nt rates by 11 percent (Nation in Brief, 2002, p.A28). Before the recent decision to withdraw from the program, the three chins provided 60 percent of the prescriptions to Massachusetts' 900,000 Medicaid recipients.
Eligibility for Medicaid coverage in Massachusetts depends, in part, on the income level of the individual or family. In order to determine whether or not an applicant's income level is eligible for Medicaid, the income level is compared with the Federal Poverty Levels shown in the following figure:
(MassHealth, 2003, 2).
Medicaid was conceived in the 1960s as a joint venture between state and federal governments, with the federal portion growing as the states expand their services and clientele. The program has had challenges, as more and more people apply for the program and states struggle to handle their budget deficits. Representative Benjamin Cardin of Maryland, a member of the Ways and Means Subcommittee on Health, said "Almost all states do badly. It is a matter of whether you do horribly, badly or bad. There are no winners here" (Goldstein, 1995, p.A8). Virginia was given more money in 1995, and Maryland and Washington, D.C. had to drop thousands of poor people from the Medicaid rolls.
In the fiscal year 2002, 45 states took action to limit their Medicaid spending. Eligibility was cut back for coverage of prescription drugs, as well as restrictions on eligibility for the Medicaid program in general (Wechsler, 2002, p.18). Officials in the various states do not see the program improving soon, and higher costs and lower rates of reimbursements have caused many providers to drop out. State tax revenues have decreased and will continue to do so. So far, Medicaid cost cutting has slowed program growth, but most states expect to provide supplemental funds in order to maintain their Medicaid programs.
State capitols are trying to ...