Utah Waiver Is Comparable to Other Developing State Waiver Requests That Could Unlawfully Transform the Medicaid Program
On Saturday, February 9, Health and Human Services Secretary Tommy Thompson is expected to announce the Administration's approval of Utah's request to waive specific protections in federal law designed to provide health coverage for low-income Medicaid beneficiaries. The Utah waiver is part of an Administration initiative enabling states to re-structure the Medicaid program without legislative approval. The Utah waiver, like others under development, would result in cutbacks in health coverage and increased cost-sharing for current Medicaid beneficiaries but, according to the Administration, would enable states to increase health coverage for others who are currently uninsured.
Ron Pollack, executive director of Families USA, released the following statement about the new Utah waiver:
"The Utah waiver approved by the Bush Administration will do considerably more harm than good for low-income families that need help to get health coverage. This proposal is like robbing Peter and Paul to pay Phil.
"The cost savings in this proposal - through unaffordable new costs imposed on low-income families currently in Medicaid, and through reductions in health benefits covered by Medicaid - are considerably greater than the government's fiscal commitment to expand health coverage. It will result in many thousands of low-income people being placed at risk of losing their Medicaid lifeline.
"We believe that this action, which approves Medicaid cutbacks through administrative fiat, will not only be harmful, but is unlawful. It achieves Medicaid cutbacks through the backdoor of the waiver process that could not be achieved through the front door of congressionally approved legislative changes.
"Since the Utah waiver is a forerunner for other state waiver requests, low-income families across the country have reason to worry that Medicaid will soon become unaffordable and will provide diminishing coverage. We believe that the Administration would be better advised if it made a commitment to expand health coverage to the uninsured without cutting the existing Medicaid program."
