Last Wednesday, President George W. Bush approved a Medicaid plan for Florida that will shift from the traditional “defined benefit” plan to a “defined contribution” plan, allowing the state to set a ceiling on spending for each recipient. From the New York Times (free registration required):
Joan C. Alker, a senior researcher at the Health Policy Institute of Georgetown University, said: “Florida’s proposal is one of the most far-reaching and radical proposals we’ve seen to restructure Medicaid. The federal government and the states now decide which benefits people get. Under the Florida plan, many of those decisions will be made by private health plans, out of public view.”
Vernon K. Smith, a former Medicaid director in Michigan who is now a consultant to many states, said: “Florida’s program is groundbreaking. Every other state will be watching Florida’s experience. South Carolina has developed a similar proposal. Georgia and Kentucky are waiting in the wings.”
Will states like Texas, New Mexico, Oklahoma, and Nevada follow suit? What are the implications for long term care providers if states are allowed to shift Medicaid plans from “defined benefit” to “defined contribution?” Garlo Ward is committed to analyzing legal issues affecting long term care providers, so stay tuned for updates.