Medicaid Essay

1008 Words5 Pages
Medicaid is the U.S. government’s health insurance program, that furnishes health care coverage to more than 74.7 million eligible adults and children in the country ("Medicaid Enrollees," 2017), with over $553.4 billion reported total health care spending for the fiscal year of 2016 ("Medicaid Spending," 2016). As the number of eligible Medicaid enrollees grows, the amount of health care spending is presumed to accelerate. The 2016-2025 National Health Expenditure Projections showed a 5.6% per year increase in the United States’ national health expenses and a per capita growth of 4.7% per year. However, compared to 2015’s 9.7% Medicaid spending, the projected drop of 6.1% on 2016 is primarily due to the earlier year’s large influx of…show more content…
Furthermore, the Disproportionate Share Hospital (DSH) payments are required by the federal government for the state’s Medicaid program to issue an extra financial aid to hospitals that are serving an excessive number of Medicaid beneficiaries and low-income people without insurance. To cover the costs, eligible states will obtain a yearly DSH allowance from the federal reserve. However, since the implementation of the ACA, the law demanded a cumulative cut on federal DSH’s fund allocations that began in the federal fiscal year (FFY) 2014 up to FFY 2018 due to the presumptive growth of people with health care coverage, which resulted in lower unpaid care expenses. The DSH’s allotment interruption is scheduled to continue until the FFY 2025 (Snyder & Rudowitz, 2015). Moreover, the main supply of financing for the non-federal share of Medicaid is derived from approximately 40% of the state funding and about 60% from the local government ("Financing," 2012). Although jointly administered by federal and the state governments, states’ partnership in the Medicaid program is not mandatory. Nevertheless, all states have elected to offer Medicaid insurance to eligible people in their domain. Furthermore, the Secretary of Health and Human Services (HHS) should have an authorization of the state’s Medicaid program after the state fulfilled the conditions of Title XIX of the Social Security Act for a state to obtain the federal Medicaid matching

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