The Effect of Imposing Caps on Federal Spending for Medicaid in Hospitals
By: Andrea Whitehead
January 2019
Lawmakers believe that structural changes to Medicaid can decrease federal spending on the program ("Options for Reducing the Deficit: 2017 To 2026", 2016). There are several approaches to decreasing spending and both have advantages and disadvantages. Initiatives such as doing away with eligibility categories, decreasing the scope of medical services, repealing healthcare expansion, and capping federal spending may have an influence various entities within healthcare.
Option for Reducing Deficit in a Hospital
When selecting an option to reduce deficit for healthcare organizations, capping federal spending may reduce deficits and improve overspending in federal funds. The advantages of capping federal spending are budgets and spending limits will be in place to make federal costs for Medicaid more predictable ("Options for Reducing the Deficit: 2017 To 2026", 2016). Another advantage is the ability to generate incentives from the state to help with Medicaid ("Options for Reducing the Deficit: 2017 To 2026", 2016). Disadvantages to capping federal spending are the unpredictability of future budgets because of the caps, optional services could be eliminated, and placing restrictions on eligibility enrollment.
How Capping Federal Spending Effects Hospitals
Hospitals are one of the largest organizations that utilize Medicaid. Imposing caps on federal spending could lead to the lack of access to coverage in hospitals and cause an increase in un-managed healthcare in patients and increase chronic illnesses due to the lack of the healthcare options. Specifically, a hospital with a large group of pediatric patients could be tremendously impacted by capping federal spending. Children represent the largest group covered by Medicaid and if federal spending is decreased this will limit the services that are funded by the state and reduce enrollment for other medically needy recipients ("The Impact of Medicaid Capped Funding On Children", 2017). Most of all services such as diagnostic treatment and prescriptions drug may become inaccessible to children who are in need. Capping spending may have its advantages but in the hospital sector of healthcare, capping spending will have lesser positive outcomes and more negative outcomes due to possible instabilities in coverage. As a result, unmet healthcare needs will be more significant when comparing to those who have continuous coverage ("The Impact of Medicaid Capped Funding On Children", 2017).
References
Options for Reducing the Deficit: 2017 to 2026(2016). Retrieved from
https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf
The Impact of Medicaid Capped Funding on Children(2017). Retrieved from
http://file:///C:/Users/Office%20Depot/Downloads/1495077086_Avalere_-_Childrens_Hospital_Association_Report_on_Medicaid_Capped_Funding.pdf
By: Andrea Whitehead
January 2019
Lawmakers believe that structural changes to Medicaid can decrease federal spending on the program ("Options for Reducing the Deficit: 2017 To 2026", 2016). There are several approaches to decreasing spending and both have advantages and disadvantages. Initiatives such as doing away with eligibility categories, decreasing the scope of medical services, repealing healthcare expansion, and capping federal spending may have an influence various entities within healthcare.
Option for Reducing Deficit in a Hospital
When selecting an option to reduce deficit for healthcare organizations, capping federal spending may reduce deficits and improve overspending in federal funds. The advantages of capping federal spending are budgets and spending limits will be in place to make federal costs for Medicaid more predictable ("Options for Reducing the Deficit: 2017 To 2026", 2016). Another advantage is the ability to generate incentives from the state to help with Medicaid ("Options for Reducing the Deficit: 2017 To 2026", 2016). Disadvantages to capping federal spending are the unpredictability of future budgets because of the caps, optional services could be eliminated, and placing restrictions on eligibility enrollment.
How Capping Federal Spending Effects Hospitals
Hospitals are one of the largest organizations that utilize Medicaid. Imposing caps on federal spending could lead to the lack of access to coverage in hospitals and cause an increase in un-managed healthcare in patients and increase chronic illnesses due to the lack of the healthcare options. Specifically, a hospital with a large group of pediatric patients could be tremendously impacted by capping federal spending. Children represent the largest group covered by Medicaid and if federal spending is decreased this will limit the services that are funded by the state and reduce enrollment for other medically needy recipients ("The Impact of Medicaid Capped Funding On Children", 2017). Most of all services such as diagnostic treatment and prescriptions drug may become inaccessible to children who are in need. Capping spending may have its advantages but in the hospital sector of healthcare, capping spending will have lesser positive outcomes and more negative outcomes due to possible instabilities in coverage. As a result, unmet healthcare needs will be more significant when comparing to those who have continuous coverage ("The Impact of Medicaid Capped Funding On Children", 2017).
References
Options for Reducing the Deficit: 2017 to 2026(2016). Retrieved from
https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf
The Impact of Medicaid Capped Funding on Children(2017). Retrieved from
http://file:///C:/Users/Office%20Depot/Downloads/1495077086_Avalere_-_Childrens_Hospital_Association_Report_on_Medicaid_Capped_Funding.pdf