Administration looks to help states cut Medicaid
Share with others:
WASHINGTON -- Facing a brewing revolt among states wrestling with massive budget shortfalls and tattering health care safety nets, the Obama administration is intensifying a drive to help state leaders find ways to wring savings from their Medicaid programs.
On Thursday, Health and Human Services Secretary Kathleen Sebelius sent a letter to the nation's 50 governors suggesting a range of cuts they can make to Medicaid, including dropping some people from the program.
"I know you are struggling to balance your budget while still providing critical health care services to those who need it most," Ms. Sebelius told governors in the letter. "In light of difficult budget circumstances, we are stepping up our efforts to help you identify cost drivers in the Medicaid program and provide you with new tools and resources to achieve short-term savings and longer-term sustainability."
The nation's Medicaid programs, which are jointly funded by federal and state governments, now cover about 53 million poor children and adults, after swelling substantially in the recent economic downturn. The expanded safety net was made possible by more than $100 billion in emergency aid provided by Congress over the last two years. But as that special aid expires, states are scrambling to preserve their programs.
And many governors -- including some Democrats -- are chafing at a requirement in the new health care law that they maintain coverage for many of their poorest residents.
The Obama administration is particularly concerned with maintaining state Medicaid programs because under the new health care law, these government insurance plans are expected to provide a foundation for guaranteeing coverage to all Americans beginning in 2014.
In her letter, Ms. Sebelius reminded governors, many of whom are in their first months in office, that they actually have numerous options to trim spending from their programs now. And she offered help from Washington to develop ways to streamline care, cut prescription drug costs and modernize their programs.
"Medicaid really is an extraordinarily flexible program," Cindy Mann, who heads the Health and Human Services' Center for Medicaid and State Operations, said in an interview.
First Published February 4, 2011 12:00 am
