Congress has endorsed Gov. Mark Sanford's Medicaid reform plan; the
Legislature should follow with any support needed for its enactment. The rising
cost of Medicaid demands a solution.
Gov. Sanford's proposal for limiting the rising cost of the system includes
personal accounts and higher co-payments. It is designed to increase consumer
choice and competition and will eliminate what the governor describes as a "one
size fits all" system.
The cost of Medicaid is shared by the state and federal governments, both of
which are financed by the taxpayer. It now stands at 19 percent of the state
budget and is expected to increase to 29 percent by 2015. A full quarter of the
state's population is served by Medicaid.
The governor had sought an administrative waiver for the proposal, but
congressional action in a recent budget bill makes that unnecessary. The
congressional provision should mean that the reform program can be undertaken by
the beginning of next year.
Medicaid is administered by the state Department of Health and Human
Services, a Cabinet agency. The Legislature, however, has budgetary control over
the program and presumably will have an opportunity to speak on the reform plan
as it considers the state budget.
"In a system where Medicaid patients visit the emergency room 66 percent more
often than other South Carolinians, coupled with a program that's on pace to
consume almost a third of the state's budget in coming years, it's clear real
reform is needed to make sure this program grows at a sustainable rate so that
people get the care they need," the governor said.
A reformed system that offers an opportunity to limit the level of Medicaid
increase while meeting health care goals deserves the chance to succeed.
Certainly, the state can't sustain the pace of growth and financial commitment
to keep the system afloat as it currently operates.