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Expand financial support for low-cost healthcare providers

FILE PHOTO: Florida representatives greet each other on the house floor in 2015, in Tallahassee.
FILE PHOTO: Florida representatives greet each other on the house floor in 2015, in Tallahassee. AP

If the State of Florida, flush from a booming tourist season and concerned about the very probable demise of Obamacare, suddenly decided to offer Medicaid to all residents at 200 percent or less of the federal poverty level, how much would it cost? Well, since there are about 3.78 million residents who fit that description and are not on Medicaid, it would cost $2,208 for each adult and $1,704 for each child.

Assuming a 60/40 split between adults and children, this would work out to $7.59 billion annually. The costs for adults and children are taken from the most recent capitation rates paid to Medicaid Managed Care Providers by the State of Florida. The cost analysis further assumes that the disabled and long-term care recipients are already enrolled in Medicaid. Hence, the lower estimated annual cost when compared with the official cost of $5,878 per patient published by the Florida Agency for Health Care Administration.

Will this more favorable health demographic spur our legislators to action? Well, since Florida already spends $9.5 billion on Medicaid annually, which consumes 20 percent of the Florida-funded portion of the budget, it is unlikely our lawmakers would embrace such an aggressive expansion of health care spending.

Is there any hope for the residents falling off ACA? Yes, they are called “free and charitable clinics,” and there are 112 of them located throughout the state – including two in Manatee County called Turning Points and We Care Manatee. These estimable institutions receive volunteer support from doctors and dentists, drug distributors, laboratories, local hospitals and funds from county and state government as well as private donations. They are filling in the “health care gap” for those without access to care. Best of all, they are free! If you can prove that your income is 200 percent or less of the federal poverty level, then you are eligible for treatment, which includes general medicine as well as specialty care.

Note to Florida legislators: If you don’t want to spend $7.59 billion to expand Medicaid, then why not spend $50 million to support and expand these low-cost providers of care? Last year, Florida appropriated $10 million to support free clinics. For this year’s proposed budget, the figure has fallen below $10 million. Why? The “free and charitable clinics” are an economical and effective safety net for Florida residents and deserve more than token support. As a concerned community, we need to contact our local Florida delegation in Tallahassee and ask them to more vigorously support these worthy institutions.

Mike Meehan, CFA

Bradenton

This story was originally published May 31, 2017 at 2:28 PM with the headline "Expand financial support for low-cost healthcare providers."

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