Texas Decision to Refuse to Expand Medicaid - Essay Example

Texas Decision to Refuse to Expand Medicaid Number Faculty Texas Decision to Refuse to Expand Medicaid Introduction Texas is facing a very critical moment of making a decision on whether or not to accept federal dollars to provide health insurance to many uninsured state residents through Medicaid, which is expanded under affordable care act. This decision will have serious implications for millions of Texans who stand to gain health coverage if the state participates in the Affordable Care Act’s Medicaid expansion. The decision on whether or not to accept the Medicaid will affect the entire state. With the expansion, new federal funds regarding billions of dollars will become available. These funds would stimulate Texas’s economy and support tens of thousands of jobs (Kovner, Knickman, Weisfeld & Jonas, n.d.). This report looks at the potential impact of a Medicaid expansion in jobs and economic activity in Texas Texas Decision to Refuse to Expand Medicaid Medicaid is said to raise premiums for those with private insurance. Raising the premium makes the people with private insurance be charged higher. Expanding Medicaid leads hospitals and doctors to shift costs onto patients with private insurance, this makes private insurance less affordable and contributes to the vicious cycle of increasing the number of people without insurance (Lewis, Blevins & Dana, n.d.). Texas decision of rejection has protected the private insurance and encouraged its growth. Therefore, private insurance in Texas are affordable, and the number of people with insurance is increasing. Rejection of the Medicaid has affected the country negatively in that the country spending in the country funded health care programs for the uninsured is increasing. Once the expenditure increases the government increases tax thus causing an increase in price on different commodities. The Medicaid program harms the people though it is intended to serve. Expanding Medicaid means that patients who are already enrolled in the program many of whom have nowhere else to go for coverage will be competing for medical services with up to 20 million more people being added to the program. Moreover, the most vulnerable patients who have the greatest needs are likely to have the hardest time getting care. Texas rejecting the expanded Medicaid has protected its people from this problem. The expanded Medicaid under the Affordable federal Act provides a strong health care system. Provision of quality health care increases the number of residents with health insurance reducing the uncompensated care cost. In addition, healthy resident is a sign of productivity in that state. Medicaid emphasis more on coverage and not to care provided to the patients.  A study conducted in Health Affairs found that in 2011; nearly one-third of physicians nationwide did not accept new Medicaid patients. This is large because the Medicaid program pays doctors and hospitals far less than private insurers. Texas rejecting the Medicaid has attracted many doctors in their hospital since the doctors are assured of the good return. On the other hand, Medicaid increases the country’s revenue. By increasing jobs and economic activity in the state, the Medicaid expansion can help boost state revenue. How it will boost state revenue and by how much will depend on each state’s specific tax structure (Patel & Rushefsky, n.d.). Texas is not benefiting from this due to its rejection decision. On making the decision to expand Medicaid under the Affordable care act, the country will benefit from employment. Assuming that the state takes up the Medicaid expansion in 2014, in 2016, Texas would receive an additional $4.5 billion in federal Medicaid funds. On assuming, that some of that money would be used to pay health care providers in neighboring states who treat Texans enrolled in Medicaid. Therefore, an estimated $4.2 billion would be spent on health care delivered in Texas. The addition of that amount in the health sector will directly influence job pattern and economic activity of the state. However, the point of job creation by the expansion of the Medicaid under the Affordable care Act is a point of concern because it appears to be exaggerated. The rejection decision of the expanded Medicaid under the Affordable federal act has influenced the Texas politics. Political aspirants and leaders have used this decision to search for favors. An example is Strivers, who suggested on developing a system where they will have health insurance. He argued that developing the plan would not expose them to 400 million US dollar though it is providing the health insurance. His opponents attacked Bevin, who did not sign the plan politically and his statement showing his stand on the implementation of the Medicaid was used. Earnest gives his opinion and affirms that owing to the affordable care act was used as an effective political strategy and not an effective governing strategy. Economist Douglas Holtz-Eakin, an adviser to the Republican nationally, said conversation do have options. On defending Bevin, he explained to them that Bevin has said he wants to do what Indiana and Montana have done by asking the federal government to change the expansion by charging recipients a small premium. However, he has also said he would impose stricter income requirements for Medicaid, which are currently based on federal poverty levels. Requiring modest premiums from those newly enrolled might find acceptance from a Democratic administration (Peele, n.d.). Nevertheless, dramatically restricting eligibility for the coverage expansion would likely be rejected. Conclusion The Medicaid expansion gives the authority of every state the opening to expand health Coverage for their residents while taking advantage of generous federal funding that will Support jobs and economic growth throughout the state. The gains of the augmentation will extend even further, from rebates in state spending on uncompensated care to advanced financial health for state hospitals. To take the good of those benefits; however, state leaders must choose to expand Medicaid. Failure to do that, it will still see some raised costs in its present Medicaid program, the majority of its residents will lose an opening to gain health insurance, and state residents and businesses will exclude positive economic effects that enhanced Medicaid funding would have on the states job market. Since the decision is highly influenced by the political leaders blame will be on them if the people fail to enjoy the benefit of expanded Medicaid under the act of affordable care act. References Kovner, A., Knickman, J., Weisfeld, V., & Jonas, S. Jonas & Kovners health care delivery in the United States. Lewis, J., Blevins, G., & Dana, R. Substance abuse counseling. Patel, K., & Rushefsky, M. Healthcare politics and policy in America. Peele, G. Developments in American Politics 7. Read More