" (Jacobs and Skocpol, 2007)
Brown and Sparer (2003) state that Medicare is "...administered by the federal government. Not only eligibility criteria and financing policy but also the benefit package, policies governing payments to providers, and decisions about the delivery system (for instance, fee-for-service vs. managed care) are determined in Washington, D.C., with no direct participation by the states. (the program delegates important decisions about coverage and payments to third-party insurers -- fiscal intermediaries and carriers -- and thus these national determinations do not preclude considerable regional variations that reflect local differences in wage costs and other factors)." (2003) Medicaid is state-managed "...although a framework of federal rules constrains state program administrators, they retain wide, and widening, discretion on all of the basic issues: eligibility, benefits, payments, and organization of care." (Brown and Sparer, 2003)
V. Eligibility, Physician Behavior and Low-Income Population Access to Care
The work of Baker and Royalty (1997) entitled: "Medicaid Policy, Physician Behavior, and Health Care for the Low-Income Population" states that concerns relating to the health of poor children and their mothers "produced major change in the Medicaid program beginning in the early 1980s. New legislation greatly expanded the number of children and pregnant women eligible for the program, and many sates increased the fees paid to providers for treating Medicaid patients, particularly for obstetric and pediatric services." (Baker and Royalty, 1997) Stated as a primary goal central to these expansions was the improvement of health outcomes in these populations which are vulnerable through increasing their access to health care services.
Baker and Royalty state that both "eligibility and fee changes to improve access to care depends on both patient and physician behavior. Success makes a requirement of patients who are eligible for Medicaid "take up the program and seek health care, but also that there are physicians who will care for them. Although eligibility expansions appear at least superficially to be an effective way to increasing access to care, they may fail if they do not influence physicians." (1997)
The Deficit Reduction Act of 1984 (DEFRA 1984) initiated as series of changes to federal Medicaid law that was to expand Medicaid eligibility significantly. It is reported that by April 1990 "a uniform threshold had been established requiring all states to cover all pregnant women with incomes up to 133% of the federal poverty line, and giving states the option of covering pregnant women up to 185% of the poverty line." (Baker and Royalty, 1997) Findings stated in the work of Baker and Royalty include the fact that "a clear pattern emerges." Holding fees constant, Baker and Royalty find that "expanding eligibility increased physician services to the poor overall of the physicians in...[the study]... sample, but that all of this effect occurred in public settings such as public clinics and hospital clinics." (Baker and Royalty, 1997)
Findings also note that "the effects of eligibility expansions on the percent of patients who are poor are generally smaller than the effects of eligibility on care for Medicaid patients." (Baker and Royalty, 1997) Findings also show that while access to care increased in public settings that there were not increases in eligibility to access to private physicians. This is important in that public setting care demand when increased will likely result in "demands on the sources that fund public health care." (Baker and Royalty, 1997)
Public settings are incidentally believed to be the least efficient sources of care for the Medicaid population and as well the quality of care provided in public settings is also an issue since it is argued that "continuity of care, which may be an important aspect of primary health care, is not delivered as well in public settings." (Baker and Royalty, 1997) the efficacy of using eligibility "...alone as an instrument to accomplish expanded health care for the poor" is greatly questioned. (Baker and Royalty, 1997)
The ability of the states to modify the coverage for entire groups of optional beneficiaries results in their ability to lower the income eligibility standard and ultimately bringing about a reduction in the number of individuals with income low enough to meet the financial criteria required to be eligible for receiving Medicaid benefits. However, states cannot cut optional services for specific groups other than the medically need because this would be in violation of the 'comparability' requirement.
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