May 14, 2008
Contact: Tony Wyche
314.361.4774

New MFH Study Examines Impact of 2005 Medicaid Cuts, Highlights Challenges Moving Forward

Only 8% of adult survey recipients that lost coverage were able to obtain insurance from their employer

Study "a wake up call" for policymakers; "While the impact of these cuts has been dramatic, the cost of inaction will be severe," says MFH President Kimmey

St. Louis - -A study released today by the Missouri Foundation for Health (MFH) details the impact of the cuts to the Medicaid program enacted in 2005 by the Missouri Legislature and signed into law by Governor Blunt, as well as the resulting challenges that face the state moving forward.

"This study highlights the substantial impact the Medicaid cuts have had on our state, but more importantly, it sounds the alarm about the challenges we face moving forward. This should serve as a wake up call to policymakers in the state that while the impact of these cuts has been dramatic, the cost of inaction will be severe," said Dr. James Kimmey, President and CEO of MFH.

Among the key findings of the study are that most of the increase in the number of Missouri's uninsured -- from 668,000 in 2005 to 772,000 in 2007 -- can be tied to the cuts in the Medicaid program. Furthermore, the study found that only 8 percent of adult survey participants who lost health insurance coverage were able to access employer sponsored insurance, meaning that 90 percent of those cut from Medicaid were either added to the ranks of the state's uninsured (62%) or regained eligibility/became newly eligible for public coverage through Medicaid or Medicare (28%).

"At the time the Medicaid cuts were being made, we heard that those losing their health insurance would be able to access coverage through their employers. But what we have seen is that the cost to employers to provide health care has increased to a point where they either have to place more of the cost onto the employees or they stop offering health insurance altogether," added Kimmey. "For many of those cut from Medicaid employer coverage is either unavailable or unaffordable. Unless our policymakers rise up to meet the challenge and take steps to increase the number of Missourians with health insurance, the combination of tens of thousands of low-income workers now among the ranks of the uninsured as a result of the Medicaid cuts and the inability of many businesses to afford health insurance for their employees is a perfect storm that will place major strains on our state budget, our health care system, and on businesses in our state."

Among the other key findings of the survey:

Adults
-15 percent of adult respondents lost their Medicaid coverage since 2005. An additional 32 percent reported that they had experienced changes in their Medicaid coverage.
-Changes to coverage cited by respondents included: loss of treatments or services, increased costs for medications, increased costs for doctor visits, and increased spend-down amounts.
-Of those who lost coverage, 62 percent reported being uninsured at the time of the survey. Furthermore, 53 percent who lost coverage reported that they needed medical care in the past year and had not received it.
-For those who reported a change in or loss of their Medicaid coverage, 53 percent reported a negative change in health status.

Children
-Most of the children (88%) experienced no change in their Medicaid coverage, while 3 percent reported that their children lost Medicaid and 9 percent reported changes in their children's coverage.
-Of those reporting a change in their children's Medicaid coverage, 20 percent indicated that their children had foregone needed medical care in the past year.
-Of respondents who reported changes in or loss of their children's Medicaid coverage, 37 percent reported a negative change in their children's health status.

To conduct the study, MFH partnered with the Health Care Foundation of Greater Kansas City and contracted with the Center for Health Policy at Washington University. The study was designed to capture data from people in their daily environment rather than in a health care setting, and therefore interviewed Medicaid recipients either in their homes or by telephone.

The research team completed surveys with 844 rental households in St. Louis City, Kansas City, Springfield, Kirksville, and Carthage. These households represent 844 adult respondents and 581 children for a total of 1,425 residents.

For more information or to download a copy of the study, visit www.mffh.org. NOTE: Members of the media wishing to receive a .pdf version of the fact sheet for this study can e-mail MFH Health Policy communications consultant Tony Wyche at tonywyche@soapbox-pr.com.

Established in 2000, MFH is the largest non-governmental funder of community health activities in Missouri. MFH is in its sixth year of grantmaking, having issued more than $280 million in grants and awards to date. It is dedicated to serving the uninsured, underinsured and underserved in 84 Missouri counties and the City of St. Louis. For more information about MFH, visit www.mffh.org.

The Health Care Foundation of Greater Kansas City (The Foundation or HCF) strives to improve access and quality of health for the medically indigent and underserved individuals and communities by providing financial support and leadership directed toward all aspects of health in Kansas City, Missouri and a six county service area (Missouri: Cass, Jackson, Lafayette Counties; Kansas: Allen, Johnson, Wyandotte Counties).

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