Urban Institute Examines Recent Health Policies for Low-Income People in Florida

The Urban Institute has released a report describing recent health policy changes in Florida as part of its "Assessing the New Federalism" series. Despite increases in Medicaid enrollment and the program's budget shortfall, the state avoided service cutbacks by implementing cost-control policies, such as a prescription drug formulary. While such "cost efficiencies" have proven effective in the short term, it is uncertain whether they will continue to be successful in the event of a "prolonged" economic slowdown. Florida reduced its number of uninsured children by expanding coverage through CHIP, but uninsurance rates for adults continue to be high because the state's rate of employer-sponsored coverage is at one of the lowest points in the state's history. In addition, annual income eligibility limits for adults to qualify for Medicaid coverage are low. The state's long-term care system also faces a "full-blown crisis." Staffing shortages have diminished the quality of care, which has resulted in increased litigation. The problem will be compounded by the lack of alternatives to nursing home care and Florida's already large senior population (Yemane/Hill, "Recent Changes in Health Policy for Low-Income People in Florida," 4/16). The full report is available online.