By skyforbes 
Connecticut’s Answer to the Health Care Crisis — the Medicaid Option
Thanks to the unceasing efforts of activists nationwide and the principled opposition of Democrats, Donald Trump and his allies failed to strip health care from millions of Americans — for now. But, the future of health care in our State remains very much at risk. The Affordable Care Act is in need of improvement. But, rather than fix it, Donald Trump has said that he will do everything in his power to undermine the Obamacare exchanges. This is wrong — but nothing that we shouldn’t expect from this President. And it’s already having an impact.
Insurers are telling reporters that they may discontinue plans in an environment that is this uncertain and open to the Administration’s sabotage. Already we hear that the two insurers offering coverage through the Connecticut exchanges won’t commit to continuing that coverage next year. Understandably, they worry that Trump could so destabilize the market that they cannot guarantee affordable coverage.
This is a major problem, but we have it within our power to defend our own by making health care affordable and accessible right here at home.
Back when Obamacare was first being debated, many Democrats supported including a “public option” in the state-run exchanges. The idea was simple — an insurance plan offered by the government would ensure competition and help keep down prices. Unfortunately, that proposal didn’t make it into the final bill. But Connecticut can and should revive it now.
Medicaid provides the optimal vehicle for a state-run public option. Unlike Medicare, Medicaid is already administered by the states, providing an existing infrastructure to a state public option. And Medicaid already allows for significant experimentation and variations among the states. There is no chance a federal government run by Republicans will re-open a public option on the national level, but there is ample reason to believe we can do so as a state.
A Medicaid Option is both a major and feasible step toward our goal of ensuring that everyone has health care.
Simply put, Connecticut would vote to open up HUSKY Health to individuals and small businesses who wish to purchase coverage (similar to how we purchase private coverage on the exchange). They could use the tax credits provided by Obamacare or their own funds if they are not eligible for credits. State actuaries would set premiums and co-pays for those buying into the program — the new enrollees would pay their own way (as they do with private insurance) without requiring any new state revenue.
If this is successful, we could look at further opening up HUSKY Health to non-profits, employer health care groups — even municipalities and larger businesses — to provide even greater enrollment and buying power for the program.
One lesson we’ve learned from the last seven months of the health care debate is how effective Medicaid has been. Medicaid has a record of getting lower costs for participants — even lower than Medicare. While the costs vary by states, Medicaid on average pays providers 66 percent of what Medicare pays. Medicaid, like Medicare, also uses its size to negotiate lower prices from hospitals and drug manufacturers. A study by the Urban Institute found that Medicaid significantly outperforms private insurers. That report states, “Medicaid provides access to health care services comparable to that of ESI [employer-sponsored insurance] but at significantly lower costs” and “adult Medicaid beneficiaries’ health care costs would be over 25 percent higher if they had ESI coverage instead.”
Allowing small businesses and the self-employed to buy into Medicaid is an economic growth strategy. Right now, small businesses can have a very hard time finding affordable coverage for their employees. Under the Medicaid Option, business owners can invest their health care savings back in their business, and they will be able to retain employees who otherwise might leave for a job that can give them health care.
Likewise, adding Medicaid to our state exchange would ensure consumers always have an affordable health care choice. It would encourage competition and market efficiencies with existing private programs. If successful, it could provide a model for how we can implement truly universal health care on the state level. And it would be a safety net against the clear attempts by the Trump Administration to undermine Obamacare.
Connecticut can lead the way in providing truly affordable, universal health coverage for all our residents. In the face of a federal assault on health care, we can boost our economy and protect our people by embracing the success of Medicaid and extending it to our residents and businesses.