NM center on law and poverty
 

Op-ed by Kim Posich, Executive Director, NM Center on Law and Poverty
Appeared in The Albuquerque Journal
Saturday July 29, 2006

Abolish Automatic Closing of Medicaid Cases
By Kim Posich, N.M. Center on Law and Poverty Executive Director

I applaud Gov. Bill Richardson on each of the five points of his plan to expand health coverage. I applaud in particular, the expansion of both Medicaid and State Coverage Insurance. These parts of his plan can provide immediate relief to thousands of poor New Mexicans who cannot access health care. They can relieve much of the pressure of uncompensated care. And, the state dollars spent on the program will draw about three times as many federal Medicaid dollars into New Mexico.

There is however, a fundamental conflict between the Richardson's intentions and the actions of the state Human Services Department which administers Medicaid.

In the past two years, we have been witnessing what may be the single biggest disruption of health care to low-income people in the history of Medicaid in New Mexico. Massive numbers of low-income people— mostly children— are being terminated from Medicaid every month.

From May 2004 through July 2005, Human Services terminated more than 120,000 Medicaid cases. I cannot quote you the number of cases terminated since July of 2005 because the department stopped tracking that information. What I can tell you, based on Human Service records before the department went silent, is that approximately 75 percent of the cases were re-opened within six months because the children had been eligible for Medicaid all along.

Because of the break in coverage, vaccination schedules were disrupted, acute care appointments canceled, well-child check ups missed and children went without their medication. Additionally, once reinstated, many people were re-assigned to a new primary care physician, thereby breaking any continuum of care.

But it has been much worse than this for some— those who still remain off of Medicaid.

Medicaid participation in key categories fell by approximately 60,000 from May 2004 to May 2006. This decline— mostly involving children— occurred despite new outreach efforts by the Human Services Department.

To be sure, some of these lost families are simply no longer eligible for Medicaid and should have been terminated. Many though, are women and children who were terminated even though they remain eligible for coverage.

How could this be happening? In May 2004, Human Services implemented a "cost-containment measure" of programming computers to close Medicaid cases automatically every six months. When a family recertifies that it is eligible, a caseworker is supposed to go into the individual case file and instruct it not to close.

But, because caseworkers are overburdened— they carry caseloads two to three times those of caseworkers in many other states— they are not getting to the cases in time to prevent automatic closure by the computer. This and other problems related to closing cases without human review, has been causing the termination of more than 10,000 Medicaid cases— that's more than 20,000 New Mexicans— every month.

The department has been perennially understaffed and unable to get a budget approved that allows for the significantly higher number of caseworkers that it requires. Without enough funding and staff to handle one of its core responsibilities as well as it should, it has wrangled efficiencies out of administrative measures for years.

This procedure of closing Medicaid cases automatically is one more administrative measure that was expected to ease some of the pressure of onerous caseloads. But it has been a colossal mistake, and everyone except the Department's policy-makers seem to know this.

The Legislative Health and Human Services Committee, the Medicaid Coalition, the New Mexico Pediatric Society and many health care providers have called on the department to cease computerized purging of Medicaid rolls.

The governor's Health Care Summit made it one of the primary recommendations. The Center on Law and Poverty and the Sargent Shriver National Center on Poverty Law have filed a federal lawsuit to stop the practice. Yet the department stubbornly refuses to reverse itself and is not just disrupting the health care of tens of thousands of New Mexicans but is also threatening the success of the governor's new plan before it even begins.

Human Services should immediately cease the practice of automatically closing Medicaid cases. The Legislature and governor should approve adequate funding of the department, including funding for at least 60 caseworkers above what is currently approved.

The governor's plan to expand Medicaid and State Coverage Insurance stands a chance of meeting its enormous potential— if these changes become its sixth point.