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Tuesday, November 23, 2010

Some States Weigh Unthinkable Option: Ending Medicaid

Huge budget shortfalls are prompting a handful of states to begin discussing a once-unthinkable scenario: dropping out of the Medicaid insurance program for the poor.

Elected and appointed officials in nearly a half-dozen states, including Washington, Texas and South Carolina, have publicly thrown out the idea. Wyoming and Nevada this year produced detailed studies of what would happen should they withdraw from the program. Wyoming found that Medicaid accounts for 63% of the state's nursing-home revenue.

The idea of abandoning Medicaid as a solution is so extreme that even proponents don't expect any state will follow through, but officials are floating the discussions because dire budgetary pressures have forced them to at least look at even the most drastic options.

Medicaid, begun in 1965 and jointly funded by federal and state dollars, is the nexus of care for the neediest Americans, and a huge payer to hospitals, nursing homes and doctors. Medicaid enrollment totaled 62 million nationwide in 2007, the most recent data available.

But Medicaid has become one of the biggest items on state budgets, and states complain they don't have enough flexibility to pare it without losing their federal matching funds. The federal government, on average, covers 57% of the cost of the program for states. In exchange, states must keep Medicaid open to all who qualify.

Some states, in particular those led by Republicans, are calculating whether they'd be better off giving up the federal funding and replacing Medicaid with a narrower program of their own. Texas Gov. Rick Perry has proposed that his state get out of Medicaid in favor of a state-run system unburdened by federal mandates—including the one that prohibits states from reducing eligibility for the program if they want to qualify for the federal matching funds.

"We feel very comfortable that we could come up with a more equitable, a more efficient, and obviously a more cost-effective way to deliver health care," he said.       
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5 comments:

Anonymous said...

This is another program they are looking to end instead of putting the checks and balances in place to stop the fraud!
Because it's a program primarily for the poor, of course the Republicans are quick to axe the program.
You're going in the wrong direction.
They need to start doing the checks on medicaid recipients, welfare check recipients, WIC recipients, food stamp recipients, etc, etc, etc. and catch those ripping off the systems!!!

Anonymous said...

I have know many people who receive Medicaid and were able to work, but just didn't want to because why work, trudge out in all kinds of weather, miss your favorite daytime TV shows and have to get up with the chickens, when you can stay home, sleep late, buy your groceries with a card, get free health care and a roof over your head.

Anonymous said...

One group in this country has been sucking this program dry for years. Think of all the retirees in Florida. Now, another group who worked hard all their lives and have grown old can use the program will now be denied the opportunity. How ironic the other group get shafted once again.

Now, America want to spend money on immigration with the "Dream Act". But, my 75 year old mother might lose her medicaid. To hell with this country and their traitorous republicans/democrates governmental officials. You people make me sick.

Anonymous said...

If the states can come up with a program that their residents feel is better, I'm all for it. Less federal funds that have to be ponied up and perhaps the states will teach each other/the feds how better to administer care. These are the types of positive outcomes we can get if elected officials stop the 24/7 campaign, the partisan score keeping, and combination of hysteria/fearmongering.

Anonymous said...

1:38 there is quite the difference between mediCAID and mediCARE. Your 75 year old mother won't lose her medicare.