Proposed Rate Increases for Health Coverage in 2016 Likely to be Moderate, Irrelevant to What Consumers Actually Pay

Most Floridians who directly purchase their health coverage on the state's individual market will be enrolled in a plan proposing moderate rate increases very much in line with pre-Affordable Care Act levels.

Most importantly, under the Affordable Care Act, plan rates and consumer premiums are often two entirely distinct concepts.  Given that the majority of Florida's individual market is now comprised of consumers purchasing coverage in the federal Health Insurance Marketplace, and that 94 percent of Marketplace customers received financial assistance in the form of Advance Premium Tax Credits in 2015, it is reasonable to expect that consumers purchasing their own coverage will see at most a nominal increase in the premiums they pay. 

Furthermore, those that would face premium increases may find them reduced or eliminated by switching to a different but comparable plan during the upcoming 2016 Open Enrollment period.

Read the report


Proposed Rate Increases for Health Coverage in 2016 Likely to be Moderate, Irrelevant to What Consumers Actually Pay

Most Floridians who directly purchase their health coverage on the state's individual market will be enrolled in a plan proposing moderate rate increases very much in line with pre-Affordable Care Act levels.

Most importantly, under the Affordable Care Act, plan rates and consumer premiums are often two entirely distinct concepts.  Given that the majority of Florida's individual market is now comprised of consumers purchasing coverage in the federal Health Insurance Marketplace, and that 94 percent of Marketplace customers received financial assistance in the form of Advance Premium Tax Credits in 2015, it is reasonable to expect that consumers purchasing their own coverage will see at most a nominal increase in the premiums they pay. 

Furthermore, those that would face premium increases may find them reduced or eliminated by switching to a different but comparable plan during the upcoming 2016 Open Enrollment period.

Read the report

 
Who Are the Newly Eligible?

The Florida Health Insurance Affordability Exchange program (FHIX) proposed by the Florida Senate (as well as other coverage expansions that would qualify for full federal funding under the Affordable Care Act) would make more than a million uninsured, very low-income Floridians newly eligible for real coverage. In general, these newly eligible individuals include uninsured, non-elderly adults (i.e., ages 19 to 64) who:

 

  1. Have family incomes at or below 138 percent of the Federal Poverty Level (FPL)
  2. Do not qualify for Medicaid based on rules for the current Medicaid program or Medicare
  3. Meet other basic criteria (for example, they must be either U.S. citizens or lawfully residing immigrants who have lived in the U.S. for at least five years).

 

>Read the report for more characteristics of the Newly Eligible. 

 
Health Care Expansion Requirements Could Limit Enrollment

When the legislature convenes in special session June 1, it will consider various proposals to provide health-care coverage to Floridians in households earning less than 138 percent of the federal poverty level who are not eligible for Medicaid. 

Legislative analysts estimate that 800,000 uninsured Floridians could gain health-care coverage under such proposals. 

But policymakers, in designing their new plan, should consider two facts: (1) work requirements will be difficult or impossible to meet for many intended enrollees; and (2) for workers at or below the poverty level, even modest premium payments and co-pays would further strain already tight household budgets.

Some proposals discussed contain requirements of applicants for health-care coverage that could limit the number of Floridians who would be insured. For example, evidence of employment, job training or additional education would be difficult to meet for many of the currently uninsured. 

>Read the report.

 
Measured Growth in the Medicaid Budget and of Managed Care Plan Payment Rates Will Constrain Costs of Medicaid Expansion

In the most recent round of debate by the Florida Legislature over whether or not to extend coverage to hundreds of thousands of the lowest-income Floridians though the Medicaid program (or an alternative that meets the requirements of the Affordable Care Act), opponents invoked many familiar and long-debunked arguments. 

Perhaps the oldest and most often cited of these claims is the assertion that the current Medicaid program is "spiraling out of control" and "swallowing the state budget."  But expansion would reduce state general revenue spending for Medicaid in the short term and the primary components of future spending growth appear poised to remain well-constrained over time as well. 

Examination of the spending picture makes it clear that not only is Medicaid a manageable and sustainable component of the state budget, expansion as called for in the Affordable Care Act would do nothing to alter that reality.

 

>Read the report.

 
Health Care Expansion Problems Cited by Leaders Are of Their Own Making or Already Addressed

For the past several years, leadership in the Florida House of Representatives has repeatedly rejected the opportunity to extend health coverage to non-elderly, uninsured adults with family incomes up to 138 percent of the Federal Poverty Level through Medicaid or an alternative as provided under the Affordable Care Act (ACA). 

In attempting to justify its refusal, Florida House leaders in particular have ignored or selectively interpreted almost every relevant fact pertaining to expansion and its implications for Florida. 

Many of the problems they identify as primary exist as a direct result of or have already been addressed as a result of deliberate choices made by the legislature. The fact that these conscious decisions have created or addressed many of the issues cited as impediments to expansion serves to directly discredit opponents' arguments.

>Read the report.   

 
A Chronology of Key Events: Medicaid Managed Care, the Low Income Pool and Medicaid Expansion

Review of a timeline of actions taken by Florida's legislative leadership and governors over the past decade on Medicaid reveals how state leaders have inconsistently and selectively used information to simultaneously embrace and undermine the program (and the flexibility/funding provided at the federal level).

 A chronology of actions from 2005 to the present sheds light on the current legislative impasse and the refusal of the House of Representatives to consider the Senate proposal to create the Florida Health Insurance Affordability Exchange program (FHIX). 

>Read the report.

 
Big Tax Cuts May Pass Legislature

At the midpoint of the legislative session, the Florida Senate and the House of Representatives are stalemated over the issue of health care expansion under the Affordable Care Act and funding for the Low Income Pool (LIP).

Under current law the funding associated with the LIP will expire on July 1, 2015, leaving a $2 billion hole in the budget.  

One tax cut, on telephone and cable services, would be a $471 million hit to the state's revenue stream, but would have only a slight impact on individual Floridians and families -- an estimated annual savings of $40 per person and $160 per family.

The size of the proposed $471 million cut is put in context when compared to funding amounts for vital state programs. For example, it is larger than the total budget of the Voluntary Prekindergarten Program.  And it is 75 times larger than the proposed general revenue increase for Alzheimer's respite services for 167 seniors  and funding for an additional 406 seniors in the Community Care for the Elderly program.

The needs of the state suggest that now is not the time to pass $600 million to $800 million in tax cuts. 

>Read the report. 

 
Keeping and Modernizing the Corporate Income Tax Will Best Serve Florida

Governor Rick Scott and legislative leaders are moving forward with a plan to cut corporate income tax revenues again after previous cuts in his first term. Action on these bills comes amid a renewed pledge by Scott to end the tax entirely, as he first proposed when inaugurated in 2011.

Relatively few businesses in Florida pay the tax, a huge proportion of which are very profitable corporations.

Both reducing collections from the tax and eliminating it would have undesirable effects.  Both would reduce income available to meet Florida's needs.  Secondly, any reduction would further skew Florida's tax system, leaving others to assume a greater share of the responsibility for funding vital state services, making Florida's unfair tax system even more unfair.

Eliminating the tax would allow profitable corporations, many of them multistate and multinational, to escape paying for the benefits they receive from state-funded services. 

A better alternative would be to modernize and strengthen the corporate income tax to make sure that profitable corporations pay their fair share and that other taxpayers don't bear a disproportionate share of the cost of state services.

> Read the report.

 
Census Data Show Florida Struggling to Recover from Recession

Florida’s poverty rate remained unchanged in 2013, median household income remained lower than before the Great Recession,and the state’s percentage of residents without health insurance was third-highest in the nation, the U.S. Census Bureau reported this week. The data from the American Community

Survey and Current Population Survey paint a picture of Florida still poorer than it was five years previously, despite the ongoing economic recovery.

> Read the report.

 
The Condition of Florida, 2014

Florida is still recovering from the Great Recession. As expected in any recovery period, jobs are coming back, although too few to employ the same percentage of Floridians that had jobs before the recession.

State revenues are increasing now and are expected to climb each year into the foreseeable future. But policymakers have used much of that growth money to provide new tax breaks each legislative session instead of reinvesting in areas of the budget squeezed during the recession years.

Telling points: Florida ranks 49th in the nation in per capita state and local spending for education, but corrections is funded well enough to rank 23rd among the states. And the state ranks 43rd in a recent survey of quality of services for the elderly, disabled and their caregivers. The state ranks very low in other measures of well- being affected by state expenditures, as this report indicates.

> Read the report.

 
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The Florida Center for Fiscal and Economic Policy
579 East Call Street
Tallahassee Florida 32301
Phone: 850-325-6480
Email: info@fcfep.org

The mission of the Florida Center for Fiscal and Economic Policy is to conduct independent research, develop new ideas, and advise policymakers on state fiscal and economic policy.  The Center pays particular attention to policy impacts on low- and moderate-income individuals, families and neighborhoods, workers, and small businesses.  The Center works to heighten public awareness of the need to adequately fund programs that improve opportunities, choices, quality of life outcomes, and the economic well-being of all Floridians.


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