Friday, August 31, 2012

Imminent Immorality: States Opting out of Medicaid Are Opting Out of Caring

by Nancy H. Brandt, a Board Member of Protestants for the Common Good.

There is no other way to say it.  If some 30 states opt out of the Medicaid expansion that was enacted as part of health care reform, as they currently threaten to do, that will be 30 immoral acts. Some governors have given as their reason that they can’t afford it, but the facts around the funding show they almost can’t afford not to participate. And so, one must ask why they would turn down a deal that the Congressional Budget Office estimates will be 93% paid for over the first nine years, a deal that hospitals everywhere favor as it will cover presently uncompensated costs.

The obvious and first conclusion is that ideology trumps everything else. They hate the new healthcare law and its mandate so much that it takes precedence over any other concern. But a deeper and more troubling conclusion is that perhaps half of us in America no longer care a jot about the poor, or the lingering and damaging effects of growing up poor and without healthcare. Is caring simply no longer important?

The Congressional Budget Office predicts that when it actually comes to acting, states opting out of the expansion will result in three million fewer people insured than planned.  This coverage gap will be composed of families below the poverty line, not reachable by the insurance exchanges that will be set up to cover people from 100% to 400% of the poverty line. This would be a bizarre outcome, indeed.

What are the likely outcomes for the uninsured poor?  Clearly it will make it more difficult to address racial disparities in healthcare: 22% of African-Americans, 32% of Hispanics are uninsured, compared with 14% of whites. Opponents of the law seize upon the administration’s behind-the-scenes efforts to explain the advantages of the law to black and Hispanic audiences as a negative, as proof that the health care law is race-based after all and not about the middle class. When did it become not only unimportant but wrong to address racial disparities?

There are real consequences to being poor and uninsured. Researchers from the Harvard School of Public Health conclude that states with more generous Medicaid coverage have lower mortality rates by at least 6%. Do we care how long poor people live? 

Research also points to healthcare improving school outcomes. A study by Teachers College at Columbia University found students with chronic illnesses at greater risk of absenteeism and poor school performance. No surprises there. A recent evaluation of the State Children’s Health Insurance Program found that school absenteeism rates dropped as children’s health insurance rates rose under the program. This is not rocket science.  But will policy makers make the connection?

A long-term answer, as suggested by both Timothy Noah of The New Republic and more conservative economist Robert Samuelson, is to federalize the entire Medicaid program, just like Medicare, if it is no longer feasible to maintain a federal-state partnership. 
But even that solution requires that a majority of the Congress and perhaps a majority of the electorate believe that our nation should care about all its citizens, and especially about the poor.  It comes down to what kind of a country we want to live in.