States Could Save with Shift in Financing

Shifting the financing of care for beneficiaries who are
eligible for both Medicare and Medicaid to the Medicare program
could save states as much as $47 billion and create new
opportunities for improved care management and coordination,
according to “Rethinking Medicaid’s
Financing Role for Medicare Enrollees,” a Kaiser Family Foundation issue
brief. The 8.8 million dual eligibles were responsible for 46
percent of all Medicaid spending for services in fiscal year 2005
($57 billion) and more than 25 percent of Medicare spending.

According to the brief, “Shifting these costs to the federal
government and making this population a principal focus of Medicare
policy could be an important component of efforts to slow the rate
of growth in overall health care spending, while potentially
improving outcomes and quality for dual eligibles.”