Republicans Try to Gut Medicaid as Studies Show Its Success
As the debate over health care reform heated up in the fall of 2009, Tennessee Republican Senator Lamar Alexander called Medicaid "a medical ghetto" that "none of us, or any of our families, would ever want to be a part of for our health care." As it turns out, Alexander and his GOP colleagues were as wrong as they were cynical. A breakthrough study by the National Bureau of Economic Research (NBER) reveals that Medicaid recipients have far greater access to doctors, live healthier lives and enjoy more financial stability than those who must go without. Nevertheless, 98% of Congressional Republicans voted to gut Medicaid spending by over $1 trillion in the next decade and with it, add up to 44 million people to the ranks of the uninsured.
Currently, the $300 billion Medicaid program serves roughly 60 million Americans. On average, the federal government picks up 57% of the tab, with poorer states like Mississippi and Alabama getting 75% of the funding from Washington. Medicaid not only pays for a third of nursing home care in the United States; it covers a third of all childbirths. (In Texas, the figure is one-half.) As with Medicare, Medicaid provides insurance for substantially less than private insurers (27% less for children, 20% for adults.) Still, the likes of Senator Alexander and Rep. Virginia Foxx (R-NC) suggested that it is better to be uninsured than on Medicaid.
Not according to the NBER. The same nonpartisan group that determines the official beginning and end of recessions, NBER found, as Harvard researcher and former member of President George W. Bush's Council of Economic Advisers Katherine Baicker put it, "Medicaid matters."
The NBER study avoided the pitfalls of past studies by examining the case of Oregon. After Oregon in 2008 established a lottery to add 10,000 people to it limited Medicaid rolls, the NBER team interview 6,000 of the lucky ones and 6,000 of the 90,000 who lost out. The results were striking:
We find that in this first year, the treatment group had substantively and statistically significantly higher health care utilization (including primary and preventive care as well as hospitalizations), lower out-of-pocket medical expenditures and medical debt (including fewer bills sent to collection), and better self-reported physical and mental health than the control group.
The New York Times provided some of the details of the Medicaid success story:
Those with Medicaid were 35 percent more likely to go to a clinic or see a doctor, 15 percent more likely to use prescription drugs and 30 percent more likely to be admitted to a hospital. Researchers were unable to detect a change in emergency room use.
Women with insurance were 60 percent more likely to have mammograms, and those with insurance were 20 percent more likely to have their cholesterol checked. They were 70 percent more likely to have a particular clinic or office for medical care and 55 percent more likely to have a doctor whom they usually saw.
The insured also felt better: the likelihood that they said their health was good or excellent increased by 25 percent, and they were 40 percent less likely to say that their health had worsened in the past year than those without insurance.
As Ezra Klein of the Washington Post summed up the findings, "knowing that Medicaid matters is good, but we already sort of knew that." But back in Washington, in response to that self-evident truth, Democrats and Republicans have drawn contradictory lessons and offered diametrically opposed plans for the future.
By extending Medicaid coverage to families earning up to 133% of the poverty level, starting in 2014 the Affordable Care Act passed by Democrats in Congress will bring insurance to millions more Americans. A March study by the Commonwealth Fund revealed that revealed that when fully implemented, the ACA will bring relief to "nearly all of the 52 million working-age adults who were without health insurance for a time in 2010."
Not if the Republicans get their way.


