A cost-benefit analysis: mandatory Medicare participation

A major concern about medical care has been the sharp rise in costs. Resistance by taxpayers to the increasing burden of Medicare and Medicaid, and pressures to restrain medical costs have encouraged new governmental controls in the health sector. This paper investigates the costs and benefits of a Georgia policy decision to require all skilled nursing facilities participating in Medicaid (which is state and federally funded) also to participate in Medicare (which is federally funded). The findings of this study are that the social costs of (a) reduced availability of skilled nursing home beds, and (b) increased health care expenditures, outweigh the benefits of state tax dollar savings.