Tweaking, Not Overhaul, is Urged for Nebraska Medicaid Program
Posted on: Friday, 16 December 2005, 18:00 CST
By Leslie Reed
LINCOLN -- Nebraska's Medicaid program can be made fiscally sustainable without major restructuring, advocates for the poor and disabled told a legislative committee Thursday.
The Legislature's Health and Human Services Committee asked for public response to a reform plan developed by Dick Nelson, finance support director for the Nebraska Health and Human Services System, and Jeff Santema, a legislative staff member.
The two were designated to develop the plan in conjunction with a governor-appointed advisory council.
Nelson and Santema concluded that Medicaid is growing faster than the state's ability to pay.
It grew from $57 million, or 6.9 percent, of general fund appropriations to $468 million, or 17.2 percent, over the past 20 years. It's projected to reach $2.4 billion a year by 2025.
The reform plan said Nebraska may eventually have to adopt a "defined contribution" approach for Medicaid.
That would mean the state would set aside a fixed amount of money for low-income elderly, children and disabled people whose health care is provided through the joint program of the state and federal government.
For now, the reform plan recommends a number of cost-containment strategies, including more co-payments, restrictions on brand-name drugs and aiding small employers in providing private insurance to their workers.
A coalition of advocacy groups submitted written testimony that cost-containment strategies should be enough to make Medicaid affordable to the state.
Source: Omaha World - Herald
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