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Small Business Employee Benefits and HR Blog

States Try to Cut Medicaid

Note: This should not be taken as tax or legal advice

states cut medicaidMany states are facing large budget problems due to the poor economic climate.  As a result, many states are pointing to Medicaid cuts as a logical way to balance the budget.

For example, the Washington Post reported that Arizona Governor Jan Brewer has signed a bill that would allow her to request a waiver from complying with new federal Medicaid regulations required by the health reform bill. The new federal Medicaid regulations require that states maintain their current levels of coverage until 2014.

According to the article:

"The waiver Brewer is seeking would effectively push out all 250,000 childless adults on Medicaid. An additional 30,000 parents whose incomes are above 50 percent of the poverty line would also lose their coverage... Brewer's staff projects that the move would save $541 million in 2012, then $900 million the following year."

What do you think? Should the federal government approve a waiver like this?
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