For more information on Louisiana’s budget and the Pelican Institute’s solutions to the state’s fiscal issues, view the full paper by clicking here.
Medicaid Reform
Over the last several years, Louisiana’s Medicaid program has grown by leaps and bounds, expanding the program to more than 400,000 able-bodied adults over the last two years and fundamentally hurting the individuals Medicaid was primarily designed to help. Reforming Medicaid should involve re-orienting the program’s focus on the vulnerable populations for which it was originally designed, while modernizing the delivery of care in ways that can lower costs and improve health outcomes for patients.
The Problems
- Medicaid enrollment in Louisiana has blown past initial projections
- Medicaid enrollment has exceeded projections in most states that embraced Obamacare
- Rising Medicaid spending over the past 30 years has crowded out other Louisiana priorities
- Obamacare encourages Louisiana to prioritize the able-bodied over the most vulnerable
- Most Obamacare expansion enrollees could work, or prepare for work
- Most Medicaid enrollees do not work full-time
The Solutions
- To reform the program, Louisiana lawmakers should unwind expansion by freezing eligibility. If implemented nationwide, could save states $56-64 billion within a decade, and save the federal government $581-668 billion.
- After winding down expansion, Louisiana should submit a comprehensive waiver to reform Medicaid that could:
- Add consumer-driven options
- Increase wellness incentives
- Increase access to home-based care for the chronically ill
- Crack down on fraudulent scam artists
- Prevent the use of taxpayer dollars to cover individuals who already have affordable health insurance