Noteworthy News

Targeting Medicaid Resources During Economic Downturns

As urban safety-net hospitals understand more than most, when the economy goes south, Medicaid enrollment goes north.  Congress, too, understands this, as demonstrated by its inclusion of extra Medicaid funding for states in the American Recovery and Reinvestment Act of 2009 (ARRA).

But were those resources targeted appropriately?  Did they get to where they were needed most?

An analysis by the Kaiser Family Foundation concluded that while helpful, the additional federal money was not necessarily targeted to states where the problem was greatest.

Congress asked the Government Accountability Office (GAO) to find a better way, and in response, the GAO developing a methodology for targeting supplemental Medicaid funds during difficult economic times.  The GAO even applied its methodology retroactively to see how it would have responded to the economic downturn of recent years.

Read more about the Kaiser report and the GAO methodology and find links to those documents hereiStock_000015725011XSmall.

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