Preserving Medicaid (Download as a PDF)

The Issue

Title XIX of the Social Security Act of 1965 created Medicaid, a joint federal-state program that serves as the primary source of coverage for acute health care and long-term care for the poor, elderly and disabled. Within broad national guidelines set by the federal government, Louisiana establishes its own Medicaid eligibility criteria; determines the type, amount, duration and scope of services provided under the program; and sets the rate of payments for services to providers. 

Medicaid currently serves more than 987,000 Louisiana residents, reflecting the large number living in poverty. Of these, 62 percent are children, families and pregnant women, and 38 percent are 65 years and over or disabled.
The Medicaid program is jointly funded from federal outlays and state general fund expenditures. Medicaid also devotes payments to Disproportionate Share Hospitals (DSH).
The Louisiana Legislature recently passed a budget for fiscal year 2007 that includes a one-time appropriation of $120 million in Medicaid financing for private and community hospitals to care for uninsured patients who have sought emergency treatment since the New Orleans charity hospital system was ravaged by Hurricane Katrina.

The CHRISTUS Health position: Supporting the continuation of full funding of a strong Medicaid program for the poor and underserved
The Medicaid program provides essential health benefits to millions of low-income children and adults who would otherwise not be able to afford health coverage. 

CHRISTUS Health supports the continuation of full funding of Medicaid and strongly opposes either federal or state budget cuts that would restrict vital funds used to serve the sick and needy citizens in Louisiana.

In 2006, CHRISTUS successfully worked with health care organizations and members of the state legislature to pass a $26 billion budget for 2007 –  the largest in the history of the state. Much of this budget increase is a direct result of federal funds coming into the state through matching programs such as Medicaid and hurricane relief, and represent non-recurring funds.

Contained within the budget are significant funds for health care services for Medicaid and uninsured patients, including:

• Uncompensated care for community hospitals:    $120 million
• Uncompensated care for high Medicaid hospitals:          $7 million
• Uncompensated care for rural hospitals                            $15 million
• Medicaid rate increase for hospitals                                  $38 million
• Medicaid rate increase for physicians                               $18 million

CHRISTUS Health will continue to work with health care organizations, members of Congress and the Louisiana Legislature to:

• Support efforts in broadening eligibility requirements to qualify more people for Medicaid.
• Extend Medicaid federal matching funds to avoid any cuts in the program. 
• Raise the reimbursement rates for providers including; hospitals, home care agencies and long-term care facilities.

April 2007