The 2010 passage of the Affordable Care Act (Obamacare) was in reality, a huge expansion of Medicaid. This 1964 program was designed as a healthcare safety net for the poor. States split the costs 50/50 with the federal government.
A recent Seattle Times article reported 87 percent of individuals signing up for health insurance via Washington’s “exchange,” actually signed up for Medicaid. Only 13 percent bought private health insurance, confirming Rep. Cathy McMorris-Rogers’ report that 85 percent signed up for Medicaid.
In May, the Vancouver Clinic announced it would no longer accept new Medicaid patients. They are the largest provider of healthcare to Clark County Medicaid patients. “We’ve had an open door to Medicaid,” said Duane Lucas-Roberts, CEO. “That’s one reason our volume is so high. The problem is, that’s not sustainable. There won’t be a Vancouver Clinic.’’
Read that again: “there won’t be a Vancouver Clinic.”
The government doesn’t pay enough. The clinic’s reimbursement rate for Medicaid clients has been cut in half over the last three years, with the current reimbursement for an office visit covering about 40 percent of the cost of providing those services.
The Vancouver Clinic has 36,000 Medicaid patients, accounting for 25 percent of their business. They’ll cut that back to 10 percent over the next three years to survive. Sixty percent or 21,600 Clark County residents will lose their healthcare provider; just the opposite of what Obamacare promised.
A recent Washington Policy Center analysis revealed the following. “Washington state taxpayers will see an added cost of an additional $462 million per year because of the Medicaid expansion.” ($383 million plus $79 million in ACA costs.)
In 2012, Washington’s Medicaid program cost $7.5 billion. Washington state and the federal government each paid about 50 percent. Approximately 1.36 million Washingtonians were enrolled, resulting in an average cost of $5,550 per person, or $2,775 per person in state funds per year.
According to the Washington State Health Benefit Exchange website, 285,275 people had enrolled in the expanded Medicaid program as of April 23, 2014. That’s $791.6 million of added cost for our state at $2,775 per person.
Bottom line – $462 million is a burden our state can’t afford, especially when the Supreme Court had held the legislature in contempt for failure to spend another $3 billion on education.
Government run healthcare programs are failing the people they are supposed to serve. We can and must do better.
John Ley
Camas
