Here are a few facts to consider about Medicaid in Maryland:
- It is the largest single item of the state budget, eclipsing even elementary and secondary education.
- Between ten and fifteen percent of Marylanders receive Medicaid services.
- The spending rate for Medicaid continues to grow. As an entitlement program, anyone who qualifies for the program must be served by the state. This means that spending on the program will only continue to grow.
Why should Marylanders be concerned with these facts? In a few years, Medicaid in Maryland will be facing a crisis. There will be too many people using too many services that are too expensive. Spending on the program will crowd out other priorities make it difficult for the General Assembly to fund things such as education?
This will happen unless our state’s policymakers do something to address the problem now. Replacing the current system (or trying a large-scale demonstration project) with Medicaid vouchers may hold the answer.
A voucher would benefit Marylanders by:
- Reducing overall state Medicaid spending by giving Medicaid recipients an incentive to use the most cost-effective services possible and only use services they truly need.
- Improving the program for Medicaid recipients by giving them more control over their Medicaid dollars.
- Increasing the number of doctors serving Medicaid recipients by doing away with government-imposed rates for service.
Other states are experimenting with innovative programs that are aimed at finding ways to reduce the expense of Medicaid while maintaining necessary services for Medicaid recipients. Maryland must join their ranks before our Medicaid system faces the crisis point.