Medicaid Cuts Could Leave Tens of Thousands of Hoosiers Facing Life-Threatening Health Challenges

(October 3, 2011)—

New report will detail number of Hoosiers with cancer, heart disease, stroke, diabetes, and chronic lung disease who depend on Medicaid for treatment

Cuts to Medicaid, an option the new congressional “super committee” may consider, could pose a specific and dangerous threat to tens of thousands of Hoosiers who depend on the program for regular treatment of such medical conditions as cancer, diabetes, chronic lung disease, heart disease, and stroke. Without Medicaid, many of these seriously-ill Hoosiers would no longer be able to fill essential prescriptions, keep up with key screenings, or see a doctor if their condition worsens or reoccurs.

The importance of Medicaid to Hoosiers is detailed in a new report today released jointly by the American Cancer Society Cancer Action Network, the American Diabetes Association, the American Lung Association, and the health care consumer group Families USA.

Hundres of thousands of Hoosiers are covered by Medicaid. Of this number:

  • An estimated 11,900 Hoosiers on Medicaid have cancer, including 710 children, 7,580 adults and 3,610 seniors;
  • An estimated 43,480 Hoosiers on Medicaid received treatment for diabetes, including 3,660 children, 28,310 adults and 11,510 seniors;
  • An estimated 150,150 Hoosiers with chronic lung diseases such as asthma, chronic obstructive pulmonary disease (COPD) and cystic fibrosis, including 89,370 children, 51,970 adults, and 8,810 seniors, rely on Medicaid coverage;
  • An estimated 115,510 Hoosiers depend on Medicaid for treatment of heart disease or stroke, including 13,660 children, 74,110 adults and 27,740 seniors.

Although Indiana directly administers its own Medicaid program, every dollar the state spends for health coverage for low-income individuals is matched at least dollar-for-dollar by the federal government.

Particularly during difficult economic times, this federal match helps Indiana to provide health coverage for hundreds of thousands of its residents.

The treatment of chronic and life-threatening diseases can be extremely costly, and often people with these illnesses become eligible for Medicaid when they have exhausted all their financial resources paying for medical care. As an example, the average hospital charge nationally for a stay associated with a heart attack is nearly $63,000, and for people with no health insurance or with inadequate coverage, these costs can quickly drive them into poverty and qualification for Medicaid.

“Hard-working Americans with diseases such as cancer can get health coverage through Medicaid after having lost their health insurance because they are too ill to work or run through their savings,” said Christopher Hansen, President of the American Cancer Society Cancer Action Network. “This program is a safety net for American families, and losing access to the program could force them to stop treatment that could save their lives.”

“Diabetes has a disproportionate impact on the Medicaid population because Medicaid provides important health coverage to people facing elevated health risks.  Children and adults eligible for this valuable program are more likely to be in poor health and thus require the services Medicaid provides to a greater extent than individuals with private insurance,” said Gina Gavlak, RN, BSN, Vice Chair of the National Advocacy Committee, American Diabetes Association. “Cuts to Medicaid funding would be harmful to the millions of children, pregnant women, and adults with diabetes who rely on the program to manage their disease and avoid dangerous and costly diabetes complications such as blindness, amputations and kidney dialysis.”

“Medicaid is the lifeline for millions of children, adults and seniors who suffer from chronic lung disease such as asthma, chronic obstructive pulmonary disease (COPD), and cystic fibrosis,” said Paul Billings, Vice President of National Policy and Advocacy for the American Lung Association. “If denied this critical healthcare coverage, it will result in higher healthcare costs such as increased emergency room visits. We need to set politics aside and protect the health of our nation’s most vulnerable population, particularly our children who will be most impacted by cuts to Medicaid.” 
 
“Medicaid is a program that works and a program that provides urgently-needed care to tens of thousands of people in Indiana suffering from serious but controllable diseases. It helps Indiana children get a healthier start in life and school, it helps to maintain a healthy Indiana workforce, and it helps head off medical debt, a leading cause of bankruptcies and home foreclosures,” Ron Pollack, Executive Director of Families USA, said today. “It should be crystal clear that with rising health care costs hurting family pocketbooks and with the economic downturn driving more families to depend on Medicaid, that this is precisely the wrong time to cut Medicaid funding to Indiana and other states.”

Families USA contracted with The Lewin Group to develop the estimates in this report. The full report, “Medicaid’s Impact in Indiana: Helping People with Serious Health Care Needs,” is available at http://familiesusa2.org/assets/pdfs/medicaids-impact/Indiana.pdf