Thursday, December 17, 2009

Study: Medicaid Expansion, Lower Health Care Costs - WBOY-TV - WBOY.com

Study: Medicaid Expansion, Lower Health Care Costs - WBOY-TV - WBOY.com

Expanding Medicaid eligibility along with requiring individuals and businesses to carry health insurance could save West Virginians more than $2 billion a year in health care costs, according to a study released Dec. 7.

The actuarial study examined the potential costs and benefits of several proposed health care reforms using data donated by the state's largest health care providers. Several groups came together to fund the study, including the West Virginia Heath Care Authority and the West Virginia Chamber of Commerce.

The report's authors concluded that more government spending upfront would more than pay for itself through savings in the system. Health care providers in particular would see a substantial drop in amount of uncompensated charity care they provide, which is often blamed for driving up costs for all patients.

"It is an enormous benefit to our doctors and hospitals around the state because they are providing that care for nothing and now will get paid," said Perry Bryant, executive director of West Virginians for Affordable Health Care, one of the study's sponsors. ...

...

The firm was able to make its predictions thanks to three years of pharmaceutical and medical claims data voluntarily provided by the largest health care providers in the state, said Sonia Chambers, chairwoman of the authority. The data came from Mountain State Blue Cross Blue Shield, Medicaid, the Public Employees Insurance Agency, The Health Plan, Coventry and the state's Children's Health Insurance Program.

Currently, most adults do not qualify for Medicaid. Expanding the program to cover adults up to 100 percent the federal poverty level would cost the state $56.8 million and the federal government $162 million in 2014, but overall health care expenditures will decrease $611.5 million, according to CCRC.

More than 59,000 would become eligible for the program under the expansion, according to the report.

Adding mandates for individuals and for businesses with more than 10 employees dramatically increase cost for government, which would need to provide more than $1 billion in subsidies to help people pay for the mandates. However, overall health expenditures would decrease by $2.1 billion by 2014. Low-income residents would see the majority of savings, spending $2.2 billion less on health care. ...

No comments: