Action Update - Issue 75 :: July 25, 2006
Christie Raniszewski Herrera
The Heartland Institute
Medicaid's skyrocketing expenditures are reaching a breaking point in state budgets, experts say, and state legislatures are responding with sweeping new reform bills that fundamentally change the way states finance and deliver the federally mandated program.
"Medicaid spending consumes, on average, roughly 25 percent of states' budgets. This figure continues to grow, and will grow unabated unless states reform their Medicaid programs," said Michael Keegan, director of the Tax and Fiscal Policy Task Force at the American Legislative Exchange Council, the nation's largest nonpartisan membership association of state legislators.
"Because this rate of growth cannot be sustained, the question is no longer whether states will implement structural reforms, but rather when and how they will do so," Keegan added.
'Perverse Incentives' Cited
Some legislators say Medicaid's budget woes stem from "perverse incentives" that encourage state governments, doctors, and patients to overspend and overutilize medical care
"The dollar-for-dollar federal match on Medicaid wrongly encourages states to milk the Medicaid system, and low reimbursement rates mean that doctors might have the incentive to add unnecessary medical tests just to stay profitable," said Indiana state Rep. David Frizzell (R-Indianapolis), who is working with his state's Medicaid officials to develop a "cash and counseling" waiver for certain Medicaid beneficiaries.
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Related Research:
Medicaid: Yesterday, Today, & Tomorrow
A Short History of Medicaid Policy and Its Impact on Texas
by Mary Katherine Stout, Texas Public Policy Foundation
This comprehensive report puts growth in spending and caseload in context with policy changes at the federal and state levels over the life of the Medicaid program.
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Texas Taxpayers Have A Crisis On Their Hands.
It's Time For A Texas Tea Party!
Peggy Venable, Americans for Prosperity
Many of you have written to Americans For Prosperity about the ways in which property taxes have affected your lives. We found your stories to be quite compelling. We have posted your stories online and notified state legislators that our members feel that the Texas property tax system is in crisis. We have also written a letter to the Governor asking him to appoint a Property Tax Review Commission to review the appraisal process and make recommendations to the legislature on ways to end appraisal creep, provide an equitable system of taxation, address deficiencies in the property tax appraisal system, and overhaul appraisal caps.
But... a letter is just the first step!
On August 16 thru the 18, the Texas Association of Counties (TAC) is hosting an annual conference in Austin. TAC's conference agenda is to teach its members to oppose appraisal caps, revenue caps, and taxpayer friendly legislation. We are hosting a taxpayer rally outside of the conference hotel on August 16th at 11:30 a.m. Taxpayers need to establish a large presence and make their voices heard with TAC, the media, and our legislators.
Far too often, our legislators only hear from those with a vested interest in receiving taxpayer money. Legislators are claiming that only a few people are unhappy about their taxes. We need to let them know otherwise.
Spread the word.
Therefore, we are urging each and every one of you to spread the word to your members, friends, acquaintances, and family. Encourage them to rally for an end to out-of-control government spending. Until taxpayers say "Enough!" the American Dream remains in enormous jeopardy.
√ SAVE THE DATE: AUGUST 16, 2006
TEXAS SIZED TAX REVOLT
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INFORMATION:
Janelle Shepard, Executive Director
Texans for Texas, Inc., 815-A Brazos St #384, Austin, TX 78701-9996.
© 2004 Texans For Texas, Inc. All Rights Reserved
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