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building a health information technology foundation for health reform: a look at recent guidance and funding opportunities: http://www.kff.org/healthreform/8132.cfm

(5) ... Repealing Health Reform’s Maintenance of Effort Provision Could Cause Millions of Children, Parents, Seniors, and People With Disabilities to Lose Coverage ... Repeal Would Also Cause Loss of Jobs http://www.cbpp.org/cms/index.cfm?fa=view&id=3397

This new website developed by the U.S. Department of Health and Human Services helps you understand all the health insurance options available in your local area for you and your family. After answering just a few basic questions, the website's insurance finder will identify public and private coverage options that might be right for you. You can receive updates on the implementation of the new law and, as the website grows, you will be able to research health plan quality ratings, learn about disease prevention, and compare health plan prices all in one place.

RWJF and George Washington University have just launched this new web-based platform that will serve as a high-level guide to the health reform implementation process. The purpose of the site is to open a window into the role and activities of the federal agencies responsible for spearheading implementation and to attract commentary on the endless array of policy questions that will inevitably arise along the way.

The Patient Protection and Affordable Care Act ("PPACA") passed and signed this year contains some important benefits for Medicare recipients, including drug benefits explained in this brochure. The $250 doughnut hole rebate is the first step toward closing the Medicare prescription drug coverage gap. If you reach the coverage gap in 2011, you will get a 50% discount on your brand name prescription drugs at the time you buy them, unless you are already getting Medicare Extra Help. Help spread the word about this important benefit. And help stop scams against seniors. Pass this brochure along to your friends, neighbors.

How Health Reform Helps the States
Families USA's state-specific one-page fact sheets designed for advocates to use in their communities. Please customize these with your own logo and contact information. (May 2010)

Health Reform: Why We Should Celebrate

Families USA's PowerPoint presentation based on their piece, Help Is On the Way: 12 Reasons to Embrace Health Reform. This is a simple and clear tool that can be used to educate the public on the many ways that they will benefit from the new law. It includes talking points, but we encourage advocates to tailor the presentation to their audience. (May 2010)

Families USA's overview piece that discusses 12 key improvements in the health reform law, which will benefit millions of Americans and their families. (May 2010)

12 Reasons Campaign

Families USA's campaign launched on their microsite, www.standupforhealthcare.org. Includes a blog post for each of the 12 reasons, showing how American families and businesses will be helped by the new law. Please feel free to cross-post or share these blogs with your social media networks—a quick and easy way to spread the word! (May 2010)

Roadblocks to Implementation section of Health Reform Central

Families USA has added updates on repeal/nullification efforts, advice on how to respond to attacks, and legal arguments against repeal/nullification. (May 2010)

What Will Happen Under Health Reform—And What's Next?

Newly enacted national health reform will begin, almost immediately, to transform the U.S. health care system in ways large and small. The changes will increase the number of people with health insurance, and affect how many of us obtain coverage, how care is paid for and delivered, and how it is regulated. Commonwealth Fund answers key questions about health reform for journalists and others and provides a timeline of reform milestones.

Health Reform Law and Young Adults Briefing Video/Podcast

Almost 14 million people between the ages of 19 and 29 were uninsured in 2008. The new health reform law requires insurers to allow dependent children to remain on their parents' plans until age 26. But many questions remain. On May 24, an Alliance for Health Reform/Commonwealth Fund briefing in Washington, D.C., explored how the law affects young people. A video and podcast of the briefing, courtesy of the Kaiser Family Foundation, are available. Resource materials are also available and a transcript from the briefing will be posted soon.

New Briefing on Payment Innovation: What Lies Ahead Under Health Reform?

The health reform law will make several changes in the way health care is paid for, particularly in public programs. A May 10 briefing sponsored by the Alliance for Health Reform and The Commonwealth Fund, "Pathways to Payment Innovation in a Post-Health Reform Era," explored the major payment initiatives in the new law and their potential effects. It explored such questions as: What role can payment changes play in moving health care away from the fee-for-service system toward value-based reimbursements? What can be learned from earlier public and private efforts to better align payment incentives with program goals? How will the new Center for Medicare and Medicaid Innovation work to test new approaches, and then scale up the successful ones? Presentations and other resources from the briefing are available on the Alliance for Health Reform Web site, and a webcast and podcast of the event are available on the Kaiser Family Foundation's site.

Cover the Uninsured Health Care Reform Implementation Resources – Website, Events Help, Twitter

Now that health care reform has been signed into law, health care coverage will be available to an additional 32 million uninsured Americans. This legislation is a historic milestone that addresses many of the key areas Cover the Uninsured organizers have been fighting for across the country. You can read more about how health reform will impact your community on the Cover the Uninsured website. Now is the time to host enrollment events to make sure eligible adults and kids get the low-cost or free coverage they need through programs that are already available in your community. You may also want to review the Community Forum Guide to engage community members and educate them on the changes that will be implemented in your area. Cover the Uninsured will also keep you up-to-date with e-mails and our Twitter feed.

As health advocates, it’s important to make sure that the new law is implemented effectively and in the most consumer-friendly way. Families USA has created a new micro site, Health Reform Central, which is designed to support you in implementing all of the new protections and opportunities that health reform will bring to your state. A few highlights include: Understanding the new law; Repeal efforts; and an Interactive state page.

"While Democrats hail the sweeping legislation as the greatest expansion of the social safety net since Medicare, they also fear that seniors won't see it that way for this fall's elections. Indeed, Republicans have portrayed the overhaul as a raid on Medicare - a bedrock of retirement security - to provide money to pay for covering younger, uninsured workers and their families. An Associated Press-GfK survey in March found that 54 percent of seniors opposed the legislation that was then taking final shape in Congress, compared with 36 percent of people age 18-50. And last week a USA Today/Gallup Poll found that a majority of seniors said passing the bill was a bad thing - while younger people were positive about it. (4/1/2010, AP)

Efforts to Nullify Health Reform Likely to Fail, But Could Interfere with Law’s Implementation

"Despite the central role that the individual mandate plays in health care reform, proposals have been introduced in over 35 state legislatures to prevent the individual mandate from taking effect. In addition, two lawsuits have been filed to challenge the individual mandate? [Such s]tate nullification efforts almost certainly will be unsuccessful in invalidating the new federal law. But efforts to nullify the individual mandate could weaken political support for health reform and make successful implementation at both the state and federal levels more difficult to achieve." (4/7/10, CBPP)

New Health Initiatives Put Spotlight On Prevention
Amid all the rancor leading up to passage of the new health care law, Congress with little fanfare approved a set of wide-ranging public initiatives to prevent disease and encourage healthy behavior. (4/10/10, NYT)

which was fielded while the legislation was still pending in Congress—also found that virtually all key features of the health reform law are supported by a large majority of opinion leaders. (April 2010, Commonwealth Fund)

Online Resources For Information On Health-Care Reform
The ink was hardly dry on the health-care overhaul law when foundations, industry groups and consumer advocates began putting together guides to the new rules. (4/6/10, Washington Post)

Key Health Insurance Market Reforms Not Achievable Without an Individual Mandate

"Some opponents of health reform argue that the new law’s individual mandate — the requirement that individuals must have health coverage or face a penalty — should be repealed but the law’s most popular insurance market reforms kept in place. These reforms will bar insurers from denying coverage to people with pre-existing conditions, charging higher premiums based on a person’s health status or gender, or placing annual or lifetime caps on covered benefits. This approach would be doomed to fail. An individual mandate is essential to the success of insurance market reforms and to keeping premiums affordable" (4/7/10, CBPP)

examines 13 critical issues that federal and state authorities must resolve if the new exchanges are to succeed: Ensuring that exchanges don't become victims of "adverse selection"; Enrolling enough individuals in exchanges to achieve sufficient market power, economies of scale, and risk pool stability; Offering consumers choice without complexity; Maximizing transparency and disclosure—one of the most important tasks in the implementation process; Encouraging competition among insurers on value and price. Keeping down administrative costs of exchanges, as well as those of insurers and employers; Establishing strong relationships between exchanges and employers. (7/15/10, Commonwealth Fund)

Democrats outraged by insurance company profits designed a piece of the new health care law to force insurers to direct most premium money toward benefits. The law requires that, beginning in 2011, large group plans spend 85 percent of premiums on clinical services and activities related to quality of care. Only 15 percent can go to other items, such as administrative costs, advertising and profits. For small group and individual plans, it's 80 percent premiums and 20 percent other costs. The law was otherwise fairly vague about what counts as medical claims and what counts as administrative costs. For insurers, the stakes are high because the decision could directly—and in some cases adversely—affect companies' profits. (6/25/10, CQ HealthBeat)

Implications Of Health Reform For The Medical Technology Industry
The changes included in health reform include both positives and negatives for the [medical technology] industry, but, on balance, the industry is likely to thrive in the new era. However, the protection of innovation is a crucial issue for both the industry and current and future patients, who depend on medical progress for longer and healthier lives (7/9/10, Health Affairs)

Loophole may let `mini-med' health insurance policies off the hook
The low annual payout limits on skimpy health plans, including the state's own ``Cover Florida'' program, are supposed to go away in September under new federal rules released this week. But a close reading of the rules shows some wiggle room. (6/24/10, Miami Herald)

Americans who have been uninsured for at least six months and have been unable to obtain private health coverage because of a pre-existing health condition can now apply for benefits through a new program created by the health care overhaul law, the department of Health and Human Services announced. (7/6/10, Commonwealth Fund)

The federal government went live with a much ballyhooed Web site that helps consumers find health insurance options and explains benefits under the new health care overhaul law. (7/6/10, Commonwealth Fund)

New Coverage for Uninsured People in Poor Health
The Obama administration is launching a special coverage program for uninsured Americans with medical problems this week, the most ambitious early investment of President Barack Obama's health care overhaul. (6/30/10, AP)

Medicare Changes Could Shortchange Vulnerable Hospitals
The U.S. government's plan to base Medicare payments to hospitals on certain quality-of-care measures could end up transferring funds away from hospitals in the nation's poorest, underserved areas, an analysis published Tuesday suggests. (6/29/10, Reuters)

Pressure Rising on Healthcare Long Before Overhaul Takes Effect
Despite passage of the landmark healthcare overhaul this spring, the nation's existing health system is continuing to fray, raising the prospect that the country could experience a crisis before the law establishes a new safety net in 2014. (6/21/10, Los Angeles Times)

How Will Health Reform Affect States?

Health reform was enacted into law in Washington, D.C., but many of the decisions around implementation will be made at the state level. In the coming months and years, states will wrestle with the economic, legal and clinical aspects of reform; their ability to successfully navigate these issues will have a direct impact on tens of millions of Americans. (6/21/10, RWJF)

What is the Evidence on Health Reform in Massachusetts and How Might those Lessons Apply to National Health Reform?

As in Massachusetts, national reform includes expansions of public programs, the creation of health insurance exchanges, subsidies for low- and moderate-income individuals, an individual mandate, and requirements for employers, among other provisions. Given the strong parallels between Massachusetts’ health reform initiative and national health reform, the experiences in the Bay State provide insights into the potential effects of PPACA. (6/21/10, RWJF)

HHS to Spend $250 Million to Increase Number of Primary-Care Providers
In an attempt to address a national shortage of health-care workers, Health and Human Services Secretary Kathleen Sebelius said Wednesday that the federal government will spend $250 million in programs to increase the number of doctors, nurses and other care providers. (6/21/10, Washington Post)

State-Based Case Studies Explore the Costs and Adequacy of Safety Net Access for the Uninsured

Despite the passage of the federal health reform legislation, an estimated 20 million people will likely remain uninsured and reliant on safety net care, making the efficacy of the nation’s health care safety net a vital issue for policy-makers and health care advocates. A new series of case studies being released by researchers at Wake Forest University, in conjunction with the Robert Wood Johnson Foundation, explores whether well-established safety net systems are able to provide low-income uninsured people with access to high-quality care at a reasonable cost. (June 2010, RWJF)

Updated Medicaid Primer Explains Basic Components of Medicaid and the Program’s Role in Health Reform

The Kaiser Family Foundation has updated Medicaid: A Primer, which provides an overview of the basic components of Medicaid, the nation's largest health coverage program. In light of the new health reform law, the primer now examines how Medicaid will change and expand as it serves as the mechanism to provide coverage to millions of previously uninsured low-income adults and children. (6/23/10, KFF)

Conversations: Mary K. Wakefield on Getting Ready to Double the Work of Clinics
Mary K. Wakefield is the administrator of the Health Resources and Services Administration, an agency of the U.S. Department of Health and Human Services. The agency oversees community health centers across the nation and programs that bring health care to the uninsured. (6/21/10, Washington Post)

Seeing Threat to Individual Policies, State Officials Urge a Gradual Route to Change
State insurance officials say they fear that health insurance companies will cancel policies and leave the individual insurance market in some states because of a provision of the new health care law that requires insurers to spend more of each premium dollar for the benefit of consumers. (6/14/10, NYT)

States Resist HHS Control of Premiums
Some state insurance commissioners are pushing back against a renewed effort on the Hill to centralize the authority of health insurance premium rate reviews under the secretary of Health and Human Services. (7/06/10, Politico)

explains what these credits are, who is eligible for them, how much they’re worth, and how they can be used. (5/1/9/10, CBPP)

discusses provisions in the new law that will help young adults gain health coverage. Key provisions include dependent coverage up to age 26, a Medicaid expansion, new health insurance “exchanges,” and subsidies to help people purchase private insurance. (May 2010, KFF)

explains that, on average, women are poorer and spend a greater share of their income on care than men. Therefore, provisions aimed at preventing medical bankruptcy and increasing access to affordable coverage, whether through public programs or the private market, will greatly benefit women. (June 2010, National Women’s Law Center)

explains how women will benefit from these reforms given that plans have routinely discriminated against women by using gender rating, treating domestic violence as a pre-existing condition, and denying coverage because they’ve had a c-section or breast cancer. New insurance reforms and the “exchanges” will make it easier for women to get coverage in a private market that treats everyone fairly. (June 2010, National Women’s Law Center)

looks at how women will benefit from provisions in health reform that expand coverage for preventive care in private plans, Medicare, and Medicaid, and that eliminate cost-sharing for those services. (June 2010, National Women’s Law Center)

explains that, while all states will see large increases in federal financing, each state’s share of federal money will depend on factors such as its Medicaid matching rate, decisions about coverage made prior to reform, and participation rates. In general, states that have the furthest to go to meet the new requirements will receive the largest increases. (May 2010, KFF)

shows that the planned Medicaid expansion will greatly increase coverage, and the federal government will pay the majority of the new cost. Any increases in state Medicaid spending will be small compared to what states would have spent without reform. (May 2010, KFF)

outlines several provisions, such as the expansion of the home- and community-based services state plan option, the community first choice option, and the CLASS program. Implementation of these provisions presents a new opportunity for states to expand access to home- and community-based services in Medicaid. (June 2010, KFF)

looks at health reform’s efforts to employ financial incentives to promote the use of effective health services and discourage the use of marginally effective services. Under reform, HHS will study the effectiveness of wellness programs, the impact of incentives on consumer behavior, and the effectiveness of different types of rewards to ensure that these incentives not only control costs, but also improve the quality of care. (May 2010, Mathematica)

describes some of the report’s key findings and clears up some of the most common misconceptions about the report. It explains that the actuary’s report does not contradict the earlier CBO report, but rather supports its findings. For example, both reports found that reform will expand health coverage to more than 30 million people and slow the growth of health care costs. (5/17/10, CBPP)

A New Era in American Health Care: Realizing the Potential of Reform

Outlines the key features of the new reform law, discusses who will be most helped and how, and describes the ways in which the health care system will begin to provide more patient-centered, accessible, and coordinated care to all Americans. Through a pragmatic mix of public and private financing, the new Patient Protection and Affordable Care Act will expand health care coverage, establish health insurance market rules that protect individuals and families, and begin to transform the health care system by encouraging greater value and efficiency. (6/17/10, Commonwealth Fund)

Childless Adults Who Become Eligible for Medicaid in 2014 Should Receive Standard Benefits Package

"Among those who will qualify for Medicaid when the program is expanded nationwide to 133 percent of the poverty line in 2014 are poor and low-income adults who do not have a disability or live with an eligible child, a group that is uninsured at higher rates and has greater health care needs than other uninsured groups. The health reform law allows states to provide newly eligible Medicaid beneficiaries either with the regular Medicaid benefits package or with a less comprehensive package, including one comparable to employer-sponsored health insurance. Given their greater health needs, uninsured childless adults would be best served by a comprehensive benefits package identical or comparable to the package that Medicaid offers to low-income parents and people who have disabilities. The federal government will pick up the vast majority of the costs of this Medicaid expansion — 100 percent for the first three years and 96 percent overall over the next ten years, so this should be viable for states." (7/6/10, CBPP)

Discusses the ways the new health reform law improves the affordability of insurance for a variety of populations, including the uninsured and the underinsured and older and younger adults. Explores the lesser-known provisions of the Affordable Care Act that emphasize preventive and primary care and reward health care quality. These key features will ultimately push the health care system to deliver more patient-centered, accessible, and coordinated care—improving our experiences in the doctor's office and hospital. (6/29/10, Commonwealth Fund)

summarizes provisions around investing in prevention and public health, expanding access to coverage, and addressing disparities in health care. (May 2010, Families USA)

(provides information on the health reform law and answers frequently asked questions about some of the most significant elements of the health reform law for Latinos in Spanish.) (2010, National Council of La Raza)

Health Reform: How Consumers Will Be Affected

This series of brief reports funded by the Robert Wood Johnson Foundation explores the effects health reform will have on consumers, state governments, the economy, and health care costs. The latest reports look at how different groups of health care consumers will be affected. In these briefs, Urban Institute researchers focus on young adults, children, seniors, and those who get their insurance from individual or small-group markets. (7/6/10, RWJF)

Developing Innovative Payment Approaches: Finding the Path to High Performance
T

he Center for Medicare and Medicaid Innovation, created by the new health reform law, has a mandate to develop innovative payment models to improve health care delivery. To achieve higher quality and slower cost growth, the new center should be prepared to try a variety of approaches that will encourage and reward more integrated care across the health care continuum and work with other public programs and private payers and purchasers to provide consistent incentives for providers and patients. This paper addresses several issues related to facilitating the process of identifying, developing, implementing, and monitoring new initiatives, while recognizing the need to maintain the fiscal integrity of the Medicare program and to focus on new initiatives that show promise to improve quality and control costs. (6/8/10, Commonwealth Fund)

U.S. Approaches to Physician Payment: The Deconstruction of Primary Care

The authors explore the history of primary care physician reimbursement and the current system within that context, and illustrate why physician payment mechanisms are "inadequate for even basic primary care services, let alone the fully implemented medical home." They argue that new, hybrid payment models combining the best features of the standard approaches "will likely be required to restore primary care to its proper role in the U.S. health care system and to promote and sustain the development of patient-centered medical homes."(6/3/10, Commonwealth Fund)

It didn't weigh in directly on the historic health care law, but the Medicare Payment Advisory Commission (MedPAC) had no small impact on the legislation, making recommendations that Democrats seized on to cut Medicare spending and help pay for coverage of the uninsured. Now the commission's impact could be felt once again—if Congress embraces its new recommendations to change the training of doctors. (6/21/10, Commonwealth Fund)

Health and Human Services (HHS) officials announced they'll devote $250 million to training for primary care providers needed to treat Americans newly insured under the health care law and aging baby boomers. (6/21/10, Commonwealth Fund)

During a slow-moving political storm marked by what Harvard pollster Robert Blendon calls "Level Four" anger, the last thing Democratic candidates want to face in September is 11 million angry seniors. But when seniors in Medicare Advantage—the popular program of private health care plans in Medicare—open their mail this fall and find out how their coverage will change next year, they won't be happy. (6/21/10, Commonwealth Fund)

Newly enacted national health reform will begin, almost immediately, to transform the U.S. health care system in ways large and small. The changes will increase the number of people with health insurance, and affect how many of us obtain coverage, how care is paid for and delivered, and how it is regulated. The report answers key questions about health reform for journalists and others and provides a timeline of reform milestones. (5/13/10, Commonwealth Fund supplement to the Columbia Journalism Review)

concludes that significant payment and system reform provisions in the Patient Protection and Affordable Care Act will begin to realign incentives within the health care system and reduce cost growth far in excess of that predicted by the Congressional Budget Office and the Centers for Medicare and Medicaid Services' Office of the Actuary. The analysis finds that the health reform law will result in: total reductions in health care spending of $590 billion from 2010 to 2019; a reduction in the annual growth rate in national health expenditures from 6.3 percent to 5.7 percent from 2010 to 2019; savings of nearly $2,000 on annual health care premiums for the typical family by 2019; a reduction in the deficit of up to $400 billion over 10 years; and Medicare savings of $524 billion. (5/21/10, Commonwealth Fund)

Families USA examines the number of Americans diagnosed with pre-existing conditions, who—absent reform—would be at risk of being denied coverage in the individual insurance market. To better understand the effect that health reform will have in Florida, Families USA also released a state-specific report that reveals the number of Floridians with pre-existing conditions who will benefit from reform in each age, racial, and income group.

details the provisions that go into effect during the first two years. Some of the early changes include requiring new health plans to eliminate cost-sharing for preventive services, create internal and external appeals processes, and ban pre-authorization requirements for emergency services. (4/30/10, Health Affairs)

"Under the new health reform law, people of modest means will get help paying for health insurance premiums and ‘cost-sharing’ expenses – costs that people with insurance have to pay out-of-pocket like co-payments for doctor visits and hospital care – beginning in 2014. This help will come in the form of credits that will be available in the new health insurance exchanges." (5/19/10, CBPP)

The analysis of the health reform legislation prepared by the chief actuary of the Centers for Medicare & Medicaid Services (CMS) has been widely misrepresented and misunderstood. For example, the actuary does not estimate that health reform will increase the federal deficit nor that health reform will cost more than CBO estimates. This brief paper explains some of that report’s key findings and clears up some of the most common misunderstandings. (5/17/10, CBPP)

"As of 2008, the number of uninsured young adults between the ages of 19 and 29 was nearing 14 million, representing three of every 10 uninsured persons in the United States," write the authors about provisions in the Patient Protection and Affordable Care Act of 2010. After reviewing historical data and detailing the new law, authors of the brief conclude: "Young adults will benefit substantially from the ability to remain on their parent's health plans, an unprecedented expansion in the Medicaid program, new insurance market regulations including bans on lifetime limits and rating based on health status, subsidized private health insurance with comprehensive benefits package through the new insurance exchanges, and employer penalties for not offering health insurance" (Collins and Nicholson, 5/21/10, Commonwealth Fund)

"In 2014, most uninsured young adults will either qualify for Medicaid or will be eligible for subsidies for coverage they purchase in a health insurance Exchange. The high cost of coverage is currently a major hurdle for young adults looking for coverage, and the expansion of Medicaid and the subsidies in the Exchanges are designed to make affordable coverage available to more uninsured young adults in 2014. ... Gaining health insurance will extend medical care and provide additional financial security to young adults as they begin their adult lives" (5/13/10, KFF)

"Under the health reform law, young adults up to their 26th birthday can obtain health coverage through their parents’ health insurance plans. This marks an important shift from the rules in effect now, under which young adults usually lose access to their parents’ coverage once they turn 19 or graduate from college. This brief explains the details and the impact of the new policy." (6/9/10, CBPP)

according to guidance issued by the Internal Revenue Service. Employers with "cafeteria plans," which allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits, can allow employees to immediately make pre-tax contributions to provide coverage for children under age 27, even if the cafeteria plan has not yet been amended to cover these individuals. Plan sponsors then have until the end of 2010 to amend their cafeteria plan language to incorporate the change. The tax benefit applies to various workplace and retiree health plans, and to individuals who qualify for the self-employed health insurance deduction on their federal income tax return. (4/2/8/10, AHA News Now)

The new health reform law gives new options to uninsured Americans under the age of 26. Beginning in September 2010, all health plans that provide dependent coverage for children must extend benefits to adult children who meet certain eligibility criteria. The right to stay on a parent’s plan will be especially helpful to young adults who are having difficulty finding or affording health coverage in the current economy. Although this provision of the law has not technically gone into effect yet, many health plans are voluntarily offering young adults the opportunity to stay on their parents’ plan now so that people who are graduating from high school or college this spring will not have an interruption in coverage. (May 2010, Families USA)

The Patient Protection and Affordable Care Act, the health reform law that was signed by President Obama in March, is designed to provide quality and affordable health care to all Americans by expanding health coverage, improving quality, and reducing costs. The new law also provides a critical foundation for addressing racial and ethnic health disparities through a number of key provisions—both those that will affect everyone but have a disproportionate impact on communities of color, as well as those that are designed specifically to eliminate health disparities. This brief provides a summary of those provisions. (May 2010, Families USA)

The new law offers critical protections for the millions of Americans who have pre-existing conditions today—as well as for those who are healthy now but who may develop a health problem as they grow older. As a result of health reform, no American with a pre-existing condition will be denied coverage, charged a higher premium, or sold a policy that excludes coverage of essential health benefits simply because he or she has a pre-existing condition. This report takes a closer look at the number of Americans with diagnosed pre-existing conditions who, absent reform, would be at risk of being denied coverage in the individual insurance market. The uninsured and those who do not have access to job-based coverage are at greatest risk, but even those who now have coverage at work could be at risk if they lose or leave their jobs and have to find coverage in the individual market. (May 2010, Families USA)

The White House is looking for good news to spread these days when it comes to the new health care law, and found it in the form of a study from Hewitt Associates. Hewitt, a consulting firm, said it conducted a survey that found that most employers who offer retiree health benefits plan to participate in a new program that would offset their costs for early retiree medical claims. (6/1/10, Commonwealth Fund)

Through demographic change and the economic downturn—and regardless of reform—the public-sector share of health spending in 2010 will exceed 50 percent for the first time. What do we do now? (5/4/10, H&HN Online)

New estimates show that the health reform law could reduce annual growth in health care spending from 6.3 percent to 5.7 percent over the next decade—a savings of $590 billion—while lowering annual premiums by nearly $2,000 for the typical family and extending coverage to 32 million previously uninsured individuals by 2019. The analysis concludes that significant payment and system reform provisions in the Patient Protection and Affordable Care Act will begin to realign incentives within the health care system and reduce cost growth to a greater extent than predicted by the CBO and the CMS Office of the Actuary. (5/21/10, Center for American Progress)

New CBO Estimate Raises Cost of Health Reform Legislation
The director of the Congressional Budget Office said that the health care reform legislation could cost, over the next 10 years, $115 billion more than previously thought, bringing the total cost potentially to more than $1 trillion. CBO revised the figure due to estimated discretionary costs to federal agencies as they implement the new health care reform legislation - such as administrative expenses for the IRS and DHHS - and the costs for a "variety of grant and other program spending for which specified funding levels for one or more years are provided in the act." The new figure is based on estimates of how Congress will decide to spend money. CBO cautions that lawmakers could decide to spend less. (5/12/10, AHA News Now)

New Report on How Health Care Reform Will Help Prevent and Reduce Obesity
There’s a new report out from the Center for American Progress, entitled, Confronting America’s Childhood Obesity Epidemic – How the Health Care Reform Law Will Help Prevent and Reduce Obesity. This report highlights provisions with “the potential to address childhood obesity,” including nutrition labeling in fast food restaurants, the childhood obesity demonstration program, and community transformation grant provisions. (May 2010, Center for American Progress)

In a new policy brief, the near-term effects of the Patient Protection and Affordable Care Act are examined and enumerated, providing context for key immediate reforms to the private health insurance market that will take effect in 2010 and 2011. Early insurance market reforms are associated with two goals of health care reform: (1) reducing barriers to health insurance and (2) improving the availability of information in the health care marketplace. (5/4/10, Health Affairs/RWJF)

Key Health Insurance Market Reforms Not Achievable Without an Individual Mandate

Some opponents of health reform argue that the new law’s individual mandate — the requirement that individuals must have health coverage or face a penalty — should be repealed but the law’s most popular insurance market reforms kept in place. These reforms will bar insurers from denying coverage to people with pre-existing conditions, charging higher premiums based on a person’s health status or gender, or placing annual or lifetime caps on covered benefits. This approach would be doomed to fail. An individual mandate is essential to the success of insurance market reforms and to keeping premiums affordable. (5/4/10, CBPP)

Making Health Care More Affordable: The New Premium and Cost-Sharing Credits

Under the new health reform law, people of modest means will get help paying for health insurance premiums and “cost-sharing” expenses – costs that people with insurance have to pay out-of-pocket like co-payments for doctor visits and hospital care – beginning in 2014. This help will come in the form of credits that will be available in the new health insurance exchanges. By providing low- and moderate-income families with affordable health insurance options, the premium and cost-sharing credits will reduce the number of people without health coverage and allow such families to comply with the new requirement to obtain coverage starting in 2014. Without these subsidies, the new requirement would place undue burdens on low- and moderate-income people who could otherwise face the choice of paying for basic necessities such as housing and food, or purchasing insurance. This brief explains who is eligible for premium and cost-sharing credits and how they work. (5/19/10, CBPP)

Health Reform Is a Good Deal for States

Contrary to claims that the health reform law’s Medicaid expansion will place an unaffordable burden on states, the federal government will shoulder nearly all of the cost of the expansion, which will cover 16 million low-income children and adults while raising state Medicaid spending by just 1.25 percent compared to what states were projected to spend without health reform. And health reform as a whole, by greatly expanding health coverage, will result in some reduction in states’ costs for providing care to the uninsured. (4/26/10, CBPP)

CLASS: A New Voluntary Long-Term Care Insurance Program

The new health reform law establishes a federal, voluntary long-term care insurance program, known as Community Living Assistance Services and Supports, or CLASS. This brief paper describes the need for CLASS, explains its benefits and financing, and corrects some misconceptions about the program's effect on the federal budget. (4/16/10, CBPP)

The recent health reform legislation requires larger employers to share the responsibility for assuring that their employees have health coverage. Large firms that employ full-time workers who obtain subsidized health insurance in the new health insurance exchanges — rather than employer-sponsored coverage — will be required to pay a penalty. (5/14/10, CBPP)

"The new health reform law will extend coverage to over 30 million uninsured Americans and provide important consumer protections to tens of millions of insured Americans whose coverage may have critical gaps. These coverage expansions will be more than paid for by specific reductions in spending for Medicare, Medicaid, and other federal programs and by additional tax revenues." (5/10/10, CBPP)

"The new health reform law includes numerous Medicare provisions that will take effect over the next five years. Within several years, for example, some payments to Medicare Advantage plans will be cut, but those plans will be eligible for bonuses if they can show that they provide high-quality health care." The brief outlines "many other provisions [that] take effect as soon as this year" (5/20/10, Health Affairs)

Health Care Study Calls Risk Pool Money Lacking
The new health care law does not allocate nearly enough money to cover the estimated 5.6 million to 7 million Americans with pre-existing medical conditions who will qualify for temporary high-risk insurance pools, according to a report. (5/27/10, NY Times)

The IRS shipped postcards to more than 4 million small-business owners in April with the kind of good news rarely expected from the agency — a new tax credit is available if the businesses help pay workers' health insurance premiums. The credit is one piece of the new health care law that kicks in immediately. (5/7/10, Commonwealth Fund)

The more that current outlays by health insurers fall into the "medical" category, the easier it will be for them to meet new minimums in the health care overhaul dictating how much of every premium dollar must go for medical care and limiting how much can go for profit and administrative expenses. (5/7/10, Commonwealth Fund)

discusses changes made by the new health reform law, including the overdue reauthorization of the Indian Health Care Improvement Act (IHCIA), and explains how these changes will benefit these two groups. (May 2010,

provides information on the health reform law and answers frequently asked questions about elements of the health reform law that are significant for Latinos. (National Council of La Raza)

Major opportunities for innovation in health payments are at hand that could pave the way for higher quality care combined with cost savings, but the results may not be clear until years from now, members of a panel on payment innovation in the new health care law said. (5/10/10, Commonwealth Fund)

Medicaid Coverage and Spending in Health Reform: National and State-By-State Results for Adults at or Below 133% FPL

This analysis, performed by the Urban Institute for the Kaiser Commission on Medicaid and the Uninsured, shows that the expansion of Medicaid under the health reform law will significantly increase the number of people covered by the program and reduce the uninsured in states across the country, with the federal government picking up the vast majority of the cost. The analysis is among the first to show for all 50 states and DC the distribution of new Medicaid enrollees and costs, as well as the impact on the uninsured. Health reform will offer Medicaid coverage to millions of low-income adults for the first time and help establish a national floor for Medicaid eligibility that contrasts sharply with the wide variation in eligibility across state Medicaid programs today. (5/26/10, KFF)

New Brief Details How Health Reform Law Affects Medicare

Medicare is the largest health insurance program in the country, and since Congress passed the Patient Protection and Affordable Care Act to reform the nation’s health care delivery system, many Americans have wondered what effect the new law will have on the popular program that covers seniors and people with disabilities. a new brief from Health Affairs and the Robert Wood Johnson Foundation explores the reform provisions related to Medicare that will take effect beginning in 2010. (5/20/10, RWJF)

New Law Offers Temporary Aid to Small Firms Seeking Health Insurance for Workers
If you own a small business and are struggling to pay for employees' health insurance, the new health-care law could provide quick financial help. (6/1/2010, KFF)

What The New Health Law Means For You
The new health law signed by President Obama this spring contains the most sweeping changes to the American health system in a generation. (6/2/2010, KFF)

Health Reform Has Liability Insurers Looking at Tort Alternatives

Tort reform advocates say the medical liability system is in need of serious repair, and the federal health reform law -- while not perfect -- offers some tools to help get the job started. (6/7/10, American Medical News)

H ealth-Care Reform to Help Some Soon
Nearly one million U.S. workers will be able to take early advantage of the health-care reform law that extends health insurance coverage to adult children up to age 26, a new Hewitt Associates survey finds. (6/11/2010, Chicago Sun-Times)

Americans May Give Health Care Law a Chance
Anxious backers of President Barack Obama's health care overhaul law are starting to see a flicker of hope. 6/1/10, AP)

The Cost of Health Care Reform May Be Less Than States Fear

"As states complain about the burden of expanding health care to millions of poor Americans under the new federal health-care law, a study released Wednesday suggests their claims may be overstated. The issue is the cost of expanding Medicaid ... and the report from the Kaiser Commission on Medicaid and the Uninsured says states are likely to reap huge benefits for relatively little cost, and may even end up in the black." (5/27/10, Fiscal Times)

Innovation in Medicare and Medicaid Will Be Central to Health Reform's Success

stresses that the new agency, which will begin full-scale operations in 2011, should be inclusive and flexible in developing and implementing payment initiatives and should continuously monitor their impact and rapidly disseminate models that appear to be successful."If health reform is to succeed in improving care and curbing spending, this new center must function like a research and development laboratory for health care delivery, designed to discover, support, and disseminate the best and most innovative ideas.” (6/8/10, Commonwealth Fund)

Developing Innovative Payment Approaches: The Path to High Performance

describes several payment innovations that the new center should introduce to reward more-integrated, high-value care, such as medical homes, accountable care organizations, and bundled payment. (6/8/10, Commonwealth Fund)

The expansion of Medicaid under the new health care law will mean a decrease in the numbers of the uninsured and a significant increase in public coverage, with most of the tab picked up by the federal government, according to a new report. (6/1/10, KFF)

explains why early retiree insurance is important, how the program will work, and answers some frequently asked questions, including about what types of plans are eligible and what types of services will qualify for reimbursement. (The White House)

explains how Medicaid works today and answers some key questions about Medicaid in health reform. Some questions include how the expansion will be financed, what benefits will be covered, and what will happen to CHIP. (April 2010, KFF)

explains why the Medicaid expansion included in health reform is a good deal for states. In its first five years, the expansion will add only 1.25 percent to what states were already projected to spend on Medicaid over the same period. Plus, expanding health coverage will help states reduce spending on other services for the uninsured. (4/20/10, CBPP)

reports on interviews with Medicaid program directors and other experts about how to make the most of the upcoming Medicaid expansion. All those interviewed saw the expansion as a strategic moment to recast Medicaid as an affordable program for working people and families and viewed strong enrollment as essential to fulfilling reform’s broader coverage goals. (April 2010, KFF)

describes the major components of the CLASS program, including eligibility, benefits, financing, and its interaction with Medicaid. Going forward, it will be important to monitor the affordability of premiums, the adequacy of benefits, and participation rates, as these factors will determine the solvency of the program. (April 2010, KFF)

CLASS: A New Voluntary Long-Term Care Insurance Program

"The new health reform law establishes a federal, voluntary long-term care insurance program, known as Community Living Assistance Services and Supports, or CLASS. This brief paper describes the need for CLASS, explains its benefits and financing, and corrects some misconceptions about the program’s effect on the federal budget." (4/16/10, CBPP)

Employer Responsibility in Health Reform

"The recent health reform legislation requires larger employers to share the responsibility for assuring that their employees have health coverage. Large firms that employ full-time workers who obtain subsidized health insurance in the new health insurance exchanges — rather than employer-sponsored coverage — will be required to pay a penalty."The employer responsibility requirement is designed to strengthen the system of employer-sponsored insurance, which is the primary source of health coverage for nonelderly Americans. It encourages firms that now offer health insurance to continue doing so, and it encourages firms that do not offer coverage to start. Covering as many people as possible through employer-sponsored insurance will hold down the cost of health reform to taxpayers." (4/21/10, CBPP)

discusses how the CLASS Act includes a voluntary insurance program that will help people afford the long-term services they need so they can remain living in the community longer. Many people who currently require long-term care receive benefits through Medicaid. However, Medicaid is structured to favor institutional care over home- and community-based care. (April 2010, Families USA)

discusses how the CLASS Act will allow states to create new options for Medicaid beneficiaries to obtain home-and community-based services and how it will create incentives for states to restructure their Medicaid programs to offer home-and community-based services. (April 2010, Families USA)

Health Insurers Shifting Costs Ahead of Law: Report
Some of the largest U.S. health insurers are changing their accounting practices to book administration costs as medical costs in an attempt to circumvent new industry reforms, according to a U.S. Senate panel's report released on Thursday. (4/15/10, Reuters)

Poll: Resistance to Health Care Bill Strong
Opposition to President Barack Obama's health care law jumped after he signed it - a clear indication his victory could become a liability for Democrats in this fall's elections. (4/15/10, AP)

explains that passing important insurance reforms without a mandate would encourage people to wait until they are sick to buy coverage. The insurance pool would then have primarily older, sicker people, which would raise premiums for everyone. The individual mandate will help get healthy people into the health insurance market, which would keep premiums at a more reasonable level. (5/4/10, CBPP)

explains why Congress has the authority to enact the individual mandate and why it is an essential part of reform. Efforts to repeal the law will more likely weaken public support and create obstacles to implementation, rather than actually repeal it. (4/7/10, CBPP)

provides a list of the key provisions in health reform and when they will be implemented. Some of the earliest provisions to be implemented include allowing young adults to stay on their parents’ plans until they are 26 and providing tax credits to small employers that provide health coverage. (April 2010, KFF)

provides an overview of the new payment policy and analyzes data from 2009 to estimate the impact it will have on payments to Medicare Advantage plans. The report estimates that the overall impact will be modest. (April 2010, GWU)

provides an overview of the policy changes organized into five categories: national insurance for long-term services and supports (LTSS), Medicaid options and incentives to expand LTSS, chronic care coordination, nursing home reforms, and other LTSS provisions. (April 2010, National Academy for State Health Policy)

Federal Government Will Pick Up Nearly All Costs of Health Reform’s Medicaid Expansion

"Health reform’s critics argue that states will bear a significant share of the costs of the new law’s Medicaid expansion, placing an unaffordable financial burden on states. The argument does not withstand scrutiny. In its first five years, the Medicaid expansion will add just 1.25 percent to what states were projected to spend on Medicaid over that period in the absence of health reform, while providing health coverage to 16 million more low-income adults and children." (4/20/10, CBPP)

The Sustainable Growth Rate Formula and Health Reform

"Some critics of the recently enacted health reform legislation contend that the Congressional Budget Office (CBO) cost estimate understates the legislation’s true cost, because the legislation does not include a fix to Medicare’s flawed sustainable growth rate (SGR) payment formula for physicians. Since such a fix is necessary and certain to be enacted, these critics contend, its cost should be considered part of the cost of the health reform legislation. That claim, however, is mistaken. The cost of fixing the SGR formula is entirely unrelated to health reform, as is easily seen: The cost of fixing the formula would be incurred in full even if health reform legislation had not passed or were repealed." (4/21/10, CBPP)

This report highlights all the people and communities that will be helped within the first year of passing the health reform law. From people with pre-existing conditions to community health centers, millions stand to gain within the first 12 months. (April 2010, Families USA)

Many provisions within the new health reform law take affect within the first 90 days after enactment. In order to ensure the new law is implemented effectively and in the most consumer-friendly way, we have created a “to-do” list for state advocates. (April 2010, Families USA)

Advocates’ Toolkit: No Need to Wait Until 2014; States Can Cover Low-Income Adults in Medicaid Now

"The new health reform law includes a new minimum Medicaid eligibility standard that will allow millions of uninsured low-income adults to qualify for Medicaid?. While states do not have to expand Medicaid until 2014, a new coverage option included in PPACA allows states to cover low-income adults now." (4/20/10, CBPP)

The new health reform law calls for an expansion of Medicaid by January 2014, but starting in April of this year, states are able to phase in this expansion through a state amendment process. This report discusses how states can go about expanding their Medicaid programs early and why they should. (May 2010, Families USA)

Since the signing of the health reform bill into law, opponents have been out in an effort to repeal or weaken the law. This report highlights opponents’ efforts as nothing more than political ploys and counters their misinformation with facts. (April 2010, Families USA)

The new law expands health insurance coverage to an estimated 32 million uninsured Americans and strengthens existing coverage. This summary describes major changes in health coverage as a result of health reform, including Medicaid and CHIP coverage, the new affordability provisions, the exchanges, the new individual and employer responsibility requirements, improvements in private market coverage, and changes to Medicare and long-term services and supports. This is not a comprehensive summary of the entire health reform law. (April 2010, Families USA)

These reports discuss major gaps in state health coverage systems—gaps that allow insurers to discriminate against people with pre-existing conditions, to charge premiums that are unaffordable for families and businesses, and to make obtaining care difficult even for those who have insurance. We also discuss the significant ways that health reform addresses these gaps, providing help to residents across the states. (March 2010, Families USA)

The Alliance for Health has produced a wonder list of acronyms and a glossary for health care reform/PPACA.

As usual, Jeanne hasn't left it alone... her comments and additions/changes are indicated in bold green.

Acronyms

The following list is a guide to some of the more common acronyms and abbreviations for health care agencies, terms and programs. A number of these acronyms and abbreviations are defined in the glossary.

ACF - Administration for Children and Families
~~ACA – Affordable Care Act~~ -- see Patient Protection and Affordable Care Act ("PPACA")
ACO – Accountable Care Organization
ADL - Activities of Daily Living
AHRQ - Agency for Healthcare Research and Quality
ALF - Assisted Living Facility
ASO - Administrative Services Only Agreement
CAH - Critical Access Hospital
CBO - Congressional Budget Office
CCRC - Continuing Care Retirement Community
CDC - Centers for Disease Control and Prevention
CHC - Community Health Center
CHIP – Children’s Health Insurance Program (formerly State Children’s Health Insurance Program)
CLASS Act – Community Living Assistance Services and Support Act
CMS - Centers for Medicare and Medicaid Services
COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985
CPI - Consumer Price Index
CRS - Congressional Research Service
DME - Durable Medical Equipment; Direct Medical Education Payment
DRA - Deficit Reduction Act of 2005
DRG - Diagnosis-Related Group
DSH - Disproportionate Share Hospital Adjustment
EHR – Electronic Health Record
EMR – Electronic Medical Record
EOL – End-of-life
EPSDT - Early and Periodic Screening, Diagnostic and Treatment Services
ERISA - Employee Retirement Income Security Act
ESI – Employer -Sponsored Insurance
ESRD - End-Stage Renal Disease
FDA - Food and Drug Administration
FEHBP - Federal Employees Health Benefits Program
FFS - Fee-for-Service
FMAP - Federal Medical Assistance Percentage
FPL - Federal Poverty Level or Line
FQHC - Federally Qualified Health Center
FSA – Flexible spending account/arrangement
GAO - Government Accountability Office
GME - Graduate Medical Education Payment
HCBS - Home and Community-Based Services
HCERA - Health Care and Education Reconciliation Act of 2010
HCFA - Health Care Financing Administration
HCTC – Health Coverage Tax Credits
HEDIS - Health Plan Employer Data and Information Set
HHA - Home Health Agency
HHS - Department of Health and Human Services
HI –Medicare Hospital Insurance Trust Fund (also known as Part A)
HIT – Health Information Technology
HIFA - Health Insurance Flexibility and Accountability Demonstration Initiative
HIPAA - Health Insurance Portability and Accountability Act
HMO - Health Maintenance Organization
HOA - Health Opportunity Account
HPSA - Health Professional Shortage Area
HRA - Health Reimbursement Arrangement/Account
HRSA - Health Resources and Services Administration
HSA - Health Savings Account
IADL - Instrumental Activities of Daily Living
ICF/MR - Intermediate Care Facility for the Mentally Retarded
IGT - Intergovernmental Transfer
IHS - Indian Health Service
IME - Indirect Medical Education Adjustment
IOM – Institute of Medicine
IPA - Independent Practice Association
JCAHO – former abbreviation for The Joint Commission
LTC - Long-Term Care
MA-PD - Medicare Advantage Prescription Drug
MCH - Maternal and Child Health
MCO - Managed Care Organization
MedPAC - Medicare Payment Advisory Commission
MEWA - Multiple Employer Welfare Association
MHPA - Mental Health Parity Act
MLR – Medical Loss Ratio
MMA - Medicare Prescription Drug, Improvement and Modernization Act of 2003
MRDD - Mental Retardation and/or Developmental Disability
MSA - Medical Savings Account
MSP - Medicare Savings Program
NAIC – National Association of Insurance Commissioners
NCQA - National Committee for Quality Assurance
NDEP - National Diabetes Education Program
NIH - National Institutes of Health
NP/RNP - Nurse Practitioner (Registered)
OCIIO – Office of Consumer Information and Insurance Oversight
ONC - Office of the National Coordinator for Health Information Technology
OMB - Office of Management and Budget
P4P - Pay for Performance
PACE - Program of All-Inclusive Care for the Elderly
PBM - Pharmacy Benefit Manager
PCCM/PCI/PCC - Primary Care Case Management, Initiative, or Clinician
PCMH - Patient-Centered Medical Home
PCORI – Patient- Centered Outcomes Research Institute
PDP - Prescription Drug Program
PHS - U.S. Public Health Service
POS - Point-of-Service Plan
PPACA – Patient Protection and Affordable Care Act (also referred to incorrectly as ACA by those who should know better <sigh>)
PPO - Preferred Provider Organization
PPS - Prospective Payment System
PSO - Patient Safety Organization
QALY - Quality-Adjusted Life Year
QIO - Quality Improvement Organization
QMB - Qualified Medicare Beneficiary
RBRVS - Resource-Based Relative Value Scale
RVS - Relative Value Scale
SAMHSA - Substance Abuse and Mental Health Services Administration
SBHP - Small Business Health Plan
S-CHIP - State Children's Health Insurance Program (now CHIP—Children’s Health Insurance Program)
SGR - Sustainable Growth Rate
SHIP - State Health Insurance Assistance Program
SLMB - Specified Low-Income Medicare Beneficiary
SMI – Medicare Supplementary Medical Insurance (also known as Part B)
SNF - Skilled Nursing Facility
SSA - Social Security Administration
SSDI - Social Security Disability Income
SSI - Supplemental Security Income
STAR*D - Sequenced Treatment Alternatives to Relieve Depression
TANF - Temporary Assistance for Needy Families
TMA - Transitional Medical Assistance
TPA - Third Party Administrator
UPL - Upper Payment Limit
UR - Utilization Review

Glossary Terms
Terms underlined in definitions are defined in this glossary.

A
ACCOUNTABLE CARE ORGANIZATION (ACO) -- According to Dr. Elliott Fisher of Dartmouth Medical School, an originator of the concept, an ACO is a provider-led organization whose mission is to manage the full continuum of care and be accountable for the overall costs and quality of care for a defined population. Under the health reform law (PPACA), HHS is to establish an ACO demonstration by January 2012.

ACTIVITIES OF DAILY LIVING (ADL) - An index or scale which measures a patient's degree of independence in bathing, dressing, using the toilet, eating and transferring (moving from a bed to a chair, for example). Used to determine need for long-term care and eligibility for payments for care by insurers.

ACUTE CARE - Medical services provided to treat an illness or injury, usually for a short time. Contrast with Chronic Care.

ADMINISTRATIVE SERVICES ONLY (ASO) AGREEMENT - A contract typically between an insurance company and a self-funded plan or group of providers in which the insurance or management company performs only administrative services (billing, plan design, claim processing, marketing, for example) and does not assume any risk. Also see Self-Insurance.

ADVANCEABLE TAX CREDIT - A subsidy to help pay for health insurance that is available when the insurance premium is due, without having to wait until a year-end tax return is filed. Also see Tax Credit.

ADVERSE SELECTION - When a disproportionately high number of individuals in poorer than average health enroll in a health plan.

AFFORDABLE CARE ACT (a shortening of Patient Protection and Affordable Care Act of 2010) - Law enacted in March 2010, phasing in major expansions in insurance coverage, changes in insurance rules, and delivery system changes, phased in over the next several years. (do not use, lazy man's acronym, there are too many ACAs out there, only one PPACA)

AMBULATORY CARE - Medical service provided on an outpatient basis (no overnight hospital stay. Services may include diagnosis, treatment, surgery and rehabilitation.

ANCILLARY CHARGE - The fee associated with additional services performed before, or secondary to, a significant procedure such as surgery. Ancillary charges are for services such as lab work, X-ray or anesthesia. Also, an additional patient charge above the copayment and deductible amount which the covered person is required to pay by the insurer.

ANY WILLING PROVIDER - A requirement - typically a state law - that a managed care organization must accept any properly licensed provider willing to meet the terms of a plan's contract, whether the organization wants or needs that provider. Often described by managed care groups as "anti-managed care" legislation.

APPEAL- A request for review of a denial of coverage of a particular medical service or inadequate payment for services already received. Medicare beneficiaries have the right to appeal in either of these circumstances, whether they are enrolled in traditional Medicare or in a Medicare health maintenance organization. Also see Grievance.

ASSISTED LIVING FACILITY (ALF) - A group residence offering 24-hour assistance to those who may need some help with activities of daily living, but who do not need the level of medical and nursing care offered by skilled nursing facilities.

ASSOCIATION HEALTH PLAN (AHP) - Health insurance arrangement sponsored by business coalitions and trade and professional associations. AHPs operate under states' insurance laws and regulations. Recent legislative proposals would regulate AHPs primarily under federal law. Also see Small Business Health Plan.

B
BALANCE BILLING - A provider's bill to a covered person for charges above the amount paid by the health plan or insurer.

BEHAVIORAL HEALTH SERVICES - Medical services encompassing mental health care and substance abuse treatment.

BIOSURVEILLANCE - Automated monitoring of health data sources of potential value in identifying trends that may indicate an emerging epidemic, whether naturally occurring or the result of bioterrorism.

BLOCK GRANT - A lump sum of money given to a state or local government to be spent for certain purposes. Normally, it is based on a formula, the objectives are broadly defined and the grant's source places relatively few limits on the money's use.

BUNDLING - The use of a single comprehensive charge or payment for a group of related health services. Contrast with Unbundling.

C
CAFETERIA PLAN (Section 125 Plan) – A cafeteria plan provides participants an opportunity to receive certain benefits, such as reimbursement for some out-of-pocket medical expenses, on a pretax basis. It is a separate written plan maintained by an employer for employees that meets the specific requirements of, and regulations of, Section 125 of the Internal Revenue Code.

CAP - See Out-of-Pocket Cap

CAPITATION - Method of payment for health services in which a health care provider is paid a fixed amount for each person on the provider's patient roster, regardless of the actual number or nature of services provided to each person.

CARRIER - An entity which may underwrite or administer a range of health benefit programs. May refer to an insurer or a managed health plan.

CARVE-OUTS - A payer strategy in which a health maintenance organization (HMO) or insurance company isolates ("carves out") a benefit and hires another organization to provide this service. Common carve-outs include behavioral health and prescription drugs. The technique is intended to allow the insurer to better control its costs.

CASE MANAGEMENT - A process where a health plan identifies covered persons with specific health care needs, then devises and carries out for them a plan to achieve the best patient outcome in the most cost-effective manner.

CASE MIX - The mix of patients treated within a particular institutional setting such as a hospital or under a particular health plan. Case mix may be measured by the severity of patients' illnesses or the prospective use of care resources.

CASE MIX ADJUSTMENT - Change in payment to a health plan or provider to avoid overpaying or underpaying where health status or likely use of services varies from average.

CASH AND COUNSELING- A Medicaid program that allows certain Medicaid beneficiaries, frail elders and adults with disabilities to purchase their own personal care and related services. Medicaid provides a monthly allowance, the amount of which is determined after assessing the beneficiary's need for community-based long-term care services. As of October 2011, Cash and Counseling will be replaced by the Community First Choice Option, a provision of the Affordable Care Act that will be available in all states. For more information, see Chapter 9, Long-Term Care.

CATASTROPHIC HEALTH INSURANCE - Health insurance which provides protection against the high cost of treating severe or lengthy illnesses. Such policies cover all or most of medical expenses above a relatively high specified amount.

CATASTROPHIC ILLNESS - A very serious and costly condition that could be life threatening or cause life-long disability and which often involves severe financial hardship.

CATEGORICAL ELIGIBILITY- Medicaid's eligibility pathway for individuals who can be covered. The program's 25+ categories have been organized into five broad groups - children, pregnant women, adults in families with dependent children, individuals with disabilities and the elderly. The Affordable Care Act will expand Medicaid eligibility to all individuals under age 65 with incomes up to 133 percent of the federal poverty level and who are not eligible for Medicare, effective Jan. 1, 2014. For more information, see Chapter 8, Medicaid.

CENTERS OF EXCELLENCE - Health care facilities selected to deliver specific services, often exclusively, based on criteria such as experience, outcomes, efficiency and effectiveness.

CERTIFICATE OF NEED - The requirement that a health care institution obtain permission from an oversight agency before making major changes to its facilities or facility-based services, or before building new facilities.

CHERRY PICKING - The practice of insurance companies taking only those businesses or individuals that are good health risks, and avoiding businesses or people that have higher health risks. Also called “skimming.” Also called "adverse selection," as commercial insurers have become experts at selectively advertising and promoting their products. For example, I live in an area of relatively upscale homes in Arizona owned in many cases by fairly affluent seniors who are active, playing golf and tennis, taking belly-dancing lessons. The big Medicare Advantage (Part C) commercial insurers throw dinner parties to enroll seniors here. Trust me, I'm a lawyer, they don't throw dinner parties in in the inner city. Poor people live there; poor people are also sicker and more likely to actually use the MA plan ... bad for profits. The old anecdotal story about MA plans having their enrollment offices on the second floor of walk-up buildings rings true. If your not healthy enough to navigate a flight of stairs, we don't want you.

CHILDREN'S HEALTH INSURANCE PROGRAM (CHIP) - A program enacted by Congress in 1997 that provides federal matching funds for states to spend on health coverage for uninsured kids. The program is designed to reach uninsured children whose families earn too much money to qualify for Medicaid but are too poor to afford private coverage. Congress initially authorized CHIP for a 10-year period that expired at the end of September 2007. CHIP was reauthorized and enlarged early in 2009. The bill, signed on February 4, 2009, increases CHIP funding by about $32 billion through 2013 to cover an additional 4 million children. The Patient Protection and Affordable Care Act of 2010 requires states to maintain existing income eligibility levels for children in CHIP (and Medicaid) until 2019 and extends funding for CHIP through 2015. Beginning in 2015, states will receive a 23 percentage point increase in the percentage of CHIP funding paid by the federal government, up to a cap of 100 percent. For more information, see Chapter 6, Children's Coverage. Jeanne's Note: An expansion of S-CHIP was vetoed by President George W. Bush in 2007 the bill had modest GOP support then) with the message from W saying: "All Americans have access to health care, all they have to do is go to the hospital emergency room." Ah, such compassionate tea-party conservatism!

CHRONIC CARE - Medical services provided to those with chronic conditions. Contrast with Acute Care.

CHRONIC CONDITION - A condition that is not expected to improve, that lasts a year or longer or recurs, and may result in long-term care needs. Chronic illnesses include Alzheimer's disease, arthritis, diabetes, epilepsy and some mental illnesses.

CLASS ACT - PPACA creates a voluntary LTC insurance program (CLASS) with cash benefits to disabled adults. Neither private health insurance nor Medicare cover basic Long Term Care services. Private LTC coverage is available in the individual insurance market, but policies have high premiums and limited benefits. Many families deplete their resources and are forced onto Medicaid for long-term care. 40% of the people who need LTC are non-elderly with serious disabling conditions. Working-age adults will be able to choose to have premiums deducted from their paychecks to purchase public LTC insurance through CLASS, starting in 2012 or 2013. No one will be required to participate in CLASS. Employers may elect to enroll their workers automatically, but if so, a worker will be able to opt out. The younger the age at which a person enrolls, the lower the premium. Enrollees can continue to participate by paying premiums after they leave the labor force or retire. If they become disabled, enrollees who have contributed for at least 5 years will automatically qualify for help to purchase home-based services, assisted living, or nursing home care.

CLAWBACK- Popular term for "phased-down state contribution" that describes how the federal government is recovering (or "clawing" back, from the states' perspective) money spent on Medicare-covered drugs for persons dually eligible for Medicare and Medicaid. Since January 2006, states have made monthly payments to the federal Medicare program, reflecting the amount of money they spent on prescription drugs for Medicaid-eligible seniors (known as dual eligibles) before the enactment of Medicare Part D. Payments were set at 90 percent of costs in FY 2006, decreasing to 75 percent by FY 2015. However, because of the recession of 2007 – 2009, the federal government reduced the amount each state must pay from Oct. 1, 2008 through the end of 2010.

CLOSED PANEL/CLOSED ACCESS - A term that describes health plans in which enrollees are permitted to receive non-emergency services only through specified providers. Group- and staff-model HMOs are examples of closed panel plans.

COINSURANCE- A portion of the bill for a medical service that is not covered by the patient's health insurance policy and therefore must be paid out of pocket by the patient. Coinsurance refers to a percentage, e.g., 10 percent of the total charge up to a specified maximum. Contrast with Copayment, which is stated as a flat amount, e.g., $5 per office visit.

COMMUNITY HEALTH CENTER (CHC) - Organization providing comprehensive primary care to medically underserved populations, regardless of their ability to pay. These public and non-profit entities receive federal funding under Section 330 of the Public Health Service Act, as amended.

COMMUNITY RATING - A method for setting premiums at the same price for everyone, based on the average cost of providing health services to all. The premium is not adjusted for the individual beneficiary's medical history or likelihood of using medical services. Contrast with Experience Rating and Modified Community Rating.

COMPARATIVE EFFECTIVENESS - Research that compares clinical outcomes, or the “clinical effectiveness,” of alternative therapies for the same condition. Many analysts believe that comparative effectiveness research evidence can lead to better health care decisions and thus to improved quality of care, improved efficiency, and ultimately, to the potential for cost savings throughout the health system.

CO-MORBIDITIES - Medical conditions that exist at the same time as the primary condition in the same patient (e.g., hypertension is a co-morbidity of many conditions such as heart disease, end-stage renal disease and diabetes).

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985 (COBRA) - This law includes one part which entitles former employees of companies with 20 or more workers to continue to receive coverage under the group plan for up to 18 months after leaving, if they pay the full cost of the coverage. Click here for more information.

CONSUMER-DIRECTED OR CONSUMER-DRIVEN HEALTH PLAN - Includes plans that are coupled with health spending accounts into which employers or individuals contribute pre-tax dollars to be used for health care purchases. These mechanisms aim to change employees from receivers of health care into purchasers by having them participate more fully in health care and cost decisions. Also see Health Reimbursement Arrangement and Health Savings Account.

CONSUMER PRICE INDEX (CPI)- A statistical measure of the annual change in cost to workers of purchasing a market basket of goods and services. It is expressed as a percentage of the cost of these goods and services during a base period. CPI is also known as retail price index or cost-of-living index.

CONTINUING CARE RETIREMENT COMMUNITY (CCRC)- Housing community designed to provide different levels of long-term care under contract. Services usually include home care, support in an assisted living facility and care in a nursing home.

CONVERSION PRIVILEGE - Right given to an insured person under a group insurance contract to change coverage, without evidence of medical insurability, to an individual policy upon termination of the group coverage. Conversion privileges are guaranteed to many workers under the Consolidated Omnibus Budget Reconciliation Act of 1985, and to others under the Health Insurance Portability and Accountability Act of 1996.

COPAYMENT – A flat amount paid out of pocket per medical service, e.g., $5 per office visit.

COST SHARING - Any out-of-pocket payment the patient makes for a portion of the costs of covered services. Deductibles, coinsurance, copayments and balance bills are types of cost sharing.

COST SHIFTING - The practice by which a seller of a health service, such as a hospital, increases charges for some payers to offset losses due to uncompensated or indigent care or lower payments from other payers.

CRITICAL ACCESS HOSPITAL (CAH) - Limited-service hospital located in rural areas and meeting certain size, location and other requirements. CAHs are subject to less rigorous staffing standards and receive reimbursement from Medicare based on their actual costs, rather than by the more common (and less favorable) payment tied to average costs for treating a particular diagnosis.

CROSS-SUBSIDY - The concept of certain purchasers paying more for medical services than they otherwise would so that others can pay less (or nothing at all), or another activity can be funded. In the U.S. health system, this mechanism has been used to pay for medical services for the poor and uninsured, medical education and research.

CROWD-OUT - A phenomenon whereby public health coverage programs encourage some employers to drop health coverage, urging their employees instead to take advantage of the subsidies available to them in the public program.

CUSTODIAL CARE - Long-term care services which do not seek to cure, provided during periods when the medical condition of the patient is not changing or does not require continued delivery by medical personnel.

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DEDUCTIBLE - A fixed amount, usually expressed in dollars in the form of an annual fee, that the beneficiary of a health insurance plan must pay directly to the health care provider before a health insurance plan begins to pay for any costs associated with the insured medical service. Contrast with Copayment.

DEFENSIVE MEDICINE - The practice of health care providers ordering tests that may not be necessary to over-protect themselves from potential malpractice lawsuits. Said to be a major cause of high health care costs.

DEFICIT REDUCTION ACT OF 2005 (DRA) - The DRA made significant changes to the Medicaid program - for example, allowing states to increase premiums and cost-sharing for families and to base benefits on private plans. The law also tightened long-term care asset transfers and capped home equity at $500,000. A DRA provision effective July 1, 2006, requires Medicaid beneficiaries to show proof of citizenship upon applying for or renewing their benefits. For more information, see www.kff.org/medicaid/7465.cfm.

DEFINED BENEFIT - A health insurance model used by an employer or government program where specified health services covered under the plan are standardized and guaranteed. The cost of providing the standard benefits may fluctuate. One example of a defined benefit plan is Medicare. Contrast with Defined Contribution.

DEFINED CONTRIBUTION - A health benefit model used by employers or government programs where health services covered may fluctuate based on choice of plan, but the employer or government contributes a set amount (percentage or dollar amount) towards the purchase of the selected health plan. A defined contribution plan limits the financial liability of employers or the government, because the contribution is defined, or fixed. Contrast with Defined Benefit.

DIAGNOSIS-RELATED GROUP (DRG) - A way of determining payments to hospitals, used under Medicare's prospective payment system (PPS) and by some other public and private payers. The DRG system classifies patients into groups based on the principal diagnosis, treatments and other relevant criteria. Hospitals are paid the same for each case classified in the same DRG, regardless of the actual cost of treatment.

DIRECT CONTRACTING - A method for providing health services to covered employees and their families, by group providers who contract directly with an employer, thereby cutting out "the middleman" or insurance carrier.

DIRECT GRADUATE MEDICAL EDUCATION PAYMENT - Medicare payment to approved teaching hospitals to help cover the direct costs of training residents to become board-eligible in their field. Hospitals receive full payments to help cover resident salaries, fringe benefits and compensation for attending physicians, for residents in their initial residency period (the minimum number of years required to qualify for board certification in that specialty) and half payments for residents who have completed their initial training and are sub-specializing. Direct GME payments vary significantly among hospitals and depend on the number of residents at the hospital, the hospital specific per resident amount and the size of the hospital's inpatient Medicare population. For more information, see www.cogme.gov. Also see Graduate Medical Education Payment and Indirect Medical Education Adjustment.

DIRECT-TO-CONSUMER (DTC) ADVERTISING - The use of mass media (television, newspapers, magazines, etc.) and other forms of reaching the general public. DTC advertising is often used by the pharmaceutical industry to promote their products. These advertisements must meet certain standards under federal regulations.

DISPROPORTIONATE SHARE HOSPITAL (DSH) ADJUSTMENT - An increased payment under Medicare's prospective payment system or under Medicaid for hospitals that serve a relatively large number of low-income uninsured patients.

DOUGHNUT HOLE - Coverage gap in Medicare Part D prescription drug coverage. For 2010, the beneficiary pays for the first $310 of prescription drug costs out of pocket. Then Medicare pays 75 percent of the beneficiary's yearly drug expenses up to $2,830, after which there is a gap in coverage - the doughnut hole. The beneficiary must pay the full cost of drugs out of pocket. The coverage resumes when total prescription drug expenses reach $4,550, after which the beneficiary pays $2.40 for each generic drug prescription and $6 for other drugs (or 5 percent of total drug expenses, whichever is higher) through the end of the year. Under the Affordable Care Act, there will be a gradual phase out of the doughnut hole. In June 2010, per the new law, Medicare beneficiaries who have entered the doughnut hole began receiving a $250 rebate. Beginning January 1, 2011, PPACA shrinks the donut hole by reducing beneficiary copayments each year, until the donut hole is essentially eliminated by 2020. See Chapter 7, Medicare, for details.

DRUG REIMPORTATION - The process by which individuals or groups purchase pharmaceuticals from other countries that were originally produced in the U.S. and exported for consumption abroad. Because many other countries have lower drug prices than the U.S., this process can save consumers money on drugs for personal use. Reimportation can occur either by traveling to another country to purchase drugs (e.g., driving to Canada), or by purchasing drugs over the Internet or by mail from foreign pharmacies. Though traditionally not the subject of law enforcement, most reimportation violates U.S. federal drug safety laws.

DUAL ELIGIBLE - A Medicare beneficiary who also receives either a full range of Medicaid benefits offered in his or her state, or help with Medicare out-of-pocket expenses. Also see Qualified Medicare Beneficiary and Specified Low-Income Medicare Beneficiary.

DURABLE MEDICAL EQUIPMENT (DME) - Medical devices such as wheelchairs, oxygen tanks and apnea monitors.

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EARLY AND PERIODIC SCREENING, DIAGNOSTIC AND TREATMENT SERVICES (EPSDT) - Comprehensive services states are required to provide to Medicaid-enrolled children who need them, including extensive services for children with disabilities. The Deficit Reduction Act of 2005 allows states to restructure children's benefits to provide a narrower array of services for healthy children; however, states must continue to provide wrap-around EPSDT benefits.

ELECTRONIC HEALTH RECORD (EHR) – Some in the health care field consider the term “electronic health record” to be virtually identical to “electronic medical record” (see below). Others consider an electronic health record to be a more patient-oriented Web-based set of information about the patient and his or her care, easily accessible by the patient and owned by the patient.

ELECTRONIC MEDICAL RECORD - A computer-based record containing details about a patient’s encounter with a health care provider or facility, such as the patient’s chief complaint, vital signs, medical history, medical orders, plans and prescriptions. An EMR is a legal document and must meet all of the statutory and regulatory requirements for paper medical records. It is owned by a professional practice, hospital or other health care facility. Also known as a computerized patient record. Contrast with Electronic Health Record.

EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) - Enacted in 1974, ERISA was primarily designed to secure workers' pension rights. The law established federal reporting and disclosure requirements for most private employee health plans. Under ERISA, companies that pay for their workers' health benefits directly (e.g. by self-insuring and assuming all or most financial risk) are exempt from state insurance regulations and taxes. ERISA also limits workers' ability to sue their insurer. Click here for more information.

EMPLOYER CONTRIBUTION REQUIREMENT OR "EMPLOYER MANDATE" - A state requirement that employers either provide health care benefits to their workers or pay a fee that contributes to the cost of covering their workers under a public (state) plan. The Affordable Care Act creates a type of employer mandate, in that employers with 50 or more employees who don’t offer coverage as of Jan. 1, 2014 will have to pay a fee per full-time employee.

EMPLOYER-SPONSORED INSURANCE (ESI) - A voluntary system in which employers choose to provide health insurance for employees.

END-STAGE RENAL DISEASE (ESRD)- Kidney disease that is severe enough to require lifetime dialysis or a kidney transplant. People of all ages who have ESRD are eligible for Medicare.

ENTERPRISE LIABILITY - Proposal to hold hospitals or health maintenance organizations liable for negligent harm in medical malpractice cases, rather than holding individual physicians liable.

EVIDENCE-BASED MEDICINE- The use of current best clinical research evidence in making decisions about the care of individual patients, often with the assistance of information technology.

EXPERIENCE RATING - Process of determining insurance premiums for a group that is based wholly or partially on that particular group's past use of services and expenses incurred. Contrast with Community Rating.

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FAMILY CAREGIVER - Spouses, daughters and daughters-in-law, sons and other relatives and friends who volunteer to help with personal care, medication management and a range of household and financial matters. Sometimes referred to as "informal caregivers."

FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP) - Health care plans offered to federal civilian employees who can annually choose among a number of approved, community-rated private health insurance plans. The federal government pays a major portion of the cost of the coverage. Click here for more information, including eligibility requirements and premiums for each health plan --in total and amounts paidon the employee's behalf.

FEDERAL MEDICAL ASSISTANCE PERCENTAGE (FMAP) - Percentage used to determine the amount of federal matching funds for state Medicaid expenditures. Before the recession of 2008 – 2009, the FMAP was not less than 50 percent or more than 80 percent. Congress increased the federal match in the American Recovery and Reinvestment Act of 2009 to help states during the recession, and later extended increased FMAP payments through June 2011. Click here for more information.

FEDERAL POVERTY GUIDELINE - Income amounts set each February by the U.S. Department of Health and Human Services used to determine an individual's or family's eligibility for various public programs, including Medicaid and the State Children's Health Insurance Program. Sometimes called Federal Poverty Level/Line (FPL). (The poverty guidelines are different from the U.S. Census Bureau's "poverty thresholds," which are used for Census statistical purposes.) Click here for the 2010 poverty guidelines.

FEDERALLY QUALIFIED HEALTH CENTER (FQHC) - Facilities that have been approved by the government for a program to provide low cost health care. They include community health centers, tribal health clinics, migrant health centers, rural health centers and health centers for the homeless.

FEE-FOR-SERVICE (FFS) - A method of paying health care providers a fee for each medical service rendered, rather than paying them salaries or capitated payments.

FIRST-DOLLAR COVERAGE - Insurance plans that provide benefits without first requiring payment of a deductible.

FIRST RESPONDERS - Firefighters, police officers, ambulance crews, doctors and other local emergency officials who are the first to respond to an emergency situation.

FISCAL INTERMEDIARY - A private contractor that pays hospital bills on behalf of Medicare.

FISCAL YEAR (FY)- The 12-month period used for calculating annual fiscal spending, which parallels the federal government's annual budget cycle. The U.S. government fiscal year runs from October 1 of the previous year to September 30 of the calendar year for which the fiscal year is numbered. States' fiscal years do not always correspond to the federal fiscal year.

FLEXIBLE SPENDING ACCOUNT/ARRANGEMENT (FSA) - An employee benefit program that enables the employee to set aside pre-tax money to be used for certain health care and dependent care expenses.

FORMULARY - A list of selected pharmaceuticals and their appropriate dosages created by health insurance plans and state Medicaid programs, which are usually intended to include a broad array of prescription drugs that are also cost-effective for patient care. Physicians are often required or urged to prescribe from the formulary developed by the insurance plans, pharmacy benefit managers or health maintenance organizations with which they are affiliated.

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GATEKEEPER/CARE MANAGER - A healthcare professional, usually a primary care physician, who coordinates, manages, and authorizes all health services provided to a person covered by a health plan. Unless an emergency exists, the gatekeeper generally must pre-authorize referrals to specialists, hospitalizations and lab and radiology tests.

GRADUATE MEDICAL EDUCATION (GME) PAYMENT - Medicare payment to approved teaching hospitals to cover the costs of training residents. The GME payment comprises both the direct GME payment, which pays for the direct costs of training residents, and the Indirect Medical Education Adjustment, which pays for the increased operating costs of a teaching hospital. Although IME and direct GME refer to Medicare payments, Medicaid is also a major funder of graduate medical education. For more information about GME, see www.cogme.gov.

GREEN HOUSE® - Small communities of elders and staff set in a home-like environment that function as long-term care facilities. The centers provide the assistance and support necessary for each patient, but focus on social living, rather than on medical care.

GRIEVANCE – In a health policy sense, a grievance is a complaint filed because of dissatisfaction with the quality of care or customer service of a health plan. Medicare fee-for-service, Medicare health maintenance organizations and Medicare Part D prescription drug plans, as well as Medicaid and most other health plans, have formal procedures for handling and responding to grievances. If a Medicare beneficiary files a grievance against a hospital, a Quality Improvement Organization will review the case and guarantee the patient's stay, possibly free-of-charge, until the review has been completed. Also see Appeal.

GROUP INSURANCE - Health insurance offered through business, union trusts or other groups and associations. The policy holder is generally the employer or other entity. This system of health insurance is the most common in the United States.

GROUP-MODEL HMO - A health maintenance organization (HMO) that contracts with a single multi-specialty medical group to provide care for HMO members. The HMO compensates the group for contracted services at a negotiated rate, and that group is responsible for compensating its physicians and contracting with hospitals for care of their patients. Also see HMO, staff-model HMO and network-model HMO.

GUARANTEE ISSUE- A requirement that health plans cannot reject coverage for an applicant based on the person’s medical history. Under the Affordable Care Act, guarantee issue for new coverage and guaranteed renewability for existing coverage is the law of the land as of January 1, 2014. For those under age 19, the provision is effective as of September 23, 2010.

GUARANTEED RENEWABILITY – A requirement that health plans cannot cancel or refuse to renew a person’s health insurance because of the person’s medical history. See Guarantee Issue.

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HEALTH COVERAGE TAX CREDITS - A refundable tax credit that is paid on a monthly basis, or on a yearly basis when a person files their tax return, to help certain workers, retirees and their families pay for health insurance premiums.

HEALTH INSURANCE EXCHANGE – A mechanism that creates a single marketplace facilitating the buying and selling of private health insurance. Similar to a stock exchange or a farmers market where buyers and sellers are brought together, the system is intended for individuals, small businesses, and their employees, while maintaining existing employer-based access to health insurance. The Affordable Care Act calls for the creation of exchanges through which individuals who are U.S. citizens and legal immigrants, and businesses can buy coverage in every state.

HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) - A 1996 federal law that provides some protection for employed persons and their families against discrimination in health coverage based on past or present health. Generally, the law guarantees the right to renew health coverage, but does not restrict the premiums that insurers may charge. HIPAA does not replace the states' role as primary regulators of insurance. HIPAA also requires the collection of certain health care information by providers and sets rules designed to protect the privacy of that information. For more information, see www.hhs.gov/ocr/hipaa/.

HEALTH MAINTENANCE ORGANIZATION (HMO) - A managed care plan that combines the function of insurer and provider to give members comprehensive health care from a network of affiliated providers. Enrollees typically pay limited copayments and are usually required to select a primary care physician through whom all care must be coordinated. HMOs generally will not reimburse all costs for services obtained from a non-network provider or without a primary care physician's referral. HMOs often emphasize prevention and careful assessment of medical necessity. See Group-Model HMO, Network-Model HMO and Staff-Model HMO.

HEALTH OPPORTUNITY ACCOUNT (HOA) - A type of health savings account for Medicaid beneficiaries created by the Deficit Reduction Act of 2005 (see glossary). States may deposit annual sums of up to $2,500 per adult and $1,000 per child into the account, to be used to pay for medical expenses not covered by the high deductible health plan with which the account is coupled. Compare to Health Savings Account and Health Reimbursement Arrangement.

HEALTH PLAN EMPLOYER DATA AND INFORMATION SET (HEDIS) - A set of standardized measures of health plan performance allowing comparisons on quality, access, patient satisfaction, membership, utilization, finance and health plan management. HEDIS was developed by employers, health maintenance organizations (see glossary) and the National Committee on Quality Assurance.

HEALTH PROFESSIONAL SHORTAGE AREA (HPSA) - A geographic area determined by the U.S. Public Health Service to have a shortage of physicians and other health professionals. Physicians who provide services in HPSAs qualify for a Medicare bonus payment or student loan forgiveness.

HEALTH REFORM LAW (also known as the Patient Protection and Affordable Care Act ~~or simply the Affordable Care Act)~~ -- Law enacted in March 2010, phasing in major expansions in insurance coverage, changes in insurance rules, and delivery system changes, phased in over the next several years.

HEALTH REIMBURSEMENT ARRANGEMENT (HRA) - A type of health insurance plan also known as "health reimbursement account" or "personal care account," HRAs are tax-preferred accounts with funds established by employers to reimburse employees for qualified medical expenses; often HRAs are paired with a high-deductible health plan. An HRA may be used by an employee to pay for medical coverage until funds are exhausted. Once the deductible is reached, normal coverage begins. Any unused funds are rolled over at the end of the year, but do not follow the employee once he or she changes jobs. Compare to Health Savings Account.

HEALTH SAVINGS ACCOUNT (HSA) - A type of health insurance plan similar to HRAs (see above), but which is owned by workers. An HSA is a tax-preferred savings account and is paired with a high-deductible health plan. Any employer can offer an HSA (or a self-employed individual can set one up on his or her own), and both employers and employees can contribute to it. The worker must pay for all services until the amount of the deductible is reached (in 2009, a minimum of $1,150 for an individual and $2,100 for family coverage). The worker can withdraw money from the HSA to pay for medical services under the deductible. Once the deductible is reached, normal coverage begins. Any unused funds are rolled over at the end of the year. Unlike HRAs, HSAs follow an employee when he or she changes jobs. Also see Health Reimbursement Arrangement and Medical Savings Account.

HIGH-RISK POOL - A health insurance pool organized by states as a source of coverage for individuals who have been denied health insurance because of a medical condition, or whose premiums are significantly higher than the average due to health status or claims experience. The Affordable Care Act calls for the establishment of a temporary high-risk pool in every state – run by the state or by the federal government – with premiums on a par with those in the individual market for persons without pre-existing medical problems. These pools, which will exist alongside state high-risk pools already in operation, went into effect by June 21, 2010 and will end on Jan. 1, 2014. On the later date, coverage will be vailable to high-risk individuals through state health insurance exchanges.

HMO – Abbreviation of health maintenance organization

HOME AND COMMUNITY-BASED SERVICES (HCBS)- State-designed HCBS encompass case management, adult day care, home health aide assistance, personal care, assisted living services and respite care. Section 1915(c) of the Social Security Act permits the HHS Secretary to approve Medicaid waivers that allow for long-term care services to be delivered in the community instead of institutional settings. The Deficit Reduction Act also created a new capped HCBS option that allows states to offer these services without having to obtain administrative waiver approval. See PACE program and Medicaid Section 1915 Waiver. Provisions in Affordable Care Act give states incentives to expand their HCBS programs to balance spending between institutional care and HCBS.

HOMEBOUND - Condition required to receive home health care services under Medicare and generally interpreted to mean that the beneficiary cannot leave home without excessive effort and does so only infrequently, for no more than 16 hours per month for non-medical reasons. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 authorizes a demonstration project involving as many as 15,000 beneficiaries in three states, that aims to clarify and standardize the definition of homebound. Click here for more information.

HOME HEALTH CARE- Health services rendered in the home, including skilled nursing care, speech therapy, physical therapy, occupational therapy, rehabilitation therapy and social services. Medicare covers some home health care services if the beneficiary is homebound but does not require more than 35 hours of services per week. Medicaid pays for home health care services in 12 states.

HOME HEALTH AGENCY (HHA)- Health care provider organization that renders skilled nursing and health care services in the home. See Home Health Care and Homebound.

HOSPICE - An organization providing medical, emotional, spiritual and social help, often in the patient's own home, for those expected to live less than six months.If a person qualifies for Medicare Part A and has a terminal illness, Medicare pays for hospice care, including payment of drugs for symptom control and pain relief, hospice aide and homemaker service, and spiritual counseling, among other services. For details on covered services and payment rates, click here to see an HHS fact sheet.

HOSPITAL INSURANCE (HI) TRUST FUND - The Part A Medicare trust fund that pays for inpatient hospital services; skilled nursing facility care for up to 100 days following hospitalization; and some care from home health providers, hospices and rehabilitation facilities for the elderly and permanently disabled. Also see Trust Fund.

HYDE AMENDMENT - A federal law first enacted in 1980, and attached to appropriations bills every year since, that prohibits the use of federal Medicaid funds for abortion, except for reasons of life endangerment.

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INDEMNITY INSURANCE - A health insurance plan that pays providers on a fee-for-service basis for delivering health care. Consumers face very few restrictions on provider selection, but may have greater financial liability in the form of deductibles and coinsurance than in many managed care plans.

INDEPENDENT PRACTICE ASSOCIATION (IPA) - A physician organization which typically contracts with a health maintenance organization (HMO, see glossary) to provide services to the HMO's enrollees. The HMO usually makes capitated payments to the IPA, but the IPA may choose to reimburse its physicians on a fee-for-service basis. Physicians can contract with other HMOs and see other fee-for-service patients.

INDIRECT MEDICAL EDUCATION (IME) ADJUSTMENT - A Medicare payment supplemental to diagnosis-related group (DRG) payments for each beneficiary inpatient stay. It is intended to compensate teaching hospitals for the various costs associated with running an academic health center that trains and employs large numbers of medical residents. Many teaching hospitals tend to treat sicker patients with less insurance coverage, requiring a more costly mix of staff, and may use more expensive and complex interventions. For more information, see www.cogme.gov. Also see Graduate Medical Education Payment and Direct Medical Education Payment.

INDIVIDUAL MANDATE - A law requiring individuals to obtain health care coverage, and in some cases, forcing individuals to pay a penalty if they choose not to participate. The individual mandate of the Affordable Care Act goes into effect Jan. 1, 2014. Exemptions will granted for certain people, including American Indians, those with religious objections and those facing financial hardships.

INPATIENT- A person who is admitted to a hospital, usually for 24 hours or more.

INSTRUMENTAL ACTIVITIES OF DAILY LIVING (IADLs) - Activities relating to independent living, which include preparing meals, keeping a budget, purchasing groceries, performing housework and using a telephone. IADLs refer to skills beyond basic self care, or activities of daily living.

INTERGOVERNMENTAL TRANSFER (IGT) - Transfer of funds among or between different levels of government, including state-owned or operated health care providers, local governments, and non-state-owned or operated health care providers. The term is most often used in Medicaid, where transfers of governmental funds to the state Medicaid agency are used as the non-federal share to draw down federal matching funds for allowable Medicaid expenditures. States also use IGTs as the non-federal share to draw down federal matching funds for Medicaid Disproportionate Share Hospital payments.

INTERMEDIATE CARE FACILITY FOR THE MENTALLY RETARDED (ICF/MR) - An institution providing diagnosis, treatment or rehabilitation of individuals with mental retardation or related conditions. ICF/MRs provide a protected residential setting, ongoing evaluations, 24-hour supervision and health services. Under Medicaid, states may cover ICF/MR services.

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LOCK-IN - Lock-in refers to the period of time an individual is required to, or agrees to, remain registered with a particular provider or group of providers, or remain enrolled in a particular health care plan.

LONG-TERM CARE (LTC) - Ongoing health and social services provided for individuals who need continuing assistance with activities of daily living and/or instrumental activities of daily living (see glossary). Services can be provided in an institution, the home or the community, and include informal services provided by family and friends as well as formal services provided by professionals or agencies. Medicaid is the primary payer of LTC services in nursing homes.

LONG-TERM CARE PARTNERSHIP PROGRAM - A program that combines private LTC insurance with special access to Medicaid. This program encourages qualified individuals to purchase a limited, and therefore more affordable, amount of LTC insurance coverage, with the assurance that they could receive additional LTC services through the Medicaid program as needed after their insurance coverage is exhausted, without having to deplete their assets to the level typically required in order to be Medicaid eligible.

LOSS RATIO – See Medical Loss Ratio

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MANAGED CARE ORGANIZATION (MCO) - A health care organization, such as a health maintenance organization (HMO) or preferred provider organization (PPO), that contracts to provide medical services to a group of enrollees in exchange for capitated monthly premiums. Payments to physicians and other practitioners in HMOs are often lower than fee-for-service payments. Medicare Advantage includes HMOs, preferred provider organizations (PPO) and regional PPOs.

MANDATE - Used in two senses in health policy discussions. (1) Employer or individual mandate, in which a government body imposes a requirement on some employers to help pay for insurance coverage for their workers (and perhaps their families), and/or on certain individuals to obtain coverage. (2) State mandate, a requirement imposed by states on insurance companies to include, as part of any health insurance policy they sell, coverage for a specific service, such as well baby care, or provider, such as psychologists or optometrists.

MARKET BASKET INDEX - An index of the annual change in the prices of a selection of goods and services providers used to produce health services. Also referred to as an input price index.

MEANS-TESTING - Determining eligibility for government benefits based on an individual's lack of means, as measured by income and/or assets. Under current Medicaid eligibility guidelines, means-testing may differ for different eligibility groups (see Categorical Eligibility). The Medicare Prescription Drug Improvement and Modernization Act of 2003 introduced a form of means-testing in Medicare, which now sets higher premiums for higher-income seniors and provides more generous drug benefits to lower-income beneficiaries.

MEDICAID - Public health insurance program that provides coverage for low-income persons for acute and long-term care. It is financed jointly by state and federal funds (the federal government pays at least 50 percent of the total cost in each state) and is administered by states within broad federal guidelines. See Chapter 8, Medicaid, for more.

MEDICAID 1115 WAIVER - Under Section 1115(a) of the Social Security Act, the Secretary of Health and Human Services may waive most provisions of Medicaid law for demonstrations "likely to assist in promoting the objectives" of the program. Under long-standing policy, these waivers must be cost-neutral. Demonstration waivers may be granted for research purposes, to test a program improvement, or investigate a new way of delivering services.

MEDICAID 1915 (b) AND (c) WAIVER - Under Section 1915(b) of the Social Security Act, the Secretary of Health and Human Services may waive any provision of Medicaid law that prevent states from limiting beneficiaries' ability to choose providers. Section 1915(b) waivers are often sought by states that hope to control costs through managed care. Under Section 1915(c), the Secretary can allow states to obtain matching funds for long-term care services provided to Medicaid beneficiaries in home and community-based settings. Waivers are effective for two years.

MEDICAL HOME – see Patient-Centered Medical Home

MEDICAL IRA - See Medical Savings Account

MEDICAL LOSS RATIO - The ratio of money paid out by an insurer for claims, divided by premiums collected for a particular type of insurance policy. Low loss ratios indicate that a small proportion of premium dollars was paid out for benefits, while a high loss ratio indicates that a high percentage of the premium dollars was paid out for benefits. The Affordable Care Act sets minimum medical loss ratios for health plans effective Jan. 1, 2011.

MEDICAL SAVINGS ACCOUNT (MSA) - A health insurance option consisting of a high-deductible insurance policy coupled with a - tax-preferred savings account. MSA policies, enacted in 1996, have been largely replaced by health savings accounts.

MEDICAL UNDERWRITING - See Underwriting

MEDICALLY NECESSARY - Description of services or supplies required to preserve and maintain the health status of a patient in accordance with the area standards of medical practice. Whether or not medically necessary services are being denied to patients enrolled in some public and private managed care plans can be an issue of contention. To resolve these issues, many plans have appeals and grievance processes.

MEDICALLY NEEDY - An optional Medicaid category in which states can cover individuals and families who quality for coverage because of high medical expenses, usually hospital or nursing home care. To qualify, individuals must be categorically eligible and their monthly incomes minus accumulated medical bills must be below state income limits for the Medicaid program. This allows Medicaid coverage for people who have extensive health care needs but too much income to be eligible for Medicaid. Also see Spend-Down.

MEDICARE - Federal health insurance program for virtually all persons age 65 and older, and permanently disabled persons under age 65, who qualify by receiving Social Security Disability Insurance. See Chapter 7, Medicare, for more.

MEDICARE ADVANTAGE - A part of Medicare designed to offer beneficiaries a choice of managed care and other private plan options, such as Medicare health savings accounts. Also called Part C of Medicare (and formerly known as Medicare+Choice), Medicare Advantage encompasses health maintenance organizations (HMOs), preferred provider organizations (PPOs), Medicare HSAs, regional PPOs, and other options. Not all options are available in all areas.

MEDICARE ADVANTAGE PRESCRIPTION DRUG PLAN (MA-PD) - Medicare Part D prescription drug coverage that is sponsored by a Medicare Advantage plan.

MEDICARE PART A - Also known as the Hospital Insurance (or HI) program, Part A of the Medicare program covers inpatient hospital care, skilled nursing care for up to 100 days after a hospitalization, home health and hospice care. It is funded by a portion of the wage tax – 2.9 percent, with employers and employees each paying 1.45 percent.

MEDICARE PART B - Also known as Supplementary Medical Insurance (or SMI), Part B of Medicare covers physician services, outpatient care and home health care after 100 visits. It is funded partly by premiums paid by beneficiaries.¹The rest comes from the federal government’s general revenue.

MEDICARE PART D – See Medicare Prescription Drug, Improvement and Modernization Act of 2003 below.

MEDICARE PRESCRIPTION DRUG, IMPROVEMENT & MODERNIZATION ACT OF 2003 (MMA) - Legislation signed into law in December 2003 that provides seniors and disabled individuals on Medicare with a prescription drug benefit, delivered through private stand-alone prescription drug plans or managed care plans integrating Part A and Part B benefits (Medicare Advantage). The law expanded the array of Medicare managed care plans and changed payment methodologies. Click here for more information.

MEDICARE SAVINGS PROGRAM (MSP) - The program provides assistance through Medicaid with Medicare premiums - and sometimes cost-sharing requirements - to Medicare beneficiaries of limited income and resources who do not qualify for full Medicaid benefits. The program encompasses qualified Medicare beneficiaries (QMBs), specified low-income Medicare beneficiaries (SLMBs) and other groups of beneficiaries who need help with cost-sharing to access services. Click here for more information.

MEDIGAP INSURANCE/MEDICARE SUPPLEMENTAL INSURANCE - Medigap policies are sold by private insurance companies to fill "gaps" in fee-for-service Medicare. Except in Minnesota, Massachusetts and Wisconsin, there are 10 standardized policy designs, known as Plans A through J. Plans H, I and J include limited drug coverage. No new Medigap policies that include drug coverage are now being be sold. Beneficiaries with existing Medigap policies that include drug coverage may maintain them if they wish. However, they may be subject to late enrollment penalties if they later want Part D drug benefits. Click here for more information.

MENTAL HEALTH PARITY ACT - An act requiring group health plans with more than 50 employees to ensure that financial requirements and treatment limitations applicable to mental health/substance use disorder benefits are no more restrictive than the predominant requirements and limitations placed on substantially all medical/surgical benefits.

MINI-MED - Health plans, often "offered" to employees in typically low to minimum wage jobs, such as fast food workers and those in big box retailing, i.e., Wal-Mart, Target and the like. Perhaps the most widely known is the plan offered by McDonalds to its non-managerial employees. McDonald’s offers its hourly workers two different health care plans, which are known as “mini-med” plans. In one, workers can pay about $730 a year for benefits of up to $2,000. In the other, they can pay about $1,660 a year for benefits of up to $10,000. The problem: Mini-med plans force people to drain their savings accounts for dozens of common medical problems. They also force hospitals and other providers to let some bills go unpaid, which drives up costs for everyone else.

MODIFIED COMMUNITY RATING – A method for setting health insurance premiums for everyone in a state taking into account demographic variables, but not the applicant’s medical history. Contrast with Community Rating and Experience Rating.

MORBIDITY - A determination of the incidence and severity of sicknesses and accidents in a well-defined class of persons.

MORTALITY - An actuarial determination of the death rate at each age as determined from prior experience.

MULTIPLE EMPLOYER WELFARE ASSOCIATION (MEWA) - A group of employers who band together for purposes of purchasing group health insurance, often through a self-funded approach. MEWAs are sometimes exempt from state benefit mandates, taxes and other regulations.

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NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) - A nonprofit association whose members comprise the insurance commissioners of the individual states and territories. NAIC members are elected or appointed state government officials who regulate the conduct of insurance agencies and agents. NAIC was delegated significant responsibilities under PPACA including developing uniform definitions for calculating medical loss ratios and assisting HHS with establishing rate review procedures.

NATIONAL DIABETES EDUCATION PROGRAM (NEDP) - A joint effort of the CDC and the National Institutes of Health, NDEP supports communities, providers and worksites in educating individuals and families about pre-diabetes and diabetes prevention. For more information, see http://ndep.nih.gov or www.cdc.gov/diabetes/ndep.

NETWORK-MODEL HMO - A health maintenance organization (HMO) that contracts with more than one independent physician group to provide health services. The providers may see patients who are not members of the HMO. Also see HMO, Group-Model HMO and Staff-Model HMO.

NEVER EVENT - 28 occurrences that the National Quality Forum has identified as events that should never happen in a hospital and can be prevented. These events include surgical events, product or device events, and criminal events. The Centers for Medicare and Medicaid Services (CMS) announced in January 2009 that Medicare would stop paying for three never events – wrong invasive procedures, invasive procedures performed on the wrong body part and invasive procedures performed on the wrong patient.

NURSE PRACTITIONER (NP/RNP) - A registered nurse with advanced academic and clinical experience who diagnoses and manages most common and many chronic illnesses, either independently or as part of a health care team. A nurse practitioner provides some care previously offered only by physicians and in most states has the ability to prescribe medications.

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OFFICE OF CONSUMER INFORMATION AND INSURANCE OVERSIGHT-- Created by PPACA to ensure compliance with the new insurance market rules, this agency with the U.S. Dept. of Health and Human Services oversee the new medical loss ratio rules and assist states in reviewing insurance rates. In addition, it is charged with providing guidance and oversight for the state-based insurance exchanges and administers the temporary high-risk pool program and the early retiree reinsurance program. It also compiles and maintains data for an internet portal providing information on insurance options. It comprises four offices: the Office of Oversight, the Office of Insurance Programs, the Office of Health Insurance Exchanges, and the Office of Consumer Support.

ON LOK PROGRAM - A San Francisco project that uses an HMO model to provide all acute care and long-term care services needed by a frail elderly population at risk of nursing home placement. Click here for more information. Also see Program of All-Inclusive Care for the Elderly.

OPEN ENROLLMENT - The period of time during which health insurance coverage options are offered to a specified population, regardless of health status and without medical screening. Open enrollment periods are characteristic of some Blue Cross-Blue Shield plans and health maintenance organizations, and all plans in the Federal Employees Health Benefits Program.

OPEN PANEL/OPEN ACCESS - A self-referral arrangement allowing health plan enrollees to see participating providers for specialty care without a referral from a primary care physician or other doctor.

ORGANIZED DELIVERY SYSTEMS - Networks of providers and payers that provide care and compete with other systems for enrollees. Systems may include hospitals, physicians and other providers and sites offering a full range of preventive and treatment services. Also known as coordinated care networks, community care networks and integrated health systems.

OUT-OF-POCKET CAP/MAXIMUM - An annual limit on how much the patient has to pay in deductibles, coinsurance and copayments. Medicare Parts A, B and C do not have an out-of-pocket cap, while Part D does: when total out-of-pocket prescription drug expenses reach $5,916.25 (in 2009), Medicare begins to pay 95 percent of the beneficiary's drug costs through the end of the year. Also called a "stop-loss" provision.

OUTCOMES RESEARCH - Research that attempts to evaluate particular health services by tracking and analyzing clinical results (e.g., death, illness, ability to function) of various treatments.

OUTPATIENT - A person receiving medical services who has not been admitted to a hospital.

OUTPATIENT HOSPITAL SERVICES- Services provided to a hospital outpatient. They are covered by Part B for Medicare beneficiaries. For more information, see Chapter 7, Medicare.

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PARTIAL CAPITATION - An insurance arrangement where the payment made to a health plan is a combination of a capitated premium and a payment based on actual use of services. The proportions specified for these components determine the insurance risk faced by the plan. Sometimes called "ambulatory capitation."

PATIENT-CENTERED MEDICAL HOME -- An approach to providing comprehensive primary care for individuals through creating a setting that facilitates partnerships between individual patients and their personal physicians. This approach to care is aided by registries, information technology, health information exchange and other means to assure that patients get the indicated care when and where they need and want it in a culturally and linguistically appropriate manner. To see more, see the NCQA description.

PATIENT-CENTERED OUTCOMES RESEARCH INSTITUTE - A private, nonprofit institute created in the health reform law (PPACA) to set an agenda for, and oversee the conduct of, comparative effectiveness research in the U.S.

PATIENT PROTECTION AND AFFORDABLE CARE ACT (a BFD)- Law enacted in March 2010, phasing in major expansions in insurance coverage, changes in insurance rules, and delivery system changes. Known informally as the Affordable Care Act.

PATIENT SAFETY ORGANIZATION (PSO) - An organization that works to improve patients' safety and quality of care, by developing and disseminating patient safety data. PSOs can be public, such as state health agencies that collect hospital data, or private, such as The Joint Commission (formerly Joint Commission on Accreditation of Healthcare Organizations) which evaluates and accredits nearly 15,000 health care organizations across the U.S.

PAY FOR PERFORMANCE (P4P) - A method of paying health care providers differing amounts based on their performance on measures of quality and efficiency. Payment incentives can be in the form of bonuses or financial penalties.

PAY OR PLAY - See Employer Contribution Requirement

PAYROLL TAX - A flat percentage tax collected on salaries and wages. A payroll tax of 7.65 percent on both employers and employees finances Social Security cash benefits and Medicare Part A hospital services. Of that 7.65 percent, 1.45 percent each, or a total of 2.9 percent of payroll with both employer and employee contributions, is allocated for Medicare.

PEER REVIEW ORGANIZATION (PRO) - See Quality Improvement Organization

PHARMACY BENEFIT MANAGER (PBM) - A company that contracts with insurers and employers to manage the prescription drug benefit for enrollees or employees. The vast majority of managed care plans use PBMs.

POINT-OF-SERVICE PLAN (POS) - A managed care plan that combines features of both prepaid and fee-for-service insurance. POS plan enrollees decide whether to use network or non-network providers at the time care is needed, but usually are subject to reduced coverage and larger copayments for using non-network providers.

POVERTY LEVEL - See Federal Poverty Guidelines

PRACTICE GUIDELINES/PARAMETERS - A statement of the known benefits, risks and costs of particular courses of medical action, developed to give physicians information about treatment alternatives.

PRE-EXISTING CONDITION - A physical or mental condition of an individual which is known to the individual before an insurance policy is issued. Insurers may choose not to cover treatment for such a condition, at least for a period, may raise rates because of it, or may deny coverage altogether.

PREFERRED PROVIDER ORGANIZATION (PPO) - A health care delivery system through which a number of providers contract to serve health plan enrollees on a fee-for-service basis at discounted fees. Providers agree to PPO discounts in the hope of gaining more patients. Patients may use any provider without a referral, in network or out, but have a financial incentive - for example, lower coinsurance payments - to use doctors on the preferred list.

PREMIUM - The cost of health plan coverage, not including any required deductibles or copayments.

PREMIUM ASSISTANCE - The use of federal funds available through public health coverage programs - especially Medicaid and CHIP - to purchase or help purchase private insurance.

PREMIUM SUPPORT - A health benefit model that is considered by its designers to be a hybrid of the defined contribution and defined benefit approaches. This model would require general categories of health services to be covered, but benefits could be added or deleted within limits. The employer or government would then contribute a set amount of the premium for the purchased plan. Plans could set premiums at whatever dollar level they choose, with beneficiaries liable for any costs above the employer or government contribution. A Medicare demonstration designed to test a model similar to premium support began in 2010.

PREVENTIVE HEALTH SERVICES - Services aimed at preventing a disease from occurring, or preventing or minimizing its consequences. This includes care aimed at warding off illnesses (immunizations), at early detection of disease (Pap smears), and at stopping further deterioration (cholesterol-lowering medication).

PRIMARY CARE - Care at "first contact" with the health care system, including an array of non-specialist services provided by physicians, nurse practitioners, or physician's assistants - more simply, the care that most people receive for most of their problems that bother them most of the time.

PRIMARY CARE CASE MANAGEMENT, INITIATIVE, OR CLINICIAN - (PCCM/PCI/PCC) - A Medicaid managed care program in which an eligible individual may use services only with authorization from his or her assigned primary care provider. That provider is responsible for locating, coordinating, and monitoring all primary and other medical services for enrollees. Those services are usually paid on a fee-for-service basis.

PRIMARY CARE PHYSICIAN - A physician - general practitioner, family physician, pediatrician, some internists or OB/GYNs - who serves as the patient's first point of contact with the health care system and coordinates the patient's medical care.

PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE) - Originally a Medicare demonstration project that replicated the model of managed care developed by On Lok Senior Health Services in San Francisco, California. The Balanced Budget Act of 1997 expanded PACE into a national, permanent program and created a Medicaid PACE option. PACE targets frail community-dwelling elderly, most of whom are dually eligible for Medicare and Medicaid. Core services include adult day care, social support, home health, hospital care, nursing home care, and case management that integrates acute and long-term care services. PACE is financed through capitated Medicare and Medicaid payments to the provider. Click here for more information. Also see On Lok Program.

PROSPECTIVE PAYMENT SYSTEM (PPS) - A method used by Medicare to pay for many services, including inpatient and outpatient hospital services as well as services provided at skilled nursing and rehabilitation facilities. Payment rates are linked to diagnosis and determined before services are rendered, rather than being based on actual costs or charges of a specific facility. Rates are intended to cover treatment costs for a typical patient with a given diagnosis and are adjusted for factors like wages and indigent care.

PROVIDER - Any health care professional or institution that renders a health service or provides a health care product. Major providers are hospitals, nursing homes, physicians and nurses.

PUBLIC CHARGE - A term used by immigration officials to describe someone who is dependent on the government for subsistence. Being classified as a public charge can damage an immigrant's ability to become a permanent resident, to leave and reenter the U.S., or even to remain in the country. Some immigrants do not enroll themselves or their children into health care programs such as Medicaid and CHIP for fear of being labeled a "public charge," although receipt of CHIP and most Medicaid services is not considered in determining public charge status.

PUBLIC HEALTH - The protection and improvement of population health by organized community effort. Public health activities are very broad and include immunization, sanitation, preventive medicine, disease control, education about reducing personal risks, occupational health and safety, pollution control, water safety, food safety, epidemiology, etc.

PURCHASING POOL - A group of people, businesses or associations who come together to enhance their bargaining power and negotiate lower premiums from health insurance plans than they could on their own, while also pooling risks across sick and healthy individuals.

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QUALIFIED MEDICARE BENEFICIARY (QMB) - A person who is eligible for Medicare, has an income below 100 percent of the federal poverty level and has limited assets, is eligible to receive cost-sharing assistance if enrolled in the Qualified Medicare Beneficiary program. Under the QMB program, state Medicaid agencies are required to pay the cost of Medicare Part A and B premiums, deductibles, and coinsurance. Click here for more information.

QUALITY-ADJUSTED LIFE YEARS (QALYs) - Years of life saved by a medical technology or service, adjusted to reflect the health quality of those years (as determined by some evaluative measure). QALYs are the most commonly used unit to express results in certain cost-effectiveness analyses. A year of perfect health is considered equal to 1.0 QALY.

QUALITY IMPROVEMENT ORGANIZATION (QIO) PROGRAM - Under the Quality Improvement Organization Program, Medicare contracts with 53 QIOs, each responsible for each state, territory and the District of Columbia, to monitor hospital use and the quality of care received by Medicare patients. For example, QIOs examine and analyze hospital admissions of Medicare patients to assess the appropriateness of services, based on the severity of the patients' illness and the intensity of the services needed and received. Click here for more information.

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RATING - The process of evaluating, or underwriting, a group or individual to determine a health insurance premium rate relative to the financial risk of needing healthcare the person or group presents. Key components of the rating formula include age, sex, location and plan design.

RATING BANDS - Amounts by which insurance rates for a specific class of insured individuals may vary. All states have laws regulating insurer rating practices, and many states periodically update these laws with small group market reform proposals to restrict or loosen allowable variations.

REFERRAL - A primary care doctor's written permission for a patient to see a certain specialist or to receive certain services. Required by some managed care health plans.

REFUNDABLE TAX CREDIT- A way of providing a tax subsidy to an individual or business, even if no taxes are owed (see glossary, tax credit). If a person owes no tax, the government sends the person (or a third party) a check for the amount of the refundable tax credit.

REIMPORTATION - The process by which individuals or groups purchase pharmaceuticals from other countries that were originally produced in the U.S. and exported for consumption abroad. Because many other countries have lower drug prices than the U.S., this process can save consumers money on drugs for personal use. Reimportation can occur either by traveling to another country to purchase drugs (e.g., driving to Canada), or by purchasing drugs over the Internet or by mail from foreign pharmacies. Though traditionally not the subject of law enforcement, most reimportation violates U.S. federal drug safety laws.

REINSURANCE/RISK CONTROL INSURANCE – A practice allowing an insurance company (the insurer) to transfer a portion of its risks to another insurer (the reinsurer). This practice does not affect policyholder rights in any way, and the original insurer remains liable to the policyholders for benefits and claims.

RELATIVE VALUE SCALE (RVS) - An index that assigns weights to each medical service; the weights represent the relative amount to be paid for each service. To calculate a fee for a particular service, the index for that service is multiplied by a constant dollar amount (known as the conversion factor). Medicare uses an RVS to calculate payments to physicians.

RESOURCE-BASED RELATIVE VALUE SCALE (RBRVS)- The way Medicare determines how much it will pay physicians, based on the resource costs needed to provide a Medicare-covered service. The RBRVS divides the cost of providing services into three components: physician work, practice expense and professional insurance. The Medicare payment to physicians is determined by multiplying the combined costs by a conversion factor set by the Centers for Medicare and Medicaid Services, adjusted for geographical differences in the cost of resources. Physician work typically accounts for 50 percent of the value while practice expense accounts for 45 percent.

RESPITE CARE - Short-term personal care given to a frail elder or person with disabilities to substitute for assistance usually provided by a family caregiver.

RISK - The probability of financial loss, relative to the probability of having to provide services to a patient or patient population at a cost that exceeds the payments received. Under capitation payment systems, providers share the risk that is borne by insurers.

RISK ADJUSTMENT - Increases or reductions in payment made to a health plan on behalf of a group of enrollees to compensate for health care expenditures that are expected to be higher or lower than average.

RISK SELECTION - Enrollment choices made by health plans - or by enrollees - on the basis of perceived risk relative to the premium to be paid.

RISK SHARING - A method by which the financial risk of covering a group of enrollees is shared by plan sponsors and purchasers, typically managed care organizations and states. In contrast, indemnity plans assume all risk of providing care paid for through insurance premiums which belong solely to the insurance company.

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SAFETY NET PROVIDERS - Providers that have a primary focus of servicing low-income and uninsured people. They include community and migrant health centers and public hospitals. See community health center.

SECTION 125 PLAN -- A Section 125 plan provides participants an opportunity to receive certain benefits, such as reimbursement for some out-of-pocket medical expenses, on a pretax basis. It is a separate written plan maintained by an employer for employees that meets the specific requirements of, and regulations of, Section 125 of the Internal Revenue Code.

SECTION 1115 WAIVER - See Medicaid 1115 Waiver

SECTION 1915 (a) AND (b) WAIVER - See Medicaid 1915 (a) and (b) Waiver

SELF-EMPLOYED DEDUCTION FOR HEALTH INSURANCE - Self-employed taxpayers and their families can deduct all their payments for health insurance, including insurance premiums, when figuring their annual income for tax purposes, to the extent these payments exceed 7.5 percent of adjusted gross income.

SELF-INSURANCE - Large and medium-size companies often assume all or most financial risks of providing health insurance to their workers, as opposed to purchasing insurance coverage from commercial carriers (and having the carrier assume all risk). Claims processing is often handled through an administrative services contract with an independent organization, often an insurance company.

SEQUENCED TREATMENT ALTERNATIVES TO RELIEVE DEPRESSION (STAR*D)- Funded by the National Institute of Mental Health, STAR*D was the largest depression study in the U.S. and examined outcomes of a range of treatments aimed at helping depressed patients become symptom-free. Click here for more information.

SINGLE PAYER SYSTEM - A proposed reorganization of the health care system, either at the national or state level, which would designate one entity (usually the government) to function as the central purchaser of health care services. Canadian provinces operate health insurance coverage for residents under this system.

SKILLED NURSING FACILITY (SNF) - An institution that offers skilled services similar to those given in a hospital, such as intravenous injections and physical therapy given by professional staff, to aid rehabilitation following hospitalization of patients who have been discharged. SNFs differ from nursing homes or nursing facilities, which are intended primarily to support elderly and disabled individuals in the tasks of daily living (custodial care). Medicare does not cover custodial care in nursing homes; however, Medicare does cover skilled nursing care, rehabilitation and associated custodial care in SNFs. Medicaid covers care in all Medicaid-certified nursing facilities.

SMALL BUSINESS HEALTH PLAN (SBHP)- Purchasing pools for small employers that have frequently been the subject of congressional proposals, SBHPs would include trade, industry and professional associations as well as 'cooperative' corporations or chambers of commerce. Known in other proposals as association health plans (see glossary), SBHPs have generated controversy because they would be exempt from some state laws regulating health insurance.

SMALL GROUP MARKET REFORM - Generally refers to laws, regulations and proposals that are designed to simplify rules for small employers (typically 50 workers or fewer) purchasing health insurance. While most regulation of health insurance is done at the state level, the 1996 Health Insurance Portability and Accountability Act made some key reforms.

SOCIAL SECURITY DISABILITY INSURANCE (SSDI) - Financed with Social Security taxes, SSDI provides assistance to people who are permanently disabled and unable to work, and who previously worked and paid Social Security payroll taxes. Although the number of work credits required to qualify for SSDI depends on the age of disability onset, one must typically have 40 credits, of which 20 must be from the last 10 years (four work credits can be earned per year). The size of the monthly benefit depends on the beneficiary's earnings record. Widows, widowers and adults who are blind or disabled since childhood are also eligible for SSDI.

SOCIALIZED MEDICINE - A system of health care in which all health personnel and health facilities, including doctors and hospitals, work for the government and draw salaries from the government. Doctors in the U.S. Veterans Administration and the Armed Services are paid this way. Veterans and U.S. military hospitals are also supported this way. Examples also exist in Great Britain and Spain.

SPECIFIED LOW-INCOME MEDICARE BENEFICIARY (SLMB) - A person who is eligible for Medicare, has an income of between 100 to 120 percent of the federal poverty level and has limited assets, is eligible to receive cost-sharing assistance if enrolled in the Specified Low-Income Medicare Beneficiary program. Under the SLMB program, state Medicaid agencies are required to pay the beneficiary's Part B premiums, but not deductibles or copayments. Also see Qualified Medicare Beneficiary. Click here for more information.

SPEND-DOWN - Process by which individuals in many states can qualify for Medicaid because high medical expenses, usually hospital or nursing home care, reduce their monthly income to below state income limits for the Medicaid program. The amount that each individual must "spend down" is determined at the time eligibility is determined. Also see Medically Needy.

STAFF-MODEL HMO - A health maintenance organization (HMO) that delivers health services through salaried physicians who are employed by the HMO exclusively to care for HMO enrollees. Also see HMO, Group-Model HMO and Network-Model HMO.

STATE HEALTH INSURANCE ASSISTANCE PROGRAM (SHIP) - A federal program that provides funding to states to provide Medicare beneficiaries and other consumers with free health insurance counseling and assistance. Click here for more information.

STATE MANDATE - State coverage laws requiring private insurers to cover specific services (such as well-baby care) or reimbursement for specific providers (such as psychologists). The Employee Retirement Income Security Act generally exempts self-insured companies from these requirements.

STATE PHARMACY ASSISTANCE PROGRAM (SPAP)- State-funded program providing pharmacy benefits to seniors and other low-income groups. Before the enactment of Medicare Part D, 22 states funded SPAPs while 6 states operated waiver programs funded jointly by state and federal governments through Medicaid (see Medicaid 1115 Waiver). With Part D in operation, most states have begun providing wrap-around benefits to coordinate and ease the enrollment of their Medicare beneficiaries by, for example, covering deductibles, co-insurance or the gap in Medicare Part D coverage. Click here for more information.

STEM CELLS - Primitive cells derived from human embryos (embryonic stem cells) and some adult tissue (adult stem cells). They are undifferentiated cells, meaning they have the capacity to develop specialized functions when grown in the appropriate laboratory environment. Scientists create stem cell "lines," or cell cultures, used in disease research.

STOP-LOSS - See Out-of-Pocket Cap

SUBSTANCE ABUSING - A maladaptive pattern of using certain drugs, alcohol, medications, and toxins that leads to clinically significant impairment or distress.

SUBSTANCE DEPENDENCE – When a person continually uses a particular substance resulting in compulsive substance-taking behavior, tolerance for the substance, and withdrawal symptoms if the person stops using the substance.

SUPPLEMENTAL MEDICAL INSURANCE - Any private health insurance plan held by a Medicare beneficiary that is purchased to fill in "gaps" in traditional Medicare coverage, or to finance cost-sharing requirements, e.g., Medicare's hospital deductible. Among the most common types of supplemental insurance are some employer-sponsored retiree coverage and Medigap insurance (see glossary).

SUPPLEMENTAL SECURITY INCOME (SSI)- A federal income support program for low-income disabled, aged and blind individuals. Eligibility for SSI monthly cash payments does not depend on previous employment or contributions to a trust fund. Eligibility for SSI usually confers eligibility for Medicaid.

SUPPLEMENTARY MEDICAL INSURANCE (SMI) TRUST FUND - The Medicare trust fund that pays for physician procedures and treatments delivered in hospital outpatient departments, ambulatory surgical centers, and other non-hospital facilities; most home health care services; durable medical equipment such as wheelchairs; and the new prescription drug benefit. The SMI account is financed with beneficiary premiums (25 percent) and general revenues (75 percent).

SUSTAINABLE GROWTH RATE (SGR) - The Balanced Budget Act of 1997 established the formula for determining annual SGR targets for physicians' services under Medicare. The SGR is intended to control growth in total Medicare expenditures for physician services. If expenditures exceed the SGR target, the fee schedule update is decreased. Four factors are used to calculate the SGR: (1) average percent change in physician fees; (2) change in the average number of fee-for-service beneficiaries; (3) 10-year average annual growth in GDP per capita; and (4) change in expenditures due to new laws or regulations.

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TAX CREDIT - A flat amount that can be subtracted from taxes owed. Under some health care reform proposals, tax credits would be given to moderate-income individuals/families to subsidize health insurance premiums. A tax credit is more progressive in its impact than a tax deduction of the same amount, since the value of a deduction is greater for those whose tax rates (and usually incomes) are higher.

TAX DEDUCTION - An amount that can be subtracted from taxable income if spent on a specific purpose. Currently, businesses and the self-employed can deduct the cost of health insurance provided to employees, but health expenses (including insurance) are a deduction for families with group health insurance only after they reach 7.5 percent of income.

TAX PREFERENCE (FOR HEALTH BENEFITS) - Employer-paid health benefits are treated under federal tax law as a deductible business expense for the employer, and excluded from taxable income for the worker. This creates incentives for some employers and workers to prefer extra compensation in the form of more health coverage rather than wages.

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) - The block grant program that, in 1996, replaced categorical welfare assistance such as Aid to Families with Dependent Children. Under TANF, time limits are set for cash benefits, and recipients are expected to accept work or be enrolled in training programs. TANF was reauthorized in 2005 as part of the DRA with $16.4 billion in annual funding through FY 2010. Click here for more information.

TERTIARY CARE - Health care services provided by highly specialized providers such as neurosurgeons, thoracic surgeons, and intensive care units. These services often require highly sophisticated technologies and facilities.

THERAPEUTIC SUBSTITUTION - Replacement of one drug with another drug from the same therapeutic class that the Food and Drug Administration has determined to be equivalent - the substitute has the same active ingredient with the same absorption rate as the original drug. Often, this results in prescribing the less costly compound.

THIRD PARTY ADMINISTRATOR (TPA) - A professional firm that provides administrative services to employers who want to self-insure their employees. The TPA does not underwrite the financial risk of providing coverage.

THIRD PARTY PAYER - Organization, public or private, that pays or insures medical expenses on behalf of enrollees. An individual pays a premium, and the payer organization pays providers' actual medical bills on the individual's behalf. Such payments are called third-party payments and are distinguished by the separation among the individual receiving the service (the first party), the individual or institution providing it (the second party), and the organization paying for it (third party).

TRADE ACT HEALTH INSURANCE SUBSIDY- Premium subsidy program that covers a portion of the cost of health insurance for early retirees, their families and other workers who have lost their employer-sponsored health coverage as a consequence of company failure due to trade practices or bankruptcy. The subsidy to former workers is provided in the form of a federal tax credit either to be claimed when the income tax return is filed, or sent directly to the beneficiary's health insurance provider each month.

TRANSITIONAL MEDICAL ASSISTANCE (TMA) - Medicaid coverage for up to one year for families leaving welfare to become self-supporting through work. During this transition period, states are required to continue Medicaid benefits even if earnings increase. Click here for more information.

TRIAGE - The classification of sick or injured persons according to severity in order to direct care and ensure the efficient use of medical and nursing staff and facilities.

TRICARE - Program providing medical care to the dependents of active duty members of the military and to retired members of the military. Formerly known as the Civilian Health and Medical Program (CHAMPUS), the program is run by the Department of Defense. For more information, see www.health.mil/.

TRUST FUNDS - Federal trust funds are created in the U.S. Treasury to account for all program income, such as Social Security and Medicare taxes, and disbursements, such as benefit payments and program administrative costs. Revenues not needed in a particular year are invested in special non-marketable government securities; therefore, the trust funds represent the total value, including interest, of all prior program annual surpluses and deficits. There are two Social Security trust funds: the Old-Age and Survivors Insurance Trust Fund, which pays retirement and survivors benefits, and the Disability Insurance Trust Fund, which pays for disability benefits. There are also two Medicare trust funds: the Hospital Insurance (HI) Trust Fund, which pays for inpatient hospital and related care, and the Supplementary Medical Insurance (SMI) Trust Fund, which pays for physician and outpatient services. Medicare Part D prescription drug expenditures are paid out of the SMI Trust Fund. See HI Trust Fund and SMI Trust Fund in glossary.

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UNBUNDLING - Separately billing for medical services that might otherwise be priced together ("bundling"). For claims processing, this includes providers billing separately for health care services that should be combined according to industry standards or accepted coding practices.

UNCOMPENSATED CARE - Care rendered by hospitals or other providers without payment from the patient or a government-sponsored or private insurance program. It includes both charity care, which is provided without the expectation of payment, and bad debt, for which the provider has made an unsuccessful effort to collect payment due from the patient.

UNDERINSURED - People with public or private insurance policies that do not cover all necessary health services, resulting in out-of-pocket expenses that often exceed their ability to pay.

UNDERWRITING - The process by which health insurers decide whether or not to accept an individual's application for insurance, and, if the applicant is accepted, what conditions to apply. Underwriting is also applied to small employers. If the insurer decides that a particular individual or group poses greater than normal financial risks, it might charge higher premiums, offer more limited benefits, or refuse to pay for services relating to a particular "pre-existing" condition.

UNIVERSAL COVERAGE - Health insurance coverage for all people, through either public or privately funded programs.

UTILIZATION REVIEW (UR) - An insurer's review of health care services - particularly specialist referrals, emergency room use and hospitalizations - to evaluate their appropriateness, necessity, and quality. The review can be performed before, during, or after care is delivered.

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VOUCHER - In various health reform proposals, a certificate or fixed dollar amount that is provided to low- or moderate-income persons, which is used to pay all or part of the cost of health insurance or services.

The Patient Protection and Affordable Care Act (PPACA) calls for a new health insurance disclosure form, called the Summary of Benefits and Coverage, which uses a fixed layout and standard terms and definitions to allow consumers to compare health insurance plans and understand terms of coverage. The Consumers Union conducted a study that examined consumers' initial reactions to a draft standard form prepared by the Commonwealth Fund. Testing revealed that consumers were able to use the forms to make hypothetical choices among health plans. However, the study also found deep-seated confusion and lack of confidence with respect to health plan cost-sharing. These findings have significant implications for any venue providing comparative displays of health insurance information, like the future state exchanges, and for policies that rely on the ability of consumers to make informed health insurance purchasing decisions, such as "consumer-driven health care" policies.

While the above form seems "simple" enough for anyone with 8 years of university education (Jesuitical at that), it appears that many Americans will sill have trouble understanding and making sense of their health insurance. ... And, of course, that is exactly why the for-profit health insurance industry is trying so hard to repeal PPACA. Imagine if consumers actually understood what they were getting, insurers wouldn't be able to deny as much coverage or cancel policies as easily... and their profits might go down.

(5) ... Repealing Health Reform’s Maintenance of Effort Provision Could Cause Millions of Children, Parents, Seniors, and People With Disabilities to Lose Coverage ... Repeal Would Also Cause Loss of Jobs http://www.cbpp.org/cms/index.cfm?fa=view&id=3397

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