Hurricane Katrina: Health Resources for Recovery Efforts
Activity on the Hill
October 6, 2005
S. 1716, Emergency Health Care Relief Act of 2005
Senators Charles Grassley (R-IA) and Max Baucus (D-MT), chairman and ranking member respectively of the Senate Finance Committee, have introduced legislation (S. 1716) to provide health care and income support to Hurricane Katrina survivors. The bill provides health care coverage through Medicaid and the State Children’s Health Insurance Program (SCHIP), and cash assistance through the Temporary Assistance for Needy Families (TANF) program and through extended unemployment insurance benefits. States will receive 100% federal match for expenditures made under the provisions of this legislation. The bill also holds harmless states that were scheduled to receive a reduction in their federal Medicaid matching payments in FY 2006.
They plan to move the bill as "emergency spending," so no offsets will be required. Briefly, the bill: (1) provides 100% federal reimbursement for state expenditures made assistin Hurricane Katrina survivors under a temporary Disaster Relief Medicaid (DRM) program; (2) provides additional assistance to states directly impacted by Hurricane Katrina (Alabama, Louisiana, Mississippi); (3) holds states harmless from scheduled reductions in federal matching payments for Medicaid in FY 2006; and (4) provides special assistance to Medicare beneficiaries and to impacted health care providers.
Secretary Leavitt has expressed concerns about the measure in letters to the leadership of the Senate stating that ongoing efforts largely preclude the need for activities proposed in the legislation.
On September 30th, a request by Senator Baucus (D-MT) that the measure receive immediate consideration was objected to by Senator Sununu (R-NH) citing a need for revisions to the aid package which would better ensure that resources get where they are needed the most.
A companion bill, the Emergency Health Care Relief Act of 2005, was introduced in the House by Representative Phil Gingrey (R-GA) September 30, 2005. H.R. 3952 contains provisions similar to S. 1716 with some variation including a proposed 90 percent FMAP for states hosting evacuees instead of the 100 percent proposed in S. 1716. H.R. 3952 includes provisions to:
** Aid Gulf Coast states hardest hit by Katrina by amending the federal Medical Assistance Percentage (FMAP) for Medicaid. Because Medicaid is a joint state/federal program, states pay a sliding percentage of their Medicaid costs, based on need. The legislation allows Gulf Coast states to temporarily pay a reduced share of the costs, 10 percent.
** Provide employers in the hardest hit counties with assistance in maintaining private health insurance coverage for their employees. This aides businesses that are inoperable due to Hurricane Katrina’s damages.
** Provide qualifying victims with grant money to help pay for health insurance premiums through a Disaster Relief Fund administered by state insurance commissioners.
** Alleviate the burden of uncompensated care on healthcare providers in the Gulf Coast. Providers who are caring for increased Medicaid populations or who have lost their patient base because of the hurricane will be eligible for additional payments through an emergency relief fund.
** Ease other regulatory and bureaucratic conditions that prevent hurricane victims from quickly getting the care they need. These provision include expediting the process for signing up for Medicaid and SCHIP (children's healthcare insurance); extending unemployment benefits for 13 weeks; ensuring a plan is created to inform and transition victims from Medicaid to Medicare Part D, the prescription drug benefit, when victims become eligible; temporarily allowing Medicaid to pay for mental health services; and allowing investor-owned hospitals to be reimbursed through FEMA.
S. 1769, Public Health and Health Insurance Emergency Response Act of 2005
On September 26th U.S. Senators Michael B. Enzi, Chairman of the Senate Committee on Health, Education, Labor and Pensions and Ranking Member Senator Ed Kennedy introduced a comprehensive health care initiative to aid victims of Hurricane Katrina, which includes an emergency extension of private health insurance for families and small businesses affected by the disaster. Senate Bill 1769 or the “Public Health and Health Insurance Emergency Response Act of 2005,” includes components to deal with ongoing public health and mental health, personal health care needs of hurricane victims while also providing federal assistance to cover health insurance premiums for displaced people and disrupted businesses over a period of three months. Additionally, it contains initiatives to cut red tape that could slow federal agency relief efforts during a public health emergency by giving the federal government the authority it needs to respond to the local and state health needs after a natural disaster.
Highlights:
Helps survivors maintain and afford their health insurance coverage by:
- Providing three months of temporary health insurance premium relief to individuals and small businesses that have suffered as a result of Hurricane Katrina;
- Prohibiting insurers from canceling policies or raising rates during the three-month emergency period;
- Ensuring automatic enrollment into the program, and waiving requirements for victims to file a formal application to receive benefits.
Ensures a comprehensive public health response in the months ahead by:
- Increasing the number of sites at which people displaced by Hurricane Katrina can receive primary and preventive health care;
- Ensuring immediate availability of mental health funding in event of major disasters;
- Directing special emergency mental health funding to areas affected by major disasters;
- Collecting and analyzing data for use in the response to Katrina and future responses to major disasters.
Cuts red tape in a public health emergency by:
- Recognizing that recovery from the public health impact of Katrina will take more than 90 days;
- Strengthening authority to waive laws and regulations that hinder the fullest possible response to a major disaster including: vaccination eligibility laws; matching funds; health professional shortage area designation process.
Other Notes
- an amendment, to permit certain health professionals who are displaced by Hurricane Katrina to provide health-related services under the Medicare, Medicaid, SCHIP, and Indian Health Service programs in states to which they have relocated, was adopted as part of the FY 2006 Commerce, State, Justice Appropriations bill (H.R. 2862).
- the Administration announced that all children from birth to 18 years old displaced by Hurricane Katrina are eligible to receive free vaccines through the federally-run Vaccines for Children program (VFC), regardless of whether they are staying at shelters, hotels, or with family and friends and regardless of previous health insurance coverage status. The Vaccines for Children program is an entitlement program (a right granted by law) for eligible children, age 18 and below, known as section 1928 of the Social Security Act. VFC became operational Oct. 1, 1994. Through the VFC program, public purchased vaccine is available at no charge to enrolled public and private health care providers for eligible children. More information about the VFC program can be obtained at http://www.cdc.gov/nip/vfc/. CDC’s Interim Immunization Recommendations for Individuals Displaced by Hurricane Katrina can be accessed at http://www.bt.cdc.gov/disasters/hurricanes/katrina/vaccrecdisplaced.asp. Complete information on the full range of accelerated benefits available from HHS for hurricane victims is available at http://www.hhs.gov/katrina.
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