Medicaid Commission adopts reform plan

The panel's suggestions sparked criticism from leading congressional Democrats.

By Doug Trapp, AMNews staff. Dec. 11, 2006.

Washington -- States need more flexibility with Medicaid, beneficiaries should have electronic medical records and a medical home, and long-term care might best be delivered in the home. Those are some of the recommendations approved by the Medicaid Commission at its final meeting Nov. 16-17.

Health and Human Services Secretary Michael Leavitt created the panel 18 months ago to offer the agency advice on how to reform Medicaid. Its recommendations include:

• Emphasize health care quality with enhanced matching funds for Medicaid programs that use pay-for-performance at the physician and hospital levels.
• Create Medicaid Advantage, modeled on a similar Medicare managed care program, to integrate Medicaid and Medicare benefits.
• Provide tax incentives to buy long-term-care insurance and allow health savings accounts to be used to pay for long-term care expenses.
• Provide Medicaid beneficiaries electronic medical records by 2012.

The commission approved the final recommendations 11-1, with one abstention and two absences.

Key Democrats and an interest group have criticized the commission and its recommendations, even though its final report isn't due until Dec. 31.

"Certainly, this commission never recognized that the Medicaid program's first and foremost responsibility is to the beneficiaries," said Rep. John Dingell (D, Mich.), the incoming chair of the House committee dealing with Medicaid. "Our greatest concern should be that we ensure that health care is accessible to them."