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Why Medicaid Matters So Much for Young Adults

Medicaid has historically been a lifeline for the very poor with children, for the disabled, and for the elderly.  The 50 million already served should be reason enough to protect Medicaid from disastrous cuts currently being proposed in Congress.

However, people may not realize just how important Medicaid is for young adults both now and in the future. As the largest group of uninsured in the country, over 8 million young adults (18-34) could gain decent insurance from Medicaid just in the next few years- if we can stop the proposed cuts.

Many low-income families covered under Medicaid are headed by young parents. Those are the young people benefiting right now. Unfortunately, most states do not allow single young adults to enroll. Under current law, states must keep eligibility rules in place until health care reform kicks in with more coverage options in 2014.  But if leaders relax this requirement as they reduce funding, young adults across the country would lose their only viable health insurance option.

When the health care law does take full effect, it will replace the requirement that you have a child with a simple test based on income.  Under this new standard, over 8 million low-income young adults would finally be able to get decent health insurance.

However, changes made during the debt ceiling discussions could break that promise.  Proposals to provide a fixed amount of money to each state for Medicaid, or to reduce the amount the federal government pays for each participant, would seriously threaten states’ abilities to provide comprehensive coverage. Millions of newly eligible young adults would receive scant benefits.

Another proposal is to pay doctors less for services they provide.  But this would discourage doctors from accepting Medicaid patients. Without anyone to provide care, coverage is worthless.  Even though health care reform promises to pay doctors higher rates in 2014, lower payments now could prevent them from participating in the future.  Millions of young adults would join Medicaid only to find that no one would treat them.

Medicaid is actually a very efficient program.  And the people on it are generally cheap to enroll.  The underlying problem is the rising costs of healthcare, something that health care reform is already addressing.  Drastic cuts to Medicaid would simply treat the symptoms, without solving the underlying ailment.  In the process, this generation’s health would suffer even more.