19 January 2011

Are States Abandoning Medicaid?

This is a problem facing many states. And not a good one at that. Most are having financial problems and a difficult time paying for services for Medicaid patients. The description by the Texas state health agency of this being a “no-win situation” is very true.

States could lose billions of federal dollars (our tax dollars), if they drop out of the jointly funded federal and state program. In addition this would cause millions of people to go uninsured. Yet what are states to do when they are facing bankruptcy.

In the article, the state of Texas did the analysis and found that dropping Medicaid was not an option, but keeping it could well bankrupt the state. They are working on several more options. Texas is stating that the Federal government should allow the states have more freedom to design and manage their Medicaid programs. Other states are echoing this.

It seems that necessity has always been the mother of inventions and I think the financial stress may yield some workable and sustainable solutions. Texas also would like to see the formula for distribution of Medicare funds among the 50 states modified. Texas thinks that they are being short changed, which they may well be as are several other states.

Please read the article here. And no I don't think the states will abandon Medicaid, but there are serious problems in many states.

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