03/19/2005   English German

  Edition # 54  
San Francisco, 03-19-2005


Medicaid: Health care for the poor

Angelika Since I'm already at it: There is actually a health insurance program for the poorest of the poor in America. It's called "Medicaid" and was also introduced in 1965, originally for families receiving welfare and people with disabilities. It is funded with state and federal tax dollars. The states are subject to state guidelines, but have a lot of leeway in how they design Medicaid. Now it's not enough to be a poor slob to qualify for Medicaid, you have to belong to one of the following groups: children; pregnant women; parents with children still dependent on their care; people with disabilities; seniors. A 30-year-old single without children and no disabilities can be poor, but won't qualify, unless they live in a generous state that expanded the categories mentioned above. Otherwise they join the 45 million uninsured.

Medicaid covers, among other things, the costs of hospital stays, doctor visits, laboratory and X-ray examinations. For retirees, for example, Medicaid steps in to pay for the nursing home or to finance the premiums and co-payments for Medicare.

For a long time, problems have been looming on the horizon. First, states (as well as the federal government) are struggling with high budget deficits and are therefore cutting Medicaid benefits to save money. Second, Medicaid spending has skyrocketed because the very tight economic situation recently has made more people eligible for Medicaid benefits. Third, huge costs are incurred because Medicare does not, as discussed, pay for long-term nursing home stays and Medicaid often has to step in. And Bush just announced last Monday that he will make far-reaching cuts to Medicaid in order to plug his budget deficit. Hmmm, what was that again about tax cuts for the rich that will make the hole bigger and bigger?

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