Medicaid Is in Bad Shape, and Getting Worse

by Daniel Foster

Yesterday Avik Roy had a good piece on the scandalous failure — on its own terms — of Medicaid. Today, Senator Jim DeMint (R., S.C.) adds a good ripped-from-the-headlines primer on why Medicaid’s troubles are likely to get worse. He lists three reasons:

1) Via Health Affairs, nearly one-third of doctors are no longer accepting new Medicaid patients. As Avik points out, this is due to the fractional reimbursement rates Medicaid offers compared to private or self-insurance. These are only getting worse, as lowering reimbursement rates are the only lever states have to keep costs in line.

2) Via Kaiser Health News, states are cutting access to prescription drugs for Medicaid recipients, for the reasons described in (1).

3) Via a GAO report, states are anticipating even higher costs with the full implementation of Obamacare, both as a result of the eligibility expansion itself and the administrative costs associated with it.

Full thing here.