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Across the nation, both Medicaid funding and Medicaid enrollment has plummeted following 2010 decreases in federal support to state Medicaid programs. (1)  Medicaid programs have crippled state economies across the nation causing states seek protection against a Medicaid the Obama administration wishes to greatly expand. (2)

Arizona’s Medicaid struggle

Arizona Governor, Jan Brewer, signed legislation formally seeking to remove 280,000 from the state’s Medicaid program. (3), (4)  Dozens of governors have asked the federal government to repeal the   maintenance-of-effort provision, but the measure signed by Gov. Brewer on January 21st makes Arizona the first state to seek a waiver against the federally mandated health care reform requirement to maintain current Medicare levels. 

Under the measure, Arizona will save $541 million over the fiscal year.  Opponents of the measure are quick to point out that the state will lose $300 million in federal support and in turn have sought a proposition to impose a 1% tax against the rich as a form of health tax.  The new health tax will be levied against individuals making $150,000 and couples making $300,000 a year. (3)  Unfortunately, such struggles with budget and government sponsored health care are not unique to Arizona.

Though Arizona has taken the forefront in certain aspects of the Medicaid conundrum, other states are seeking protections against Medicaid differently.  Following after California, 22 states are seeking the legal right to reduce Medicaid payment rates payable to health care providers who accept Medicaid patients. (6), (7)  This has spawned the obvious concern. 

National Medicaid struggle

In the wake of decreasing Medicaid pay rates, fewer health care providers will accept Medicaid as a payor source creating even further access issues that exist in state sponsored health care.  Health care providers echo the same concern and claim that cuts in Medicaid rates would drive them away from Medicaid patients citing they would not be able to afford to provide care to them. (3), (8)  Despite the concern, the states feel that without cutting Medicaid, they have nowhere within their state budgets to cut without causing grave economic harm to their citizenry. (9), (10)

Further complicating the matter for the individual states is the expansion of Medicaid under ObamaCare.  States cannot maintain their current Medicaid programs and fear that the forced expansion of the program will cause irreversible fiscal damage to economically stricken states. (11)  This has forced 27 states to file law suits against a federal government that has already had health care reform deemed unconstitutional by the federal court. (12)

For many Arizonans and Americans it is clear the future of Medicaid rests on the ability of the state and Obama administration to resolve the shortcomings that lie within health care reform.  While repeal of ObamaCare continues to gather support, a myriad of problems exist that need corrective action that only a united government can provide.

Published January 25th, 2010 on Examiner.

Refereces

1. data, Kaiser Commission on Medicaid and the Uninsured using CMS and KCMU. Change In Total Medicaid Spending And Enrollment, 1998-2011 . s.l. : Kaiser Commission on Medicaid and the Uninsured, 2010.

2. Johnson, Paul. The Repeal of Health Care Reform. Suite 101. [Online] 01 19, 2011. [Cited: 01 24, 2011.] http://www.suite101.com/content/the-repeal-of-health-care-reform-a334774.

3. Rough, Ginger and Reinhart, Mary K. Brewer signs law seeking Medicaid waiver. AZ Central. [Online] 01 21, 2011. [Cited: 01 23, 2011.] http://www.azcentral.com/news/election/azelections/articles/2011/01/21/2....

4. Davenport, Paul. Brewer proposes cut in Medicaid enrollment. AZ Central. [Online] 01 12, 2011. [Cited: 01 21, 2011.] http://www.azcentral.com/news/election/azelections/articles/2011/01/14/2....

5. Reinhart, Mary K. Arizona hospitals now support tax on revenue. The Arizona Republic. [Online] 01 25, 2011. [Cited: 01 23, 2011.] http://www.azcentral.com/arizonarepublic/local/articles/2011/01/25/20110....

6. Doyle, Micheal. Supreme Court takes on states' plans to cut Medicaid payments. The Kansas City Star. [Online] 01 18, 2011. [Cited: 01 21, 2011.] http://www.kansascity.com/2011/01/18/2593190/supreme-court-takes-on-stat....

7. Ramshaw, Emily. High Court To Decide If States Can Cut Medicaid Rates. The Texas Tribune. [Online] 01 20, 2011. [Cited: 01 21, 2011.] http://www.texastribune.org/texas-taxes/budget/high-court-to-decide-if-s....

8. Galewitz, Phil. States Cutting Medicaid Benefits As They Stagger Under Economic Downturn . Senior Journal. [Online] 10 04, 2010. [Cited: 01 21, 2011.] http://seniorjournal.com/NEWS/Medicaid/2010/20101004-StatesCuttingMedica....

9. Blase, Brian. States Cry to Washington: Remove Obamacare’s Medicaid Handcuffs. The Foundry. [Online] 01 11, 2011. [Cited: 01 21, 2011.] http://blog.heritage.org/2011/01/11/states-cry-to-washington-remove-obam....

10. Nix, kathryn. http://www.heritage.org/Research/Reports/2010/04/ObamaCare-Impact-on-the.... The Heritage Foundation. [Online] 04 20, 2010. [Cited: 01 21, 2011.] http://www.heritage.org/Research/Reports/2010/04/ObamaCare-Impact-on-the....

11. Smith, Dennis. Medicaid Expansion Ignores States’ Fiscal Crises. The Heritage Foundation. [Online] 01 05, 20101. [Cited: 01 21, 2011.] http://www.heritage.org/Research/Reports/2010/01/Medicaid-Expansion-Igno....

12. Rago, Joe. ObamaCare Loses in Court . The Wall Street Journal. [Online] 12 14, 2010. [Cited: 01 21, 2011.] http://online.wsj.com/article/SB1000142405274870372780457601767249562383....


Continue reading on Examiner.com: Arizona's and America's Medicaid Conundrum - Phoenix Libertarian | Examiner.com http://www.examiner.com/libertarian-in-phoenix/arizona-s-and-america-s-medicaid-conundrum#ixzz1CxW6niMs

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