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A cost-benefit analysis: mandatory Medicare participation
The Journal of Long Term Care Administration
|February 6, 1980
Summary
Requiring skilled nursing facilities to participate in both Medicare and Medicaid in Georgia resulted in higher healthcare costs and fewer beds, outweighing state tax savings.
Area of Science:
- Health Economics
- Public Policy
- Geriatric Care
Background:
- Rising healthcare costs are a significant concern.
- Taxpayer resistance to Medicare and Medicaid burdens drives cost-containment policies.
- Governmental controls in the health sector are increasing.
Purpose of the Study:
- To investigate the costs and benefits of a Georgia policy.
- To analyze the impact of requiring dual participation in Medicare and Medicaid for skilled nursing facilities.
Main Methods:
- Policy analysis of a specific state regulation.
- Evaluation of economic and social impacts on healthcare access and expenditure.
Main Results:
- The policy led to a reduced availability of skilled nursing home beds.
- Overall healthcare expenditures increased due to the policy.
- State tax dollar savings were realized but were outweighed by social costs.
Conclusions:
- The social costs associated with reduced nursing home bed availability and increased healthcare spending exceed the financial benefits of state tax savings.
- The policy's net effect is detrimental to healthcare access and economic efficiency.