December 16, 2010

Federal Deficit Cutting Commission—Changes In Medicaid

The just-released report of the National Commission on Fiscal Responsibility and Reform includes several recommendations for saving federal health care dollars. Some of these are in the Medicaid program which, as a joint federal-state program, could have an impact on the state’s Medicaid budget.

One proposal would be to eliminate so-called “provider taxes” that states use to leverage more federal Medicaid matching funds. Connecticut has such a tax on nursing homes and its elimination here could reduce the amount of funding available to these homes.

Another recommendation is to have state Medicaid programs take full responsibility for (1) managing the health care of individuals eligible for both Medicaid and Medicare (dually eligible) and (2) enrolling them in managed care programs to ensure better care coordination. Connecticut has taken small steps to manage the health care of this population.

A third proposal would allow expedited applications for Medicaid waivers, which would “presumptively” qualify states for the waivers. Normally, the waiver process can take many months.