By Joe Touschner

The New York Times’ “Room for Debate” feature recently addressed a topic near and dear to those of us concerned with the health of low-income children and families:  the future of Medicaid.  Six participants from across the ideological spectrum weighed in on how the nation should address the challenges faced by this vital state-federal partnership.  For me, the key takeaways were outlined by the Center on Budget and Policy Priorities’ Judy Solomon and the University of Chicago’s Harold Pollack:

• Medicaid’s spending challenges are driven by the same factors that are increasing the cost of health care generally.  As Judy observes, the average cost per beneficiary in Medicaid has increased at a similar rate to the cost of private insurance and is, in fact, a bit lower once you adjust for health status.
• Medicaid supports the rest of the health care system.  By covering those with low incomes, people with disabilities, and seniors who need long-term care, Medicaid takes on many of the most costly services and allows private coverage to be affordable to those of us with employer-sponsored coverage.
• As Harold writes, capping or limiting federal funding for Medicaid is a particularly bad deal for states–it shifts more financial risk to them.   It is precisely when the need for Medicaid rises during recessions that states have the least ability to meet those needs.  The federal government can better manage the counter-cyclical spending that provides health security to Americans and helps put people back to work during recessions. 

Check out the full discussion on the Times website.