Page "Medicaid" Paragraph 5

On November 25, 2008, a new federal rule was passed that allows states to charge premiums and higher co-payments to Medicaid participants.

This rule will enable states to take in greater revenues, limiting financial losses associated with the program.

Estimates figure that states will save $ 1. 1 billion while the federal government will save nearly $ 1. 4 billion.

However, this means that the burden of financial responsibility will be placed on 13 million Medicaid recipients who will face a $ 1. 3 billion increase in co-payments over 5 years.

The major concern is that this rule will create a disincentive for low-income people to seek healthcare.

It is possible that this will force only the sickest participants to pay the increased premiums and it is unclear what long term effect this will have on the program.