 July 2002 • Volume 8 • Number 7 |
Medicaid faces "serious problems that will extend well into the future," the Urban Institute's study shows (see story above). So, what could happen? The report says:
When a state's budget shortfall becomes serious enough, the incentive to cut overall spending could outpace the need to maintain all Medicaid programs.
Reduced spending on services for the aging and disabled populations would yield savings but would adversely affect a vulnerable population.
Higher federal matching rates would ease states' financial burdens and increase their incentive to expand coverage to more uninsured people, but the federal budget deficit makes this option a long shot.
With the aging of the population, long-term care costs are projected to increase as well.
In the face of multiple pressures, states could have a hard time maintaining current eligibility levels for Medicaid. Additional initiatives, perhaps at the federal level, may be required to reduce the number of uninsured persons.
An analysis of the Urban Institute's study, posted online May 22 by the journal Health Affairs, is at http://www.healthaffairs.org/WebExclusives/Holahan_Web_Excl_052202.htm.
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Copyright © 2002 by
American Academy of Family Physicians.