One of the most successful -- and virtually
unheralded -- provisions of the federal stimulus package is the increased
federal match rate for Medicaid funding. Thanks to the recovery act,
the feds now cover 61.88 percent of Illinois' Medicaid spending, up from the normal rate of 50.32 percent. That's allowed the state to provide
insurance to a growing number of poor residents without blasting even
larger holes in the state budget. But after 2010, the rate will return to the lower level. Sen. Jay Rockefeller (D-WV) is now proposing the Senate jobs bill include an extension of the enhanced rate. However, some of his colleagues argue that such a provision would not directly create jobs. That's short-sighted. Pushing the cost back onto
the states, with enrollment ballooning, could limit contracting and force more layoffs in state government. If lawmakers were to limit eligibility instead, it could also have a nasty ripple
effect, especially for health
providers that rely on Medicaid reimbursements for their livelihood.
Check out our post from last week for more on the issue.
