Volume III, Number 4
April 2005
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Published by the Michigan Health & Hospital Association

A monthly report of health care issues for Michigan news media.

Contact Sherry Mirasola, (517) 323-3443

Web site: www.mha.org

In this issue:

West Michigan leads state's skyrocketing Medicaid caseload

Despite record caseload, EO slashes $40 million from Michigan's 2005 Medicaid program

Congress returns to focus on 2006 federal budget

CDC: More Americans without private health care insurance

Editorial: What about Medicare?

 

West Michigan Leads State's Record Growth in Medicaid Patients

Michigan's record growth in Medicaid patients has been led by West Michigan, where the number of people getting health care through Medicaid has increased by more than 59 percent since 1994, a new state Senate Fiscal Agency study shows.

The study, "Medicaid Enrollment in the State of Michigan 1999-2004," confirms that more Michigan residents than ever before are now receiving health care through the Medicaid program. One in seven Michigan residents now has health care coverage from Medicaid.

"At the end of Fiscal Year 2003-2004, the State of Michigan had 1,407,712 individuals enrolled in Medicaid," concludes the study, which was released March 29. "This represented the largest caseload in the history of Michigan's Medicaid program."

Geographically, West Michigan has led the state in Medicaid caseload growth, the study shows. The five Michigan counties with the largest growth in Medicaid patients are:

"For far too long, too many people have assumed that the face of Medicaid in Michigan has been the face of urban and southeastern Michigan, but clearly Medicaid is now the only source of health care for more than 1.4 million people across the state," said MHA President Spencer Johnson. "By far, the counties that are experiencing the biggest growth in Medicaid patients are in West Michigan."

The study also concludes that the Medicaid caseload growth in Michigan is "consistent with trends observed nationally during this period."

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Despite Record Caseload, Executive Order Cuts Medicaid by $40 Million

Michigan's record number of Medicaid patients and the health care providers who treat them were cut by nearly $40 million in the executive order budget reduction approved by the legislature in late March.

With passage of the order, the state has slashed Medicaid spending by more than $540 million since 1998. The governor has proposed another $100 million in Medicaid spending reductions in her proposed 2006 state budget, and certain legislators are pushing for even deeper cuts.

Medicaid cuts are eliminating Michigan health care jobs, reducing federal funding to the state, driving health insurance premiums higher for employers, and causing human suffering for thousands of Michigan's most vulnerable residents.

"We just can't afford any more Medicaid cuts," said MHA President Spencer Johnson. "We can't afford to deny health care to even more Michigan children, families, and elderly and disabled residents. We can't afford to continue sending Michigan taxpayers' dollars to states in the west and south. Michigan already has the nation's highest unemployment rate, and we can't afford to lose even more good jobs."

The MHA is urging the governor and legislature to commit stable and adequate funding to health care over the long term to protect children and the elderly, to protect thousands of good jobs, and to keep employer health care costs in check.

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Medicaid Cuts of up to $20 Billion Proposed to Help Balance Federal Budget

When Congress returns from Spring recess early this month, lawmakers will get back to work on the 2006 federal budget, with cuts to Medicaid estimated at anywhere between $0 and $20 billion.

Major cuts will again force states such as Michigan to slash their Medicaid programs even more, potentially leaving tens of thousands of people with no health care in Michigan alone.

Currently, President Bush, the Senate and House have major differences over the Medicaid budget. A compromise budget resolution could include no Medicaid cuts or reductions totaling up to $20 billion. Because of procedural protections provided to the budget process (called "reconciliation"), any cuts included in a joint budget resolution are virtually impossible to eliminate and require only 51 votes for passage in the Senate. It is possible that Congress will not be able to agree to and pass a joint resolution. If this happens, as it did last year, individual budget bills will be subject to traditional Senate procedural requirements and Medicaid cuts would likely require 60 votes to pass. To protect the well-being of Michigan's most vulnerable populations, it is critical that Congress decides to not cut federal funding for the Medicaid program.

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CDC: More U.S. Citizens without Private Health Care Insurance

Nearly one in five nonelderly Americans surveyed in the first three quarters of 2004 lacked health insurance coverage at some point during the previous year, and more than one in 10 was uninsured for a year or more, according to early findings from the National Health Interview Survey.

The survey by the US Centers for Disease Control and Prevention's National Center for Health Statistics tracks 15 key health indicators, including health insurance coverage. Preliminary results also show that the share of Americans under age 65 with private health insurance coverage has fallen since 1999 from 73.1 percent to 68.6 percent, while the share of those with public coverage, such as Medicaid, increased from 12.4 percent to roughly 16 percent.

Nearly one-third (29 percent) of children under 18 now are covered by public insurance, such as Medicaid and the State Children's Health Insurance Program, called MIChild in Michigan.

To help combat the plight of the uninsured and underinsured in the state, a combination of individuals, health care providers, and organizations from every sector of society are uniting May 1-8 for Cover the Uninsured Week 2005. The event mobilizes communities to highlight the growing problem of Americans living without health care coverage. A news conference, health fairs and other events are scheduled throughout Michigan during the week to educate people about the issue and help raise awareness of the plight of the uninsured. In addition, an online guide is available to help uninsured Michigan residents find affordable health insurance.

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If Social Security is in Crisis, What about Medicare?

Spencer Johnson, president Michigan Health & Hospital Association

President Bush, many in Congress and others across the nation are pulling out the stops to "save" Social Security. They note, correctly, that a massive wave of baby boomer retirements will soon put the Social Security fund in the precarious and unsustainable position of paying out more to retirees than active workers are paying in. Something, they argue, must be done. If not, Social Security's reserves will begin to dwindle by around 2041.

But the financial woes of the Medicare fund dwarf those facing Social Security, much like an 800-pound gorilla dwarfs a mouse.

Late last month, trustees who oversee both the Medicare and Social Security programs reported to Congress that Medicare is in a full-blown crisis. While Social Security needs urgent reform, if no actions are taken to address Medicare's financial problems, the hospital insurance trust fund will run dry by 2020, two full decades before Social Security begins to show significant problems.

Those of us who rely on government-funded health care programs to care for our nation's elderly patients urge the president and Congress to put as much political focus and will behind fixing Medicare as they do to protect Social Security. We must find a stable, long-term funding source or significantly slash benefits at a time when fewer citizens are being covered by private health care insurance (see related story).

A human crisis is unfolding before our eyes, yet our politicians seem blinded to its most ominous problems and challenges.

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©2005 by the Michigan Health & Hospital Association. All rights reserved. Materials may be reproduced with credit attributed to the MHA.