NCSL Health Committee Proposes Medicaid Reform Platform

Washington

At the National Conference of State Legislatures’ fall forum last month, the organization’s health committee outlined its platform for controlling state Medicaid costs. Now that Medicare reform has been accomplished, NCSL representatives said they anticipate that Congress and the Bush administration will turn attention to reform of Medicaid.

Among major elements of the strategy is a call for the federal government to begin counter-cyclical financing, which would automatically boost federal Medicaid payments to states during economic downturns.

The platform announcement follows several NCSL survey reports describing how states have altered their Medicaid programs during the past two years of budget turmoil, and how they plan to alter them in the future.

According to State Medicaid Actions: A Two-Year Review of State Actions as a Result of the States’ Fiscal Crisis, 41 states froze or reduced reimbursement rates for at least one health care provider or facility. Thirty-one states established or increased cost sharing requirements for Medicaid recipients, and 22 states froze or limited eligibility.

A similar report titled 2004 State Health Care Priorities Survey, issued Dec. 9, said that states’ cost-cutting trend will continue this year. However, some states have considered expanding patient access to Medicaid, including 11 states that are considering home- and community-based service waivers.

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