Repair and Reform Medicaid: Even more essential under ObamaCare

by Joseph Coletti

Senior Fellow, Fiscal Studies, John Locke Foundation

March 22, 2011

Key facts:

North Carolina funding for Medicaid will exceed $3 billion in FY 2012.
North Carolina has one of the most expensive Medicaid programs in the Southeast, spending approximately $4.6 million more per year than Virginia and $2.4 million more per year than Tennessee.
Since 1990 the General Assembly has expanded eligibility for Medicaid and NC Health Choice by about 900,000 people.
ObamaCare forbids reducing eligibility back to previous levels. ObamaCare will also expand enrollment from 1.3 million people to potentially over 2 million people in 2014.
Medicaid already provides less access to care than private insurance. Without the ability to reduce enrollment among Medicaid recipients with higher incomes, access to care will decline for every Medicaid recipient.
Without reform or tighter eligibility, the state will need to cut some services and payments to doctors. Both options will mean worse care for every person on Medicaid.
Gov. Bev Perdue and the General Assembly need to push Washington for exemptions from Medicaid restrictions and greater ability to innovate with premium support and encourage patient control of their own care.