Medicaid (was RE: Walzer on the Left)

Jim Westrich westrich at miser.umass.edu
Tue Mar 26 10:05:59 PST 2002


I think the reason Medicaid is on more solid foundation politically has a lot to do with its state-administration and its funding. Even while serious deficits in this fiscal year, the cuts in Medicaid are not as pronounced as in other areas. Because of federal matching 50%-75% on basic health care and even more in some other budget areas, a state needs to cut $1 million in programs to save around $500 thousand in the state budget. Also, that is a loss of $1 in revenue for industries (hospitals, doctors, nursing homes, etc.) that usually is pretty well connected. I have heard several Medicaid directors and researchers of all political stripes that mention this.

This, of course, does not explain why the Feds do not complain but again they are just doling out part of the money and no administration. They do not like to be cheated by the states and raise a stink when certain funding streams get out of wack (hospital share stuff and uncompensated care pools) but have left a lot alone.

There is also the argument that Medicaid essentially subsidizes all people's health care. That is, to the extent that Medicaid actually pays for care received by the poor (instead of given away for free) then that reduces the need to share the costs of people who cannot pay. I do think some people intuit this in their support of Medicaid.

Jim

Max Sawicky wrote:
>Another possibility is they hate programs that
>provide money to able-bodied people who don't work.
>The EITC is means-tested, in its own way, and the
>only ones who hate it are some extreme-right Repugs.
>Senator Boren, about as far to the right as you can
>get for a Democrat, once proposed a new WPA.
>The public doesn't seem to hate means-tested
>Medicaid. (Food stamps, maybe.) Against all
>apparent odds, it has been
>growing like Topsy for 15 years. --mbs

So Topsy isn't the stunted one. I guess it's just Flopsy and Mopsy that are stunted.

"For I'm not bound and I never will be to a wrinkled crinkled wadded dollar bill."

-Mac Wiseman



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