Why does Illinois spend a huge chunk of its annual budget on
Medicaid? It's not because of "waste, fraud, and abuse," as GOP
gubernatorial nominee Bill Brady proclaims. It's not because Illinois
offers free coverage to middle-class households, as the Tribune asserts. Illinois spends a lot on its public health program because demand is extremely high.
This is a point we can't stress enough. Between December 2007 and December 2009, enrollment increased in Illinois by almost 200,000 people. This spike tracks with national data; a new 50-state survey
from the Kaiser Family Foundation found that states experienced rapid
growth in their Medicaid enrollment last year because unemployment was
so high. (In an employer-based health care system, no job means no insurance.)
"For nearly all states," Kaiser writes, "the single most significant
factor in Medicaid spending growth is the growth in the number of
persons enrolled in the program."
That's not to say enrollment is the sole
cause of spending growth. State officials also report that health care
inflation and an increase in the utilization of services play a part.
On that front, Illinois is already implementing policies to "bend our
cost curve," in the parlance of our times. Its two public programs
that employ "managed care" principles, Illinois Health Connect and Your
Healthcare Plus, saved roughly $440 million
last year. Both plans, mind you, would be eviscerated if the GOP
mandates that all patients enroll in private managed care programs.