States and Medicaid Cuts

Posted on January 31, 2011 by townsend

• For governors, Medicaid looks ripe for slashing, By Kevin Sack, January 28, 2011, New York Times: “Hamstrung by federal prohibitions against lowering Medicaid eligibility, governors from both parties are exercising their remaining options in proposing bone-deep cuts to the program during the fourth consecutive year of brutal economic conditions. Because states confront budget gaps estimated at $125 billion, few essential services – schools, roads, parks – are likely to escape the ax. But the election of tough-minded governors, the evaporation of federal aid, the relentless growth of Medicaid rolls and the exhaustion of alternatives have made the program, which primarily covers low-income children and disabled adults, an outsize target…”
• Medicaid cuts could lead to higher taxes, insurance premiums, By Tim Eaton, January 28, 2011, Austin American-Statesman: “Even if you don’t rely on Medicaid, Texas lawmakers’ proposed cuts in the health care program could cost you money. Cutting Medicaid could have outcomes beyond fewer services for the poor, several local officials in the health care industry said. Notably, taxpayers in Central Texas could end up with increased local taxes and higher insurance premiums, according to several Central Texas health care professionals. Tom Banning, the CEO for the Texas Academy of Family Physicians, said the proposed cuts don’t equate to savings. Rather, there is simply a shuffling of expenses. ‘This has the potential to be the biggest cost shift to local governments that Texas has ever seen,’ Banning said. The two largest hospital groups in Austin echoed those concerns…”