Imposing Caps on Federal Spending for Medicaid

Imposing Caps on Federal Spending for Medicaid
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Imposing Caps on Federal Spending for Medicaid
Medicaid covers healthcare costs for low-income individuals, including people with disabilities and families with dependent children. The state and federal governments share the amounts for Medicaid's administration and financing. Nevertheless, increased Medicaid spending for the federal government raises the federal budget's amount. Consequently, lawmakers develop structural changes to reduce federal spending on Medicaid, such as imposing caps, decreasing the scope or number of covered services, decreasing the federal government's total Medicaid expenditures, or removing eligibility programs. However, the structural changes in the programs cause adverse impacts on healthcare organizations during care delivery. This word letter to the professional association's editor discusses the effects of the health option of imposing caps on federal expenditure for Medicaid programs to offer vital information and influence other healthcare facilities facing similar challenges.
Relevance of the Health Option
Lawmakers impose regulatory changes concerning Medicaid programs to reduce the federal government’s spending. The health option of setting caps involves reducing the amount the federal government gives the states to run the Medicaid program (Congress of the United States, 2016). Furthermore, capping limits the federal government's Medicaid contributions and sets a yearly growth rate for the limits, gradually decreasing the federal government's Medicaid expenditure in the long run. Imposing caps on the Medicaid program is relevant to the healthcare organization because it significantly affects beneficiaries and limits the federal government’s spending on healthcare services. Federal government's caps shift significant risks and costs to states and affect many vulnerable low-income individuals who benefit from and rely on the Medicaid program (Park, 2017). As a result, beneficiaries and states suffer harmful effects due to the increased costs, risks, and costs since the federal government only pays a fixed amount of healthcare charges per beneficiary, and the state pays for other amounts beyond the beneficiary cap.
Additionally, imposing caps or funds restriction on federal spending for Medicaid programs adversely affects healthcare organizations since facilities and patients no longer enjoy the benefits related to the plan. For instance, children and sick individuals would stop benefitting from home visitation services since Medicaid funds would not be available for innovative health-related programs (Solomon, 2017). Additionally, sick children could fail to receive enhanced primary healthcare services, hindering effective children's development. Solomon (2017) also highlighted that mothers would fail to access maternal services, such as screening for depression or connecting children and mothers to appropriate treatment, due to imposed capping on Medicaid spending.
Reasons for Writing the Letter
As the healthcare facility's chief operating officer, it is necessary to write this letter to the editor of the health workers' professional organization to reach other membe...