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DC brain rot: Why ‘kicking 15 million people off Medicaid’ is a good thing


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THEHILL.COM

After three years, states are once again verifying Medicaid eligibility for their citizens. Although some media reports are framing this as a disaster for beneficiaries, it is an opportun…

 

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Redeterminations, if done properly, do not remove anyone who is eligible for Medicaid or CHIP from the rolls based on their income or other special needs. Beneficiaries are just being asked to confirm their eligibility with their state of residence.

 

Spoiler, it will not be done properly. Local Social Services offices can't properly handle routine eligibility determinations. Checking eligibility for the entire Medicaid population at once? Lol. 

 

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There are two reasons. First, unscrupulous providers can use identifying information from inactive Medicaid beneficiaries to make false claims.

 

Go after providers then. 

 

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Second, it is necessary to consider the impact on managed Medicaid programs. When Medicaid started in the 1960s, it was a purely fee-for-service system. Eligible patients would get care from a doctor or hospital, and that provider would then file a claim with the state Medicaid program.

 

But, to control costs, most states have included managed care options in their Medicaid programs. Today, more than 70 percent of Medicaid enrollees are in a managed care plan. Under Medicaid managed care, the state typically pays a for-profit or not-for-profit system a fixed rate per enrollee.

 

So, if an ineligible beneficiary is on Medicaid managed care, the state is paying his or her Medicaid provider a monthly fee to provide no care. Since many of these providers are for-profit companies, progressives who might normally oppose redeterminations should instead welcome them, because they reduce the amount of money hitting corporate bottom lines.

 

I'm pretty sure MCOs have to give the money back if it is unused. Even if it isn't, unwind reduces the pool of money for other Medicaid recipients who receive slotted/funding limited MCO services (liked Home and Community Based Services). But maybe, just maybe, Managed Care Medicaid was a stupid idea.

 

Medicaid unwind is going to be a disaster. 

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I mean it’s an opinion piece by a libertarian reason foundation guy so the content checks out and at least he made it through the article without a pitch that the age of consent should be whenever a child loses their first baby tooth

 

(but yes this is all evil shit)

  • True 1
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