Kentucky Medicaid on an Unsustainable Path

Bluegrass Institute to release study on 'unsustainable path' of Kentucky Medicaid spending
Medicaid is on an unsustainable path towards fiscal disaster, putting Kentucky's most vulnerable citizens at risk.
Today, 2 out of 3 children on Medicaid are denied appointments with specialists, compared to only 1 in 10 privately-insured children. Without essential, sweeping reform, Medicaid will continue wasting Kentucky’s resources on a grossly over expanded enrollee base while failing in its fundamental mission of providing access to health care for the truly impoverished.
As long as the current system holds Kentucky hostage, the only decisions remaining for policy makers will be how they want to mortgage the state’s future to accommodate the crippling burden of Medicaid.
These findings are highlighted in a new report by the Bluegrass Institute, entitled “An Unsustainable Path: The Past and Future of Kentucky Medicaid Spending.” The report will be released at a policy briefing on Wednesday, June 29, at 12:30 p.m. in Room 248 of the University of Kentucky’s Carol Gatton Business and Economics Building in Lexington, KY.
Co-sponsored by the Bluegrass Institute and the BB&T Learning Laboratory on Capitalism, the policy briefing is free and open to the public.
“I think the evidence suggests it’s time to turn to more fundamental reforms instead of piecemeal fixes,” said the report’s author, John Garen, Ph.D., Gatton Endowed Professor of Economics at the University of Kentucky and a Bluegrass Institute adjunct scholar.
While total state and federal spending on Kentucky’s Medicaid program rose by a considerable 54 percent – from $3.3 billion to $5.1 billion – between 1999 and 2009, Garen projects future spending increases could rise more steeply.
Even without the federal Patient Protection and Affordable Care Act (PPACA), Kentucky could easily spend 70 percent more out of its General Fund by 2020, which could rise to 80 percent more with the mandated Medicaid expansion under PPACA.
“With a more market-based approach, we can better serve the truly needy while being careful with taxpayers’ dollars,” Garen said.




