http://mycn2.com/politics/ky-needs-medicaid-expansion-but-the-question-remains-whether-it-can-afford-it-haynes-says

Publication Date: October 11, 2012

Author: Ryan Alessi

Ky. needs Medicaid expansion but the question remains whether it can afford it, Haynes says

10/11/2012 09:10 AM

Kentucky would benefit from expanding Medicaid to more low-income families under the Affordable Care Act, but economists and actuaries are just now looking into whether the state can afford it over the long haul, Kentucky’s health cabinet secretary said.

Speaking to non-profit leaders at the Kentucky Youth Advocates’ “Step Up for Kids” forum this week, Haynes initially stated the obvious: it’s the governor’s decision to expand the program to cover people earning up to 138 percent of the poverty rate.

But she went on to say that covering more low-income Kentuckians can help improve the overall health of the state.

“By expanding Medicaid, we’re able to really focus on much more managed care and preventative care. I’ve often said … we’re atop of all the lists we want to be at the bottom of and at the bottom of all the lists we want to be at the top of,” she said. That includes being among the worst states for rates of diabetes, heart disease and certain cancers.

“We should all wants kids and families to have access to affordable care,” Haynes said.

But while the federal government will pay for the expansion of the program for the first three years, the state will have to pick up a small part of the tab starting in 2017 — at a time when the budget already is tight.

Still, Haynes said the expansion of the program could lead to general fund savings in some areas, would provide an influx of more federal matching funds to improve care for Kentuckians and would generate economic activity as the money flows into hospitals and health care providers.

Kentucky pays three managed care firms a total of about $3 billion of the total $6 billion Medicaid program to cover the health needs of 725,000 poor and disabled Kentuckians, Haynes said.

The other half of the Medicaid budget covers about 125,000 Kentuckians — most of whom are the most ill and require expensive long-term care.

Shifting to a managed care system is supposed to save the state money as those firms take over billing and payments to doctors and hospitals for treating Medicaid enrollees. But Haynes said it won’t necessarily mean laying off many of the 200 Health and Family Services Cabinet employees who were handling Medicaid billing.

Instead, she said many will shift to new roles in overseeing the managed care contracts:

About Ryan Alessi

Ryan Alessi joined cn|2 in May 2010 as senior managing editor and host of Pure Politics. He has covered politics for more than 10 years, including 7 years as a reporter for the Lexington Herald-Leader. Follow Ryan on Twitter @cn2Alessi. Ryan can be reached at 502-792-1135 or ryan.alessi@twcable.com.

Comments

  • Jodi Mitchell wrote on October 12, 2012 09:58 AM :

    The Case is Clear—Expanding Medicaid is Good for Kentucky
    To effectively meet our health challenges, Kentucky policymakers need to take action to expand Medicaid. The Medicaid expansion available under the ACA will provide health coverage to more than half of the 621,000 uninsured Kentuckians at only a fraction of the cost of the current Medicaid program. Failing to act will leave thousands of Kentucky families with no health coverage, forcing them to seek care in an emergency room or wherever they can with no way to pay the bill—costs estimated at more than $1 billion per year that all of us must eventually pay. Refusal to expand Medicaid will also cause private health insurance premiums to increase and create a Medicaid “donut hole” as many families will have too much income to qualify for Medicaid and not enough to receive tax credits to purchase private health insurance. The expansion will also pump more than $11 billion in additional federal funds into Kentucky’s economy through 2019 and reduce the amount of uncompensated care—saving Kentucky as much as $828 million through 2019 and providing a needed economic boost in tough times. With our low income and poor health status, Kentucky cannot afford to pass up this historic opportunity to expand health coverage for its citizens.

  • Mike wrote on October 13, 2012 10:40 PM :

    Thank you, Jodi Mitchell.

    It is a matter of doing what is needed rather than the politically expedient thing, too; and I don’t know if there are many left who are willing to do that.

    The better answer, of course, is Medicare for All, so that the poor would have equal access to medical care with at least the upper upper middle class folk in the top 10% or so. Get rid of Humana, BC/BS, UHC, etc., and have a single payer system for everyone that covers virtually everything AND reduce the overall cost of medical care while also covering everyone.

    House Bill 676 is there now; and several folk have signed on to it. There is absolutely zero reason economically not to do this. It would be good for business, for individuals, and for our future when we would eventually have a healthcare system, rather than no system except when you get sick.

    The choices lawmakers have are numerous and difficult; but favoring the wealthy doesn’t make them on the right side of history. (Remember the Czars and Marie Antoinette.)

What do you have to say?





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