Federal Health Care Spending Hearing Before the Committee On the Budget House

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Federal Health Care Spending Hearing Before the Committee On the Budget House
United States Congress House Committee On the B
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Dr. Reischauer. I think that is true, too.
Mr. KoLBE. On medicaid, do you think that allowing the States — medicaid is a curious system because, of course, as we know, it is a mix. State and Federal. There is some flexibility to the States to design their own programs. They have certain requirements and minimums. Do you think that if we gave more flexibility to the States, as we have talked about the laboratories of democracy to reform the medicaid system, that we might find more effective ways
... to utilize this program? If so, do you have any suggestions about incentives we might give to States that could discover ways to deliver that health care to the medicaid population in a more cost-effective way?
36 Dr. Reischauer. Remember that States right now pay 43 cents of every medicaid dollar, and while that is not paying the full dollar, it should provide them with some pretty strong incentives. This is also one of the largest and fastest growing elements in their budget.
Mr. KoLBE. Excuse me for interrupting, but we have significantly limited what they can or can't do in terms of what kind of services they provide that population, though, right?


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