AMA calls for tax credits for Medicaid patients, uninsured

Monies received could be used to buy private insurance coverage.

By Joel B. Finkelstein, AMNews staff. July 7, 2003.

Chicago -- Medicaid's structure is unsustainable and should be replaced with a system of health care tax credits that would help both Medicaid patients and uninsured Americans, AMA delegates voted at last month's Annual Meeting.

In these trying financial times, states are pulling back funding from Medicaid, worsening prospects for both patients and doctors in the program. Federally funded, refundable and advanceable tax credits would ease the burden on the states by moving the bulk of the Medicaid and uninsured populations into private plans, according to the report from the Council on Medical Service adopted by AMA delegates.

Instead of providing government-mandated health insurance, Medicaid should be a funding mechanism that allows low-income Americans to "choose and own their coverage," the report states.

Several delegates attending the meeting spoke in support of the report. "This is a good first step toward broad health care reform," said Cardin Johnston, MD, a delegate from the American Academy of Pediatrics.

"Tax credits ... appear to be a road map out of this morass of the uninsured, the underinsured, the disabled and so forth," said Bohn Allen, MD, a delegate from Arlington, Texas.

However, some physicians said the report neglects possible potholes on that road.

While the "political tides" seem to favor tax credits, Dr. Johnston said he would be wary of any change that creates more administrative hurdles.