Buckeye Institute Urges Policymakers to Address Rising Medicaid Costs
In his testimony, Lawson highlighted that Medicaid costs have increased 50 percent since 2010, and will "eclipse
Lawson outlined a number of policies in the budget that will reduce costs and improve the Medicaid program, including "provisions for robust healthcare pricing transparency, for reforming the pharmacy benefit management system, for serious emergency room diversions, and for reducing surprise billing."
Despite these improvements, Lawson noted that "even as House Bill 166 takes two steps forward, it also takes one step back by removing the maligned but misunderstood Healthy Ohio program." And he encouraged the
In outlining the benefits of Healthy Ohio, Lawson highlighted that under the program
- Children, the elderly, and the disabled would be exempt;
- Medicaid recipients would be given tools to set-up health savings accounts to cover out-of-pocket medical expenses;
- State and non-profit groups could contribute to these health savings accounts;
- Medicaid recipients would not lose essential medical care even if they chose not to contribute to a savings account; and
- Medicaid recipients could rollover their health savings account to pay private health insurance premiums and out-of-pocket healthcare costs when their income rises above the Medicaid limits.
As Lawson noted, these improvements to Healthy Ohio "would smooth the transition from Medicaid to private insurance" and "can improve the Medicaid program and the lives of thousands of Ohioans..."
See full text below or download a PDF (https://www.buckeyeinstitute.org/library/docLib/2019-05-28-The-Buckeye-Institute-Urges-Policymakers-to-Address-Rising-Medicaid-Costs-testimony.pdf)
Interested Party Testimony on House Bill 166
Before the
Chairman
My name is
As I testified before this Committee last week, House Bill 166 is not without its fiscal flaws, but there are several areas that the
In the 1990s, Governor
Current Medicaid expansion is unsustainable.
Medicaid's cost-curve must begin to slope downward.
The bill contains, for example, provisions for robust healthcare pricing transparency, for reforming the pharmacy benefit management system, for serious emergency room diversions, and for reducing surprise billing. The
Given the immense cost of long-term care, increasing the nursing facility reimbursement will always be a serious budget challenge. As the son of a mother who spent the end of her life in a nursing facility, I am personally sensitive to ensuring that nursing facilities have adequate resources to meet their obligations.
Regrettably, even as House Bill 166 takes two steps forward, it also takes one step back by removing the maligned but misunderstood Healthy Ohio program.
Modeled on the successful Healthy Indiana 2.0 program, Healthy Ohio would focus on the healthcare needs of healthy, able-bodied adults, and exempts children, elderly, and disabled Ohioans from participating. The program would give Medicaid recipients the tools to set up health savings accounts to pay for prescription drugs, medical devices, and some out-of-pocket expenses like copays. Not only would Medicaid recipients pay into the accounts, but the state and non-profit groups could contribute to them as well. The newest iteration of Healthy Ohio assuaged concerns that Medicaid recipients will be dis-enrolled and unable to receive the care they need, as even recipients that choose not to contribute to the account would not lose essential medical care through Medicaid.
The proposed version of Healthy Ohio struck by the House would have allowed program participants to rollover the money in their health savings account to pay private health insurance premiums and out-of-pocket healthcare costs when the participant's income rises above the Medicaid limits. This significant improvement would smooth the transition from Medicaid to private insurance and help people work their way out of poverty.
Policymakers must understand the importance of Medicaid recipients transitioning off of Medicaid. More important than even the obvious fiscal benefits for the state, are the long-term benefits gained by recipients themselves as they move out of the program. As our research at
Conclusion
As
Thank you again for the opportunity to testify today. I am happy to answer any questions that the Committee may have at this time.


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