Sacramento Bee Examines State Actions To Reduce Medicaid Expenses

Millions of low-income and elderly U.S. residents may face "siz[e]able cuts" in their Medicaid benefits in 2003 because of increased health care costs and state budget deficits, the Sacramento Bee reports. About 24 states have reported that their Medicaid and health care programs are over budget for the current fiscal year, and most states have spent emergency and tobacco settlement funds that prevented Medicaid benefit reductions in past budget deficits, according to Donna Folkemer, a Medicaid analyst at the National Conference of State Legislatures. A report released by the National Governors Association last month found that state expenditures on Medicaid and other health care programs, which account for 30% of state budgets, rose 13% last year, the largest increase in a decade. States also face an estimated $67 billion in combined budget deficits for the current fiscal year; states will have to raise taxes or make budget reductions in health care and other programs to cover the deficits. Few states can afford to maintain current Medicaid benefits, Folkemer said. NGA Executive Director Raymond Scheppach added, "We will see serious cuts. People will lose eye and dental care. Many more poor people will be stuck with paying part of their health bills. More people will be declared ineligible for Medicaid." Ron Pollack, executive director of Families USA, added, "Medicaid is the key health safety net for low-wage working families who can't get health coverage through their jobs. If states cut back the program, this safety net will be much more hole than webbing -- and the number of uninsured Americans will skyrocket." Some members of Congress have proposed legislation that would increase the federal government's share of Medicaid costs, but President Bush opposes the legislation (O'Rourke, Sacramento Bee, 12/10).