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Saturday, February 05, 2005Florida's Medicaid is more comprehensive than many private plans. Such generosity comes at a price. For the past six years, Medicaid spending has climbed 13 percent annually and now soaks up about a quarter of the state budget. And the worst is yet to come, with costs expected to rise to 35 percent of state revenue in the next four years. As a result, Governor Bush proposes something innovative: getting his state out of the business of micromanaging Medicaid. Under his plan, those eligible for Medicaid would qualify for a set, need-based amount of money. With this money, recipients could pick a plan among competing insurance company offerings--from more comprehensive coverage to less comprehensive but at a lower premium, with part of the money saved going to a recipient's flexible spending account for out-of-pocket medical expenses. In addition, the state would offer incentives in the form of better benefits to those who live healthier lives. The contrast between Florida's approach and that of other states couldn't be starker. At a time when state governments are developing more and more elaborate ways of controlling Medicaid, Jeb Bush envisions Tallahassee doing relatively little. Besides funding, Florida would ensure transparency of the private plans and counsel Medicaid recipients about their choices. Governor Bush's plan offers a way out, overcoming the federal-state divide. It allows governors to give recipients more choice, yet rein in spending by increasing competition among insurance plans. It's an innovative approach that controls costs, particularly since it involves recipients more in their health decisions. Notes Frogue, 'It's fiscally wise and pro-patient. The usual approach to cutting Medicaid costs is to cut back on reimbursements to hospitals, doctors, and pharmacies, who then turn around and decline to participate. The result is less access for Medicaid patients. As the article points out, in one study in California, only 2 out 50 orthopedists were willing to see Medicaid patients. posted by Sydney on 2/05/2005 02:03:00 PM 0 comments 0 Comments: |
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