As states like Arkansas are searching for ways to cut rising Medicaid costs, a liberal-leaning think tanksays the nation could eventually save 40 percent in Medicaid costs by creating a new, universal public insurance for the elderly and disabled.
Senior Fellow Howard Gleckman of the Urban Institute said a universal payroll tax-based insurance would relieve Medicaid from covering such catastrophic costs.
"Six tenths of a percent increase in the payroll tax is just a few hundred dollars for someone at the median income, compared to what it would cost to buy private long-term care insurance, which can be a couple of thousand dollars a year," he said.
Governor Asa Hutchinson, who is opposed to raising taxes, is leading a push to reduce long-term Medicaid costs. The effort is in tandem with his Arkansas Works program, which would continue Medicaid expansion.
Gleckman said Arkansas is behind many states that have turned to home-based care, and while it may be a good option for patients, the saving benefits remain unclear.
