Transcript Barbara Edwards - Health Care and the Economic Slowdown

Health Care and the
Economic Slowdown
Barbara Coulter Edwards
National Association of State
Medicaid Directors
February 15, 2008
Medicaid By the Numbers
50 million covered lives
 70% of spending is for the elderly and
people of all ages with chronic or disabling
conditions
 40% of spending is for people already
covered by Medicare
 23% of state budgets
 60/40 is average federal/state funding split

Economy slows
Medicaid grows
More uninsured
Loss of
federal + state
funds to local
economies
Budget deficit
Cuts to Medicaid:
60% fmap means $2.40 cut in Medicaid
to save $1 in state GRF (provider rates, eligibility,
benefits)
Economy slows
Medicaid grows
More uninsured
Loss of
federal + state
funds to local
economies
Federal
Cuts
Budget deficit
Cuts to Medicaid:
Federal
stimulus:
FMAP
60% fmap means $2.40 cut in Medicaid
to save $1 in state GRF (provider rates, eligibility,
benefits)
State Actions to Contain Medicaid Costs
FY 2002 – FY 2006
Implemented 2002
46
Implemented 2003
50 50 50 50
48
43
Implemented 2004
Implemented 2005
Adopted for 2006
Number of States
41
32
26 25
25
22
21
18 19
16
14
8
Controlling
Drug Costs
Reducing/
Freezing
Provider
Payments
8
Reducing/
Restricting
Eligibility
9
17
7
Reducing
Benefits
20
18
13
8
11
7
4
Increasing
Copayments
Disease
Management
15
14
13
10
10
Long-Term
Care
SOURCE: Vernon Smith, Kathleen Gifford, Eileen Ellis, Amy Wiles, Robin Rudowitz and Molly
O’Malley, Medicaid Budgets, Spending and Policy Initiatives in State Fiscal Years 2005 and 2006:
Results from a 50 State Survey, Kaiser Commission on Medicaid and the Uninsured, October 2005.
http://www.kff.org/medicaid/7392.cfm