n this paper we argue that there is a real need for Medicaid
reform primarily because of the large differences among states
in coverage and benefits and because of the program’s
high and rising costs. We describe and develop several options
for Medicaid reform that would expand coverage, provide fiscal
relief to states, shift responsibility for some or all of the
care of dual eligibles to the federal government, and eliminate
or restructure disproportionate-share hospital (DSH) payments.
We conclude with a discussion on a number of other issues, particularly
Medicaid cost containment and the federal matching payment structure.
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