Fix Medicaid and Control Costs

 

ISSUE

Medicaid spending is 13% of the state budget. Two-thirds of Medicaid spending is for older and disabled adults, primarily through long-term care services such as nursing homes. The remaining one-third is for low-income adults and children. Studies show that low-income patients with Medicaid have no better outcomes than those with no insurance.

 

SOLUTION

To lower cost without impacting patient health, and reduce risk to taxpayers:

  • For low-income patients covered by Medicaid, pay healthcare providers only for services provided that result in successful patient outcomes (i.e., treatments). For example, if a patient is given a treatment that doesn’t work, the provider doesn’t get paid.

SAVINGS

Use the savings to reduce the state sales tax burden, which falls disproportionately on low-income families.