Thursday, June 16, 2005

Reducing the Medicaid Drag

Wow, it is about time. Currently, many states spend more on the medicaid program than any other single budget item, in many cases well in excess of education, police and public safety spending combined.

Medicaid insures more than 50 million low-income people, pays for more than one-third of births and finances care for two-thirds of nursing home residents. The cost of the program, financed jointly by the federal government and the states, shot up 63 percent in the last five years and now exceeds $300 billion a year. (emphasis added).

The fact that the National Governor's Association has come up with a unified plan to present to Congress is a great testament to the need for such changes to the program in the face of the bitter partisanship in today's times. Of course that partisanship and class warfare were on display during the Congressional hearings. Here are a couple of the gems:

Representative Henry A. Waxman, Democrat of California, asked Mr. Warner, "Why are you so timid?" in seeking federal financial help. Mr. Waxman said Congress would not have to squeeze savings from Medicaid if it had not approved "tax cuts for billionaires." ... Representative John D. Dingell, Democrat of Michigan, said the governors' proposals would "shift costs to the poorest and most vulnerable citizens."

Class warfare language at its best.

Senator Max Baucus of Montana, the senior Democrat on the Finance Committee, said he feared that higher co-payments would deter people from seeking the medical care that they needed.

Okay, time for some myth dispellment. One of the current problems with medical care in this country is over-utilization, i.e. people going for medical treatment for the slightest ailment, a cough, a sneeze and other little problems that 30 years ago people treated at home or monitored to see if it lasted for more than a couple of days. Today, we get a cough and we go to the doctor. We get a cold and we go to the doctor. This behavior extends to all people of all levels of socio-economic status. I find it difficult to believe that anyone, even the poorest American would deny themselves medical care for a real need because of a $3 or $5 dollar co-payment. Perhaps they will stop going to the doctor every week, but I doubt they will stop going all-together.

Here is another little class-warfare stupidity.

Representative Lois Capps, Democrat of California, said, "These proposals will add to the ranks of the uninsured."

First of all, the people receiving Medicaid are usually uninsured--that is why they get Medicaid, because they are too poor or not employed enough to qualify for traditional insurance. Medicaid IS THE insurer of last resort. Thus, we will not be adding to the ranks of the uninsured, they are already there. Second, the proposal is not aimed a kicking anyone out of Medicaid, merely asking them to do what millions of other American taxpayers already do, namely foot some of the bill for their medical care. America's poor (and I might add illegal immigrants) cost the taxpayers, well over $300 billion a year. I am not suggesting we not provide the service, but if everyone has to pay a portion of their healtcare bill, there may be a decrease in the utilization of health services that come for free to medicaid recipeints.

Finally, there is the problem of short memory among Democrats. In 1996, when the welfare laws were overhauled (under a Democratic president), there were predictions of governor's slashing benefits and throwing people to the wolves. That didn't happen and Governor "Huckabee recalled that skeptics had made dire predictions about the 1996 welfare law, but that states did not slash benefits, as many Democrats in Congress had feared."

Medicaid is a massive drain on state finances and a huge burden on government as a whole, both federal and state. With exploding price tags, even when medical services are not charged full price, Medicaid is costly and only going to become more so as people age and need more nursing home care. I applaud the Governor's for stepping and having the courage to say--"We have a problem and we need your help." The partisanship was put aside by the governors, but Congress can't seem to get past it.

The fact of the matter remains that a crisis is looming and has been looming for a while. The Governors face three difficult problems. First, they must get Congress to authorize changes in Medicaid law--a process not unlike herding cats. Second, Governors must rein in costs and over-utilization of health care among their citizens--again not a easy thing to do when most people believe that high quality health care is a right--not a happenstance. Third, Governors without changes, governors of both parties will have to go back to their taxpayers (of which --almost by definition, anyone on Medicaid is NOT a taxpayer) and say, "we need more money so we can provide health care to everyone--so we are going to either raise your taxes or cut other services." A statement sure to get them booted out of office.

Linked to Outside the Beltway


Governors' Group Proposes Medicaid Curbs

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