A Summer In Action: Highlights from Peaceful Living

Medicaid Update

Peaceful Living provides Home and Community Based Services (HCBS) through Medicaid dollars, and like many of you, we have been closely following the news regarding the One Big Beautiful Bill Act (OBBBA) from the beginning of debate through passage. The OBBBA is the enactment of President Trump’s budget priorities and includes roughly $1 trillion in Medicaid cuts over the next 10 years amongst other changes. History and research show that federal cuts to Medicaid tend to lead to state cuts in HCBS funding and programs (Health Affairs). 

Broadly, many changes in the OBBBA are not effective immediately and will not begin until around roughly the time of the mid-term elections next year.  Between now and that time, we will be keeping an ear out for the detailed rule-making that will instruct how these changes take effect in detail.  For those interested, the Kaiser Family Foundation has a tracker that details the implementation of the bill.

One area of major concern to providers like Peaceful Living is limits or reductions in funding for Medicaid services through limits and reductions to “Provider Taxes”.  These are healthcare-related taxes implemented by states to supplement funding from the federal government for Medicaid-authorized services (Kaiser Family Foundation).  Because Pennsylvania is a Medicaid Expansion state, it will now be required to reduce provider taxes by 0.5% each year until it is at 3.5% from the current Provider Tax rate of 6%.

Other provisions that we are monitoring are increased administrative burden for Medicaid enrollment (Congressional Budget Office Director’s Letter), disruption to rules scheduled to take effect intended to make enrollment easier, and cost sharing requirements for Medicaid expansion recipients that would require copays for health care services.  We are also watching changes to work requirements in the bill during final rule making; however, the bill does state that medically frail individuals, including adults with intellectual disabilities, are exempt from the requirements.

To plan for the future, Peaceful Living is critically examining our current operations and working to streamline processes and organizational structure to increase efficiency and make the best use of our company talent and resources.  We are considering paths for greater revenue generation as we head toward Performance Based Contracting. We continue to connect with PAR, ANCOR, and other sources to understand the bill’s impact, inform our advocacy, and guide our decision making. 

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