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Stephen Zuckerman, Joshua McFeeters, Peter Cunningham, and Len Nichols, Trends: Changes In Medicaid Physician Fees, 1998-2003: Implications For Physician Participation, Health Affairs Web Exclusive, June 23, 2004 [Abstract] [PDF] [HTML Version] [Reprints & Permissions]

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A Novel Way to Increase Provider Participation in Medicaid

Edgar Feinberg II, M.D., M.P.A.   ( 28 June 2004 )

A Novel Way to Increase Provider Participation in Medicaid 28 June 2004
Edgar Feinberg II, M.D., M.P.A., Chief of Surgery Heart Hosp. of Lafayette Send comment to journal: Re: A Novel Way to Increase Provider Participation in Medicaid efeinberg{at}att.net Edgar Feinberg II, M.D., M.P.A.	In spite of the growth in Medicaid spending, it is no surprise that provider participation is not expanding significantly. As the authors point out, it is quite reasonable to assume there is little capacity in the system to expand the rate of participation using reimbursement as an incentive. However, there may be a novel opportunity in the current malpractice crisis to expand Medicaid participation. Federal legislation tying Medicaid funding to a "federal" cap on noneconomic damages could drive providers into the Medicaid program. The federal govenment has the constitutional authority to mandate that a state put in place a cap on medical malpractice awards by linking this requirement to Medicaid funding. Furthermore, the structure of such a mandate could be so as to require the cap to apply to participating providers only. This schema would likely lead providers to seek participation in order to benefit from a cap on noneconomic damages. Ultimately this arrangement would induce malpractice insurers to link premiums to participation in Medicaid. Thus, the current malpractice crisis may represent a novel opportunity to increase participation in the Medicaid program.