New federal Medicaid rule allows state to charge premiums, higher co-pays

Under a new federal rule, states now have greater authority to charge Medicaid beneficiaries premiums and increase co-payments for doctor’s services, hospital care and prescription drugs (Source: “New Medicaid Rules Allow States to Set Premiums and Higher Co-Payments,” New York Times, Nov. 27, 2008).

While the move could save states and the federal government considerable amounts of money, some worry that the higher out-of-pocket charges to the poor who receive Medicaid benefits could lead to delaying or forgoing care. The rule also allows states to deny care or coverage if beneficiaries do not pay their premiums or co-payments.

 “It’s a tremendous break with the past in terms of what low-income people are expected to pay for their health care,” said Sara Rosenbaum, a professor of health law and policy at George Washington University.

Although another round of spending cuts is imminent in Ohio after news that the state is facing a projected $4.7 billion shortfall in the next two-year budget that begins July 1 (Source: “Ohio facing huge cuts in spending,” Toledo Blade, Dec. 2, 2008), Gov. Ted Strickland has repeatedly said he would not consider cuts to Medicaid benefits.