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Govenrment and Business Environment Case Study

Case Title:

Restructuring Dilemma of USA's Medicaid: Politics or Economics?

Publication Year : 2005

Authors: Sardhi Kumar Gonela & Sumit Kumar Chaudhuri

Industry: Health Care


Case Code: GBE0042

Teaching Note: Not Available

Structured Assignment: Not Available

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The US Federal government has proposed to reduce its share in Medicaid expenditure to cut its fiscal deficits and the States are reeling under huge health care budgets that are twice the expenditure on education. Meanwhile, as 40 million baby boomers age in the US, the focus of Medicaid's funding shifts from medical expenses on poor mothers and children for providing custodial care to the elderly and disabled. With Medicaid estimated to spend $444 billion a year by 2010, its survival is in question.

Pedagogical Objectives:

  • To discuss the various strategies adopted by the US federal government to cut the Medicaid expenditure.

Keywords : Fiscal Policy Case Study, Medicaid, Medicare, Public health care in the USA, Public health insurance programme in the USA, Crowding out effect, Supplemental security income, Aid to families with dependent children, Public expenditure, Ageing of baby boomers

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