Time to launch a
fix for Medicaid
By MARK
SANFORD Guest
columnist
In Missouri, 90,000 people are about to be cut from Medicaid
after state senators there first threatened to end the program
altogether in 2008. In Maryland, the governor recently began denying
Medicaid benefits to legal immigrants. Tennessee’s Democratic
governor proposed eliminating 323,000 people from that program —
before settling for a 190,000-person cut.
It’s happening because Medicaid is consuming an ever-increasing
piece of state budgets. In 2000, $1 out of every $7 that South
Carolina spent went toward Medicaid. This year, it was $1 out of
every $5 spent. A decade from now, nearly $1 out of every $3 we
spend is projected to go to Medicaid. How do we continue to provide
health care for some of our state’s neediest citizens given these
costs? Do we simply cut health services, or people, from Medicaid
rolls, like other states have done? Or do we make cuts to other
critical state services like education and law enforcement?
Given those two options, I’ve committed our administration to a
third path — stop administering Medicaid as one-size-fits all
program. Given the remarkably different health care needs of
individuals, we believe it makes sense to give individuals a choice
in their health care plans. Doing this would ensure better health
care outcomes, and at the same time the competition between plans
has proven in other settings to help rein in growing costs.
First, we believe tailoring Medicaid benefits to the patient
enhances the quality of care. Governing magazine ranks South
Carolina 4th in state and local health and hospital spending per
person, yet we rank 47th in health care outcomes. This is due in
part to Medicaid recipients not having medical homes. An emergency
room should never function as the family doctor, yet too often in
South Carolina it does. Medicaid clients visit the emergency room 66
percent more often than other South Carolinians.
This, in turn, means that Medicaid patients aren’t getting the
preventive care they need, and episodic care nearly guarantees
poor-quality care. For instance, South Carolina has one of the
highest rates in the nation for diabetes prevalence. The Department
of Health and Human Services recently compiled data that showed more
could be done to improve basic diagnostic work to prevent this, if
responsibility for the patient’s care was more firmly rooted in one
medical provider. Too often in our Medicaid system everyone is
responsible for patient care — which means no one is truly
responsible.
Second, we believe that we can not only achieve better results
with our plan but rein in costs, because both have proven true in
other states where Medicaid recipients have been empowered with
choices. In 1998, Arkansas started a program to give
consumer-directed benefits to Medicaid disability patients. Five
years later, an audit showed clients were more satisfied with their
caregivers, there was a decrease in unmet needs, and caregiver
neglect dropped by 38 percent. Colorado started a pilot program to
allow disabled Medicaid clients to hire and fire their own
caregivers. Quality of care and patient satisfaction are up, and
costs have decreased. Colorado plans to expand its plan to 33,000
Medicaid recipients statewide in 2006.
Our plan would provide a range of options for Medicaid
recipients: managed care, medical home networks, subscription to
their employer’s health care plan and even a self-directed account.
Many of these options are already offered in private-sector plans.
All are built on options that could help with the coordination issue
crucial to bettering health care in our state.
Some critics of our proposal have said we ought to wait on
sending a request to Washington to modify our current plan, which
would quickly move us into year two in debating this important
matter. I think we need to move now; here’s why:
First, the budget-writing year will soon be here, while the need
to ensure quality care for 850,000 South Carolinians on Medicaid is
already upon us. Second, Robbie Kerr, our director at Health and
Human Services, and his staff have had literally hundreds of
conversations in looking at ways to try to better this proposal.
Third, it has been an interactive process and will continue to
be.
As a result of these meetings and input from the advisory board,
the part that I had liked the most when we began the conversation on
Medicaid reform — health savings accounts — has been whittled down
to a pilot program. In other words, we have tried hard to listen and
will continue to do so as we look for ways to better this important
program.
It is time to take the first step though, because this system
like all too many programs in government could be made better with
thoughtful changes that give individuals more control in determining
how best to handle the most individual of all needs — one’s
health.
Gov. Sanford’s official Web site is http://www.scgovernor.com/. |