By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – While Washington grapples with the problems of Medicare, separately Texas is spiraling into a Medicaid crisis that should never be. I'm Maxine Shapiro with KERA Marketplace Midday.
This week's Dallas Business Journal reports Blue Cross Blue Shield is pulling out of the Medicaid program on August 31st. That will leave 23,000 members in Tarrant County without healthcare benefits. Triple that statewide. My gut said this is very wrong, but I couldn't pinpoint the implications. I called Manie Campbell of the Campbell Wilson consulting firm. They help doctors and hospitals understand Medicare and Medicaid issues.
First, Campbell set me straight on the difference between Medicare and Medicaid. Medicare is the national program primarily offering healthcare to the elderly, those over 65 and the permanently disabled. Medicaid is the state program for low-income adults and children.
So why is Blue Cross and maybe others leaving the Texas Medicaid Program? Money. When Austin refused to enact any new taxes, Medicaid dollars were cut to help the deficit. Fewer people are also being covered. But the HMO's have the same overhead cost - it's fixed. So with fewer dollars coming from the state and less volume to spread around, expenses go up.
Campbell went on to explain the far-reaching ramifications of cuts in Medicaid. Hospitals like Parkland, Baylor and Presbyterian will get less money. Layoffs will start occurring. Ex-Medicaid recipients will still be getting sick and they must be taken care of. Somewhere down the line, local taxes will have to increase to help the hospitals.
It will take three dollars locally to make up for every one dollar that Austin cut. See, for every dollar spent on Medicaid by the state, the feds matched it with two dollars. They do not match it at the local level.
And you want an appalling statistic? Texas used to rank 48th in the country in Medicaid benefits. We now rank 50th, below Mississippi. As Campbell disgustingly pointed out, this state should not be that poor. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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