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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Month: October 2011

State Medicaid Programs

  • California gets OK for large cuts to Medi-Cal, By Anna Gorman, October 28, 2011, Los Angeles Times: “The Obama administration will allow California to cut hundreds of millions of dollars from Medi-Cal, a move doctors and experts say will make it harder for the poor to get medical treatment. California plans to reduce rates by 10% to many providers, including physicians, dentists, clinics, pharmacies and most nursing homes, the Centers for Medicare and Medicaid Services announced Thursday. The cuts ‘will have a real impact on Medi-Cal patients’ because fewer doctors will be willing to see those covered by the program, which serves 7.6 million poor and disabled Californians, said Anthony Wright, executive director of Health Access, a consumer group. The head of the California Medical Assn., which represents doctors, echoed the concern…”
  • Medicaid costs balloon for cash-strapped states, By Tami Luhby, October 27, 2011, CNNMoney.com: “As stimulus funds dry up, cash-strapped states are facing steep rises in Medicaid spending, forcing them to slash services and trim costs. States will have to spend another 28.7% on Medicaid this fiscal year — by far the largest increase ever, according to new data released by the Kaiser Family Foundation Thursday. Much of the increase comes from the loss of more than $100 billion in federal stimulus funds, which helped buffer states from the massive jump in Medicaid enrollment during the Great Recession. But those federal funds ran out in June, leaving states to shoulder the burden of covering nearly 60 million people on their own…”
  • State spending on Medicaid up sharply, By N.C. Aizenman, October 27, 2011, Washington Post: “The expiration of federal stimulus funding for Medicaid has dealt a blow to states still struggling to recover from the economic downturn, according to figures released Thursday. To compensate for the loss of extra federal Medicaid dollars this June, states have increased their spending on the program by an average of 29 percent in the current fiscal year. Nearly every state also has turned to tough measures to trim Medicaid costs, such as eliminating benefits, reducing payment rates to doctors and hospitals, and increasing the co-payments they charge the poor and disabled served by the program. Even so, more than half of state officials surveyed said there was a 50-50 chance their Medicaid programs – which are financed with a combination of state and federal funds – would face a budget shortfall as enrollment continues to rise…”
  • Survey: States counting on lower costs as Medicaid enrollment slows, By Christine Vestal, October 28, 2011, Stateline.org: “As states were drafting their 2012 Medicaid budgets this summer, they faced the biggest leap in general fund spending since the program began – a whopping 29 percent increase. That’s mainly because federal stimulus dollars for the program dried up, leaving states to shoulder their traditional share of the bill – about 50 percent. As a result, state lawmakers authorized only a 2 percent increase in overall spending for the federal-state health insurance program for low-income people – one of the lowest growth rates on record. That’s according to a 50-state survey released Thursday (October 27) by the Kaiser Family Foundation…”

Poll of Jobless Americans

Facing hardship, jobless still say they have hope, By Michael Cooper and Allison Kopicki, October 26, 2011, New York Times: “The nation’s lingering unemployment crisis has forced many people without work to dip into their savings, borrow from relatives and do without necessities including health insurance, and most people who receive unemployment benefits said that the money was not enough to meet their basic needs, according to a New York Times/CBS News poll of jobless Americans. Still, despite enduring hardships and being even more pessimistic about the nation’s economy than the general public, unemployed Americans remained optimistic about eventually landing jobs. A little more than half of those polled said they were either very or somewhat confident they would find long-term employment in the next year, and a majority said they expected that when they did find permanent work, it would be at a similar or higher salary than they had received in the past. But the poll found deep unease about unemployment benefits…”

Marriage, Income and Poverty

Fewer marriages, fewer jobs: what’s contributing to poverty?, By Katie Leslie, October 27, 2011, Atlanta Journal-Constitution: “Losing a job is a quick and certain path to economic distress, as all too many Georgians have learned in recent years. But new census data highlight another, deeper-seated trend with profound implications for the long-term prosperity of middle-class families: the disappearance of marriage as a norm, especially among those who have children. In Georgia, from 2008 to 2010, the poverty rate was higher among single women raising children than among the unemployed — 39 percent vs. 31 percent — according to an Atlanta Journal-Constitution analysis of 3-year census estimates released Thursday…”