Thursday, July 15, 2010

Swimming In Red

I can’t wait for the government to control even more of our health care.

In spite of a recent round of cost cutting, the potential shortfall in the state’s health-care programs for the poor, elderly and disabled has grown to as much as $850 million in state and federal money, threatening to throw the entire state budget out of balance.

State Health Services Secretary Karen Timberlake told lawmakers of the expanding deficit as they approved a sweeping audit Wednesday of the state’s Family Care program. Republicans have questioned the financial sustainability of that program, which provides long-term care to the elderly and those with physical and developmental disabilities.

Timberlake last year was directed to find $600 million in savings for Medicaid, which provides health care to the poor, elderly and disabled and which includes the Family Care program. But Timberlake said Wednesday that the recession has opened up a new shortfall on top of those cuts because of diminished revenue and a flood of newly unemployed workers seeking health coverage.

Depending on how the new shortfall is handled, it could amount to about $300 million, or a fraction of the total potential deficit, for the state to resolve.

Sen. Rob Cowles (R-Green Bay) said Medicaid programs had “incredible cost overruns” that have to be dealt with by finding efficiencies and possibly tougher measures.

“One option is to cut various rates (paid to providers), cut benefits,” he said. “Is that painful? Yes.”

(3) Comments
Posted by Owen at 0648 hrs
Politics + Politics - Wisconsin

  1. The path to sustainability:

    1.  Cut rates.
    2.  Suddenly, unexpectedly, there will be no providers at those rates.
    3.  No providers means no accounts payable.
    4.  Taxes remain in place, resulting in revenue coming in still.

    Step 5: PROFIT!

    Posted by Brian J. on July 15, 2010 at 0817 hrs


  2. “Time to raise everyones taxes!  We have a responsibility to
    society so pay your taxes and shut up citizen.”

    This message brought to you by the warm, caring government.

    Posted by Jay4Liberty on July 15, 2010 at 0851 hrs


  3. This, of course, is a megatrend with the aging of our (and the first world’s) population. We need to think a bit out of the sphere to find better and cheaper ways to care for our elders.

    Posted by Charlie Hillman on July 15, 2010 at 1411 hrs


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