of Medicaid." CMS must now reconsider the waiver. The AMA opposes work requirements as a condition of Medicaid eligibility.

On the same day, CMS also disapproved controversial provisions contained in a Massachusetts Medicaid waiver proposal. Among other things, the waiver would have required Medicaid to adopt a closed formulary with minimum coverage of just one drug per therapeutic class, a provision that the state said was necessary to rein in prescription drug costs.

Under current law, the Medicaid Drug Rebate Program requires drug manufacturers to pay rebates to states and the federal government as a condition of having their products covered by Medicaid. In exchange, states must cover nearly all of the manufacturers' products. CMS disapproved the request, saying that Massachusetts would have to opt out of the Medicaid Drug Rebate Program altogether in order to exclude specific drugs from coverage. The AMA submitted comments (PDF) on Massachusetts' proposal, expressing concern that the plan would hurt low-income patients.

FEATURED STORIES

Smiling woman sits on couch while typing on laptop

Medicare telehealth coverage renewed for two years

| 5 Min Read
Hand stacking blocks with health care icons

3.1% bonus revived for physicians participating in Medicare APMs

| 5 Min Read
Smiling caregiver embraces older smiling patient

Lawmakers extend CMS hospital-at-home waiver for five years

| 4 Min Read
Hand holds smartphone

AMA expert says what to do—and not do—when measuring doctor burnout

| 12 Min Read