State Health Policy Dominated by Medicaid and Prescription Drug Issues

     A recent report released by the National Conference of State Legislatures has stated that rising Medicaid, prescription drug costs and fiscal problems have been dominating the health care debate in 2002 by State legislators throughout the U.S.  According to Oklahoma Senator Angela Monson, President-Elect of the NCSL, "the deteriorating state fiscal conditions posed many challenges to meeting the health needs of our constituents."

     Soaring health insurance premiums in the small group market and the rising number of uninsured have led to increased Statehouse discussions throughout the United States trying to identify new policies that may make it easier for small employers to offer health insurance coverage to employees.  Some states have set aside the budget debates to focus on insurance costs.

     The policy report, "2002 Mid-Year Health Review," issued by NCSL, indicates that most states have taken measures to control Medicaid costs, such as, curtailing optional benefits, reducing reimbursement rates for health care providers, creating preferred drug lists, and requiring prior authorization and supplemental drug rebates.  Eleven states have curtailed optional reimbursement rates for services such as nursing facilities, pharmacists and hospitals.  Twelve states have created or amended preferred drug lists in their pharmaceutical programs and seventeen states have established prior authorization of certain drugs.

     Malpractice issues are gaining attention of legislators as the cost of medical malpractice insurance increases.  The insurance situation is causing great concern in the industry, with at least one company phasing out of the market. State legislators have considered legislation to limit attorney's fees, limit awards, shorten statue of limitations for filing claims and establishing supplemental and state insurance programs.