What are some future challenges affecting Medicaid?
With the passage of the Deficit Reduction Act of 2005 (DRA), Medicaid spending is expected to decline. The DRA gives states new flexibility to limit benefits and impose premiums and cost sharing. This new law provides options focused on expanding community based long-term care, requires states to make changes to the asset transfer rules that affect eligibility for Medicaid nursing home services, and requires states to obtain proof of citizenship for Medicaid enrollees. Beyond this, some states are pursuing major and fundamental program reforms through Medicaid waivers. The aging of the population can also be expected to increase demands on Medicaid, since the health care needs and costs for the elderly and people with disabilities are the most costly. Moreover, Medicaid covers long-term care for low-income Medicare beneficiaries, and is the single largest source of financing for long-term care. As demand increases, long-term care costs can be expected to rise. Sources: Medicaid: A Prim
According to Medicaid: A Primer, Kaiser Family Foundation, (2010), under the new law, starting in 2014, most individuals will be required to obtain health coverage. Access to affordable health coverage will be improved. Medicaid eligibility for people under age 65 will be based solely on income. Categorical restrictions will be abolished and coverage will be extended to millions more low-income people. Enrollment will be simplified, and improvements will be made to access of care. 16 million more people are expected to gain Medicaid or CHIP coverage by 2019 due to the expansion of Medicaid eligibility and increased participation. The Congressional Budget Office estimates that the federal government will finance about 96% of the coverage increases associated with health care reform between 2010 and 2019 ($434 billion), and states will contribute 4% ($20 billion). With the passage of the Deficit Reduction Act of 2005 (DRA), Medicaid spending is expected to decline. The DRA gives states n
