Medicaid - Cuts Would Hurt Older People and People With Disabilities

MEDICAID CUTS WOULD HURT OLDER PEOPLE AND PEOPLE WITH DISABILITIES

The cuts in Medicaid proposed in the House-passed budget resolution will cause frail older people and younger people with disabilities to lose access to Medicaid-covered long-term care services and prescription drug coverage.

Older people and people with disabilities represent 27% of Medicaid enrollees and use over 70% of Medicaid dollars. Most elderly Medicaid beneficiaries and about a third of non-elderly beneficiaries with disabilities are eligible for Medicare. They need Medicaid for costly prescription drugs and for long-term care services, in nursing homes and in the community.

The high cost of nursing home care is a major cause of poverty for older people. Nursing home care costs an average of $50,000 per year. Millions of people use up their life savings paying for nursing home care before becoming eligible for Medicaid. Medicaid pays for 48% of all health care spending for nursing home care; it pays a portion of the cost for more than 60% of all nursing home residents.

People with disabilities of all ages use more services than other users of health care. They are more likely than other users of health care to have chronic medical conditions. They use more physician visits, have higher rates of hospitalization, have greater use of prescription drugs, and have an increased need for therapies, personal care services, and durable medical equipment. Medicaid pays for these services.

Older people and people with disabilities use on average between 23 and 28 medications per year. Medicaid coverage is critical for these populations: 80% of Medicaid’s spending on prescription drugs is for these two populations.

States need fiscal relief for their Medicaid programs not further cuts at the federal level. The proposed Medicaid cuts come at a time of great fiscal distress among the states. Forty-nine states have implemented cut-backs in their programs during FY 2003, including reduced provider payments, prescription drug cost controls, reductions in benefits or in eligibility levels and increased co-payments. Further cuts at the federal level will increase the harm to beneficiaries.