Introduction:
This report substantiates the significance of the United States government involvement in providing adequate medical care and Medicaid utilities, to its citizenry, both in the present and across the future generations. The author will set stage by defining the prevalent Medicare arrangements between the federal and state governments. Secondly, the author will focus on political discussions around the sustainability of the Medicaid.
Medicaid overview:
The Medicaid was initially enacted in 1965 to capacitate states to provide medical assistance, social-support and rehabilitative services to families, the elderly, and to individuals living with disabilities. The initial plan was to cater for individuals whose income and resources were insufficient to finance their medical needs independently. Presently, the number of individuals that fall in this category has continued to increase to unmanageable volumes, and this has considerably strained the allocated budget (Kaiser Commission., 2011)
Under the Affordable Care Act (ACA), the Medicaid services were categorically established as the primary base for the low-income population medical coverage. With the recent financial recession experienced within the past seven years, the state government has continuously reduced its budget to fund the federal Medicaid services. With contracted budget, policy makers continue to endorse new structural adjustments to the Medicaid program. Some of these changes seek to address eligibility and cost-sharing arrangements. The principal political stand evolves financial sustainability and eligibility, where most states consider reducing eligibility to address state budget shortfalls.
Medicaid financing:
Since the 1970s, many Medicaid beneficiaries have continued to receive Medicare benefits through health private plans as a substitute to the original fee-for-service Medicare. Across the past decades, the Congress have introduced several policy adjustments to motivate the participation of the private plans, and contribute to the national health budget. However, the role of the private plans has raised questions in terms of their contribution to the national health budget (Kronick & Rousseau, 2007).
It is not clear how the employed enrollees contribute to the budget through their monthly premiums, and this has elicited political debate over the Medicare Advantage Plans. Instead of reducing the government expenditure, these private companies have left the government to meet their Medicare obligations. Policy makers have analyzed the efficacy of the Medicare private plans in setting adequate payments from their clients and the enrolment criteria, where an increased number of enrolments have continuously strained the government medical subsidies. Further, the lawmakers have expressed their concerns about the current payment system shortcomings in creating a fiscally strong Medicare program.
Effects of increased Medicaid budget:
Medicaid is an essential resource of health insurance for about 45 million low-income earning Americans, mainly the seniors aged 65 years and above, but also to 7 million younger adults living with disabilities and pregnant women. Before the Medicaid became a law, most of these groups lacked essential medical coverage. As these numbers expand, the program has perpetually encountered a critical challenge in financing the care services without excessively burdening the beneficiaries, taxpayers, or the entire economy.
Financing care to current and future generations prevails as the greatest challenge facing the Medicare, with the sustained increase in healthcare expenses, a bulging aging population, increased unemployment, and the decreasing ratio of workers to beneficiaries. Annual increases in Medicaid spending are set to rise across the next forty-five years (Kronick & Rousseau, 2007). It is projected that as the national health budget continues to expand beyond the state’s general revenue growth, other state spending priorities, such as education and transportation are likely to suffer.
Conclusively, as the expanding Medicaid budget continues to limit the state funding on other sectors, it is projected that the state revenue will stagnate or perform poorly. This financial stalling will affect the Gross Domestic Product (GDP) and will correspondingly affect with the healthcare budgeting as well. It is projected that many adults will lose employer coverage, and few of them will be entitled to the Medicaid coverage.
References:
Kaiser Commission on Medicaid and the Uninsured., & Henry J. Kaiser Family Foundation. (2011). Federal core requirements and state options in Medicaid: Current policies and key issues. Washington, DC: Kaiser Commission On Medicaid and the Uninsured.
Kronick, R., & Rousseau, D. (January 01, 2007). Is Medicaid sustainable? Spending projections for the program's second forty years. Health Affairs (project Hope), 26, 2.)
