FOR IMMEDIATE RELEASE
Contact: William Felkner
P.O. Box 2401
Providence, RI 02906
Tel: 401-228-6691
Study: RI Can Save Millions in Medicaid
● $67.5 million is being diverted, at public expense, from long-term care to pre-paid burial plans
● Rhode Island lost $13 million in un-recovered assets last year
● Generous asset and income exemptions allow even the affluent into Medicaid
PROVIDENCE, RI - Rhode Island could become a model for health care reform by saving millions in Medicaid costs and improving long-term care, according to a study released today by the Ocean State Policy Research Institute.
The study, titled "Doing LTC RIght," was jointly released by the Center for Long-Term Care in Seattle, Washington. It is available at www.oceanstatepolicy.org.
The report focuses on the opportunities associated with the global Medicaid waiver, which allows Rhode Island flexibility in operating the program in exchange for a five-year cap on federal matching funds.
"Because of its global Medicaid waiver, Rhode Island is uniquely positioned to pursue innovations in Medicaid," said William Felkner, President of the Ocean State Policy Research Institute. "Our state has the opportunity to develop a long-term care system that targets scarce resources to those most in need, by taking the wealthy off welfare and eliminating millions in unnecessary spending."
A recent Heritage Foundation report revealed that states could save a total of $1 trillion by withdrawing from the federal Medicaid program.
"Doing LTC RIght" pinpoints how states can maintain and even improve long-term care services with limited to no federal Medicaid funds.
The study shows that generous asset exemptions and exclusions allow average middle-class families and even the affluent into the Medicaid long-term care program.
For example, pre-paid burial plans are exempted with no limit, leading to $67.5 million in funds that are diverted from long-term care to burial costs - at the public expense. Moreover, only two applicants have ever been denied entrance to the program because of excess income during the last few decades.
Compounding the problem, the state has not been aggressive enough in recuperating costs through estate recovery. Last year, Rhode Island recovered only $2 million, leaving an estimated $13 million un-recovered.
"As our country weighs the most significant reform of our health care system in a generation, the importance of this research cannot be emphasized enough," Felkner said. "It is imperative that we find new ways to cut costs and enhance the quality of services to those who really need them. We believe that if our recommendations are followed, Rhode Island could lead the nation in Medicaid reform."
About OSPRI:
Created in 2007, our work is focused on crafting sound public policy based on the principles of free enterprise, limited government, and traditional American values. We offer timely research and analysis on important issues to be shared with elected officials, the media, business leaders, community organizations and individual citizens. In recent months, we have been responsible for such successful projects as the Transparency Train - A public financial and legislative information repository, as well as regular updates published and available on our website and companion blog.
About The Long-Term Care Center
The Center for Long-Term Care Reform is a private institute dedicated to ensuring quality long-term care for all Americans. More information is available at www.centerltc.com.
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About The Transparency Train:
The Transparency Train Web Portal (www.transparencytrain.org) provides access to a variety of websites designed to provide public information in a Google-style searchable format. These sites include:
RI Data which contains every budget, payroll, public employee contract and monthly check register for all cities, towns and school districts in Rhode Island.
RI Votes which is an online database of legislation and voting records.
RI Schools is an interactive website that allows viewers to create comparative graphs of school districts plotting various metrics such as cost per student, test scores and the number of employees (coming Spring 2009).
RI Donors will contain a "connect the dots" approach to viewing political and lobbying finances (coming Fall 2009).
Take Action, a "how-to" manual that shows citizens how to file Freedom Of Information Act requests for public information and what to do if they don't comply.
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If you'd like more information about this topic, or to schedule an interview, please call Matt Giardina at 401/228-6691 or e-mail info@oceanstatepolicy.org.
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