http://www.lvrj.com/news/breaking_news/Gibbons-orders-study-of-possible-Medicaid-pullout-81619457.htmlCARSON CITY — Gov. Jim Gibbons has asked staff members to explore whether the state can drop out of the Medicaid program that provides free health care to more than 233,000 Nevadans.
A Gibbons spokesman said today that because of the bad economy, the state can no longer cover most Medicaid recipients, even though the federal government provides most of the funding. He said things will only get worse if Congress approves the health care bill.
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A conservative Las Vegas-based think tank the idea could save the state money and suggested that the state’s poor probably would be better off without Medicaid.
But legislative leaders said Gibbons’ idea would not receive their approval, which might be required. And a nonpartisan policy research group that watchdogs Congress said dumping Medicaid would leave many Nevadans without health care.
Assembly Speaker Barbara Buckley, D-Las Vegas, questioned whether the governor’s talk about ending Medicaid was serious or an attempt to improve his re-election chances.
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Senate Minority Leader Bill Raggio, R-Reno, doubts pulling Nevada out of Medicaid is “workable.” Raggio said he has been told that Gibbons is only doing an analysis to determine what cost savings would result if the state rejected federal Medicaid dollars.
If Nevada stopped taking the money, then Raggio said only about one-third of the current Medicaid recipients would continue to receive care.
A spokesman for U.S. Senate Majority Leader Harry Reid of Nevada, who guided the health care bill through the Senate,
said Gibbons does not understand the ramifications of pulling out of Medicaid.
“By dropping out of Medicaid, he would only increase the number of uninsured in Nevada, which increases the number of people going to the emergency room for treatment, which is then paid for by taxpayers,” Reid spokesman Jon Summers said.
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Geoffrey Lawrence, a fiscal policy analyst for the Nevada Policy Research Institute, the conservative think tank, said opting out of Medicaid would not result in thousands of Nevadans going without health care, or leaving unpaid bills at emergency rooms.
Under provisions of the Senate-approved bill, residents without health care could receive federal subsidies to allow them to purchase private health care policies, he said.
But Judith Solomon of the Center on Budget and Policy Priorities in Washington, D.C., said the subsidies still would be too expensive for most poor people to pay. Dropping Medicaid would lead to even more people going without health insurance, she predicted.
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Burns said Gibbons is talking with lawyers to determine whether he can pull Nevada out of Medicaid on his own, or would need approval of legislators during a special session.