As budget reconciliation moves through Congress, there’s been renewed focus on programs like Medicaid and how they might be affected by cost-cutting measures. For those of us helping seniors navigate long-term care planning, this raises important questions. Will Medicaid eligibility change? Could long-term care coverage be impacted? Are products like the Medicaid Compliant Annuity at risk?
At Krause, we’re committed to giving you clear, timely insight into what’s happening behind the scenes in Washington. That’s why we’ve engaged a respected government relations team to monitor activity, gather intel, and advocate for the long-term care solutions your clients rely on.
Here’s a high-level look at where things stand and what we’re hearing.
The Big Picture: What’s Happening in Congress?
Right now, lawmakers are working through a budget reconciliation bill: a legislative process that allows certain bills to pass the Senate with just 51 votes. Reconciliation is typically used to fast-track high-priority budget-related measures like tax cuts and spending adjustments.
To fund the latest round of proposed tax cuts, Congress is looking for ways to trim federal spending, and Medicaid is one of the top programs under review.
What Medicaid-Related Changes Are Being Discussed?
Several proposals are on the table that could affect how Medicaid operates at the state level, including:
- Work Requirements: Enrollees would need to meet monthly activity requirements (like job training or employment) to retain coverage.
- Provider Taxes: States could face new limits or outright bans on taxes used to boost federal Medicaid funding.
- Eligibility Verification: More frequent and stricter checks could increase the risk of clients losing coverage, sometimes due to paperwork issues alone.
- Home Equity Limits: Lawmakers are exploring home equity changes that could affect Medicaid eligibility, particularly in rural and agricultural areas.
- Retroactive Coverage: There’s discussion about reducing the current 90-day retroactive eligibility window to just 30 days.
What About Long-Term Care Medicaid and the MCA?
Here’s the reassuring news:
- Long-term care Medicaid is not the focus of current cuts. Lawmakers are wary of the political fallout tied to reducing benefits for elderly enrollees.
- The Medicaid Compliant Annuity (MCA) is unlikely to be affected. Due to its narrow use case and the role of insurance carriers in providing oversight, there’s minimal interest in touching MCAs.
In fact, our D.C. contacts report that the MCA is viewed as a secure, compliant planning tool and is unlikely to generate enough budget savings to warrant reform.
How Krause Is Advocating for You
Our government relations team is not just listening—they’re speaking up. We’ve armed them with real-world case studies, data, and client stories to show the critical role Medicaid long-term care plays in protecting seniors and their families.
We’re making sure lawmakers understand the broader implications of the proposed changes, especially how restrictions could limit access to care for vulnerable populations.
What You Can Expect from Us
You don’t need to navigate shifting legislation alone. Krause will continue to:
- Monitor developments from Capitol Hill
- Provide updates with context and clarity
- Support your planning cases with compliant, reliable tools
If you have questions about how this legislation could affect your clients or your crisis planning approach, don’t hesitate to reach out.
Stay tuned for more updates as the reconciliation process unfolds. As always, we’re here to help you protect your clients and your business.