Washington State Likely to Cut Health Care Programs for Low-Income Residents

With the number of uninsured residents "on the rise," Washington state will likely limit health care coverage for thousands of low-income children, seniors, disabled individuals and working adults under Gov. Gary Locke's (D) proposed budget, the Seattle Post-Intelligencer reports. Washington's health care "safety net" -- which serves 30% of the state's children, 40% of pregnant women and 10% of seniors -- "faces its worst crisis in 15 years," state officials said. According to state Insurance Commissioner Mike Kreidler, "We can't make health care accessible for a growing number of people." This year, Washington faces a multi-billion dollar Medicaid deficit, prompted by a rising caseload and the "surging costs" of prescription drugs, new medical technologies and managed care. To combat the problem, state lawmakers will consider cutting a number of health care programs, and "in this tough budget year, many of them may pass," the Post-Intelligencer reports. The plan would boost premiums by up to 35% for working low-income adults enrolled in the state's Basic Health Plan, which serves uninsured, low-income residents who do not qualify for Medicaid. Under the program, families earning up to 200% of the federal poverty level -- about $35,300 for a family of four -- can purchase health insurance on a sliding scale, with premiums for a family of four ranging from $20 to $119 per month. In addition, certain Medicaid and CHIP benefits may be cut.

Short Term Relief, Long Term Trade Off?
Marty Brown, director of the state's Office of Financial Management, said that the proposed budget cuts target programs not mandated by the federal government, such as vision and dental coverage, and those that, if eliminated, would not cost the state federal matching dollars. Calling the proposed cuts "extremely short-sighted," Barbara Flye, executive director of Washington Citizen Action, said that the programs "under siege" have prevented thousands of "poor, hard-working families" from using "far more costly" emergency rooms for medical care. "You can't put off health care costs -- they'll come around to bite you sooner or later," she said. In addition, advocates for the uninsured point out that the proposed budget cuts "do nothing" to solve the long term problem of "escalating" health care costs, especially rising prescription drug prices (Foster, Seattle Post-Intelligencer, 3/15).