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.