logo
In New Hampshire, people with disabilities face challenges hiring the help they need

In New Hampshire, people with disabilities face challenges hiring the help they need

Yahoo27-05-2025

Jim and Pat Piet pose for a photo in their Concord home. The couple said that hiring aides to help Jim with everyday tasks in light of his cerebral palsy is 'damn near impossible.' (Photo by William Skipworth/New Hampshire Bulletin)
Last time Jim Piet, who has cerebral palsy, needed to hire a new personal care assistant to help him complete daily tasks, it took four months.
Amid New Hampshire's tight labor market and low Medicaid reimbursement rates, people with disabilities, like Piet, face challenges hiring the help they need. And for people with unique needs, this can be difficult, isolating, and exhausting.
'I need help for everything,' Piet said.
Piet, who uses a motorized wheelchair, has a personal care assistant, or PCA, to help him get out of bed, shower, and get dressed, and to prepare meals and drive him places. Those everyday services, among others, are paid for through Medicaid.
Piet worked for 29 years, first with the University of New Hampshire's Institute on Disability, then for New Hampshire's vocational rehabilitation program as a public relations specialist. He also holds a bachelor's degree from Southern New Hampshire University and a master's degree from Springfield College. He lives in Concord with his wife, Pat, who also has cerebral palsy.
'Finding warm bodies is hard,' Pat Piet said. 'Finding warm bodies that can actually do the job is nearly impossible.'
Cerebral palsy can manifest differently for different people. For example, Piet uses a wheelchair while his wife doesn't. For some, cerebral palsy causes developmental delay and intellectual disability. For Piet, it's just physical. That's why he hires PCAs as opposed to direct support professionals, or DSPs, another common type of aide who, instead of simply assisting their client with tasks, also guides them, attempts to teach them how to do things for themself, and seeks to assist them with tasks they can't do for cognitive or developmental reasons. The Piets said there's a lot of overlap between the two professions.
'A lot of times, especially if we get someone who worked as a DSP, they're used to being the one who prompts, the one who directs,' Pat Piet said. 'They come in to help Jim and Jim's just throwing out orders one after another. They do not know how to deal with that.'
'Most people are not used to working with someone with a master's degree,' he added.
They said part of the challenge in finding aides is the job's difficulty. It requires physical strength to lift clients out of bed, into wheelchairs, and throughout their homes, but Pat Piet noted it also requires 'soft skills.'
'I think DSPs and PCAs are some of the most difficult jobs,' she said. 'They almost require a degree in psychology. They require you to be able to read people, to be able to prompt someone effectively, to understand Jim is not someone with an intellectual disability, so it's a different approach.'
Despite this, the jobs pay relatively low wages. Granite State Independent Living, one of the state's largest agencies hiring DSPs and PCAs, has job postings with wages from $18 to $22 per hour. Those jobs do not require a high school diploma or nursing license.
'You can make almost as much money working retail,' Pat Piet said. 'And retail does not require the same amounts of soft skills and emotional and physical investment.'
Jim Piet has two vendors who help him hire his aides: Granite State Independent Living and GT Independence. He said GT Independence pays aides better, but Granite State Independent Living provides better support.
'It's a double-edged sword,' he said.
He said they often get people incapable of doing the job or who 'bring (their) own baggage.' Sometimes caretakers don't act appropriately when he's in the community, he said, and treat him like 'a charity case.'
'I always cringe when people talk about how emotionally satisfying the job is,' Pat Piet said. 'You want to enjoy going to work. You want to get something emotionally out of it. But I feel like when we advertise that, we tend to get people who are emotionally needy and are looking to the person they're caring for to fill that gap. … This is a job. You get your emotional needs met from friends and family, not at your job.'
They also feel frustrated that people often ask why Pat can't simply take care of Jim. They note that she has had a career of her own that has required her to go into the office at times he needs help. Jim also said he wants Pat to just be his wife and not rely on her constantly. Still she helps him with his tasks when they absolutely can't find an aide.
All of these factors make recruiting and retaining good aides 'damn near impossible,' Pat Piet said.
Louis Esposito is the executive director of ABLE NH, an advocacy and support group for people with disabilities. He said the struggles the Piets face are common in the disability community.
'They are making below what you would make at Dunkin' Donuts or Target with the exceptionally high skill level that's required, and patience that's needed,' he said. 'It's been very challenging to find anybody.'
Esposito said he's heard from people with disabilities that they've resorted to paying aides out of pocket to supplement low wages. This presents financial hardship and is only possible for wealthier families.
'If you hire somebody at $14, $15 an hour and they're there for a couple of years, you want to be able to give them a raise or more income or you lose them,' he said.
Part of the reason wages are so low for these roles centers around Medicaid reimbursement rates. Medicaid covers this care by reimbursing agencies who provide it. However, the rate at which they reimburse is determined by the state and federal governments and it can vary greatly depending on the type of care provided.
However, Esposito feels it's more than just financials. He believes the role deserves more respect and 'should be treated as a profession.'
'Right now, it's kind of a job,' he said. 'It has to be treated as something more powerful, and it's not really respected as a long-term profession.'
Esposito formerly worked with Opportunity Networks, which provides services to people with disabilities.
'We would hire and support DSPs,' he said. 'They would get trained, you'd put a lot of energy and effort, and they would be fantastic. And then they want to start a family, or they want to proceed with their education. They want to advance. And there's not a lot of room for growth. So I think until we start respecting this as a field that needs to be given the right respect, I think we're gonna keep seeing this.'
North Country Independent Living, based in North Conway, operates several homes for people with developmental disabilities and those dealing with the effects of traumatic brain injuries. Patsy Sherry owns and operates the agency with her husband, and they hire DSPs to care for their residents.
'I spend all this money on Indeed,' she said, referring to the job-listing website. 'And I'll schedule interviews, and a lot of times people don't even show up. They don't even bother to call to say they're not coming.'
Gov. Ayotte, the budget, and Medicaid reimbursement rates
Gov. Kelly Ayotte has made services for people with disabilities a key aspect of her agenda during the state's ongoing budget process. Her budget proposal included $1 billion over two years to ensure there's no waitlist for anyone trying to receive services for developmental disabilities at facilities like North Country Independent Living or Opportunity Networks.
However, when it became their turn to amend the budget, state lawmakers in the House made significant cuts to that and included a provision that reduced Medicaid reimbursement rates by 3%, which could lower DSP and PCA wages. After public outcry and Ayotte's urging, the Senate Finance Committee reversed those cuts. Once the full Senate approves its version of the budget, the two chambers will enter committees of conference to hash out the differences between their budgets, including this Medicaid cut. It's unclear whether the House will agree to reverse this cut during that process.
While she disagreed with the House's cuts to the reimbursement rate, Ayotte said she doesn't think a rate increase is on the table for this budget cycle. She said her priority, during this difficult fiscal environment for the state, 'was to protect eligibility, to make sure that we don't have a disability wait list.' She said the current rates are based on a rate study, and said that she wants to reevaluate those rates in the next budget cycle for state fiscal years 2028-29.
'People with disabilities was one of the priorities in my budget,' she said. 'And it will continue to be a priority of mine.'
Operating in rural northern New Hampshire means there's a smaller population to pull from when hiring, she explained. She said they've recently increased their starting pay to around $19 an hour. A couple years ago they were paying between $13 and $14 per hour. They now have about 75 employees and are short four full-timers.
'The people that we do get, unfortunately, aren't — I don't know how to really say this — they're not up to par as what we were used to,' she said. 'I'm interviewing people that don't even have GEDs. … Some people that we've had come in don't even have computer skills, and they're struggling to get through the basic training.'
Fortunately, she has employees who appreciate overtime pay so they help cover gaps left by vacancies. She and the rest of management also step in sometimes.
George Barrett is the associate director at Opportunity Networks, which offers day programming for people with developmental disabilities in Nashua, Bedford, and Amherst.
'Forty years I've been doing this, there's always been a workforce issue,' Barrett said. 'It's never been as bad as it has been since COVID.'
These challenges, which he also attributed to low pay and the challenging nature of the job, mean they sometimes don't have the staff to accept new participants, he explained. This means families remain on their waitlist. He noted the majority of their families are middle class, and by not having their loved ones in services, they often must forgo work opportunities to care for them.
'We've had staff that have started and have lasted two weeks, and then, due to the demand, have left,' he said, 'because they're seeing the stress and duress that they're under.'
Barrett said Medicaid comprises nearly 100% of their income, and around 80% of the Medicaid dollars they receive goes directly to staff. In January 2024, when they received a 7% increase, the last time they did, the entirety of that money went to DSPs' paychecks, he said. Still, that hasn't kept up with inflation or market changes. He said he's reached out to state and federal leaders urging them to approve more rate increases, because their current rate — which he called 'not even a livable wage' — makes it challenging to compete with other industries for workers.
'In many cases, it's almost desperation,' he said. 'You look at who can you take?'
He said this leads to lower-quality candidates, which 'opens the door' for abuse and neglect.
'We haven't seen that here,' he said. 'But, yes, it does. The individuals we work with are, in my opinion, the most vulnerable citizens in the state of New Hampshire. Exploitation is there, because in a lot of cases, they can't speak up for themselves or defend themselves.'
Barrett called it 'a catch-22.'
'You try your best to vet individuals,' he said. 'But at the same time, too many vendors are kind of desperate to get staff, to get individuals in service.'
Still, Barrett praised the staff he does have.
'Without them, services like ours do not exist because they do 100% of the work in terms of working with the individuals,' he said. 'In essence, individual lives with disabilities are more so in the hands of our direct support professionals. So I can't give enough credit. And again, I will say they are definitely underpaid.'
While people report struggling to hire DSPs and PCAs nationwide, New Hampshire's tight labor market makes the problem especially acute. The U.S. Chamber of Commerce ranks New Hampshire as having the most severe worker shortage in the country. As of 2023, the most recent data available, there were only 28 available workers for every 100 open jobs in the state.
Phil Sletten, an economist and research director at the New Hampshire Fiscal Policy Institute, pointed out that the size of the labor force — the number of people working or looking for work — still hasn't recovered from the COVID-19 pandemic. In 2019, the labor force was about 777,300 people, but in 2024 it was roughly 771,600.
'So there has been some labor force recovery from the low point after the pandemic, which was in 2021, but that labor force recovery has not been complete,' Sletten said.
This makes it difficult to hire for any job in New Hampshire. As for DSPs and PCAs specifically, Sletten concurred that low pay was hurting the ability to hire.
As of June 2024, home health and personal care aides — which includes people who take care of anyone, not just those with disabilities — in New Hampshire earn a median hourly wage of $17.27, according to New Hampshire Employment Security. Across all professions, the median wage is $25.01.
'Home health and care aides who may be facing either a financial constraint at home or a more complex environment relative to their own position may be looking for other opportunities,' Sletten said. 'And with a higher median wage among all occupations in the state, there may be other opportunities that offer them more compensation.'
Kathy Bates, who lives in her own house in Somersworth and has cerebral palsy, is another who struggles to hire DSPs, which are vital to her day-to-day life.
'Without them, I couldn't work,' Bates said. 'I couldn't even get out of bed.'
Bates has DSPs come help her a few times a day. They come in the morning to help her get out of bed, shower, dress, get into her wheelchair, and do other tasks. They come again in the afternoon and at night as well. They keep her 'connected to the community' by allowing her to get out of her house.
'I really couldn't live a good life without them,' she said. 'I'm not saying I need help with everything, but I need to get out of bed, I need to get my day started before I can make anything happen.'
Bates arranges to hire these aides herself, which takes a long time. She often has people call out sick at the last minute, she said, and has to find coverage when they want to take time off. She keeps a list on her bedside table with names of people to contact if someone calls out the morning of.
'Managing personal care is a full-time job sometimes,' she said. 'You want to be a good boss, but I have to bug people. I don't like bugging people.'
She said this inconsistency means many people with disabilities are afraid to get jobs because they worry they won't be able to get out of bed every day and have someone to drive them to work.
'There's this huge untapped workforce out there,' she said.
Bates has a few methods of hiring aides. Sometimes she puts ads on Craig's List. Sometimes she uses agencies like Granite State Independent Living and GT Independence.
'Coming through the door is like 50% of the interview,' she said.
She often sets up interviews and they never show up. Additionally, many of the candidates who inquire are elderly, which is a problem because it's a physically demanding job. After someone is hired, there's a weekslong process of paperwork for Medicaid, background checks, and other administration. Still, she's grateful for her aides.
'I'm glad I do have the women that work for me,' she said. 'I'm really glad that they're as flexible as they are.'
Bates is also active in advocacy within the disability community. She grew up before the Americans with Disabilities Act, so she remembers what it was like to have a disability before ADA protections, and she wants to continue making the world a better place for people with disabilities. To do so, she leads trainings for medical professionals about working with people with disabilities at the UNH Institute on Disability. She also writes a blog on disability called 'From Where I Sit.' And she's an accessibility and inclusion specialist on the Self Advocacy Leadership Team, a task force within the New Hampshire Council on Developmental Disabilities that seeks to find solutions for problems facing the disability community.
The work gives Bates a lot of joy and fulfillment. She emphasized how none of it is possible without her caretakers.
'I can't change the world if I can't get out of bed,' she said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

What comes next in the Trump-Musk feud: From the Politics Desk
What comes next in the Trump-Musk feud: From the Politics Desk

Yahoo

time23 minutes ago

  • Yahoo

What comes next in the Trump-Musk feud: From the Politics Desk

Welcome to the online version of From the Politics Desk, an evening newsletter that brings you the NBC News Politics team's latest reporting and analysis from the White House, Capitol Hill and the campaign trail. In today's edition, Kristen Welker dives into what comes next in the breakup between President Donald Trump and Elon Musk. Plus, our Capitol Hill team examines the senators who could make or break Trump's 'big, beautiful bill.' And Shannon Pettypiece answers this week's reader question on the U.S.-China trade war. Before we dive into all that, two bits of breaking news this Friday afternoon: Kilmar Abrego Garcia, the Maryland man whose erroneous deportation to El Salvador gave way to a protracted battle over due process, has been returned to the U.S. to face human smuggling charges in Tennessee. The Supreme Court allowed members of the Department of Government Efficiency to access Social Security Administration data. Sign up to receive this newsletter in your inbox every weekday here. — Adam Wollner The feud between Elon Musk and President Donald Trump erupted yesterday in an epic clash between the world's richest man and the world's most powerful man — and it's not clear yet where the confrontation will go next. White House chief of staff Susie Wiles told me this morning that there are 'no plans' for a phone call between Trump and Musk today, despite at least one report that it was a possibility. But just because there's nothing on the books doesn't mean the two men won't have an impromptu call. After all, Trump has a personal cellphone where he often talks to everyone from world leaders to reporters. And one administration official told me anything can happen, and they'd like to 'de-escalate a very unfortunate situation.' While the White House may be looking to turn down the temperature, some of the president's allies were quick to go after Musk. Steve Bannon, a former Trump White House adviser, told me the president should 'pull every contract associated with Elon Musk' and start major investigations 'immediately.' Bannon also said, 'Thus spake the ketamine,' in a sign that some of Trump's allies are zeroing in on Musk's alleged drug use. (Musk has said he took ketamine to treat depression.) At stake in all of this is the future of Trump's signature legislation, which includes tax cut extensions, an elimination of tax on tips and overtime, and cuts and changes to federal programs including Medicaid and food stamps. Musk has trashed the 'big, beautiful bill,' arguing that it would balloon the country's debt. Sources from the White House and on Capitol Hill have told me that while Musk's opposition might embolden Republican senators who are already opposed to the measure, Musk is not flipping any more votes to the 'no' column at this point. I'm also told that if these senators had to choose between Trump and Musk, they'd choose Trump every time. We'll talk more about the next steps for Trump's domestic policy bill on 'Meet the Press' this Sunday, with exclusive interviews with Sens. James Lankford, R-Okla. and Cory Booker, D-N.J. Behind the scenes: Trump's team is taking the feud seriously: White House aides scrambled into at least two closed-door meetings Thursday to strategize about whether and how to respond to Musk's social media barrage. Vice President JD Vance was with Trump on Thursday when the tweets began and they spoke multiple times in the afternoon, according to a person familiar with the day's events. Trump encouraged Vance to be diplomatic about Musk if asked about him, the person said. Meanwhile, Trump is considering selling or giving away the red Tesla that he purchased in March, according to a senior White House official. Read more on the Trump-Musk feud → Amid the back-and-forth between Donald Trump and Elon Musk this week, Senate Republican leaders have been juggling a host of competing demands as they prepare to take up — and make changes to — the House-passed 'big, beautiful bill.' They can ultimately afford to lose just three GOP votes on the Senate floor, assuming all Democrats oppose the package as expected. Here are the senators who could make or break the bill: Rand Paul: He's the only Republican senator who has voted against this legislation every step of the way. He has blasted the spike in military spending, the huge increase in deficits and, in particular, the $5 trillion debt limit hike. Paul does support a key part of the package — an extension of Trump's 2017 tax cuts — but he wants to offset it with trillions of dollars in additional spending cuts, on which the GOP has no hope of finding consensus. Susan Collins: The Maine senator is the sole Republican to represent a state that Democrats consistently win at the presidential level. And she faces re-election this year. Her trajectory has been revealing, from supporting the initial budget resolution to voting against the revised version. A key reason for her opposition? Concerns that the Medicaid cuts would harm low-income and older constituents. Lisa Murkowski: When she voted for the budget blueprint in April that kick-started the process of writing the legislation, the Alaska Republican quickly followed it up with a broad set of grievances that will need to be addressed, or she'll be 'unable to support' the final product. That includes the changes to Medicaid, the cost of the tax cuts and the phaseout of clean energy tax credits that benefit her state. Ron Johnson: The Wisconsin Republican has railed against the bill and its estimated $2.4 trillion contribution to the deficit, insisting he can't vote for it as written. He has slammed the idea of a megabill, calling for breaking it up and limiting the debt ceiling hike. Trump asked him to be 'less negative' during a meeting at the White House this week, Johnson said. Read more on the other key senators to watch → Grabbing the third rail: Senate Republicans open the door to cutting Medicare 'waste' in Trump agenda bill Thanks to everyone who emailed us! This week's reader question is on the ongoing trade war between the U.S. and China. 'Who is in worse shape if the two countries don't trade any longer?' To answer this, we turned to senior policy reporter Shannon Pettypiece, who has been covering the ins and outs of Trump's tariff agenda. Here's her response: Both the U.S. and China have a lot to lose by cutting off trade ties with each other, but in some ways, not as much as they did before the first wave of China tariffs Trump imposed in 2018. Chinese companies have been shifting production offshore, to neighboring countries like Vietnam and even Mexico, while Chinese officials have worked to boost trade with other trading partners, like the European Union. The share of total Chinese exports to the U.S. has dropped to an estimated 14% in 2024 from 19% in 2018. Across China's entire economy, U.S. exports account for 3% of China's gross domestic product, and a sustained U.S. tariff rate of 60% could reduce China's GDP by 2 percentage points, according to Goldman Sachs. In short, that would be bad for China's economy, but not entirely crippling. China's economy isn't on the strongest footing at the moment. Its growth has slowed since the Covid pandemic and the country is grappling with a collapse in its real estate market, which has wiped out the savings for many Chinese. The U.S. has also been working to lessen its dependence on China in recent years, and U.S. companies have increasingly been shifting their manufacturing out of China. China accounts for about 15% of total U.S. imports, down from about 22% in 2018. But the U.S. is still heavily dependent on China in a number of key areas, like rare earth metals crucial for U.S. manufacturing of cars and defense equipment. About a third of U.S. imports from China are in product categories where the vast majority of those items come from China, according to Goldman Sachs. That means, even a temporary halt to shipments from China could lead to supply chain shortages, like those seen during the Covid pandemic. But who blinks first or offers more concessions in a trade standoff could have just as much to do with politics as economics. China removed term limits on President Xi Jinping in 2018, essentially allowing him to remain in power for life. Meanwhile, the U.S. will have midterm elections next year and another presidential contest in 2028. 📺 Exclusive interview: Education Secretary Linda McMahon told NBC News she is seeing 'progress' from Harvard and Columbia amid Trump's attacks on the universities. Read more → ⚖️ In the courts: The Trump administration asked the Supreme Court to allow the Education Department to carry out broad layoffs that were blocked by a federal judge. Read more → ⚖️ In the courts, cont.: A federal judge on Thursday temporarily blocked Trump's effort to block visas for foreign students planning to study at Harvard. Read more → 📝 Report card: The U.S. added 139,000 jobs in May, more than expected but pointing to a labor market that continues to slow. Read more → 📦 Trade update: Trump said China trade talks will resume Monday when Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer meet with Chinese officials in London. Read more → 🗳️ Go your own way: Winsome Earle-Sears, the Republican candidate in the Virginia governor's race this fall, has tacked to the right on same-sex marriage and abortion rights, complicating her efforts to follow Gov. Glenn Youngkin's path to victory. Read more → 🗽 On second thought: Some Democrats who called on then-Gov. Andrew Cuomo to resign in 2021 amid sexual harassment allegations are now endorsing him for mayor of New York City. Read more → Follow live politics updates → That's all From the Politics Desk for now. Today's newsletter was compiled by Adam Wollner and Dylan Ebs. If you have feedback — likes or dislikes — email us at politicsnewsletter@ And if you're a fan, please share with everyone and anyone. They can sign up here. This article was originally published on

46 State Medical Associations Urge Senate to Reject Medicaid Cuts in H.R. 1
46 State Medical Associations Urge Senate to Reject Medicaid Cuts in H.R. 1

Yahoo

timean hour ago

  • Yahoo

46 State Medical Associations Urge Senate to Reject Medicaid Cuts in H.R. 1

The House Budget Reconciliation bill will cause at least 7.8 million Medicaid enrollees to lose their health care coverage. SACRAMENTO, Calif., June 6, 2025 /PRNewswire/ -- Just days ahead of an expected Senate vote on H.R. 1, 46 state medical associations, as part of Physicians for Medicaid have sent a letter to the United States Senate urging them to reject the dangerous cuts to Medicaid proposed in H.R. 1 that will cause millions of patients to lose coverage and even more to lose access to care - children, pregnant women, seniors, veterans, the disabled and working families. Statewide hospital associations have also weighed in, as proposed cuts impact all providers, including physicians and hospitals. The bill, which includes $200 billion in cuts to the existing and longstanding provider taxes, would have a catastrophic effect on state budgets and the country's entire health care delivery system and would impact 49 state Medicaid programs. Provider taxes have been authorized under federal law, approved by both Republican and Democratic administrations, and affirmed by state legislatures in 49 states for decades. They are a legitimate financing mechanism used by states in partnership with the federal government to fund essential health services and have kept rural hospitals, maternity wards, nursing homes, and physician practices open. The bill also imposes damaging changes to federal student loan programs making it harder for students to pursue medical careers at a time of critical physician shortages. We urge the Senate to pursue more balanced solutions that expand the physician workforce and preserve Medicaid for our patients. "If these provider tax cuts are enacted, it will create significant gaps in State budgets, forcing states to raise taxes, or reduce benefits, coverage, and provider payments. These reductions will lead to even more crowding of emergency departments and as the uncompensated care burdens grow from patients losing coverage, many rural hospitals, nursing homes, and community physician practices will be forced to close to all patients," the letter says. There are three main provisions in H.R. 1 (as passed by the House of Representatives on May 22, 2025) that will drastically limit or eliminate existing provider taxes nationwide. These provisions below apply to all provider taxes, including hospitals, nursing homes, managed care organizations, and other provider categories. Moratorium on New or Increased Provider Taxes (SEC. 44132) – Under the provisions of H.R. 1, none of these taxes could be increased after the passage and enactment of the law nor can any new taxes be adopted by the state Legislatures (there are 19 categories of provider taxes). This provision would freeze taxes and not keep pace with increasing health care costs over time. It is also not equitable between states. Revising Payments for Certain State Directed Payments (SEC. 44133) – Once a provider tax is established, state Medicaid programs can fund supplemental or enhanced payments to providers using a variety of rate methodologies. Under H.R. 1, any future directed payments would be limited to the Medicare payment rate. Medicare physician payment rates are already 33% behind the costs to provide health care. These rates will not keep pace for public hospitals and physician specialists that care for the sickest patients nationwide. Requirements Regarding Waiver of Uniform Tax Requirement for Medicaid Provider Tax (SEC. 44134) – The language in H.R. 1 requires provider taxes in multiple states to uniformly tax hospitals, nursing homes, and managed care organizations within each category of provider tax. The uniformity requirement will be extremely difficult for most states to meet and therefore, it eliminates multiple provider taxes in many states. The HHS Secretary has discretion to allow for a transition period, which is not something upon which states can rely. "These provisions will destabilize state health systems, reduce access to care, and worsen physician shortages. Instead, we encourage you to protect Medicaid – a proven, cost-effective safety net that serves 80 million vulnerable Americans," the letter concluded. View original content to download multimedia: SOURCE California Medical Association; Physicians for Medicaid Sign in to access your portfolio

Republicans Like Health Savings Accounts
Republicans Like Health Savings Accounts

Forbes

timean hour ago

  • Forbes

Republicans Like Health Savings Accounts

Should the government allow HSAs to cover gym memberships? Health Savings Accounts (HSAs) are a popular and important way many people pay for medical expenses. They are also a great way to save—better, for example, than an IRA or a 401(k) plan. Because of various quirks in the law, HSAs are not available to a large number of people—including people on Medicaid or Medicare and most people who buy their own insurance in the (Obamacare) exchanges. Under the reconciliation bill just passed in the House of Representatives, more people will have access to these accounts and there will be new opportunities to use them. Currently, individuals and their employers can make tax-free deposits to HSAs, provided the individual is also covered by third-party health insurance with a high deductible. Money can accumulate and grow tax-free. After age 65, the money can be withdrawn for non-health expenses without penalty, but it is subject to normal income taxes. As of 2023, there were 37.4 million accounts with $46.4 billion in assets. Industry experts think the House bill will lead to an additional 20 million people with an HSA. Here is a summary of the hits and misses in the Republican bill, as it faces a vote by the Senate. The Good. By far the best feature of the bill is a provision making all bronze and catastrophic insurance plans offered through the (Obamacare) exchanges automatically eligible for an HSA account. This is likely the main reason why the number of HSA accounts is likely to soar. Another provision would allow the use of HSAs to pay monthly fees for direct primary care (DPC). This used to be called 'concierge care' and in the past it was available only to the rich. But the price has come way down. Atlas MD in Wichita, for example, charges $50 a month for a mother and $10 for a child. In return, the family has 24/7 access to a physician's practice that provides all primary care. Often, the family has the doctor's personal phone number. DPC has become increasingly popular, and employers often pay the monthly fee for their employees. Under current law, however, the employer cannot put funds in an HSA account, let the employee choose a DPC doctor and pay that doctor from the account. The House bill will create that opportunity. According to the Congressional Budget Office (CBO), the ten-year cost of all of the HSA changes combined is almost $44 billion. Yet the cost of the two best provisions is less than $6 billion. More on that below. The Questionable. The bill allows annual withdrawals of $500 (individuals) or $1,000 (couples) for gym memberships and other physical activities. (No sailing or golfing expenses, however.) The problem is that these are not medical expenses. If we are going to allow gym memberships, why not hundreds of other nonmedical expenses – including sailing and golfing? The CBO says the cost of this provision is $10 billion. The bill also doubles the annual HSA contribution that is allowable for individuals with incomes up to $75,000 and couples who earn up to $150,000. The problem here is that only about one in ten account holders are contributing the maximum allowable right now. At a cost of more than $8 billion this is an expensive change that will only affect a small part of the market. Instead of these questionable measures, the Senate should consider making all Obamacare silver plans (the most popular choice) automatically eligible for an HSA. Missed opportunities. While the House should be congratulated for making many desirable improvements in the HSA law, it unfortunately failed to correct a fundamental flaw: an inflexible across-the-board deductible. Common sense would suggest that different medical expenses need different deductibles. The biggest problem with chronic illness, for example, is noncompliance with a drug regimen. That is why some Medicare Advantage plans make maintenance drugs for chronic patients (such as insulin for diabetics) available for free or at very low cost. In the first Trump administration, an IRS ruling waived the deductible requirement for 14 specific services and medications that serve as treatments for such conditions as diabetes, asthma, heart disease, and depression. This was an executive branch decision to modify existing legislation, however. To make it permanent, Congress needs to codify it. Ideally, Congress should remove the deductible requirement altogether and let the role of deductibles be determined in the marketplace. One way to think about the combination of allowing gym memberships and failing to address the deductible issue is to see that the House risks being accused of creating benefits for the healthy while ignoring the sick. Another missed opportunity was the failure of House Republicans to give 80 million Medicaid enrollees access to what I will call a Roth HSA. Private companies managing Medicaid (or the state itself) should be able to make deposits to an account that would cover, say, all primary care. Enrollees could use the money for health care during an insurance year. Afterward, they could withdraw any unspent funds for any purpose. If there were no taxes or penalties on non-medical withdrawals, health care and non-health care would trade against each other on a level playing field under the tax law. People wouldn't spend a dollar on health care unless they got a dollar's worth of value. An early study by the RAND Corporation suggests that these accounts would reduce Medicaid spending by 30 percent. Aside from payments for the disabled and nursing home care, if Medicaid spending could be reduced by 30 percent, the savings would amount to almost $1 trillion over ten years. This saving would be shared by the beneficiaries and the taxpayers who fund Medicaid.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store