Washblog

Economy May Lead to Medicaid Cuts

A story in American Medical News (published by the AMA http://www.ama-assn.org/amednews/2008/10/20/gvl11020.htm) reports that many states, including Washington, may be faced with slashing Medicaid budgets in the face of the poor economy.  The result may be families taken off Medicaid rolls and moved to the uninsured category and it will almost certainly mean no reimbursement increases for health care providers and may even signal cuts.

The issue of pay cuts for physicians who treat Medicaid patients may seem a self-serving one, and to some extent it is, but the issue will become one of access for patients.  The physicians who care for Medicaid patients are not the wealthy and superficial like those seen on Dr. 90210 or The Doctors.  These are the good ones.  These physicians want to help the people who need the most help.  Despite being paid fifty cents on the dollar for their services and dealing with the social issues often associated with this population, they choose to participate in the Medicaid program.  Physicians are not required to do this.  Those who accept the most Medicaid patients often work in rural or inner city neighborhoods that are considered the most underserved for a reason.  Medicaid cuts to these folks doesn't mean that they will have to buy a Honda instead of a Lexus, it will mean that they will be forced to close their doors and go elsewhere.

An environment in which patients with Medicaid cannot find a primary care physician leaves chronic diseases unmanaged.  Preventive services are not received.  When they become sick or injured they can only seek care in the Emergency Room.  Sound familiar?  Cuts to Medicaid may not only increase the actual number of the uninsured, those remaining in the program may be functionally uninsured with no access to routine care.  Health care costs go up for all and the vicious cycle continues.  

In the AMNews article Doug Porter, the director of Washington's Medicaid program, notes he has orders to cut his program by 15% over the next two years.  His comment, "We're kind of in survival mode here."

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