Health policy roundtable: how are Medicaid and SCHIP weathering the storm?
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Biomedical subjects
Publications and source records attributed to Alan Weil.
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This paper presents several options designed to help the Commonwealth of Massachusetts move to universal health insurance coverage. The alternatives all build upon a common base that includes an expansion of the Medicaid program, income-related tax credits, a purchasing pool, and government-sponsored reinsurance. These measures in themselves would not yield universal coverage, nor would an employer mandate by itself. We show that an individual mandate, and an employer mandate combined with an individual mandate, both would yield universal coverage with a relatively small increase in government costs relative to state gross domestic product and current health spending. The cost of an employer mandate--with a "pay or play" design--is sensitive to the payroll tax rate and base, the number and kind of exemptions, and whether workers whose employers "pay" receive discounts when they purchase health insurance. The development of these alternatives and their analyses contributed to the eventual health care compromise that emerged in Massachusetts in April 2006.
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In the thirty-seven years since its creation, Medicaid has grown in terms of whom it covers and what it costs. Current rates of Medicaid enrollment and cost growth are high relative to state budget capacity, but not by historical standards. The current Medicaid fiscal crisis is a result of weak state fiscal conditions and the gradual accretion of populations and services covered by Medicaid. States view Medicaid as an essential part of their current strategies to provide insurance to their low-income populations, cover the chronic care needs of people with disabilities and the elderly, and finance the health care safety net. Medicaid has accomplished much, and it can continue to do so if the underlying fiscal pressures and tensions built into it are addressed.
Although the State Children's Health Insurance Program (SCHIP) has accomplished a great deal, more than nine million children-many of whom are eligible for public health insurance-remain uninsured. In this commentary I propose that coverage for children should be universal, with eligibility systems operating behind the scenes in a way that relieves individual families of the burden of enrollment. States, the federal government, employers, and families would have to reconsider their roles in providing coverage, but starting with the appropriate vision would put the focus on practical problems and overcome the inherently limited approach of layered, incremental programs.
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