Do political economy factors affect Medicaid spending across states?
Political economy factors explain the differences in Medicaid spending across states, even though empirical measures of interest group dynamics do not correlate closely with the ACA expansion of Medicaid.
Was Medicare reform caught up in partisan politics?
With the distraction created by the war against Iraq in the spring of 2003, many observers believed that Medicare reform would once again be caught up in partisan politics and, without a significant investment of political capital by the president, would languish as it had in prior years ( Toner 2003a ).
How do political parties shape Medicaid?
The political party controlling a state legislature can shape a Medicaid program to fit its partisan goals, particularly in the case of discretionary spending. Citizen preferences play a much smaller role. Information problems.
Why does Medicaid keep growing?
Most of Medicaid growth is not due to an increase in the medical needs of poor Americans, but rather to the extension of program coverage to other groups. This interest group benefit also benefits state lawmakers, and the costs are passed on to taxpayers around the nation.
What political factors affect healthcare?
Political Factors Changing tax legislation, consumer protection and employment regulations, and insurance mandates are all elements in the political sphere that could have an impact on healthcare.
What impact did Medicare and Medicaid have on society?
Medicare and Medicaid have greatly reduced the number of uninsured Americans and have become the standard bearers for quality and innovation in American health care. Fifty years later, no other program has changed the lives of Americans more than Medicare and Medicaid.
What is the history of Medicare and Medicaid?
On July 30, 1965, President Lyndon B. Johnson signed into law legislation that established the Medicare and Medicaid programs. For 50 years, these programs have been protecting the health and well-being of millions of American families, saving lives, and improving the economic security of our nation.
Who led the campaign for Medicare and Medicaid?
On July 30, 1965, President Lyndon B. Johnson signed the Social Security Amendments of 1965 into law. With his signature he created Medicare and Medicaid, which became two of America's most enduring social programs.
How did Medicare change American society?
They removed the racial segregation practiced by hospitals and other health care facilities, and in many ways they helped deliver better health care. By ensuring access to care, Medicare has contributed to a life expectancy that is five years higher than it was when the law went into effect.
How does Medicare and Medicaid affect the economy?
Medicaid spending generates economic activity, including jobs, income and state tax revenues, at the state level. Medicaid is the second largest line item in state budgets. Money injected into a state from outside the state is critical to generating economic activity.
What led to the creation of Medicare?
The Medicare program was signed into law in 1965 to provide health coverage and increased financial security for older Americans who were not well served in an insurance market characterized by employment-linked group coverage.
What were the purposes of Medicare and Medicaid quizlet?
Medicare provides health care for older people, while Medicaid provides health care for people with low incomes.
How was Medicare developed?
In 1962, President Kennedy introduced a plan to create a healthcare program for older adults using their Social Security contributions, but it wasn't approved by Congress. In 1964, former President Lyndon Johnson called on Congress to create the program that is now Medicare. The program was signed into law in 1965.
Which political party brought in Medicare?
The first iteration of Medicare was called Medibank, and it was introduced by the Whitlam government in 1975, early in its second term. The federal opposition under Malcolm Fraser had rejected Bills relating to its financing, which is why it took the government so long to get it established.
Which political party wanted a national health care plan established for all Americans in the 1990s?
DemocratsBy the 1990s, Democrats geared up to tackle health reform again under President Bill Clinton. But the Clinton Administration intentionally distanced itself from the single-payer model, instead taking a more moderate approach and sought to expand coverage to everyone while preserving private and employer insurance.
How did the creation of Medicare reflect the ideals and goals of President Johnson's Great Society?
Medicare gave health insurance to those who needed it most, senior citizens who mostly lacked proper health insurance during this time. Johnson's Great Society aimed to improve the lives of those who needed it the most within the country which is precisely what Medicare did.
How is the political economy of Medicaid undermined?
Representative democracy is undermined when public policies reflect specific interest groups’ ability to organize themselves rather than the underlying preferences of citizens in society. The academic literature on Medicaid demonstrates strong evidence that political economy factors drive state Medicaid spending:
What are the factors that explain the differences in Medicaid spending across states?
Political economy factors explain the differences in Medicaid spending across states, even though empirical measures of interest group dynamics do not correlate closely with the ACA expansion of Medicaid.
What are the most policy-relevant determinants of program growth?
The most policy-relevant determinants of program growth are the matching rates and the open-ended nature of Medicaid grants to states. Matching grants are inefficient and remove spending responsibility from state policymakers by sharing state costs with the federal government.
Why are Medicaid grants open ended?
Medicaid grants are open-ended. Because matching grants are open-ended, states using Medicaid dollars gain a systematic advantage over states that fund their own programs. Medicaid funding rules allow states to use funding tricks. States can use funding tricks to increase the number of federal dollars they receive.
How does Medicaid work?
Medicaid allows federal money to flow to the states in the form of a matching grant. Once a state opts in, it is required to contribute a given amount of funding to the program for each dollar received from the federal government. Historically, the federal government has provided close to 60 percent of the funding for Medicaid.
What does higher matching mean for Medicaid?
Higher matching rates mean that states use more of their own dollars for their Medicaid services. States that have not expanded Medicaid also display similar political leanings, as reflected by the partisanship of each state or by citizens’ voting patterns during presidential elections.
What happens if you don't expand Medicaid?
In other words, states that have not expanded have seen a larger growth in Medicaid expenditures and higher enrollment.
How much money would the federal government save on medicaid?
The states would be required to pass back to the federal government $88 billion of the estimated $115 billion they would save on Medicaid drug coverage. It prohibited beneficiaries who enrolled in Part D from buying supplemental benefits to insure against prescription drug expenses not covered by the program.
Who raised the issue of prescription drug coverage in Medicare?
When the proposal was finalized at a meeting of the president, HEW secretary Eliot Richardson, and Assistant Secretary for Planning and Evaluation Lewis Butler, the issue of prescription drug coverage in Medicare was raised at the request of Commissioner of Social Security Robert Ball.
How many Medicare beneficiaries will have private prescription coverage?
At that time, more than 40 million beneficiaries will have the following options: (1) they may keep any private prescription drug coverage they currently have; (2) they may enroll in a new, freestanding prescription drug plan; or (3) they may obtain drug coverage by enrolling in a Medicare managed care plan.
How much does Medicare pay for Part D?
The standard Part D benefits would have an estimated initial premium of $35 per month and a $250 annual deductible. Medicare would pay 75 percent of annual expenses between $250 and $2,250 for approved prescription drugs, nothing for expenses between $2,250 and $5,100, and 95 percent of expenses above $5,100.
How much did Medicare cut in 1997?
Nonetheless, reducing the budget deficit remained a high political priority, and two years later, the Balanced Budget Act of 1997 (Balanced Budget Act) cut projected Medicare spending by $115 billion over five years and by $385 billion over ten years (Etheredge 1998; Oberlander 2003, 177–83).
How long have seniors waited for Medicare?
Seniors have waited 38 years for this prescription drug benefit to be added to the Medicare program. Today they are just moments away from the drug coverage they desperately need and deserve” (Pear and Hulse 2003). In fact, for many Medicare beneficiaries, the benefits of the new law are not so immediate or valuable.
When did Medicare start paying the $30 enrollment fee?
The voluntary interim program would begin in mid-2004. Medicare would pay the $30 enrollment fee and provide a $600 credit for those beneficiaries with a household income below 135 percent of poverty (in 2003, $12,123 for an individual and $16,362 for a couple) who do not qualify for Medicaid or have other coverage.
Red States Trickle In
Medicaid expansion was supposed to be a settled political issue after the Affordable Care Act passed in 2010. That’s because the law called for all states to expand Medicaid, offering eligibility to any adult earning up to 138% of the federal poverty line ($17,236 annual income for an individual), even those without children or a disability.
Strongest Prospects in Kansas
Prospects for expansion are likely strongest in Kansas. The legislature passed expansion in 2017, only to have the bill vetoed by then-Gov. Sam Brownback, a Republican. This year, the House passed an expansion bill in its legislative session but a Senate committee came up one vote shy of moving the measure to the floor.
