CullmanTimes.com - Cullman, Alabama

Editorials

July 3, 2012

EDITORIAL: States wrangle with Medicaid holdup in health plan

CULLMAN — The unknown ground and anxiety associated with the Supreme Court of the United States’ decision to uphold the majority of President Obama’s national health care initiative is just beginning to take hold.

State officials across the country are looking closely at the role Medicaid could play in bringing more Americans into the ranks of the insured. But coupled with that part of the health care plan is the reality that many states are stretched to or beyond their limits in funding Medicaid.

Among those financially strained states is Alabama. Gov. Robert Bentley already has in place a task force to examine Medicaid funding issues that pre-dated the Supreme Court ruling. While Alabama’s leaders have not made a decision to increase Medicaid or opt out of that portion of the health care initiative, the consensus is that the state cannot afford additional costs.

The high court’s ruling says the federal court cannot take away states’ existing federal Medicaid dollars if they refuse to widen the program. While the plan calls for the federal government to pay the actual health care costs for new clients in Medicaid for the first three years, two points are making states hesitant to join. The administrative cost of adding thousands of people to the Medicaid roll would mean tens of millions of dollars of new expenses for states. After three years, states would also begin to fund a percentage of the medical costs.

The perplexing point for states such as Alabama is that thousands of residents could benefit from the insurance coverage, but afford the cost seems insurmountable at the moment. With the plan scheduled to take effect in 2014, the opportunity exists for states and the federal government to come together, minus the political lines, to find a solution to the Medicaid dilemma.



 

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