NGA Deserves ‘Kudos’ for Medicaid Restructuring Proposal, Los Angeles Times Says

With Medicaid costs "soaring," a Los Angeles Times editorial states that the National Governors' Association "deserve[s] kudos" for endorsing a proposal that would expand coverage while "curb[ing]" costs. Under the governors' plan, current Medicaid benefits would be "scale[d] back" in favor of covering more people. The Times writes that while the plan is "no cure all," it offers "fiscal discipline" in a time when Congress is proposing "crowd pleasing" legislation, such as a proposal to allow all Americans to join the Federal Employee Health Benefits Program -- a "Rolls-Royce health plan whose premiums rose 10.5% this year." The Times, however, warns that a similar proposal in Oregon to expand access has had "mixed" results. Oregon received a waiver in 1993 to increase access to Medicaid by "curtailing ... benefits." While the program decreased the state's uninsured population from 15% to 11%, the Times writes that "doctors find ways to get around the rationing." In addition, the Times notes that HHS Secretary Tommy Thompson should be "cautious" when considering the governors' proposal to use Medicaid funds to cover employee premium expenses for employer-sponsored insurance, since such programs benefit those with health coverage "at the expense of those in companies that do not offer any coverage." Nonetheless, the editorial states that the governors are offering a "much-needed reality check," and concludes that by "putting the issue of health care costs front and center, [the governors] may well force federal legislators to think more like state officials who have to match -- and stretch -- Medicaid dollars" (Los Angeles Times, 2/27).