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Thursday, June 16, 2005
Congress Looks at Proposals to Reform Medicaid
The tough FY 06 budget calls for cuts in most discretionary programs, as well many entitlement programs. Specifically, House and Senate lawmakers have been charged with cutting some $10 billion or more from the Medicaid program. Yesterday, National Governor's Association Chairman Mark Warner (D-VA) and Vice Chairman Mike Huckabee (R-AK) presented their proposals for reform. These proposals are intended to provide Congress with a blueprint as lawmakers work to implement legislation to reduce Medicaid spending.
The proposals suggest improvements to reduce the cost of prescription drugs by increasing rebates from manufacturers, reforms to the Average Wholesale Price system, policies to increase generic drug use, and tiered copayments. In addition, the NGA plan suggests closing loopholes that allow some people to hide or transfer assets to qualify for Medicaid long-term care benefits, increasing cost-sharing for beneficiaries, and implementing judicial reforms to allow states to "locally manage the optional Medicaid categories." Sen. Max Baucus (D-Mont.), ranking member on the Senate Finance Committee, expressed concern about increasing cost-sharing, saying in his opening statement before the committee, "Onerous cost-sharing requirements can harm access to care. While personal responsibility is important, we should not place unduly high barriers to access through changes in cost-sharing."
Congress appears to be a long way from agreement on how to go about reforming Medicaid. The governors have long supported efforts to save more money on prescription drugs; to close loopholes that let people shelter assets to qualify for Medicaid-covered nursing home care, and to encourage the purchase of private long-term care insurance. More contentious are proposals to allow states to require patients to pay for more of their care and what the proposal refers to as "judicial reforms" that would shield states from lawsuits when they change Medicaid programs; both of concern to consumers and consumer advocates.
Posted by Becky Lewis
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