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Bruce Lesley

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Americans Don't Support Ryan's Vision to Slash and Ration Medicaid

Posted: 08/14/2012 6:15 pm

As Americans, we support Medicaid for a number of reasons. Half of us have a very personal reason to support it, having received coverage for our kids during tough times, received or had someone we care about get long-term care for a disability, or seen Medicaid provide nursing home support for our ailing parents or grandparents. And many of us understand that we or our loved ones will someday need that kind of care.

For others, it is an issue of morality. Most Americans don't believe you just put children with cancer, senior citizens in need of nursing home care, or people with disabilities at risk to not receive the health care they need to thrive and survive. They also don't believe people who've worked hard their whole lives and paid into the system shouldn't suddenly have to choose between food on the table and health care because some CEO outsourced their job or some Wall Street banker gambled it away.

As a result, by a wide 70-27 percent margin, Americans oppose making significant cuts to Medicaid health care coverage to millions of our nation's children, seniors, and people with disabilities. Unfortunately, that is exactly what has been proposed by House Budget Committee Chairman and current vice presidential candidate Paul Ryan.

In Chairman Ryan's FY 2012 budget proposal that passed the House of Representatives but was defeated in the United States Senate, he pushed to both block grant and slash $771 billion out of the current Medicaid program and cut another $627 billion out of Medicaid as part of his effort to repeal the Affordable Care Act for a total of $1.4 trillion in federal Medicaid cuts.

While some might be persuaded this is necessary to reduce the deficit, the fact is that the Ryan budget simultaneously proposed a $1.8 trillion reduction in revenue through additional tax cuts to corporations and the wealthiest Americans. Instead of targeting Medicaid cuts to deficit reduction, the Ryan budget applies these enormous Medicaid cuts to pay for tax breaks for the wealthy.

What is the effect of these cuts? According to a Congressional Budget Office (CBO) analysis of the Ryan budget, it is estimated that "federal spending for Medicaid would be 35 percent lower in 2022 and 49 percent lower in 2030 than currently projected federal spending" through the imposition of a block grant.

Incredibly, Chairman Ryan argued that cutting hundreds of billions of dollars out of Medicaid and giving states flexibility via a block grant would somehow lead to an improved program. According to the budget proposal's narrative, it is argued that Medicaid needs reform because the program currently provides "below-market reimbursement rates" to doctors that leave "beneficiaries with fewer provider choices and reduced access to care." However, Ryan's proposed solution to this underfunding is to cut an additional $771 billion in federal funding from Medicaid and also eliminate the added funding in the Affordable Care Act devoted to actually improving physician payments in Medicaid.

It is inconceivable and, quite frankly, irrational to think that states would be able to address any problems associated with low provider payment rates by cutting hundreds of billions of dollars in funding to states, including funding specifically dedicated to raising Medicaid physician payments to the same rate as Medicare. Clearly, the opposite would occur.

As Dr. Aaron E. Carroll has said, "... don't be fooled into thinking that if we somehow took less money and handed it over to states in the form of 'block grants' that they could somehow magically cover the same number of people and increase reimbursement to physicians."

In fact, just to maintain current services, CBO explains that this level of cuts would leave states with three rather awful choices to make up for the enormous 35 percent cut in Medicaid funding by 2022. They could either cut funding to other programs such as education and public safety, impose massive health care cuts, or raise taxes.

As CBO found, "... the magnitude of the reduction in spending relative to such spending in the other scenarios means that states would need to increase their spending on these programs, make considerable cutbacks in them, or both. Cutbacks might involve reduced eligibility for Medicaid and CHIP, coverage of fewer services, lower payments to providers, or increased cost-sharing by beneficiaries -- all of which would reduce access to care."

This, of course, has ramifications that would ripple throughout the health care system. As CBO said:

Given that payment rates for providers under Medicaid are already generally lower than they are under Medicare and private insurance, if states lowered payment rates even further, providers might be less willing to treat Medicaid enrollees. As a result, Medicaid enrollees could face more limited access to care. If states reduced benefits or eligibility levels, beneficiaries could face higher out-of-pocket costs, and providers could face more uncompensated care as beneficiaries lost coverage for certain benefits or lost coverage altogether.

In Ryan's own words, such an outcome results in cost-shifting to non-Medicaid patients and employers and would send shock waves throughout the health care system. As his own narrative reads, "The cost shifting that occurs from government rationing remains a significant contributor to health inflation, which in turn puts quality, affordable health coverage out-of-reach for an increased number of Americans."

Ironically, while complaining about government rationing of health coverage, his proposal would fuel that fire. After all, a Medicaid block grant accompanied by $771 billion in cuts is, by definition, an arbitrary rationing of funding and health coverage and would dramatically worsen the very problems he identifies.

All Americans -- rich and poor, young and old, white, brown, and black -- deserve the opportunity to live a happy, healthy life, and Medicaid catches people who would otherwise fall through the cracks of our health care system, whether they're children, seniors, or people with disabilities. Medicaid works, has a 86 percent satisfaction rate, improves health, and saves lives (see also here, here, here, and here) by providing people with coverage for the health services they need.

It is disturbing when politicians talk about Medicaid like it's some sort of handout, particularly when they have their own form of government-financed health coverage. Medicaid serves as an insurance program that is there because someday you may need it -- either for your child, your parents, or yourself. Americans have been paying those premiums for years, and now that millions are out of work or growing older, politicians want to change the terms of the contract, tear up their claims, and replace it with block grants in the case of Medicaid (or vouchers in the case of Medicare).

You don't cut funding to firefighters when brush fires are burning up millions of acres of land. You don't cut education when a near record number of children are living in poverty. And you don't cut health insurance programs that cover a third of America's children, the disabled, and millions of America's low-income seniors when the economy is in its worst shape in decades in order to pay for tax cuts to the wealthiest among us.

While it is certainly important to make sure Medicaid is financially sound, there is a better way to do it than to ration funding and health care coverage. The answer is to put Americans back to work, so more people are paying into the system again and fewer people are left without health coverage, and to let millionaires and big businesses pay their fair share of taxes.

The measure of a great nation isn't how well it treats those at the top but how it treats those whose fortunes are down. With record unemployment and a shrinking middle class, we should be catching people when they fall, not cutting holes in our safety net.

 

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As Americans, we support Medicaid for a number of reasons. Half of us have a very personal reason to support it, having received coverage for our kids during tough times, received or had someone we ca...
As Americans, we support Medicaid for a number of reasons. Half of us have a very personal reason to support it, having received coverage for our kids during tough times, received or had someone we ca...
 
 
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02:27 PM on 10/03/2012
Talk about death panels.

Ryan is High Priest.
09:52 AM on 08/15/2012
Wendy Gilson, you need to go back to school and learn how to spell, that is your first Big problem......You continue to support Obama, after all you just finished stating, tell me, what has he done for you so far? He has been in office for almost four years, and you are still crying and complaining? So tell me, what did he do for you? All I see and hear are bleeding hearts, 'oh I have so may problems,' ....I worked in a hospital, and everyone, with or without insurance were treated, Until you learn how to read and write, and get up off your butt, and go get a second job if necessary, and take some pride in what you can do, all the hand outs in the world will never change your sucking up to any one who gives you a pile of, well that word, you may know, you give it, often enough!
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02:34 PM on 10/03/2012
SHAME on you for going after Wendy Gilson.

The message is the important thing not the spelling.

And you do not know all the circumstances of this woman's life, but "disabled husband" is your first clue.

Get off your high horse.
09:46 AM on 08/15/2012
Wait till you see what happens to it when those 2 million illegals are given amnesty! Dump 2 million more onto the system, and it will probably go broke quicker than the projected 2016! But this is obama's signature bill$$$ To bad HIM AND OTHER DEMS didn't read it before they shoved it down our throats! Something needs to change soon, at least there are some dems, like Bill Clinton, that realize that fact!
09:22 AM on 08/15/2012
I do not support Obama's vision of a communist America.
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HUFFPOST SUPER USER
Michael E Hughes
09:12 AM on 08/15/2012
Well now, if the Medicare program is projected to go dry by 2025 without some form of action, what would all you progressive hate-spewers do about it? That is, besides calling the only person that has offered a path that MAY preserve the existing program every vile name that your handlers can provide for you? That is, without raising everyones tax rate to over a hundred percent of their incomes to pay for the existing "entitlements" that you have approved AND the future "entitlements" that you will undoubtably approve, what PRACTICAL solution do you offer for your unfunded largesses?
07:41 AM on 08/15/2012
I have never voted to put a repubican into office as president. What makes you think would do it now. No way ho say am, I in facvor of Ryan idea cut medicare and medicade. Let me tell you one thing, mabey need to send all my medical exspences to both canadates and, show them how much in debt been due living with disabled husbance since 39 yrs old. Then two heads are better then one, can figure out how going to pay my medical exspences. They do not understand how hard it is for average poor americans, and out of touch impossible for them relate to issuess. I will continue t sub port Obama as choice to get relected as president in 2012. thisway know will ha ve sevices need to help me servie until get back on my feet so to speak....
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AnalyzeThisToo
At the fork in the road...veer left!
01:20 AM on 08/15/2012
http://www.dailykos.com/story/2012/08/13/1119716/-Romney-Ryan-Ayn-Rand-and-the-Religious-Right-The-Unholy-Alliance

Part of an Article by Lonnie Griesbaum

“The 2012 Election has become a replay of the 2000 election, only with a new and more virulent cast of characters.

Funded by PACS that could not give a damn about Christian values, the Republican Party has veered toward the far right and become dominated by fake libertarians and conservative corporatists.

When Mitt Romney selected Paul Ryan as his running mate he signed on to this dark and fraudulent philosophy.

He has cast aside any hopes of capturing the moderate conservative vote in favor of opportunistic demonization of those who really lack any power... the poor, the elderly, the sick.

From now until the election we'll see nothing from them but veiled attacks on gays, women, immigrants, the unemployed, minorities of race and religion, and all done in a manner which appeals to a bastardized and distorted view of Christian values.”
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://www.foxnews.com/opinion/2012/08/14/republicans-should-be-careful-what-wish-for-with-paul-ryan-on-ticket/#ixzz23aSA0rj2
Here are the facts about Paul Ryan and the Romney-Ryan budget:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://www.nytimes.com/2012/08/15/us/politics/paul-ryan-meets-sheldon-adelson-in-las-vegas.html
Ryan Meets Casino Mogul and Major G.O.P. Donor
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
There is a word that truly characterizes Republican Politicians: Evil, Absolutely Evil!

Just Say’n
09:56 AM on 08/15/2012
You have been totally indoctrinated, in the woe is me, club....there is no help for you now. Analyze This Too
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AnalyzeThisToo
At the fork in the road...veer left!
01:53 PM on 08/17/2012
An upset mind is a non-thinking mind. Perhaps the truth could calm you down.

Right-wing media/websites love to brainwash people who never use critical thinking.

Republicans of Texas hope to have "Critical Thinking" removed from school curriculum; they don't want their children to be able to think on their own...in other words, brainwashing is the preferable method of teaching.

There was a time when knowledge was highly prized; I guess there will always be people who prefer to live in the "Dark Ages."

Just Say'n
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12:16 AM on 08/15/2012
Because to their surprise people remembered what your position was before you got the nod for presidential and vice pres.candidates! And oh yeah theirs this thing called video tape that keeps your lies from sticking,. The money the President took went to help seniors, not take money from them, he took the money from the insurers, the facilities! The Ryan plan takes from the seniors! The bull these two are trying to sell won't work!
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Michael E Hughes
09:29 AM on 08/15/2012
Let's see now... Your position is that taking over 700 billion dollars out of Medicare to fund Obamacare helps seniors. I question how defunding a program that was set up to help seniors in order to fund a progam that helps the poor is a step in a positive direction for seniors. If the money that is extracted from your paycheck for the purpose of funding Medicare is diverted to another purpose then the Medicare fund is to be thought of as the same as the Social Security fund. That is, as another source for pick-pocket politicians to dip into and use the money that WAS there for any silly thing they fancy, leaving nothing but IOUs where the money used to be. For "facilities" that complain that the payment that Medicare provides is already too small, I fail to see how depleting the funds available to pay them is a positive step. One would think that "insurers" are happy that the president is getting rid of Medicare. It kills the competition. Explain to me how Ryan's suggestion to keep Medicare viable is a plan from Satan, while Obama's stealing Medicare funds is a god-like step.
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Bruce Lesley
President of First Focus. Child advocate.
05:13 PM on 08/15/2012
In the Affordable Care Act (ACA), the reduction in Medicare were to massive overpayments to managed care plans. They were receiving 117% of what traditional Medicare was paying and therefore raking in huge profit margins and providing health club memberships at government expense -- neither of which taxpayers should be paying for. In addition, the ACA reinvested those dollars to close the prescription drug benefit doughnut hole, expand preventive coverage, and extended the life of the Medicare Trust Fund. It should be noted the Ryan Budget kept all the cuts but eliminated the improvements to Medicare and then takes the added step of turning Medicare into a voucher program in the long run. Interestingly, the last 48 hours, Romney has said that he would restore all the overpayments to Medicare HMOs. That reduces the life of the Medicare Trust Fund but doesn't really help Medicare beneficiaries, unless you think taxpayers should be paying for health club memberships.
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Njeanous
07:34 PM on 08/14/2012
To understand why State’s are against Medicaid is to understand why Republicans are always yelling for SMALL GOVERNment. The Government is the corporate competition. It espouses that there is “NO TAXATION WITHOUT REPRESENTATION.” If the government collects taxes from the poor, the minority, the disabled, women, renters, and men who own land then they must give a return on that duty to each and every citizen. To reduce government and privatize all services and goods is the goal of a vulture capitalist segment of the population. Lobbyist and elected representatives of the corporate oligarchy (Paul Ryan) will vote for Wall Street bailouts but Main Street must be stripped of options and forced to pay the price of gougers.
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Michael E Hughes
09:41 AM on 08/15/2012
Actually, the state and local governments have this thing that is written into their charters and constitutions, It's the concept of a BALANCED budget. You are not allowed to spend more than you take in even if the federal government passes laws commanding you to do so. The federal government has no such restriction. It can pass laws that require the expenditure of extreme multiples of the amount that they take in. No money to pay for boondoggle "X"? No problem! Borrow some money or print some more! Let the good times roll! And that is why, Dorothy, that cities are going bankrupt, and counties and states are not far behind. I'm sorry that you are incapable of understanding the concept of balancing a checkbook but take solace in the fact that the Secretary of the Treasury, Timothy Geithner, can't either (along with numerous of his progressive brethern)
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02:47 PM on 10/03/2012
Cities and counties are going bankrupt has more to do with their economic ties and losses (read: municipal bonds and pension investments) to the financial meltdown of Wall Street and reduced federal revenue for state/county/city programs do to tax cuts across the board.

And where do you get that Geither's a "progressive"? LOL
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Michael E Hughes
12:58 AM on 10/04/2012
gmb007: Cities and counties and states are going bankrupt because they foolishly tried to enhance their tax based income by investing the money in stocks and bonds in order to cover the unfunded "entitlements" that their public unions had blackmailed them into agreeing to finance. Too bad the stocks and bond market whent in the toilet, eh? They gambled on a return on their "investment", but instead they lost lots of money, along with everybody else EXCEPT the large banks and the stock market which were "stimulated" back into financial health after they caused the "recession".
As for Geithner, the proof that he was a progressive happened a few days after the current regime took over when he admitted that he had "forgotten" to pay his taxes! LMFAO!! (Except the joke isn't funny.........)