May 15, 2009

Medicaid–Safe For Now?

Now that Barack Obama has begun to release the almost $15B portion of the economic stimulus package to states in the form of expanded Medicaid benefits,  the jump starting of the healthcare economic sector is well underway.  According to the president, this includes improved healthcare access for the newly unemployed and those partially covered under COBRA.  (The Consolidated Omnibus Budget Reconciliation Act)

Some analysts refer to Medicaid as Medicare’s ‘ugly little stepchild’. Even though the Medicaid portion of the federal government’s commitment to the predominantly poor and disabled is more of an administrative mess than its more well known “stepfather”,  what is disturbing to its critics is the lack of meaningful reportable outcomes from the program’s beneficiaries. According to a physician-columnist for the Wall Street Journal, that is part of the problem.

Perhaps if the WSJ spent more time speaking with Medicaid recipients, they would develop a clearer understanding of these ‘reportable outcomes.’  One wonders how many Medicaid recipients are subscribers to this notable newspaper (which continues to lose readership)

Now, here’s something to consider:

It has been widely reported for every increase of 1 percentage point in the national unemployment rate, it is estimated that an additional 1 million Americans turn to Medicaid for coverage and another 1.1 million go uninsured.

As this economy continues to take its toll on the crippled state of the heatlhcare delivery system, financing care for those who qualify for it is becoming more and more of a challenge. Much has been said of the increasingly frayed “safety net” of Medicaid access to qualifying beneficiaries.

Without individual state funds to shoulder healthcare and preventive medical programs, costs to provide care increase with the utilization of resources already strained to the limit (ie, the hospital emergency department).

Therefore, thanks to Medicaid coverage, the relaxation on absolute restrictions to the access of publicly covered services recently developed by the Obama administration–increased CHIP funding passed by Congress earlier this year, and an increase in federal Medicaid infusions due to the recent economic stimulus–has created an influx of beneficiaries previously ineligible for coverage, saving states’ spending clampdowns and increasing the availability of federal funds to grow healthcare access.

However, a number of critics simply believe that the Federal government needs to steer clear of this problem, and let the states handle the financial responsibility.

But restricted access to Medicaid funded services only increases the burden acute care facilities must absorb or write off for those who cannot afford primary care.  As long as health care continues to be a national concern and issue, it behooves those in power to recognize that a healthy population relates directly to a healthy economy.

Fortunately, our new administration is cognizant of this—-now it’s a matter of convincing the critics.

Until next time,

Advocate

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