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Health Care: A Nation in CrisisWhile millions of working Americans remain uninsured, a growing number of newly unemployed people may face problems accessing Medicaid or the State Children's Health Insurance Program (SCHIP), according to a recently released study by the Kaiser Family Foundation's Commission on Medicaid and the Uninsured. Pointing to research by the Urban Institute, Kaiser said an increase of just one percentage point in unemployment reduces state revenues by three to four percent, which in turn reduces funds available for Medicaid and SCHIP by the same amount. Additionally, a one-percentage-point jump in jobless rates means that 1 million more people are eligible for these government-funded insurance programs at a total cost of $3.4 billion — $1.4 billion of which comes from states and $2 billion from the federal government. As the economy worsens, some 27 states and the District of Columbia are projecting budget deficits in 2009. Legislatures in at least 13 states are feeling pressure to crack down on spending and target reductions in Medicaid, just at a time when people need these programs to protect the health of their children and themselves. Rapid responseAccording to the Kaiser report, the federal government needs to step in — and fast. In a separate policy brief, Kaiser looked back at the economic downturn of 2003-2004, when the federal government helped states by providing $20 billion in financial relief. Half of those funds were designated to support a 2.95 percent funding increase for each state's medical-assistance programs; those funds were provided with the condition that states not tighten Medicaid eligibility standards. A proposed $12 billion cut in Medicaid spending may be postponed by Congress but, in a press release, Kaiser said, "With another economic downturn coming so quickly after the last one, states may have fewer policy options to control spending this time." Meanwhile, more Americans are losing their jobs. In May 2008, unemployment rates reached 5.5 percent, up .05 percent from April — the biggest one-month increase in two decades. Researchers at the Urban Institute said the federal government needs to act quickly to increase Medicaid funding, at least temporarily, and target these increases toward states with the greatest needs. Another option the institute suggests is for the feds to allocate increased funds to states that meet certain criteria, either for a limited time or with a long-term formula to be used during future economic downturns. In a tough economic environment, organizations are seeking creative ways to keep health care costs down. Contact our business development professionals at 1.800.222.077 to learn what solutions will work for you. |
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