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Healthcare Memorandum

This memorandum offers assessment of strategies proposed related to cost containment for Medicaid ideas to determine, which strategy is the most likely to pass and effective. To assess the viability of the strategies, climate of proposed strategies in the areas of Medicaid ideas are analyzed including political, economic, social. It further considers favoring and opposing ideas related to legislation.

Medicaid Cost Containment Issues Identified in the Proposal

Texas State governments in United States recognized the increasing cost of Medicaid programs and to deal with this cost, cost containment strategies have been proposed by governors of state in the budget for fiscal 2012. These strategies mainly include reducing provider reimbursements, and expansion of managed or coordinated care. Buy essay writing service now to surprise everyone by getting highest grades.

Strategies likely to Pass and be Effective

The strategies proposed for the cost containment in the Medicaid came into view covering all major areas that boost the cost of the Medicaid domain in health care. Amongst all, considerable strategies are the implementation of pharmacy cost control, reducing the provider reimbursement, and expansion of managed or coordinated care.

Pharmacy cost of the Medicaid in the state of Texas comprises the cost between $10.50 and $11 for a pharmacy (Fuquay, 2012). This cost of prescription is more than the cost of the prescription products. The proposal about reducing the cost of pharmacy will be effective and assist the state to control the cost of Medicaid. Your search for a reliable dissertation writing service ends here.

Texas State spends most of its health care funds on the Medicaid care, which is composed of one-third of its budget. Moreover, the estimated cost of Medicaid care is about $24.7 billion in 2011 (Barbee, 2011). On the other hand, the cost of provider reimbursements is taken into account as the second highest cost in the Medicaid care, which is due to high fees of therapist. The reduction in the provider reimbursement that will be around 35% will save the $150 million and will be 19% reduction from the therapist fees.

Increased attention on managing care by enhancing the considerable expansion on the managed care plans in Texas can also help in controlling the cost, as it is found that due to lack of proper management of care in the state increases the cost.  In addition, fifty million individuals in the state are the Medicaid recipients in private managed-care plans. Expansion in managed or coordinated care will reduce the patients’ freedom to choose where to go for care service (Galewitz, 2011). It is regarded that since these three applications have been highly costly in past years, therefore, there is possibility of passing, as cost containment in these areas will significantly affect the cost containment of the state. Order coursework writing help and say goodbye to all your worries. 

Opposition to the Strategies

Concerning the strategy regarding pharmacy cost control, there can be considerable opposition from pharmacists, who have been engaged in the Medicaid pharmaceutical prescription. Since this strategy determines the reduction in the prescription of generics and other wholesale drugs and medication, therefore, this strategy is likely to receive the resistance mainly from pharmacy wholesalers, who will be reluctant to sell the drugs and medicines in low prices. However, this strategy will be favored by those individuals from public, who cannot bear the high cost of medicines. Strategy assessed related to provider reimbursement is likely to face opposition from the therapist and physicians. Since the strategy primarily aims to reduce the cost by cutting the fees of therapist and physicians, therefore, therapists and physicians will be reluctant to support the strategy. On the other hand, patients who are unable to pay high fees of therapist and physicians will be favoring this strategy. Buy thesis writing from us at cheap rates.

Reasons of Dealing with at the State Level

Texas State government has been highly active and concerned about implementing these strategies; however, these strategies should have been proposed at federal level so as to increase the effectiveness of the proposed strategies. Federal Government in US.  Both state and federal government administer Medicaid care application in United States. Federal and state government, relying on the needs of the state, shares the cost required for the application. The reason of dealing with the issue of cost containment in the Medicaid is that federal government allocates specific amount range for each state to fulfill the health care requirements. In this regard, states are required to comply with Federal Medicaid law. Since state government has realized the high cost in the Medicaid of its own state, therefore, it prepared proposal considering the additional expenses on specific area.

Proposing Cost Containment Strategy

Considering the analysis of three different cost containment strategies, proposed by Texas State to control the cost in Medicaid area, it is proposed that more attention should be paid upon the strategies to reduce utilization. It is because focusing on the reduction in utilization will limit the prescription, on doctor’s visit and new co-payments. Therefore, if state focuses on utilization reduction, it will be able to control the maximum cost in Medicaid. When you order assignment online we assure to deliver perfectly written paper as per your needs.


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