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Lecture Issues in economics today - Chapter 21

When you finish this chapter, you should: Define the key terms of economics and opportunity cost and understand how a production possibilities frontier exemplifies the trade-offs that exist in life, distinguish between increasing and constant opportunity cost and understand why each might happen in the real world, analyze an argument by thinking economically, while recognizing and avoiding logical traps. | Lecture Issues in economics today - Chapter 21 Chapter 21 Medicaid McGraw Hill Irwin 2002 The McGraw Hill Companies Inc. All Rights Reserved. Chapter Outline THE WHAT S THE WHO S AND THE HOW MUCH S WHY MEDICAID COSTS SO MUCH MEDICAID AND THE ELDERLY McGraw Hill Irwin 2002 The McGraw Hill Companies Inc. All Rights Reserved. The What s Medicaid covers health care for the poor was established in 1964 was in full force in 1967 part of President Johnson s Great Society Programs paired with Medicare which covers health care for those over 65 is a state-administered program with federal matching funds. McGraw Hill Irwin 2002 The McGraw Hill Companies Inc. All Rights Reserved. The Who s Covers 1994 18 million children 18 million adults 60 are female 75 of adults are women 45 white 24 black 17 Hispanic 11 unknown Children are eligible if they are under 19 and in households with income less than 133 of the poverty rate. they are under 1 and in households with income less than 185 of the poverty rate Adults are eligible if they qualify for TANF Temporary Aid to Needy Families SSI Supplemental Security Income Not all poor are covered 50 of those who live in households with income below 150 of the poverty line are not covered. McGraw Hill Irwin 2002 The McGraw Hill Companies Inc. All Rights Reserved. The How Much s The federal government pays states a matching grant ranging from 50 to 70 that depends on the income of the state. The total federal government obligation is 120 billion The total state obligation is 60 billion McGraw Hill Irwin 2002 The McGraw Hill Companies Inc. All Rights Reserved. More Details States establish reimbursement rates for procedures rates must be high enough so that patients have adequate coverage. States may choose to exclude some procedures most states choose not to cover abortions. Doctors and hospitals may choose not to accept Medicaid patients If they accept any patients for any procedure they must accept all patients for all procedures. It is