Falling Behind in NC, NC Budget and Tax Center

Falling behind: Rising need for Medicaid, but Less State Funding Since Great Recession

In the worst economic downturn since the 1930s, the Great Recession destroyed hundreds of thousands of North Carolina jobs, driving up unemployment and underemployment even as the national economy entered a formal recovery.  As workers lost their jobs and watched their incomes drop, many also lost their employer-provided health insurance or saw the cost of private health insurance move beyond their reach.  As a result, demand for Medicaid—the Federal-State partnership that provides medical care for low- and middle-income people—exploded, as the number of individuals with sufficiently low incomes to be eligible for the program grew by 27 percent from the first Fiscal Year of the Recession (FY2007-08) through the current Fiscal Year (FY 2012-13).  At the same time as the need for Medicaid exploded, the state decided to reduce the resources available to meet those needs, cutting the Medicaid budget by 6 percent over the same period and requiring patients, doctors, hospitals, and clinics to serve the health care needs of North Carolinians with significantly reduced financial support.

 

4 Comments


  1. Frank Burns

    June 8, 2012 at 6:47 pm

    We have never addressed one of the core issues for health care costs which is the defensive medicine being practised by the health profession to play defense against the ambulance chasers.

  2. gregflynn

    June 8, 2012 at 10:06 pm

    Actually that was addressed in the past year in HB542 and SB33

  3. Alex

    June 10, 2012 at 8:12 am

    I believe Frank is referring more to national tort reform which was never addressed in Obamacare.

  4. david esmay

    June 11, 2012 at 10:07 am

    Actually Frank, one of the main tenets of defensive medicine is not fear of litigation, but the deliberate increase in services to increase revenue. Gov. Rick Scott of Florida is an acknowledged expert in perpetrating medical fraud. Preventive medicine on the other hand, reduces the over all cost of medical care.

Check Also

A win for seniors and the home health workers who take care of them

Sometimes good news is buried in the fine ...

Top Stories from NCPW

  • News
  • Commentary

“I could choose to do anything else with $50.” But Anca Stefan, a high school English teacher in a D [...]

The Cape Fear River is damaged, contaminated by decades of human malfeasance, negligence and ignoran [...]

Legislative Services Officer Paul Coble appears to be violating the state public records law and is [...]

This morning, the state Supreme Court will hear oral arguments in the pivotal case of Silver, et al. [...]

These are extraordinary times in the American experiment with representative democracy. In Washingto [...]

Public education in North Carolina has its share of challenges, not the least of which has been the [...]

The post Time to come clean appeared first on NC Policy Watch. [...]

Tax Day in 2018 in North Carolina presents an opportunity to make sure our tax code allows us to mee [...]

Now hiring

NC Policy Watch is now hiring a Managing Editor – click here for more info.