At the end of June, billions of dollars of Medicaid funds provided to states by the Obama Administration ran out. The money was provided for two years and totaled $90 billion.
Medicaid provides free or low-cost insurance to people with low incomes, including those with disabilities. The cessation of the funds comes as budget discussions in Washington include possible changes to the program, which is funded by the state and federal governments.
States will be required to contribute a greater share of funds to the program as a result, causing some to consider benefit changes. Many states are making amendments to their Medicaid programs, with some increasing the use of managed care, imposing new co-pays or placing limits on patient visits or doctor reimbursements.
New York is considering possible changes to its Medicaid program to meet a new cap on state Medicaid spending. Gov. Chris Christie of New Jersey has called Medicaid “out of control” and proposed transferring more than 100,000 low-income seniors and people with disabilities into a managed care program.
According to a report by the Kaiser Commission on Medicaid and the Uninsured, there were about 12 million seniors and people with disabilities enrolled in Medicaid in June 2010, a 3.3 percent increase over the year before.
“This growth is significant given the higher health care needs and expenditures associated with this population who account for 67 percent (FY 2007) of total Medicaid spending, although they represent just 25 percent of total Medicaid enrollment,” the report states.
The Consumer Directed Personal Assistance Association of New York State, Inc. released a statement saying, “It is important that we call the White House and send a message to the President that cuts to Medicaid, Medicare and Social Security are unacceptable and that we cannot balance the budget on the backs of elderly New Yorkers and New Yorkers with disabilities.”
“Allowing people to stay in their homes through programs such as CDPAP will save money. One study found that community based services cost almost $44,000 less per year than nursing home care. But we all know cuts to Medicaid mean that programs like CDPAP will suffer, and people will be forced into these nursing homes - at a higher cost to Medicaid and society,” the association said.
Senator Jay Rockefeller (D-WV) released a statement about the importance of Medicaid. “In my estimation, there is no government program that more fully embodies our nation’s tradition of community and mutual obligation than Medicaid. After almost 50 years, Medicaid is still a life-saving part of what we do as a government,” he said.
“And so I ask my colleagues – Why is Medicaid so often treated like it’s a second-class program – an unwanted burden on our society?” Rockefeller added.
The federal stimulus aid was approved for two years beginning in February 2009. In December 2010, it was extended for six months and ceased at the end of June.
The number of Americans who rely on Medicaid has risen since that time, with enrollment growing from June 2009 to June 2010 in almost every state.
In 2014, the federal government will cover all the expenses for Medicaid under the President’s health care reform law, The Patient Protection and Affordable Care Act of 2010.
This article was published in the August 2011 issue of Able News.
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