American Enterprise Institute

In this first important discussion of the serious flaws in the Medicaid program and how best to reform it, Grannemann and Pauly make a strong case for equity, efficiency, and accountability. They explain that controlling the flow of health care dollars is the key to reform and suggest that any new federal health care funds should be directed first toward the lower-income states where the largest numbers of uninsured persons live. The authors propose specific changes in the Medicaid program—from improving provider payment methods to changing the federal medical assistance percentage—to prevent a backlash from overburdened taxpayers that could sink reform efforts in states with many poor people. Responding to the authors’ proposals for reform will be Nina Owcharenko of the Heritage Foundation and Alan Weil of the National Academy for State Health Policy. AEI’s Robert B. Helms will moderate.

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