Improve efficiency to save money
The Bush proposal to cut $40 billion from Medicaid before savings are realized would jeopardize the health care for the poorest Americans was the message that came out of the Governor's conference this week . President Bush made the case that the the growing Medicaid expenditures must be reduced. There was agreement to look for ways to streamline Medicaid, reduced fraud and lower the cost of prescription drugs. One example is that some elderly Americans are transferring assets to their family to qualify for Medicaid. This practice must be dealt with to help stem the rising costs. Medicaid will pay for 53 million of the poor and disabled for an estimated cost of $329 billion.
The governors were clear, to make the proposed cuts in the Federal Budget before savings are realized can not be absorbed by the state budgets. Therefore rather than simply cutting the appropriation as Mr. Bush has suggested, it will be necessary to streamline Medicaid first and produce the savings before cutting the Federal contribution. There were signs that the governors understood the impact of this growing expenditure and the need to addresses the problem but made Mr. Bush understand simply cutting the Medicaid appropriation as he is proposing simply transfers the problem from the federal to the state budgets. One of one of the factors which is increasing Medicaid costs is the loss of health care by lower paying jobs. It is doubtful, given the catastrophic impact on every state budget, that the cuts proposed by Bush will make it through Congress until savings have been realized.